River Valley Bancorp (NASDAQ: RIVR), an Indiana corporation (the “Corporation”) and holding company for River Valley Financial Bank, based in Madison, Indiana announced today earnings for the first quarter ended March 31, 2012.
Net income for the quarter was $592,270 as compared to $801,961 reported for the quarter ended March 31, 2011. Earnings per share for the quarter ended March 31, 2012 were $0.33 per share. For the same period in 2011, earnings per share were $0.47. For the quarter ended March 31, 2012, return on average assets was 0.59% and the return on average equity was 7.11%, which compares to 0.83% and 10.01%, respectively, for the period ended March 31, 2011.
The quarterly results reflect higher costs of holding and disposing of real estate owned, higher operating expenses, including salaries and benefits, payments made on behalf of delinquent customers to third parties, and announced acquisition costs that are expensed as incurred. The Corporation recorded a net increase of $243,000 in losses associated with the sale and write-down of properties acquired through foreclosure. The Corporation also expensed $110,000 in payments associated with delinquent loan properties (property taxes, forced placed insurance, etc.). Salaries and benefit expenses were higher primarily with the addition of key lending and wealth management personnel. The totality of higher expenses was partially offset with modestly higher net interest margins and lower provision for federal income taxes.
Assets totaled $404.4 million as of March 31, 2012, an increase of $17.4 million from the balance reported on March 31, 2011 or a $2.2 million decrease from the balance reported as of December 31, 2011. Net loans, including loans held for sale, were $250.6 million as of March 31, 2012, a decrease of $10.0 million from $260.6 million as of March 31, 2011 and a decrease of $2.6 million from December 31, 2011. Deposits totaled $302.6 million as of March 31, 2012, an increase of $14.0 million from March 31, 2011, and a decrease of $2.6 million from the amount reported as of December 31, 2011.