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 period ended June 30, 2012.
Net income for the quarter ending June 30, 2012 was $691,382, or $0.40 per share. Net income for the like period in 2011 was $621,519, or $0.35 per share. For the quarter ended June 30, 2012, the return on average assets was 0.68%, and the return on average equity was 8.24%, which compares to 0.63% and 7.58%, respectively, for the same period ended June 30, 2011.
The quarterly results reflect modestly improving interest margins, lower provision for loan losses, and the sale of certain mortgage-backed investment securities that were rapidly prepaying and an increase in sales of mortgage loans to the secondary market. Operating expenses increased in the like periods due to higher salary and benefit expenses, significantly higher costs of holding and disposing of real estate owned, and payments associated with delinquent loan properties. Also, included in the higher operating expenses were announced acquisition costs that were expensed as incurred.
For the six-month period ended June 30, 2012, net income was $1.28 million, or $0.73 per share. For the six-month period ended June 30, 2011, net income was $1.42 million, or $0.82 per share. The return on average assets for the six-month period ended June 30, 2012 was 0.63%, and the return on average equity was 7.67%. For the same six-month period in 2011, those corresponding numbers were 0.73% and 8.78%.For year-to-year comparison for the six-month period ended June 30, 2012 as compared to June 30, 2011, the Corporation experienced a $393,000 increase in noninterest income primarily from an increase of $280,000 in sales of loans to the secondary market and a $165,000 increase in gain on securities sold. Net interest margins increased slightly while there were lower provisions for loan losses and tax expense. These increases were more than offset by a $797,000 increase in operating expenses including higher salary and benefit expenses, a $245,000 write down of real estate owned and associated disposition expenses, a $144,000 increase in loan related expenses, including payments to third parties on behalf of delinquent borrowers, and approximately $146,000 in costs related to the acquisition of Dupont State Bank.