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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 quarter ended September 30, 2012.
Net income for the quarter ended September 30, 2012 is a historic high and reflects the highest dollar amount recorded since our incorporation and establishment as a publicly traded entity in 1996. The Corporation reported net income of $845,796, or $0.50 per share. Net income for the like period in 2011 was a reported loss of $207,145, or $(0.20) per share. The return on average assets for the three-month period ended September 30, 2012 was 0.82% and the return on average equity was 9.74%. Those respective ratios were (0.21)% and (2.48)% for the like period in 2011.
The September 30, 2012 quarter reflects significantly higher non-interest income from the sale of loans in the secondary market. It also reflects gains from the sale of certain investment securities due to increasing interest rate and credit risks. The quarter also reflects significantly lower provision for loan loss and disposition costs of real estate owned, $268,000 and $172,000 respectively. For the like quarter in 2011, the Corporation provided a $1.4 million provision for loan losses, and recorded another $534,000 write down on real estate owned during the third quarter. Total noninterest expense, otherwise known as operating expenses, were higher in 2012 due to continued acquisition expenses, general increases in employee expense, and monies paid on behalf of delinquent borrowers for property taxes and insurance. Likewise, taxes were higher in the 2012 quarter on earned income, where in the like period in 2011, there was a tax benefit.
Net income for the nine-month period ended September 30, 2012 was $2,129,448, or $1.23 per basic share. This represents an increase of $913,114, or a 75% increase from the $1,216,334, or $0.62 per basic share, recorded for the same period ended September 30, 2011. As stated previously, this increase is primarily attributable to lower provision expense and valuation determinations of real estate owned in the third quarter of 2011. The return on average assets for the nine-month period ended September 30, 2012 was 0.70% and the return on average equity was 8.37%. Those respective ratios were 0.41% and 4.95% for the like period in 2011.