White River Capital, Inc. Announces Results For 2011

White River Capital, Inc. (NYSE Amex: RVR) (“White River”) today announced net income for the fourth quarter 2011 was $2.0 million, or $0.57 per diluted share, compared to fourth quarter 2010 net income of $2.0 million, or $0.52 per diluted share. The net income results for the fourth quarter of 2011 and 2010 are due to the following:
  • $4.3 million of earnings from operations contributed by the Coastal Credit LLC (“Coastal Credit”) subsidiary for the fourth quarter of 2011, compared to $3.6 million of earnings from operations for the fourth quarter of 2010, and
  • $1.0 million of operating expenses at the holding company, and an income tax expense of $1.3 million for the fourth quarter of 2011, compared to $0.4 million of operating expenses and $1.2 million of income tax expense for the fourth quarter of 2010..

ANNUAL RESULTS

Net income for 2011 was $9.5 million, or $2.64 per diluted share, compared to 2010 net income of $7.1 million, or $1.84 per diluted share. The net income results for 2011 and 2010 are due to the following:
  • $17.1 million of earnings from operations contributed by the Coastal subsidiary for 2011, compared to $13.4 million of earnings from operations for 2010, and
  • $2.4 million of operating expenses at the holding company, and an income tax expense of $5.2 million for 2011, compared to $2.0 million of operating expenses and $4.3 million of income tax expense for 2010.

Martin Szumski, Chief Financial Officer, stated, “Coastal Credit’s portfolio performance continues to perform remarkably well considering the continued economic conditions. Coastal Credit’s 30+ day delinquency was 2.0% at December 31, 2011 compared to 1.6% at September 30, 2011 and 1.9% at December 31, 2010. The increase in delinquency from September 2011 to December 2011 is attributable to seasonality that occurs with this portfolio. Coastal Credit’s allowance for loan losses as a percentage of finance receivables, net of unearned finance charges was 5.68% at December 31, 2011 compared to 5.83% at September 30, 2011 and 6.92% at December 31, 2010.”