Form 8-K RIVER VALLEY BANCORP For: Jul 21

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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Item 2.02  Results of Operations and Financial Condition.

On July 21, 2015, River Valley Bancorp issued a press release reporting its results of operations and financial condition for the second quarter ended June 30, 2015.

A copy of the press release is attached as Exhibit 99.1 to this Current Report. The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

Item 9.01  Financial Statements and Exhibits.

(d) Exhibits

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized.

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EXHIBIT INDEX

Exhibit 99.1

 

 

River Valley Bancorp

Announces Improvement in Earnings for the Quarter

 

For Immediate Release

Tuesday July 21, 2015

Madison, Indiana – July 21, 2015– River Valley Bancorp (NASDAQ Capital Market, Symbol “RIVR”), an Indiana corporation (the “Corporation”) and holding company for River Valley Financial Bank (the “Bank”), based in Madison, Indiana announced today earnings for the quarter and six months ended June 30, 2015.

Net income for the quarter ended June 30, 2015 was $1,548,000 as compared to $1,141,000 reported for the quarter ended June 30, 2014 or approximately a 36% increase. Basic earnings per share for the quarter ended June 30, 2015 were $0.62 per share compared to $0.68 per share for the same period in 2014. For the quarter ended June 30, 2015, return on average assets was 1.20% and the return on average equity was 11.45%, which compares to 0.93% and 12.16%, respectively, for the quarter ended June 30, 2014. Earnings per share and the return on average equity for the 2015 periods declined as compared to like periods in 2014 due primarily to stock issued in the third quarter of 2014 as the result of a public offering.

Other financial highlights for the quarter ended June 30, 2015 include:

·	Improving net interest margins on higher average balances provided a $339,000 increase in net interest income over the same period in 2014.

·	Net loans, including loans held for sale, increased approximately $15.3 million from those recorded as of June 30, 2014.

·	Gains (losses) on real estate and premises held for sale swung to a net gain of $80,000 for the quarter ended June 30, 2015 as compared to a net loss of $250,000  for the same period in 2014.

·	Noninterest income decreased by approximately $83,000 from the like period in 2014 primarily due to decreased secondary lending activity.

·	The provision for loan losses for the quarter increased by approximately $75,000 to reflect growth in the loan portfolio.

·	Operating expenses in the 2015 period increased by a modest $39,000 primarily due to personnel changes and general administrative expenses.

For the six-month period ended June 30, 2015, net income improved 36% to $3,001,000, or $1.19 per share. For the six-month period ended June 30, 2014, net income was $2,206,000, or $1.32 per share. The return on average assets for the six-month period ended June 30, 2015 was 1.18%, and the return on average equity was 11.18%. For the same six-month period in 2014, those corresponding numbers were 0.91% and 12.09%.

Comparing the six-month periods ended June 30, 2015 and 2014, River Valley experienced results similar to the quarterly numbers. The six-month results reflected higher interest margins and positive income from the sale and gains of real estate held for sale. Provision expenses were identical, period to period, while non-interest income was modestly higher. Noninterest expense for the six-month period ended June 30, 2015 was approximately $210,000 higher than 2014 primarily from personnel changes and general administrative expenses.

Assets totaled $520.1 million as of June 30, 2015, an increase of $34.3 million from the $485.8 million reported as of June 30, 2014. Net loans, including loans held for sale, were $333.1 million as of June 30, 2015, an increase of $15.3 million from $317.8 million reported as of June 30, 2014. As of June 30, 2015, deposits totaled $405.1 million, an increase of $3.5 million from $401.6 million reported as of June 30, 2014.

“The Corporation continues in its ability to grow our net interest income, the largest component of our, and most community banks’, income statement. That ability, coupled with limited problem assets and restrained expenses created historic returns. The Corporation’s balance sheet may never have been stronger which contributes greatly to our results,” stated Matthew P. Forrester, President of River Valley Bancorp. “Developing the breadth and depth of our franchise has provided loan growth and appropriate funding opportunities that translates into superior performance.”

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Total delinquent loans (which include loans purchased with credit impairment from the 2012 acquisition), defined as loans 30 or more days past due, as a percentage of total loans, were 1.81% as of June 30, 2015 and 2.74% as of June 30, 2014. Non-performing loans, excluding loans purchased with credit impairment, to total loans were 2.42% and 4.13% as of June 30, 2015 and 2014, respectively.

As of June 30, 2015, the allowance for loan losses (“ALL”) totaled $3.68 million, but does not include amounts recognized as “fair market” adjustments on the loan portfolio acquired from Dupont State Bank in 2012. Those loans have a separate “mark” determined at the time of closing, and only new developments to that portfolio are reflected in the provision for loan loss calculations. The balance of the ALL on June 30, 2014 was $3.76 million.

Stockholders’ equity as of June 30, 2015 was $53.9 million, or 10.36% expressed as a percentage of assets, reported book value per common share was $21.44, and tangible book value per common share was $21.24.

River Valley Financial Bank comfortably exceeded the three regulatory capital standards to be considered “well capitalized” at June 30, 2015.

The last reported closing price of “RIVR” stock on July 20, 2015 was at $22.91.

Selected Financial Information

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Disclosure Regarding Non-GAAP Financial Measures

Certain information set forth in this press release refers to a financial measure determined by methods other than in accordance with GAAP. Specifically, we have included a non-GAAP financial measure of the tangible book value per common share. The Corporation believes that this non-GAAP financial measure is helpful to investors and provides a greater understanding of our business, although this measure is not necessarily comparable to similar measures that may be presented by other companies and it should not be considered in isolation or as a substitute for the related GAAP measure.

The information below provides a reconciliation of the non-GAAP measure to the comparable GAAP measure.

About River Valley Bancorp

River Valley Bancorp is the bank holding company for River Valley Financial Bank, which was founded in 1875 as a federally chartered thrift institution. The Bank converted to an Indiana state chartered commercial bank in 2012 in connection with its acquisition of Dupont State Bank, an Indiana commercial bank. The Bank is headquartered in Madison, Indiana, located along the Ohio River, and serves clients in southeastern Indiana and northern Kentucky from its 14 full-service office locations in Clark, Floyd, Jackson, Jennings, Jefferson and Ripley Counties in Indiana, and in Carroll County in Kentucky.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as "expects," "intends," "believes," and "should," which are necessarily statements of belief as to the expected outcomes of future events. Actual results could materially differ from those presented. The Corporation’s ability to predict future results involves a number of risks and uncertainties, some of which have been set forth in the Corporation’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.