River Valley Bancorp. (RIVR, Financial) filed Quarterly Report for the period ended 2012-09-30.
River Valley Bancorp has a market cap of $26.3 million; its shares were traded at around $17.38 with a P/E ratio of 11.3 and P/S ratio of 1.2. The dividend yield of River Valley Bancorp stocks is 4.8%. River Valley Bancorp had an annual average earning growth of 1.2% over the past 10 years.
Total interest expense for the same period decreased more significantly, $603,000, or 13.7%, from the $4.4 million reported at September 30, 2011 to $3.8 million at September 30, 2012. For the nine months ended September 30, 2012, interest expense from deposits totaled $2.0 million while interest expense from borrowings totaled $1.8 million, as compared to $2.6 million and $1.8 million for the same period in 2011. Of the overall decrease in interest expense, $594,000 was attributable to interest expense on deposits, primarily due to the repricing of fixed-maturity deposits at constantly lowering rates, and to a lesser degree due to the changes in the deposit mix. The decrease in interest-bearing maturity deposits, such as certificates of deposit, and related increase in transactional deposits, many of which are noninterest bearing, benefited the Corporation through reduced interest expense. Net interest income was $9.1 million for the nine months ended September 30, 2012 and $8.9 million for the same period in 2011, with an increase period to period of $183,000, or 2%. The spread between interest-earning assets and interest-bearing liabilities, 3.36% as of September 30, 2012 as compared to 3.34% at the same point in 2011, demonstrates the combined effect of changes in the mix of the underlying assets and liabilities.
Other income increased by $1.1 million, or 55.5%, during the nine months ended September 30, 2012 to $3.1 million, as compared to the $2.0 million reported for the same period in 2011. The increase was due primarily to net gains on loan sales as well as net gains on sales of available-for-sale securities. Gains on the sale of loans into the secondary market, primarily to Freddie Mac, $844,000 for the nine months ended September 30, 2012 as compared to $367,000 for the same nine months in 2011, reflected the impact of continued decreases in interest rates, as rates on Freddie Mac 15 year mortgage dropped to 3.25% for qualified borrowers. While sales into the secondary market for the first nine months of 2012 exceeded the same for 2011, this trend may not continue into 2013 as originations of loans for sale are expected to decline as underwriting continues to be tight and refinance demand is expected to decline. Gains on the sale of available-for-sale securities, $450,000 for the nine months ended September 30, 2012 as compared to $270,000 for the same period in 2011, reflected management s decision to exchange rapidly amortizing asset-backed investments, and other investments with embedded option, for investments with a more predictable cash flow. The only other notable increase in other income for the nine-month period was in fees and charges relative to deposit accounts, primarily overdraft fees, which increased $123,000, period to period, with the total income from these fees $1.6 million for the nine-month period ended September 30, 2012 as compared to $1.4 million for the same period in 2011, primarily due to increased overdraft activity. Unlike interest income, āother incomeā is not always readily predictable and is subject to variations depending on outside influences, including regulatory changes.
During 2011, the Corporation realized strong income from the widening of the margin between interest-earning assets and interest-bearing liabilities. This trend has somewhat stabilized, with net interest income nearly identical for the three-month periods ended September 30, 2012 and 2011. Total interest income for the three-month period ended September 30, 2012 was $4.3 million as compared to $4.5 million for the same period in 2011, a decrease of $156,000, or 3.5%. Conversely, total interest expense for the three-month period ended September 30, 2012 was $1.2 million as compared to $1.5 million for the same period in 2011, a decrease of $234,000, or 16.0%. Provision expense decreased $1.2 million or 81.5% from $1.4 million for the three months ended September 30, 2011 to $268,000 for the three months ended September 30, 2012. The 2011 provision expense was primarily due to large charge offs identified and expensed for additional deterioration of loans in the third quarter of 2011.
Other income increased by $709,000, or 179.5%, during the three months ended September 30, 2012 to $1.1 million, as compared to the $395,000 reported for the same period in 2011. The increase was due primarily to a decrease in losses on OREO sales and value write-downs with $172,000 in losses for the three-month period ended September 30, 2012 compared to $533,000 for the same period in 2011. Income from the sale of loans into the secondary market was another large contributing factor, period to period. Gains on sales to the Federal Home Loan Mortgage Corporation (Freddie Mac) for the three months ending September 30, 2012 totaled $335,000 an increase of $197,000 over the $138,000 recorded for the same period ended September 30, 2011. Sales to Freddie Mac for the three months ended September 30, 2012 were $9.6 million, a strong increase over the $5.0 million recorded for the three-month period ended September 30, 2011. Sales into the secondary market have been strong during the entirety of 2012 as consumers take advantage of record low interest rates. Other notable increases in other income, period to period, included service fees and charges, which includes income from ATM usage. Service fees and charges increased to $557,000 for the three-month period ended September 30, 2012 from $516,000 for the comparable period in 2011, an increase of $41,000. Unlike interest income, āother incomeā is not always readily predictable and is subject to variations depending on outside influences.
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River Valley Bancorp has a market cap of $26.3 million; its shares were traded at around $17.38 with a P/E ratio of 11.3 and P/S ratio of 1.2. The dividend yield of River Valley Bancorp stocks is 4.8%. River Valley Bancorp had an annual average earning growth of 1.2% over the past 10 years.
Highlight of Business Operations:
Proceeds from sales of securities available for sale during the nine-month periods ended September 30, 2012 and September 30, 2011 were $6,561,000 and $7,585,000. Gross gains of $450,000 and $270,000 resulting from sales and calls of available-for-sale securities were realized for the nine-month periods ended September 30, 2012 and September 30, 2011, respectively. No losses were recorded for the nine-month periods ended September 30, 2012 or September 30, 2011. Proceeds from sales of securities available for sale during the three-month periods ended September 30, 2012 and September 30, 2011 were $1,740,000 and $4,251,000. Gross gains of $119,000 and $105,000 resulting from sales and calls of available-for-sale securities were realized for the three-month periods ended September 30, 2012 and September 30, 2011, respectively. No losses were recorded for the three-month periods ended September 30, 2012 or September 30, 2011.Total interest expense for the same period decreased more significantly, $603,000, or 13.7%, from the $4.4 million reported at September 30, 2011 to $3.8 million at September 30, 2012. For the nine months ended September 30, 2012, interest expense from deposits totaled $2.0 million while interest expense from borrowings totaled $1.8 million, as compared to $2.6 million and $1.8 million for the same period in 2011. Of the overall decrease in interest expense, $594,000 was attributable to interest expense on deposits, primarily due to the repricing of fixed-maturity deposits at constantly lowering rates, and to a lesser degree due to the changes in the deposit mix. The decrease in interest-bearing maturity deposits, such as certificates of deposit, and related increase in transactional deposits, many of which are noninterest bearing, benefited the Corporation through reduced interest expense. Net interest income was $9.1 million for the nine months ended September 30, 2012 and $8.9 million for the same period in 2011, with an increase period to period of $183,000, or 2%. The spread between interest-earning assets and interest-bearing liabilities, 3.36% as of September 30, 2012 as compared to 3.34% at the same point in 2011, demonstrates the combined effect of changes in the mix of the underlying assets and liabilities.
Other income increased by $1.1 million, or 55.5%, during the nine months ended September 30, 2012 to $3.1 million, as compared to the $2.0 million reported for the same period in 2011. The increase was due primarily to net gains on loan sales as well as net gains on sales of available-for-sale securities. Gains on the sale of loans into the secondary market, primarily to Freddie Mac, $844,000 for the nine months ended September 30, 2012 as compared to $367,000 for the same nine months in 2011, reflected the impact of continued decreases in interest rates, as rates on Freddie Mac 15 year mortgage dropped to 3.25% for qualified borrowers. While sales into the secondary market for the first nine months of 2012 exceeded the same for 2011, this trend may not continue into 2013 as originations of loans for sale are expected to decline as underwriting continues to be tight and refinance demand is expected to decline. Gains on the sale of available-for-sale securities, $450,000 for the nine months ended September 30, 2012 as compared to $270,000 for the same period in 2011, reflected management s decision to exchange rapidly amortizing asset-backed investments, and other investments with embedded option, for investments with a more predictable cash flow. The only other notable increase in other income for the nine-month period was in fees and charges relative to deposit accounts, primarily overdraft fees, which increased $123,000, period to period, with the total income from these fees $1.6 million for the nine-month period ended September 30, 2012 as compared to $1.4 million for the same period in 2011, primarily due to increased overdraft activity. Unlike interest income, āother incomeā is not always readily predictable and is subject to variations depending on outside influences, including regulatory changes.
During 2011, the Corporation realized strong income from the widening of the margin between interest-earning assets and interest-bearing liabilities. This trend has somewhat stabilized, with net interest income nearly identical for the three-month periods ended September 30, 2012 and 2011. Total interest income for the three-month period ended September 30, 2012 was $4.3 million as compared to $4.5 million for the same period in 2011, a decrease of $156,000, or 3.5%. Conversely, total interest expense for the three-month period ended September 30, 2012 was $1.2 million as compared to $1.5 million for the same period in 2011, a decrease of $234,000, or 16.0%. Provision expense decreased $1.2 million or 81.5% from $1.4 million for the three months ended September 30, 2011 to $268,000 for the three months ended September 30, 2012. The 2011 provision expense was primarily due to large charge offs identified and expensed for additional deterioration of loans in the third quarter of 2011.
Other income increased by $709,000, or 179.5%, during the three months ended September 30, 2012 to $1.1 million, as compared to the $395,000 reported for the same period in 2011. The increase was due primarily to a decrease in losses on OREO sales and value write-downs with $172,000 in losses for the three-month period ended September 30, 2012 compared to $533,000 for the same period in 2011. Income from the sale of loans into the secondary market was another large contributing factor, period to period. Gains on sales to the Federal Home Loan Mortgage Corporation (Freddie Mac) for the three months ending September 30, 2012 totaled $335,000 an increase of $197,000 over the $138,000 recorded for the same period ended September 30, 2011. Sales to Freddie Mac for the three months ended September 30, 2012 were $9.6 million, a strong increase over the $5.0 million recorded for the three-month period ended September 30, 2011. Sales into the secondary market have been strong during the entirety of 2012 as consumers take advantage of record low interest rates. Other notable increases in other income, period to period, included service fees and charges, which includes income from ATM usage. Service fees and charges increased to $557,000 for the three-month period ended September 30, 2012 from $516,000 for the comparable period in 2011, an increase of $41,000. Unlike interest income, āother incomeā is not always readily predictable and is subject to variations depending on outside influences.
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