River Valley Bancorp (River Valley Bancorp) Financial Strength : 0 (As of Sep. 2015)

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What is River Valley Bancorp Financial Strength?

River Valley Bancorp has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate River Valley Bancorp's interest coverage with the available data. River Valley Bancorp's debt to revenue ratio for the quarter that ended in Sep. 2015 was 2.43. Altman Z-Score does not apply to banks and insurance companies.

River Valley Bancorp Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

River Valley Bancorp's Interest Expense for the months ended in Sep. 2015 was $-0.83 Mil. Its Operating Income for the months ended in Sep. 2015 was $1.45 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was $50.97 Mil.

River Valley Bancorp's Interest Coverage for the quarter that ended in Sep. 2015 is

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2015 )	/	Interest Expense (Q: Sep. 2015 )
	=	-1	*	1.453	/	-0.831
	=	1.75

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

River Valley Bancorp's Debt to Revenue Ratio for the quarter that ended in Sep. 2015 is

Debt to Revenue Ratio	=	Total Debt (Q: Sep. 2015 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	50.967)	/	20.936
	=	2.43

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

River Valley Bancorp (NAS:RIVR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

River Valley Bancorp has the Financial Strength Rank of 0.

River Valley Bancorp Financial Strength Related Terms

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River Valley Bancorp (River Valley Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » River Valley Bancorp (NAS:RIVR) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.rvfbank.com

River Valley Bancorp, an Indiana corporation, was formed in 1996. The activities of the holding company have been limited mainly to holding the stock of River Valley Financial, which was organized in 1875 under the laws of the United States of America. River Valley Financial, which provides banking services in a single business segment, conducts operations from its 14 full-service office locations in southeastern Indiana and northern Kentucky. Its loan portfolio comprises of residential loans, multi-family loans, construction loans, nonresidential real estate loans, land loans, commercial loans, and consumer loans. The Bank underwrites fixed rate residential mortgage loan for potential sale to the FHLMC on a servicing-retained basis. Deposits are attracted through the offering of deposit instruments including fixed rate certificate of deposits, NOW, MMDAs and other transactional accounts, individual retirement accounts and savings accounts. The Bank is subject to examination, supervision and regulation by the Indiana Department of Financial Institutions, and the Federal Deposit Insurance Corporation. The Holding Company is a bank holding company, subject to oversight by the Board of Governors of the Federal Reserve System.

Executives

Lonnie D Collins

director, officer: Secretary

RIVER VALLEY BANCORP, 303 CLIFTY DR, MADISON IN 47250