Exhibit 99.1
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River Valley Bancorp
Announces 10% Increase in Earnings for the Quarter
Ended September 30, 2003
For Immediate Release
Tuesday, October 14, 2003
Madison, Indiana - October 14, 2003- River Valley Bancorp (NASDAQ Small Cap
Symbol "RIVR"), an Indiana corporation (the "Corporation") and holding company
for River Valley Financial Bank (the "Bank"), based in Madison, Indiana
announced earnings for the third quarter ended September 30, 2003.
Net income for the quarter was $749,592, an increase of $67,529 or 9.9%, from
the $682,063 reported for the quarter ended September 30, 2002. Net income for
the quarter ended September 30, 2003 expressed as basic earnings per share was
$0.94 which corresponds to $0.87 per share recorded for the same period a year
earlier. Return on average assets was 1.27% and the return on average equity was
13.60% for the third quarter of fiscal 2003.
Net income for the nine month period ended September 30, 2003 was $2,025,855, or
$2.56 per basic share. For the year to date period, this is an increase of
$81,908, or 4.2%, from the $1,943,947, or $2.50 per basic share, earned in the
nine month period ended September 30, 2002. Results for the 2002 period were
positively impacted by an after tax gain of approximately $212,000 from the
disposition of a former branch office facility in the second quarter of 2002.
Excluding this one time gain, year to date earnings in 2003 have increased
nearly 17.0% over the same nine month period in 2002. Return on average assets
for the nine month period ended September 30, 2003 was 1.14% and the return on
average equity was 12.53%. Those percentages for the like period in 2002 were
1.27% and 13.64%, respectively.
Assets totaled $245.2 million as of September 30, 2003, an increase of $21.2
million, or a 9.5% increase, from the $224.0 million reported as of December 31,
2002. Net loans, including loans held for sale, were $187.1 million as of
September 30, 2003, an increase of $21.1 million, or a 12.7% increase, over the
balance at December 31, 2002. Deposits totaled $171.6 million as of September
30, 2003, an increase of $9.8 million, or an increase of nearly 6.1%, from the
balances reported December 31, 2002.
"The Corporation continues to shatter historical benchmarks in spite of a
perceived general economic downturn," stated Matthew P. Forrester, president of
River Valley Bancorp. He further adds, "the Bank continues to grow and prosper.
While bank margins grow tighter, our core business is expanding. We have been
fortunate to grow our outstanding loan portfolio all while having significant
sales of fixed rate residential mortgage loans to the secondary market. That
combination of activities is important in the short-term, but will have
significant implications if and when margins rebound."
Stockholders' equity as of September 30, 2003 was $22.2 million, or 9.05% as
expressed as a percentage of assets. Reported book value of River Valley Bancorp
stock was $27.10 as of September 30, 2003.
The last reported trade of "RIVR" stock on October 14, 2003 was at $41.50.
Contact: Matthew P. Forrester - President, CEO
River Valley Bancorp
812-273-4949
Selected Financial Information
(In thousands, unless otherwise noted)
3 Months Ended 9 months Ended 9 Months Ended
9-30-03 9-30-03 9-30-02
Assets $245,184 $223,162
Net Loans, 187,140 165,209
(including loans held for sales)
ALL 2,076 2,029
Deposits 171,597 161,417
Stockholders' Equity 22,202 20,015
Total Interest Income $3,290 $ 9,443 $ 9,528
Total Noninterest Inc. 924 2,657 2,098
Interest Expense 1,327 4,018 4,188
Noninterest Expense 1,484 4,406 3,810
Provision Loan Losses 180 360 410
Taxes 474 1,290 1,274
Net Income 749 2,026 1,944
ROAA 1.27% 1.14% 1.27%
ROAE 13.91% 12.53% 13.64%
Earnings per Basic Share $0.94 $2.56 $2.50