-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DQEFYW8uuljlX/Y+v/2qEAZ4eh/7kUY1C3w8ERglLh8m6dZKDxUdCHDOAaaJYWwz AuQ/tRfmqb2m34tXCI6+cA== 0000908834-02-000230.txt : 20020814 0000908834-02-000230.hdr.sgml : 20020814 20020814120017 ACCESSION NUMBER: 0000908834-02-000230 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020630 FILED AS OF DATE: 20020814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVER VALLEY BANCORP CENTRAL INDEX KEY: 0001015593 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 351984567 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-21765 FILM NUMBER: 02732886 BUSINESS ADDRESS: STREET 1: 430 CLIFTY DR CITY: MADISON STATE: IN ZIP: 47250 BUSINESS PHONE: 8122734949 MAIL ADDRESS: STREET 1: 430 CLIFTY DR CITY: MADISON STATE: IN ZIP: 47250 10QSB 1 rv_10qsb0602.txt RIVER VALLEY BANCORP FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number: 0-21765 RIVER VALLEY BANCORP (Exact name of small business issuer as specified in its charter) Indiana 35-1984567 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 430 Clifty Drive Madison, Indiana 47250 (Address of principal executive offices) (812) 273-4949 (Issuer's telephone number) APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Check whether the issuer filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ] APPLICABLE ONLY TO CORPORATE ISSUERS State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: August 9, 2002 - 810,544 common shares Transitional Small Business Disclosure Format (Check one): Yes [ ] No [ X ] RIVER VALLEY BANCORP FORM 10-QSB INDEX Page No. PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Condensed Balance Sheets 3 Consolidated Condensed Statements of Income 4 Consolidated Condensed Statements of Comprehensive Income 5 Consolidated Condensed Statements of Cash Flows 6 Notes to Unaudited Consolidated Condensed Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 PART II. OTHER INFORMATION Item 1. Legal Proceedings 12 Item 2. Changes in Securities 12 Item 3. Defaults Upon Senior Securities 12 Item 4. Submission of Matters to a Vote of Security Holders 12 Item 5. Other Information 12 Item 6. Exhibits and Reports on Form 8-K 12 SIGNATURES AND CERTIFICATION 13 PART I FINANCIAL INFORMATION Item 1. Financial Statements
RIVER VALLEY BANCORP Consolidated Condensed Balance Sheets June 30, December 31, 2002 2001 --------------------- -------------------- (In Thousands, Except Share Amounts) (Unaudited) Assets Cash and due from banks $ 4,130 $ 4,689 Interest-bearing demand deposits 7,310 952 --------------------- -------------------- Cash and cash equivalents 11,440 5,641 Investment securities available for sale 18,831 17,653 Loans held for sale 698 2,638 Loans, net of allowance for loan losses of $2,012 and $1,972 161,632 155,334 Premises and equipment 5,557 5,379 Federal Home Loan Bank stock 1,650 1,250 Interest receivable 1,309 1,475 Other assets 2,547 2,248 --------------------- -------------------- Total assets $203,664 $191,618 ===================== ==================== Liabilities Deposits Non-interest-bearing $ 10,800 $ 11,406 Interest-bearing 140,590 134,165 --------------------- -------------------- Total deposits 151,390 145,571 Borrowings 31,550 26,500 Interest payable 460 613 Other liabilities 1,077 963 --------------------- -------------------- Total liabilities 184,477 173,647 --------------------- -------------------- Commitments and Contingencies Shareholders' Equity Preferred stock, without par value Authorized and unissued - 2,000,000 shares Common stock, without par value Authorized - 5,000,000 shares Issued and outstanding - 810,351 and 809,251 shares Additional paid-in capital 7,671 7,654 Retained earnings 11,796 10,802 Shares acquired by stock benefit plans (423) (532) Accumulated other comprehensive income 143 47 --------------------- -------------------- Total shareholders' equity 19,187 17,971 --------------------- -------------------- Total liabilities and shareholders' equity $ 203,664 $191,618 ===================== ====================
See notes to consolidated condensed financial statements.
RIVER VALLEY BANCORP Consolidated Condensed Statements of Income (Unaudited) Six Months Ended Three Months Ended June 30, June 30, -------------- -------------- ---------------- -------------- 2002 2001 2002 2001 -------------- -------------- ---------------- -------------- Interest Income (In Thousands, Except Share Amounts) Loans receivable $ 5,759 $ 6,064 2,881 3,100 Investment securities 440 251 231 123 Interest-earning deposits and other 87 147 51 66 -------------- --------------- --------------- -------------- Total interest income 6,286 6,462 3,163 3,289 -------------- --------------- --------------- -------------- Interest Expense Deposits 2,094 3,002 1,017 1,501 Borrowings 688 447 375 244 -------------- --------------- --------------- -------------- Total interest expense 2,782 3,449 1,392 1,745 -------------- --------------- --------------- -------------- Net Interest Income 3,504 3,013 1,771 1,544 Provision for loan losses 260 200 130 110 -------------- --------------- --------------- -------------- Net Interest Income After Provision for Loan Losses 3,244 2,813 1,641 1,434 -------------- --------------- --------------- -------------- Other Income Net realized gains (losses) on sales of available-for-sale securities 6 (1) 6 (1) Service fees and charges 647 441 328 235 Net gains on loan sales 150 217 103 161 Gain on sale of premises and equipment 352 2 352 2 Other income 64 14 16 4 -------------- --------------- --------------- -------------- Total other income 1,219 673 805 401 -------------- --------------- --------------- -------------- Other Expenses Salaries and employee benefits 1,157 1,063 595 530 Net occupancy and equipment expenses 402 278 202 137 Data processing fees 103 84 57 41 Advertising 86 94 45 55 Legal and professional fees 24 93 17 46 Other expenses 601 453 324 247 -------------- --------------- --------------- -------------- Total other expenses 2,373 2,065 1,240 1,056 -------------- --------------- --------------- -------------- Income Before Income Tax 2,090 1,421 1,206 779 Income tax expense 828 547 471 300 -------------- --------------- --------------- -------------- Net Income $1,262 $ 874 $ 735 $ 479 ============== =============== =============== ============== Basic earnings per share $ 1.630 $1.080 $ .940 $ .600 Diluted earnings per share 1.560 1.060 .910 .590 Dividends per share .350 .225 .200 .125
RIVER VALLEY BANCORP Consolidated Condensed Statements of Comprehensive Income (Unaudited) Six Months Ended Three Months Ended June 30, June 30, ------------- ------------ ------------- ----------- 2002 2001 2002 2001 ------------- ------------ ------------- ----------- (In Thousands) Net income $ 1,262 $ 874 $ 735 $ 479 Other comprehensive income, net of tax Unrealized gains on securities available for sale Unrealized holding gains arising during the period, net of tax expense of $66, $36, $144 and $7 100 55 219 10 Less: Reclassification adjustment for gains included in net income, of tax expense of $2, $0, $2, and $0 4 4 ------------- ---------- ------------- ------------ 96 55 215 10 ------------- ---------- ------------- ----------- Comprehensive income $ 1,358 $ 929 $ 950 $ 489 ============= ========== ============= ============
See notes to consolidated condensed financial statements.
RIVER VALLEY BANCORP Consolidated Condensed Statements of Cash Flows (Unaudited) Six Months Ended June 30, ------------------ ------------------- 2002 2001 ------------------ ------------------- Operating Activities (In Thousands) Net income $ 1,262 $ 874 Adjustments to reconcile net income to net cash provided by operating activities Provision for loan losses 260 200 Depreciation and amortization 254 169 Investment securities (gains) losses (6) 1 Loans originated for sale in the secondary market (14,633) (13,953) Proceeds from sale of loans in the secondary market 16,656 14,036 Gain on sale of loans (83) (83) Amortization of deferred loan origination cost 65 70 Amortization of expense related to stock benefit plans 196 159 Gain on sale of premises and equipment (352) (2) Capitalized interest on construction (1) (37) Net change in: Interest receivable 166 29 Interest payable (153) 108 Other adjustments (321) 146 ------------------ ------------------- Net cash provided by operating activities 3,310 1,717 ------------------ ------------------- Investing Activities Purchases of securities available for sale (6,992) (8,262) Proceeds from maturities of securities available for sale 90 3,156 Proceeds from sale of securities available for sale 5,889 3,127 Purchase of Federal Home Loan Bank stock (400) (207) Net change in loans (6,623) (11,630) Premiums paid on life insurance (95) Purchases of premises and equipment (708) (1,683) Proceeds from sale of real estate owned 30 Proceeds from sale of premises and equipment 629 2 ------------------ ------------------- Net cash used in investing activities (8,085) (15,592) ------------------ ------------------- Financing Activities Net change in Noninterest-bearing, interest-bearing demand and savings deposits (776) 9,316 Certificates of deposit 6,595 4,132 Proceeds from borrowings 34,000 24,400 Repayment of borrowings (28,950) (19,000) Cash dividends (229) (87) Purchase of stock (140) (686) Stock options exercised 92 15 Acquisition of stock for stock benefit plans (22) Advances by borrowers for taxes and insurance 4 9 ------------------ ------------------- Net cash provided by financing activities 10,574 18,099 ------------------ ------------------- Net Change in Cash and Cash Equivalents 5,799 4,224 Cash and Cash Equivalents, Beginning of Period 5,641 6,382 ------------------ ------------------- Cash and Cash Equivalents, End of Period $ 11,440 $ 10,606 ================== =================== Additional Cash Flows and Supplementary Information Interest paid $ 2,935 $ 3,341 Income tax paid 575 463
See notes to consolidated condensed financial statements. RIVER VALLEY BANCORP Notes to Unaudited Consolidated Condensed Financial Statements River Valley Bancorp (the "Corporation") is a unitary savings and loan holding company whose activities are primarily limited to holding the stock of River Valley Financial Bank ("River Valley" or the "Bank"). The Bank conducts a general banking business in southeastern Indiana which consists of attracting deposits from the general public and applying those funds to the origination of loans for consumer, residential and commercial purposes. River Valley's profitability is significantly dependent on net interest income, which is the difference between interest income generated from interest-earning assets (i.e. loans and investments) and the interest expense paid on interest-bearing liabilities (i.e. customer deposits and borrowed funds). Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Bank can be significantly influenced by a number of competitive factors, such as governmental monetary policy, that are outside of management's control. Note 1: Basis of Presentation The accompanying unaudited consolidated condensed financial statements were prepared in accordance with instructions for Form 10-QSB and, therefore, do not included information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles. Accordingly, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto of the Corporation included in the Annual Report on Form 10-KSB for the year ended December 31, 2001. However, in the opinion of management, all adjustments (consisting of only normal recurring accruals) which are necessary for a fair presentation of the financial statements have been included. The results of operations for the six and three month periods ended June 30, 2002, are not necessarily indicative of the results which may be expected for the entire year. The consolidated condensed balance sheet of the Corporation as of December 31, 2001 has been derived from the audited consolidated balance sheet of the Corporation as of that date. Note 2: Principles of Consolidation The consolidated financial statements include the accounts of the Corporation and its subsidiary, the Bank and the Bank's subsidiary, Madison First Service Corporation ("First Service"). All significant intercompany balances and transactions have been eliminated in the accompanying consolidated financial statements. Note 3: Earnings Per Share Earnings per share have been computed based upon the weighted average common shares outstanding. Unearned Employee Stock Ownership Plan shares have been excluded from the computation of average common shares outstanding.
Six Months Ended Six Months Ended June 30, 2002 June 30, 2001 ------------- ------------- Weighted Per Weighted Per Average Share Average Share Income Shares Amount Income Shares Amount ------ -------- ------ ------ -------- ------ (Dollar Amounts In Thousands, Except Share Amounts) Basic earnings per share Income available to common shareholders $1,262 775,503 $1.63 $874 809,254 $ 1.08 =========== ======== Effect of dilutive RRP awards and stock options 31,173 12,994 ------------- --------- --------- ---------- Diluted earnings per share Income available to common shareholders and assumed conversions $1,262 806,676 $1.56 $874 822,248 $1.06 ============= ========= =========== ========= ========== ========
Three Months Ended Three Months Ended June 30, 2002 June 30, 2001 ------------- ------------- Weighted Per Weighted Per Average Share Average Share Income Shares Amount Income Shares Amount ------ -------- ------ ------ -------- ------- (Dollar Amounts In Thousands, Except Share Amounts) Basic earnings per share Income available to common shareholders $ 735 778,342 $ .94 $479 798,702 $ .60 =========== ========= Effect of dilutive RRP awards and stock options 33,060 14,135 ------------- --------- --------- ---------- Diluted earnings per share Income available to common shareholders and assumed conversions $ 735 811,402 $ .91 $479 812,837 $ .59 ========== ========= =========== ========= ========== ========
Note 4: Reclassifications Certain reclassifications have been made to the 2001 consolidated financial statements to conform to the June 30, 2002 presentation. Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations Forward Looking Statement This Quarterly Report on Form 10-QSB ("Form 10-QSB") contains statements which constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this Form 10-QSB and include statements regarding the intent, belief, outlook, estimate or expectations of the Corporation (as defined in the notes to the consolidated condensed financial statements), its directors or its officers primarily with respect to future events and the future financial performance of the Corporation. Readers of this Form 10-QSB are cautioned that any such forward looking statements are not guarantees of future events or performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward looking statements as a result of various factors. The accompanying information contained in this Form 10-QSB identifies important factors that could cause such differences. These factors include changes in interest rates; loss of deposits and loan demand to other financial institutions; substantial changes in financial markets; changes in real estate values and the real estate market; or regulatory changes. Critical Accounting Policies The notes to the consolidated financial statements contain a summary of the Company's significant accounting policies presented on pages 27 through 29 of the Annual Report to Shareholders for the year ended December 31, 2001. Certain of these policies are important to the portrayal of the Company's financial condition, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. Management believes that its critical accounting policies include determining the allowance for loan losses and the valuation of mortgage servicing rights. Allowance for loan losses The allowance for loan losses is a significant estimate that can and does change based on management's assumptions about specific borrowers and current general economic and business conditions, among other factors. Management reviews the adequacy of the allowance for loan losses on at least a quarterly basis. The evaluation by management includes consideration of past loss experience, changes in the composition of the loan portfolio, the current condition and amount of loans outstanding, identified problem loans and the probability of collecting all amounts due. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. A worsening or protracted economic decline would increase the likelihood of additional losses due to credit and market risk and could create the need for additional loss reserves. Valuation of Mortgage Servicing Rights The Company recognizes the rights to service mortgage loans as separate assets in the consolidated balance sheet. The total cost of loans when sold is allocated between loans and mortgage servicing rights based on the relative fair values of each. Mortgage servicing rights are subsequently carried at the lower of the initial carrying value, adjusted for amortization, or fair value. Mortgage servicing rights are evaluated for impairment based on the fair value of those rights. Factors included in the calculation of fair value of the mortgage servicing rights include, estimating the present value of future net cash flows, market loan prepayment speeds for similar loans, discount rates, servicing costs, and other economic factors. Servicing rights are amortized over the estimated period of net servicing revenue. It is likely that these economic factors will change over the life of the mortgage servicing rights, resulting in different valuations of the mortgage servicing rights. The differing valuations will affect the carrying value of the mortgage servicing rights on the consolidated balance sheet as well as the income recorded from loan servicing in the income statement. As of June 30, 2002 and December 31, 2001, mortgage servicing rights had carrying values of $470,000 and $540,000, respectively. Financial Condition At June 30, 2002, the Corporation's assets totaled $203.7 million, an increase of $12.1 million, or 6.3%, from December 31, 2001. The increase in assets resulted primarily from an increase in net loans receivable. Liquid assets (i.e., cash and interest earning deposits) increased by $5.8 million from December 31, 2001 levels, to a total of $11.4 million at June 30, 2002. Investment securities increased by $1.2 million, or 6.7 %, to a total of $18.8 million at June 30, 2002. Net loans receivable were $161.6 million at June 30, 2002, an increase of $6.3 million, or 4.1%, from $155.3 million at December 31, 2001. These increases were funded by an increase in deposits of $5.8 million. The Corporation's allowance for loan losses totaled $2.0 million at both December 31, 2001 and June 30, 2002, which represented approximately 1.2 % of total loans at both dates. Non-performing loans (defined as loans delinquent greater than 90 days and loans on non-accrual status) totaled $690,000 and $1.9 million at December 31, 2001 and June 30, 2002, respectively. Although management believes that its allowance for loan losses at June 30, 2002, was adequate based upon the available facts and circumstances, there can be no assurance that additions to such allowance will not be necessary in future periods, which could negatively affect the Corporation's results of operations. Deposits totaled $151.4 million at June 30, 2002, an increase of $5.8 million, or 4.0 %, compared to total deposits at December 31, 2001. The growth for the six-month period resulted from marketing and interest rate strategies. Advances from the Federal Home Loan Bank totaled $25.0 million at December 31, 2001 and $31.0 million on June 30, 2002. These advances had a positive effect on the bottom line during the first and second quarters due to a decline in their interest rates. The average cost of Federal Home Loan Bank advances at June 30, 2002 was 4.90 %. Stockholders' equity totaled $19.2 at June 30, 2002, an increase of $1.2 million, or 6.7 %, from $18.0 million at December 31, 2001. The increase resulted primarily from the Corporation's net income, offset by cash dividends and stock repurchases. The Bank is required to maintain minimum regulatory capital pursuant to federal regulations. At June 30, 2002, the Bank's regulatory capital exceeded all applicable regulatory capital requirements. Comparison of Operating Results for the Six Months Ended June 30, 2002 and 2001 General The Corporation's net income for the six months ended June 30, 2002, totaled $1,262,000, an increase of $388,000 or 44.4 % from the $874,000 reported for the period ended June 30, 2001. The increase in income in the 2002 period was primarily attributable to an increase in net interest income of $491,000 and an increase in other income of $546,000. These increases were partially offset by an increase in the provision for loan losses of $60,000 and an increase in other expenses of $308,000. Net Interest Income Total interest income for the six months ended June 30, 2002 amounted to $6.3 million, a decrease of $.2 million, or 3.1 %, below the comparable period in 2001, reflecting the effects of a decrease in the average interest rate on our loan portfolio. The rate went from 8.1 % to 7.3 %. Interest expense on deposits decreased by $ .9 million, or 30.2 %, to a total of $2.1 million for the six months ended June 30, 2002, due primarily to a decrease in the average cost of deposits, as there was an increase in the average balance of deposits outstanding year-to-year. Interest expense on borrowings totaled $688,000 for the six months ended June 30, 2002, an increase of $241,000, from the comparable period in 2001. The increase resulted primarily from an increase in average borrowings year-to-year. As a result of the foregoing changes in interest income and interest expense, net interest income increased by $491,000 or 16.3 %, for the six months ended June 30, 2002, as compared to the comparable period in 2001. Provision for Losses on Loans A provision for losses on loans is charged to income to bring the total allowance for loan losses to a level considered appropriate by management based upon historical experience, the volume and type of lending conducted by the Bank, the status of past due principal and interest payments, general economic conditions, particularly as such conditions relate to the Bank's market area, and other factors related to the collectibility of the Bank's loan portfolio. As a result of such analysis, management recorded a $260,000 provision for losses on loans for the six months ended June 30, 2002, compared to the $200,000 amount recorded in the 2001 period. The 2002 provision amount was predicated on the increase in the balance of the loan portfolio, coupled with the level of delinquent loans year-to-year. While management believes that the allowance for losses on loans is adequate at June 30, 2002, based upon the available facts and circumstances, there can be no assurance that the loan loss allowance will be adequate to cover losses on non-performing assets in the future. Other Income Other income increased by $546,000, or 81.1 %, for the six months ended June 30, 2002, as compared to the same period in 2001, due primarily to the fact that we closed an office and sold the building for a gain of approximately $352,000. Other Expense Other expense increased by $308,000, or 14.9 %, during the six months ended June 30, 2002, as compared to the same period in 2001. The increase was due primarily to the increase in loan volume/administrative expense, both balance sheet and off-balance sheet volume, and general expense increases due to growth. Income Taxes The provision for income taxes totaled $828,000 for the six months ended June 30, 2002, an increase of $281,000, or 51.4 %, as compared to the same period in 2001. The effective tax rates were 39.6 % and 38.5 % for the six months ended June 30, 2002 and 2001, respectively. Comparison of Operating Results for the Three Months Ended June 30, 2002 and 2001 General The Corporation's net income for the three months ended June 30, 2002, totaled $735,000, an increase of $256,000, or 53.4 %, from the $479,000 of net income reported in the comparable 2001 period. The increase in earnings in the 2002 period was primarily attributable to an increase in net interest income of $227,000 and an increase in other income of approximately $404,000. Net Interest Income Total interest income for the three months ended June 30, 2002 amounted to $3.2 million, a decrease of $126,000, or 3.8 %, from the comparable quarter in 2001, reflecting the effects of a decrease in average interest rate. Interest income on loans totaled $2.9 million for the three months ended June 30, 2002, a decrease of approximately $200,000, or 6.5 %, from the comparable 2001 quarter. Interest expense on deposits decreased by $484,000, or 32.2 %, to a total of $1.0 million for the quarter ended June 30, 2002, due primarily to a decrease in the average cost of deposits. Interest expense on borrowings totaled $375,000 for the three months ended June 30, 2002, an increase of $131,000 over the comparable quarter in 2001. The increase resulted primarily from an increase in average borrowings outstanding from year-to-year. As a result of the foregoing changes in interest income and interest expense, net interest income increased by $227,000, or 14.7 %, for the three months ended June 30, 2002, as compared to the same quarter in 2001. Provision for Losses on Loans A provision for losses on loans is charged to earnings to bring the total allowance for loan losses to a level considered appropriate by management based upon historical experience, the volume and type of lending conducted by the Bank, the status of past due principal and interest payments, general economic conditions, particularly as such conditions relate to the Bank's market area, and other factors related to the collectibility of the Bank's loan portfolio. As a result of such analysis, management recorded a $130,000 provision for losses on loan for the three months ended June 30, 2002, compared to the $110,000 recorded in the 2001 period. While management believes that the allowance for losses on loans is adequate at June 30, 2002, based upon the available facts and circumstances, there can be no assurance that the loan loss allowance will be adequate to cover losses on non-performing assets in the future. Other Income Other income increased by $404,000 for the three months ended June 30, 2002, as compared to the same period in 2001, due primarily to a $352,000 gain from the disposition of a former banking facility. In addition, service fees and charges increased $93,000 for the three months ended June 30, 2002, as compared to the same period in 2001. Other Expense Other expense increased by $184,000, or 17.4%, during the three months ended June 30, 2002, compared to the same period in 2001. This increase resulted primarily from the increase in loan volume/administrative expense, both balance sheet and off-balance sheet volume, and general expense increases due to growth. Income Taxes The provision for income taxes totaled $471,000 for the three months ended June 30, 2002, an increase of $171,000, or 56.9%, as compared to the same period in 2001. This increase resulted primarily from an increase in net income before income taxes of $427,000, or 54.8%. The effective tax rates were 39.0 % and 38.5% for the three months ended June 30, 2002 and 2001, respectively. Other The Securities and Exchange Commission maintains a Web site that contains reports, proxy information statements, and other information regarding registrants that file electronically with the Commission, including the Corporation. The address is http://www.sec.gov. PART II. OTHER INFORMATION Item 1. Legal Proceedings None. Item 2. Changes in Securities and Use of Proceeds None. Item 3. Defaults Upon Senior Securities. None. Item 4. Submission of Matters to Vote of Security Holders. On April 17, 2002, the Annual Meeting of the Corporation's shareholders was held. Three directors were elected to the following terms and by the following votes: For Votes Withheld Michael J. Hensley (three-year term) 742,277 2,972 Fred W. Koehler (three-year term) 740,257 4,992 L. Sue Livers (three-year term) 739,862 5,387 Directors continuing in office are Robert W. Anger, Jonnie L. Davis, Matthew P. Forrester and Charles J. McKay. Item 5. Other Information. None. Item 6. Exhibits and Reports on Form 8-K. (a) None (b) No reports on Form 8-K were filed during the quarter ended June 30, 2002. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Issuer has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RIVER VALLEY BANCORP Date: August 14, 2002 By: /s/ Matthew P. Forrester --------------------------------------- Matthew P. Forrester President and Chief Executive Officer Date: August 14, 2002 By: /s/ Larry C. Fouse --------------------------------------- Larry C. Fouse Vice President of Finance CERTIFICATION By signing below, each of the undersigned officers hereby certifies pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his or her knowledge, (i) this report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in this report fairly presents, in all material respects, the financial condition and results of operations of River Valley Bancorp. Signed this 14th day of August, 2002. By: /s/ Larry C. Fouse By: /s/ Matthew P. Forrester ------------------------------- ---------------------------------- Larry C. Fouse Matthew P. Forrester Vice President of Finance President and Chief Executive Officer -----END PRIVACY-ENHANCED MESSAGE-----