FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
-----------------------------------------------
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 2-47541
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 No.)
430 Clifty Drive
Madison, Indiana 47250
(Address of Principal (Zip Code)
Executive Offices)
Issuer's Telephone Number, Including Area Code: (812) 273-4949
Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No ___
---
As of August 11, 2000, there were 916,972 shares of the Registrant's common
stock, without par value, issued and outstanding.
<PAGE>
River Valley Bancorp
2
INDEX
Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Statements of Financial Condition 3
Consolidated Condensed Statements of Earnings 4
Consolidated Condensed Statements of Comprehensive Income 5
Consolidated Condensed Statements of Cash Flows 6
Notes to 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 14
Item 2. Changes in Securities 14
Item 3. Defaults Upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
<PAGE>
River Valley Bancorp
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 2000 1999
--------- ---------
<S> <C> <C>
Cash and due from banks $ 3,684 $ 3,648
Federal funds sold 650 1,550
Interest-earning deposits in other financial institutions 2,028 2,854
--------- ---------
Cash and cash equivalents 6,362 8,052
Investment securities available for sale 5,740 6,301
Investment securities held to maturity -- 3,138
Loans receivable - net 128,700 115,131
Office premises and equipment 1,927 1,928
Federal Home Loan Bank stock 943 943
Accrued interest receivable 1,172 1,043
Other Assets 2,295 2,159
--------- ---------
Total assets $ 147,139 $ 138,695
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 122,035 $ 114,251
Borrowings 6,850 6,500
Accrued interest payable 398 330
Other liabilities 837 748
--------- ---------
Total liabilities 130,120 121,829
--------- ---------
Stockholders' equity
Preferred stock - 2,000,000 shares without par value
authorized; no shares issued -- --
Common stock - 5,000,000 shares without par value authorized;
921,972 and 970,497 shares issued and outstanding at
June 30, 2000 and December 31, 1999 -- --
Additional paid in capital 11,314 11,314
Retained earnings - substantially restricted 10,181 9,551
Shares acquired by stock benefit plans (847) (967)
Less 268,278 and 219,753 treasury shares - at cost (3,582) (2,976)
Accumulated other comprehensive loss (47) (56)
--------- ---------
Total stockholders' equity 17,019 16,866
--------- ---------
Total liabilities and stockholders' equity $ 147,139 $ 138,695
========= =========
</TABLE>
See notes to consolidated condensed financial statements.
<PAGE>
River Valley Bancorp
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
<TABLE>
<CAPTION>
Six months ended Three months ended
June 30, June 30,
2000 1999 2000 1999
------- ------- ------- -------
Interest income
<S> <C> <C> <C> <C>
Loans $ 4,782 $ 4,333 $ 2,466 $ 2,127
Investment securities 210 288 85 166
Interest-earning deposits and other 188 232 89 115
------- ------- ------- -------
Total interest income 5,180 4,853 2,640 2,408
Interest expense
Deposits 2,373 2,310 1,214 1,126
Borrowings 157 30 74 26
Total interest expense 2,530 2,340 1,288 1,152
------- ------- ------- -------
Net interest income 2,650 2,513 1,352 1,256
Provision for losses on loans 57 100 44 40
------- ------- ------- -------
Net interest income after provision for losses on loans 2,593 2,413 1,308 1,216
------- ------- ------- -------
Other income
Loss on investment securities (4) 0 0 0
Service fees and charges 430 353 186 174
Other income 100 58 63 32
------- ------- ------- -------
Total other income 526 411 249 206
------- ------- ------- -------
Other expense
Employee compensation and benefits 995 1,011 481 478
Occupancy and equipment 287 266 153 134
Other operating expense 567 665 282 336
------- ------- ------- -------
Total other expense 1,849 1,942 916 948
------- ------- ------- -------
Income before income tax expense 1,270 882 641 474
Income tax expense 483 342 235 180
------- ------- ------- -------
Net income $ 787 $ 540 $ 406 $ 294
======= ======= ======= =======
EARNINGS PER SHARE
Basic $ .91 $ .51 $ .47 $ .29
======= ======= ======= =======
Diluted $ .91 $ .51 $ .47 $ .29
======= ======= ======= =======
</TABLE>
See notes to consolidated condensed financial statements.
<PAGE>
River Valley Bancorp
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
<TABLE>
<CAPTION>
For the six months For the three months
ended June 30, ended June 30,
2000 1999 2000 1999
----- ----- ----- -----
<S> <C> <C> <C> <C>
Net income $ 787 $ 540 $ 406 $ 294
Other comprehensive income(loss), net of tax
Unrealized gains(losses) on securities available for sale 6 (26) (2) (19)
Unrealized holding gains (losses) arising during the period,
net of tax expense(benefit) of $3,$(13),
$(1) and $(10) (3) (3)
----- ----- ----- -----
Less: Reclassification adjustment for
losses included in net income,
net of tax benefit of $(1) and $(1) 9 (26) 1 (19)
----- ----- ----- -----
Comprehensive income $ 796 $ 514 $ 407 $ 275
===== ===== ===== =====
</TABLE>
See notes to consolidated financial statements.
<PAGE>
River Valley Bancorp
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2000
(In thousands)
<TABLE>
<CAPTION>
2000 1999
-------- --------
Cash flows from operating activities:
<S> <C> <C>
Net earnings for the period $ 787 $ 540
Adjustments to reconcile net earnings to net cash
Provided by operating activities:
Amortization of premiums and discounts on
investments (24) (58)
Investment securities losses 4
Gain on sale of office premises and equipment (42)
Loans originated for sale in the secondary market (1,429) (7,039)
Proceeds from sale of loans in the secondary market 1,443 10,435
(Gain) loss on sale of loans (14) 5
Amortization of deferred loan origination costs 45 66
Provision for losses on loans 57 100
Amortization expense of stock benefit plans 120 120
Depreciation and amortization 117 118
Amortization of goodwill 3 3
Increase (decrease) in cash due to changes in:
Accrued interest receivable (129) (37)
Accrued interest payable 68 (109)
Other adjustments 158 61
-------- --------
Net cash provided by operating activities 1,164 4,205
-------- --------
Cash flows provided (used) by investing activities:
Proceeds from maturity of investment securities available for sale 4,919 8,725
Purchase of investment securities available for sale (2,961) (15,569)
Net change in loans (13,671) 1,196
Proceeds from sale of real estate acquired through foreclosure -- 82
Acquisition of property in settlement of loans -- (12)
Proceeds from sale of office premises and equipment 56 76
Proceeds from maturities of securities held to maturity 1,204 611
Proceeds from sale of investment securities available for sale 569 --
Premiums paid on life insurance (216) --
Purchase of office equipment (129) (232)
-------- --------
Net cash used by investing activities (10,229) (5,123)
-------- --------
Cash flows provided by (used in) financing activities:
Net change in deposit accounts 7,784 (2,544)
Proceeds from Federal Home Loan Bank advances 6,000 --
Repayment of Federal Home Loan Bank advances (6,000) --
Net change in other borrowings 350 1,626
Purchase of shares (606) (1.370)
Dividends paid on common stock (153) (137)
Advances by borrowers for taxes and insurance 4 4
-------- --------
Net cash provided (used) by financing activities 7,379 (2,421)
-------- --------
Net decrease in cash and cash equivalents (1,690) (3,339)
Cash and cash equivalents at beginning of period 8,052 12,307
-------- --------
Cash and cash equivalents at end of period $ 6,362 $ 8,968
======== ========
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes $ 386 $ 366
Interest on deposits and borrowings 2,462 2,459
Supplemental disclosure of noncash investing activities:
Recognition of mortgage servicing rights in accordance with 13 44
SFAS No. 125
Investment securities held to maturity
transferred to available for sale 1,934 --
</TABLE>
See notes to consolidated condensed financial statements.
<PAGE>
River Valley Bancorp
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
For the six month periods ended June 30, 2000 and 1999
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.
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
include 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-K for the year ended December 31, 1999. 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, 2000 are not necessarily indicative of the results which may be
expected for the entire year.
2. Principles of Consolidation
The consolidated condensed 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
condensed financial statements.
3. Effect of Recent Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative Instruments and Hedging Activities," which requires entities to
recognize all derivatives in their financial statements as either assets or
liabilities measured at fair value. SFAS No. 133 also specifies new methods of
accounting for hedging transactions, prescribes the items and transactions that
may be hedged, and specifies detailed criteria to be met to qualify for hedge
accounting.
<PAGE>
River Valley Bancorp
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the six month periods ended June 30, 2000 and 1999
3. Effect of Recent Accounting Pronouncements (continued)
The definition of a derivative financial instrument is complex, but in general,
it is an instrument with one or more underlyings, such as an interest rate or
foreign exchange rate, that is applied to a notional amount, such as an amount
of currency, to determine the settlement amount(s). It generally requires no
significant initial investment and can be settled net or by delivery of an asset
that is readily convertible to cash. SFAS No. 133 applies to derivatives
embedded in other contracts, unless the underlying of the embedded derivative is
clearly and closely related to the host contract.
SFAS No.133, as amended by SFAS No. 137, is effective for fiscal years beginning
after June 15, 2000 with early adoption permissible. The Corporation elected to
adopt SFAS No. 133 on April 1, 2000. As permitted by SFAS No. 133, all
securities classified as held to maturity were transferred to
available-for-sale. The adoption of this statement did not have a significant
impact on the Corporation's financial statements.
4. Earnings Per Share
Earnings per share have been computed based upon the weighted average common
shares outstanding. Unallocated and not committed to be released Employee Stock
Ownership Plan shares have been excluded from the computation of average common
shares outstanding. For the six and three months ended June 30, 2000, weighted
average shares outstanding for basic and diluted earnings per share were 866,000
and 861,096, respectively. For the six and three months ended June 30, 1999,
weighted average shares outstanding for basic and diluted earnings per share
were 1,063,641 and 1,029,445, respectively.
5. Reclassifications
Certain reclassifications have been made to the 1999 consolidated condensed
financial statements to conform to the June 30, 2000 presentation.
<PAGE>
River Valley Bancorp
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
For the six and three month periods ended June 30, 2000 and 1999
Forward-Looking Statements
In addition to historical information contained herein, the following discussion
contains forward-looking statements that involve risks and uncertainties.
Economic circumstances, the Corporation's operations and the Corporation's
actual results could differ significantly from those discussed in the
forward-looking statements. Some of the factors that could cause or contribute
to such differences are discussed herein but also include changes in the economy
and interest rates in the nation and the Corporation's market area generally.
Some of the forward-looking statements included herein are the statements
regarding management's determination of the amount and adequacy of the allowance
for losses on loans, the remodeling of a branch office for purposes of
facilitating all departments and employees from another branch which will be
closed and the effect of certain recent accounting pronouncements.
Discussion of Financial Condition Changes from December 31, 1999 to June 30,
2000
At June 30, 2000, the Corporation's consolidated assets totaled $147.1 million,
an increase of $8.4 million, or 6.1%, from the December 31, 1999 total. The
increase in assets resulted primarily from an increase in loans receivable of
$13.6 million which was funded by an increase in deposits of $7.8 million and a
decline in liquid assets and investment securities.
Liquid assets (i.e., cash, federal funds sold and interest-earning deposits)
decreased by $1.7 million from December 31, 1999 levels to a total of $6.4
million at June 30, 2000. Investment securities decreased by $3.7 million, or
39.2%, to a total of $5.7 million at June 30, 2000, due primarily to repayments
and maturities on mortgage-backed and related securities.
Loans receivable totaled $128.7 million at June 30, 2000, an increase of $13.6
million, or 11.8%,over the $115.1 million total at December 31, 1999. The
increase resulted primarily from originations of $34.3 million, which were
offset by sales of $ 1.4 million and by loan principal repayments during the
period of $19.2 million.
The Corporation's consolidated allowance for loan losses totaled $1.5 million at
both June 30, 2000 and December 31, 1999, which represented 1.2% and 1.3% of
total loans at each of those respective dates. Nonperforming loans (defined as
loans delinquent greater than 90 days and loans on nonaccrual status) totaled
$693,000 and $859,000 at June 30, 2000 and December 31, 1999,respectively.
Management believes that its allowance for loan losses at June 30, 2000, was
adequate based upon the available facts and circumstances, however 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.
<PAGE>
River Valley Bancorp
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
For the six and three month periods ended June 30, 2000 and 1999
Discussion of Financial Condition Changes from December 31, 1999 to June 30,
2000 (continued)
Deposits totaled $122.0 million at June 30, 2000, an increase of $7.8 million,
or 6.8%, compared to the $114.2 million total at December 31, 1999. During the
six month period ended June 30, 2000, growth in deposits was attributable to the
Bank's participation in the State of Indiana's "Treasurers Agricultural Loan
Program,"providing for $4.6 million in one year certificates of deposit, which
were used to fund a corresponding agricultural loan at a spread to the Bank of
2.50%. The remaining $3.2 million of deposit growth resulted from management's
continuing efforts to increase deposits through marketing and interest-rate
strategies.
Advances from the Federal Home Loan Bank totaled $6.0 million at June 30, 2000,
the same as at December 31, 1999. Continued growth in loan demand will require
the Bank to seek further funding from the Federal Home Loan Bank. Deposit growth
will also remain a high priority.
Stockholders' equity totaled $17.0 million at June 30, 2000, an increase of
$153,000, or .9%, from the $16.9 million total at December 31, 1999. The
increase resulted primarily from the Corporation's earnings offset by cash
dividends and amortization of expense related to stock benefit plans.
The Bank is required to maintain minimum regulatory capital pursuant to federal
regulations. At June 30, 2000, the Bank's regulatory capital exceeded all
applicable regulatory capital requirements.
Comparison of Results of Operations for the Six Months Ended June 30, 2000 and
1999
General
The Corporation's net income for the six months ended June 30, 2000, totaled
$787,000, an increase of $247,000, or 45.7%, from the $540,000 of net earnings
reported in the comparable 1999 period. The increase in earnings in the 2000
period was primarily attributable to an increase in other income of $115,000 and
an increase in net interest income of $ 137,000.
Net Interest Income
Total interest income for the six months ended June 30, 2000 amounted to $5.3
million, an increase of $327,000, or 6.7%, from the comparable period in 1999,
reflecting the effects of an increase in average interest-earning assets
outstanding, coupled with an increase in the yield year-to-year. Interest income
on loans totaled $4.8 million for the six months ended June 30, 2000, an
increase of $449,000, or 10.4%, over the comparable 1999 period. The increase
resulted primarily from an increase in the volume of average interest earning
assets outstanding year-to-year.
<PAGE>
River Valley Bancorp
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
For the six and three month periods ended June 30, 2000 and 1999
Comparison of Results of Operations for the Six Months Ended June 30, 2000 and
1999 (continued)
Net Interest Income (continued)
Interest expense on deposits increased by $63,000, or 2.7%, to a total of $2.4
million for the six month period ended June 30, 2000, due primarily to an
increase in the average cost of deposits, and by an increase in the average
balance of deposits outstanding, year-to-year. Interest expense on borrowings
totaled $157,000 for the six months ended June 30, 2000, an increase of
$127,000, from the comparable period in 1999. The increase resulted from a
increase in average borrowings outstanding year-to-year.
As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $137,000 for the six months ended June 30,
2000, as compared to the same period in 1999. This increase was due to the
increase in volume of average interest earning assets offset in part by the
increase in average interest bearing liabilities. The interest rate spread
amounted to approximately 3.6% for the 2000 and the 1999 periods. The net
interest margin totaled approximately 3.9% in the 2000 and 1999 periods.
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 collectability of the Bank's loan portfolio. As
a result of such analysis, management recorded a $57,000 provision for losses on
loans for the six months ended June 30, 2000, compared to the $100,000 amount
recorded in the 1999 period. While management believes that the allowance for
losses on loans is adequate at June 30, 2000, based upon the available facts and
circumstances, there can be no assurance that the loan loss allowance will be
adequate to cover losses on nonperforming assets in the future.
Other Income
Other income increased by $115,000, or 28.0%, for the six months ended June 30,
2000, as compared to the same period in 1999, due primarily to an increase of
$77,000 in total service charges and an increase of $42,000 in other operating
income comprised of the gain from the sale of office premises.
Other Expense
Other expense decreased by $93,000, or 4.8%, during the six months ended June
30, 2000, compared to the same period in 1999. This decrease resulted primarily
from cost containment efforts to control such expenses.
<PAGE>
River Valley Bancorp
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
For the six and three month periods ended June 30, 2000 and 1999
Other Considerations
The Corporation has entered into a contract for major renovation and expansion
of the 430 Clifty Drive branch office for the purpose of establishing that
branch as the main office for the Corporation and the Bank. This will allow the
closing and sale of the 303 Clifty Drive branch office. Management believes that
this anticipated move will result in both a favorable decrease in expenses and
provide the Corporation with the opportunity for increased growth.
Income Taxes
The provision for income taxes totaled $483,000 for the six months ended June
30, 2000, an increase of $141,000, or 41.2%, as compared to the same period in
1999. This increase resulted primarily from an increase in net income before
taxes of $388,000, or 44.0%. The effective tax rates amounted to 38.0% and 38.8%
for the six months ended June 30, 2000 and 1999, respectively.
Comparison of Results of Operations for the Three Months Ended June 30, 2000 and
1999
General
The Corporation's net earnings for the three months ended June 30, 2000, totaled
$406,000, an increase of $112,000, or 38.1%, from the $294,000 of net income
reported in the comparable 1999 period. The increase in earnings in the 2000
period was primarily attributable to an increase in net interest income of
$96,000 and an increase in other income of approximately $43,000.
Net Interest Income
Total interest income for the three months ended June 30, 2000 amounted to $2.6
million, an increase of $232,000, or 8.8%, from the comparable quarter in 1999,
reflecting the effects of an increase in average interest-earning assets
outstanding, coupled with an increase in the yield year-to-year. Interest income
on loans totaled $2.5 million for the three months ended June 30, 2000, an
increase of $339,000, or 15.9%, from the comparable 1999 quarter.
Interest expense on deposits increased by $88,000, or 7.8%, to a total of $1.2
million for the quarter ended June 30, 2000, due primarily to an increase in the
average cost of deposits, and an increase in the average balance of deposits
outstanding. Interest expense on borrowings totaled $74,000 for the three months
ended June 30, 2000, an increase of $48,000, or 184.6%, over the comparable
quarter in 1999. The increase resulted from an increase in average borrowings
outstanding from year-to-year.
<PAGE>
River Valley Bancorp
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
For the six and three month periods ended June 30, 2000 and 1999
Comparison of Results of Operations for the Three Months Ended June 30, 2000 and
1999 (continued)
Net Interest Income (continued)
As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $96,000, or 7.6%, for the three months ended
June 30, 2000, as compared to the same quarter in 1999. This increase was due to
the increase in volume of average interest earning assets offset in part by an
increase in average interest bearing liabilities. The interest rate spread
amounted to approximately 3.6 % for the 2000 and 1999 quarters. The net interest
margin totaled approximately 3.9% for the 2000 and 1999 quarters.
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 $44,000 provision for losses on
loans for the three months ended June 30, 2000, compared to the $40,000 amount
recorded in the 1999 period. While management believes that the allowance for
losses on loans is adequate at June 30, 2000, based upon the available facts and
circumstances, there can be no assurance that the loan loss allowance will be
adequate to cover losses on nonperforming assets in the future.
Other Income
Other income increased by $43,000, or 20.9%, for the three months ended June 30,
2000, as compared to the same period in 1999, due primarily to a $ 12,000, or
6.9%, increase in service fees and charges coupled with a increase of $19,000 in
gain on sale of loans.
Other Expense
Other expense decreased by $32,000, or 3.4 %, during the three months ended
June 30, 2000, compared to the same period in 1999. This decrease resulted
primarily from conscientious monitoring of all expenditures. Management's goal
is to be cost effective in all expentitures.
Income Taxes
The provision for income taxes totaled $235,000 for the three months ended June
30, 2000, an increase of $55,000, or 30.6%, as compared to the same period in
1999. This increase resulted primarily from an increase in net income before
taxes of $167,000, or 35.2%. The effective tax rates amounted to 36.7% and 38.0%
for the three months ended June 30, 2000 and 1999, respectively.
<PAGE>
River Valley Bancorp
PART II
ITEM 1. Legal Proceedings
None.
ITEM 2. Changes in Securities and Use of Proceeds
None.
ITEM 3. Defaults Upon Senior Securities
Not applicable.
ITEM 4. Submission of Matters to a Vote of Security Holders
On April 19, 2000, the Annual Meeting of the Corporation's Stockholders
was held. Two Directors were elected to terms expiring in 2002 by the
following votes:
Robert W. Anger For: 749,426 Withheld: 47,022
Matthew P. Forrester For: 787,775 Withheld: 8,673
The other Directors continuing in office are Jonnie L. Davis, Michael
J. Hensley, Earl W. Johann and Fred W. Koehler.
ITEM 5. Other Information
None.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27: Financial Data Schedule for the six month period ended June
30, 2000.
(b) Reports on Form 8-K:
On May 23, 2000, the Corporation filed a Report on Form 8-K, as amended
by the Report on Form 8-K/A filed on May 31, 2000, disclosing the
Corporation's change in auditors.
<PAGE>
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 thereunto duly authorized.
Date: August 14, 2000 By: /s/Matthew P. Forrester
---------------------------
Matthew P. Forrester
Director & President
Date: August 14, 2000 By: /s/Larry C. Fouse
---------------------------
Larry C. Fouse
Chief Financial Officer
