White River Capital, Inc. Announces Results for Third Quarter 2009

http://www.businesswire.com/news/home/20091029005252/en

* Net Income for the Third Quarter of 2009 Totaled $1.3 million
* Book Value per Share $24.50

RANCHO SANTA FE, Calif.--(Business Wire)--
White River Capital, Inc. (NYSE Amex: RVR) ("White River") today announced net
income and net operating income for the third quarter 2009 was $1.3 million, or
$0.31 per diluted share, compared to third quarter 2008 net operating income of
$1.5 million, or $0.37 per diluted share. The net income results for the third
quarter of 2009 are due to the following:

* $2.5 million of earnings from operations contributed by the Coastal Credit LLC
("Coastal Credit") subsidiary,
* $0.1 million loss from operations contributed by the Union Acceptance Company
LLC ("UAC") subsidiary,
* $0.5 million of operating expenses at the holding company and income tax
expense of $0.6 million.

Third quarter 2008 net operating income did not include a pre-tax, non-cash
write-off of $34.5 million White River recorded for the impairment of goodwill.
When this item is included, the net loss for the third quarter of 2008 was $20.5
million, or $5.20 per diluted share.

Martin Szumski, Chief Financial Officer, stated, "Once again, Coastal Credit,
White River`s main operating subsidiary, excelled in an economic environment
which shows signs of stability. Delinquency and charge-off trends were sound for
the Coastal Credit portfolio. Coastal Credit`s net charge offs increased during
the third quarter, and 30+ day delinquency remained flat at 3.9% at September
30, 2009 compared to 3.9% at June 30, 2009. Coastal Credit`s allowance for loan
losses was essentially flat with the allowance for loan losses to total loans at
7.27% at September 30, 2009 compared to 7.19% at June 30, 2009."

Mr. Szumski continued, "White River now has equity of $99.5 million and this
equity value translates into a book value per share of $24.50. On September 30,
2009, UAC portfolio receivables were only $0.1 million. While the UAC subsidiary
was a significant contributor to earnings in 2008, its earnings contribution for
this quarter and future quarters will be immaterial."

PROVISION FOR ESTIMATED CREDIT LOSSES

The consolidated provision for estimated credit losses was $2.2 million compared
to $2.1 million for the quarters ended September 30, 2009 and 2008,
respectively.

The following table documents the quarterly provision, allowance for loan losses
and net charge offs at Coastal Credit for the third quarter 2007 through the
third quarter 2009:

Quarter Provision Allowance for Loan Net Charge-offs as a
(in millions) Losses as a Percent of Percent of Finance Receivables
Finance Receivables (annualized for 1st, 2nd and 3rd quarters)
3rd 2009 $2.2 7.27% 7.02%
2nd 2009 $2.1 7.19% 6.95%
1st 2009 $1.9 7.24% 6.79%
4th 2008 $2.8 7.45% 7.69%
3rd 2008 $2.3 7.23% 7.10%
2nd 2008 $1.9 7.02% 6.75%
1st 2008 $1.6 7.02% 6.64%
4th 2007 $3.2 7.04% 7.45%
3rd 2007 $2.0 6.28% 6.27%

This provision for estimated credit losses at Coastal Credit reflects
management`s assessment of the reserves necessary for the current credit
environment.

The recovery at UAC for the third quarter of 2009 was approximately $65,000
compared to a recovery for the third quarter of 2008 of approximately $198,000.
This change in recovery reflects the shrinking UAC portfolio and the recovery on
the portfolio during liquidation.

CREDIT QUALITY

The following tables set forth delinquency, charge-off and allowance levels for
the Coastal Credit portfolio:

Coastal Credit LLC
Delinquency Rates Experienced - Finance Receivables
(in thousands except percentages)

September 30, December 31,
2009 2008
$ % $ %

Finance receivables - gross balance $ 112,692 $ 104,599

Delinquencies:
30-59 days $ 1,357 1.2 % $ 1,452 1.4 %
60-89 days 1,070 0.9 % 1,269 1.2 %
90+ days 1,931 1.7 % 1,943 1.9 %
Total delinquencies $ 4,358 3.9 % $ 4,664 4.5 %

Coastal Credit LLC
Allowance for Loan Losses - Finance Receivables
(in thousands except percentages)

Quarters Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Balance at beginning of period $ 7,860 $ 6,935 $ 7,560 $ 6,810
Charge-offs, net of recoveries (2,099 ) (1,987 ) (5,799 ) (5,325 )
Provision for estimated credit losses 2,249 2,287 6,249 5,750

Balance at the end of the period $ 8,010 $ 7,235 $ 8,010 $ 7,235

Finance receivables, net of unearned finance charges $ 110,218 $ 100,041 $ 110,218 $ 100,041

Allowance for loan losses as a percent of finance 7.27 % 7.23 % 7.27 % 7.23 %
receivables, net of unearned finance charges

Annualized net charge-offs as a percent of finance 7.62 % 7.94 % 7.02 % 7.10 %
receivables, net of unearned finance charges

Allowance for loan losses as a percent of annualized 95.40 % 91.03 % 103.60 % 101.90 %
net charge-offs

ABOUT WHITE RIVER, COASTAL CREDIT AND UAC

Founded in 2004, White River is the holding company for Coastal Credit LLC and
Union Acceptance Company LLC.

Coastal Credit LLC is a specialized auto finance company, headquartered in
Virginia Beach, Virginia, engaged in acquiring sub-prime auto receivables from
both franchised and independent automobile dealers which have entered into
contracts with purchasers of typically used, but some new, cars and light
trucks. Coastal Credit then services the receivables it acquires. Coastal Credit
commenced operations in Virginia in 1987 and conducts business in 20 states -
California, Colorado, Delaware, Florida, Georgia, Hawaii, Louisiana, Maryland,
Mississippi, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania,
Tennessee, Texas, Utah, Virginia and Washington - through its 16 branch
locations. The Coastal Credit receivables portfolio, net of unearned finance
charges, was $110.2 million at September 30, 2009.

Union Acceptance Company LLC is a specialized auto finance company, based in
Indianapolis, Indiana, which holds and oversees its portfolio of $0.1 million in
non-prime auto receivables, as of September 30, 2009.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

Additional information about White River is available at White River`s web site
located at: www.WhiteRiverCap.com.

This site includes financial highlights, stock information, public filings with
the U.S. Securities and Exchange Commission (the "SEC"), and corporate
governance documents.

The SEC public filings available for review include but are not limited to:

* its Annual Report on Form 10-K for the year ended December 31, 2008,
* its Proxy Statement on Schedule 14A dated April 29, 2009, and
* its Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

White River`s public filings with the SEC can also be viewed on the SEC`s
website at: www.sec.gov.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking information about White
River that is intended to be covered by the safe harbor for "forward-looking
statements" provided by the Private Securities Litigation Reform Act of 1995.
Such information includes forward-looking statements above regarding the future
financial performance of Coastal Credit and UAC, and also White River's
prospects for future earnings, earnings volatility and the likelihood of
recognizing future value from its deferred tax assets. All statements other than
statements of historical fact are forward-looking statements. Such statements
involve inherent risks and uncertainties, many of which are difficult to predict
and are generally beyond the control of White River. White River cautions
readers that a number of important factors could cause actual results to differ
materially from those expressed in, implied or projected by, such
forward-looking statements. Risks and uncertainties include, but are not limited
to:

* losses and prepayments on our receivable portfolios;
* general economic, market, or business conditions;
* changes in interest rates, the cost of funds, and demand for our financial
services;
* changes in our competitive position;
* our ability to manage growth and integrate acquired businesses;
* the opportunities that may be presented to and pursued by us;
* competitive actions by other companies;
* changes in laws or regulations;
* changes in the policies of federal or state regulators and agencies.

If any of these risks or uncertainties materializes or if any of the assumptions
underlying such forward-looking statements proves to be incorrect, White River's
results could differ materially from those expressed in, implied or projected by
such forward-looking statements. White River assumes no obligation to update
such forward-looking statements.

WHITE RIVER CAPITAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

ASSETS September 30, 2009 December 31, 2008

Cash and cash equivalents $ 5,670 $ 6,403
Finance receivables-net 89,917 84,187
Deferred tax assets-net 45,296 46,946
Other assets 840 1,292

TOTAL $ 141,723 $ 138,828

LIABILITIES AND SHAREHOLDERS` EQUITY

LIABILITIES:
Line of credit $ 40,500 $ 40,500
Accrued interest 106 165
Creditor notes payable 22 128
Other payables and accrued expenses 1,549 1,949

Total liabilities 42,177 42,742

SHAREHOLDERS` EQUITY:
Preferred Stock, without par value, authorized - -
3,000,000 shares; none issued and outstanding
Common Stock, without par value, authorized 182,576 182,462
20,000,000 shares; 4,062,506 and 4,022,853
issued and outstanding at September 30, 2009 and
December 31, 2008, respectively
Accumulated other comprehensive income, net of taxes 12 210
Accumulated deficit (83,042 ) (86,586 )

Total shareholders` equity 99,546 96,086

TOTAL $ 141,723 $ 138,828

WHITE RIVER CAPITAL, INC.
Book Value per Share and Equity Ratios
(Unaudited)
(in thousands except share related values and percents)

September 30, 2009 December 31, 2008

Total shareholders` equity $ 99,546 $ 96,086
Assets $ 141,723 $ 138,828
Shares outstanding 4,062,506 4,022,853

Book value per share $ 24.50 $ 23.89
Equity/ assets 70.2 % 69.2 %

WHITE RIVER CAPITAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share and share amounts)

Quarters Ended September 30, Nine Months Ended September 30,
2009 2008 2009 2008
INTEREST:
Interest on receivables $ 7,898 $ 7,584 $ 23,085 $ 23,321
Accretion and other interest 42 931 341 6,261

Total interest income 7,940 8,515 23,426 29,582

Interest expense (375 ) (615 ) (1,145 ) (2,088 )

Net interest margin 7,565 7,900 22,281 27,494

Provision for estimated credit losses (2,184 ) (2,089 ) (5,998 ) (4,907 )

Net interest margin after provision for estimated credit losses 5,381 5,811 16,283 22,587

OTHER REVENUES (EXPENSES):
Salaries and benefits (2,003 ) (2,013 ) (6,074 ) (6,654 )
Third party servicing expense (3 ) (50 ) (29 ) (237 )
Other operating expenses (1,485 ) (1,264 ) (4,715 ) (4,955 )
Change in fair market valuation of creditor notes payable 43 (4 ) 89 (51 )
Gain (loss) from deficiency account sale 4 - 170 158
Other income (expense) (56 ) (87 ) (190 ) (214 )

Total other revenues (expenses) (3,500 ) (3,418 ) (10,749 ) (11,953 )

Goodwill Impairment - (34,536 ) - (34,536 )

INCOME (LOSS) BEFORE INCOME TAXES 1,881 (32,143 ) 5,534 (23,902 )

INCOME TAX BENEFIT (EXPENSE) (622 ) 11,671 (1,990 ) 8,649

NET INCOME (LOSS) $ 1,259 $ (20,472 ) $ 3,544 $ (15,253 )

NET INCOME (LOSS) PER COMMON SHARE (BASIC) $ 0.31 $ (5.29 ) $ 0.87 $ (3.94 )

NET INCOME (LOSS) PER COMMON SHARE (DILUTED) $ 0.31 $ (5.29 ) $ 0.87 $ (3.94 )

BASIC WEIGHTED AVERAGE NUMBER 4,062,129 3,872,610 4,056,751 3,869,429
OF COMMON SHARES OUTSTANDING

DILUTED WEIGHTED AVERAGE NUMBER 4,064,591 3,872,610 4,060,039 3,869,429
OF COMMON SHARES OUTSTANDING

White River Capital, Inc.
Martin J. Szumski, 858-997-6740
Chief Financial Officer

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