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

White River Capital, Inc. (NYSE Amex: RVR | Quote | Chart | News | PowerRating) ("White River") today announced net income for the first quarter 2009 was $1.3 million, or $0.31 per diluted share, compared to first quarter 2008 net income of $3.7 million, or $0.94 per diluted share. The net income results for the first quarter of 2009 are due to the following:

-- $2.3 million of earnings from operations contributed by the Coastal Credit LLC ("Coastal Credit") subsidiary,

-- $0.4 million of earnings from operations contributed by the Union Acceptance Company LLC ("UAC") subsidiary,

-- $0.6 million of operating and audit expenses at the holding company, and an income tax expense of $0.8 million.

Mark Ruh, President and Chief Operating Officer, stated, "During the first quarter, White River continued its stable performance in an ongoing difficult economic environment. The performance of our Coastal Credit subsidiary was excellent considering current economic conditions."

Mr. Ruh continued, "Coastal Credit took advantage of a favorable lending environment in its market niche to increase its portfolio of finance receivables to $106.1 million on March 31, 2009 from $101.5 million on December 31, 2008 while continuing to maintain its conservative underwriting standards. On a seasonally adjusted basis, delinquency and charge-off trends were solid for the Coastal Credit portfolio. Coastal Credit's net charge offs decreased during the first quarter and 30+ day delinquency decreased to 3.9% at March 31, 2009 compared to 4.5% at December 31, 2008 and 4.4% at September 30, 2008. Coastal Credit's allowance for loan losses to total loans was 7.24% at March 31, 2009 compared to 7.45% at December 31, 2008."

Martin Szumski, Chief Financial Officer, commented, "White River now has equity of $97.3 million and this equity value translates into a book value per share of $23.97. On March 31, 2009, UAC portfolio receivables were only $0.5 million. While the UAC subsidiary was a significant contributor to earnings in 2008, its earnings contribution will be immaterial beyond the first quarter 2009 due to the small amount of remaining receivables."

PROVISION FOR ESTIMATED CREDIT LOSSES

The consolidated provision for estimated credit losses was $1.8 million compared to $1.2 million for the quarters ended March 31, 2009 and 2008, respectively.

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

Quarter    Provision       Allowance for Loan       Net Charge-offs as a
           (in millions)   Losses as a Percent of   Percent of Finance
                           Finance                  Receivables
                           Receivables              (annualized for 1st,
                                                    2nd and 3rd
                                                    quarters)
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%
2nd 2007   $1.7            5.84%                    6.15%
1st 2007   $1.4            5.79%                    5.86%

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 first quarter of 2009 was approximately $114,000 compared to a recovery for the first quarter of 2008 of approximately $412,000. This change in recovery reflects the shrinking UAC portfolio and the reduction in reserves necessary during the portfolio 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)
                                     March 31,                            December 31,
                                     2009                                 2008
                                                  $              %           $         %
Finance receivables - gross balance  $            109,055                 $  104,599
Delinquencies:
30-59 days                           $            1,024          0.9 %    $  1,452     1.4 %
60-89 days                                        964            0.9 %       1,269     1.2 %
90+ days                                          2,294          2.1 %       1,943     1.9 %
Total delinquencies                  $            4,282          3.9 %    $  4,664     4.5 %

Coastal Credit LLC
Allowance for Loan Losses - Finance Receivables
(in thousands except percentages)
                                                           Quarters Ended March 31,
                                                           2009              2008
Balance at beginning of period                             $   7,560         $   6,810
Charge-offs, net of recoveries                                 (1,801  )         (1,609 )
Provision for estimated credit losses                          1,926             1,609
Balance at the end of the period                           $   7,685         $   6,810
Net charge-offs                                            $   1,801         $   1,609
Finance receivables, net of unearned finance charges       $   106,135       $   96,945
Allowance for loan losses as a percent of finance              7.24    %         7.02   %
receivables,
net of unearned finance charges
Annualized net charge-offs as a percent of finance             6.79    %         6.64   %
receivables,
net of unearned finance charges
Allowance for loan losses as a percent of annualized net       106.7   %         105.8  %
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 21 states - Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Hawaii, Louisiana, Maryland, Mississippi, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia and Washington - through its 17 branch locations. The Coastal Credit receivables portfolio, net of unearned finance charges, was $106.1 million at March 31, 2009.

Union Acceptance Company LLC is a specialized auto finance company, based in Indianapolis, Indiana, which holds and oversees its portfolio of $0.5 million in non-prime auto receivables, as of March 31, 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 September 30, 2008.

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                                                  March 31, 2009      December 31, 2008
Cash and cash equivalents                               $       6,279       $        6,403
Finance receivables--net                                        87,229               84,187
Deferred tax assets--net                                        46,255               46,946
Other assets                                                    1,377                1,292
TOTAL                                                   $       141,140     $        138,828
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Line of credit                                          $       42,000      $        40,500
Accrued interest                                                120                  165
Creditor notes payable                                          53                   128
Other payables and accrued expenses                             1,647                1,949
Total liabilities                                               43,820               42,742
SHAREHOLDERS' EQUITY:
Preferred Stock, without par value, authorized
3,000,000 shares; none issued and outstanding                   -                    -
Common Stock, without par value, authorized
20,000,000 shares; 4,060,586 and 4,022,853
issued and outstanding at March 31, 2009 and
December 31, 2008, respectively                                 182,544              182,462
Accumulated other comprehensive income, net of taxes            88                   210
Accumulated deficit                                             (85,312)             (86,586)
Total shareholders' equity                                      97,320               96,086
TOTAL                                                   $       141,140     $        138,828

WHITE RIVER CAPITAL, INC.
Book Value per Share and Equity Ratios
(Unaudited)
(in thousands except share related values and percents)
                              March 31, 2009        December 31, 2008
Total shareholders' equity    $    97,320           $     96,086
Assets                        $    141,140          $     138,828
Shares outstanding                 4,060,586              4,022,853
Book value per share          $    23.97            $     23.89
Equity/ assets                     69.0      %            69.2      %

WHITE RIVER CAPITAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share and share amounts)
                                                                  Quarters Ended March 31,
                                                                        2009            2008
INTEREST:
Interest on receivables                                           $     7,457         $ 8,070
Accretion and other interest                                            204             3,565
Total interest income                                                   7,661           11,635
Interest expense                                                        (381      )     (832      )
Net interest margin                                                     7,280           10,803
Provision for estimated credit losses                                   (1,812    )     (1,197    )
Net interest margin after provision for estimated credit losses         5,468           9,606
OTHER REVENUES (EXPENSES):
Salaries and benefits                                                   (2,119    )     (2,294    )
Third party servicing expense                                           (14       )     (114      )
Other operating expenses                                                (1,404    )     (1,411    )
Change in fair market valuation of creditor notes payable               2               (46       )
Gain from deficiency account sale                                       162             159
Other expense                                                           (51       )     (34       )
Total other revenues (expenses)                                         (3,424    )     (3,740    )
INCOME BEFORE INCOME TAXES                                              2,044           5,866
INCOME TAX EXPENSE                                                      (770      )     (2,142    )
NET INCOME                                                        $     1,274         $ 3,724
NET INCOME PER COMMON SHARE (BASIC)                               $     0.31          $ 0.96
NET INCOME PER COMMON SHARE (DILUTED)                             $     0.31          $ 0.94
BASIC WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING                                            4,046,568       3,863,507
DILUTED WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING                                            4,050,060       3,942,503

SOURCE: White River Capital, Inc.

White River Capital, Inc. 
Mark R. Ruh, 317-806-2166 x 6468 
President & Chief Operating Officer 
or 
Martin J. Szumski, 858-759-6057 
Chief Financial Officer