White River Capital, Inc. Announces Results for the First Quarter 2008

Business Wire, April 29, 2008

* Net Income for the First Quarter of 2008 Totaled $3.7 million

* Book Value per Share $29.60; Tangible Book Value per Share $20.67

INDIANAPOLIS -- White River Capital, Inc. (AMEX: RVR) ("White River") today announced net income for the first quarter 2008 was $3.7 million ($0.95 per diluted share) compared to fourth quarter 2007 net income of $1.6 million ($0.42 per diluted share) and first quarter 2007 net income of $7.0 million ($1.78 per diluted share). The results for the first quarter of 2008 are due to the following:

* $2.0 million of earnings from operations contributed by the Coastal Credit LLC ("Coastal Credit") subsidiary,

* $4.5 million of earnings from operations contributed by the Union Acceptance Company LLC ("UAC") subsidiary,

* $0.6 million of operating expenses at the holding company, and an income tax expense of $2.1 million.

Mark Ruh, President and Chief Operating Officer, stated, "White River had an excellent first quarter in a difficult economic environment. Delinquency and charge-off trends were favorable for both the Coastal Credit and UAC portfolios. Coastal Credit's net charge offs decreased during the first quarter while 30 day delinquency continued to decrease to 3.8% at March 31, 2008 compared to 4.1% at December 31, 2007 and 4.3% at September 30, 2007. Coastal Credit's allowance for loan losses to total loans was 7.02% on March 31, 2008 compared to 7.04% on December 31, 2007 and 6.28% on September 30, 2007. While we remain cautious, we believe Coastal Credit is well reserved for the current economic environment."

Mr. Ruh continued, "The UAC portfolio continues to liquidate as expected and net portfolio recoveries have continued for fourteen straight months. The $7.3 million balance of the UAC portfolio remaining on March 31 represents only 0.1% of $5.66 billion in originally securitized receivables and we project less than $1 million of receivables remaining by December 31, 2008."

Martin Szumski, Chief Financial Officer, commented, "White River now has equity of $114.5 million and tangible equity is now $80.0 million. These values translate into a book value per share of $29.60 and a tangible book value per share of $20.67. Our tangible equity is now 63.2% of tangible assets. Our reserve coverage, strong capital position and $26.8 million of borrowing availability position us to take advantage of growth opportunities as they arise."

ACCRETION AND OTHER INTEREST

Accretion and other interest decreased to $3.6 million compared to $10.3 million for the first quarters of 2008 and 2007, respectively. Accretion and other interest decreased during these periods due to the reduction of UAC's recognition of accretion income associated with its shrinking portfolio.

PROVISION FOR ESTIMATED CREDIT LOSSES

The provision for estimated credit losses was $1.2 million compared to $0.6 million for the quarters ended March 31, 2008 and 2007, respectively.

The following table documents the quarterly provision and allowance for loan losses at Coastal Credit:

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This provision for estimated credit losses at Coastal Credit reflects management's assessment of the reserves necessary for the current credit environment given the decrease in net charge-offs during the quarter.

The recovery at UAC for the first quarter of 2008 was $0.4 million compared to a recovery for the first quarter of 2007 of $0.8 million, respectively. The decrease in recovery reflects the shrinking UAC portfolio and the reserves necessary during the portfolio liquidation.

INCOME TAX EXPENSE

White River recognized a $2.1 million income tax expense during the first quarter 2008 compared to a $4.0 million income tax expense during the first quarter 2007.

Prior to the fourth quarter 2006, White River calculated the deferred tax asset valuation allowance based on the estimated taxable income for the future five-year period and made quarterly adjustments as required. These adjustments were reflected as income tax benefits. However, during the fourth quarter 2006, in accordance with Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes, White River determined it was "more likely than not" that it would utilize the majority of its deferred tax asset as a result of the successful integration of Coastal Credit, the strong performance of the liquidating UAC portfolio and the sound cash position of the holding company. Thus, the majority of the deferred tax asset valuation allowance was removed during the fourth quarter 2006 and a $37.8 million income tax benefit was realized. There remains a $1.1 million valuation allowance on the deferred tax asset primarily related to state tax net operating losses. Because of this recognition of the majority of the deferred tax asset, beginning with the first quarter 2007 and in the future when pre-tax income is generated, income tax expense will be recognized on White River's statement of operations.

CREDIT QUALITY

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