November 20, 2009 (FinancialWire) — River Valley Bancorp (NASDAQ: RIVR), an Indiana holding company for River Valley Financial Bank, said it has closed the sale of 5,000 shares of a new series of Fixed Rate Cumulative Perpetual preferred stock, series A for an aggregate subscription price of $5 million.

The shares were offered to a group of investors in a private placement. Fifty percent of the net proceeds of the offering will be contributed to the bank by the corporation.

The series A preferred stock is perpetual and non-voting, has a liquidation preference of $1,000, and pays dividends of 7.25% for the first five years and 9% thereafter, payable quarterly.

It is redeemable after the first five years for 100% of its liquidation preference plus declared and unpaid dividends.

River Valley Bancorp and River Valley Financial Bank operate from headquarters in Madison, Indiana. River Valley Bank has eight locations in Madison, Hanover, Charleston, Sellersburg and Floyds Knob, Indiana. Another office is located in Carrollton, Kentucky.

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