SHELBYVILLE, Ind., Feb. 4 /PRNewswire-FirstCall/ -- Blue River Bancshares, Inc. (Pink Sheets: BRBI) today announced that a quarterly dividend of $.03 per share was declared by the Board of Directors, payable March 1, 2008, to shareholders of record as of the close of business on February 15, 2008. This is the sixth consecutive quarterly dividend increase since the company began its dividend program.
Blue River also announced that its wholly owned subsidiary, SCB Bank, completed the previously announced sale of its Paramount Bank division in Lexington, Kentucky, to PBI Bank, Inc. The sale was effective as of the close of business February 1, 2008 and resulted in SCB Bank receiving a premium of $5,000,000 from PBI Bank. Under the terms of the Branch Purchase and Assumption Agreement, dated October 23, 2008, as amended December 18, 2007, PBI Bank assumed substantially all of the assets and liabilities of Paramount Bank. SCB Bank retained approximately $12,500,000 of loans and $12,500,000 of deposit accounts. As a result of this sale, SCB Bank will eliminate all of its core deposit intangible and goodwill, totaling approximately $3.4 million, which was attributable to the Paramount Bank division. Further, as a result of this transaction, Blue River will have no goodwill on its balance sheet.
Blue River currently has approximately 103,000 shares remaining to be repurchased, under its previously announced stock repurchase program.
Russell Breeden, III, Chairman, CEO and President of Blue River commented, "We are pleased to be able to increase the dividend, again this quarter. This action, along with the stock repurchase program, continues to reflect the confidence your Board of Directors has in the future of Blue River Bancshares."
Mr. Breeden also added, "Although we will miss our colleagues, clients and friends in Lexington, the sale of the office is financially very attractive for our shareholders. Our current plans are to enhance the value of SCB Bank, continue our stock repurchase program and to actively analyze potential investment opportunities in banks or thrifts, with a focus on Indiana based institutions."
Blue River Bancshares, Inc. is the holding company for SCB Bank which does business in the Shelbyville, Indiana market under the name Shelby County Bank, a division of SCB Bank.
Certain matters in this news release constitute forward-looking statements. Forward-looking statements can be identified by the fact that they include words like "believe," "expect," "anticipate," "estimate," and "intend," or future or conditional verbs such as "will," "would," "should," "could," or "may." These forward-looking statements relate to, among other things, expectations of the business environment in which Blue River operates, projections of future performance, perceived opportunities in the market and potential future credit experience.
These forward-looking statements are based upon the current beliefs and expectations of Blue River's management and are inherently subject to significant business, economic, and competitive uncertainties and contingencies, many of which are outside of Blue River's control. Blue River's actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements due to a wide range of factors, including, but not limited to, the general business environment, interest rates, the economy, competitive conditions between banks and non-bank financial services providers, regulatory changes, other factors that may be subject to circumstances beyond Blue River's control.
Blue River undertakes no obligation to revise these statements following the date of this press release.
