SHELBYVILLE, Ind., March 9 /PRNewswire-FirstCall/ -- Blue River Bancshares, Inc. (BULLETIN BOARD: BRBI.OB) today announced that it received $5,000,000 in exchange for the issuance of 5,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the "Series A Preferred Stock") and a Warrant to purchase 250 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the "Series B Preferred Stock") to the U. S. Department of the Treasury (the "Treasury"). The Treasury immediately exercised the Warrant to purchase the Series B Preferred Stock in a cashless exercise.
The Series A Preferred Stock pays cumulative dividends at a rate of 5% per year for the first five years and 9% per year thereafter. The Series B Preferred Stock pays cumulative dividends at a rate of 9% per year. Neither the Series A Preferred Stock nor the Series B Preferred Stock is convertible into common stock by the Treasury. We estimate that our aggregate annual dividend payment to the Treasury will be $272,500 during the first five years and $472,500 thereafter. Pursuant to the terms of the recently enacted American Recovery and Reinvestment Act of 2009, Blue River may, upon consultation with its primary federal regulator, repay the amount received for the Preferred Stock at any time, without regard to whether Blue River has replaced such funds from any source or to any waiting period.
Russell Breeden, III, Chairman, CEO and President of Blue River commented, "We are pleased to be able to participate in the TARP Capital Purchase Program. Our loan demand has remained strong and we believe the current environment will allow us to increase deposits and add high quality loans to our loan portfolio. We are optimistic that we can deploy this capital in a manner which adds value to our shareholders and meets the Treasury's objectives for the Capital Purchase Program."
Mr. Breeden added, "We understand there are differing public opinions regarding participation in this program, but our analysis indicates it to be, on balance, a favorable method of obtaining capital for our continued growth."
Blue River Bancshares, Inc. is the holding company for SCB Bank which does business in the Shelbyville, Indiana market under the name of 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.
