EXHIBIT 99.1
Blue River Bancshares, Inc. Announces 2nd Quarter Earnings (Unaudited) and
Commencement of a Quarterly Dividend.
July 28, 2006
Blue River Bancshares, Inc. (BRBI) today reported consolidated net income of
$112,000 for the quarter ended June 30, 2006. This net income compares to
consolidated net income for the same period of 2005 of $63,000. The 2005 results
included no federal income tax expense and the 2006 results included a federal
and state tax expense of $67,000. Fully diluted earnings per share were $.03 for
the quarter ended June 30, 2006 and $.02 for the same period in 2005. Weighted
average outstanding shares (fully diluted) were 3,516,126, for the quarter ended
June 30, 2006, compared to 3,468,985 shares for the same quarter of 2005.
In July, a quarterly dividend of $.015 per share was declared by the Board of
Directors, payable September 1, 2006, to shareholders of record August 15, 2006.
For purposes of broker trading, the ex-distribution date of the cash dividend
will be determined by NASDAQ.
Net interest income before loan loss provision for the three months ended June
30, 2006 was $2,010,000 as compared to $1,705,000 for the same period of 2005.
Non-interest income was $210,000 for the quarter ended June 30, 2006 compared to
$247,000 for the same period of 2005. During the quarter ended June 30, 2006
non-interest income included a net loss of $83,000, primarily the result of the
liquidation and total write off of our investment in "The Bank's Insurance
Agency", a three year old joint venture which sold various insurance products
and was formed by several Indiana community banks.
The loan loss provision was $215,000 for the three months ended June 30, 2006
versus $53,000 for the quarter ended June 30, 2005. This increase relates to the
increase in total loan balances, net-charge offs, and an increase in specific
allocations for potential problem loans when comparing the two periods.
Non-interest expense decreased to $1,826,000 for the quarter ended June 30, 2006
as compared to $1,836,000 for the quarter ended June 30, 2005.
Russell Breeden, III, Chairman, CEO and President of Blue River commented, "Even
though this year's second quarter pretax income was almost three times last
years and our net interest income increased almost 18% over the comparable 2005
quarter, this quarter was a bit disappointing to us. Our loan charge offs at
Paramount were above normal and the liquidation of the insurance agency, even
though it's a nonrecurring event, detracted from an otherwise strong quarter."
Mr. Breeden also said "We continue to focus on our goal of achieving a 10-12%
pretax return on shareholder's equity during 2006 or 2007, by concentrating on
the growth of quality loans, while we lower our net non interest expense.
Further we are pleased to announce the payment of a quarterly cash dividend. It
is somewhat modest, but reflects our optimism about your company's future."
Blue River Bancshares, Inc. is the holding company for Shelby County Bank,
Shelbyville, Indiana and Paramount Bank, Lexington, Kentucky.
Certain matters in this news release constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
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 and any other risks
detailed in Blue River's reports filed with the Securities and Exchange
Commission.
Blue River undertakes no obligation to revise these statements following the
date of this press release.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(UNAUDITED)
QUARTERS ENDED JUNE 30
2006 2005
GROSS LOANS $173,605,000 $155,151,000
TOTAL ASSETS $214,296,000 $210,915,000
DEPOSITS $175,439,000 $169,816,000
SHAREHOLDERS' EQUITY $ 17,464,000 $ 16,568,000
BOOK VALUE PER SHARE $ 4.98 $ 4.72
NET INTEREST INCOME $ 2,010,000 $ 1,705,000
PROVISION FOR LOAN LOSS $ 215,000 $ 53,000
NON-INTEREST INCOME $ 210,000 $ 247,000
NON-INTEREST EXPENSE $ 1,826,000 $ 1,836,000
INCOME TAX EXPENSE $ 67,000 $ -0-
NET INCOME $ 112,000 $ 63,000
BASIC & DILUTIVE EARNINGS PER SHARE $ .03 $ .02