SHELBYVILLE, Ind., March 7 /PRNewswire-FirstCall/ -- Blue River Bancshares, Inc. (Pink Sheets: BRBI) today announced a 500,000 increase in the number of common shares authorized for repurchase under the Company's Stock Repurchase Program. This new authorization increases the capacity of the Company to repurchase shares under the Stock Repurchase Program to an aggregate of 603,000 shares. Under the Program, shares will be repurchased from time to time in public or private transactions at the discretion of management. Any shareholder who wishes to sell their stock to the Company should contact Mr. Russell Breeden III at (317) 681-1233.

Also BRBI reported consolidated net income of $837,000 for the year ended December 31, 2007. This net income compares to a consolidated net income of $599,000 for the same period of 2006. Basic earnings per share were $0.24 for the year ended December 31, 2007, compared to $0.17 per share for the year ended December 31, 2006. Weighted average outstanding shares (basic) for 2007 were 3,460,701 as compared to 3,507,150 for 2006.

Consolidated net loss for the three month period ended December 31, 2007 was $298,000 or $0.09 per share, as compared to net income, for the same three month period ended December 31, 2006, of $71,000 or $0.02 per share. The weighted average outstanding shares were 3,393,192 for the three month period ended December 31, 2007 and 3,507,150 during the same three month period in 2006. A $514,000 contribution to the allowance for loan loss was the primary factor contributing to the loss in the fourth quarter of 2007.

Net interest income before loan loss provision for the year ended December 31, 2007 was $8,522,000 as compared to $8,156,000 for the same period in 2006. Non-interest income for the year ended December 31, 2007 was $2,162,000 as compared to $929,000 for the same period in 2006. During the year ended December 31, 2007, BRBI had a gain of $1,688,000 on sale of the Paramount charter and incurred $806,000 in related expenses of the charter sale, compared to a net loss on sale of other real estate, securities and other assets of $225,000 in 2006.

The provision for loan losses or loss on other assets for the year ended December 31, 2007, was $1,453,000 versus $858,000 for the year ended December 31, 2006. This increase was primarily the result of increased expense to the allowance for loan loss related to changes in the real estate market.

Non-interest expense, increased to $7,847,000 for the year ended December 31, 2007 from $7,262,000 for the same period of 2006. This increase was primarily the result of expenses related to the sale of the charter of Paramount Bank and the subsequent sale of the Lexington, Kentucky branch of SCB Bank.

Russell Breeden, III, Chairman, CEO and President of Blue River commented, "As a result of the Paramount charter sale and branch sale, the board decided to repurchase a large percentage of our outstanding shares. We believe these transactions have given BRBI extra cash at a very fortuitous time, with bank stock prices depressed and fixed income spreads wide, by historical standards. We believe a prudent increase in the investment portfolio at SCB Bank and strategic equity investments at Blue River will compliment the Stock Repurchase Program and enhance the long term value of Blue River."

Mr. Breeden also said "We remain focused on credit quality at SCB Bank. Identifying problems and being proactive, in addition to constantly reviewing our underwriting standards and loan pricing, will allow us to properly manage our loan portfolio. We believe we can continue to increase the net interest income of the bank, even though the net interest margin may decline, as a result of a larger investment portfolio, which will have a smaller margin than our loan portfolio."

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 the Company 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 the Company's management and are inherently subject to significant business, economic, and competitive uncertainties and contingencies, many of which are outside of the Company's control. The Company'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 the Company's control.

Blue River undertakes no obligation to revise these statements following the date of this press release.




                      CONSOLIDATED FINANCIAL HIGHLIGHTS
                                 (UNAUDITED)

                           YEARS ENDED DECEMBER 31

                                      2007                            2006

    GROSS LOANS                  $219,548,000                     $183,772,000
    TOTAL ASSETS                 $253,920,000                     $163,992,000
    DEPOSITS                     $207,080,000                     $184,113,000
    SHAREHOLDERS' EQUITY         $ 17,837,000                     $ 17,703,000
    BOOK VALUE PER SHARE         $5.31                            $5.05

    NET INTEREST INCOME          $  8,522,000                     $  8,156,000
    PROVISION FOR LOAN LOSS      $  1,453,000                     $    858,000
    NON INTEREST INCOME          $  2,162,000                     $    929,000
    NON INTEREST EXPENSE         $  7,847,000                     $  7,262,000
    INCOME TAX EXPENSE           $    547,000                     $    366,000
    NET INCOME                   $    837,000                     $    599,000
    BASIC EARNINGS PER SHARE     $ .24                            $ .17

Note that all results presented include the discontinued operation of the Paramount branch which was sold in early 2008.

SOURCE Blue River Bancshares, Inc.