SHELBYVILLE, Ind., April 25 /PRNewswire-FirstCall/ -- Blue River Bancshares, Inc. (Pink Sheets: BRBI) today announced that a quarterly dividend of $.0325 per share was declared by the Board of Directors, payable June 1, 2008, to shareholders of record as of the close of business on May 15, 2008. This is the seventh consecutive quarterly dividend increase since the company began its dividend program.

Blue River also continues its previously announced stock repurchase program. Approximately 588,000 shares remain available to be purchased. Shareholders who desire to sell their Blue River stock are encouraged to call Mr. Russell Breeden, III at 317-681-1233.

In addition, Blue River reported consolidated net loss of $242,000 for the quarter ended March 31, 2008. This net loss compares to consolidated net income for the same period of 2007 of $179,000. Fully diluted earnings per share were ($.07) for the quarter ended March 31, 2008 and $.05 for the same period in 2007. Weighted average outstanding shares (fully diluted) were 3,355,457, as of March 31, 2008, compared to 3,507,150 shares at the end of the same quarter of 2007.

The net loss for the quarter ended March 31, 2008, included the premium on the sale of the Paramount branch of $5,000,000 less the associated tax expense of the sale of approximately $1,880,000. The net gain on sale was offset by expenses net of tax related to the sale of approximately $186,000, and the complete write off expense of goodwill and the core deposit intangible of $3,343,000 for a total net loss of $409,000. This net loss from the sale was partially offset by net income through February 1, 2008 from the discontinued operations of the Paramount branch of $44,000. The primary reason for the loss is the non deductibility, for tax purposes, of the goodwill and core deposit intangible. These two intangible assets were originated at the time of the purchase of Paramount in 2003 and were expensed, for book purposes, as a result of the branch sale. Excluding this net loss, the net income for the quarter would have been $167,000 or $.05 per share.

Net interest income from continuing operations before loan loss provision for the three months ended March 31, 2008 was $1,386,000 as compared to $1,248,000 for the same period of 2007. For the quarter ended March 31, 2008, we did exceed our plans for net interest income, despite the decreasing prime interest rate. The purchase of investment securities and the associated positive interest rate spread offset the decline in loan income resulting from the decrease in the prime interest rate.

The loan loss provision from continuing operations was $4,000 for the three months ended March 31, 2008 versus $94,000 for the quarter ended March 31, 2007.

For the quarter ended March 31, 2008, non-interest income was negatively impacted by a realized pre tax loss of $77,000 and an unrealized loss of $45,000 in our trading securities investment portfolio. As of March 31, 2008, the market value of the trading securities portfolio was $915,000. This portfolio is composed entirely of common stocks of financial institutions which are primarily community based financial institutions located in Indiana.

At the SCB Bank level, the non interest expenses were slightly favorable to our plan for the first quarter of 2008. Credit quality was stable for the first quarter of 2008 and our staff is making a priority of contacting those borrowers who are delinquent in the repayment of their loans.

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, reflects the confidence your Board of Directors has in the future of Blue River Bancshares, Inc. and the excess liquidity resulting from the Paramount branch sale."

Mr. Breeden also added, "Our core banking operations had a successful quarter. At SCB Bank we are increasing the size of our investment portfolio, addressing loans which have any delinquency over 15 days and trying to increase our depository relationships with our existing borrowers. We are excited about our future."

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.





                      CONSOLIDATED  FINANCIAL HIGHLIGHTS
                                 (UNAUDITED)

                           QUARTERS ENDED MARCH 31

                                       2008                 2007


    GROSS LOANS*                   $160,889,000        $194,056,000
    TOTAL ASSETS                   $222,256,000        $231,105,000
    DEPOSITS*                      $168,376,000        $184,373,000
    SHAREHOLDERS' EQUITY           $ 16,867,000        $ 18,013,000
    BOOK VALUE PER SHARE           $       5.04        $       5.14


    NET INTEREST INCOME            $  1,386,000        $  1,248,000
    PROVISION FOR LOAN LOSS        $      4,000        $     94,000
    NON INTEREST INCOME            $     39,000        $    130,000
    NON INTEREST EXPENSE           $  1,223,000        $  1,210,000
    INCOME TAX EXPENSE             $     75,000        $     37,000
    NET INCOME FROM
     CONTINUING OPERATIONS         $    123,000        $     37,000
    INCOME (LOSS) FROM
     DISCONTINUED OPERATIONS, NET
     OF TAX OF $1,783,000 AND
     $77,000                       $   (365,000)       $    142,000
    BASIC & DILUTIVE EARNINGS PER
     SHARE CONTINUING OPERATIONS   $        .04        $        .01
    BASIC & DILUTIVE EARNINGS
     (LOSS) PER SHARE DISCONTINUED
     OPERATIONS                    $      (0.11)       $        .04

*Gross loans and deposits include 75,000,000 of loans from discontinued operations and 75,800,000 of deposits from discontinued operations in 2007.

SOURCE Blue River Bancshares, Inc.