SHELBYVILLE, Ind., March 31 /PRNewswire-FirstCall/ -- Blue River
Bancshares, Inc. (Nasdaq: BRBI) today announced a consolidated net loss of
($283,000) for the year ended December 31, 2004, which includes the
recognition of merger expenses of $408,000 related to the proposed merger with
Heartland Bancshares, Inc. This total includes $134,000 of severance pay to
our former President and $274,000 of other merger expenses. The net loss
compared to a consolidated net income of $99,000 for the year ended
December 31, 2003. Basic loss per share was ($0.08) for the year ended
December 31, 2004 compared to $0.04 earnings per share for the year ended
December 31, 2003. Weighted average outstanding shares (basic) for 2004 were
3,406,150 compared to 2,470,799 for 2003. The Company previously recorded a
valuation allowance against its deferred tax asset in 2002. The Company
recorded changes in its valuation allowance to offset a change in the deferred
tax, resulting in no income tax expense for the year ended December 31, 2004.
Net interest income before the provision for loan losses for the year
ended December 31, 2004 was $6,156,000 as compared to $3,717,000 for fiscal
year 2003. Non-interest income was $1,158,000 for the 2004 year versus
$745,000 for 2003. The loan loss provision for the 2004 year was $510,000
compared to $240,000 during 2003. Non-interest expense increased from
$4,123,000 in 2003 to $7,087,000 during 2004. The results of 2003 include
only 2 months of activity from Paramount Bank (formerly known as Unified
Banking Company) and the 2004 results include Paramount Bank's results for a
full year.
On a consolidated basis, the Company's total assets were $206,625,000 as
of December 31, 2004 compared to $198,810,000 as of December 31, 2003. Net
loans (after the allowance for loan loss of $1,919,000 in 2004 and $1,681,000
in 2003) increased from $126,985,000 at the end of 2003 to $155,508,000 at the
end of 2004. The increase in net loans was 22.5% from year-end 2003 to year-
end 2004.
For the quarter ended December 31, 2004, the consolidated net loss was
($361,000), after recognizing merger expenses of $255,000. The merger
expenses include $134,000 of severance pay to our former President which is
included in salaries expense and $121,000 of other expenses. Effective
October 1, 2004, Paramount Bank changed its name from Unified Banking Company.
The expenses related to that change were $94,000 for the quarter ended
December 31, 2004. In addition, Shelby County Bank incurred a $178,000
expense during the quarter ended December 31, 2004 to adjust the FASB 91 cost
deferrals on home equity loans. Basic earnings per share was ($0.11) for the
last quarter of 2004 versus a consolidated net income of $131,000 or $0.05 per
share for the final quarter of 2003. Weighted average outstanding shares were
3,406,150 for the quarter ending December 31, 2004 and 2,873,541 for the
quarter ending December 31, 2003.
Net interest income before the allowance for loan loss provision for the
quarter ended December 31, 2004 was $1,643,000 compared to $1,375,000 for the
quarter ended December 31, 2003. The loan loss provision was $140,000 in the
final quarter of 2004 versus $60,000 for the same quarter in 2003. Non-
interest income was $282,000 during the quarter ended December 31, 2004 as
compared with $165,000 during the last quarter of 2003. Non-interest expense
increased from $1,349,000 for the final quarter of 2003 to $2,146,000 for the
last quarter of 2004.
Russell Breeden, III, Chairman and CEO of Blue River commented, "Again
during the fourth quarter of 2004 we were able to increase our net interest
income before the allowance for loan loss provision by $75,000 over the third
quarter and our non-interest income was within $6,000 of the prior quarter.
We were able to reduce our loan loss provision by $35,000 from the third
quarter to the fourth. We expensed $178,000 to adjust FASB 91 cost deferrals
which related to higher volumes of home equity loans in 2004. This expense
and the cost associated with the name change from Unified Banking Company to
Paramount Bank, also incurred during the fourth quarter, accounted for
$272,000, of the $376,000 increase in non-interest expense for the final
quarter of 2004, compared with the third quarter of that year."
Mr. Breeden also said, "We were very disappointed that the merger with
Heartland Bancshares, Inc. was terminated. Our staff invested significant
time and energy into the integration process and were anxious to complete the
transaction. Our desire for growth and the creation of successful community
banks remains intact and is in no way diminished by the termination of the
proposed merger."
Blue River, formed in 1997, is a savings and loan holding company located
in Shelbyville, Indiana. Its principal banking subsidiaries, Shelby County
Bank and Paramount Bank provide financial services to south central Indiana
through Shelby County Bank's main office in Shelbyville and three other full
service branches in Shelbyville, Morristown, and St. Paul, Indiana and to the
city of Lexington, and Fayette County, Kentucky through Paramount's one office
located in Lexington, Kentucky. Additional information about Blue River may
be found on the Company's website at http://www.blueriverbancshares.com .
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,
exceptions 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 out 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.
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