SHELBYVILLE, Ind., Feb. 14, 2012 /PRNewswire/ -- Blue River Bancshares, Inc. (the "Company") announces that on February 10, 2012, the Office of the Comptroller of the Currency appointed the FDIC as receiver for SCB Bank (the "Bank").

The FDIC has facilitated the transfer of substantially all of the assets and deposits of the Bank to First Merchants Bank, National Association, of Muncie, Indiana.  The management team of the Bank has been working closely with the FDIC to make the transition as smooth as possible for the Bank's customers and employees.  In connection with the transaction, the FDIC issued a press release dated February 10, 2012.  This release contains important information for customers of the Bank and is available at www.fdic.gov/news/news/press/2012/pr12018.html.

The Bank was the principal asset of the Company.  Given these developments, the Company believes that any investment in the Company's preferred and common stock no longer has any value.  Shareholders should consult with their accountant or other tax advisor to determine how to treat any investment loss.

"Significant issues related to the Bank came to the attention of the Board of Directors of the Bank in early 2011.  As a result, the Bank reclassified certain loans, increased the allowance for loan losses, took specific reserves and charged off certain loans.  Throughout 2011, the Bank experienced further deterioration in its loan portfolio which caused further erosion of the capital of the Bank," commented Russell Breeden, III, Chairman, Chief Executive Officer and President of Blue River.

He added, "During the past year, the Board of Directors and the management team made considerable efforts to preserve or raise capital and engaged an investment banker to raise capital or find a merger partner.  Those efforts, as well as, working with regulators, were dedicated to finding an affirmative solution for the Bank.  Even with these dedicated efforts, the issues affecting the Bank proved too difficult to remedy in such a short period of time. However, in spite of these difficulties our staff was very professional, in fact SCB Bank was named 'Best Community Bank in Shelby County' for the 3rd consecutive year.

"The Board of Directors would like to thank our clients, staff and community. They have continued to be very loyal and supportive."

SOURCE Blue River Bancshares, Inc.

Back to top

RELATED LINKS
http://www.blueriverbancshares.com