Blue River Bancshares, Inc. reported a net loss of $140,000, or ($0.05) per diluted share, in the first quarter of 2010. The bank earned net income of $37,000, or $0.01 per diluted share, in the same quarter of 2009.

Blue River Bancshares, Inc. said that the loss for the quarter was due to an increase in the provision for loan losses to $427,000. Management made the decision based on its assessment of the bank’s pipeline of impaired and non-accrual loans. The provision for loan losses was $137,000 at the end of the first quarter of 2009.

Russell Breeden III, the CEO of Blue River Bancshares, Inc., said, “We are continuing to achieve improvement with our nonperforming loans. Positive activity seems to be occurring in each category. Approximately 20% of our first quarter reserves can be attributed to two commercial relationships, which have large real estate components.”

Blue River Bancshares, Inc. saw a large increase in non-performing assets on a year over year basis, from $9.9 million at March 31, 2009, to $12.4 million at the end of the first quarter of 2010.

Blue River Bancshares, Inc. also declared a $0.01 per share quarterly dividend. The dividend is payable 6/1/2010, to shareholders of record on 5/15/2010.

Blue River Bancshares, Inc. is a bank holding company that owns SCB Bank. SCB Bank operates as Shelby County Bank, located in Shelbyville, Indiana, and Paramount Bank, located in Lexington, Kentucky. Blue River Bancshares, Inc. had total assets of $263 million at March 31, 2010.

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