Shelbyville-based Blue River Bancshares Inc. on Tuesday afternoon said mounting loan losses contributed to a third-quarter loss of $356,000.
That translates to a loss of 14 cents per share compared with a profit of 3 cents per share during the same quarter last year, when the bank earned $96,000.
The bank’s net loss of $431,000 to common shareholders was even steeper in the third quarter, when including $70,000 it received from the federal Troubled Asset Relief Program, and $5,000 of preferred stock discount accretion.
For the third quarter, the bank’s loan-loss provision grew to $786,000, from $402,000 during the same three months in 2008. However, $468,000 of the most recent loan- loss provision was related to just one loan, said Russell Breeden III, Blue River’s chairman, CEO and president, in a written statement.
“As a result of the recent economic conditions, we have experienced a dramatic increase in the amount of our non-performing loans,” Breeden said. “We consider this to be a very serious issue and are working aggressively to identify potential losses and proactively address them.”
Blue River’s total assets remained relatively flat at $260.8 million. Deposits grew 5 percent, to $209.8 million.
Blue River is the holding company for Shelby County Bank.
Shares of the bank trade over the counter and opened Wednesday morning at $2.10 each.