SHELBYVILLE, Ind., July 24 /EMWNews/ -- Blue River

Bancshares, Inc. (OTC Bulletin Board: BRBI) today announced that a

quarterly dividend of $.035 per share was declared by the Board of

Directors, payable September 1, 2008, to shareholders of record as of the

close of business on August 15, 2008. This is the eighth consecutive

quarterly dividend increase since the company began its dividend program.



    Blue River also continues its previously announced stock repurchase

program. Approximately 440,000 shares remain available to be purchased.

Shareholders who desire to sell their Blue River stock are encouraged to

call Chairman, CEO and President of Blue River, Mr. Russell Breeden, III,

at (317) 681-1233.



    Russell Breeden, III, commented, "We are pleased to be able to increase

the dividend, again this quarter. This action, along with the stock

repurchase program, continues to reflect the confidence your Board of

Directors has in the future of Blue River Bancshares, Inc. and the excess

liquidity provided by the sale of the Paramount branch."



    In addition, Blue River reported consolidated net income of $13,000 for

the quarter ended June 30, 2008. This net income compares to consolidated

net income from continuing operations for the same period of 2007 of

$129,000. Fully diluted earnings per share were $.00 for the quarter ended

June 30, 2008 and $.04 for the same period in 2007. Weighted average

outstanding shares (fully diluted) were 3,293,155, as of June 30, 2008,

compared to 3,489,663 shares at the end of the same quarter of 2007.



    Net interest income from continuing operations before loan loss

provision for the three months ended June 30, 2008 was $1,752,000 as

compared to $1,302,000 for the same period of 2007.



    Non-interest income from continuing operations was $92,000 for the

three months ended June 30, 2008 compared to $123,000 for the same period

of 2007. During this period in 2008 Blue River had a net loss on the sale

of other assets of $40,000, which includes $48,000 associated with the loss

on sale of a single family residence in Lexington, Kentucky.



    The loan loss provision from continuing operations was $468,000 for the

three months ended June 30, 2008 versus $0 for the quarter ended June 30,

2007. In addition to providing for an increase in outstanding loans at SCB

Bank, the specific reserves were increased by $248,000 related to four

single family home builders and $108,000 related to a retail business, all

located in Kentucky. The remaining balance of the loan loss provision

expense is associated with the charge off of four smaller loans.



    Non-interest expense from continuing operations increased to $1,351,000

for the quarter ended June 30, 2008 as compared to $1,224,000 for the

quarter ended June 30, 2007. This increase is primarily the result of

increased salary expenses and increased FDIC insurance premiums.



    For the six months ended June 30, 2008, Blue River reported a net loss

of $229,000 or $.07 loss per share. This loss includes the results from the

sale and discontinued operations of the Paramount branch of SCB Bank.

Excluding the loss on this sale, the net income for these six months would

be $180,000 or $.05 per share.



    Mr. Breeden also added, "We remain very excited about the future of SCB

Bank. The current turmoil in the banking industry has provided many unique

opportunities for us to create and acquire new banking relationships.

However, our portfolio is not immune to the deterioration of the

residential real estate construction market especially in Kentucky and we

are methodically reducing our exposure to that market. As we have

previously communicated, our ability to develop a strong stream of net

interest income has provided the foundation for us to continue to create

increased shareholder value. However, during the short term our challenge

will be to achieve a reasonable resolution to a small number of problem

loans. Our success at this activity will, obviously, dictate the level of

our short term operating profit. Our long term focus continues to be to

create a premier community bank."



    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 June 30,

                                                    2008           2007



    GROSS LOANS*                                $164,886,000   $199,776,000

    TOTAL ASSETS                                $256,198,000   $236,585,000

    DEPOSITS*                                   $187,897,000   $191,774,000

    SHAREHOLDERS' EQUITY                         $15,508,000   $ 17,491,000

    BOOK VALUE PER SHARE                               $4.85          $5.05





    NET INTEREST INCOME                           $1,752,000    $ 1,302,000

    PROVISION FOR LOAN LOSSES                       $468,000            $ 0

    NON INTEREST INCOME                             $ 92,000       $123,000

    NON INTEREST EXPENSE                          $1,351,000    $ 1,224,000

    INCOME TAX EXPENSE                              $ 12,000        $72,000

    NET INCOME FROM

     CONTINUING OPERATIONS                           $13,000       $129,000

    (LOSS) FROM DISCONTINUED

     OPERATIONS, NET OF TAX OF ($66,000)                 N/A      $(128,000)

    BASIC & DILUTIVE EARNINGS PER SHARE

     CONTINUING OPERATIONS                              $.00          $ .04

    BASIC & DILUTIVE (LOSS) PER SHARE

     DISCONTINUED OPERATIONS                             N/A          $(.04)



    *Gross loans and deposits include $75,000,000 of loans and $75,800,000

of deposits from discontinued operations in 2007.