Blue River Bancshares has announced that its wholly owned subsidiary, SCB Bank, has completed the sale of its Paramount Bank division in Lexington, Kentucky, to PBI Bank.
The sale resulted in SCB Bank receiving a premium of $5 million from PBI Bank. Under the terms of the branch purchase and assumption agreement,PBI Bank assumed substantially all of the assets and liabilities of Paramount Bank.
SCB Bank retained approximately $12.5 million of loans and $12.5 million of deposit accounts. As a result of this sale, SCB Bank will eliminate all of its core deposit intangible and goodwill, totaling approximately $3.4 million, which was attributable to the Paramount Bank division. Further, as a result of this transaction, Blue River will have no goodwill on its balance sheet.
Russell Breeden, chairman, CEO and president of Blue River, said: Although we will miss our colleagues, clients and friends in Lexington, the sale of the office is financially very attractive for our shareholders. Our current plans are to enhance the value of SCB Bank, continue our stock repurchase program and to actively analyze potential investment opportunities in banks or thrifts, with a focus on Indiana based institutions.