Blue River Bancshares Inc. of Shelbyville, Ind., said late Monday that it has amended its agreement to sell the charter of one of its subsidiaries to FirstAtlantic Financial Holdings Inc. of Jacksonville, Fla.
The $213 million-asset Blue River had said in September that it agreed to sell the charter of Paramount Bank of Lexington, Ky., to FirstAtlantic for $1.7 million. Blue River would keep all of Paramount's branches, personnel, and other operating assets and transferred them to another subsidiary, Shelby County Bank. Blue River also would retain the Paramount name.
In amending the deal, Blue River and FirstAtlantic agreed to push back the date after which either one could terminate the deal from June 30 to July 15. That date can be pushed back an additional week up to four times; for each extension, FirstAtlantic would pay Blue River $25,000. (Half of such payments would be applied to the deal price.) Also, FirstAtlantic agreed to pay Blue River $500,000 of the deal's price up front.
The deal was originally expected to close in the first quarter, but Blue River said it now expects the deal to close in the third quarter.
Local press reports said FirstAtlantic planned to raise up to $75 million of capital and use the charter to launch a community bank.
