Blue Valley Ban Corp. reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. The company reported that a net loss for the quarter ended September 30, 2009, of $4.2 million, compared to net loss of $6.2 million for the quarter ended September 30, 2008, representing an improvement of 32.87%. The fully-diluted loss per share was $1.61 for the three months ended September 30, 2009, from diluted loss per share of $2.55 in the same period of 2008. During the third quarter of 2009 net interest income decreased 22.98% to $4.4 million compared to $5.7 million for the same period in the prior year, primarily due to a decrease in market rates during 2008 and a change in asset mix, specifically higher Federal funds sold and other short-term investment balances with lower yields. Net loss available to common shareholder was $4,441,000 against $6,210,000 for the same period last year. Return on average assets was negative of 2.03% against negative of 3.09% for the same period last year. Return on average equity was negative of 38.75% against negative of 41.12% for the same period last year. Net interest income decreased primarily due to a decrease in market rates during 2008 and a change in asset mix, specifically higher Federal funds sold and other short-term investment balances with lower yields. Net loss for the nine months ended September 30, 2009, was $12.1 million, or fully-diluted loss per share of $4.66, compared to net loss of $5.6 million or $2.28 fully-diluted loss per share for the same period in 2008. For the nine month period ended September 30, 2009, net interest income decreased 22.44% to $13.8 million compared to $17.8 million for the same period in 2008, due to an overall decline in rates earned on average earning assets and a change in asset mix, specifically higher Federal funds sold and other short-term investment balances with lower yields. Another factor contributing to the decline was an increase in the average balance of non-accrual loans as compared to the same period in 2008, due to a decline in the credit quality of the loan portfolio. Net loss available to common shareholder was $12,824,000 against $5,556,000 for the same period last year. Return on average assets was negative of 1.96% against negative of 0.96% for the same period last year. Return on average equity was negative of 34.84% against negative of 12.40% for the same period last year. Net interest income decreased due to an overall decline in rates earned on average earning assets and a change in asset mix, specifically higher Federal funds sold and other short-term investment balances with lower yields.

Blue Valley Ban Corp. reported earnings results for the second quarter and six months ended June 30, 2009. The company announced net income for the quarter ended June 30, 2009, was $206,000, compared to $24,000 for the quarter ended June 30, 2008. The fully-diluted loss per share was $0.02 for the three months ended June 30, 2009, from diluted earnings per share of $0.01 in the same period of 2008. During the second quarter of 2009 net interest income decreased 28.09% to $4.5 million compared to $6.2 million for the same period in the prior year, primarily due to lower net interest margin resulting from a decrease in market rates by 400 basis points since December 2007 and a change in asset mix, specifically higher Federal funds sold and other short-term investment balances with lower yields. The company reported return on average assets of 0.10% compared to 0.01% in the previous year period. The company reported negative return on average equity of 0.57% compared to positive 0.16% in the previous year period. For the six months ended June 30, 2009, net loss was $7.9 million, or fully-diluted loss per share of $3.04, compared to net income of $654,000 or $0.27 per share for the same period in 2008. For the six month period ended June 30, 2009, net interest income decreased 22.19% to $9.5 million compared to $12.2 million for the same period in 2008, due to a decrease in market rates during 2008 and a change in asset mix, specifically higher Federal funds sold and other short-term investment balances with lower yields. The company reported negative return on average assets of 1.92% compared to positive 0.17% in the previous year period. The company reported negative return on average equity of 33.29% compared to positive 2.21% in the previous year period.

Thomas A. McDonnell resigned as member of the Board of Directors of Blue Valley Ban Corp. Mr. McDonnell’s decision to resign was not a result of a disagreement with the company, known to an executive officer of the company, on any matter relating to the company’s operations, policies or practices.