Exhibit 99.1
Ameriana Bancorp
Annual Meeting of Shareholders
May 21, 2009
Forward-Looking Statement
This presentation contains forward-looking statements, which include statements about Ameriana’s future financial performance, business plans and strategies. Forward-looking statements involve future risks and uncertainties, because of factors that could cause actual results to differ materially from those expressed or implied. Specific risk factors and other uncertainties that could affect the accuracy of forward-looking statements are included in Ameriana’s Form 10-K for the year ended December 31, 2008.
Michael Kent Chairman of the Board
Introduction of Directors:
• Jerome J. Gassen – President and Chief Executive Officer – Ameriana Bancorp
• Ronald R. Pritzke – Vice Chairman of the Board, Ameriana Bancorp, Partner - Pritzke & Davis
• Donald C. Danielson – Vice Chairman of the Board – City Securities Corporation
• R. Scott Hayes – General Counsel, Senior Partner – Hayes Copenhaver Crider
• Charles M. (Kim) Drackett, Jr. – Chairman, President and General Manager – Fairholme Farms Inc.
• Richard E. Hennessey – Executive Vice President and Chief Financial Officer – Shiel Sexton Company inc.
• Paul W. Prior – Director Emeritus - Former President and Chairman of the Board
Representing our Independent Auditor
BKD – Indianapolis Office
Steve Moore
Partner - BKD
Mike Ososki
Manager - BKD
Introduction of Senior Officers:
• John J. Letter – Senior Vice President – Treasurer and Chief Financial Officer
• Matthew F. Branstetter – Senior Vice President and Chief Credit Officer
• Nancy A. Rogers - Senior Vice President – Investor Relations and Corporate Secretary
Proxy Proposals
• Election of Directors
• Ratification of Appointment of BKD, LLP as Independent Auditor
Remarks of Mr. Kent:
• Board is focused on two key objectives:
– “Well Being” of the Company
– Return on investment to shareholders
• Well being of the Company
– Bank’s financial condition
– Strong Corporate Governance
– The Company’s strategic plan and its goals and objectives
– Quality of Management
Remarks of Mr. Kent:
• Corporate Governance
– Development, approval and implementation of the long-range strategic plan
– Independent Board Committees provide oversight
– Board education
• Management Team Focus
– Maintaining asset quality
– Minimizing credit losses
– Maintaining liquidity and capital
– Transformation from traditional thrift to a commercial bank
Jerome J. Gassen President and CEO
Background Information
• Headquarters – New Castle, Indiana Henry County
• 15 Locations
- 13 Banking Centers
- 1 Loan Production Center
- 1 Insurance Office
• # 1 Market Share in Henry County – 32.48%
- $201.6 Million in Deposits
• # 4 Market Share in Hancock County – 9.39%
- $59.5 Million in Deposits
(Source: FDIC)
Westfield
Anderson
Middletown
Carmel
Fishers
McCordsville
New Castle
Avon
INDIANAPOLIS
Greenfield
Knightstown
New Palestine
Morristown
Ameriana Bancorp - Profile
• Line of Business Focus
– Commercial/Business Lending
– Mortgage Banking
– Consumer Lending and Deposits
– Ameriana Financial Services
– Ameriana Insurance
• Experienced Management Team
• Enterprise Risk Management
Ameriana Bancorp Profile
“ Our mission and promise is to engage every customer in genuine and innovative ways, to truly understand and embrace their individual needs and desires, so we can provide them with the best financial solutions and direction.”
Ameriana Bancorp – Profile
(as of 12/31/2008)
• Ameriana Bank ($ in 000s)
- Total Assets - $461,417
- Total Loans - $325,526
- Total Deposits - $324,682
• Ameriana Financial
- Assets under Management - $ 34,781
• Ameriana Insurance
- Total Customers - 3,934
- P & C Coverage - $500,000+
Ameriana 2008 Financial Results
• Net Income of $741,000 compared to $1.2 million in 2007
• Net Interest Margin improved by 35 basis points
• Achieved 9.6% loan portfolio growth
• Grew the Investment Portfolio by 13.0% to 16.3% of total assets
• Sold 20.94% interest in Indiana Title Insurance Company
Industry Challenges In 2008
• Commercial
– Deterioration of credit quality
– Higher Industry NPAs
– Higher provision expenses
– Slowing absorption rates
– Declining appraised values
– Freezing of capital markets
Industry Challenges In 2008
Residential
Sub-prime mortgages disrupted the mortgage and financial markets
Increased levels of residential foreclosures nationwide
Decreased property values (20-40% declines in appraised values)
Significantly increased sale times
Tightened secondary market and PMI standards
Government intervention is directing write-downs on loans in foreclosure
Industry Challenges In 2008
Margins
Declining interest rates squeezed margins
Consumer preferences for short-term deposit accounts
Higher cost of wholesale
Industry Challenges In 2008
Significant Decline in Financial Stocks
Change %
1 Year 3 Years
SNL Banks and Thrifts (46.35) (60.58)
SNL Banks (46.73) (60.07)
SNL Thrifts (42.15) (66.50)
KBW Banks (51.18) (63.55)
S & P Banks (55.77) (71.72)
NASDAQ Banks (33.47) (46.66)
(Source: SNL Financial)
Key Objectives for 2008
Maintain Soundness
Improve Profitability
Focus on Loan Growth
Increase Name Recognition
Expand in Key Markets
Maintain Soundness
($ in thousands)
$15,841
$9,908
$9,426
$5,024
$5,125
2005
2006
2007
2008
1Q 2009
Classified and Criticized Loans
Maintain Soundness
($ in thousands)
$6,219
$3,326
$3,291
$2,466
$2,638
2005
2006
2007
2008
1Q 2009
Non-Performing Loans
Maintain Soundness
($ in thousands)
$3,225
$2,967
$2,991
$2,616
$2,677
2005
2006
2007
2008
1Q 2009
Allowance for Loan Losses
Maintain Soundness
(% of total loans)
1.28%
1.04%
0.90%
0.92%
0.95%
2005
2006
2007
2008
1Q 2009
Allowance for Loan Losses
Maintain Soundness
Allowance Non-Performing Loans
$6,219
$3,316
$3,225
$3,291
$2,835
$2,991
$2,466
$2,616
$2,677
$2,638
115.0%
78.7%
101.5%
48.1%
98.0%
2005
2006
2007
2008
1Q 2009
Coverage of Non-Performing Loans
Improve Profitability
Continue to change the mix of earning assets
(% of earning assets)
2007
2008
1Q 2009
12%
1%
10%
1%
9%
1%
22%
21%
23%
28%
30%
28%
37%
39%
40%
Residential Mortgage Loans Commercial Loans Consumer Loans Construction Loans
Total Investments
Improve Profitability
($ in thousands)
$11,793
$9,787
$9,822
$8,801
2005
2006
2007
2008
Net Interest Income
Improve Profitability
(Net Interest Income presented on a tax equivalent basis as a % of average interest - earning assets – 34.0%)
3.08%
2.57%
2.73%
2.29%
2005
2006
2007
2008
Net Interest Margin
Focus on Loan Growth
($ in thousands)
$339,000
$325,526
$296,950
$251,885
$221,126
2005
2006
2007
2008
1Q 2009
Expand in Key Markets
Greenfield Banking Center
Expand In Key Markets
Carmel Fishers
Expand In Key Markets
Westfield Banking Center
Deposits as of 3/31/09
• Greenfield $27,705,662
• Fishers $8,122,840
• West Carmel $7,687,406
Ameriana – 2009 Key Objectives
Soundness – Resolution of Problem Assets
– Manage NPAs and OREO
– Minimize losses
– Work with borrowers in distress if possible
– Utilize skills of Special Assets Manager and Chief Credit Officer to manage criticized and classified assets
– Ensure adequacy of ALL
Capital Ratios
(As of 3/31/09)
Ameriana Bancorp
Actual
Well - Capitalized
Tangible Common Equity/Total Tangible Assets Ratio 6.70% N/A
TIER 1 Leverage Ratio 8.07% 5.00%
TIER 2 Risk-Based Capital Ratio 11.07% 6.00%
Total Risk-Based Capital Ratio 12.04% 10.00%
Ameriana Bank
Actual Well-Capitalized
TIER 1 Leverage Ratio 8.02% 5.00%
TIER 1 Risk-Based Capital Ratio 11.05% 6.00%
Total Risk-Based Capital Ratio 12.03% 10.00%
TARP Decision
• Initial reaction to Capital Purchase Plan was favorable
– Reasonable Cost
– Other sources of capital unavailable
– Yields on investments to offset initial costs were favorable
• Decision to withdraw
– Internal capital analysis showed sufficient capital
– Yields on investments fell dramatically eliminating ability to offset costs
– Market reaction to CPP as bailout money
– Partial thawing of traditional capital markets
Ameriana – 2009 Key Objectives
• Soundness – CAPITAL
– Preserve and Build Capital
• Reduce risk-based assets, if needed
• Reduce expenses and pursue fee income opportunities to increase net income
• Evaluate dividend
• Evaluate raising capital from traditional capital markets i.e.
– Preferred stock
– Subordinated debentures
Ameriana – 2009 Key Objectives
• Profitability
– Maintain or improve Net Interest Margin
– Increase Net Interest Income by increasing earning assets
– Manage expenses
– Grow other income from Ameriana Financial Services and Ameriana Insurance
Ameriana – 2009 Key Objectives
• Growth
– Due to current economic conditions additional significant growth initiatives have been placed on hold
Questions?
Results of the Election
Ameriana Bancorp
NASDAQ: ASBI