Ameriana Bancorp (ASBI) 8-K Regulation FD Disclosure

Ameriana Bancorp

Annual Meeting

May 17, 2012

CEO Presentation

Exhibit 99.1

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, 2011.

Ameriana Bancorp

Annual Financial Performance

(Dollars in Thousands)

Year Ended

December 31,

2011  

2010  

Interest Income

$18,794

$19,985

Interest Expense

4,870

6,574

Net Interest Income

13,924

13,411

Provision for Loan Losses

1,385

1,933

Non-Interest Income   

5,628

5,650

Non-Interest Expense

17,004

16,817

Income before Income Taxes

1,163

311

Income Tax Expense (Benefit)

21

(242)

Net Income

$  1,142

$     553

Ameriana Bancorp

Quarterly Financial Performance

(Dollars in Thousands)

Three Months

Ended March 31,

2012  

2011  

Interest Income

$  4,559

$ 4,766

Interest Expense

1,042

1,337

Net Interest Income

3,517

3,429

Provision for Loan Losses

255

360

Non-Interest Income

1,280

1,389

Non-Interest Expense

4,119

4,401

Income before Income Taxes

423

57

Income Tax Expense (Benefit)

78

(64)

Net Income

$     345

$    121

Ameriana Bank Capital (as of 3/31/12)

Bank

Peer

Tier 1 Leverage Capital

8.98%

9.54%

Tier 1 RBC/Risk Wtd. Assets

12.42

14.25

Total RBC/Risk Wtd. Assets

13.69

15.51

Source: FDIC UBPR 3/31/2012

Key Metrics (as of 3/31/12)

Bank

Peer

Non-accrual Loans/Total Loans

2.88%

2.67%

NCL+ OREO/Lns. + OREO

5.16

4.04

Net Loss/Avg. Loans

0.45

0.39

ALLL/Total Loans

1.28

1.89

Current Rest. Loans/Total Loans

2.02

0.92

Source: FDIC UBPR 3/31/2012

Ameriana Bancorp

Financial Performance

(First Quarter 2012)

Positive Factors:

* On a fully tax-equivalent basis

Eleven consecutive profitable quarters

Investments provided gains on sale

Net interest margin of 3.76% *, an improvement of 1.7 bps

over the 4

th

quarter of 2011

Increases in other service charges, brokerage and

insurance revenues

Non-interest expense decreased $282M from the same

quarter of 2011

The deposit mix continues to improve

Credit quality is slowly improving

•

•

•

•

•

•

•

Ameriana Bancorp

Financial Performance

Asset yields are somewhat below peer

Funding costs are somewhat higher than peer

Assets per employee is low (i.e. excess capacity)

DDAs, although increasing, remain below high

performing peer banks

Other non-personnel expenses are higher than peer

Personnel expense, due to number of offices, is                

higher than peer

Credit costs remain significant and negatively impact

earnings

Negative Factors:

•

•

•

•

•

•

•

Financial Performance (First Quarter 2012)

Profitability: (% of Avg. Assets)

Bank

Peer

Interest Expense

1.04

0.79

Other Operating Expense

1.06

0.97

Occupancy Expense

0.57

0.36

Personnel Expense

1.98

1.54

Total Overhead Expense

3.61

2.89

Efficiency

Ratio

82.09

66.43

Assets

Per

Employee

(in

millions)

2.84

4.70

Avg.

Pers.

Exp.

Per

Employee

($

Million)

55.56

68.81

Source: FDIC UBPR 3/31/2012

Financial Performance (First Quarter 2012)

Profitability: (%)

Bank

Peer

Avg. Earning Assets/Avg. Assets

87.84

93.16

Avg. Int. Bearing Fds/Avg. Assets

84.08

79.23

Int. Expense/Avg. Earning Assets

4.80

4.64

NII/Average Earning Assets

3.76

3.83

Net Loans/Avg. Assets

71.81

62.20

Source: FDIC UBPR 3/31/2012

Financial Performance (First Quarter 2012)

Profitability: (%)

Bank

Peer

Securities/Avg. Assets

9.91

20.09

DDA/Avg. Assets

5.53

8.57

CDs/Avg. Assets

32.67

15.07

Core Deposits

79.01

76.42

FHLB/Avg. Assets

6.92

2.74

Source: FDIC UBPR 3/31/2012

Total Loans

(Dollars in Thousands)

$325,864

$326,573

$317,595

$317,087

$314,355

12/31/2008

12/31/2009

12/31/2010

12/31/2011

3/31/2012

Total Deposits

(Dollars in Thousands)

$324,406

$338,381

$337,978

$337,250

$354,872

12/31/2008

12/31/2009

12/31/2010

12/31/2011

3/31/2012

Net Interest Income

(Dollars in Thousands)

$11,793

$12,689

$13,411

$13,924

$3,517

2008

2009

2010

2011

1Q 2012

Net Interest Margin

(on a fully tax-equivalent basis)

3.08%

3.08%

3.63%

3.74%

3.76%

2008

2009

2010

2011

1Q2012

Non-Performing Loans

(Dollars in Thousands)

$6,219

$9,053

$11,247

$8,828

$8,620

12/31/2008

12/31/2009

12/31/2010

12/31/2011

3/31/2012

Non-Performing Loans/Total Loans

1.91%

2.78%

3.54%

2.79%

2.74%

12/31/2008

12/31/2009

12/31/2010

12/31/2011

3/31/2012

OREO

(Dollars in Thousands)

$3,881

$5,517

$9,067

$7,545

$7,545

12/31/2008

12/31/2009

12/31/2010

12/31/2011

3/31/2012

OREO/Total Loans

1.19%

1.68%

2.86%

2.39%

2.40%

12/31/2008

12/31/2009

12/31/2010

12/31/2011

3/31/2012

Charge-offs

(Dollars in Thousands)

$1,051

$1,230

$1,970

$1,560

$365

2008

2009

2010

2011

1Q2012

Net Charge-offs/ Avg. Loans

0.30%

0.35%

0.54%

0.47%

0.11%

2008

2009

2010

2011

1Q2012

Allowance for Loan Losses

(Dollars in Thousands)

$2,991

$4,005

$4,212

$4,132

$4,032

12/31/2008

12/31/2009

12/31/2010

12/31/2011

3/31/2012

Allowance for Loan Losses/Total Loans

0.92%

1.23%

1.33%

1.30%

1.28%

12/31/2008

12/31/2009

12/31/2010

12/31/2011

3/31/2012

Largest Non-Accrual Loans (as of 3/31/2012)

($ in Millions)

•

Commercial Land Development

$1.123

•

Condominium Development

$1.103

•

Commercial Land Development

$0.938

•

Single-Family Residential                              

$0.781

•

Single-Family Residential

$0.522

•

Commercial Real Estate

$0.352

Sub-total

$4.819

•

Residential, including lots (31 loans)

$3.065

•

Commercial (7 loans)

$0.623

Total Non-Accrual Loans (as of 3/31/2012)

$8.507

Largest OREO (as of 3/31/2012)

($ in Millions)

•

Retail Strip Center –

Partially Occupied

$2.507

•

Single Family Residence -

Rented

$0.924

•

Land and developed lots

$0.877

•

Single Family Residence -

Rented

$0.837

•

Land and partially completed apartments

$0.500

Sub-total

$5.645

Total OREO (as of 3/31/2012)

$7.545

Troubled Debt Restructurings (TDRs)

(Dollars in Thousands)

$0

$268

$8,393

$9,016

$9,325

12/31/2008

12/31/2009

12/31/2010

12/31/2011

3/31/2012

Composition of Troubled Debt Restructurings

(TDRs -

as of 3/31/2012)

•

$4.5 million hotel loan

-

Substandard

•

$1.5 million residential loans (11)

-

Substandard

•

$0.6 million commercial loan (2)

-

Substandard

•

$1.1 million condo construction loan

-

Doubtful

•

$0.9 million residential loans (5)

-

Doubtful

•

$0.3 million commercial loans (3)

-

Doubtful

•

$0.4 million residential loans (5)

-

Pass

•

$9.3 million -

Total

Key Challenges for 2012

•

Margin Compression is likely

Low short-term interest rates, steep yield curve

Lack of viable investment alternatives

Deposit pricing is at all time lows

Extremely competitive loan pricing

Consumers preference for short-term money

market accounts

•

Regulatory and accounting environment

Dodd -

Frank

Basel III

FASB pronouncements

Industry Challenges for 2012

•

Economic Conditions

Current economic conditions slowly improving

Resurgent U.S. auto industry and regional impact

Continued price decline of residential housing market

Residential foreclosures still flooding the market

Continued unemployment

•

Uncertainty of the future of the GSEs

•

Competition

•

Capital

•

Liquidity

•

Global unrest and sovereign risk

Key Objectives for 2012

•

Asset Quality

•

Earnings

•

Capital

•

Liquidity

•

Customer and Brand Experience/Service Performance

•

Regulatory and Enterprise Risk Management

•

Technology Implementation and Operational Improvement

•

People

Asset Quality Objectives for 2012

•

Reduce the level of criticized and classified credits to

$8.0 million

•

Reduce OREO to $5.0 million

•

Maintain an adequate ALLL

•

Ensure proper risk rating of all loans

•

Obtain risk-adjusted pricing for loans

Earnings Objectives for 2012

•

Achieve net income of $2,059,000 for Bank

and $1,482,000 on a consolidated basis

•

Maintain our net interest margin

•

Increase fee income from lending

•

Reduce credit losses and OREO expenses

•

Increase fee income from AFS and AIA

•

Increase new checking accounts and demand

deposit balances

•

Reduce non-interest expense

Capital Objectives for 2012

•

Maintain well-capitalized status: minimum of 8.5%

Tier 1 Capital and 12.0% Total Risk Based Capital

•

Build capital to mitigate loan losses, and for acquisition

or expansion purposes

•

Evaluate other strategies for raising capital needed to

grow earning assets or for expansion

Liquidity Objectives for 2012

•

Maintain adequate on balance sheet liquidity

•

Meet or exceed all board established minimums and

regulatory standards

•

Monitor and adjust to changes in sources of liquidity

due to changing collateral requirements

•

Increase low cost deposit balances

Customer and Brand Experience/Service Performance

for 2012

•

Build on our “Welcome Home”

experience

•

Incorporate the skill from Priosys into all customer

interactions

•

Incorporate 360 Degrees of Service into our daily

routines

•

Enhance our community focused brand position

•

Increase the impact from our participation in

community events

•

Continue Refer-a-Friend

Customer and Brand Performance/Service Performance

for 2012

•

Build on our financial advising competency, including

our platform sales initiative

•

Continue Life/Money Chats

•

Conduct regular mystery shops and customer

satisfaction surveys

•

Provide meaningful training and educational

opportunities for all Associates

•

Measure, monitor and coach enhanced sales and

service, i.e. Custom Blend

Regulatory and Enterprise Risk Management

Objectives for 2012

•

Meet regulatory standards for risk management and

measurement

•

Monitor enterprise risk standards and meet Board

established guidelines

•

Meet the requirements of Dodd –

Frank

•

Evaluate the impact of Basel III Capital Standards

•

Meet FASB and SEC financial reporting standards

Technology Implementation and

Operational Improvement for 2012

•

Continue implementation of new systems included in the

five year technology plan

•

Enhance our mobile banking solution

•

Upgrade our on-line banking system

•

Improve all operating processes to streamline and

automate account processing

People Plan for 2012

•

Improve career counseling

•

Be an employer of choice and be recognized as a

“best place”

to work

•

Implement on-line time card record keeping system

Stock Performance

Source: SNL Financial

Change %

As of 5/09/2012

YTD

1 Year

3 Years

SNL Bank & Thrift

19.85

(5.67)

1.35

SNL Bank < $500mm

17.48

0.29

(0.82)

KBW Bank

19.56

(6.88)

8.00

NASDAQ Bank

11.60

0.66

3.22

SNL Micro Cap

17.29

(8.64)

(6.66)

ASBI

35.10

7.62

42.67

Questions?