Exhibit 99.1
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| Contact: | | Jerome J. Gassen President and Chief Executive Officer (765) 529-2230 | | | | | | |
AMERIANA BANCORP REPORTS SECOND QUARTER 2014 NET INCOME
OF $603,000 OR $0.20 PER SHARE
NEW CASTLE, Ind. (July 18, 2014) – Ameriana Bancorp (NASDAQ: ASBI), parent company for Ameriana Bank, today announced earnings for the second quarter of 2014 of $603,000, or $0.20 per basic and diluted share, compared with $531,000, or $0.18 per basic and diluted share, for the second quarter of 2013.
For the first six months of 2014, Ameriana’s net income increased to $1.3 million, or $0.45 per basic and diluted share, compared with $1.1 million, or $0.38 per basic and diluted share, in the year-earlier period.
Commenting on the announcement, Jerome J. Gassen, President and Chief Executive Officer, said, “We are pleased with our continued growth in earnings over the same period a year earlier, which resulted from improvement in our credit metrics and interest from investment securities. The Bank’s efforts to grow its loan portfolio in the second quarter were hampered by the repayment of several large low-income housing loans, but a strong commercial pipeline at the end of the quarter is expected to produce more favorable results in the second half of the year.” Gassen also noted that noninterest expense declined from the same periods a year earlier, and although the net interest margin for the second quarter declined seven basis points from the same quarter in 2013, it still remains relatively stable given the current interest rate environment.
“I am particularly pleased with our progress in reducing non-performing loans and in shrinking our portfolio of other real estate owned (OREO),” Gassen continued. “Non-performing loans decreased to $4.6 million as of quarter end from $6.6 million at June 30, 2013, which also represented a $2.0 million improvement from the year-earlier total of $8.6 million.” OREO declined to $5.7 million at June 30, 2014, from $6.1 million and $8.5 million at June 30, 2013 and June 30, 2012, respectively.
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ASBI Reports Second Quarter 2014 Results
Page 2
July 18, 2014
Total loans receivable increased $891,000 to $316.9 million at June 30, 2014, from December 31, 2013, while total investment securities of $54.4 million at June 30, 2014, represented an increase of $14.2 million from December 31, 2013. For the same six-month period, total deposits increased $14.5 million, or 4.0%, to $377.2 million.
As of June 30, 2014, the allowance for loan and lease losses (ALLL) totaled $4.0 million or 1.26% of total loans receivable. The ALLL coverage of non-performing loans increased to 87.6%. Total shareholders’ equity as of June 30, 2014, was $39.6 million or 8.34% of total assets. Reported book value per common share was $13.22. Ameriana Bank exceeded all three regulatory capital standards to be considered “well capitalized” at June 30, 2014.
Ameriana Bancorp is a bank holding company. Through its wholly owned subsidiary, Ameriana Bank, the Company offers an extensive line of banking services and provides a range of investments and securities products through banking centers in the central Indiana area. Ameriana Bank owns Ameriana Insurance Agency, a full-service insurance agency, and Ameriana Financial Services, which offers securities and insurance products through LPL Financial (Member FINRA/SIPC).
This news release contains forward-looking statements within the meaning of the federal securities laws. Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. These risks and uncertainties involve general economic trends, changes in interest rates, loss of deposits and loan demand to other financial institutions, substantial changes in financial markets, changes in real estate value and the real estate market, regulatory changes, possibility of unforeseen events affecting the industry generally, the uncertainties associated with newly developed or acquired operations, the outcome of pending litigation, and market disruptions and other effects of terrorist activities. For discussion of these and other risks that may cause actual results to differ from expectations, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, on file with the Securities and Exchange Commission, including the section entitled “Risk Factors.” The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required under the rules and regulations of the Securities and Exchange Commission.
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ASBI Reports Second Quarter 2014 Results
Page 3
July 18, 2014
AMERIANA BANCORP
Unaudited Financial Highlights
(In thousands, except per share amounts)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
June 30, | | | Six Months Ended
June 30, | |
| | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
Interest income | | $ | 4,385 | | | $ | 4,261 | | | $ | 8,859 | | | $ | 8,552 | |
Interest expense | | | 755 | | | | 747 | | | | 1,513 | | | | 1,509 | |
| | | | | | | | | | | | | | | | |
Net interest income | | | 3,630 | | | | 3,514 | | | | 7,346 | | | | 7,043 | |
Provision for loan losses | | | 150 | | | | 210 | | | | 300 | | | | 465 | |
| | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 3,480 | | | | 3,304 | | | | 7,046 | | | | 6,578 | |
Other income | | | 1,383 | | | | 1,469 | | | | 2,747 | | | | 2,981 | |
Other expense | | | 4,037 | | | | 4,074 | | | | 7,954 | | | | 8,034 | |
| | | | | | | | | | | | | | | | |
Income before income taxes | | | 826 | | | | 699 | | | | 1,839 | | | | 1,525 | |
Income tax | | | 223 | | | | 168 | | | | 507 | | | | 380 | |
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Net income | | $ | 603 | | | $ | 531 | | | $ | 1,332 | | | $ | 1,145 | |
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Earnings per share: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.20 | | | $ | 0.18 | | | $ | 0.45 | | | $ | 0.38 | |
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Diluted | | $ | 0.20 | | | $ | 0.18 | | | $ | 0.45 | | | $ | 0.38 | |
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Weighted average shares outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 2,992 | | | | 2,989 | | | | 2,991 | | | | 2,989 | |
| | | | | | | | | | | | | | | | |
Diluted | | | 2,997 | | | | 2,989 | | | | 2,996 | | | | 2,989 | |
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Dividends declared per share | | $ | 0.02 | | | $ | 0.01 | | | $ | 0.04 | | | $ | 0.02 | |
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Net interest margin (fully tax-equivalent basis) | | | 3.56 | % | | | 3.63 | % | | | 3.64 | % | | | 3.68 | % |
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ASBI Reports Second Quarter 2014 Results
Page 4
July 18, 2014
AMERIANA BANCORP
Unaudited Financial Highlights (Continued)
(In thousands, except per share amounts)
| | | | | | | | | | | | |
| | | June 30,
2014 | | | Dec. 31,
2013 | | | June 30,
2013 | |
Total assets | | $ | 474,440 | | | $ | 458,604 | | | $ | 445,281 | |
Cash and cash equivalents | | | 41,552 | | | | 40,867 | | | | 30,113 | |
Interest-bearing time deposits | | | 2,974 | | | | 2,974 | | | | 3,718 | |
Investment securities held to maturity | | | 2,346 | | | | 2,347 | | | | 2,348 | |
Investment securities available for sale | | | 52,035 | | | | 37,803 | | | | 31,618 | |
Loans receivable | | | 316,919 | | | | 316,028 | | | | 317,512 | |
Allowance for loan losses | | | 4,004 | | | | 3,993 | | | | 3,954 | |
| | | | | | | | | | | | |
Loans, net | | | 312,915 | | | | 312,035 | | | | 313,558 | |
| | | |
Allowance for loan losses as a percentage of loans receivable | | | 1.26 | % | | | 1.26 | % | | | 1.25 | % |
Non-performing loans | | $ | 4,572 | | | $ | 5,067 | | | $ | 6,579 | |
Allowance for loan losses as a percentage of non-performing loans | | | 87.6 | % | | | 78.8 | % | | | 60.1 | % |
| | | |
Deposits: | | | | | | | | | | | | |
Non-interest-bearing | | $ | 57,622 | | | $ | 52,747 | | | $ | 56,609 | |
Interest-bearing | | | 319,613 | | | | 309,954 | | | | 298,408 | |
| | | | | | | | | | | | |
| | | 377,235 | | | | 362,701 | | | | 355,017 | |
| | | |
Borrowed funds | | $ | 50,810 | | | $ | 50,810 | | | $ | 45,810 | |
Shareholders’ equity | | | 39,576 | | | | 37,713 | | | | 36,940 | |
Book value per share | | | 13.22 | | | | 12.61 | | | | 12.36 | |
| | | |
Regulatory capital ratios for Ameriana Bank: | | | | | | | | | | | | |
Tier 1 leverage ratio | | | 9.44 | % | | | 9.47 | % | | | 9.36 | % |
Tier 1 risk-based capital ratio | | | 14.46 | % | | | 13.91 | % | | | 13.30 | % |
Total risk-based capital ratio | | | 15.72 | % | | | 15.16 | % | | | 14.56 | % |
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