SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT

Pursuant to Section 13 or 15 (d) of
The Securities Exchange Act of 1934

For the Quarter Ended: March 31, 2002 Commission File Number: 0-18392
- ---------------------

Ameriana Bancorp

Indiana 35-1782688
- ------------------------------- -------------------------------
(State or other jurisdiction of (I.R.S. employer identification
incorporation or organization) number)

2118 Bundy Avenue, New Castle, Indiana 47362-1048
- --------------------------------------- ----------
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, include area code (765) 529-2230
--------------

Common Stock, par value $1.00 per share
---------------------------------------
(Title of Class)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

YES XX NO
-- ---

As of May 14, 2002, there were issued and outstanding 3,147,463 shares of the
registrant's common stock.

AMERIANA BANCORP AND SUBSIDIARIES

CONTENTS

PART I - FINANCIAL INFORMATION Page No.
--------
ITEM 1 - Financial statements

Consolidated Condensed Balance Sheets as of
March 31, 2002 and December 31, 2001 . . . . . . . . . . . 3

Consolidated Condensed Statements of Operations
for the Three Months Ended March 31,
2002 and 2001. . . . . . . . . . . . . . . . . . . . . . . 4

Consolidated Condensed Statements of Shareholders'
Equity for the Three Months Ended March 31,
2002. . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Consolidated Condensed Statements of Cash Flows
for the Three Months Ended March 31, 2002
and 2001 . . . . . . . . . . . . . . . . . . . . . . . . . 6

Notes to Consolidated Condensed Financial
Statements . . . . . . . . . . . . . . . . . . . . . . . . 7

ITEM 2 - Management's Discussion and Analysis of
Financial Condition and Results of
Operations . . . . . . . . . . . . . . . . . . . . . . . . 9

ITEM 3 - Quantitative and Qualitative Disclosure
About Interest Rate Risk . . . . . . . . . . . . . . . . . 14

PART II - OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . 16

SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

PART I - FINANCIAL INFORMATION

AMERIANA BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands, except share data)

March 31, December 31,
2002 2001
(Unaudited)
--------- ---------

Assets

Cash on hand and in other institutions $ 8,887 $ 7,540
Interest-bearing demand deposits 88,575 4,283
--------- ---------
Cash and cash equivalents 97,462 11,823

Investment securities held for sale 51,945 140,629
Mortgage loans held for sale 3,064 5,290
Loans receivable 343,025 352,113
Allowance for loan losses (2,959) (1,730)
--------- ---------

Net loans receivable 340,066 350,383
Real estate owned 448 586
Premises and equipment 7,083 6,919
Stock in Federal Home Loan Bank 7,382 7,365
Mortgage servicing rights 1,081 1,012
Investments in unconsolidated affiliates 1,311 825
Goodwill 1,054 1,054
Intangible assets 448 457
Cash surrender value of life insurance 18,215 18,035
Other assets 3,462 7,697
--------- ---------

Total assets $ 533,021 $ 552,075
========= =========

Liabilities and Shareholders' Equity

Liabilities:
Deposits:
Noninterest-bearing $ 21,598 $ 24,257
Interest-bearing 404,377 388,156
--------- ---------

Total deposits 425,975 412,413
Advances from Federal Home Loan Bank 57,396 87,653
Notes payable 841 930
Drafts payable 3,223 6,092
Advances by borrowers for taxes and insurance 817 662
Other liabilities 3,784 1,430
--------- ---------

Total liabilities 492,036 509,180

Shareholders' equity:
Preferred stock (5,000,000 shares authorized;
none issued) -- --
Common stock ($1.00 par value; authorized
15,000,000 shares; issued shares:
3,147,463 and 3,146,616, respectively) 3,147 3,147
Additional paid-in capital 499 499
Retained earnings 37,391 39,945
Accumulated other comprehensive loss (52) (696)
--------- ---------

Total shareholders' equity 40,985 42,895
--------- ---------

Total liabilities and shareholders' equity $ 533,021 $ 552,075
========= =========

See accompanying notes to consolidated condensed financial statements

AMERIANA BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)

Three Months Ended March 31,
----------------------------
2002 2001
--------- ---------

Interest Income:
Interest on loans $ 6,255 $ 8,017
Interest on mortgage-backed securities 1,744 218
Interest on investment securities 403 1,496
Other interest and dividend income 190 196
------- -------

Total interest income 8,592 9,927

Interest Expense:
Interest on deposits 4,106 4,691
Interest on FHLB advances and other borrowings 1,138 1,928
------- -------

Total interest expense 5,244 6,619
------- -------

Net interest income 3,348 3,308

Provision for Loan Losses 1,250 90
------- -------

Net interest income after provision for loan losses 2,098 3,218

Other Income:
Net loan servicing fees 46 57
Other fees and service charges 195 206
Brokerage and insurance commissions 268 260
Net loss on investments in unconsolidated affiliates (50) (36)
Gains on sales of loans and servicing rights 234 75
Loss on sale of investments available for sale (3,212) --
Increase in cash surrender value of life insurance 180 295
Other 62 44
------- -------

Total other income (2,277) 901

Other Expense:
Salaries and employee benefits 2,109 1,569
Net occupancy expense 388 360
Federal insurance premium 18 18
Data processing expense 120 69
Printing and office supplies 75 88
Amortization of intangible assets 8 44
Other 505 502
------- -------

Total other expense 3,223 2,650
------- -------

Income (loss) before income taxes (3,402) 1,469

Income taxes (1,352) 415
------- -------

Net Income (Loss) $(2,050) $ 1,054
======= =======

Basic Earnings (Loss) Per Share $ (0.65) $ 0.33
======= =======
Diluted Earnings (Loss) Per Share $ (0.65) $ 0.33
======= =======
Dividends Declared Per Share $ 0.16 $ 0.15
======= =======

See accompanying notes to consolidated condensed financial statements
4

AMERIANA BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands)
(Unaudited)
2002
-----------

Balances, January 1 $ 42,895

Net loss (2,050)
Other comprehensive income 644
-----------
Comprehensive loss (1,406)

Dividends declared (504)
-----------

Balances, March 31 $ 40,985
===========

See accompanying notes to consolidated condensed financial statements.

AMERIANA BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Three Months Ended March 31,
----------------------------
2002 2001
--------- ---------

OPERATING ACTIVITIES
Net income (loss) $ (2,050) $ 1,054
Items not requiring cash:
Provisions for losses on loans 1,250 90
Depreciation 148 152
Accretion/Amortization of securities (net) (59) 196
Equity in loss of limited partnership -- 36
Mortgage servicing rights amortization 60 36
Goodwill amortization 9 44
Losses (gains) on sales of real estate owned (14) 1
Loss on sale of investments 3,212 --
Increase in cash surrender value of life insurance (180) (295)
Mortgage loans originated for sale (21,060) (9,073)
Proceeds from sales of mortgage loans 23,286 7,938
Gains on sales of loans and servicing rights (234) (75)
Change in:
Other assets 4,292 1,352
Drafts payable (2,869) (547)
Other liabilities 2,081 2,352
--------- ---------

Net cash provided by operating activities 7,872 3,261

INVESTING ACTIVITIES
Proceeds from calls of securities held to maturity -- 11,075
Principal collected on mortgage-backed securities held to maturity -- 604
Purchase of investment securities available for sale (69,456) --
Sale of investment securities available for sale 138,428 --
Principal collected on securities available for sale 17,631 --
Net change in loans 9,067 12,379
Proceeds from sale of real estate owned 200 120
Net purchases of premises and equipment (312) (26)
Purchase of Federal Home Loan Bank stock (17) (26)
Other investing activities (486) --
--------- ---------

Net cash provided by investing activities 95,055 24,126

FINANCING ACTIVITIES
Net change in demand and passbook deposits (2,659) (621)
Net change in certificates of deposit 16,221 22,910
Advances from Federal Home Loan Bank 17,500 7,000
Repayment of Federal Home Loan Bank advances (47,757) (62,735)
Repayment of notes payable (89) (690)
Cash dividends paid (504) (472)
--------- ---------

Net cash used by financing activities (17,288) (34,608)
--------- ---------

Change in cash and cash equivalents 85,639 (7,221)

Cash and cash equivalents at beginning of period 11,823 19,031
--------- ---------

Cash and cash equivalents at end of period $ 97,462 $ 11,810
========= =========

Supplemental information:
Interest paid $ 2,200 $ 2,331
Income taxes paid 233 123

See accompanying notes to consolidated condensed financial statements

AMERIANA BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
- ----------------------------------------------------
(Table dollar amounts in thousands, except share data)

NOTE A - - BASIS OF PRESENTATION

Ameriana Bancorp (the "Company") was incorporated under Indiana law for the
purpose of becoming the holding company for Ameriana Bank and Trust of Indiana.
In 1990, the Company acquired all of Ameriana Bank and Trust of Indiana common
stock in connection with its reorganization into the holding company form of
ownership. In 1992, the Company acquired Ameriana Bank of Ohio, F.S.B. ("ABO").
ABO was merged into Ameriana Bank and Trust of Indiana in October 2000. On June
29, 2001, Ameriana Bank and Trust of Indiana converted from a Federal Savings
Bank to an Indiana Chartered State Savings Bank and changed its name to Ameriana
Bank and Trust, SB ("ABT"). The conversion is not expected to have a material
effect on the Company's business but is expected to reduce the assessments paid
for examinations and supervision of ABT. At the same time, the Company
contributed Ameriana Insurance Agency, Inc. ("AIA") to ABT. AIA operates a
general insurance agency in three locations. ABT has a brokerage operation
through its wholly owned subsidiary Ameriana Financial Services, Inc., which
also owns a partial interest in a life insurance company and a title insurance
company. The title insurance company, Indiana Title Insurance Company, LLC, was
acquired in the first quarter of 2002. In 1995, the Company purchased a minority
interest in a limited partnership organized to acquire and manage real estate
investments, which qualify for federal tax credits.

The unaudited interim consolidated condensed financial statements have been
prepared in accordance with the instructions to Form 10-Q and, therefore, do not
include all information and disclosures required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, the financial statements reflect all adjustments (comprised only of
normal recurring adjustments and accruals) necessary to present fairly the
Company's financial position as of March 31, 2002, and the results of operations
and cash flows for the three-month periods ended March 31, 2002 and 2001. The
results of operations for the period are not necessarily indicative of the
results to be expected in the full year. A summary of the Company's significant
accounting policies is set forth in Note 1 of Notes to Consolidated Financial
Statements in the Company's annual report on Form 10-K for the year ended
December 31, 2001.

The consolidated condensed balance sheet of the Company as of December 31, 2001
has been derived from the audited consolidated balance sheet of the company as
of that date. Reclassifications of certain amounts in 2001 consolidated
financial statements have been made to conform to the 2002 presentations.

NOTE B - - SHAREHOLDERS' EQUITY

On February 25, 2002, the Board of Directors declared a quarterly cash dividend
of $.16 per share. This dividend, totaling $503,594, was accrued for payment to
shareholders of record on March 15, 2002, and was paid on April 5, 2002. Payment
was made to 3,147,463 shareholders. Stock options totaling 9,713 shares were
exercised during the first quarter of 2002 with 8,866 shares retired as part of
the same transaction.

The Company's net income decreased $3,104,000 or 294.50%, for a loss of
$2,051,000 ($.65 loss per basic and diluted earnings per share) for the quarter
ended March 31, 2002, compared to net income of $1,054,000 ($.33 basic and
diluted earnings per share) for the same period in 2001.

Earnings per share were computed as follows:

(In thousands, except share data)
Three Months Ended March 31,
----------------------------
2002 2001
- -------------------------------------------------------------------------------------------------------------------------
Per Per
Income Weighted Share Weighted Share
(Loss) Average Shares Amount Income Average Shares Amount
- -------------------------------------------------------------------------------------------------------------------------

Basic Earnings (Loss) per Share: Income
available to Common shareholders ($2,050) 3,147,463 ($0.65) $1,054 3,146,616 $0.33
- -------------------------------------------------------------------------------------------------------------------------
Effect of dilutive stock options -- 5,239 -- 156
- -------------------------------------------------------------------------------------------------------------------------
Diluted Earnings (Loss) Per Share: ($2,050) 3,152,702 ($0.65) $1,054 3,146,772 $0.33
Income available to common shareholders
and assumed conversions
- -------------------------------------------------------------------------------------------------------------------------

At March 31, 2002 there were options on 188,228 shares that could dilute basic
earnings per share in the future which were not included in the above
computations because they were antidilutive.

AMERIANA BANCORP AND SUBSIDIARIES

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

General
- -------

This Quarterly Report on Form 10-Q ("Form 10-Q") may contain statements, which
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements appear in a number of
places in this Form 10-Q and include statements regarding the intent, belief,
outlook, estimate or expectations of the Company primarily with respect to
future events and future financial performance. Readers of this Form 10-Q are
cautioned that any such forward looking statements are not guarantees of future
events or performance and involve risks and uncertainties, and that actual
results may differ materially from those in the forward looking statements as a
result of various factors. The accompanying information contained in this Form
10-Q identifies important factors that could cause such differences. These
factors include changes in interest rates; loss of deposits and loan demand to
other financial institutions; substantial changes in financial markets; changes
in real estate values and the real estate market or regulatory changes.

The largest components of the Company's total revenue and total expenses are
interest income and interest expense, respectively. Consequently, the Company's
earnings are primarily dependent on its net interest income, which is determined
by (i) the difference between rates of interest earned on interest-earning
assets and rates paid on interest-bearing liabilities ("interest rate spread"),
and (ii) the relative amounts of interest-earning assets and interest-bearing
liabilities. Levels of other income and operating expenses also significantly
affect net income.

Management believes that interest rate risk, i. e., the sensitivity of income
and net asset values to changes in interest rates, is one of the most
significant determinants of the Company's ability to generate future earnings.
Accordingly, the Company has implemented a long-range plan intended to minimize
the effect of changes in interest rates on operations. The asset and liability
management policies of the Company are designed to stabilize long-term net
interest income by managing the repricing terms, rates and relative amounts of
interest-earning assets and interest-bearing liabilities.

On March 19, 2002, the Company announced that it had changed the accounting
classification for its investment portfolio from "Held to Maturity" to
"Available for Sale", effective as of December 31, 2001. The change in
accounting stems from the Company's review of its investment portfolio and the
determination that recent deterioration in the markets has fundamentally changed
the interest rate risk characteristics of these investments and increased the
Company's exposure to volatility in future interest income.

The Company's investment portfolio totaled approximately $142 million as of
December 31, 2001. Since the change in classification for these investments as
"Available for Sale" was effective as of December 31, 2001, the Company reduced
shareholders' equity by the difference between fair value and book value on its
investment portfolio as of that date, net of tax. The amount of this charge to
shareholders' equity was approximately $700,000, or a $0.22 reduction in
year-end book value per share. The Company's total shareholders' equity as of
December 31, 2001, adjusted for this unrealized depreciation of its "Available
for Sale" investment portfolio at that date, was approximately $42.9 million,
representing a book value of $13.63 per share. Total assets at year-end 2001
stood at $552 million, including almost $350 million in traditional residential
mortgages and consumer or commercial loans.

RESULTS OF OPERATIONS
- ---------------------

The Company incurred a net loss for the first quarter of 2002 in the amount of
$2,050,000 or $0.65 per diluted share compared to net income of $1,054,000 or
$0.33 per diluted share in the first quarter of 2001. The loss was mainly due to
disposition of investments, additional reserve for loan losses due to an
increase in nonperforming loans, and higher compensation and benefits costs.
These factors are discussed in further detail.

The Company disposed of most of its investments before the end of the first
quarter of 2002. The loss on disposition of these securities was approximately
$3,212,000, or approximately $1,900,000 after tax or $0.61 per diluted share.
The liquidation had no effect on the Company's earnings for the fourth quarter
of 2001. However, consistent with accounting principles for "Available for Sale"
securities, the Company will record the after-tax difference between fair value
and book value on its remaining investment portfolio as a charge or credit to
shareholders' equity each quarter. Because of the liquidation of most of its
investments during the first quarter of 2002 and the current market value of its
remaining investment portfolio, the reduction in equity recorded at December 31,
2001, was largely reversed in the first quarter of 2002. The funds from the
investments liquidation were subsequently reinvested in instruments that are
thought to be less interest-rate sensitive, or were used to pay down a portion
of funds borrowed from the Federal Home Loan Bank.

During the first quarter of 2002, the loan volume increased $14,598,000 compared
to the first quarter of 2001, but the mortgage loan volume, which accounted for
$10,160,000 of the increase in loan volume, consisted of fixed rate loans that
are normally sold to the secondary market. The loans sold during the first three
months of March 31, 2002 was $21,060,000 and the total outstanding loans
decreased $9,088,000 or 2.58%, during the quarter to $343,025,000 at March 31,
2002, from $352,113,000 at December 31, 2001. The mortgage loans held for sale
decreased to $3,064,000 at March 31, 2002, from $5,290,000 at December 31, 2001.
See comments in other income section for detail of gains on loans sold.

The net interest spread (difference between yield on interest-earning assets and
cost on interest-bearing liabilities) increased 8 basis points during the first
quarter 2002 compared to the first quarter 2001. The change is due to a decrease
in yield of 1.09% on average interest-earning assets offset by a 1.17% reduction
in the cost of interest-bearing average liabilities. The change in yields and
cost of funds during 2002 is the result of general reductions in interest rates
since March 2001.

The following table summarizes the Company's average net interest-earning assets
and average interest-bearing liabilities with the accompanying average rates for
the first quarter of 2002 and 2001:

Three Months Ended March 31,
----------------------------
2002 2001
---- ----
(Dollars in Thousands)
----------------------

Average interest-earning assets $505,724 $504,213
Average interest-bearing liabilities 472,378 473,238
---------------------------

Net interest-earning assets $ 33,346 $ 30,975
===========================

Average yield on / cost of:
Interest-earning assets 6.89% 7.98%
Interest-bearing liabilities 4.50% 5.67%
---- ----
Net interest spread 2.39% 2.31%
==== ====

Net interest income for the first quarter of 2002 was $3,348,000 and was
$40,000, or 1.21%, more than the $3,308,000 recorded during the first quarter of
2001. This slight increase is due to lower interest income partially offset by
lower interest expense. The $1,335,000 decrease in interest income on average
interest-earning assets is a combination of an increase of $1,228,000 because of
the increase in higher average balances less $2,563,000 due to lower rates. The
decrease of $1,375,000 in cost of interest-bearing liabilities is a combination
of an increase of $2,140,000 from higher average balances less $3,515,000 from
lower rates. The net interest margin ratio, which is net interest income divided
by average earning assets, increased slightly to 2.68% for the first quarter
2002 compared to 2.66% for the first quarter of 2001. The following table sets
forth the details of the rate and volume change for the first quarter of 2002
compared to first quarter 2001.

(Dollars in thousands)
First quarter Ended March 31,
2002 vs. 2001
-------------
(Dollars in thousands)
Increase (Decrease)
Due to Change in
----------------
Volume Rate Net Change

Interest Income:
Loans $ (907) $ (855) $ (1,762)
Other interest-earning assets 2,135 (1,708) 427
------- ------- --------
Total interest-earning assets 1,228 (2,563) (1,335)
Interest Expense:
Deposits 2,827 (3,412) (585)
FHLB advance and other loans (687) (103) (790)
------- ------- --------
Total interest-bearing liabilities 2,140 (3,515) (1,375)
------- ------- --------
Change in net interest income $ (912) $ 952 $ 40
======= ======= ========

The following table summarizes the Company's non-performing assets at:

(In thousands)
--------------

March 31, December 31,
2002 2001
----------- -------------

Loans:
Non-accrual $ 9,795 $ 2,178
Over 90 days delinquent 920 395
Real estate owned 448 125
------- -------

Total $11,163 $ 2,698
======= =======

The Company's non-performing loans increased $8,142,000 in the first quarter
2002. Because of this, and as a precautionary move reflecting recent weakness in
the general economy, the Company strengthened its reserve for loan losses by
$1,250,000 during the quarter. The Company took this action even though none of
the underlying loans or leases related to the additional charge has been written
off.

The increase in non-performing loans as of March 31, 2002 is primarily due to
one commercial real estate loan with an outstanding balance of $2,233,000 and
one lease receivables pool with an outstanding balance of $5,598,482.

The commercial loan is for a condominium project in Bloomington, Indiana and is
collateralized both by the subject real estate and personal guarantees of the
borrowers. The lease is for participation in a pool of lease receivables, of
which, one is in default.

In June and September 2001, the Company purchased two separate pools of lease
receivables totaling $12,003,000, consisting primarily of equipment leases. Each
lease within each pool includes a surety bond by one or two insurers, which
guarantees payment of all amounts due under the lease in event of default by the
lessee. Additionally, each pool of leases is covered by a sales and service
agreement with the insurer. The surety on one pool of leases has been making
lease payments, with reservation of rights, to the investors as the lease
payments become due under the surety agreement. The outstanding balance due the
Company at May 14, 2002 on this lease pool totaled $5,515,991. The second lease
pool is past due since January 20, 2002. At May 14, 2002, the outstanding
balance of this pool totaled $5,598,482. The Company believes the surety bonds
on all of the leases provided adequate collateral in the event individual leases
default. However, the Company has filed suit against the surety bond company
responsible for the past due lease receivable.

The total provision for loan losses was $1,250,000 during the first quarter of
2002 compared to $90,000 during the same period in 2001. First quarter 2002 had
net charge-offs (charge-offs less recoveries) of $21,000 compared to the first
quarter 2001, which had net recoveries of $5,000.

Management believes the allowance for loan losses is adequate and that
sufficient provision has been provided to absorb any losses, which may
ultimately be incurred on non-performing loans and the remainder of the
portfolio. The allowance for loan losses as a percentage of loans was 0.86% and
0.49% at March 31, 2002 and December 31, 2001, respectively.

Total other income declined $3,178,000 for the first quarter 2002 from $901,000
in the same period during 2001. As stated earlier, loss on the sale of
investment securities in the first quarter 2002 was $3,212,000. Sales of loans
to the secondary market increased and the $105,000 gain on these sales in the
first quarter 2002 was up from $34,000 in 2001. Increase in the cash surrender
value of life insurance was down $115,000 or 38.98%. The adjustments are
necessary to reflect the cash surrender values for policies. Gain on mortgage
servicing rights for the first quarter 2002 was up $88,000, or 214.63%, to
$129,000 from $41,000 in the same period during 2001.

Total other expense increased $573,000, or 21.62%, in the first quarter 2002 to
$3,224,000 from $2,650,000 for the same period in 2000. Salary and benefits
expense is the main reason for the increase. Salary and benefits expense for the
first quarter 2002 was up $540,000, or 34.42%, to $2,109,000 from $1,569,000 in
the same period during 2001. Severance pay of $289,350, increased staffing,
merit pay adjustments, and pension costs are the main reasons for the increase.

FINANCIAL CONDITION
- -------------------

The Company's principal sources of funds are cash generated from operations,
deposits, loan principal repayments and advances from the Federal Home Loan Bank
("FHLB"). As of March 31, 2002, the Company's cash and interest-bearing time
deposits totaled $97,462,000, or 18.28%, of total assets. This compares with
$11,823,000,or 2.14%, of total assets at March 31, 2001. Plans are underway to
reinvest the "excess" temporary liquidity created by the sale of investments in
a way that will keep interest rate risk (discussed in Item 3 next) at
appropriate levels.

The regulatory minimum net worth requirement of 8% for ABT under the most
stringent of the three capital regulations (total risk-based capital to
risk-weighted assets) at March 31, 2002, was $22,586,000. At March 31, 2002, ABT
had total risk-based capital of $42,086,000 and a 14.91% ratio. The Company's
tier 1 capital ratio was 7.18% at March 31, 2002, which exceeded the regulatory
minimum required tier 1 capital ratio of 3.00%.

At March 31, 2002, the Company's commitments for loans in process totaled
$13,392,000, with 74% being for real estate secured loans. Management believes
the Company's liquidity and other sources of funds will be sufficient to fund
all outstanding commitments and other cash needs.

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT INTEREST RATE RISK

The Asset/Liability Committee and the Board of Directors review the Company's
exposure to interest rate changes and market risk on a quarterly basis. This
review is accomplished by the use of a cash flow simulation model using detailed
securities, loan and deposit, and market information to estimate the potential
impact of interest rate increases and decreases on the earning assets and
liabilities. The model tests the impact on the net interest income under various
interest rate scenarios by estimating the interest rate sensitivity position at
each interest rate interval. The change in the net portfolio value ("NPV") is
also calculated at each interest rate interval. This tests the interest rate
risk exposure from movements in interest rates by using interest sensitivity
analysis to determine the change in the NPV of discounted cash flows from assets
and liabilities.

NPV represents the market value of portfolio equity and is equal to the
estimated market value of assets minus the estimated market value of
liabilities. The model uses a number of assumptions, including the relative
levels of market interest rates and prepayments in mortgage loans and certain
types of callable investments. These computations do not contemplate any actions
management may undertake to reposition the assets and liabilities in response to
changes in the interest rate, and should not be relied upon as indicative of
actual results. In addition, certain shortcomings are inherent in the model of
computing NPV. Should interest rates remain or decrease below present levels,
the portion of adjustable rate loans could decrease in future periods due to
loan refinancing or payoff activity. In the event of an interest rate change,
pre-payment levels would likely be different from those assumed in the model and
the ability of borrowers to repay their adjustable rate loans may decrease
during rising interest rate environments.

Presented below is the assessment of the risk of NPV in the event of sudden and
sustained 200 basis point increases and decreases in prevailing interest rates
as of March 31, 2002.

- ------------------------------------------------------------------------------------------------------------------
NPV as Percent of
Net Portfolio Value Present Value of Assets
- ------------------------------------------------------------------------------------------------------------------
Change Dollar Dollar Percent
in Rates Amount Change Change NPV Ratio Change
- ------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)
- ------------------------------------------------------------------------------------------------------------------

+200 bp* $41,076 $ -1,555 -3.65% 7.55% -45 bp*
Base or 0% 42,631 -- -- 8.00
- -200 bp* 38,764 -3,867 -9.07% 7.50 -50 bp*
- ------------------------------------------------------------------------------------------------------------------
* basis points

Presented below is the assessment of the risk of NPV in the event of sudden and
sustained 200 basis point increases and decreases in prevailing interest rates
as of December 31, 2001.

+200 bp* $ 6,035 $ -31,953 -84.11% 1.19% -570 bp*
Base or 0% 37,988 -- -- 6.89
- -200 bp* 40,989 3,001 +7.99% 7.23 +34 bp*
- ------------------------------------------------------------------------------------------------------------------
* basis points

The decision by Management to liquidate most of the investment portfolio in
March 2002 resulted in significant improvement in the Company's interest rate
risk profile as of March 31, 2002.

NEW ACCOUNTING PRONOUNCEMENTS
- -----------------------------

In July 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 141 and 142. SFAS No. 141, "Business
Combinations" requires the use of the purchase method of accounting for all
business combinations initiated after June 30, 2001, thereby eliminating the use
of the pooling of interests method. It also provides new criteria that determine
whether an acquisition involving acquired intangible assets should be recognized
separately from goodwill. This Statement does not presently affect the Company
but would be followed in any future acquisitions.

SFAS No. 142, "Goodwill and Other Intangible Assets" is effective for the
Company in 2002, and requires that upon adoption, any goodwill recorded on an
entity's balance sheet would no longer be amortized. This would include existing
goodwill recorded at the date of adoption and any future goodwill. Goodwill will
not be amortized but will be reviewed for impairment at least once a year and
adjusted by reduction of the carrying value of goodwill if the asset is
impaired.

OTHER
- -----

The Securities and Exchange Commission ("SEC") maintains reports, proxy
information, statements and other information regarding registrants that file
electronically with the SEC, including the Company. The address is
(http://www.sec.gov).

PART II - OTHER INFORMATION

ITEM 1 - Legal Proceedings
-----------------

Not Applicable

ITEM 2 - Changes in Securities
---------------------

Not Applicable

ITEM 3 - Defaults in Senior Securities
-----------------------------

Not Applicable

ITEM 4 - Submission of Matters to a Vote of Security
-------------------------------------------
Holders
-------

Not Applicable

ITEM 5 - Other Information
-----------------

Not Applicable

ITEM 6 - Exhibits and Reports on Form 8-K
--------------------------------

a. Exhibits - None

b. Current Reports on Form 8-K. On March 25, 2002, the Company filed
---------------------------
a Current Report on Form 8-K reporting under item 5 that it had
changed the classification of its investment portfolio from
held-to-maturity to available-for-sale after a review of the
portfolio and determining that market deterioration had
fundamentally changed the interest rate risk characteristics of
the portfolio. No financial statements were filed with this
report.

______
16

SIGNATURES

AMERIANA BANCORP AND SUBSIDIARIES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

AMERIANA BANCORP

DATE: May 14, 2002 /s/ Timothy G. Clark
------------ --------------------
Timothy G. Clark
Executive Vice President
(Duly Authorized Representative)

DATE: May 14, 2002 /s/ Bradley L. Smith
------------ --------------------
Bradley L. Smith
Senior Vice President-Treasurer
(Principal Financial Officer
and Accounting Officer)