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, 1998 Commission File Number: 0-18392
-------
Ameriana Bancorp
Indiana 35-1782688
- ------------------------------- ---------------------
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
2118 Bundy Avenue, New Castle, Indiana 47362-1048
- -------------------------------------- ----------
(Address of principal executive offices (Zip Code)
Registrant's telephone number, including area code (765)529-2230
-------------
Securities registered pursuant to Section 12(g) of Act:
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 11, 1998, there were issued and outstanding
3,252,315 shares of the registrant's common stock.
AMERIANA BANCORP AND SUBSIDIARIES
CONTENTS
PART I - FINANCIAL INFORMATION Page No.
--------
ITEM 1 - Financial Statements
Consolidated Statements of Condition as of
March 31, 1998 and December 31, 1997. . . . . . . . 2
Consolidated Statements of Income for the
Three Months Ended March 31, 1998 and 1997. . . . . 3
Consolidated Statements of Cash Flows for
the Three Months Ended March 31, 1998
and 1997 . . . . . . . . . . . . . . . . . . . . . 4
Notes to Consolidated Financial Statements. . . . . 5
ITEM 2 - Management's Discussion and Analysis
of Financial Condition and Results
of Operations . . . . . . . . . . . . . . . 7
PART II - OTHER INFORMATION . . . . . . . . . . . . . . 13
SIGNATURES. . .. . . . . . . . . . . . . . . . . . . . . 14
PART I - ITEM I
AMERIANA BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
March 31, December 31
1998 1997
------------ -----------
ASSETS
Cash on hand and in other institutions $ 5,512,064 $ 5,066,177
Interest-bearing deposits 21,578,720 10,142,902
Investment securities held to maturity (market
value: 1998--$35,962,585; 1997--$35,300,000) 36,082,529 35,394,512
Stock in Federal Home Loan Bank (at cost, which
approximates market value) 3,430,100 3,412,100
Mortgage-backed securities held to maturity
(market value: 1998--$28,108,000;
1997--$30,164,000) 27,850,385 29,996,499
Mortgage loans held for sale 2,169,459 1,419,471
Loans receivable 279,467,202 294,133,100
Allowance for loan losses (1,162,309) (1,163,490)
------------ ------------
Net loans receivable 278,304,893 292,969,610
Real estate owned 195,058 159,994
Premises and equipment 6,180,241 5,909,205
Mortgage servicing rights 662,047 526,367
Investments in unconsolidated subsidiaries 1,523,365 1,578,365
Goodwill 837,660 69,700
Other assets 4,164,193 4,222,600
------------ ------------
Total assets $388,490,714 $390,867,502
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing $ 12,230,693 $ 8,746,447
Interest-bearing 309,118,035 313,470,716
------------ ------------
Total deposits 321,348,728 322,217,163
Advances from Federal Home Loan Bank 15,021,697 16,015,615
Drafts payable 2,415,494 4,225,472
Advances by borrowers for taxes and insurance 1,166,044 955,121
Other liabilities 3,329,752 3,019,261
------------ ------------
Total liabilities 343,281,715 346,432,632
Shareholders' Equity:
Preferred stock (5,000,000 shares
authorized--none issued) -- --
Common stock ($1.00 par value; authorized
15,000,000 shares; issued shares:
1998 - 3,252,015; 1997 - 3,233,207) 3,252,015 3,233,207
Additional paid-in capital 7,818,680 7,571,955
Retained earnings 34,138,304 33,629,708
------------ ------------
Total shareholders' equity 45,208,999 44,434,870
------------ ------------
Total liabilities and shareholders'
equity $388,490,714 $390,867,502
============ ============
See accompanying notes.
2
AMERIANA BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Month Ended
March 31,
---------------------
1998 1997
------- -------
Interest Income:
Interest on loans $5,793,998 $ 5,600,395
Interest on mortgage-backed securities 498,759 637,774
Interest on investment securities 493,798 948,345
Other interest and dividend income 266,079 110,580
---------- -----------
Total interest income 7,052,634 7,297,094
Interest Expense:
Interest on deposits 3,834,762 3,910,099
Interest on Federal Home Loan Bank
advances 172,114 380,746
---------- -----------
Total interest expense 4,006,876 4,290,845
---------- -----------
Net Interest Income 3,045,758 3,006,249
Provision For Loan Losses 36,000 36,000
---------- -----------
Net Interest Income After Provision
for Loan Losses 3,009,758 2,970,249
Other Income:
Net loan servicing fees 45,358 87,412
Other fees and service charges 178,259 169,083
Brokerage and insurance commissions 345,953 264,007
Loss on investments in unconsolidated
subsidiaries (55,000) (50,000)
Gains on sales of loans 268,047 117,421
Other 42,858 16,303
---------- -----------
Total other income 825,475 604,226
Other Expense:
Salaries and employee benefits 1,256,488 1,294,055
Net occupancy expense 320,028 302,331
Federal insurance premium 50,840 49,747
Data processing expense 76,238 75,819
Goodwill 16,955 7,080
Other 549,102 469,327
---------- -----------
Total other expense 2,269,651 2,198,359
---------- -----------
Income before income taxes 1,565,582 1,376,116
Income Taxes 536,663 499,425
---------- -----------
Net Income $1,028,919 $ 876,691
========== ===========
Basic Earnings Per Share $ .32 $ 0.27
========== ===========
Diluted Earnings Per Share $ 0.31 $ 0.27
========== ===========
Dividends Declared Per Share $ 0.16 $ .15
========== ===========
See accompanying notes.
3
AMERIANA BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
-----------------
1998 1997
---- ----
OPERATING ACTIVITIES
Net income $ 1,028,919 $ 876,691
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for losses on loans and real estate
owned 36,000 36,000
Depreciation and amortization 150,419 150,475
Mortgage servicing rights amortization 45,957 29,310
Goodwill amortization 16,955 7,080
Deferred income taxes 14,620 --
Loans originated for sale (26,316,496) (4,963,473)
Proceeds from sales of loans 25,610,197 5,080,894
Gains on sales of loans (268,047) (117,421)
Gains on sales of real estate owned (2,651) (11,192)
Increase in other assets (908,145) (75,500)
Decrease in drafts payable (1,809,978) (2,190,298)
Increase in other liabilities 503,737 2,899,578
----------- -----------
Net cash provided by (used) operating
activities (1,674,155) 1,722,144
INVESTING ACTIVITIES
Purchase of investment securities (22,385,126) (5,400,000)
Proceeds from maturity of securities held
to maturity 5,000,000 --
Proceeds from calls of securities held to
maturity 16,700,000 --
Principal collected on mortgage-backed securities 2,115,189 1,923,058
Net change in loans 14,514,825 (3,911,321)
Proceeds from sale of real estate owned 71,823 39,100
Net purchases of premises and equipment (394,533) (455,032)
Investment in unconsolidated affiliate 55,000 50,000
Other investing activities (7,232) (25,589)
----------- -----------
Net cash provided (used) by investing
activities 15,669,946 (7,779,784)
FINANCING ACTIVITIES
Increase in demand and passbook deposits 14,275,004 100,951
Increase (decrease) in certificates of deposit (15,143,439) 3,338,672
Advances from Federal Home Loan Bank 4,000,000 25,900,000
Repayment of Federal Home Loan Bank advances (4,993,918) (24,310,096)
Proceeds from exercise of stock options 265,532 134,856
Purchase of common stock - (835,014)
Cash dividends paid (517,265) (493,698)
----------- -----------
Net cash provided (used) by financing
activities (2,114,086) 3,835,671
----------- -----------
Increase (decrease) in cash and cash equivalents 11,881,705 (2,221,969)
Cash and cash equivalents at beginning of year 15,209,079 8,944,040
----------- -----------
Cash and cash equivalents at end of year $27,090,784 $ 6,722,071
=========== ===========
Supplemental information:
Interest paid $ 2,133,583 $ 2,413,925
Income taxes paid 150,000 -
See accompanying notes.
4
AMERIANA BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A -- BASIS OF PRESENTATION
The unaudited interim consolidated 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 principals 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,
1998, and the results of operations and changes in cash flows
for the three-month periods ended March 31, 1998 and 1997. A
summary of the Campany's significant accounting policies is set
forth in Note 1 of Notes to Consolidated Financial Statements in
the Campany's annual report on Form 10-K for the year ended
December 31, 1997.
NOTE B - - SHAREHOLDERS' EQUITY
On February 23, 1998, the Board of Directors declared a
quarterly cash dividend of $.16 per share. This dividend was
accrued for payment to shareholders of record on March 13, 1998,
and was paid on April 3, 1998.
During the quarter ended March 31, 1998, 18,808 new shares were
issued via exercise of stock options and total equity was
increased by $265,532 due to cash proceeds from these stock
option exercises.
Earnings per share were computed as follows:
Three Months Ended March 31,
--------------------------------
1998 1997
- ------------------------------------------------------------------------------------------
Weighted Per Weighted Per
Average Share Average Share
Income Shares Amount Income Shares Amount
- ------------------------------------------------------------------------------------------
Basic Earnings per Share:
Income available to
Common shareholders $1,028,919 3,242,783 $.32 $876,691 3,288,207 $.27
Effect of Dilutive Stock Options -- 53,684 -- 18,779
- ------------------------------------------------------------------------------------------
Diluted Earnings Per Share:
Income available to
common shareholders and
assumed conversions $1,028,919 3,296,467 $.31 $876,691 3,306,986 $.27
- ------------------------------------------------------------------------------------------
NOTE C - - RECLASSIFICATIONS
Certain reclassifications of 1997 amounts have been made to
conform to the 1998 presentation.
NOTE D - - NEW BRANCH OFFICE
The Company finalized the purchase of deposits and the branch
location in Morristown, Indiana from National City Bank in
Indiana effective February 27, 1998. The transaction was
recorded under the purchase method of accounting. Deposits
totaling over $12 million were purchased for a premium of
$868,000.
5
NOTE E - - PROPOSED TRANSACTION
In September 1997, the Company entered into a Reorganization and
Merger Agreement ("Agreement") to acquire the outstanding shares
of common stock of the Cardinal State Bank ("Cardinal"),
Maineville, Ohio, for approximately $3,750,000. Pursuant to the
Agreement, holders of outstanding shares of Cardinal will have
the right to convert such shares into a combination of cash and
Company common stock and/or Company promissory notes. The
transaction will be recorded under the purchase method of
accounting. Consummation of the transaction is subject to
approval of the OTS and bank regulatory agencies and is expected
to be completed during the second quarter of 1998. At December
31, 1997, assets, deposits and equity of Cardinal were
$24,283,000, $21,697,000 and $2,425,000, respectively.
6
AMERIANA BANCORP AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
General
- -------
The largest components of the Campany's total revenue and total
expenses are interest income and interest expense, respectively.
Consequently, the Campany'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 Campany'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 an relative amounts of
interest-earning assets and interest bearing liabilities.
RESULTS OF OPERATIONS
- ---------------------
During the first quarter of 1998, the Company was compelled by
low fixed rate mortgage rates to make fixed rate loans and sell
them to the secondary market. The past theory of emphasizing
variable rate mortgage loans and keeping them in the portfolio
could not be continued because consumers were satisfied with the
low fixed rates. The loans outstanding decreased $14,665,898
and 4.99% to $279,467,202 during the quarter. This decrease is
due to not retaining new loans made and selling them to the
secondary market and to refinancing of existing loans in the
portfolio, which were also sold to the secondary market. The
mortgage loans held for sale increased during the first quarter,
but these are loans that have been committed to be sold to the
secondary market but had not been delivered as of the end of the
period.
Sales of loans to the secondary market set a record with the
first quarter 1998 totaling $25,610,197 compared to $5,080,894
during the first quarter of 1997. The Company retains servicing
on all loans sold to the secondary market. The Company has
actually sold more loans to the secondary market during the
first quarter of 1998 than were sold during the whole year of
1997. See comments on other income for detail of gains on loans
sold.
The net interest spread (difference between yield on interest
earning assets and cost on interest bearing liabilities) has
increased during the first quarter of 1998 compared to first
quarter 1997 due to a reduction of .09% in cost of liabilities
offset by a reduction of .02% in the yield on interest earning
assets. This reduction of the cost of liabilities has resulted
from decreased borrowings from the Federal
7
Home Loan Bank and decreased wholesale deposits that have a
higher cost. These changes where made possible by the mortgage
loan repayments already discussed and the purchase of the $12
million of deposits with the new branch.
The following table summarizes the Campany's average net
interest earning assets and interest-bearing liabilities with
the accompanying average rates for the first quarter of 1998 and
1997:
(Dollars in Thousands)
----------------------
Three Months Ended March 31,
----------------------------
1998 1997
---- ----
Interest-earning assets $371,376 $383,404
Interest-bearing liabilities 322,153 339,353
Net interest-earning assets $ 49,223 $ 44,051
Average yield on:
Interest-earning assets 7.70% 7.72%
Interest-bearing liabilities 5.04 5.13
Net interest spread 2.66% 2.59%
Net interest income for the first quarter 1998 was $3,045,758
and was $39,509 and 1.31% more than $3,006,249 during the first
quarter of 1997. This increase is due to lower interest income
being more than offset by lower interest expense. The $244,000
decrease in interest income on interest-earning assets is a
combination of a decrease of $214,000 because of lower average
outstanding assets plus $30,000 because of reduced rates on
average interest-earning assets. The $284,000 decrease in
interest expense is a combination of a decrease of $253,000
because of lower average outstanding interest-bearing
liabilities plus $31,000 because of reduced rates on average
interest-bearing liabilities. The net interest margin ratio,
which is net income divided by average earning assets, increased
to 3.33% for the first quarter 1998 compared to 3.18% for the
first quarter of 1997.
The provision for loan losses was $36,000 during both 1998 and
1997. Net charge-offs were $37,181 and $34,404 for 1998 and
1997 first quarters, respectively. The following table
summarizes the Campany's non-performing assets at:
(Dollars in Thousands)
----------------------
March 31, December 31, March 31,
1998 1997 1997
---- ---- ----
Loans:
Non-accrual $ 497 $ 877 $ 664
Over 90 days delinquent 91 124 216
Real estate owned 195 160 259
------ ------ ------
Total $ 783 $1,161 $1,139
------ ------ ------
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 at
8
the end of the period was .42%, .40% and .38% at March 31, 1998,
December 31, 1997 and March 31, 1997, respectively.
Total other income for the first quarter 1998 increased $221,249
and 36.62% to $825,475 from $604,226 in the same period during
1997. As noted earlier, gains on sales of loans to the
secondary market were at record levels and gains increased
$150,626 and 128.28% to $268,047 in 1998 from $117,421 during
the same period in 1997. The Company also had good increases in
income from our insurance agency and title insurance company as
brokerage and insurance commissions increased $81,946 and 31.04%
to $345,953 in 1998 from $264,007 during the first quarter of
1997. The decrease of $42,054 and 48.11% to $43,358 in 1998
from $87,412 during 1997 in net loan servicing fees is due to
increased amortization of purchased servicing rights due to loan
payoffs.
Total other expense increased $71,292 and 3.24% in 1998 to
$2,269,651 from $2,198,359 during 1997. The salary expense was
down $37,567 and 2.9% while net occupancy expense was up $17,697
and 5.85%. The Company did add a new branch for one month in
1998, as previously mentioned, and goodwill expense increased
$9,875 and 139.48% during 1998. This new branch can be expected
to increase other expense in the future. The efficiency ratio,
which is other expense divided by net income before provision
plus other income, increased to 58.63% during the first quarter
of 1998 from 60.89% during the first quarter of 1997.
FINANCIAL CONDITION
- -------------------
The Campany's principal sources of funds are cash generated from
operations, savings deposits, loan principal repayments and
advances from the Federal Home Loan Bank ("FHLB"). As of March
31, 1998, the Campany's cash and investments totaled $63,173,313
and 16.26% of total assets. This compares with $50,603,591 and
12.95% of total assets at December 31, 1997. The Campany's
banking subsidiaries, Ameriana Savings Bank ("ASB") and Deer Park
Federal (?DPF?) have regulatory liquidity ratios of 14.63% and
10.63%, respectively, which exceeds the 4.0% liquidity base set
by the Office of Thrift Supervision ("OTS").
The banking subsidiaries in the past and DPF currently employs a
strategy to increase interest income through the purchase of
investments with the proceeds of advances from the FHLB. All
FHLB borrowings are currently all by DPF, and have decreased
$993,918 and 6.21% to $15,021,697 during the first quarter of
1998 from $16,015,615 at December 31, 1997.
The regulatory minimum net worth requirement for ASB and DPF
under the most stringent of the three capital regulations (total
risk-based capital to risk-weighted assets) at March 31, 1998,
was $14,155,000 and $2,977,000, respectively. At March 31,
1998, ASB had total risk based capital of $33,628,000 and DPF
had $5,753,000.
At March 31, 1998, the Campany's commitments for loans in
process totaled $10,461,000, with 81.96% being for single-family
residential mortgage loans. Management believes the Campany's
liquidity and other sources of funds will be sufficient to fund
all outstanding commitments and other cash needs.
9
INTEREST RATE RISK
- ------------------
ASB and DPF are subject to interest rate risk to the degree that
their interest-bearing liabilities, primarily deposits, mature
or reprice at different rates than their interest-earning
assets. Although having liabilities that mature or reprice less
frequently on average than assets will be beneficial in times of
rising interests rates, such an asset/liability structure will
result in lower net income during periods of declining interest
rates, unless offset by other factors.
It is important to ASB and DPF to manage the relationship
between interest rates and the effect on their net portfolio
value ("NPV"). This approach calculates the difference between
the present value of expected cash flows from assets and the
present value of expected cash flows from liabilities, as well
as cash flows from off-balance sheet contracts. Assets and
liabilities are managed within the context of the marketplace,
regulatory limitations and within its limits on the amount of
change in NPV, which is acceptable given certain interests rate
changes.
The OTS issued a regulation, which uses a net market value
methodology to measure the interest rate risk exposure of
savings associations. Under this OTS regulation an
institution's "normal" level of interest rate risk in the event
of an assumed change in interest rates is a decrease in the
institution's NPV in an amount not exceeding 2% of the present
value of its assets. Savings associations with over $300
million in assets or less than a 12% risk-based capital ratio
are required to file OTS Schedule CMR. Data from Schedule CMR
is used by the OTS to calculate changes in NPV (and the related
"normal" level of interest rate risk) based upon certain interest
rate changes (discussed below). Associations which do not meet
either of the filing requirements are not required to file OTS
Schedule CMR, but may do so voluntary. ASB, with assets over
$300 million, is required to file the Schedule. As DPF does not
meet either of these requirements, it is not required to file
Schedule CMR, although it does so voluntarily. Under
regulation, associations which must file are required to take a
deduction (the interest rate risk capital component) from their
total capital available to calculate their risk based capital
requirement if their interest rate exposure is greater than
"normal". The amount of that deduction is one-half of the
difference between (a) the institution's actual calculated
exposure to a 200 basis point interest rate increase or decrease
(whichever results in the greater pro forma decrease in NPV) and
(b) its "normal" level of exposure which is 2% of the present
value of its assets.
The following information and schedule for DPF and the
subsequent information and schedule for ASB are required to be
presented as of the end of the quarter being reported upon. The
current analysis for DPF and ASB performed by the OTS as of
March 31, 1998, has not been received from the OTS and the
following interest rate risk measurements for DPF and the
subsequent rate risk measurements for ASB are being submitted
with information from the OTS analysis as of December 31, 1997.
Management believes there has been no significant change in the
interest rate risk measures since December 31, 1997, for either
DPF or ASB.
10
Presented below, as of December 31, 1997, is an analysis
performed by the OTS of DPF's interest rate risk as measured by
changes in NPV for instantaneous and sustained parallel shifts
in the yield curve, in 100 basis point increments, up and down
400 basis points. At March 31, 1998, 2% of the present value of
DPF'S assets was approximately $1.488 million. Because the
interest rate risk of a 200 basis point increase in market rates
(which was greater than the interest rate risk of a 200 basis
point decrease) was approximately $1.918 million at December 31,
1997, DPF would have been required to make a deduction of $215
thousand from its total capital available to calculate its risk
based capital requirement if it had been subject to the OTS's
reporting requirements under this methodology. If this
reduction of capital were required, DPF'S capital ratios would
still be in excess of OTS requirements.
- ----------------------------------------------------------------------------------------
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)
- ----------------------------------------------------------------------------------------
+400 bp* $2,524 $-4,786 -65% 3.59% -591 bp
+300 bp 4,013 -3,298 -45% 5.55% -395 bp
+200 bp 5,392 -1,918 -26% 7.28% -222 bp
+100 bp 6,549 -792 -10% 8.65% -85 bp
0 bp 7,310 9.50%
- -100 bp 7,648 338 +5% 9.82% +33 bp
- -200 bp 7,658 348 +5% 9.76% +27 bp
- -300 bp 7,691 381 +5% 9.73% +23 bp
- -400 bp 7,986 676 +9% 9.99% +50 bp
* basis points
Presented below, as of December 31, 1997, is an analysis
performed by the OTS, of ASB's interest rate risk as measured by
changes in NPV for instantaneous and sustained parallel shifts
in the yield curve, in 100 basis point increments, up an down
400 basis points. At March 31, 1998, 2% of the present value of
ASB'S assets was approximately $6.318 million. Because the
interest rate risk of a 200 basis point increase in market rates
(which was greater that the interest rate risk of a 200 basis
point decrease) was $5.617 million at December 31, 1997, ASB
would not have been required to make a deduction from its total
capital available to calculate its risk based capital
requirement.
- ----------------------------------------------------------------------------------------
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)
- ----------------------------------------------------------------------------------------
+400 bp* $28,061 $-14,699 -34% 9.28% -591 bp
+300 bp 32,907 -9,854 -23% 10.66% -395 bp
+200 bp 37,143 -5,617 -13% 11.80% -222 bp
+100 bp 40,513 -2,248 -5% 12.67% -85 bp
0 bp 42,761 13.20%
- -100 bp 44,258 1,497 +4% 13.52% +33 bp
- -200 bp 45,743 2,982 +7% 13.82% +27 bp
- -300 bp 47,740 4,980 +12% 14.25% +23 bp
- -400 bp 50,652 7,892 +18% 14.90% +50 bp
* basis points
As with any method of measuring interest rate risk, certain
shortcomings are inherent in the method of analysis presented
above. For example, although certain assets and liabilities may
have similar maturities or periods to repricing, they may react
in different degrees
11
to changes in market interest rates. Also, the interest rates
on certain types of assets and liabilities may fluctuate in
advance of changes in market interest rates, while interest
rates on other types may lag behind changes in market rates.
Additionally, certain assets, such as adjustable-rate loans,
have features, which restrict changes in interest rates on a
short-term basis and over the life of the asset. Further, in
the event of a change in interest rates, expected rates of
prepayments on loans and early withdrawals from certificates
could likely deviate significantly from those assumed in
calculating the table. Finally, the ability of many borrowers
to service their debt may decrease in the event of an interest
rate increase. The Company considers all of these factors in
monitoring its exposure to interest rate risk.
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).
12
PART II - OTHER INFORMATION
AMERIANA BANCORP AND SUBSIDIARIES
ITEM 1 - Legal Proceedings
-----------------
No changes have taken place in regard to the legal
proceedings disclosed in the registrant's report on
Form 10-K for the year ended December 31, 1997.
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
--------------------------------
The Registrant did not file a Current Report on Form
8-K during the quarter covered by this Report.
Exhibits:
Exhibit 27 Financial Data Schedule
13
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 11, 1998 by /s/ Harry J. Bailey
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Harry J. Bailey
President and
Chief Executive Officer
(Duly Authorized Representative)
DATE: May 11, 1998 by /s/ Richard E. Welling
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Richard E. Welling
Senior Vice President-
Treasurer
(Principal Financial Officer
and Accounting Officer)