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AMERIANA BANCORP REPORTS FIRST QUARTER RESULTS
NEW CASTLE, Ind. (May 6, 2005) - Ameriana Bancorp (NASDAQ/NM: ASBI) today
announced results for the first quarter ended March 31, 2005.
Net income for the quarter totaled $760,000 or $0.24 per diluted share
versus net income of $471,000 or $0.15 per diluted share in the year-earlier
period. Net income for the first quarter of 2005 included, as previously
announced, a payment totaling $2,300,000 received in settlement of litigation
regarding certain lease pools reserved and written off in earlier periods.
Commenting on the announcement, Harry J. Bailey, President and Chief
Executive Officer, said, "The successful monetary recovery in one of two legal
actions we initiated in the Commercial Money Center ("CMC") matter provided a
welcome boost to our first quarter results. Importantly, this positive
development helped counter the market forces that still affect our business,
most notably the continued flattening of the yield curve and the further net
interest margin compression it is causing." Because of the litigation recovery,
Ameriana's provision for loan losses was a positive adjustment of $2,050,000,
versus a provision of $150,000 for the first quarter of 2004.
Net interest income for the first quarter of 2005 was $2,426,000
compared with $2,961,000 in the year-earlier period. Bailey noted that a lower
net interest margin in the first quarter, combined with a continued soft lending
environment, resulted in a decline of $535,000 or 18% in comparable net interest
income. Other income increased $180,000 or 18% primarily due to a $177,000 gain
on the sale of land, but gains on sales of loans remained below year-earlier
levels due to a lower volume of mortgage loan originations. Other expense
increased $1,350,000 or 40% primarily due to a voluntary payment of $1,100,000
toward the Company's pension liability.
Ameriana Bancorp is a bank holding company. Through its wholly owned
subsidiary, Ameriana Bank and Trust SB, the Company offers an extensive line of
banking services and provides a range of investments and securities products
through branches in the central Indiana area. As its name implies, Ameriana Bank
and Trust SB also offers trust and investment management services. The Bank has
interests in Family Financial Holdings, Inc. and Indiana Title Insurance
Company, and owns Ameriana Insurance Agency, a full-service insurance agency.
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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. 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.
AMERIANA BANCORP
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended
March 31
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2005 2004
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Interest income $ 4,657 $ 4,705
Interest expense 2,231 1,744
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Net interest income 2,426 2,961
Provision (adjustment) for loan losses (2,050) 150
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Net interest income after provision for loan losses 4,476 2,811
Other income 1,158 978
Other expense 4,701 3,351
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Income before income taxes 933 438
Income tax expense (benefit) 173 (33)
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Net income $ 760 $ 471
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Earnings per basic and diluted share $ 0.24 $ 0.15
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Weighted average shares outstanding
Basic 3,153 3,149
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Diluted 3,174 3,169
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Dividends declared per share $ 0.16 $ 0.16
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March 31 Dec. 31 March 31
2005 2004 2004
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Total assets $ 431,655 $ 428,553 $ 427,316
Cash and cash equivalents 11,746 17,053 47,603
Investment securities held to maturity 170,718 158,322 22,384
Investment securities available for sale 12,022 12,032 117,072
Loans, net 193,513 196,344 195,354
Deposits 345,181 344,047 349,641
Borrowed funds 41,092 40,390 30,065
Shareholders' equity 38,824 38,643 39,430
Loans accounted for on a non-accrual basis 5,061 5,736 7,649
Book value per share 12.31 12.26 12.52
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Contact: Ameriana Bancorp
Harry J. Bailey, (765) 529-2230