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[AMERIANA BANCORP LETTERHEAD]
Contact: Jerome J. Gassen
President and Chief Executive Officer
(765) 529-2230
AMERIANA BANCORP REPORTS FIRST QUARTER RESULTS
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COMPANY ANNOUNCES NEW STOCK REPURCHASE PROGRAM
NEW CASTLE, Ind. (May 2, 2006) - Ameriana Bancorp (NASDAQ/NM: ASBI) today
announced results for the quarter ended March 31, 2006. Highlights of the
Company's results included increases in total assets and the loan portfolio
compared with similar balances in the first quarter of 2005. Ameriana's net
income for the quarter, however, declined year over year because of a
significant lease recovery in the first quarter last year.
Ameriana also announced that its Board of Directors has approved the
repurchase of up to 225,000 shares or 7.1% of the Company's currently
outstanding common stock. Repurchases, which will be conducted through
open-market purchases or privately negotiated transactions, will be made from
time to time depending on market conditions and other factors.
Net income for the first quarter of 2006 totaled $218,000 or $0.07 per
diluted share versus net income of $760,000 or $0.24 per diluted share in the
year-earlier period. Net income for the first quarter of 2005 included a payment
totaling $2,300,000 received in settlement of litigation regarding certain lease
pools reserved and written off in earlier periods, which was offset partially by
the Company's voluntary payment of $1,100,000 toward its pension liability.
Net interest income for the first quarter of 2006 was $2,244,000
compared with $2,426,000 in the year-earlier period. The change in net interest
income reflected ongoing margin compression in the face of a flattened yield
curve and a rising-rate environment. The Company's net interest margin declined
28 basis points to 2.36% in the first quarter versus 2.64% in the year-earlier
quarter as its cost of funds rose more rapidly than the yield on
interest-earning assets.
The provision for loan losses in the first quarter of 2006 was $75,000
versus a credit to the allowance for loan losses of $2,050,000, reflecting the
previously mentioned $2,300,000 recovery. Net interest income after the
provision for loan losses was $2,169,000 in the first quarter of 2006 compared
with $4,476,000 in the first quarter of 2005.
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ASBI Reports First Quarter Results
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May 2, 2006
Other income for the first quarter of 2006 declined to $985,000 from
$1,158,000 in the year-earlier period, primarily because of gain on sale of land
in the first quarter of 2005. The land sold was adjacent to our branch lot in
Greenfield, Indiana, and was not needed for expansion purposes. Other expense
declined to $3,061,000 from $4,701,000 in the first quarter of 2004, with the
higher amount last year reflecting the voluntary pension plan contribution. The
decline in other expenses also reflected improved operational efficiencies in
the first quarter of 2006 compared with the first quarter of 2005.
Commenting on the results, Jerome J. Gassen, President and Chief
Executive Officer, said, "Although we continue to confront a difficult rate
environment - and a very competitive one from the standpoint of deposit pricing
- - we are nevertheless pleased to see the initiatives we have put in place over
the past year translate into concrete progress for Ameriana and its
shareholders. Earnings, without the unusual and significant loan loss recovery
or the voluntary pension plan contribution we recorded last year, have improved
from the first quarter of 2005. Meanwhile, our loan portfolio has increased 12%
year-over-year on the strength of our more intensive focus on commercial and
commercial real estate lending. With a new strategic plan in place, which we
have articulated on the principles of soundness, profitability and growth, we
hope to continue this progress, improve our performance, and enhance long-term
shareholder value."
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 banking centers in the central Indiana area. Ameriana owns Ameriana
Insurance Agency, a full-service insurance agency, and has interests in Family
Financial Holdings, Inc. and Indiana Title Insurance Company. Ameriana Financial
Services offers brokerage products through Linsco/Private Ledger.
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.
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ASBI Reports First Quarter Results
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May 2, 2006
AMERIANA BANCORP
UNAUDITED FINANCIAL HIGHLIGHTS
(In thousands, except per share amounts)
THREE MONTHS ENDED
MARCH 31
2006 2005
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Interest income $ 5,333 $ 4,657
Interest expense 3,089 2,231
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Net interest income 2,244 2,426
Provision (adjustment) for loan losses 75 (2,050)
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Net interest income after provision for loan losses 2,169 4,476
Other income 985 1,158
Other expense 3,061 4,701
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Income before income taxes 93 933
Income tax expense (benefit) (125) 173
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Net income $ 218 $ 760
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Earnings per basic and diluted share $ 0.07 $ 0.24
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Weighted average shares outstanding
Basic 3,196 3,153
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Diluted 3,200 3,174
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Dividends declared per share $ 0.16 $ 0.16
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MARCH 31 DEC. 31
2006 2005
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Total assets $ 443,245 $ 449,369
Cash and cash equivalents 13,984 14,270
Investment securities available for sale 164,110 168,686
Loans, net 216,224 218,291
Deposits 339,410 339,351
Borrowed funds 58,553 66,889
Shareholders' equity 35,573 35,657
Loans accounted for on a non-accrual basis 3,060 2,468
Book value per share 11.07 11.23