AMERIANA NEWS RELEASE

Ameriana Bancorp
2118 Bundy Avenue
PO Box H
New Castle, Indiana                          Contact:  Jerome J. Gassen
47362-1048                                             President and
765-529-2230/1-800-487-2118                            Chief Executive Officer
                                                       (765) 529-2230

                 AMERIANA BANCORP ANNOUNCES LOSS ON DISPOSITION
                        OF AVAILABLE-FOR-SALE SECURITIES

NEW CASTLE, Ind. (November 22, 2006) - Ameriana Bancorp (NASDAQ:ASBI) today
announced that it has sold approximately $34.0 million in available-for-sale
government agency securities, which resulted in an estimated after-tax loss in
the fourth quarter of approximately $542,000 or $0.17 per share. The Company
took this step in an effort to improve its interest rate risk position, using
the proceeds from the sale of the fixed-rate securities to repay certain
short-term, variable-rate advances. In addition to de-leveraging the Company's
balance sheet, this action is expected to improve net interest margin and
increase net interest income in future periods, enabling the Company to recover
the loss on sale through increased earnings over the next two years.

      Ameriana also announced that, as part of management's periodic review of
its securities portfolio, the Company will record a charge of approximately
$339,000 or $0.11 per share in the fourth quarter for other-than-temporary
impairment of available-for-sale equity securities. Management currently is
evaluating the potential disposition of a portion of these securities.

      Commenting on the announcements, Jerome J. Gassen, President and Chief
Executive Officer, said the after-tax impact of these charges, a combined total
of $881,000 or $0.28 per share, is expected to have only a minimal effect on
year-end shareholders' equity. He noted that the previously unrecognized losses
from the aforementioned securities were already reflected in accumulated other
comprehensive loss within shareholders' equity. "These actions will create a
more efficient balance sheet that will generate higher returns for our
shareholders going forward," he said.

      Ameriana Bancorp is a bank holding company. Through its wholly owned
subsidiary, Ameriana Bank, 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 securities and insurance 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.