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                                                                   EXHIBIT 99.1


                         [AMERIANA BANCORP LETTERHEAD]


News Release

Contact:   Jerome J. Gassen
           President and Chief Executive Officer
           (765) 529-2230

                   AMERIANA BANCORP ELECTS NOT TO PARTICIPATE
           IN THE U.S. TREASURY DEPARTMENT'S CAPITAL PURCHASE PROGRAM

         NEW CASTLE, Ind. (February 23, 2009) - Ameriana Bancorp (NASDAQ:ASBI),
parent company of Ameriana Bank, SB, today announced that it will not
participate in the U.S. Treasury Department's Troubled Asset Relief Program
Capital Purchase Program. The Company received preliminary approval from the
U.S. Treasury Department for the placement of up to $9.8 million in senior
preferred stock.

         Jerome J. Gassen, President and Chief Executive Officer, stated,
"Preliminary approval was an acknowledgement of our financial strength. However,
after careful consideration of the Company's current financial condition,
capital position, 2009 outlook, expected liquidity and funding needs and the
current and potential future requirements of the program that may impose
restrictions on our business operations, the board elected not to participate in
the program. We plan to continue to implement our strategic plan to achieve
long-term value for the shareholders by expanding our footprint and product
offerings, with a focus on commercial banking."

         At December 31, 2008, we maintained a Total Risk-Based Capital Ratio of
12.87%, which exceeds the 10.00% threshold to be considered "well capitalized"
under regulatory standards.

         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 an interest in Family Financial
Holdings, Inc. Ameriana Financial Services offers securities and insurance
products through LPL Financial (Member FINRA/SIPC).

         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

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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. For discussion of these and other risks that
may cause actual results to differ from expectations, refer to the Company's
Annual Report on Form 10-K for the year ended December 31, 2007, on file with
the Securities and Exchange Commission, including the section entitled "Risk
Factors." 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.

                                      -END-