1


                         [AMERIANA BANCORP LETTERHEAD]

News Release

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


                         AMERIANA BANCORP BOARD REDUCES
                   QUARTERLY CASH DIVIDEND TO $0.01 PER SHARE


NEW CASTLE, Ind. (August 31, 2009) - Jerome J. Gassen, President and Chief
Executive Officer of Ameriana Bancorp (NASDAQ: ASBI), today announced that the
Company's Board of Directors has reduced Ameriana's quarterly cash dividend rate
to $0.01 per share from the previous rate of $0.04 per share. The quarterly
dividend is payable on October 2, 2009, to shareholders of record as of
September 11, 2009.

         Commenting on the announcement, Gassen said, "We have taken this action
to preserve capital and help maintain a sound balance sheet in the face of a
challenging business climate and ongoing uncertainty regarding the breadth and
depth of the current recession. Ameriana continues to approach capital
management in a careful and conservative way, and maintaining a strong capital
position is key to the successful attainment of our long-term growth objectives
and the continued expansion of the Ameriana brand. Accordingly, we believe it is
prudent and in the best long-term interest of shareholders to reduce our
dividend payout to a level we consider more realistically sustainable
considering the current environment. We know that cash dividends are important
to most shareholders, and it is our intent to increase the cash dividend in the
future as economic and operating conditions improve."

         Ameriana Bancorp is a bank holding company. Through its wholly owned
subsidiary, Ameriana Bank, 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 Bank owns Ameriana
Insurance Agency, a full-service insurance agency, Ameriana Financial Services,
which offers securities and insurance products through LPL Financial (Member
FINRA/SIPC), and Ameriana Investment Management.

                                     -MORE-

 2

ASBI Announces Quarterly Dividend
Page 2
August 31, 2009


         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. 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, 2008, 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-

2118 Bundy Avenue
PO Box H
New Castle, IN 47362-1048
765.529.2230
Fax 765.521.7628
www.ameriana.com
[GRAPHIC OMITTED]