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EXHIBIT 99.1
[AMERIANA BANCORP LOGO]
News Release
Contact: Jerome J. Gassen
President and Chief Executive Officer
(765) 529-2230
AMERIANA BANCORP REPORTS RESULTS FOR THIRD QUARTER OF 2009
NEW CASTLE, Ind. (November 10, 2009) - Ameriana Bancorp (NASDAQ: ASBI), parent
company for Ameriana Bank, today announced net income was $187,000, or $0.06 per
basic and diluted share, for the third quarter ended September 30, 2009,
compared with net income of $393,000, or $0.13 per basic and diluted share, for
the third quarter of 2008. For the first nine months of 2009, Ameriana's net
loss was $392,000, or $0.13 per basic and diluted share, compared with net
income of $1.2 million, or $0.39 per basic and diluted share, in the same period
last year.
Ameriana's third quarter earnings primarily reflected the benefit of
gains on sales of securities that helped offset a significant increase in FDIC
insurance and higher credit costs. The provision for loan losses and write-downs
of other real estate owned ("OREO") and repossessed property underscored the
continuing weak economic conditions that were marked by increasing unemployment
levels and declining home prices that continue to pressure borrowers.
Additionally, the Company continues to absorb initial operating costs associated
with its expansion into the metropolitan Indianapolis area, as these new banking
centers continue to ramp-up toward profitability.
Commenting on the announcement, Jerome J. Gassen, President and Chief
Executive Officer, said, "As we expected, business conditions remained
challenging during the third quarter. Both commercial and retail borrowers
continued to be reluctant to borrow, and the level of non-performing loans rose
under the weight of ongoing economic weakness. Considering these strong
headwinds, we are especially pleased to report a return to profitability in the
third quarter, which reflects underlying strategies to deleverage our balance
sheet, strengthen capital, and better position Ameriana to participate in an
eventual economic recovery.
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ASBI Reports Third Quarter 2009 Results
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November 10, 2009
"Clearly, there is little visibility on when a recovery may begin in
earnest, even though there are some signs across the country and in our markets
that conditions are stabilizing and the current credit cycle has run its
course," Gassen added. "Until we see greater traction in this regard, including
improvements in the housing market, our credit costs likely will remain at
elevated levels."
Ameriana's net interest income continued to increase in the third
quarter of 2009, reflecting the Company's efforts to reduce its average funding
costs and its greater focus on commercial lending, which has contributed to the
increase in Ameriana's loan portfolio compared with the year-earlier quarter.
For the third quarter of 2009, Ameriana's net interest margin on a fully
tax-equivalent basis increased to 3.13%, or 27 basis points ahead of the second
quarter of 2009, marking the first upturn in net interest margin in more than a
year. This improvement primarily reflected the positive impact of an increased
proportion of higher-yielding commercial loans in the loan portfolio, as well as
Ameriana's increased focus on core deposits, allowing less stable public funds
deposits to run off. For the first nine months of 2009, Ameriana's net interest
margin on a fully tax-equivalent basis was 2.99% versus 3.09% for the
year-earlier period.
As a consequence of a continued weak economy, the total of the Bank's
non-performing loans, OREO and repossessed assets increased to $13.9 million at
September 30, 2009, from $10.4 million at June 30, 2009, and $8.6 million as of
September 30, 2008. The Company remains diligent in its collection activities by
working with borrowers where possible for reasonable solutions, but the ongoing
decline in asset values often makes acceptable resolution of problem loans
impossible. As part of its efforts to manage credit issues, the Company
increased the provision for loan losses in the third quarter of 2009 compared
with the year-earlier quarter, but the provision of $320,000 was still $295,000
lower than the $615,000 recorded in the second quarter of 2009. The Company's
allowance for loan losses reached $3.9 million or 1.16% of total loans at
September 30, 2009, up from $3.0 million or 0.92% of total loans at December 31,
2008, and $3.0 million or 0.95% of total loans at September 30, 2008.
Ameriana's expansion into the Indianapolis market, with the opening of
three banking centers over the past 13 months, also has contributed to the
Bank's growth and has served as an additional source of new deposits. Total
deposits over the past year increased to $346.3 million from $320.8 million at
September 30, 2008.
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ASBI Reports Third Quarter 2009 Results
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November 10, 2009
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.
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.
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ASBI Reports Third Quarter 2009 Results
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November 10, 2009
AMERIANA BANCORP
UNAUDITED FINANCIAL HIGHLIGHTS
(In thousands, except per share amounts)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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2009 2008 2009 2008
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Interest income $ 5,655 $ 5,848 $ 17,058 $ 17,642
Interest expense 2,345 2,841 7,657 8,897
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Net interest income 3,310 3,007 9,401 8,745
Provision for loan losses 320 205 1,273 797
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Net interest income after provision for loan
losses 2,990 2,802 8,128 7,948
Other income 1,764 1,028 3,562 3,189
Other expense 4,616 3,462 12,814 10,325
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Income (loss) before income taxes 138 368 (1,124) 812
Income tax benefit 49 25 732 347
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Net income (loss) $ 187 $ 393 $ (392) $ 1,159
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Earnings (loss) per share:
Basic $ 0.06 $ 0.13 $ (0.13) $ 0.39
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Diluted $ 0.06 $ 0.13 $ (0.13) $ 0.39
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Weighted average shares outstanding:
Basic 2,989 2,989 2,989 2,989
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Diluted 2,989 2,989 2,989 2,989
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Dividends declared per share $ 0.01 $ 0.04 $ 0.09 $ 0.12
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SEPT. 30, DEC. 31, SEPT. 30,
2009 2008 2008
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Total assets $ 456,613 $ 463,502 $ 467,802
Cash and cash equivalents 10,424 8,449 17,806
Investment securities available for sale 54,059 75,371 78,221
Loans receivable 333,467 325,526 317,739
Allowance for loan losses 3,870 2,991 3,014
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Loans, net 329,597 322,535 314,725
Allowance for loan losses as a percentage of
loans receivable 1.16% 0.92% 0.95%
Non-performing loans $ 8,283 $ 6,219 $ 4,516
Allowance for loan losses as a percentage of
non-performing loans 46.7% 48.1% 66.8%
Deposits:
Non-interest-bearing $ 27,396 $ 22,070 $ 22,806
Interest-bearing 318,869 302,336 297,969
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346,265 324,406 320,775
Borrowed funds $ 68,435 $ 97,735 $ 105,235
Shareholders' equity 33,330 33,776 32,982
Book value per share 11.15 11.30 11.03