Ameriana Bancorp Reports 2012 Net Income of $1.8 Million or $0.62 Per Share

  Ameriana Bancorp Reports 2012 Net Income of $1.8 Million or $0.62 Per Share

Business Wire

NEW CASTLE, Ind. -- January 25, 2013

Ameriana Bancorp (NASDAQ: ASBI), parent company for Ameriana Bank, today
announced that earnings for the fourth quarter of 2012 increased 27% to
$577,000, or $0.19 per basic and diluted share, from $453,000, or $0.15 per
basic and diluted share, for the fourth quarter of 2011. For 2012, Ameriana's
net income increased 61% to $1.8 million, or $0.62 per basic and diluted
share, from $1.1 million, or $0.38 per basic and diluted share, in 2011. With
these results, Ameriana has remained consistently profitable for more than
three years.

Commenting on the announcement, Jerome J. Gassen, President and Chief
Executive Officer, said, "We are pleased to report solid fourth quarter
results – our 14^th consecutive profitable quarter – to cap another successful
year for Ameriana. In the fourth quarter, we achieved increased loan
production that pushed our loan portfolio to the highest level of the year,
which in turn had a positive effect on our net interest margin, as did a
one-time fourth quarter realization of a loan discount. Deposit levels also
remained relatively stable in the fourth quarter on a linked-quarter basis and
increased significantly year over year against the backdrop of an ongoing
decline in funding costs and a continued shift in deposit mix away from time
deposits. In the area of non-interest income, we were gratified by the growth
of our residential mortgage lending volume, which produced higher mortgage
banking revenue in the fourth quarter and for the year to help offset the
impact of costs associated with other real estate owned and the impact from
the decision to take considerably fewer gains on the sale of securities in
2012 versus 2011. Lastly, during the fourth quarter we reduced our personnel
costs by 12%, leading to an overall reduction of almost 7% for the year and
overall lower non-interest expense for the quarter and year." Gassen also
noted that credit quality continued to show improvement during the fourth
quarter, with non-performing loans declining 14% for the year.

"Looking ahead, we are cautiously optimistic about loan volume in the coming
year, knowing that strong competitive conditions will continue to pressure
pricing," Gassen continued. "Because of this, we also anticipate that the
banking industry will confront an even more challenging margin environment in
2013. The impact of these forces will depend largely on the depth and breadth
of the ongoing economic recovery, which in our opinion has not strengthened as
much as might be expected at this point following the recession. Still, we are
encouraged by the progress we have achieved in reducing our recurring expenses
and in continuing to improve credit quality in our loan portfolio. Over the
long term, we remain confident in the opportunities ahead for Ameriana and our
ability to enhance shareholder value."

The Bank recorded a provision for loan losses of $255,000 for the fourth
quarter of 2012, which resulted in an allowance for loan losses to total loans
ratio of 1.34% at December 31, 2012, compared with 1.35% at September 30,
2012, and 1.30% at December 31, 2011. Non-performing loans declined for the
fifth consecutive quarter to 2.43% of total net loans at December 31, 2012,
compared with 2.77% at September 30, 2012, and 2.82% at December 30, 2011.

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, and Ameriana Financial
Services, which 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 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, 2011, 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.


Unaudited Financial Highlights

(In thousands, except per share amounts)
                               Three Months Ended      Year Ended
                               December 31,            December 31,
                               2012       2011        2012        2011
Interest income                $ 4,510     $ 4,532     $ 18,032     $ 18,794
Interest expense                843       1,091     3,845      4,870  
Net interest income              3,667       3,441       14,187       13,924
Provision for loan losses       255       515       1,145      1,385  
Net interest income after
provision                        3,412       2,926       13,042       12,539

for loan losses
Other income                     1,224       1,682       5,181        5,628
Other expense                   3,859     4,066     15,827     17,004 
Income before income taxes       777         542         2,396        1,163
Income tax                      200       89        556        21     
Net income                     $ 577      $ 453      $ 1,840     $ 1,142  
Earnings per share:
Basic                          $ 0.19     $ 0.15     $ 0.62      $ 0.38   
Diluted                        $ 0.19     $ 0.15     $ 0.62      $ 0.38   
Weighted average shares
Basic                           2,989     2,989     2,989      2,989  
Diluted                         2,989     2,989     2,989      2,989  
Dividends declared per share   $ 0.01     $ 0.01     $ 0.04      $ 0.04   
Net interest margin (fully
                                3.81  %    3.75  %    3.71   %    3.73   %
tax-equivalent basis)



Unaudited Financial Highlights (Continued)

(In thousands, except per share amounts)
                                       Dec. 31,      Sept. 30,     Dec. 31,
                                       2012          2012          2011
Total assets                           $ 445,763     $ 447,834     $ 429,791
Cash and cash equivalents                20,853        24,722        9,709
Interest-bearing time deposits           5,704         --            --
Investment securities held to            2,349         --            --
Investment securities available for      39,296        44,266        43,847
Loans receivable                         317,444       313,164       316,641
Allowance for loan losses               4,239       4,236       4,132   
Loans, net                               313,205       308,928       312,509
Allowance for loan losses as a
percentage                               1.34    %     1.35    %     1.30    %

of loans receivable
Non-performing loans                   $ 7,604       $ 8,557       $ 8,828
Allowance for loan losses as a
percentage                               55.7    %     49.5    %     46.8    %

of non-performing loans
Non-interest-bearing                   $ 53,024      $ 52,383      $ 40,197
Interest-bearing                        303,679     305,539     297,053 
                                         356,703       357,922       337,250
Borrowed funds                         $ 45,810      $ 45,810      $ 49,810
Shareholders' equity                     36,546        36,190        34,505
Book value per share                     12.23         12.11         11.54
Regulatory capital ratios for
Ameriana Bank:
Tier 1 leverage ratio                    9.31    %     9.14    %     9.23    %
Tier 1 risk-based capital ratio          13.18   %     13.03   %     12.32   %
Total risk-based capital ratio           14.45   %     14.30   %     13.58   %


Ameriana Bancorp
Jerome J. Gassen, 765-529-2230
President and Chief Executive Officer
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