Ameriana Bancorp Reports Second Quarter 2014 Net Income of $603,000 or $0.20 Per Share

NEW CASTLE, Ind.--()--Ameriana Bancorp (NASDAQ: ASBI), parent company for Ameriana Bank, today announced earnings for the second quarter of 2014 of $603,000, or $0.20 per basic and diluted share, compared with $531,000, or $0.18 per basic and diluted share, for the second quarter of 2013.

For the first six months of 2014, Ameriana's net income increased to $1.3 million, or $0.45 per basic and diluted share, compared with $1.1 million, or $0.38 per basic and diluted share, in the year-earlier period.

Commenting on the announcement, Jerome J. Gassen, President and Chief Executive Officer, said, "We are pleased with our continued growth in earnings over the same period a year earlier, which resulted from improvement in our credit metrics and interest from investment securities. The Bank's efforts to grow its loan portfolio in the second quarter were hampered by the repayment of several large low-income housing loans, but a strong commercial pipeline at the end of the quarter is expected to produce more favorable results in the second half of the year." Gassen also noted that noninterest expense declined from the same periods a year earlier, and although the net interest margin for the second quarter declined seven basis points from the same quarter in 2013, it still remains relatively stable given the current interest rate environment.

"I am particularly pleased with our progress in reducing non-performing loans and in shrinking our portfolio of other real estate owned (OREO)," Gassen continued. "Non-performing loans decreased to $4.6 million as of quarter end from $6.6 million at June 30, 2013, which also represented a $2.0 million improvement from the year-earlier total of $8.6 million." OREO declined to $5.7 million at June 30, 2014, from $6.1 million and $8.5 million at June 30, 2013 and June 30, 2012, respectively.

Total loans receivable increased $891,000 to $316.9 million at June 30, 2014, from December 31, 2013, while total investment securities of $54.4 million at June 30, 2014, represented an increase of $14.2 million from December 31, 2013. For the same six-month period, total deposits increased $14.5 million, or 4.0%, to $377.2 million.

As of June 30, 2014, the allowance for loan and lease losses (ALLL) totaled $4.0 million or 1.26% of total loans receivable. The ALLL coverage of non-performing loans increased to 87.6%. Total shareholders' equity as of June 30, 2014, was $39.6 million or 8.34% of total assets. Reported book value per common share was $13.22. Ameriana Bank exceeded all three regulatory capital standards to be considered "well capitalized" at June 30, 2014.

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, 2013, 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.

 
 
 
 
 

AMERIANA BANCORP
Unaudited Financial Highlights
(In thousands, except per share amounts)

 
   

Three Months Ended

June 30,

 

Six Months Ended

June 30,

2014   2013 2014   2013
Interest income $ 4,385 $ 4,261 $ 8,859 $ 8,552
Interest expense   755     747     1,513     1,509  
Net interest income 3,630 3,514 7,346 7,043
Provision for loan losses   150     210     300     465  

Net interest income after provision for loan losses

3,480 3,304 7,046 6,578
Other income 1,383 1,469 2,747 2,981
Other expense   4,037     4,074     7,954     8,034  
Income before income taxes 826 699 1,839 1,525
Income tax   223     168     507     380  
Net income $ 603   $ 531   $ 1,332   $ 1,145  
 
Earnings per share:
Basic $ 0.20   $ 0.18   $ 0.45   $ 0.38  
Diluted $ 0.20   $ 0.18   $ 0.45   $ 0.38  
 
Weighted average shares outstanding:
Basic   2,992     2,989     2,991     2,989  
Diluted   2,997     2,989     2,996     2,989  
 
Dividends declared per share $ 0.02   $ 0.01   $ 0.04   $ 0.02  
 

Net interest margin (fully tax-equivalent basis)

  3.56 %   3.63 %   3.64 %   3.68 %
 
 
 
 
 
 

AMERIANA BANCORP
Unaudited Financial Highlights (Continued)
(In thousands, except per share amounts)

 
    June 30, 2014   Dec. 31, 2013   June 30, 2013
Total assets $ 474,440 $ 458,604 $ 445,281
Cash and cash equivalents 41,552 40,867 30,113
Interest-bearing time deposits 2,974 2,974 3,718
Investment securities held to maturity 2,346 2,347 2,348
Investment securities available for sale 52,035 37,803 31,618
Loans receivable 316,919 316,028 317,512
Allowance for loan losses   4,004     3,993     3,954  
Loans, net 312,915 312,035 313,558
 

Allowance for loan losses as a percentage of loans receivable

1.26 % 1.26 % 1.25 %
Non-performing loans $ 4,572 $ 5,067 $ 6,579

Allowance for loan losses as a percentage of non-performing loans

87.6 % 78.8 % 60.1 %
 
Deposits:
Non-interest-bearing $ 57,622 $ 52,747 $ 56,609
Interest-bearing   319,613     309,954     298,408  
377,235 362,701 355,017
 
Borrowed funds $ 50,810 $ 50,810 $ 45,810
Shareholders' equity 39,576 37,713 36,940
Book value per share 13.22 12.61 12.36
 
Regulatory capital ratios for Ameriana Bank:
Tier 1 leverage ratio 9.44 % 9.47 % 9.36 %
Tier 1 risk-based capital ratio 14.46 % 13.91 % 13.30 %
Total risk-based capital ratio 15.72 % 15.16 % 14.56 %
 
 
 

Contacts

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

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Contacts

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