Ameriana Bancorp Reports Third Quarter, Year-to-Date Results.NEW CASTLE, Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. . -- Ameriana Bancorp (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ASBI ASBI American Segmental Bridge Institute ) today announced results for the three and nine months ended September September: see month. 30, 2005. Net income for the third quarter totaled $396,000 or $0.12 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared with net income of $412,000 or $0.13 per diluted share reported in the same period last year. Net income for the first nine months of 2005 totaled $1,886,000 or $0.59 per diluted share compared with net income of $1,318,000 or $0.42 per diluted share in the year-earlier period. Net income for the first nine months of 2005 reflected total recoveries of $3,400,000 in the Commercial Money Center ("CMC (Common Messaging Calls) A programming interface specified by the XAPIA as the standard messaging API for X.400 and other messaging systems. CMC is intended to provide a common API for applications that want to become mail enabled. 1. ") matter, including a payment of $2,300,000 received during the first quarter in settlement of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. against one of the sureties for the lease pools and a payment of $1,100,000 received during the second quarter in settlement of the CMC bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most . These amounts were recorded as recoveries to the allowance for loan losses, resulting in an adjustment for loan losses of $2,997,000 for the nine months ended September 30, 2005, compared with provision for loan losses of $275,000 for the nine months ended September 30, 2004. The provision for loan losses in the third quarter of 2005 remained low because of another, although smaller, recovery of a loan previously charged off. Net interest income for the third quarter was $2,526,000 compared with $2,669,000 in the year-earlier period. Net interest income for the first nine months of 2005 was $7,429,000 versus $8,197,000 in the comparable period last year. Non-accrual loans declined $4,211,000 or 60% to $2,839,000 in the third quarter versus the second quarter of 2005 and were 51% below the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. level of $5,736,000. The decrease was primarily due to the foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. of collateral on a commercial real estate loan, the successful restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of another commercial real estate loan, and the partial charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. of a third commercial real estate loan. Commenting on the results, Jerome J. Gassen, President and Chief Executive Officer, said, "With rising interest rates throughout the year - pressuring deposit costs and resulting in a relatively flat yield curve Flat Yield Curve A chart that shows that the yields of bonds with short maturities are equal to the yields of bonds with longer maturities. - Ameriana continues to confront a difficult rate environment. We are actively working to manage our interest rate risk and, at the same time, our asset quality measures have continued to improve to help counter these conditions. This progress, coupled with recent recoveries on loans and leases that were previously written off, has provided a positive offset to the continued rate compression we have experienced. Also, we continue to see the benefit of cost control initiatives implemented earlier, which was particularly evident in the third quarter as other expenses declined 5% primarily due to lower pension costs versus the same period last year following modifications to our plan in 2004 and because of the voluntary payment we made toward our pension liability earlier this year. "During the third quarter, we achieved loan growth that reflects other Company initiatives to build our business - with increased emphasis on commercial lending," Gassen continued. "As we pursue these and other initiatives, we will continue to seek further efficiencies in our operations to help improve our overall performance going forward." During the third quarter, Ameriana reclassified all investment securities in its portfolio previously accounted for as "held to maturity" to "available for sale." This new classification, which provides the Company with increased flexibility to address changing interest rate risks or capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. opportunities to generate higher interest earnings, had no effect on the Company's earnings for the third quarter. Unrealized net losses on these investments, however, were recorded as a reduction in shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. , resulting in a decline in this balance compared with the earlier reported quarters. These previously unrealized net losses reflected primarily the rising rate environment that has existed for more than one year. Ameriana Bancorp is a bank holding company. Through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Ameriana Bank and Trust SB, the Company offers an extensive line of banking services and provides a range of investments and securities products through branches in the central Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). area. As its name implies, Ameriana Bank and Trust SB also offers trust and investment management services. The Bank has interests in Family Financial Holdings, Inc. and Indiana Title Insurance Company, and owns Ameriana Insurance Agency, a full-service insurance agency. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Market Disruption A situation where markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or a unusual trading (as in a crash). and other effects of terrorist activities. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" 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 Nine Months Ended
September 30 September 30
-------------------- --------------------
2005 2004 2005 2004
-------- -------- -------- --------
Interest income $ 5,056 $ 4,566 $ 14,550 $ 13,640
Interest expense 2,530 1,897 7,121 5,443
-------- -------- -------- --------
Net interest income 2,526 2,669 7,429 8,197
Provision (adjustment)
for loan losses 35 75 (2,997) 275
-------- -------- -------- --------
Net interest income
after provision
for loan losses 2,491 2,594 10,426 7,922
Other income 949 978 3,065 3,000
Other expense 3,073 3,241 11,311 9,809
-------- -------- -------- --------
Income before income
taxes 367 331 2,180 1,113
Income tax (benefit)
expense (29) (81) 294 (205)
-------- -------- -------- --------
Net income $ 396 $ 412 $ 1,886 $ 1,318
======== ======== ======== ========
Earnings per share:
Basic $ 0.13 $ 0.13 $ 0.60 $ 0.42
======== ======== ======== ========
Diluted $ 0.12 $ 0.13 $ 0.59 $ 0.42
======== ======== ======== ========
Weighted average
shares outstanding:
Basic 3,162 3,149 3,156 3,149
======== ======== ======== ========
Diluted 3,173 3,174 3,170 3,172
======== ======== ======== ========
Dividends declared
per share $ 0.16 $ 0.16 $ 0.48 $ 0.48
======== ======== ======== ========
Sept. 30 Dec. 31 Sept. 30
2005 2004 2004
-------- -------- --------
Total assets $442,216 $428,553 $434,046
Cash and cash equivalents 13,552 17,053 19,024
Investment securities held to
maturity -- 158,322 160,103
Investment securities available
for sale 172,358 12,032 11,975
Loans, net 209,057 196,344 198,172
Deposits 323,926 344,047 335,820
Borrowed funds 74,029 40,390 51,119
Shareholders' equity 36,748 38,643 39,131
Loans accounted for on a non-
accrual basis 2,839 5,736 4,876
Book value per share 11.62 12.26 12.43
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