Ameriana Bank Announces Formation of Trust Department and Names Bradley J. Herndon to Lead New Area.

NEW CASTLE, Ind.--(BUSINESS WIRE)--June 4, 1999--

Ameriana Bancorp (Nasdaq:ASBI), the parent banking company for Ameriana Bank of Indiana, today announced that the Bank has created a new Trust Department to provide trust and investment management services to its customers.

Heading the new Trust Department will be Bradley J. Herndon, Vice President. Before assuming responsibility for this new venture, Herndon was director of client services for an Indianapolis area investment counselor where he had responsibility for overseeing the management of client accounts with aggregate assets of more than $850 million. Herndon brings to Ameriana over 19 years of experience in investments, personnel management, budgeting and client service.

Harry J. Bailey, President and Chief Executive Officer of Ameriana Bancorp, noted that the creation of this new department typifies Ameriana's continued investment in new products and services to meet the needs of its markets and customers. "With the creation of a Trust Department, we are giving our customers access to a broader range of financial services from a locally owned and managed company. They will be able to obtain comprehensive financial and estate planning services which integrate banking and trust investment relationships in a manner that is convenient, timely, and cost-effective. Indeed, these trust services will create a new level of synergy with our brokerage and banking services, providing a more complete response to the increasingly complex needs of our customers. At a time when many larger regional and super-regional banks have all but abandoned personal service, particularly in our local markets, we believe Ameriana can meet these growing needs and at the same time enhance both the bank's profitability and shareholder value."

Commenting on his plans for the new department, Herndon added, "The strength of our domestic economy and financial markets over the past 18 years has created an affluent base of customers for our services. With the challenges and increased competitive pressures in the financial services industry, it is important that institutions consider offering additional services that meet the needs of customers, while increasing the bank's revenues and earnings. Trust and investment services can assist in the achievement of these goals by retaining and building on the bank's current asset base. We can provide our customers an enhanced selection of financial services and products, which ultimately will strengthen Ameriana's competitive position."

Herndon was previously associated with National City Bank, Indiana as the Chief Investment Officer and Senior Portfolio Manager; with American National Trust and Investment Company as Executive Vice President and Chief Investment Officer; and with INB National Bank as Vice President and Director of Equity Research. He began his career with NBD National Bank in 1979 as a junior portfolio manager. He is a graduate of Indiana State University with a Bachelor of Science degree in finance and economics. He earned an MBA degree, with honors, from the University of Indianapolis. Herndon is a Chartered Financial Analyst and Chartered Market Technician. He is a member of the Association for Investment Management and Research, a current member and past president of the Financial Analysts Society of Indianapolis, Education Committee Chair for the Market Technicians Association, and a member of the Board of Trustees of Hancock Memorial Hospital Foundation.

Ameriana Bancorp, through its wholly owned subsidiaries, Ameriana Bank of Indiana and Ameriana Bank of Ohio, offers an extensive line of banking services through branches in central Indiana and in the greater Cincinnati, Ohio area. Ameriana Bancorp also offers title insurance through Indiana Title Insurance Company and owns Ameriana Insurance Agency, a full-service insurance agency. In addition to its banking services, Ameriana provides a full line of investments and securities products in branch-located brokerage centers and, through a financial services subsidiary, has an interest in a life insurance company.