Ameriana Bank Partners with Federal Home Loan Bank of Indianapolis to offer Funding to Help Homeowners Relieve Threat of Foreclosure.

NEW CASTLE, Ind. -- Jerome J. Gassen, President and Chief Executive of Ameriana Bank, today announced a new mortgage initiative, HomeRetain, to assist families with modifying or refinancing their existing mortgages to more favorable terms and potentially avoid foreclosure.

HomeRetain is a part of the Community Investment Program of the Federal Home Loan Bank of Indianapolis, a source of wholesale funds for member institutions involved in housing or community economic development activities that benefit low- and moderate-income families or neighborhoods.

The FHLBI announced the HomeRetain initiative in late December 2007, which offered member institutions a $100 million split between the states of Indiana and Michigan and which may be used to modify or refinance mortgages for primary residences in any state in which a member does business.

"Many families and neighborhoods in our communities are facing home foreclosures and mortgage delinquencies," said Gassen. "Everyone loses when there's a foreclosure - the homeowner, the lender, the community. We anticipate that HomeRetain can help resolve some of these situations, and we at Ameriana are proud to do our part as a community bank in helping homeowners evaluate their financial options."

Homeowners should consider HomeRetain if they are presently past due on their mortgage payments, struggling to make mortgage payments in the past 12 months, have an adjustable-rate mortgage resetting to a higher interest rate or have property tax increases. Any of these factors, combined with the mortgage payment, can increase a homeowners' risk of foreclosure.

For more information about HomeRetain, visit the nearest central Indiana Ameriana banking center, contact Customer Care at 1-800-487-2118 or 765-529-2230 or visit the Ameriana website at www.Ameriana.com.

Ameriana Bank, SB, 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 owns Ameriana Insurance Agency, a full-service insurance agency and has interests in Family Financial Holdings, Inc. and Indiana Title Insurance Company. Ameriana Financial Services offers securities and insurance products through LPL Financial. Ameriana Bank is a wholly owned subsidiary of Ameriana Bancorp (NASDAQ:ASBI), a bank holding company.

The Federal Home Loan Bank of Indianapolis (FHLBI) is one of 12 regional banks that make up the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions. FHLBanks are privately capitalized and funded, and receive no Congressional appropriations. The FHLBI is owned by its financial institution members, which include commercial banks, credit unions, insurance companies, and savings banks headquartered in Indiana and Michigan. For more information about the FHLBI, visit www.fhlbi.com.