Ameriana Reports Higher Third Quarter Earnings.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. .--(BUSINESS WIRE)--Oct. 29, 1999-- Ameriana Bancorp (Nasdaq:ASBI ASBI American Segmental Bridge Institute ) today announced results for the third quarter and nine months ended September September: see month. 30, 1999. Net interest income for the third quarter was $3,087,000 compared with $3,127,000 in the year-earlier period, while the Company's provision for loan losses declined to $30,000 versus $36,000 in the same quarter last year. Net income for the third quarter of 1999 increased 15% to $1,073,000 versus $933,000 in the same period last year. On a 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. per share basis, net income rose 19% to $0.31 on 3.4 million average shares outstanding for the third quarter of 1999 and reflected the impact of both higher net income and share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. under the Company's stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. This compares with $0.26 diluted per share on 3.6 million average shares outstanding for the year-earlier period. Net interest income was unchanged at $9,220,000 for the first nine months of 1999, while the Company's provision for loan losses declined to $98,000 compared with $108,000 in the year-earlier period. Net income for the first nine months of 1999 was $2,731,000 versus $2,876,000, but was unchanged on a diluted per share basis at $0.79. All per share amounts have been restated to give effect to a January 1999 11-for-10 stock split, distributed in the form of a 10% stock dividend. Commenting on the results, Harry J. Bailey, President and Chief Executive Officer, said, "The Company's higher earnings for the third quarter mark a welcome improvement over the first half of the year and reflect a generally favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. underlying lending environment. With consumer interests moving again toward variable rate products, we have been able to retain more of our loans for portfolio. This is in keeping with our longstanding strategy to control interest rate risk. Of course, this strategy reduces the potential for immediate gains from the sale of fixed-rate loans Fixed-rate loan A loan whose rate is fixed for the life of the loan. into the secondary market, as seen throughout 1998 and to some extent in the first half of this year. However, this course of action produces a direct positive effect on interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , expanding our loan portfolio to provide a more stable earnings platform in the future." Bailey noted that the Company's quarter results included several non-operating income items that increased reported earnings approximately $0.03 per share over what would be considered operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before . These items, such as the third quarter receipt of a dividend from Ameriana's life insurance affiliate, affected other income and expense as well as the effective tax rate for the quarter. Some also were non-recurring. Disregarding dis·re·gard tr.v. dis·re·gard·ed, dis·re·gard·ing, dis·re·gards 1. To pay no attention or heed to; ignore. 2. To treat without proper respect or attentiveness. n. these items, Ameriana's net income for the third quarter on a diluted per share basis would have totaled approximately $0.28, reflecting a solid increase over the same period last year. "We continue to move ahead with our plans to expand our franchise steadily and increase the scope of our services," Bailey added. "We are excited at the prospects of Ameriana's newest branch office, located in New Palestine, Indiana New Palestine is a town in Hancock County, Indiana, along Sugar Creek. The population was 1,264 at the 2000 census. Geography New Palestine is located at (39.722566, -85.889824)GR1. , opening later in December. We already have begun to staff this office and look forward to the initial contributions it is expected to make to our operations in 2000. Our increased investments in other service areas, such as our trust, investments and estate-planning products, strengthen our capabilities to offer customers a one-stop shopping experience for financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and continue to lend natural support to our overall growth objectives." 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, identified by words such as "intend," "believe," or "expect," or variations of such words or similar expressions, involve risks and uncertainties which could cause actual results to differ materially from those anticipated by the statements made herein. These risks and uncertainties involve general economic trends, increased competition, changes in consumer demand for financial services, the possibility of unforeseen events affecting the industry generally, and the uncertainties associated with newly developed or acquired operations. The Company undertakes no obligation to release revisions to these forward-looking statements publicly 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 to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report under the rules and regulations of the Securities and Exchange Commission. Ameriana Bancorp is a bank holding company. Through its wholly owned subsidiaries 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 of 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). and Ameriana Bank of Ohio, the Company offers an extensive line of banking services and provides a range of investments and securities products through branches in central Indiana and in the greater Cincinnati, Ohio “Cincinnati” redirects here. For other uses, see Cincinnati (disambiguation). Cincinnati is a city in the U.S. state of Ohio and the county seat of Hamilton County. area. Ameriana Bank of Indiana also offers trust and investment management services through its Trust Department and has an interest in a life insurance company. In addition to these financial services, Ameriana Bancorp offers title insurance through Indiana Title Insurance Company and owns Ameriana Insurance Agency, a full-service insurance agency. -0-
AMERIANA BANCORP
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30 September 30
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1999 1998 1999 1998
------- ------- ------- -------
Interest income $ 7,343 $ 7,203 $21,112 $21,206
Interest expense 4,256 4,076 11,892 11,986
------- ------- ------- -------
Net interest income 3,087 3,127 9,220 9,220
Provision for loan losses 30 36 98 108
------- ------- ------- -------
Net interest income after
provision for loan losses 3,057 3,091 9,122 9,112
Other income 886 804 2,438 2,453
Other expense 2,420 2,433 7,565 7,083
------- ------- ------- -------
Income before income taxes 1,523 1,462 3,995 4,482
Income taxes 450 529 1,264 1,606
------- ------- ------- -------
Net income $ 1,073 $ 933 $ 2,731 $ 2,876
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Earnings per share:
Basic $ 0.32 $ 0.26 $ 0.80 $ 0.81
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Diluted $ 0.31 $ 0.26 $ 0.79 $ 0.79
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Weighted average shares:
Basic 3,371 3,590 3,427 3,578
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Diluted 3,408 3,631 3,459 3,627
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Dividends declared per share $ 0.15 $ 0.15 $ 0.45 $ 0.44
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Sept. 30 Dec. 31
1999 1998
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Total assets $459,924 $405,718
Cash and other investments 106,536 100,619
Loans and mortgage-backed securities, net 319,170 287,496
Deposits 320,118 333,989
Shareholders' equity 43,807 45,349
Book value per share 13.09 12.92
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