Ameriana Reports Year-End Results for 1999.Business Editors NEW CASTLE, Ind.--(BUSINESS WIRE)--Feb. 3, 2000 Ameriana Bancorp (The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. : ASBI ASBI American Segmental Bridge Institute ) today announced results for the full year and fourth quarter ended December 31, 1999. Net interest income for 1999 was $12,334,000 compared with $12,308,000 for 1998. During the year, the Company's provision for loan losses increased to $328,000 compared with $159,000 in 1998. Net income for 1999 was $3,332,000 or $0.98 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 versus $3,838,000 or $1.06 per diluted share in 1998. Net interest income for the fourth quarter of 1999 was $3,114,000 compared with $3,088,000 in the year-earlier period. In the final quarter of 1999, the Company's provision for loan losses increased to $230,000 versus $51,000 in the same quarter last year. Net income for the fourth quarter of 1999 was $601,000 or $0.18 per diluted share compared with $962,000 or $0.27 per diluted share in the same period last year. Commenting on the results, Harry J. Bailey, President and Chief Executive Officer, said, &uot;Although 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 for the year fell short of the record mark set in 1998, this past year was one of the most successful and prosperous ever for Ameriana. Throughout 1999, we continued to invest in our franchise, initiating new services and expanding to new markets. These steps continued the efforts that have characterized our growth for the past several years even though we recognized that such investments in personnel, technology and infrastructure would affect profits in the near term. Our focus remains on the longer-term benefits that we believe will accrue To increase; to augment; to come to by way of increase; to be added as an increase, profit, or damage. Acquired; falling due; made or executed; matured; occurred; received; vested; was created; was incurred. to Ameriana and its shareholders as the Company's franchise and service portfolio continues to expand and, with that growth, further diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our sources of revenue and position the Company as a stronger financial resource for new and existing customers. In these terms, and with a view toward our ability to meet the challenges of a changing industry in the new millennium, we are pleased with the progress achieved in 1999.&uot; In December 1999, Ameriana opened a new full-service banking facility 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. . This suburban Indianapolis branch is Ameriana's ninth in the state and twelfth branch in total. During the year, Ameriana also invested in new services, such as trust, investment and estate-planning products, and created a new business services division to handle specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. lending and other banking services for commercial and government customers. Bailey noted that Ameriana's provision for loan losses in the fourth quarter and year ended December 31, 1999, reflected the impact of a specific loan that was fully reserved in the final quarter of the year. He added: &uot;In the course of our customary year-end review of our loan portfolio, we determined that this loan no longer met our credit standards Credit Standards The guidelines a company follows to determine whether a credit applicant is creditworthy. and, as a result of the circumstances, decided to reserve it completely. Had it not been for this additional reserve amount, Ameriana's profits would have approached the record earnings amount witnessed in 1998.&uot; He also pointed out that as interest rates trended higher in 1999, Ameriana has found more opportunities to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. variable-rate loans Variable-rate loan Loan made at an interest rate that fluctuates depending on a base interest rate, such as the prime rate or LIBOR. for its portfolio. During 1998, a higher percentage of the Company's loans were fixed-rate, which Ameriana typically resells in the marketplace consistent with its asset and liability management strategies. Consequently, Ameriana recorded significantly greater gains on sales of loans during 1998 than it did in 1999. During 1999, Ameriana continued to implement its authorized stock Authorized Stock The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet. repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program. Under this program, the Company reacquired approximately 374,000 common shares, or about 10% of total outstanding at the beginning of the year, at a cost of approximately $6.7 million. &uot;During the past year, we continued to be very active in our stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program as a means for enhancing future shareholder value,&uot; Bailey continued. &uot;These steps are expected to make our capital structure more efficient in the future, both in terms of earnings per share and return on equity.&uot; At year-end, Ameriana's 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. remained a strong 8% of total assets, he added. 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 &uot;intend,&uot; &uot;believe,&uot; or &uot;expect,&uot; 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 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. , 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 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 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.
AMERIANA BANCORP
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31 December 31
1999 1998 1999 1998
Interest income $ 7,971 $ 7,094 $29,083 $28,301
Interest expense 4,857 4,006 16,749 15,993
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Net interest income 3,114 3,088 12,334 12,308
Provision for loan
losses 230 51 328 159
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Net interest income after
provision for loan losses 2,884 3,037 12,006 12,149
Other income 848 975 3,285 3,429
Other expense 2,928 2,571 10,492 9,655
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Income before income taxes 804 1,441 4,799 5,923
Income taxes 203 479 1,467 2,085
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Net income $ 601 $ 962 $ 3,332 $ 3,838
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Earnings per share:
Basic $ 0.18 $ 0.27 $ 0.98 $ 1.08
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Diluted $ 0.18 $ 0.27 $ 0.98 $ 1.06
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Weighted average shares:
Basic 3,267 3,513 3,386 3,562
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Diluted 3,297 3,552 3,417 3,610
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Dividends declared per share $ 0.15 $ 0.15 $ 0.60 $ 0.59
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Dec. 31 Dec. 31
1999 1998
Total assets $486,349 $405,718
Cash and other investments 113,508 104,207
Loans and mortgage-backed securities, net 340,447 286,212
Deposits 355,759 333,989
Shareholders' equity 40,029 45,349
Book value per share 12.72 12.92
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