Ameriana Bancorp (NASDAQ: ASBI), parent company for Ameriana Bank, today announced results for the three and six months ended June 30, 2010. For the second quarter, Ameriana reported net income of $229,000 or $0.08 per basic and diluted share compared with a net loss of $466,000 or $(0.16) per basic and diluted share for the second quarter of 2009, continuing a positive earnings trend that began in the second half of 2009. For the first six months of 2010, Ameriana's net income totaled $309,000 or $0.10 per basic and diluted share versus a net loss of $579,000 or $(0.19) per basic and diluted share in the year-earlier period.
Ameriana's second quarter earnings improvement primarily reflected a $560,000 gain on the sale of $10.9 million of seasoned, performing residential mortgage loans and the reversal of $292,000 of expense related to a post-retirement health insurance plan for directors, which the Company has eliminated. Also contributing to Ameriana's improved results was a $322,000 increase in net interest income that reflected a continued expansion of net interest margin. These factors helped offset the impact of credit costs, which remain at an elevated level, including a $658,000 provision of loan losses and $361,000 in net direct costs associated with other real estate owned ("OREO").
Commenting on the announcement, Jerome J. Gassen, President and Chief Executive Officer, said, "We are pleased to announce another profitable quarter for Ameriana, our fourth consecutive quarter reflecting earnings momentum and the highest level of quarterly net income achieved during the past year. Our results reflect the positive impact of several measures we implemented last year to strengthen our balance sheet and improve our net interest margin, which has now increased for four straight quarters. While our operating environment remains challenging, we are pleased with the fundamental progress Ameriana is achieving in many aspects of its business, including improving credit quality, and we remain enthusiastic about how this progress will translate into future growth for the Ameriana brand and increased value for our shareholders when the economy begins to show sustainable improvement."