Ameriana Bancorp (NASDAQ: ASBI), parent company for Ameriana Bank, today announced net income of $102,000 or $0.03 per basic and diluted share for the fourth quarter of 2010 compared with $128,000 or $0.04 per basic and diluted share for the fourth quarter of 2009. For 2010, net income totaled $553,000 or $0.19 per basic and diluted share versus a net loss of $264,000 or $(0.09) per basic and diluted share for 2009.
The provision for loan losses totaled $555,000 for the fourth quarter of 2010 and $1.9 million for the year, which represented decreases of $352,000 and $247,000 from the three and twelve months ended December 31, 2009, respectively. Total non-performing loans increased $3.7 million for the quarter and were up $2.2 million for the year. Non-performing loans were 3.55% and 2.78% of total loans at December 31, 2010 and 2009, respectively. The allowance for loan losses increased to $4.2 million at December 31, 2010, or 1.33% of total loans. Other real estate owned declined $730,000 from September 30, 2010, reflecting several sales that occurred during the fourth quarter.
For the fourth quarter of 2010, Ameriana Bancorp's net interest margin on a fully tax-equivalent basis was 3.78%, 16 basis points higher than the third quarter of 2010 and 44 basis points higher than the fourth quarter of 2009. For 2010, the Company's net interest margin on a fully tax-equivalent basis was 3.63%, up 56 basis points from 2009.
Commenting on the announcement, Jerome J. Gassen, President and Chief Executive Officer, said, "We are pleased to report a profit for the final quarter of 2010 – which is the sixth consecutive profitable quarter for our company. Other highlights for the year included an ongoing strengthening in net interest margin, which was up steadily during the year and 56 basis points higher year over year. Also, a higher level of income from core business for the year, combined with continued expense control, contributed to an improved efficiency ratio for 2010. Of course, during the past year we were adversely affected by high credit costs as we continued to confront a difficult economic environment and we experienced an increase in non-performing loans in the fourth quarter. However, a substantial portion of that increase already has been placed on defined work-out programs as we continue to take appropriate steps to address problem assets in our portfolio.