Ameriana Bancorp (NASDAQ: ASBI), parent company for Ameriana Bank, today announced that for the second quarter, net income totaled $270,000 or $0.09 per basic and diluted share, up 18% from $229,000 or $0.08 per basic and diluted share for the second quarter of 2010. These results marked the eighth consecutive profitable quarter for Ameriana.
For the first six months of 2011, Ameriana's net income increased 27% to $391,000 or $0.13 per basic and diluted share from $309,000 or $0.10 per basic and diluted share in the year-earlier period.
Commenting on the announcement, Jerome J. Gassen, President and Chief Executive Officer, said, "We are pleased to report positive earnings for the quarter in spite of other real estate owned ("OREO") write-downs of $713,000 and generally weak economic conditions. During the second quarter, we had the opportunity to sell investment portfolio securities and recognize $448,000 in gains that partially offset costs associated with our OREO. At the same time, ongoing positive trends related to our non-performing loans allowed us to reduce the provision for loan losses from the level recorded for first quarter of 2011, as well as from the same quarter last year. This improvement was a key factor contributing to the Company's higher earnings for the second quarter.
"As we pass the midyear point for 2011, we note that a meaningful recovery in real estate and the broader economy has not yet materialized and, consequently, neither have signs of improved loan demand," Gassen added. "These conditions make it increasingly difficult to grow interest-earning assets, and considering the current interest rate environment, it will be more challenging to grow our investment portfolio without taking undue interest rate risk in the near future. Despite these current pressures, we remain cautiously optimistic that business conditions will improve over the longer term, and we are steadfast in our belief that Ameriana is well positioned to grow and enhance shareholder value as this recovery occurs. As a result of these pressures, we are committed to reducing our operating expenses in order to improve earnings."
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