Ameriana Bancorp (NASDAQ: ASBI), parent company for Ameriana Bank, today announced earnings for the second quarter of 2013 of $531,000, or $0.18 per basic and diluted share, compared with $453,000, or $0.15 per basic and diluted share, for the second quarter of 2012. This marked the 16 th consecutive profitable quarter for Ameriana.
For the first six months of 2013, Ameriana’s net income increased to $1,145,000, or $0.38 per basic and diluted share, compared with $798,000, or $0.27 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 continued improvement in earnings over the prior-year periods. Commercial loan volume, while not robust, remains steady, and mortgage lending activity is increasing largely from home purchases rather than refinancing. Nevertheless, total loan balances declined $6 million during the quarter, due primarily to a $5.9 million decline in the residential mortgage loan portfolio related to sales of mortgage loans originated and normal amortization. Given the current pipeline, we expect that total loan balances will increase modestly in subsequent quarters.” Gassen also noted that the net interest margin declined five basis points from the same period in 2012, but remains fairly stable given the current interest rate environment.
“I am particularly pleased with our progress in reducing non-performing loans,” Gassen continued. “Non-performing loans decreased by approximately $2 million from June 30, 2012. We continue to reduce OREO, as well.” OREO totaled $6.1 million at June 30, 2013, compared with $8.5 million a year ago.Ameriana recorded a provision for loan losses of $210,000 for the second quarter of 2013, which was $45,000 lower than the prior quarter and $170,000 less than the second quarter of 2012. The decrease in provision for loan losses is reflective of the declining pressure of economic conditions on credit quality, including the lower level of non-performing loans. Non-performing loans declined for the seventh consecutive quarter to 2.07% of total loans at June 30, 2013, compared with 2.39% at December 31, 2012, and 2.78% at June 30, 2012.