<PAGE>
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q.A **
AMENDMENT NO. 1
QUARTERLY REPORT
Pursuant to Section 13 or 15 (d) of
The Securities Exchange Act of 1934
For the Quarter Ended:
---------------------
March 31, 2000 Commission File Number 0-18392
-------
Ameriana Bancorp
Indiana 35-1782688
------------------------------- --------------------------
(State or other jurisdiction of I.R.S. employer
of incorporation or organization) identification number)
2118 Bundy Avenue, New Castle, Indiana 47362-1048
--------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, include area code (765) 529-2230
--------------
Securities registered pursuant to Section 12(g) of Act:
Common Stock, par value $1.00 per share
---------------------------------------
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES XX NO
----- ----
As of May 8, 2000, there were issued and outstanding 3,146,616
shares of the registrant's common stock.
** Amendment No. 1 to Form 10-Q is being filed to correct an
incorrect number in the Consolidated Condensed Statements
of Cash Flows included in the previous filing.
<PAGE>
<PAGE>
PART I - FINANCIAL INFORMATION
AMERIANA BANCORP AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CONDITION - UNAUDITED
<TABLE>
<CAPTION>
March 31, December 31, March 31,
2000 1999 1999
------------ ----------- ------------
ASSETS
<S> <C> <C> <C>
Cash on hand and in other institutions $ 7,753,644 $ 14,636,884 $ 6,818,169
Interest-bearing demand deposits 3,163,466 5,295,715 22,980,363
Investment-bearing time deposits 100,000 1,499,000 4,686,000
Investment securities held to maturity (fair
value of $82,193,000, $81,481,000 and
$70,864,000, respectively) 87,775,550 87,735,008 71,551,948
Mortgage-backed securities held to maturity
(fair value of $13,715,000, $14,787,000
and $18,794,000, respectively) 13,923,074 14,970,002 18,580,042
Mortgage loans held for sale -- 207,400 2,079,225
Loans receivable 356,387,249 326,804,739 257,647,820
Allowance for loan losses (1,401,539) (1,534,278) (1,309,850)
------------ ------------ ------------
Net loans receivable 354,985,710 325,270,461 256,337,970
Real estate owned 151,811 100 103,946
Premises and equipment 7,133,699 7,117,271 6,027,020
Stock in Federal Home Loan Bank 4,993,100 4,341,300 3,608,100
Mortgage servicing rights 896,626 910,273 1,107,926
Investments in unconsolidated subsidiaries 1,137,744 1,179,244 1,375,705
Intangible assets 1,806,660 1,852,360 1,995,535
Cash surrender value of life insurance 16,528,559 16,117,534 --
Other assets 4,074,967 5,216,868 7,929,494
------------ ------------ ------------
Total assets $504,424,610 $486,349,420 $405,181,443
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing $ 18,382,578 $ 16,308,154 $ 13,595,946
Interest-bearing 335,420,485 339,450,706 318,456,938
------------ ------------ ------------
Total deposits 353,803,063 355,758,860 332,052,884
Advances from Federal Home Loan Bank 98,059,213 82,410,982 18,614,050
Notes payable 2,770,456 -- --
Drafts payable 3,317,870 3,901,316 2,360,207
Advances by borrowers for taxes and insurance 1,108,614 823,111 1,082,838
Other liabilities 4,735,617 3,326,611 6,235,385
------------ ------------ ------------
Total liabilities 463,794,833 446,320,880 360,345,364
Shareholders' Equity:
Preferred stock (5,000,000 shares
authorized; none issued) -- -- --
Common stock ($1.00 par value; authorized
15,000,000 shares; issued shares:
3,146,616; 3,145,791 and 3,462,986,
respectively) 3,146,616 3,145,791 3,462,986
Additional paid-in capital 499,532 492,227 6,033,047
Retained earnings - substantially restricted 36,983,629 36,390,522 35,340,046
------------ ------------ ------------
Total shareholders' equity 40,629,777 40,028,540 44,836,079
------------ ------------ ------------
Total liabilities and shareholders'
equity $504,424,610 $486,349,420 $405,181,443
============ ============ ============
</TABLE>
See accompanying notes.
2
<PAGE>
<PAGE>
AMERIANA BANCORP AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME - UNAUDITED
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------
2000 1999
------- -------
<S> <C> <C>
Interest Income:
Interest on loans $6,594,813 $5,138,081
Interest on mortgage-backed
securities 232,230 304,432
Interest on investment securities 1,511,780 977,470
Other interest and dividend income 162,532 467,009
---------- ----------
Total interest income 8,501,355 6,886,992
Interest Expense:
Interest on deposits 4,032,767 3,608,565
Interest on FHLB advances and
other losses 1,352,899 225,848
---------- ----------
Total interest expense 5,385,666 3,834,413
---------- ----------
Net interest income 3,115,689 3,052,579
Provision for Loan Losses 70,000 37,500
---------- ----------
Net interest income after provision
for loan losses 3,045,689 3,015,079
Other Income:
Net loan servicing fees 80,570 56,352
Other fees and service charges 272,778 219,694
Brokerage and insurance
commissions 320,802 347,254
Net loss on investments in
unconsolidated affiliates (41,500) (48,750)
Gains on sales of loans and
servicing rights 17,355 162,449
Increase in cash surrender value
of life insurance 411,025 17,936
Other 36,771 29,217
---------- ----------
Total other income 1,097,801 784,152
Other Expense:
Salaries and employee benefits 1,696,235 1,449,606
Net occupancy expense 346,395 363,292
Federal insurance premium 19,183 46,560
Data processing expense 65,038 80,061
Printing and office supplies 76,688 103,502
Goodwill 45,700 47,235
Amortization of intangible assets 440,539 497,174
---------- ----------
Total other expense 2,689,778 2,587,430
---------- ----------
Income before income taxes 1,453,712 1,211,801
Income taxes 388,613 414,395
---------- ----------
Net Income $1,065,099 $ 797,406
========== ==========
<PAGE>
Basic Earnings Per Share $ 0.34 $ 0.23
========== ==========
Diluted Earnings Per Share $ 0.34 $ 0.23
========== ==========
Dividends Declared Per Share $ 0.15 $ 0.15
========== ==========
</TABLE>
See accompanying notes.
3
<PAGE>
<PAGE>
AMERIANA BANCORP AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - UNAUDITED
<TABLE>
<CAPTION>
Three Months Ended March 31,
------------------------------
2000 1999
------------ ---------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 1,065,099 $ 797,406
Adjustments to reconcile net income to net
cash provided by operating activities:
Provisions for losses on loans and real
estate owned 70,000 37,500
Depreciation and amortization 118,643 157,531
Equity in loss of limited partnership 41,500 48,750
Mortgage servicing rights amortization 22,621 63,682
Goodwill amortization 45,700 47,235
Deferred income taxes -- (2,615)
Losses on sales of real estate owned 28,535 --
Increase in cash surrender value of life
insurance (411,025) --
Mortgage loans originated for sale (1,325,320) (11,265,314)
Proceeds from sales of mortgage loans 1,541,101 13,435,134
Gains on sales of loans and servicing rights (17,355) (162,449)
Decrease (increase) in other assets 1,141,901 (3,362,606)
Decrease in drafts payable (583,446) (1,993,585)
Increase in other liabilities 1,694,355 2,404,701
------------ ------------
Net cash provided by operating activities 3,432,309 205,370
INVESTING ACTIVITIES
Net change in interest-bearing time deposits 1,399,000 (1,199,000)
Purchase of investment securities held to
maturity -- (26,958,406)
Proceeds from calls of securities held
to maturity -- 6,992,969
Principal collected on mortgage-backed
securities held to maturity 1,029,863 1,607,783
Net change in loans (29,968,127) 5,413,604
Proceeds from sale of real estate owned 2,100 20,000
Net purchases of premises and equipment (158,416) (68,877)
Other investing activities (651,400) (23,521)
------------ ------------
Net cash used by investing activities (28,346,980) (14,215,448)
FINANCING ACTIVITIES
Net change in demand and passbook deposits (1,875,229 4,642,216
Net change in certificates of deposit (80,568) (6,578,635)
Advances from Federal Home Loan Bank 68,000,000 2,000,000
Repayment of Federal Home Loan Bank advances (52,451,769) (486,649)
Increase in notes payable 2,770,456 --
Proceeds from exercise of stock options 8,131 17,759
Purchase of common stock -- (807,526)
Cash dividends paid (471,839) (529,792)
------------ ------------
Net cash provided (used) by financing
activities 15,899,182 (1,742,627)
------------ ------------
Decrease in cash and cash equivalents (9,015,489) (15,752,705)
Cash and cash equivalents at beginning of period 19,932,599 45,551,237
------------ ------------
Cash and cash equivalents at end of period $ 10,917,110 $ 29,798,532
============ ============
Supplemental information:
Interest paid $ 3,890,517 $ 2,196,582
Income taxes paid 250,000 100,000
</TABLE>
See accompanying notes.
4
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<PAGE>
AMERIANA BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
NOTE A - - BASIS OF PRESENTATION
The unaudited interim consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q
and, therefore, do not include all information and disclosures
required by generally accepted accounting principles for
complete financial statements. In the opinion of management,
the financial statements reflect all adjustments (comprised only
of normal recurring adjustments and accruals) necessary to
present fairly the Company's financial position as of March 31,
2000, and the results of operations and changes in cash flows
for the three-month periods ended March 31, 2000 and 1999. A
summary of the Company's significant accounting policies is set
forth in Note 1 of Notes to Consolidated Financial Statements in
the Company's annual report on Form 10-K for the year ended
December 31, 1999.
NOTE B - - SHAREHOLDERS' EQUITY
On February 28, 2000, the Board of Directors declared a
quarterly cash dividend of $.15 per share. This dividend,
totaling $471,992, was accrued for payment to shareholders of
record on March 17, 2000, and was paid on April 7, 2000.
During the quarter ended March 31, 2000, 825 new shares were
issued from exercise of stock options and total equity was
increased by $8,131 due to cash proceeds and tax benefits from
these stock option exercises.
Earnings per share were computed as follows:
<TABLE>
<CAPTION>
Three Months Ended March 31,
-----------------------------
2000 1999
--------------------------------------------------------------------------------------
Weighted Per Weighted Per
Average Share Average Share
Income Shares Amount Income Shares Amount
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Basic Earnings per Share:
Income available to
common shareholders $1,065,099 3,145,954 $.34 $797,406 3,490,638 $.23
Effect of Dilutive Stock
Options -- 194 -- 33,509
Diluted Earnings Per Share:
--------------------------------------------------------------------------------------
Income available to
common shareholders and
assumed conversions $1,065,099 3,146,148 $.34 $797,406 3,524,147 $.23
--------------------------------------------------------------------------------------
</TABLE>
NOTE C - RECLASSIFICATIONS
Certain reclassifications of 1999 amounts have been made to
conform to the 2000 presentation.
5
<PAGE>
<PAGE>
AMERIANA BANCORP AND SUBSIDIARIES
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
General
-------
This Quarterly Report on Form 10-Q ("Form Q") may contain
statements which constitute forward looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements appear in a number of places in this
Form 10-Q and include statements regarding the intent, belief,
outlook, estimate or expectations of the Company primarily with
respect to future events and future financial performance.
Readers of this Form 10-Q are cautioned that any such forward
looking statements are not guarantees of future events or
performance and involve risks and uncertainties, and that actual
results may differ materially from those in the forward looking
statements as a result of various factors. The accompanying
information contained in this Form 10-Q identifies important
factors that could cause such differences. These factors
include changes in interest rates; loss of deposits and loan
demand to other financial institutions; substantial changes in
financial markets; changes in real estate values and the real
estate market or regulatory changes.
The largest components of the Company's total revenue and total
expenses are interest income and interest expense, respectively.
Consequently, the Company's earnings are primarily dependent on
its net interest income, which is determined by (i) the
difference between rates of interest earned on interest-earning
assets and rates paid on interest-bearing liabilities ("interest
rate spread"), and (ii) the relative amounts of interest earning
assets and interest-bearing liabilities. Levels of other income
and operating expenses also significantly affect net income.
Management believes that interest rate risk, i. e., the
sensitivity of income and net asset values to changes in
interest rates, is one of the most significant determinants of
the Company's ability to generate future earnings. Accordingly,
the Company has implemented a long-range plan intended to
minimize the effect of changes in interest rates on operations.
The asset and liability management policies of the Company are
designed to stabilize long-term net interest income by managing
the repricing terms, rates an relative amounts of interest-
earning assets and interest-bearing liabilities.
RESULTS OF OPERATIONS
---------------------
During the first quarter of 2000, the loan volume increased and
consisted of variable rate consumer mortgages, consumer loans
and commercial real estate loans. The loans outstanding
increased $29,582,510 and 9.05% to $356,387,249 during the
quarter from $326,804,739 at December 31, 1999. The mortgage
loans held for sale decreased to zero at March 31, 2000, from
$207,400 at December 31, 1999, as there were no loans that had
been committed to be sold to the secondary market.
Sales of loans to the secondary market significantly decreased
to $1,541,101 during the first quarter of 2000 compared to
$13,435,134 during the first quarter of 1999. This had a
significant effect on the gain on sale of loans in 2000. See
comments on other income for detail of gains on loans sold.
This reduction is due to consumer mortgages being made as
variable rate loans and being retained in portfolio verses in
1999 more of these loans were made as fixed rate loans and sold
to the secondary market.
The net interest spread (difference between yield on interest-
earning assets and cost on interest-bearing liabilities) has
decreased .21% during the first quarter of 2000 compared to the
first quarter 1999. The reduction is due to the increase in
interest yield of .22% on interest-earning average assets being
less than the .43% increase in cost on interest-bearing average
liabilities. The increase of the cost of liabilities has
resulted from increased rates on the Federal Home Loan Bank
borrowings and deposit
6
<PAGE>
<PAGE>
costs during the first quarter of 2000 compared to first quarter
1999. The reduction in yields during 2000 is the result of
making variable rate consumer mortgages, at lower than the fixed
rate consumer mortgages during 1999 and retaining them in the
portfolio.
The following table summarizes the Company's average net
interest-earning assets and average interest-bearing liabilities
with the accompanying average rates for the first quarter of
2000 and 1999:
<TABLE>
<CAPTION>
(Dollars in Thousands)
----------------------
Three Months Ended March 31,
----------------------------
2000 1999
---- ----
<S> <C> <C>
Average balances:
Interest-earning assets $453,598 $382,646
Interest-bearing liabilities 427,632 336,794
-------- --------
Net interest-earning assets $ 25,966 $ 45,852
-------- --------
Average yield on:
Interest-earning assets 7.52% 7.30%
Interest-bearing liabilities 5.05 4.62
---- ----
Net interest spread 2.47% 2.68%
---- ----
</TABLE>
Net interest income for the first quarter 2000 was $3,115,689
and was $63,110 and 2.07% more than $3,052,579 during the first
quarter of 1999. This increase is due to higher interest
expense being more than offset by higher interest income. The
$1,614,000 increase in interest income on average interest-
earning assets is a combination of an increase of $1,370,000
because of the increase in the volume mix of average outstanding
interest-bearing assets plus $244,000 because of increased rates
on average interest-earning assets. The increase of $1,551,000
in cost of interest-bearing liabilities is a combination of an
increase of $1,309,000 from higher average balances and $242,000
from higher rates on average interest-bearing liabilities. The
net interest margin ratio, which is net income divided by
average earning assets, decreased to 2.76% for the first quarter
2000 compared to 3.24% for the first quarter of 1999. The
following table sets forth the details of the rate and volume
change for the first quarter of 2000 compared to first quarter
1999. Dollars are in thousands.
<TABLE>
<CAPTION>
First quarter Ended March 31,
2000 vs. 1999
-------------
Increase (Decrease)
Due to Change in
----------------
Volume Rate Net Change
------ ---- ----------
<S> <C> <C> <C>
Interest Income:
Loans and mortgage-backed securities $1,404 $ (20) $1,384
Other interest-earning assets (34) 264 230
------ ----- ------
Total interest-earning assets 1,370 244 1,614
------ ----- ------
Interest Expense:
Deposits 242 183 425
FHLB advance and other loans 1,067 59 1,126
------ ----- ------
Total interest-bearing liabilities 1,309 242 1,551
------ ----- ------
Change in net interest income $ 61 $ 2 $ 63
------ ----- ------
</TABLE>
<PAGE>
The provision for loan losses was $70,000 during 2000 and was up
from $37,500 during 1999. Net charge-offs were $203,000 and
$13,000 for 2000 and 1999 first quarters, respectively. The
large increase in net charge-offs during 2000 included a loan
for $172,000 which had been identified and provided for during
the last quarter of 1999.
7
<PAGE>
<PAGE>
The following table summarizes the Company's non-performing
assets at:
<TABLE>
<CAPTION>
(Dollars in Thousands)
----------------------
March 31, December 31, March 31,
2000 1999 1999
---- ---- ----
<S> <C> <C> <C>
Loans:
Non-accrual $ 722 $1,171 $ 867
Over 90 days delinquent 40 25 585
Trouble debt restructured 887 751 917
Real estate owned 152 0 104
------ ------ ------
Total $1,801 $1,947 $2,473
------ ------ ------
</TABLE>
Management believes the allowance for loan losses is adequate
and that sufficient provision has been provided to absorb any
losses, which may ultimately be incurred on non-performing loans
and the remainder of the portfolio. The allowance for loan
losses as a percentage of loans at the end of the period was
.39%, .47% and .51% at March 31, 2000, December 31, 1999 and
March 31, 1999, respectively.
Total other income for the first quarter 2000 increased $313,649
and 40.00% to $1,097,801 from $784,152 in the same period during
1999. As noted earlier, sales of loans to the secondary market
were reduced in 2000 and the gain on sales was $145,094 lower in
2000 than in 1999. The brokerage and insurance commission
income was also down $26,452 and 7.62% in 1999 due mostly to
lower title insurance income. These reductions were offset by
gains in net loan servicing fees, other fees and service charges
and net loss on investments in unconsolidated affiliates of
$24,218, $53,084, and $7,250, respectively. Cash surrender
value of life insurance had a significant increase to $411,025
in 2000 verses only $17,936 in 1999 for an increase of $393,089.
The banks invested in insurance products during 1999 and this
investment partially accounted for the large increase in
insurance income. This category also included one-time
adjustments to certain cash surrender values on life insurance
policies carried on retired executives in the amount of
approximately $197,000.
Total other expense increased $102,348 and 3.96% in 2000 to
$2,689,778 from $2,587,430 during 1999. The majority of these
expense increases are due to operating one more branch in 2000
than in 1999 and operating a trust department in 2000 and not in
1999.
FINANCIAL CONDITION
-------------------
The Company's principal sources of funds are cash generated from
operations, deposits, loan principal repayments and advances
from the Federal Home Loan Bank ("FHLB"). As of March 31, 2000,
the Company's cash and interest-bearing time deposits totaled
$10,917,110 and 2.16% of total assets. This compares with
$19,932,599 and 4.10% of total assets at December 31, 1999. The
Company's banking subsidiaries, Ameriana Bank and Trust of
Indiana ("ABI") and Ameriana Bank of Ohio ("ABO") have
regulatory liquidity ratios of 14.14% and 7.93%, respectively,
which exceeds the 4.0% liquidity base set by the Office of
Thrift Supervision ("OTS").
The regulatory minimum net worth requirement of 8% for ABI and
ABO under the most stringent of the three capital regulations
(total risk-based capital to risk-weighted assets) at March 31,
2000, was $17,195,000 and $5,019,000, respectively. At March
31, 2000, ABI had total risk-based capital of $32,631,000 and a
15.18% ratio and ABO had risk-based capital of $8,452,000 and a
13.47% ratio.
At March 31, 2000, the Company's commitments for loans in
process totaled $19,420,000, with 98% being for real estate
secured loans. Management believes the Company's liquidity and
other sources of funds will be sufficient to fund all
outstanding commitments and other cash needs.
8
<PAGE>
<PAGE>
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT INTEREST
RATE RISK
Interest Rate Risk
ABI and ABO are subject to interest rate risk to the degree that
their interest-bearing liabilities, primarily deposits, mature
or reprice at different rates than their interest-earning
assets. Although having liabilities that mature or reprice less
frequently on average than assets will be beneficial in times of
rising interest rates, such an asset/liability structure will
result in lower net income during periods of declining interest
rates, unless offset by other factors.
It is important to ABI and ABO to manage the relationship
between interest rates and the effect on their net portfolio
value ("NPV"). This approach calculates the difference between
the present value of expected cash flows from assets and the
present value of expected cash flows from liabilities, as well
as cash flows from off-balance sheet contracts. Assets and
liabilities are managed within the context of the marketplace,
regulatory limitations and within its limits on the amount of
change in NPV, which is acceptable given certain interest rate
changes.
The Office of Thrift Supervision ("OTS") issued a regulation,
which uses a net market value methodology to measure the
interest rate risk exposure of savings associations. Under this
OTS regulation an institution's "normal" level of interest rate
risk in the event of an assumed change in interest rates is a
decrease in the institution's NPV in an amount not exceeding 2%
of the present value of its assets. Savings associations with
over $300 million in assets or less than a 12% risk-based
capital ratio are required to file OTS Schedule CMR. Data from
Schedule CMR is used by the OTS to calculate changes in NPV (and
the related "normal" level of interest rate risk) based upon
certain interest rate changes (discussed below). Associations,
which do not meet either of the filing requirements, are not
required to file OTS Schedule CMR, but may do so voluntarily.
ABI and ABO both file Schedule CMR. As ABO does not meet either
of these requirements, it is not required to file Schedule CMR,
although it does so voluntarily. Under the regulation,
associations that must file are required to take a deduction
(the interest rate risk capital component) from their total
capital available to calculate their risk-based capital
requirement if their interest rate exposure is greater than
"normal." The amount of that deduction is one-half of the
difference between (a) the institution's actual calculated
exposure to a 200 basis point interest rate increase or decrease
(whichever results in the greater pro forma decrease in NPV) and
(b) its "normal" level of exposure which is 2% of the present
value of its assets on the Thrift Financial Report filed two
quarters earlier.
The following information and schedules for ABO and ABI are
required to be presented. The current analysis for ABO and ABI
performed by the OTS as of March 31, 2000, has not been received
from the OTS and the following interest rate risk measurements
for ABO and ABI are being submitted with information from the
OTS analysis as of December 31, 1999. Management believes there
has been no significant increase in the interest rate risk
measures since December 31, 1999, for either ABO or ABI. Both
banks have instituted measures to reduce their interest rate
risk results by extending maturities of deposits and FHLB
advances and by retaining more variable verses fixed rate loans.
Presented below, as of December 31, 1999, is an analysis
performed by the OTS of ABO's interest rate risk as measured by
changes in NPV for instantaneous and sustained parallel shifts
in the yield curve, in 100 basis point increments, up and down
300 basis points. At June 30, 1999, 2% of the present value of
ABO's assets was $1.826 million. Because the interest rate risk
of a 200 basis point increase in market rates (which was greater
than the interest rate risk of a 200 basis point decrease) was
$5.823 million at December 31, 1999, ABO would have been
required to make a $1.999 million deduction from its total
capital available to calculate its risk-based capital
requirements. This reduction in
9
<PAGE>
<PAGE>
capital would reduce ABO's risk-based capital ratio to 10.75%
from 14.17% which is still in excess of the required risk-based
ratio of 8.0%.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
NPV as Percent of
Net Portfolio Value Present Value of Assets
----------------------------------------------------------------------------------------
Change Dollar Dollar Percent
In Rates Amount Change Change NPV Ratio Change
----------------------------------------------------------------------------------------
(Dollars in thousands)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
+300 bp $ -1,154 $-8,875 -115% -1.09% -772 bp
+200 bp 1,898 -5,823 -75 1.73% -489 bp
+100 bp 4,913 -2,808 -36 4.34% -228 bp
0 bp 7,720 6.63%
-100 bp 9,967 2,247 +29 8.35% +172 bp
-200 bp 10,887 3,167 +41 8.99% +236 bp
-300 bp 11,547 3,827 +50 9.42% +279 bp
* basis points
</TABLE>
Also presented below, as of December 31, 1999, is an analysis,
performed by the OTS, of ABI's interest rate risk as measured by
changes in NPV for instantaneous and sustained parallel shifts
in the yield curve, in 100 basis point increments, up and down
300 basis points. At June 30, 1999, 2% of the present value of
ABI's assets was $6.477 million. Because the interest rate risk
of a 200 basis point increase in market rates (which was greater
than the interest rate risk of a 200 basis point decrease) was
$13.689 million at December 31, 1999, ABI would have been
required to make a $3.606 million deduction from its total
capital available to calculate its risk-based capital
requirement. This reduction in capital would reduce ABI's risk-
based capital ratio to 13.81% from 15.58%, which is still in
excess of the required risk-based capital ratio of 8.0%.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
NPV as Percent of
Net Portfolio Value Present Value of Assets
----------------------------------------------------------------------------------------
Change Dollar Dollar Percent
In Rates Amount Change Change NPV Ratio Change
----------------------------------------------------------------------------------------
(Dollars in thousands)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
+300 bp $ 9,544 $-20,773 -69% 2.80% -549 bp
+200 bp 16,628 -13,689 -45 4.76 -353 bp
+100 bp 23,691 -6,626 -22 6.62 -167 bp
0 bp 30,317 8.29
-100 bp 35,897 5,580 +18 9.63 +134 bp
-200 bp 36,485 6,168 +20 9.73 +144 bp
-300 bp 36,874 6,557 +22 9.79 +150 bp
* basis points
</TABLE>
Presented below, as of December 31, 1998, is an analysis
performed by the OTS of ABO's interest rate risk as measured by
changes in NPV for instantaneous and sustained parallel shifts
in the yield curve, in 100 basis point increments, up and down
400 basis points. At June 30, 1998, 2% of the present value of
ABO's assets was $1.535 million. Because the interest rate risk
of a 200 basis point decrease in market rates (which was greater
than the interest rate risk of a 200 basis point increase) was
$1.113 million at December 31, 1998, ABO would not have been
required to make a capital deduction.
10
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
NPV as Percent of
Net Portfolio Value Present Value of Assets
----------------------------------------------------------------------------------------
Change Dollar Dollar Percent
In Rates Amount Change Change NPV Ratio Change
----------------------------------------------------------------------------------------
(Dollars in thousands)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
+400 bp $ 9,781 $ -628 -6% 11.07% -8 bp
+300 bp 10,397 -12 0 11,56 +41 bp
+200 bp 10,781 371 +4 11.79 +64 bp
+100 bp 10,805 395 +4 11.67 +52 bp
0 bp 10,409 11.15
-100 bp 9,793 -616 -6 10.42 -73 bp
-200 bp 9,296 -1,113 -11 9.80 -135 bp
-300 bp 9,080 -1,330 -13 9.46 -169 bp
-400 bp 8,813 -1,596 -15 9.07 -208 bp
* basis points
</TABLE>
Also presented below, as of December 31, 1998, is an analysis,
performed by the OTS, of ABI's interest rate risk as measured by
changes in NPV for instantaneous and sustained parallel shifts
in the yield curve, in 100 basis point increments, up and down
400 basis points. At June 30, 1998, 2% of the present value of
ABI's assets was $6.113 million. Because the interest rate risk
of a 200 basis point increase in market rates (which was greater
than the interest rate risk of a 200 basis point decrease) was
$7.620 million at December 31, 1998, ABI would have been
required to make a $754 thousand deduction from its total
capital available to calculate its risk-based capital
requirement. This reduction in capital would reduce ABI's risk-
based capital ratio to 21.5% from 22.0%, which is still in
excess of the required risk-based capital ratio of 8.0%.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
NPV as Percent of
Net Portfolio Value Present Value of Assets
----------------------------------------------------------------------------------------
Change Dollar Dollar Percent
In Rates Amount Change Change NPV Ratio Change
----------------------------------------------------------------------------------------
(Dollars in thousands)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
+400 bp $ 27,724 $ -16,888 -38% 9.23% -447 bp
+300 bp 32,548 -12,063 -27 10.59 -311 bp
+200 bp 36,992 -7,620 -17 11.79 -191 bp
+100 bp 40,952 -3,659 -8 12.80 -90 bp
0 bp 44,612 13.70
-100 bp 45,743 2,982 +7 13.82 +92 bp
-200 bp 53,040 8,429 +19 15.67 +197 bp
-300 bp 58,640 14,029 +31 16.93 +323 bp
-400 bp 64,241 19,629 +44 18.12 +442 bp
* basis points
</TABLE>
As with any method of measuring interest rate risk, certain
shortcomings are inherent in the methods of analysis presented
above. For example, although certain assets and liabilities may
have similar maturities or periods to repricing, they may react
in different degrees to changes in market interest rates. Also,
the interest rates on certain types of assets and liabilities
may fluctuate in advance of changes in market interest rates,
while interest rates on other types may lag behind changes in
market rates. Additionally, certain assets, such as adjustable-
rate loans, have features that restrict changes in interest
rates on a short-term basis and over the life of the asset.
Further, in the event of a change in interest rates, expected
rates of prepayments on loans and early withdrawals from
certificates could likely deviate significantly from those
assumed in calculating the table. Finally, the ability of many
borrowers to
11
<PAGE>
<PAGE>
service their debt may decrease in the event of an interest rate
increase. The Company considers all of these factors in
monitoring its exposure to interest rate risk.
OTHER
-----
The Securities and Exchange Commission ("SEC") maintains
reports,
proxy information, statements and other information regarding
registrants that file electronically with the SEC, including the
Company. The address is (http://www.sec.gov).
12
<PAGE>
<PAGE>
SIGNATURES
AMERIANA BANCORP AND SUBSIDIARIES
Pursuant to the requirements of Section 13 or 15 (d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
AMERIANA BANCORP
DATE: May 30, 2000 /s/ Harry J. Bailey
------------ -------------------------------
Harry J. Bailey
President and
Chief Executive Officer
(Duly Authorized Representative)
DATE: May 30, 2000 /s/ Richard E. Welling
------------ -------------------------------
Richard E. Welling
Senior Vice President-Treasurer
(Principal Financial Officer
and Accounting Officer)
13
