Ameriana Bancorp, parent company for Ameriana Bank, announced earnings for the fourth quarter of 2013 of $481,000, or $0.16 per basic and diluted share, compared with $577,000, or $0.19 per basic and diluted share, for the fourth quarter of 2012.
In a release on Feb. 7, the Company said that for 2013, Ameriana's net income increased $347,000, or 18.9 percent, to $2.2 million, or $0.73 per basic and diluted share, compared with $1.8 million or $0.62 per basic and diluted share, in 2012.
Jerome Gassen, President and Chief Executive Officer, said, "We are pleased to report solid fourth quarter results, which contributed to another year of earnings growth for Ameriana Bancorp and additional improvement in the Bank's credit metrics, all of which were accomplished in a stubbornly difficult business environment. Competition for business loans was very strong throughout the year and was one of the factors that contributed to the net interest margin compression, which presented a major challenge for the banking industry in 2013. The Company was successful in achieving a net interest margin of 3.63 percent for the year, which represented a decrease of 8 basis points, and the underlying interest rate spread at year-end provides a strong foundation for future earnings growth.
"I am particularly pleased with the growth of our customer base in our newer Indianapolis-area banking centers. As a result of our focused marketing initiatives and the efforts of our associates, centered on our delivery of an 'omnichannel' product and service experience, we have gained new relationships that provide the Bank with a solid base of low-cost deposits and continuing cross-sell opportunities."
Net loans receivable of $312.0 million at Dec. 31, 2013, represented a decrease of $6.8 million for the fourth quarter that related mostly to several payoffs of large commercial credits and also resulted in a decline of $1.4 million in total loans receivable for the year. The Bank realized a $2.4 million, or 31.7 percent, reduction for the quarter in non-performing loans to $5.1 million at Dec. 31, 2013. With this improvement, the allowance for loan losses as a percentage of non-performing loans increased from 53.1 percent at Sept. 30, 2013, to 78.8 percent at Dec. 31, 2013. The improvement in loan quality also permitted a $175,000 reduction in the provision for loan losses to $80,000 for the fourth quarter of 2013, compared with $225,000 in the year-earlier quarter.
Other real estate owned at Dec. 31, 2013, totaled $5.2 million - a $1.2 million, or 18.3 percent, improvement for the year. The Bank had a net loss from other real estate owned of $43,000 for the fourth quarter and $35,000 for the year, compared to net losses of $343,000 and $520,000 for the same periods of 2012, respectively.
Deposit growth of $13.1 million, or 3.8 percent, for the fourth quarter produced a $6.0 million increase for the year to $362.7 million at Dec. 31, 2013. The Bank's strong focus on developing new relationships produced 6.8 percent growth in the number of checking accounts during the year and continued the positive trend of increased fee income from deposit accounts to $2.5 million for 2013 - a $139,000 improvement over 2012.
Earnings for the fourth quarter of 2013 were $96,000 lower than the same quarter of 2012, due in part to a $182,000 increase in non- interest expense, which resulted primarily from a $196,000 increase in expense for the Company's frozen defined benefit pension plan.
Ameriana Bancorp is a bank holding company.
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