Ameriana Bancorp (NASDAQ:ASBI) today announced grid return of $383,000 or $0.13 per focal and diluted allocation for the thirteen weeks ended March 31, 2008, reversing a ensnare forfeiture of $24,000 or $0.01 per elementary and diluted allot in the year-earlier period.
The neighbourhood included continued enlargement in Ameriana's credit portfolio and continuing rise in its lace-work interest margin, both of which contributed to higher take home interest income for the quarter. Also, in the oldest quarter of 2008, the Company reported a reduction in other ruin as well as a advantage from the resolution of a long-standing levy issue. These overall improvements were in some measure offset by a higher provision for allowance losses in the first quarter compared with the same time last year, as Ameriana maintained a dyed in the wool posture toward potency risk in its loan portfolio in entertaining of current economic pressures and the late-model rise in the level of non-performing loans. Commenting on the results, Jerome J. Gassen, President and Chief Executive Officer, said, "We are in seventh heaven that our intumescence strategies persist in to turn into improved issue fundamentals, influential to ongoing loan and deposit vegetation in the first quarter of 2008 and extending the good we achieved last year.
These accomplishments are unusually unusual considering the current competitive environment. Furthermore, our higher reticle fee margin for the first quarter demonstrates the utter impact of our asset and burden management efforts, and our ability to behave quickly to declining interest upbraid levels. We believe this progress, coupled with the acceleration of our swelling activities, gives us a blank start to 2008 and provides the basement for improved performance over the longer term.
" Ameriana's higher yield for the inception quarter of 2008 reflects evolution in the Company's loan portfolio. A greater converge on commercial lending remains at the middle of this success, contributing a 20% strengthen in the Company's commercial advance portfolio over the done with year and driving a 12% overall inflate in the total loan portfolio since March 31, 2007. In terms of real expansion, Gassen famed that Ameriana recently announced plans to untie two unfamiliar full-service banking centers in Hamilton County, which lies just north of Marion County and Indianapolis. The original offices in Fishers and Carmel, expected to launch in October 2008 and January 2009, respectively, will boost Ameriana's manifestness in one of the fastest growing areas of Indiana, considerably increment its footprint in the Indianapolis area, and promote the Company's overall visibility in this market.
Net moment revenue for the maiden mercy of 2008 increased 17% to $2,725,000 from $2,333,000 in the year-earlier period. This reflected the assertive belongings of the Company's equalize paper restructuring strategies that began in current 2006, Ameriana's increased priority on commercial lending and its higher yields, and efforts to mitigate funding costs despatch in a declining-rate environment. Net consequence line on a fully tax-equivalent point of departure for the first quarter was 2.97%, up seven constituent points from 2.90% in the fourth post of 2007 and 36 infrastructure points ahead of 2.61% in the year-earlier quarter.
Advertisement Although the Company has no view to sub-prime lending products in its accommodation portfolio, the Company's overall impute mark showed the increasing prevail upon of current macroeconomic conditions in the start with quarter. Non-performing loans at March 31, 2008 totaled $4,557,000, up $1,919,000 from $2,638,000 at December 31, 2007 and $1,028,000 from $3,529,000 at March 31, 2007. The augment from December 31, 2007 was correlated fundamentally to five genuine chattels event loans in the Hancock County, Indiana square totaling $1,275,000 that represented two long-time lending relationships. Ameriana increased its stock for loan losses to $371,000 for the victory accommodate compared with $90,000 in the year-earlier age to demonstrate the prolong in non-performing loans and the increase in the loan portfolio. The Company's remuneration for loan losses totaled 0.97% of reckon loans as of March 31, 2008, versus 0.90% at December 31, 2007 and 1.02% at March 31, 2007.
Other gain for the beginning point of 2008 was $1,141,000, up 16% from $985,000 in the same quadrature in 2007, principally due to higher commissions from surety sales and a $49,000 pre-tax get further from the jaundiced redemption of the Company's judiciousness quicken in Visa realized through Visa's just out initial public offering. Other detriment for the first quarter declined 4% to $3,392,000 from $3,545,000 in the same put up behind year, largely due to decrease compensation costs this year reflecting severance costs incurred hindmost year, humble legal and veteran fees with the mid-2007 conclusion of the Company's case with RLI, and non-recurring recruiting costs incurred in the basic place of 2007. For the first location of 2008, the Company's earnings included a $280,000 profit tax benefit. This was due particularly to the significant amount of tax-exempt absorb on municipal securities, tax-exempt takings from increases in the cash value of sustenance insurance, and a $150,000 turn-about of an income tax liability recorded in old years that resulted from a favorable overload court ruling with respect to the application of the Tax Equity and Fiscal Responsibility Act incarceration to investment subsidiaries of commercial banks.
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