Ameriana Bancorp won’t apply for TARP

Ameriana Bancorp that owns Ameriana Bank, SB made a statement about its decision not to participate in the U.S. Treasury Department’s Troubled Asset Relief Program Capital Purchase Program. With the preliminary approval received from the U.S. Treasury Department the company will place up to $9.8 million in senior preferred stock.

Jerome J. Gassen, President and Chief Executive Officer, stated, “Preliminary approval was an acknowledgement of our financial strength. However, after careful consideration of the Company’s current financial condition, capital position, 2009 outlook, expected liquidity and funding needs and the current and potential future requirements of the program that may impose restrictions on our business operations, the board elected not to participate in the program. We plan to continue to implement our strategic plan to achieve long-term value for the shareholders by expanding our footprint and product offerings, with a focus on commercial banking.” 

As of December 31, 2008 the company had a Total Risk-Based Capital Ratio of 12.87%, which exceeds the 10.00% threshold to be considered “well capitalized” under regulatory standards.