SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q


                                QUARTERLY REPORT


                       Pursuant to Section 13 or 15 (d) of
                       The Securities Exchange Act of 1934


For the Quarter Ended:
---------------------

     September 30, 2001                    Commission File Number  0-18392
                                                                   -------


                                Ameriana Bancorp

Indiana                                            35-1782688
-------------------------------        ---------------------------------
(State or other jurisdiction of        (I.R.S. employer identification
 incorporation or organization)         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 November 12, 2001,  there were issued and outstanding  3,146,616 shares of
the registrant's common stock.


                                  1 of 15 Pages
<PAGE>

AMERIANA BANCORP AND SUBSIDIARIES



                                    CONTENTS


PART I  -  FINANCIAL INFORMATION                                        Page No.
                                                                        -------

     ITEM 1 - Financial statements

              Consolidated Condensed Statements of Condition
              as of September 30, 2001, December 31, 2000 and
              September 30, 2000 . . . . . . . . . . . . . . . . . . . . . . 3

              Consolidated Condensed Statements of Income for
              the Three and Nine Months Ended
              September 30, 2001 and 2000. . . . . . . . . . . . . . . . . . 4

              Consolidated Condensed Statements of Cash Flows for the
              Nine Months Ended September 30, 2001 and 2000. . . . . . . . . 5

              Notes to Consolidated Condensed Financial
              Statements . . . . . . . . . . . . . . . . . . . . . . . . . . 6


     ITEM 2 - Management's Discussion and Analysis of
              Financial Condition and Results of
              Operations . . . . . . . . . . . . . . . . . . . . . . . . . . 8

     ITEM 3 - Quantitative and Qualitative Disclosure
              About Interest Rate Risk . . . . . . . . . . . . . . . . . . . 12


PART II  -  OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . 14


SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15


                                                                               2
<PAGE>
PART I  -  FINANCIAL INFORMATION

                        AMERIANA BANCORP AND SUBSIDIARIES
           CONSOLIDATED CONDENSED STATEMENTS OF CONDITION - Unaudited
                        (In thousands, except share data)
<TABLE>
<CAPTION>
                                                         September 30,  December 31, September 30,
                                                              2001         2000          2000
                                                         -------------  ------------ ------------
<S>                                                        <C>          <C>          <C>
Assets

  Cash on hand and in other institutions                   $   6,530    $  14,609    $   8,610
  Interest-bearing demand deposits                            14,083        4,422        4,144
  Interest-bearing time deposits                                --           --           --
  Investment securities held to maturity  (fair
     value of  $33,177, $86,152
     and $83,011, respectively)                               33,278       87,901       87,859
  Mortgage-backed securities held to maturity (fair
     value of $50,723, $11,711
     and $11,847, respectively)                               50,614       11,806       11,991
  Mortgage loans held for sale                                 3,029          203          591
  Loans receivable                                           365,262      398,775      385,581
  Allowance for loan losses                                   (1,726)      (1,489)      (1,400)
                                                           ---------    ---------    ---------
      Net loans receivable                                   363,536      397,286      384,181
  Real estate owned                                              143          125           27
  Premises and equipment                                       6,870        7,097        7,340
  Stock in Federal Home Loan Bank                              7,344        7,265        6,053
  Mortgage servicing rights                                      914          847          852
  Investments in unconsolidated affiliates                       858        1,037        1,065
  Intangible assets                                            1,546        1,670        1,715
  Cash surrender value of life insurance                      17,807       17,089       16,902
  Other assets                                                 4,831        5,931        4,685
                                                           ---------    ---------    ---------
          Total assets                                     $ 511,383    $ 557,288    $ 536,015
                                                           =========    =========    =========
Liabilities and Shareholders' Equity

Liabilities:
  Deposits:
         Noninterest-bearing                               $  20,302    $  12,927    $  17,057
         Interest-bearing                                    371,210      354,668      353,895
                                                           ---------    ---------    ---------
            Total deposits                                   391,512      367,595      370,952
  Advances from Federal Home Loan Bank                        66,405      138,751      111,717
  Notes payable                                                1,330        2,421        2,420
  Drafts payable                                               3,227        3,039        3,407
  Advances by borrowers for taxes and insurance                  959          939        1,174
  Other liabilities                                            5,071        2,832        4,920
                                                           ---------    ---------    ---------
          Total liabilities                                  468,504      515,577      494,590

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; 3,146,616 and 3,146,616, respectively)       3,147        3,147        3,147
  Additional paid-in capital                                     499          499          499
  Retained earnings-substantially restricted                  39,233       38,065       37,779
                                                           ---------    ---------    ---------
          Total shareholders' equity                          42,879       41,711       41,425
                                                           ---------    ---------    ---------
          Total liabilities and shareholders' equity       $ 511,383    $ 557,288    $ 536,015
                                                           =========    =========    =========
</TABLE>
See accompanying notes.

                                                                               3
<PAGE>
                         AMERIANA BANCORP AND SUBSIDIARIES
              CONSOLIDATED CONDENSED STATEMENTS OF INCOME - Unaudited
                         (In thousands, except share data)
<TABLE>
<CAPTION>
                                                            Three Months Ended      Nine Months Ended
                                                               September 30,          September 30,
                                                            ------------------     -------------------
                                                             2001        2000       2001        2000
                                                            ------      ------     -------     -------
<S>                                                         <C>         <C>        <C>         <C>
Interest Income:
   Interest on loans                                        $7,128      $7,665     $22,503     $21,513
   Interest on mortgage-backed securities                      214         223         621         691
   Interest on investment securities                           926       1,514       3,752       4,540
   Other interest and dividend income                          297         177         685         489
                                                            ------      ------     -------     -------
      Total interest income                                  8,565       9,579      27,561      27,233

Interest Expense:
   Interest on deposits                                      4,696       4,551      14,272      12,835
   Interest on FHLB advances and other loans                 1,072       2,015       4,358       5,106
                                                            ------      ------     -------     -------
      Total interest expense                                 5,768       6,566      18,630      17,941
                                                            ------      ------     -------     -------
Net interest income                                          2,797       3,013       8,931       9,292

Provision for Loan Losses                                       90         119         270         298
                                                            ------      ------     -------     -------
Net interest income after provision for loan losses          2,707       2,894       8,661       8,994

Other Income:
   Net loan servicing fees                                      51          66         164         223
   Other fees and service charges                              325         318         957         893
   Brokerage and insurance commissions                         256         255         764         844
   Net loss on investments in unconsolidated affiliates        (90)        (40)       (179)       (114)
   Gains on sales of loans and servicing rights                180          28         408          62
   Increase in cash surrender value of life insurance          220         187         717         785
   Other                                                        57          43         160         119
                                                            ------      ------     -------     -------
      Total other income                                       999         857       2,991       2,812

Other Expense:
   Salaries and employee benefits                            1,590       1,614       4,828       4,950
   Net occupancy expense                                       376         394       1,121       1,124
   Federal insurance premium                                    19          18          54          56
   Data processing expense                                      77          65         214         208
   Printing and office supplies                                 87          65         251         227
   Amortization of intangible assets                            36          46         124         137
   Other                                                       505         452       1,514       1,390
                                                            ------      ------     -------     -------
      Total other expense                                    2,690       2,654       8,106       8,092
                                                            ------      ------     -------     -------
Income before income taxes                                   1,016       1,097       3,546       3,714

Income taxes                                                   265         234         962         910
                                                            ------      ------     -------     -------
Net Income                                                  $  751      $  863     $ 2,584     $ 2,804
                                                            ======      ======     =======     =======

Basic Earnings Per Share                                    $ 0.24      $ 0.27     $  0.82     $  0.89
                                                            ======      ======     =======     =======
Diluted Earnings Per Share                                  $ 0.24      $ 0.27     $  0.82     $  0.89
                                                            ======      ======     =======     =======
Dividends Declared Per Share                                $ 0.15      $ 0.15     $  0.45     $  0.45
                                                            ======      ======     =======     =======

</TABLE>

See accompanying notes.
                                                                               4
<PAGE>
                        AMERIANA BANCORP AND SUBSIDIARIES
           CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - Unaudited
                                 (In thousands)
<TABLE>
<CAPTION>
                                                              Nine Months Ended
                                                                 September 30,
                                                            ----------------------
                                                              2001          2000
                                                            ---------    ---------
<S>                                                         <C>          <C>
OPERATING ACTIVITIES
Net income                                                  $   2,584    $   2,804
Adjustments to reconcile net income to net
  cash provided by operating activities:
    Provisions for losses on loans and real estate owned          270          298
    Depreciation and amortization                                 625          371
    Equity in loss of limited partnership                         179          114
    Mortgage servicing rights amortization                        136           81
    Goodwill amortization                                         124          137
    Losses on sales of real estate owned                            3           13
    Increase in cash surrender value of life insurance           (717)        (785)
    Mortgage loans originated for sale                        (47,101)      (6,349)
    Proceeds from sales of mortage loans                       44,480        6,004
    Gains on sales of loans and servicing rights                 (407)         (62)
    Decrease in other assets                                    1,098          533
    Increase (decrease) in drafts payable                         188         (494)
    Increase (decrease) in other liabilities                    2,258        1,945
                                                            ---------    ---------
       Net cash provided by operating activities                3,720        4,610

INVESTING ACTIVITIES
  Net change in interest-bearing time deposits                   --          1,499
  Purchase of investment securities held to maturity           (1,000)        --
  Proceeds from calls of securities held to maturity           55,605         --
  Purchase of mortgage-backed securities held to maturity     (41,261)        --
  Principal collected on mortgage-backed securities             2,362        2,941
  Decrease (increase) in net change in loans                   33,228      (59,241)
  Proceeds from sale of real estate owned                         279          156
  Net purchases of premises and equipment                        (225)        (680)
  Purchase of Federal Home Loan Bank stock                        (79)      (1,711)
  Other investing activities                                     (112)        (164)
                                                            ---------    ---------
       Net cash provided (used) by investing activities        48,797      (57,200)

FINANCING ACTIVITIES
  Net change in demand and passbook deposits                    1,619         (154)
  Net change in certificates of deposit                        22,298       15,347
  Advances from Federal Home Loan Bank                         17,500      219,400
  Repayment of Federal Home Loan Bank advances                (89,846)    (190,194)
  Proceeds from notes payable                                    --          2,861
  Repayment of notes payable                                   (1,090)        (440)
  Proceeds from exercise of stock options                        --              8
  Cash dividends paid                                          (1,416)      (1,416)
                                                            ---------    ---------
       Net cash provided (used) by financing activities       (50,935)      45,412
                                                            ---------    ---------
Decrease in cash and cash equivalents                           1,582       (7,178)

Cash and cash equivalents at beginning of period               19,031       19,933
                                                            ---------    ---------
Cash and cash equivalents at end of period                  $  20,613    $  12,755
                                                            =========    =========
Supplemental information:
  Interest paid                                             $  10,772    $  15,778
  Income taxes paid                                               520          841
</TABLE>

See accompanying notes.
                                                                               5
<PAGE>

AMERIANA BANCORP AND SUBSIDIARIES


NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
----------------------------------------------------

NOTE A - - BASIS OF PRESENTATION

The unaudited  interim  consolidated  condensed  financial  statements have been
prepared in accordance  with the  instructions  to the Quarterly  Report on Form
10-Q  ("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
September 30, 2001 and December 31, 2000,  and the results of operations for the
three  month and nine month  periods  ended  September  30,  2001 and 2000,  and
changes in cash flows for the nine months ended  September  30, 2001 and 2000. 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, 2000.

The Company had two bank  subsidiaries,  ABT and  Ameriana  Bank of Ohio ("ABO")
which  were  merged  in  October  2000.  ABT is the  surviving  entity  and  all
information  has been combined for prior years.  The Company's  application  for
conversion  of ABT to an Indiana  chartered  savings  bank was  approved  by the
Indiana Department of Financial  Institutions  during the first quarter of 2001.
The Company was approved as a bank holding company during second quarter of 2001
and the conversion of ABT to a state-chartered savings bank was effective at the
close of business on June 29, 2001.


NOTE B - - SHAREHOLDERS' EQUITY

On August 27, 2001, 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 September 14, 2001,  and was paid on October 5, 2001.
Total  year-to-date  dividends  declared  are  $1,415,977.  Payment  was made on
3,146,616  shares  outstanding;  the same as at December 31, 2000,  March 31 and
June 30, 2001, as no stock options have been exercised during 2001.

The Company's net income decreased $112,000,  or 12.98%, to $751,000 ($.24 basic
and  diluted  earnings  per share) for the quarter  ended  September  30,  2001,
compared to $863,000  ($.27 basic and diluted  earnings  per share) for the same
period in 2000. The  year-to-date net income  decreased  $220,000,  or 7.85%, to
$2,584,000 ($.82 basic and diluted earnings per share) for the nine months ended
September 30, 2001,  compared to $2,804,000 ($.89 basic and diluted earnings per
share) for the first three quarters of 2000.

                                                                               6

<PAGE>
Earnings per share were computed as follows:
<TABLE>
<CAPTION>

                                              Three Months Ended September 30,
                                              --------------------------------
                                             2001                         2000
---------------------------------------------------------------------------------------------------------
                                             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            $750,648  3,146,616   $.24     $863,358  3,146,616    $ .27
Effect of dilutive stock options         --      3,066     --           --         55       --
---------------------------------------------------------------------------------------------------------
Diluted Earnings Per Share:
  Income available to
    common shareholders and
    assumed conversions            $750,648  3,149,682   $.24     $863,358  3,146,671    $ .27
---------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------

                                                Nine Months Ended September 30,
                                                -------------------------------
                                              2001                          2000
---------------------------------------------------------------------------------------------------------
                                             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          $2,583,969  3,146,616   $.82   $2,804,179  3,146,396    $ .89
Effect of dilutive stock options         --      1,150     --           --        108       --
---------------------------------------------------------------------------------------------------------
Diluted Earnings Per Share:
  Income available to
    common shareholders and
    assumed conversions          $2,583,969  3,147,766   $.82   $2,804,179  3,146,504    $ .89
---------------------------------------------------------------------------------------------------------
</TABLE>

                                                                               7
<PAGE>

AMERIANA BANCORP AND SUBSIDIARIES


ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                  AND RESULTS OF OPERATIONS


General
-------

This  Form  10-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 and relative amounts of
interest-earning assets and interest-bearing liabilities.

Effective June 29, 2001,  the Company's  principal  subsidiary,  Ameriana Bank &
Trust of Indiana,  converted from a federal  savings bank to an Indiana  savings
bank and is now known as Ameriana Bank and Trust, SB ("ABT").  Since the lending
and  investment  authorities  of Indiana  savings  banks are similar to those of
federal savings banks,  the conversion is not expected to have a material effect
on the range of activities in which ABT may engage. The conversion,  however, is
expected  to  result in lower  operating  expenses  since  the State of  Indiana
assesses institutions for examinations at a lower rate than the Office of Thrift
Supervision,  which examined ABT as a federal savings bank. As the result of the
conversion,  the Company became a bank holding company subject to regulation and
supervision by the Federal Reserve Board. As a bank holding company, the Company
will become subject to capital  requirements  at the holding  company level.  In
addition,  the Company will only be permitted to engage in those activities that
the Federal  Reserve  Board has  previously  determined  are closely  related to
banking.  The Company,  however,  does not believe that these  requirements will
have a material effect on its operations.

                                                                               8
<PAGE>

RESULTS OF OPERATIONS
---------------------

During the first nine months of 2001, the new loan volume  decreased  $5,517,000
compared to the first nine months of 2000, and the major portion,  mortgage loan
volume, consisted of fixed rate loans that are sold to the secondary market. The
sold loans increased $38,476,000 and the total outstanding loans excluding loans
held for sale,  decreased  $33,513,000,  or  8.40%,  during  the nine  months to
$365,262,000 at September 30, 2001, from  $398,775,000 at December 31, 2000. The
commercial   real  estate  loans  and  other   commercial   loans  increased  by
$17,577,000,  or 29.68%,  to $76,789,000 at September 30, 2001, from $59,212,000
at September 30, 2000. This increase is due to originations  and to purchases of
commercial  loans.  The mortgage  loans held for sale increased to $3,029,000 at
September 30, 2001,  from  $203,000 at December 31, 2000.  This is the amount of
loans sold and not  delivered at quarter end and reflects the increase in demand
for fixed rate versus variable rate mortgage loans. See comments on other income
for detail of gains on loans sold.

Investment securities decreased  $54,623,000,  or 62.14%, during the nine months
to  $33,278,000  at September 30, 2001,  from  $87,901,000 at December 31, 2001.
This reduction is due to $55,605,000 of securities  being called and the balance
from  amortization  of premium and  accretion of discount.  The rate  reductions
during the first nine  months of 2001 have  resulted in these calls and make the
investment  portfolio subject to further calls. The  mortgage-backed  securities
increased  $38,808,000,  or 328%, to  $50,614,000  at September  30, 2001,  from
$11,806,000  at  December  31,  2001.  This  increase  is  due to  purchases  of
mortgage-backed  securities  in an effort to maintain  the  outstanding  earning
assets, but over $31 million settled on the last business day of September 2001,
and will not provide earnings until the fourth quarter.

The net interest spread, difference between yield on interest-earning assets and
cost on  interest-bearing  liabilities,  has  increased  .07%  during  the third
quarter  of 2001  compared  to the same  period in 2000 and has  decreased  .04%
during the first nine months of 2001 compared to 2000. Interest rates in general
have  decreased  during  2001.  Using the  Prime  rate as an  indicator,  it has
decreased  eight  times  during  the first  nine  months of 2001,  from 9.50% at
December 31,2000,  to 6.00% at September 30, 2001,  compared to increasing three
times in the first nine months of 2000,  starting at 8.50% at December  31, 1999
and  increasing to 9.50% at September 30, 2000.  Prime averaged 6.61% during the
third  quarter of 2001  compared to 9.50%  during the third  quarter of 2000 and
7.34% during the first nine months of 2001  compared to 9.15% for the first nine
months of 2000.  The net  interest  spread rate  increase is due to the interest
yield decrease of .39% on interest-earning  average assets for the third quarter
being more than  offset by the .46% rate  decrease  in cost on  interest-bearing
average  liabilities  for the third  quarter.  Average  interest  bearing assets
decreased  during the third quarter due to fixed rate mortgage  loans being sold
to the secondary market and to investments  being called.  The balance sheet was
leveraged  further  in third  quarter  2000 than 2001 and  provided a larger net
income  with a lower net  interest  spread.  The larger  decrease of the cost of
liabilities  has resulted from decreased  average rates on the Federal Home Loan
Bank  ("FHLB")  borrowings,  lower  leveraging  in 2001 verses  2000,  and lower
deposit  costs during 2001.  The  leverage  opportunities  have not been present
until late in the third  quarter  2001 and have  provided  a lower net  interest
income for the  quarter.  The yield on average  earning  assets  increased  .03%
during the first nine months of 2001 while the yield on average interest bearing
liabilities  increased .07% leaving the net interest spread lower by .04% during
the first nine months of 2001 compared to the same period in 2000.

The following table summarizes the Company's average net interest-earning assets
which is the  difference  between  average  interest-earning  assets and average
interest-bearing  liabilities with the accompanying  average rates for the third
quarter and first nine months of 2001 and 2000:

                                                                               9
<PAGE>
<TABLE>
<CAPTION>
                                      Three Months Ended    Nine Months Ended
                                        September 30,         September 30,
                                        -------------         -------------
                                      2001        2000      2001         2000
                                      ----        ----      ----         ----
                                               (Dollars in Thousands)
<S>                                  <C>       <C>         <C>       <C>
  Interest-earning assets            $463,209  $493,805    $479,580  $475,423
  Interest-bearing liabilities        439,895   461,803     456,578   445,077
                                      -------   -------     -------   -------

     Net interest-earning assets     $ 23,314  $ 32,002    $ 23,002  $ 30,346
                                      -------   -------     -------   -------

  Average yield on:
     Interest-earning assets             7.33%     7.72%       7.68%     7.65%
     Interest-bearing liabilities        5.20      5.66        5.45      5.38
                                         ----      ----        ----      ----

        Net interest spread              2.13%     2.06%       2.23%     2.27%
                                         ----      ----        ----      ----
</TABLE>

Net interest  income for the third quarter 2001 was  $2,797,000 and was $216,000
and 7.17% less than  $3,013,000  during the third quarter of 2000. This decrease
is due to interest income decreasing more than interest expense  decreased.  The
$1,014,000 decrease in interest income on average  interest-earning  assets is a
combination of a decrease of $529,000  because of the decrease in the volume mix
of  average  outstanding   interest-bearing  assets  plus  $485,000  because  of
decreased rates on average  interest-earning assets. The decrease of $798,000 in
cost of interest-bearing  liabilities is a combination of a decrease of $428,000
from  lower  average  balances  and  $370,000  from  decreased  rates on average
interest-bearing  liabilities.  The net  interest  margin  ratio,  which  is net
interest income divided by average  earning  assets,  decreased to 2.40% for the
third quarter 2001 compared to 2.43% for the third quarter of 2000.

Net  interest  income for the first nine months of 2001 was  $8,931,000  and was
$361,000  and 3.89% less than  $9,292,000  during the first nine months of 2000.
This decrease is due to higher  interest income being more than offset by higher
interest   expense.   The  $328,000  increase  in  interest  income  on  average
interest-earning  assets is a combination of an increase of $327,000  because of
the increase in the volume mix of average  outstanding  interest-bearing  assets
plus $1,000 because of increased rates on average  interest-earning  assets. The
increase of $689,000 in cost of interest-bearing liabilities is a combination of
an increase of $297,000  from higher  average  balances and $392,000 from higher
rates on average  interest-bearing  liabilities.  The net interest margin ratio,
which is net interest  income divided by average  earning  assets,  decreased to
2.49% for the first  nine  months of 2001  compared  to 2.61% for the first nine
months of 2000.

The following table sets forth the details of the rate and volume change for the
third  quarter and first nine months of 2001  compared to the third  quarter and
first nine months of 2000, respectively:
<TABLE>
<CAPTION>
                                              Three Months Ended September 30,   Nine Months Ended September 30,
                                                          2001 vs. 2000                   2001 vs. 2000
                                                          -------------                   -------------
                                                       Increase (Decrease)             Increase (Decrease)
                                                         Due to Change in               Due to Change in
                                                         ----------------               ----------------
                                                                     (Dollars in Thousands)
                                                                      ---------------------
                                                  Volume     Rate    Net Change    Volume     Rate    Net Change
                                                  ------     ----    ----------    ------     ----    ----------
<S>                                                <C>      <C>      <C>            <C>      <C>       <C>
Interest Income:
   Loans and mortgage-backed securities            $(201)   $(345)   $  (546)       $ 969    $ (49)    $  920
   Other interest-earning assets                    (328)    (140)      (468)        (642)      50       (592)
                                                    ----     ----       ----         ----      ---      -----
   Total interest-earning assets                    (529)    (485)    (1,014)         327        1        328
                                                    ----    -----     ------         ----      ---
Interest Expense:
   Deposits                                          265     (120)       145          908      529      1,437
   FHLB advance and other loans                     (693)    (250)      (943)        (611)    (137)      (748)
                                                    ----     ----       ----         ----     ----      ------
   Total interest-bearing liabilities               (428)    (370)      (798)         297      392        689
                                                    ----     ----       ----         ----     ----      -----
   Change in net interest income                   $(101)   $(115)   $  (216)       $  30    $(391)    $ (361)
                                                     ----    ----     ------         ----     ----      -----
</TABLE>

The  provision  for loan  losses was  $90,000  during the third  quarter of 2001
compared to  $119,000  during the same period in 2000.  The  provision  for loan
losses for the nine months ended  September 30, 2001,  was $270,000  compared to
$298,000  for the first nine months of 2000.  Net  charge-offs  were $33,000 and
$432,000 for 2001 and 2000 first nine months,  respectively.  A large portion of
the net charge-offs during 2000 included a loan

                                                                              10
<PAGE>

for $172,000 charged-off during the first quarter and it had been identified and
provided for during the last quarter of 1999.  Another large portion of the 2000
charge-offs  included a loan charged-off during the second quarter for $205,000,
which may be at least  partially  recovered,  but the recovery may take years to
complete. The following table summarizes the Company's non-performing assets at:
<TABLE>
<CAPTION>
                                          September 30,  December 31,  September 30,
                                             2001           2000           2000
                                             ----           ----           -----
                                                  (Dollars in Thousands)
                                                  ----------------------
<S>                                        <C>            <C>            <C>
     Loans:
       Non-accrual                         $1,227         $  801         $  597
       Over 90 days delinquent              1,941            747             37
     Trouble debt restructured                  0            609            198
     Real estate owned (at market value)      144            125             27
                                            -----          -----           ----
               Total                       $3,312         $2,282          $ 859
                                            -----          -----            ---
</TABLE>
Management  believes  the  allowance  for  loan  losses  is  adequate  and  that
sufficient  provision has been provided to absorb any losses, which are inherent
in the  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 .47%, .37%
and .36% at  September  30,  2001,  December  31, 2000 and  September  30, 2000,
respectively.

Total other income for the third quarter of 2001  increased  $142,000 and 16.57%
to $999,000 from $857,000 in the same period during 2000. Total other income for
the  nine  months  ended  September  30,  2001,  was up  $179,000  and  6.37% to
$2,991,000  from  $2,812,000  during  the first  nine  months of 2000.  As noted
earlier,  sales of loans to the secondary  market  increased in 2001 compared to
2000 and gains on sales of loans and  servicing  rights during the third quarter
of 2001  increased  $152,000 to $180,000 from $28,000  during the same period in
2000. Gains on sales of loans and servicing rights increased $346,000 during the
nine months ended  September 30, 2001, to $408,000 from $62,000  during the same
period in 2000.  Brokerage and insurance  commissions  increased $1,000 and .39%
for the three months and decreased  $80,000 and 9.48% for the nine months due to
ceasing  operations of a title insurance  company.  Net loan servicing fees were
down  $15,000,  or 22.73%,  for the three months and $59,000,  or 26.46% for the
nine months.  Total sold loans  serviced is increasing  during 2001 but it still
averages  less than the amount  serviced  during the first nine  months of 2000.
Cash surrender value of life insurance increased $33,000, or 17.65%,  during the
last three months of 2001  compared to 2000 and decreased  $68,000,  or 8.66% to
$717,000 in 2001 versus $785,000 in 2000. The first quarter  adjustments to cash
surrender  value of life insurance  policies  during both 2001 and 2000 included
adjustments to increase the prior years estimated  insurance  income.  The first
quarter 2000 increase was significantly  higher due to a one-time  adjustment to
certain cash  surrender  values on life  insurance  policies  carried on retired
executives.

Total other expense increased $36,000,  or 1.36%, to $2,690,000 during the third
quarter of 2001 from  $2,654,000  during the same  period in 2000 and  increased
only $14,000,  or .17%, to $8,106,000  during the first nine months of 2001 from
$8,092,000 during the first nine months of 2000. Expenses continue to be an area
of concentration  for the Corporation.  The merger of the Indiana and Ohio banks
in October 2000  contributed to keeping  expenses as low as possible in the year
2001 with only a small increase from 2000.

FINANCIAL CONDITION
-------------------

The parent company's source of funds is dependent upon receipt of dividends from
the bank  subsidiary,  ABT. ABT'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 September 30, 2001,  the Company's cash
and  interest-bearing  demand deposits totaled  $20,613,000,  or 4.03%, of total
assets.  This compares with  $19,031,000,  or 3.41%, of total assets at December
31,  2000.  ABT had a liquidity  ratio of 14.99% at September  30,  2001,  which
management fees is adequate to meet future cash requirements.
                                                                              11
<PAGE>

The  regulatory  minimum  net  worth  requirement  of 8% for ABT  under the most
stringent  of  the  three  capital  regulations  (total  risk-based  capital  to
risk-weighted  assets) at September 30, 2001, was $23,707,000.  At September 30,
2001, ABT had total risk-based capital of $41,722,000 and a 14.08% ratio.

At September 30, 2001, the Company's  commitments  for loans in process and loan
commitments totaled $33,562,000. Management believes the Company's liquidity and
other sources of funds will be sufficient  to fund all  outstanding  commitments
and other cash needs.


ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT INTEREST RATE RISK

The  Asset/Liability  Committee  and the Board of  Directors  review  the bank's
exposure to interest  rate  changes and market risk on a quarterly  basis.  This
review is accomplished by the use of a cash flow simulation model using detailed
securities,  loan and deposit,  and market information to estimate the potential
impact of interest  rate  increases  and  decreases  on the  earning  assets and
liabilities. The model tests the impact on the net interest income under various
interest rate scenarios by estimating the interest rate sensitivity  position at
each interest rate  interval.  The change in the net portfolio  value ("NPV") is
also  calculated at each interest  rate  interval.  This tests the interest rate
risk exposure from  movements in interest  rates by using  interest  sensitivity
analysis to determine the change in the NPV of discounted cash flows from assets
and liabilities.

NPV  represents  the  market  value  of  portfolio  equity  and is  equal to the
estimated   market  value  of  assets  minus  the  estimated   market  value  of
liabilities.  The model uses a number of  assumptions,  including  the  relative
levels of market  interest  rates and  prepayments in mortgage loans and certain
types of callable investments. These computations do not contemplate any actions
management may undertake to reposition the assets and liabilities in response to
changes in the interest  rate,  and should not be relied upon as  indicative  of
actual results. In addition,  certain  shortcomings are inherent in the model of
computing NPV.  Should  interest rates remain or decrease below present  levels,
the portion of  adjustable  rate loans could  decrease in future  periods due to
loan  refinancing or payoff  activity.  In the event of an interest rate change,
pre-payment levels would likely be different from those assumed in the model and
the ability of  borrowers  to repay  their  adjustable  rate loans may  decrease
during rising interest rate environments.

The ABT  information  below  provides and  assessment  of the risk of NPV in the
event of sudden and sustained 2% increases and decreases in prevailing  interest
rates as of September 30, 2001 (Dollars in Thousands).
<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>
   +2%         $20,661      $-18,956       -47.85%        4.29%         -3.47 bp*
Base or 0%      39,617                                    7.76
   -2%          41,604         1,987        +5.02         7.96           +.20 bp

* basis points
</TABLE>

                                                                              12
<PAGE>


NEW ACCOUNTING PRONOUNCEMENTS
-----------------------------

In July 2001,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial Accounting Standards ("SFAS") No. 141 and 142. SFAS No. 141, "Business
Combinations"  requires the use of the  purchase  method of  accounting  for all
business combinations initiated after June 30, 2001, thereby eliminating the use
of the pooling of interests method. It also provides new criteria that determine
whether an acquisition involving acquired intangible assets should be recognized
separately from goodwill.  This Statement does not presently  affect the Company
but would be followed in any future acquisitions.

SFAS No. 142,  "Goodwill  and Other  Intangible  Assets" will be  effective  for
fiscal years beginning after December 15, 2001, and requires that upon adoption,
any goodwill recorded on an entity's balance sheet would no longer be amortized.
This would include  existing  goodwill  recorded at the date of adoption and any
future  goodwill.  Goodwill  will  not be  amortized  but will be  reviewed  for
impairment at least once a year and adjusted by reduction of the carrying  value
of goodwill if the asset is  impaired.  At September  30, 2001,  the Company had
$1,316,000 of goodwill on its balance  sheet that was being  amortized at a rate
of $125,000 annually.

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).

                                                                              13
<PAGE>

PART II - OTHER INFORMATION


ITEM 1  -  Legal Proceedings
           -----------------

           No changes have taken place in regard to the legal proceedings
           disclosed in the registrant's report on Form 10-K for the year ended
           December 31, 2000.


ITEM 2  -  Changes in Securities
           ---------------------

           Not Applicable


ITEM 3  -  Defaults in Senior Securities
           -----------------------------

           Not Applicable


ITEM 4  - Submission of Matters to a Vote of Security Holders
          ---------------------------------------------------

           Not Applicable


ITEM 5  -  Other Information
           -----------------

           Not Applicable


ITEM 6  -  Exhibits and Reports on Form 8-K
           --------------------------------

           Not Applicable

                                                                              14
<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: November 12, 2001         /s/ Harry J. Bailey
      -----------------         ------------------------------------
                                Harry J. Bailey
                                President and
                                Chief Executive Officer
                                (Duly Authorized Representative)



DATE: November 12, 2001         /s/ Richard E. Welling
      -----------------         ------------------------------------
                                Richard E. Welling
                                Senior Vice President-Treasurer
                                (Principal Financial Officer
                                and Accounting Officer)


                                                                              15