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:
---------------------

     June 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 August 8, 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 June 30, 2001, December 31, 2000
              and June 30, 2000 . . . . . . . . . . . . . . . . .  3

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

              Consolidated Condensed Statements of Cash Flows
              for the Six Months Ended June 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>
                                                            June 30,    December 31,   June 30,
                                                              2001          2000         2000
                                                           ----------   -----------  ----------
<S>                                                        <C>          <C>          <C>
Assets

  Cash on hand and in other institutions                   $   7,208    $  14,609    $   8,028
  Interest-bearing demand deposits                             8,014        4,422        5,142
  Interest-bearing time deposits                                --           --            100
  Investment securities held to maturity  (fair
     value of  $65,808, $86,152
     and $81,844, respectively)                               66,738       87,901       87,817
  Mortgage-backed securities held to maturity (fair
     value of $10,057, $11,711
     and $12,557, respectively)                               10,137       11,806       12,760
  Mortgage loans held for sale                                 1,817          203          385
  Loans receivable                                           374,171      398,775      379,252
  Allowance for loan losses                                   (1,663)      (1,489)      (1,293)
                                                           ---------    ---------    ---------
      Net loans receivable                                   372,508      397,286      377,959
  Real estate owned                                              193          125          100
  Premises and equipment                                       6,886        7,097        7,345
  Stock in Federal Home Loan Bank                              7,317        7,265        5,730
  Mortgage servicing rights                                      862          847          877
  Investments in unconsolidated affiliates                       949        1,037        1,105
  Intangible assets                                            1,582        1,670        1,761
  Cash surrender value of life insurance                      17,587       17,089       16,716
  Other assets                                                 5,350        5,931        5,087
                                                           ---------    ---------    ---------
         Total assets                                      $ 507,148    $ 557,288    $ 530,912
                                                           =========    =========    =========
Liabilities and Shareholders' Equity

Liabilities:
  Deposits:
         Noninterest-bearing                               $  13,222    $  12,927    $  16,819
         Interest-bearing                                    369,446      354,668      348,859
                                                           ---------    ---------    ---------
            Total deposits                                   382,668      367,595      365,678
  Advances from Federal Home Loan Bank                        73,853      138,751      113,756
  Notes payable                                                1,730        2,421        2,770
  Drafts payable                                               3,020        3,039        4,205
  Advances by borrowers for taxes and insurance                  505          939          696
  Other liabilities                                            2,772        2,832        2,773
                                                           ---------    ---------    ---------
          Total liabilities                                  464,548      515,577      489,878

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                  38,954       38,065       37,388
                                                           ---------    ---------    ---------
          Total shareholders' equity                          42,600       41,711       41,034
                                                           ---------    ---------    ---------
          Total liabilities and shareholders' equity       $ 507,148    $ 557,288    $ 530,912
                                                           =========    =========    =========
</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       Six Months Ended
                                                                June 30,                June 30,
                                                         ---------------------    --------------------
                                                            2001        2000        2001        2000
                                                         ---------    --------    --------    --------
<S>                                                       <C>         <C>         <C>         <C>
Interest Income:
   Interest on loans                                      $  7,402    $  7,253    $ 15,375    $ 13,848
   Interest on mortgage-backed securities                      189         236         407         468
   Interest on investment securities                         1,330       1,514       2,826       3,026
   Other interest and dividend income                          192         150         388         312
                                                          --------    --------    --------    --------
      Total interest income                                  9,113       9,153      18,996      17,654

Interest Expense:
   Interest on deposits                                      4,885       4,251       9,576       8,284
   Interest on FHLB advances and other loans                 1,326       1,739       3,286       3,091
                                                          --------    --------    --------    --------
      Total interest expense                                 6,211       5,990      12,862      11,375
                                                          --------    --------    --------    --------
Net interest income                                          2,902       3,163       6,134       6,279

Provision for Loan Losses                                       90         109         180         179
                                                          --------    --------    --------    --------
Net interest income after provision for loan losses          2,812       3,054       5,954       6,100

Other Income:
   Net loan servicing fees                                      49          76         113         157
   Other fees and service charges                              333         302         632         575
   Brokerage and insurance commissions                         249         269         508         589
   Net loss on investments in unconsolidated affiliates        (53)        (32)        (89)        (74)
   Gains on sales of loans and servicing rights                153          17         228          34
   Increase in cash surrender value of life insurance          203         187         497         598
   Other                                                        54          38         103          76
                                                          --------    --------    --------    --------
      Total other income                                       988         857       1,992       1,955

Other Expense:
   Salaries and employee benefits                            1,639       1,640       3,238       3,336
   Net occupancy expense                                       364         384         745         730
   Federal insurance premium                                    17          18          35          38
   Data processing expense                                      68          78         137         143
   Printing and office supplies                                 76          86         164         162
   Amortization of intangible assets                            44          46          88          91
   Other                                                       530         496       1,009         938
                                                          --------    --------    --------    --------
      Total other expense                                    2,738       2,748       5,416       5,438
                                                          --------    --------    --------    --------
Income before income taxes                                   1,062       1,163       2,530       2,617

Income taxes                                                   282         287         697         676
                                                          --------    --------    --------    --------
Net Income                                                $    780    $    876    $  1,833    $  1,941
                                                          ========    ========    ========    ========

Basic Earnings Per Share                                  $   0.25    $   0.28    $   0.58    $   0.62
                                                          ========    ========    ========    ========
Diluted Earnings Per Share                                $   0.25    $   0.28    $   0.58    $   0.62
                                                          ========    ========    ========    ========
Dividends Declared Per Share                              $   0.15    $   0.15    $   0.30    $   0.30
                                                          ========    ========    ========    ========
</TABLE>

See accompanying notes.

                                                                               4
<PAGE>
                        AMERIANA BANCORP AND SUBSIDIARIES
           CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - Unaudited
                                 (In thousands)
<TABLE>
<CAPTION>

                                                           Six Months Ended June 30,
                                                           -------------------------
                                                              2001          2000
                                                           -------------------------
<S>                                                         <C>           <C>
OPERATING ACTIVITIES
Net income                                                  $  1,833      $ 1,941
Adjustments to reconcile net income to net
  cash provided by operating activities:
    Provisions for losses on loans and real estate owned         180          179
    Depreciation and amortization                                467          233
    Equity in loss of limited partnership                         89           74
    Mortgage servicing rights amortization                        87           48
    Goodwill amortization                                         88           91
    Losses on sales of real estate owned                           1           27
    Increase in cash surrender value of life insurance          (497)        (598)
    Mortgage loans originated for sale                       (27,679)      (3,584)
    Proceeds from sales of mortage loans                      26,189        3,426
    Gains on sales of loans and servicing rights                (228)         (34)
    Decrease in other assets                                     580          130
    Increase (decrease) in drafts payable                        (19)         303
    Decrease in other liabilities                               (494)        (591)
                                                           ---------    ---------
       Net cash provided by operating activities                 597        1,645

INVESTING ACTIVITIES
  Net change in interest-bearing time deposits                  --          1,399
  Proceeds from calls of securities held to maturity          21,155         --
  Principal collected on mortgage-backed securities            1,562        2,183
  Decrease (increase) in net change in loans                  24,338      (53,083)
  Proceeds from sale of real estate owned                        147           84
  Net purchases of premises and equipment                        (93)        (516)
  Purchase of Federal Home Loan Bank stock                       (52)      (1,389)
  Other investing activities                                      (4)           5
                                                           ---------    ---------
       Net cash provided (used) by investing activities       47,053      (51,317)

FINANCING ACTIVITIES
  Net change in demand and passbook deposits                  (3,864)       2,611
  Net change in certificates of deposit                       18,937        7,309
  Advances from Federal Home Loan Bank                        17,500      175,200
  Repayment of Federal Home Loan Bank advances               (82,398)    (143,955)
  Proceeds from notes payable                                   --          2,770
  Repayment of notes payable                                    (690)         (90)
  Proceeds from exercise of stock options                       --              8
  Cash dividends paid                                           (944)        (944)
                                                           ---------    ---------
       Net cash provided (used) by financing activities      (51,459)      42,909
                                                           ---------    ---------
Decrease in cash and cash equivalents                         (3,809)      (6,763)

Cash and cash equivalents at beginning of period              19,031       19,933
                                                           ---------    ---------
Cash and cash equivalents at end of period                 $  15,222    $  13,170
                                                           =========    =========
Supplemental information:
  Interest paid                                            $  12,884    $  11,374
  Income taxes paid                                              100          625
</TABLE>
                                                                               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
June 30, 2001 and December 31, 2000, and the results of operations for the three
month and six month  periods  ended June 30,  2001 and 2000 and  changes in cash
flows  for the six  months  ended  June 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 May 24, 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 June 15,  2001,  and was paid on July 6, 2001.  Total
year-to-date  dividends  declared  are  $943,985.  Payment was made on 3,146,616
shares  outstanding,  the same as at December 31, 2000 and March 31, 2001, as no
stock options have been exercised during 2001.

The Company's net income decreased  $96,000,  or 10.96%, to $778,000 ($.25 basic
and diluted earnings per share) for the quarter ended June 30, 2001, compared to
$876,000  ($.28  basic and  diluted  earnings  per share) for the same period in
2000. The year-to-date net income  decreased  $108,000,  or 5.56%, to $1,833,000
($.58 basic and diluted  earnings  per share) for the six months  ended June 30,
2001, compared to $1,941,000 ($.62 basic and diluted earnings per share) for the
first two quarters of 2000.

                                                                               6

<PAGE>

Earnings per share were computed as follows:
<TABLE>
<CAPTION>
                                                 Three Months Ended June 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            $779,504  3,146,616   $.25     $875,722  3,146,616    $ .28
Effect of dilutive stock options          -        264                   -         78
--------------------------------------------------------------------------------------------------
Diluted Earnings Per Share:
  Income available to
    common shareholders and
    assumed conversions            $779,504  3,146,880   $.25     $875,722  3,146,694    $ .28
--------------------------------------------------------------------------------------------------

<CAPTION>

--------------------------------------------------------------------------------------------------
                                                  Six Months Ended June 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          $1,833,321  3,146,616   $.58   $1,940,821  3,146,285    $ .62
Effect of dilutive stock options          -        210                   -        136
--------------------------------------------------------------------------------------------------
Diluted Earnings Per Share:
  Income available to
    common shareholders and
    assumed conversions          $1,833,321  3,146,826   $.58   $1,940,821  3,146,421    $ .62
--------------------------------------------------------------------------------------------------

</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 six  months of 2001,  the loan  volume  decreased  $27,557,000
compared to the first six 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  $22,763,000  and the total  outstanding  loans  decreased
$24,604,000,  or 6.17%,  during the six months to $374,171,000 at June 30, 2001,
from  $398,775,000  at December 31, 2000. The  commercial  real estate loans and
other  commercial loans increased by $16,661,000,  or 29.75%,  to $72,672,000 at
June 30,  2001,  from  $56,011,000  at June 30,  2000.  This  increase is due to
originations  and to purchases of commercial  loans. The mortgage loans held for
sale  increased to  $1,817,000  at June 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 verses  variable  rate  mortgage
loans. See comments on other income for detail of gains on loans sold.

Investment securities decreased $21,163,000, or 24.08%, during the six months to
$66,738,000  at June 30, 2001,  from  $87,901,000  at December  31,  2001.  This
reduction is due to $21,155,000 of securities  being called and the balance from
amortization of premium and accretion of discount.  The rate  reductions  during
the  first  six  months  of 2001 has  resulted  in these  calls  and  makes  the
investment  portfolio  subject to  further  calls in 2001.  The  mortgage-backed
securities reduction of $1,669,000,  or 14.14%, to $10,137,000 at June 30, 2001,
from  $11,806,000  at December  31, 2001 is due to normal  runoff  increased  by
payoffs due to the lower mortgage rates and no purchases in 2001.

The net interest spread, difference between yield on interest-earning assets and
cost on  interest-bearing  liabilities,  has  decreased  .16%  during the second
quarter  of 2001  compared  to the same  period in 2000 and has  decreased  .11%
during the first six months of 2001 compared to 2000.  Interest rates in general
have  decreased  during 2001,  and using the Prime rate as an indicator,  it has
decreased six times during the first six months of 2001,  from 9.50% at December
31,2000,  to 6.75% at June 30, 2001,  compared to increasing  three times in the
first six months of 2000,  starting at 8.50% at December 31, 1999 and increasing
to 9.50% at June 30, 2000.  Prime  averaged  7.34% during the second  quarter of
2001  compared to 9.25%  during the second  quarter of 2000 and 7.98% during the
first six months of 2001 compared to 8.97% for the first six months of 2000. The
net interest  spread  decrease is due to the interest  yield decrease of .02% on
interest-earning average assets for the second quarter being more than offset by
the .14% rate increase in cost on  interest-bearing  average liabilities for the
second quarter.  Average loans  outstanding  decreased during the second quarter
due  mostly to sales to the  secondary  market  of fixed  rate  mortgages  being
originated.  The larger  increase of the cost of  liabilities  has resulted from
increased  rates on the Federal Home Loan Bank ("FHLB")  borrowings  and deposit
costs during 2001.  During 2000 the FHLB borrowings and certificates of deposits
were extended to longer-term  borrowings to more closely match asset  maturities
in order to lower the interest rate risk and resulted in increased  costs during
2001 and especially  the second  quarter of 2001.  The yield on average  earning
assets  increased  .24% during the first half of 2001 while the yield on average
interest bearing liabilities increased .35%.

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 second
quarter and first six months of 2001 and 2000:

                                                                               9
<PAGE>
<TABLE>
<CAPTION>
                                     Three Months Ended     Six Months Ended
                                     ------------------     ----------------
                                            June 30,           June 30,
                                            --------           --------
                                        2001      2000       2001      2000
                                        ----      ----       ----      ----
                                           (Dollars in Thousands)
                                           ----------------------
<S>                                  <C>       <C>         <C>       <C>
  Interest-earning assets            $477,221  $478,867    $487,766  $466,232
  Interest-bearing liabilities        449,805   445,795     464,919   436,713
                                      -------   -------     -------   -------

     Net interest-earning assets     $ 27,416  $ 33,072    $ 22,847  $ 29,519
                                      -------   -------     -------   -------
  Average yield on:
     Interest-earning assets             7.66%     7.68        7.85%     7.61%
     Interest-bearing liabilities        5.54      5.40        5.58      5.23
                                         ----      ----        ----      ----
        Net interest spread              2.12%     2.28%       2.27%     2.38%
                                         ----      ----        ----      ----
</TABLE>

Net interest  income for the second quarter 2001 was $2,902,000 and was $261,000
and 8.25% less than $3,163,000  during the second quarter of 2000. This decrease
is due to interest  income  decreasing  and  interest  expense  increasing.  The
$40,000  decrease in  interest  income on average  interest-earning  assets is a
combination  of a decrease of $10,000  because of the decrease in the volume mix
of average outstanding interest-bearing assets plus $30,000 because of decreased
rates on average  interest-earning  assets.  The increase of $221,000 in cost of
interest-bearing  liabilities  is a  combination  of a decrease of $73,000  from
lower   average   balances   and   $294,000   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 2.43% for the
second quarter 2001 compared to 2.66% for the second quarter of 2000.

Net  interest  income  for the first six months of 2001 was  $6,134,000  and was
$145,000  and 2.31%  less than  $6,279,000  during the first six months of 2000.
This decrease is due to higher  interest income being more than offset by higher
interest  expense.  The  $1,342,000  increase  in  interest  income  on  average
interest-earning  assets is a combination of an increase of $883,000  because of
the increase in the volume mix of average  outstanding  interest-bearing  assets
plus $459,000 because of increased rates on average interest-earning assets. The
increase of $1,487,000 in cost of interest-bearing  liabilities is a combination
of an increase of $732,000 from higher average balances and $755,000 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
2.54%  for the  first six  months  of 2001  compared  to 2.71% for the first six
months of 2000.

The following table sets forth the details of the rate and volume change for the
second  quarter and first six months of 2001 compared to the second  quarter and
first six months of 2000, respectively:
<TABLE>
<CAPTION>
                                                  Three Months Ended June 30,      Six Months Ended June 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            $ 215    $ 113      $ 102       $1,179    $ 287      $1,466
   Other interest-earning assets                    (225)      83       (142)        (296)     172        (124)
                                                    -----     ---       ----         ----     ----       -----
   Total interest-earning assets                     (10)     (30)       (40)         883      459       1,342
                                                    ----     ----       ----         ----     ----       -----
Interest Expense:
   Deposits                                          384      250        634          635      657       1,292
   FHLB advance and other loans                     (457)      44       (413)          97       98         195
                                                    ----      ---       ----          ---     ----       -----
   Total interest-bearing liabilities                (73)     294        221          732      755       1,487
                                                    ----     ----       ----          ---     ----       -----
   Change in net interest income                   $  63    $(324)     $(261)      $  151    $(296)     $ (145)
                                                    ----     ----       ----        -----     ----       -----
</TABLE>

The  provision  for loan  losses was $90,000  during the second  quarter of 2001
compared to  $109,000  during the same period in 2000.  The  provision  for loan
losses for the six months ended June 30, 2001, was $180,000 compared to $179,000
for the first six months of 2000. Net  charge-offs  were $6,000 and $420,000 for
2001 and  2000  first  six  months,  respectively.  A large  portion  of the net
charge-offs  during 2000  included a loan for

                                                                              10
<PAGE>

$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>
                                          June 30,    December 31,     June 30,
                                             2001          2000           2000
                                             ----          ----           -----
                                                  (Dollars in Thousands)
                                                  ----------------------
<S>                                        <C>          <C>            <C>
     Loans:
       Non-accrual                         $1,438       $  801         $  619
       Over 90 days delinquent                411          747             38
     Trouble debt restructured                  0          609            640
     Real estate owned (at market value)      193          125            100
                                            -----        -----          -----

               Total                       $2,042       $2,282         $1,397
                                            -----        -----          -----
</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 .44%, .37%
and .34% at June 30, 2001, December 31, 2000 and June 30, 2000, respectively.

Total other income for the second quarter of 2001 increased  $131,000 and 15.29%
to $988,000 from $857,000 in the same period during 2000. Total other income for
the six months ended June 30, 2001, was up $37,000 and 1.89% to $1,992,000  from
$1,955,000 during the first six 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 second quarter of 2001 increased  $136,000
to $153,000 from $17 during the same period in 2000. Gains on sales of loans and
servicing rights  increased  $194,000 during the six months ended June 30, 2001,
to $228,000 from $34,000 during the same period in 2000. Brokerage and insurance
commissions  decreased  $20,000  and 7.43% for the three  months and $81,000 and
13.75%  for  the six  months  due to  ceasing  operations  of a title  insurance
company.  Net loan  servicing fees were down $27,000,  or 35.53%,  for the three
months and $44,000,  or 28.03% for the six months.  Total sold loans serviced is
increasing  during  2001 but it still  averages  less than the  amount  serviced
during the first six months of 2000.  Cash surrender value of life insurance had
increased  $16,000,  or 8.56%,  during the last three months of 2001 compared to
2000 and decreased  $101,000,  or 16.89% to $497,000 in 2001 versus  $598,000 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 decreased $10,000,  or .36%, to $2,738,000 during the second
quarter of 2001 from  $2,748,000  during the same  period in 2000 and  decreased
$22,000,  or .40%,  to  $5,416,000  during  the  first  six  months of 2001 from
$5,438,000 during the first six 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 part of the reduction of expenses during the year
2001.

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 June 30, 2001,  the Company's  cash and
interest-bearing demand deposits totaled $15,222,000, or 3.00%, 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 12.62% at June 30, 2001,  which  management feel 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 June 30, 2001, was $22,996,000.  At June 30, 2001, ABT
had total risk-based capital of $43,863,000 and a 15.26% ratio.

At June 30,  2001,  the  Company's  commitments  for loans in  process  and loan
commitments totaled $23,044,000. 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 banks  exposure  to interest  rate  changes and market risk is reviewed on a
quarterly  basis by the  Asset/Liability  Committee  and the Board of Directors.
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 June 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%              $31,839               $-10,518                -24.83%              6.59%               -178  bp*
Base or 0%           42,357                                                            8.37
   -2%               38,965                 -3,392                 -8.01               7.55                 -82  bp

<FN>
* basis points
</FN>
</TABLE>

Prior to changing to an Indiana state  chartered  savings bank, ABT used a model
provided  by its  regulator,  The  Office of  Thrift  Supervision  ("OTS").  The
information  provided in previous  quarterly 10-Q's and 10-K's was the OTS model
results. With the conversion being anticipated,  ABT had processed its quarterly
interest  bearing asset and liability  information on the analysis model used to
provide the above  results for June 30,  2001.
                                                                              12

<PAGE>
Provided below for comparative  purposes only, are the analysis  results for the
prior two quarters ended the March 31, 2001 and December 31, 2000 using the same
analysis model as used at quarter ended June 30, 2001.

Results for the quarter ended March 31, 2001:
<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%         $29,516               $-12,055                -29.00%              5.93%               -201  bp*
Base or 0%      41,571                                                            7.94
   -2%          39,589                 -1,982                 -4.77               7.39                 -55  bp

</TABLE>

Results for the quarter ended December 31, 2000:
<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%          $32,319               $-15,008                -31.71%              6.13%               -239  bp*
Base or 0%       47,327                                                            8.52
   -2%           46,856                   -471                  -.99               8.22                 -30  bp

</TABLE>

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
          ---------------------------------------------------

           On May 24, 2001, the Company held its 2001 annual meeting of
           shareholders. A total of 2,643,813 shares, or 84.02% of the Company's
           shares outstanding, were represented at the meeting either in person
           or by proxy.

           Two Directors were nominated by the Company's Board of Directors to
           serve new three-year terms expiring in 2003. The nominees and the
           voting results for each are listed below:
                                                 For               Withheld
                                                 ---               --------
           Donald C. Danielson          2,607,935   98.6%      35,878   1.4%
           Paul W. Prior                2,609,282   98.7%      34,531   1.3%

           The following Directors, whose three year terms of service have not
           expired, continue as Directors of the Company:
                Harry J. Bailey, Charles M. Drackett Jr., R. Scott Hayes,
                Michael E. Kent and Ronald R. Pritzke.

           The Shareholders ratified the appointment of Olive LLP (name changed
           to BKD, LLP due to merger on June 1, 2001,) as auditors for the
           Company for the fiscal year ended December 31, 2001. A total of
           2,622,175 and 99.2% of shares voted in favor of this proposal, 13,922
           and .5% of shares voted against the proposal and 7,716 and .3% of
           shares abstained from voting on the proposal.

           There were no broker non-votes on either of the above two shareholder
           votes shown above.


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: August 8, 2001            /s/ Harry J. Bailey
      --------------            -------------------
                                Harry J. Bailey
                                President and
                                Chief Executive Officer
                                (Duly Authorized Representative)



DATE: August 8, 2001            /s/ Richard E. Welling
      --------------            ----------------------
                                Richard E. Welling
                                Senior Vice President-Treasurer
                                (Principal Financial Officer
                                and Accounting Officer)



                                                                              15