Ameriana Bancorp Reaches Settlement with Aetna Casualty and Surety Company

Strategic Insights -

Ameriana Bancorp, a leading financial institution, has announced a significant settlement with Aetna Casualty and Surety Company. The settlement, valued at $3.1 million, relates to a June 1993 judgment in the Superior Court of Orange County, California, in favor of Ameriana. The Company expects the settlement to positively impact its fourth-quarter net earnings, resulting in approximately $1.4 million or $.52 per common share outstanding. This favorable outcome marks a significant milestone for Ameriana, which had been engaged in litigation with Aetna since 1991 to recover insurance proceeds related to the closure of its Indiana Western subsidiary in 1988.

Key Takeaways:

  • Ameriana Bancorp has reached a settlement with Aetna Casualty and Surety Company, valued at $3.1 million, related to a June 1993 judgment in the Superior Court of Orange County, California.
  • The settlement is expected to positively impact Ameriana's fourth-quarter net earnings by approximately $1.4 million or $.52 per common share outstanding.
  • Ameriana initiated litigation against Aetna in 1991 for the recovery of insurance proceeds related to the closing of its Indiana Western subsidiary in 1988.
  • The Company offers an extensive line of banking services through branches in central Indiana and the greater Cincinnati, Ohio area.
  • Ameriana Bancorp operates through its wholly owned subsidiaries, including Ameriana Bank and Deer Park Federal Savings and Loan Association.
  • The Company also provides title insurance through Indiana Title Insurance Company and offers a range of financial services, including life insurance, investments, and securities products.

Statistics:

  • Settlement value: $3.1 million
  • Expected impact on fourth-quarter net earnings: $1.4 million or $.52 per common share outstanding
  • Duration of litigation: approximately 30 months (1991-1993)
  • Revenue from banking services through Ameriana Bank: not specified
  • Number of branches in central Indiana: not specified
  • Number of branches in the greater Cincinnati, Ohio area: not specified

Sources:

  • "Ameriana Bancorp Reaches Settlement with Aetna Casualty and Surety Company," Business Wire, November 1, 1994
  • Ameriana Bancorp press release, November 1, 1994