JOHNSTOWN, Pa., Oct. 19, 2017 /PRNewswire/ -- AmeriServ Financial
Bank, the banking subsidiary of AmeriServ Financial, Inc. (NASDAQ:
ASRV), and United Steelworkers (USW) Local 2635-06 have agreed to a
new four-year contract. Unionized employees voted to accept
the contract at a meeting held on Sunday,
October 15, 2017 in Johnstown. The new contract covers the
workforce through October 15,
2021.
The ratified contract is positive news for AmeriServ and the
community, according to AmeriServ President and CEO Jeffrey Stopko. "This new agreement allows
us to continue focusing on our banking for life strategy. As
an organization, we are committed to servicing our customers and
communities. Together, our union and non-union employees are
working to provide our shareholders, customers as well as the
communities we serve with a positive banking for life experience
today, tomorrow and into the future."
USW Local 2635-06 Unit President Bob
Gilles agrees on the importance of the new contract to
AmeriServ. "The approved agreement indicates to me that our
membership believes in AmeriServ's continued commitment to being a
leading community bank in our region while providing employees with
good career opportunities."
Key financial terms of the new contract include annual wage
increases of 3% and the movement of union employees to a new
exclusive provider organization health care plan that will promote
better control of future health care costs.
Additionally, the Company announced that its Board of Directors
declared a $0.015 per share quarterly
common stock cash dividend. The cash dividend is payable
November 20, 2017 to shareholders of
record on November 6, 2017.
This cash dividend represents an approximate 1.5% annualized yield
using the October 18, 2017 closing
common stock price of $4.05 and
represents an approximate payout ratio of 19% based upon the
Company's recently reported third quarter 2017 earnings per share
of $0.08.
AmeriServ Financial, Inc. is the parent of AmeriServ Financial
Bank and AmeriServ Trust and Financial Services Company in
Johnstown. The Company's subsidiaries provide full-service
banking and trust and wealth management services through sixteen
community offices in southwestern Pennsylvania and also operates loan production
offices in Altoona and
Monroeville, PA and Hagerstown, Maryland. At September 30, 2017, AmeriServ had total assets of
$1.17 billion, a book value of
$5.31 per common share and a tangible
book value of $4.66 per common
share.
Forward-Looking Statements
This news release contains forward-looking statements as defined
in the Securities Exchange Act of 1934 and is subject to the safe
harbors created therein. The forward-looking statements contained
herein include, but are not limited to, information regarding
AmeriServ's dividend program and future payment obligations. These
forward-looking statements involve risks and uncertainties that
could cause AmeriServ's results to differ materially from
management's current expectations. Such risks and uncertainties are
detailed in AmeriServ's filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the year
ended December 31, 2016.
Forward-looking statements are based on the beliefs and assumptions
of AmeriServ's management and on currently available information.
The statements in this press release are made as of the date of
this press release, even if subsequently made available by
AmeriServ on its website or otherwise. AmeriServ undertakes no
responsibility to publicly update or revise any forward-looking
statement.
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SOURCE AmeriServ Financial, Inc.