JOHNSTOWN, Pa., April 20 /PRNewswire-FirstCall/ -- AmeriServ
Financial, Inc. (Nasdaq: ASRV) reported a first quarter 2010 net
loss of $918,000 or $0.06 per diluted common share. This
represents a decrease of $1.5 million
from the first quarter 2009 net income of $533,000 or $0.01
per diluted common share but an improvement from the more recently
reported fourth quarter 2009 net loss of $1.7 million or $0.09 per diluted common share.
Glenn L. Wilson, President and
Chief Executive Officer, commented on the 2010 first quarter
financial results, "AmeriServ Financial reported a loss for the
first quarter of 2010 due to an increased provision for loan
losses. We continue to carefully monitor our commercial loan
portfolio during this difficult economic environment to insure that
we provide the needed reserves in a consistent and realistic
manner. This review indicated the need for a $3.1 million contribution to our allowance for
loan losses in the first quarter of 2010; although the amount of
the quarterly provision has now declined for two consecutive
quarters. As a result of our disciplined approach, the
allowance for loan losses provided 110% coverage of non-performing
loans at March 31, 2010 and
represented 3.02% of total loans outstanding. These sound
reserve coverage measures combined with our strong capital position
and good core retail banking fundamentals provide AmeriServ with
excellent flexibility to work through this challenging period and
position us well for the eventual economic recovery."
The Company's net interest income in the first quarter of 2010
was comparable with the prior year first quarter as it declined by
only $20,000. The Company's
first quarter 2010 net interest margin of 3.78% was six basis
points better than the 2009 first quarter margin of 3.72% and three
basis points better than the more recent fourth quarter 2009 net
interest margin of 3.75%. This relative stability in net
interest income and margin performance is reflective of the
Company's strong liquidity position and its ability to reduce its
funding costs during a period of deposit growth.
Specifically, total deposits averaged $787 million in the first quarter of 2010, an
increase of $72 million or 10.1% over
the first quarter 2009. The Company believes that
uncertainties in the economy have contributed to growth in money
market accounts, certificates of deposit and demand deposits as
consumers have looked for safety in well capitalized community
banks like AmeriServ Financial. Overall, the decline in
interest expense has been comparable with the drop in interest
revenue which has been impacted by a $10
million or 1.4% decrease in total loans outstanding since
December 31, 2009.
The Company appropriately strengthened its allowance for loan
losses in the first quarter of 2010 in response to ongoing careful
monitoring of the commercial loan and commercial real estate
portfolios. A weak economic environment caused higher levels
of nonperforming loans and classified loans. When determining
the provision for loan losses, the Company considers a number of
factors some of which include periodic credit reviews,
non-performing, delinquency and charge-off trends, concentrations
of credit, loan volume trends and broader local and national
economic trends. Overall, the Company recorded a $3.1 million provision for loan losses in the
first quarter of 2010 compared to a $1.8
million provision in the first quarter of 2009, or an
increase of $1.3 million.
Actual credit losses realized through charge-offs, however,
are running well below the provision level but are higher than the
prior year. For the first quarter 2010, net charge-offs
amounted to $1.2 million or 0.69% of
total loans compared to net charge-offs of $49,000 or 0.03% of total loans for the first
quarter 2009. During the first quarter, non-performing
assets increased by $2 million to $20.3
million or 2.85% of total loans at March 31, 2010. This increase was caused by
the transfer of one commercial real estate loan that is secured by
newly constructed student housing into non-accrual status as the
project has not yet stabilized to support the required principal
payments on the loan. In summary, the allowance for loan
losses provided 110% coverage of non-performing loans and was 3.02%
of total loans at March 31, 2010,
compared to 115% of non-performing loans and 2.72% of total loans
at December 31, 2009.
The Company's non-interest income in the first quarter of 2010
decreased by $261,000 or 7.3% from
the prior year's first quarter. The largest item responsible
for the quarterly decline was a $105,000 decrease in trust fees as a result of
reductions in the market value of assets managed due to lower
values in its specialty real estate funds in 2010. Deposit
service charges also dropped by $101,000 due to fewer overdraft fees. These
negative items were partially offset by a $50,000 increase in investment advisory fees due
to improved equity values in the first quarter of 2010.
Total non-interest expense in the first quarter of 2010
increased by $602,000 or 6.6% when
compared to the first quarter of 2009. FDIC deposit insurance
expense was the largest factor contributing to the higher
non-interest expense as it increased by $299,000 in the first quarter of 2010 due to an
increased basic assessment rate. Professional fees also
increased by $182,000 due to
increased legal fees, consulting expenses and recruitment costs in
the Trust Company during the first quarter of 2010. Total
salaries and benefits expense in the first quarter of 2010
increased by $107,000 or 2.1% as a
result of higher medical insurance costs.
ASRV had total assets of $961
million and shareholders' equity of $106 million or a book value of $4.04 per common share at March 31, 2010. The Company continued to
maintain strong capital ratios that exceed the regulatory defined
well capitalized status with a risk based capital ratio of 15.52%,
an asset leverage ratio of 11.01% and a tangible common equity to
tangible assets ratio of 7.70% at March 31,
2010.
This news release may contain forward-looking statements that
involve risks and uncertainties, as defined in the Private
Securities Litigation Reform Act of 1995, including the risks
detailed in the Company's Annual Report and Form 10-K to the
Securities and Exchange Commission. Actual results may differ
materially.
NASDAQ:
ASRV
|
|
SUPPLEMENTAL
FINANCIAL PERFORMANCE DATA
|
|
April 20,
2010
|
|
(In thousands,
except per share and ratio data)
|
|
(All quarterly and
2010 data unaudited)
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
1QTR
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE DATA FOR THE
PERIOD:
|
|
|
|
|
|
|
Net income (loss)
|
$
(918)
|
|
|
|
|
|
Net income (loss) available to common
shareholders
|
(1,181)
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE PERCENTAGES
(annualized):
|
|
|
|
|
|
|
Return on average assets
|
(0.39)%
|
|
|
|
|
|
Return on average equity
|
(3.47)
|
|
|
|
|
|
Net interest margin
|
3.78
|
|
|
|
|
|
Net charge-offs as a percentage of
average loans
|
0.69
|
|
|
|
|
|
Loan loss provision as a percentage of
average loans
|
1.72
|
|
|
|
|
|
Efficiency ratio
|
85.42
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE:
|
|
|
|
|
|
|
Net income (loss):
|
|
|
|
|
|
|
Basic
|
$
(0.06)
|
|
|
|
|
|
Average number of common shares
outstanding
|
21,224
|
|
|
|
|
|
Diluted
|
(0.06)
|
|
|
|
|
|
Average number of common shares
outstanding
|
21,224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
YEAR
|
|
|
|
|
|
|
TO DATE
|
|
PERFORMANCE DATA FOR THE
PERIOD:
|
|
|
|
|
|
|
Net income (loss)
|
$
533
|
$
(939)
|
$
(2,810)
|
$
(1,679)
|
$
(4,895)
|
|
Net income (loss) available to common
shareholders
|
274
|
(1,202)
|
(3,073)
|
(1,941)
|
(5,942)
|
|
|
|
|
|
|
|
|
PERFORMANCE PERCENTAGES
(annualized):
|
|
|
|
|
|
|
Return on average assets
|
0.22%
|
(0.39)%
|
(1.15)%
|
(0.70)%
|
(0.51)%
|
|
Return on average equity
|
1.90
|
(3.29)
|
(9.83)
|
(6.01)
|
(4.33)
|
|
Net interest margin
|
3.72
|
3.66
|
3.57
|
3.75
|
3.72
|
|
Net charge-offs as a percentage of
average loans
|
0.03
|
0.19
|
0.35
|
1.82
|
0.60
|
|
Loan loss provision as a percentage of
average loans
|
1.02
|
1.81
|
3.42
|
2.05
|
2.09
|
|
Efficiency ratio
|
78.22
|
82.56
|
84.00
|
92.82
|
84.39
|
|
|
|
|
|
|
|
|
PER COMMON SHARE:
|
|
|
|
|
|
|
Net income (loss):
|
|
|
|
|
|
|
Basic
|
$
0.01
|
$
(0.06)
|
$
(0.15)
|
$
(0.09)
|
$
(0.28)
|
|
Average number of common shares
outstanding
|
21,137
|
21,151
|
21,178
|
21,219
|
21,172
|
|
Diluted
|
0.01
|
(0.06)
|
(0.15)
|
(0.09)
|
(0.28)
|
|
Average number of common shares
outstanding
|
21,137
|
21,152
|
21,182
|
21,219
|
21,174
|
|
|
|
|
|
|
|
AMERISERV
FINANCIAL, INC.
|
|
(In thousands,
except per share, statistical, and ratio data)
|
|
(All quarterly and
2010 data unaudited)
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
1QTR
|
|
|
|
|
PERFORMANCE DATA AT PERIOD
END:
|
|
|
|
|
|
Assets
|
$
960,817
|
|
|
|
|
Short-term investment in money market
funds
|
2,105
|
|
|
|
|
Investment securities
|
150,073
|
|
|
|
|
Loans
|
712,929
|
|
|
|
|
Allowance for loan losses
|
21,516
|
|
|
|
|
Goodwill
|
12,950
|
|
|
|
|
Deposits
|
802,201
|
|
|
|
|
FHLB borrowings
|
25,296
|
|
|
|
|
Shareholders' equity
|
106,393
|
|
|
|
|
Non-performing assets
|
20,322
|
|
|
|
|
Asset leverage ratio
|
11.01%
|
|
|
|
|
Tangible common equity
ratio
|
7.70
|
|
|
|
|
PER COMMON SHARE:
|
|
|
|
|
|
Book value (A)
|
$
4.04
|
|
|
|
|
Market value
|
1.67
|
|
|
|
|
Trust assets - fair market value
(B)
|
$
1,398,215
|
|
|
|
|
|
|
|
|
|
|
STATISTICAL DATA AT PERIOD
END:
|
|
|
|
|
|
Full-time equivalent
employees
|
353
|
|
|
|
|
Branch locations
|
18
|
|
|
|
|
Common shares outstanding
|
21,223,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
|
PERFORMANCE DATA AT PERIOD
END:
|
|
|
|
|
|
Assets
|
$
975,062
|
$
978,899
|
$
959,344
|
$
970,026
|
|
Short-term investment in money market
funds
|
10,817
|
7,516
|
6,565
|
3,766
|
|
Investment securities
|
138,853
|
136,119
|
138,715
|
142,883
|
|
Loans
|
726,961
|
739,649
|
722,540
|
722,904
|
|
Allowance for loan losses
|
10,661
|
13,606
|
19,255
|
19,685
|
|
Goodwill and core deposit
intangibles
|
13,498
|
13,498
|
12,950
|
12,950
|
|
Deposits
|
746,813
|
783,807
|
779,185
|
786,011
|
|
FHLB borrowings
|
90,346
|
57,702
|
44,451
|
51,579
|
|
Shareholders' equity
|
114,254
|
112,880
|
110,706
|
107,254
|
|
Non-performing assets
|
5,099
|
14,670
|
23,689
|
18,337
|
|
Asset leverage ratio
|
11.82%
|
11.61%
|
11.41%
|
11.06%
|
|
Tangible common equity
ratio
|
8.35
|
8.17
|
8.16
|
7.71
|
|
PER COMMON SHARE:
|
|
|
|
|
|
Book value (A)
|
$
4.44
|
$
4.37
|
$
4.25
|
$
4.09
|
|
Market value
|
1.67
|
1.85
|
1.80
|
1.67
|
|
Trust assets - fair market value
(B)
|
$
1,432,375
|
$
1,376,272
|
$
1,340,119
|
$
1,358,570
|
|
|
|
|
|
|
|
STATISTICAL DATA AT PERIOD
END:
|
|
|
|
|
|
Full-time equivalent
employees
|
355
|
352
|
350
|
345
|
|
Branch locations
|
18
|
18
|
18
|
18
|
|
Common shares outstanding
|
21,144,700
|
21,156,801
|
21,215,115
|
21,221,909
|
|
|
|
|
|
|
|
Note:
|
|
(A) Preferred stock received
through the Capital Purchase Program is excluded from the book
value per common share calculation.
|
|
(B) Not recognized on the
balance sheet
|
|
|
|
|
|
|
AMERISERV
FINANCIAL, INC.
CONSOLIDATED
STATEMENT OF INCOME
(In
thousands)
(All quarterly and
2010 data unaudited)
|
|
|
|
|
|
2010
|
|
|
1QTR
|
|
|
|
|
INTEREST INCOME
|
|
|
|
|
|
Interest and fees on loans
|
$
10,020
|
|
Total investment portfolio
|
1,445
|
|
Total Interest Income
|
11,465
|
|
|
|
|
INTEREST EXPENSE
|
|
|
Deposits
|
2,927
|
|
All borrowings
|
417
|
|
Total Interest Expense
|
3,344
|
|
|
|
|
NET INTEREST INCOME
|
8,121
|
|
Provision for loan losses
|
3,050
|
|
|
|
|
NET INTEREST INCOME AFTER
PROVISION
|
|
|
FOR LOAN LOSSES
|
5,071
|
|
|
|
|
NON-INTEREST INCOME
|
|
|
Trust fees
|
1,454
|
|
Net realized gains on investment
securities available for sale
|
65
|
|
Net realized gains on loans held for
sale
|
131
|
|
Service charges on deposit
accounts
|
572
|
|
Investment advisory fees
|
187
|
|
Bank owned life insurance
|
254
|
|
Other income
|
637
|
|
Total Non-Interest Income
|
3,300
|
|
|
|
|
NON-INTEREST EXPENSE
|
|
|
Salaries and employee
benefits
|
5,199
|
|
Net occupancy expense
|
736
|
|
Equipment expense
|
418
|
|
Professional fees
|
1,102
|
|
FDIC deposit insurance
expense
|
331
|
|
Other expenses
|
1,978
|
|
Total Non-Interest Expense
|
9,764
|
|
|
|
|
PRETAX INCOME (LOSS)
|
(1,393)
|
|
Income tax expense
(benefit)
|
(475)
|
|
NET INCOME (LOSS)
|
(918)
|
|
Preferred stock dividends
|
263
|
|
NET INCOME (LOSS) AVAILABLE TO COMMON
SHAREHOLDERS
|
$
(1,181)
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
YEAR
|
|
|
|
|
|
|
TO DATE
|
|
INTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
$
10,349
|
$
10,544
|
$
10,247
|
$
10,310
|
$
41,450
|
|
Total investment portfolio
|
1,586
|
1,511
|
1,451
|
1,457
|
6,005
|
|
Total Interest Income
|
11,935
|
12,055
|
11,698
|
11,767
|
47,455
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE
|
|
|
|
|
|
|
Deposits
|
3,255
|
3,405
|
3,316
|
3,134
|
13,110
|
|
All borrowings
|
539
|
479
|
457
|
436
|
1,911
|
|
Total Interest Expense
|
3,794
|
3,884
|
3,773
|
3,570
|
15,021
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
|
8,141
|
8,171
|
7,925
|
8,197
|
32,434
|
|
Provision for loan losses
|
1,800
|
3,300
|
6,300
|
3,750
|
15,150
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER
PROVISION
|
|
|
|
|
|
|
FOR LOAN LOSSES
|
6,341
|
4,871
|
1,625
|
4,447
|
17,284
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME
|
|
|
|
|
|
|
Trust fees
|
1,559
|
1,438
|
1,377
|
1,274
|
5,648
|
|
Net realized gains on investment
securities available for sale
|
101
|
63
|
-
|
-
|
164
|
|
Net realized gains on loans held for
sale
|
118
|
163
|
213
|
157
|
651
|
|
Service charges on deposit
accounts
|
673
|
710
|
712
|
674
|
2,769
|
|
Investment advisory fees
|
137
|
152
|
176
|
183
|
648
|
|
Bank owned life insurance
|
250
|
254
|
258
|
446
|
1,208
|
|
Other income
|
723
|
711
|
718
|
688
|
2,840
|
|
Total Non-Interest Income
|
3,561
|
3,491
|
3,454
|
3,422
|
13,928
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
5,092
|
4,983
|
5,114
|
5,337
|
20,526
|
|
Net occupancy expense
|
722
|
641
|
602
|
667
|
2,632
|
|
Equipment expense
|
415
|
442
|
398
|
437
|
1,692
|
|
Professional fees
|
920
|
873
|
1,050
|
1,189
|
4,032
|
|
FDIC deposit insurance
expense
|
32
|
691
|
311
|
636
|
1,670
|
|
Amortization of core deposit
intangibles
|
108
|
-
|
-
|
-
|
108
|
|
Other expenses
|
1,873
|
2,006
|
2,091
|
2,527
|
8,497
|
|
Total Non-Interest Expense
|
9,162
|
9,636
|
9,566
|
10,793
|
39,157
|
|
|
|
|
|
|
|
|
PRETAX INCOME (LOSS)
|
740
|
(1,274)
|
(4,487)
|
(2,924)
|
(7,945)
|
|
Income tax expense
(benefit)
|
207
|
(335)
|
(1,677)
|
(1,245)
|
(3,050)
|
|
NET INCOME (LOSS)
|
533
|
(939)
|
(2,810)
|
(1,679)
|
(4,895)
|
|
Preferred stock dividends
|
259
|
263
|
263
|
262
|
1,047
|
|
NET INCOME (LOSS) AVAILABLE TO COMMON
SHAREHOLDERS
|
$
274
|
$
(1,202)
|
$
(3,073)
|
$
(1,941)
|
$
(5,942)
|
|
|
|
|
|
|
|
AMERISERV
FINANCIAL, INC.
AVERAGE BALANCE
SHEET DATA
(In
thousands)
(All quarterly and
2010 data unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
1QTR
|
|
1QTR
|
|
|
|
|
|
|
Interest earning assets:
|
|
|
|
|
Loans and loans held for sale, net of
unearned income
|
$
717,247
|
|
$
714,253
|
|
Deposits with banks
|
1,711
|
|
3,158
|
|
Short-term investment in money market
funds
|
4,545
|
|
10,112
|
|
Federal funds
|
2,394
|
|
55
|
|
Total investment securities
|
148,399
|
|
148,465
|
|
Total interest earning
assets
|
874,296
|
|
876,043
|
|
|
|
|
|
|
Non-interest earning
assets:
|
|
|
|
|
Cash and due from banks
|
15,433
|
|
15,488
|
|
Premises and equipment
|
9,449
|
|
9,446
|
|
Other assets
|
79,643
|
|
71,004
|
|
Allowance for loan losses
|
(20,793)
|
|
(9,144)
|
|
|
|
|
|
|
Total assets
|
958,028
|
|
962,837
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
Interest bearing deposits:
|
|
|
|
|
Interest bearing demand
|
57,365
|
|
62,355
|
|
Savings
|
75,287
|
|
71,759
|
|
Money market
|
151,162
|
|
141,442
|
|
Other time
|
386,343
|
|
326,221
|
|
Total interest bearing
deposits
|
670,157
|
|
601,777
|
|
Borrowings:
|
|
|
|
|
Federal funds purchased, securities
sold under
|
|
|
|
|
agreements to repurchase, and
other short-term
|
|
|
|
|
borrowings
|
5,490
|
|
94,901
|
|
Advanced from Federal Home Loan
Bank
|
32,494
|
|
13,853
|
|
Guaranteed junior subordinated
deferrable interest debentures
|
13,085
|
|
13,085
|
|
Total interest bearing
liabilities
|
721,226
|
|
723,616
|
|
|
|
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
Demand deposits
|
116,954
|
|
113,298
|
|
Other liabilities
|
12,620
|
|
12,265
|
|
Shareholders' equity
|
107,228
|
|
113,658
|
|
Total liabilities and shareholders'
equity
|
$
958,028
|
|
$
962,837
|
|
|
|
|
|
SOURCE AmeriServ Financial, Inc.