JOHNSTOWN, Pa., Oct. 15, 2019 /PRNewswire/ -- AmeriServ
Financial, Inc. (NASDAQ: ASRV) reported third quarter 2019 net
income of $1,689,000, or $0.10 per diluted common share. This earnings
performance represented a $640,000,
or 27.5%, decrease from the third quarter of 2018 when net income
totaled $2,329,000, or $0.13 per diluted common share. Note that the
Company's third quarter 2018 earnings were favorably impacted by a
$264,000 income tax benefit that is
discussed later in this release. For the nine-month period ended
September 30, 2019, the Company
reported net income of $5,359,000, or
$0.31 per diluted common share. This
represents a 3.1% decrease in earnings per share when compared to
the first nine months of 2018 when net income totaled $5,840,000, or $0.32 per diluted common share. The following
table highlights the Company's financial performance for both the
three and nine month periods ended September
30, 2019 and 2018:
|
Third
Quarter 2019
|
Third
Quarter
2018
|
|
Nine Months Ended
September 30, 2019
|
Nine Months Ended
September 30, 2018
|
|
|
|
|
|
|
Net income
|
$1,689,000
|
$2,329,000
|
|
$5,359,000
|
$5,840,000
|
Diluted earnings per
share
|
$ 0.10
|
$ 0.13
|
|
$ 0.31
|
$ 0.32
|
Jeffrey A. Stopko, President and
Chief Executive Officer, commented on the 2019 financial results:
"AmeriServ Financial Inc. was able to return 85% of third quarter
2019 earnings to our shareholders through accretive common stock
buybacks and an increased cash dividend. This strategic focus on
active capital management continues to favorably impact both
earnings per share and tangible book value(1) per share.
Additionally, we have also achieved solid deposit growth this year
due, in part, to the success of our financial banking center in
Hagerstown, Maryland that was
opened in December 2018."
The Company's net interest income in the third quarter of 2019
decreased by $345,000, or 3.8%, from
the prior year's third quarter and, for the first nine months of
2019, decreased by $233,000, or 0.9%,
when compared to the first nine months of 2018. The Company's net
interest margin of 3.18% for the third quarter of 2019 and 3.24%
for the nine-month timeframe was 13 basis points lower than the
third quarter of 2018 and 5 basis points lower than the nine-month
period of 2018. The decrease in net interest income in 2019 is the
result of net interest margin compression caused by a combination
of the lower interest rates that exist in the economy and a
decrease in the balance of total average loans. Overall, the U.S.
Treasury Yield Curve has shifted downward, flattened and became
inverted in certain segments, particularly in the third quarter of
2019. Slightly offsetting these unfavorable items was an increase
in the average balance of total investment securities in both time
periods as well as a favorable shift experienced in the mix of
total average interest bearing liabilities as total interest
bearing deposits increased and resulted in less reliance on higher
cost borrowings to fund interest earning assets.
Total loans averaged $875 million
in the first nine months of 2019 which is $10.0 million, or 1.1%, lower than the
$885 million average for the first
nine months of 2018. The lower balance of total average loans
reflects the high level of loan payoffs received during the fourth
quarter of 2018 and, again, during the third quarter of 2019 which
exceeded the level of new loan originations during both time
periods. In 2019, after a first quarter in which total average
loans remained relatively consistent, loan growth returned during
the second quarter as loan originations exceeded loan payoffs.
However, during the third quarter, although loan pipelines remained
strong, loan originations began to slow and trailed loan payoffs
resulting in the 2019 third quarter average total loan portfolio
balance falling short of the 2018 third quarter average balance.
The decrease between years occurred primarily in the commercial
real estate and commercial & industrial loan portfolios as
potential new loan customers delayed their decision to obtain loans
given the Federal Reserve's action to decrease interest rates late
in July and September 2019 and the
sentiment in national credit markets that additional interest rate
reductions may occur this year. Even though loan balances are lower
for both time periods in 2019, loan interest income increased by
$1.6 million, or 5.2%, between the
first nine months of 2019 and last year's first nine months. The
higher loan interest income primarily reflects the Federal Reserve
increasing the target federal funds interest rate in 2018. This
resulted in new loans originating at higher yields throughout 2018
and during the first half of 2019 and also caused the upward
repricing of certain loans tied to LIBOR or the prime rate as both
of these indices moved up with the federal funds rate 2018
increases. Also, included in this increase was a higher level of
loan fee income by $65,000, due
primarily to prepayment fees collected on certain early loan
pay-offs.
Total investment securities averaged $197
million in the first nine months of 2019 which is
$15.2 million, or 8.4%, higher than
the $182 million average for the
first nine months of 2018. The growth in the investment securities
portfolio occurred primarily during 2018 and is the result of
management taking advantage of the rising interest rate environment
experienced during 2018 which provided an attractive market for
additional security purchases. Purchases primarily focused on
federal agency mortgage backed securities due to the ongoing cash
flow that these securities provide. Also, management continued its
portfolio diversification strategy through purchases of high
quality corporate and taxable municipal securities. Investment
security purchase activity slowed significantly during the second
and third quarters of 2019 as the interest rate market was less
favorable. Interest income on investments increased between the
third quarter of 2019 and the third quarter of 2018 by $154,000, or 10.0%, and increased in the first
nine months of 2019 from the first nine months of 2018 by
$794,000, or 18.0%. Overall, total
interest income increased by $2.4
million, or 6.8%, between years.
Total interest expense for the first nine months of 2019
increased by $2.6 million, or 31.8%,
when compared to 2018, due to higher levels of both deposit and
borrowing interest expense. Deposit interest expense in 2019 was
higher by $2.6 million, or 43.5%, for
the first nine months of the year which reflects the higher level
of total average interest bearing deposits and certain indexed
money market accounts repricing upward due to the impact of the
Federal Reserve increasing interest rates during 2018. The Company
did begin to experience deposit pricing relief to a small degree
during the third quarter of 2019 because of the Federal Reserve
easing interest rates late in July and September 2019. However, the Company continues to
experience competitive market pressure to retain existing deposit
customers and attract new customer deposits. Customer product
preference changed as well in 2019 resulting in movement of funds
from non-interest bearing demand deposit accounts and lower
yielding money market accounts into higher yielding certificates of
deposits. Overall, total deposits continued to grow for a fifth
consecutive quarter and averaged $978
million for the first nine months of 2019, which was
$20.6 million, or 2.1%, higher than
the 2018 nine-month average. The Company's loan to deposit ratio
averaged 89.4% in the third quarter of 2019, which we believe
indicates that the Company has ample capacity to grow its loan
portfolio.
Even though total average borrowings decreased between years,
the Company experienced a $52,000, or
2.2%, increase in the interest cost for borrowings in the first
nine months of 2019 due to the impact that the 2018 increases in
the federal funds rate had on the cost of overnight borrowed funds
and the replacement of matured FHLB term advances. Also, due to a
new accounting pronouncement that became effective January 1, 2019, the Company recognized
additional interest expense on its financing property leases.
However, and specific to the third quarter of 2019, the total
average term advance borrowings balance increased by approximately
$12.0 million, or 27.3%, when
compared to the third quarter of 2018. This increase is due to the
inversion demonstrated by the U.S. Treasury Yield Curve in 2019 and
resulted in certain term advances costing less than overnight
borrowed funds. As a result of this and the Federal Reserve
decreasing the federal funds rate late in July and, to a lesser
extent, the middle of September, the interest cost of borrowings
decreased in the third quarter of 2019 by $102,000, or 11.6%, when compared to the third
quarter of 2018. Overall, the 2019 nine-month average of FHLB
borrowed funds was $65.1 million,
which represented a decrease of $14.1
million, or 17.8%, due to the increase in total average
deposits.
The Company did record a $225,000
provision for loan losses in the third quarter of 2019 as compared
to a zero provision in the third quarter of 2018. For the first
nine months of 2019, the Company recorded a $175,000 provision recovery for loan losses
compared to a $100,000 provision
expense recorded in first nine months of 2018. The third quarter
2019 provision expense follows the first two quarters of 2019 in
which a provision recovery and no provision expense was recognized.
The recognition of a $225,000
provision expense in the third quarter primarily reflects an
increase in criticized loan totals. For the nine months of 2019,
the $175,000 provision recovery
reflects our overall strong asset quality, limited loan growth, and
low level of net loan charge-offs. Specifically, the Company
experienced net loan charge-offs of only $152,000, or 0.02% of total loans, in the first
nine months of 2019 compared to net loan charge-offs of
$875,000, or 0.13% of total loans, in
the first nine months of 2018. Overall, nonperforming assets
totaled $2.0 million, or only 0.22%
of total loans, at September 30,
2019. In summary, the allowance for loan losses provided
426% coverage of non-performing assets, and 0.95% of total loans,
at September 30, 2019, compared to
629% coverage of non-performing assets, and 1.00% of total loans,
at December 31, 2018.
Total non-interest income in the third quarter of 2019 increased
by $509,000, or 14.2%, from the prior
year's third quarter, and increased for the nine months by
$455,000, or 4.2%. For the third
quarter, net realized gains on loans held for sale increased by
$229,000, primarily due to the sale
of the guaranteed portion of a Small Business Administration loan
that resulted in a $197,000 gain. The
remainder of the net gain was due to increased residential mortgage
loan sales in the secondary market as the lower interest rate
environment in the third quarter of 2019 has resulted in a greater
level of residential mortgage loan production. Likewise, the
increased residential mortgage loan production resulted in the
associated level of mortgage fee income improving by $43,000. Other income increased by $86,000, or 16.0%, due to a higher level of
letter of credit fees and increased revenue from check supply sales
due to a favorable vendor contract renegotiation. Wealth management
fees increased by $72,000, or 3.1%,
as the Company benefitted from a continuing increase in market
values for assets under management. The Company did recognize an
$88,000 investment security sale gain
in the third quarter of 2019 as the opportunity existed to capture
gains on certain securities that demonstrated higher than typical
market appreciation in this low interest rate environment. For the
nine-month period, similar comparisons for the same line items
resulted in the favorable variance when comparing 2019 to 2018.
Favorable comparisons included net realized gains on loans held for
sale by $181,000, or 46.1%, other
income by $71,000, or 4.0%, and
mortgage related fees by $53,000, or
32.1%. Additionally, the Company recognized a net investment
security sale gain of $118,000
through nine months of 2019 compared to a $148,000 net loss in 2018 after the Company sold
a portion of low balance, low yielding securities at a loss in 2018
to reposition the investment portfolio for stronger future returns.
These favorable items more than offset a $118,000 or 11.1% decrease in service charges on
deposit accounts due to reduced overdraft fees.
The Company's total non-interest expense in the third quarter of
2019 increased by $407,000, or 4.0%,
when compared to the third quarter of 2018, and increased in the
first nine months of 2019 by $753,000, or 2.5%, when compared to 2018. The
increase in the third quarter of 2019 was due to a higher level of
salaries & benefits expense by $509,000, or 8.8%, and a greater level of other
expense by $71,000, or 3.7%. These
increases more than offset a reduction to FDIC deposit insurance
expense by $140,000, or 100.0% and
professional fees by $45,000, or
3.4%. Within salaries & benefits, higher salaries expense was
due to annual merit increases, the addition of several employees to
address management succession planning, four additional employees
at our new financial banking center in Hagerstown, Maryland, and higher health care
costs. The increase to other expense reflects our increased
investment in technology as evidenced by higher website costs and
additional telecommunications expense. The Company did not
recognize FDIC deposit insurance expense in the third quarter of
2019. As part of the application of the Small Bank Assessment
Credit regulation, the FDIC awarded community banks under
$10 billion an assessment credit
because the banking industry reserve ratio exceeded its 1.38%
target. For the first nine months of 2019, salaries & benefits
expense is $847,000, or 4.7%, higher
for similar reasons as the quarterly variance. Other expenses are
higher by $325,000, or 6.3%, also for
similar reasons as the quarterly variance in addition to a higher
level of funding for the unfunded commitment reserve by
$107,000 due to increased loan
approvals in 2019. Slightly offsetting these unfavorable
comparisons are lower FDIC deposit insurance expense by
$297,000, or 65.0%, and lower
professional fees by $112,000, or
3.0%, due to lower legal fees and other professional fees.
The Company recorded an income tax expense of $442,000, or an effective tax rate of 20.7%, in
the third quarter of 2019. This compares to an income tax expense
of $270,000, or an effective tax rate
of 10.4%, for the third quarter of 2018. The lower effective tax
rate and income tax expense in the third quarter of 2018 reflected
the benefits of corporate tax reform as a result of the enactment
of the "Tax Cuts and Jobs Act" which allowed the Company to
contribute additional funds to our pension plan in 2018 in order to
achieve a greater income tax benefit. The tax benefit of this
additional pension contribution favorably reduced income tax
expense by $264,000 in the third
quarter of 2018. Similarly, for the first nine months of 2019, the
Company recorded income tax expense of $1,403,000, or an effective tax rate of 20.7%,
compared to income tax expense of $1,178,000 in 2018, or an effective tax rate of
16.8%.
The Company had total assets of $1.17
billion, shareholders' equity of $102.5 million, a book value of $5.98 per common share and a tangible book
value(1) of $5.28 per
common share at September 30, 2019.
In accordance with the common stock buyback program announced on
April 16, 2019, the Company returned
an additional $1.7 million of capital
to its shareholders through the repurchase of 399,195 shares of its
common stock in the second and third quarters of 2019. Overall in
2019, this latest common stock buyback program, combined with the
first quarter completion of the previously authorized common stock
buyback program, resulted in the Company returning $2.2 million to its shareholders through the
repurchase of 511,506 shares of its common stock in the first nine
months of 2019. When including the increased cash dividend payments
on our common stock, total capital returned to our shareholders
exceeded 63% of net income for the first nine months of 2019. The
Company continued to maintain strong capital ratios that exceed the
regulatory defined well capitalized status.
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.
(1) Non-GAAP Financial Information. See
"Reconciliation of Non-GAAP Financial Measures" at end of
release.
AMERISERV FINANCIAL,
INC.
|
NASDAQ:
ASRV
|
SUPPLEMENTAL
FINANCIAL PERFORMANCE DATA
|
September 30,
2019
|
(Dollars in
thousands, except per share and ratio data)
|
(Unaudited)
|
|
2019
|
|
1QTR
|
2QTR
|
3QTR
|
YEAR
TO DATE
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
Net income
|
$1,878
|
$1,792
|
$1,689
|
$5,359
|
|
|
|
|
|
PERFORMANCE
PERCENTAGES (annualized):
|
|
|
|
|
Return on average
assets
|
0.66%
|
0.61%
|
0.57%
|
0.61%
|
Return on average
equity
|
7.84
|
7.24
|
6.60
|
7.21
|
Net interest
margin
|
3.24
|
3.30
|
3.18
|
3.24
|
Net charge-offs
(recoveries) as a percentage of average loans
|
0.08
|
0.00
|
(0.01)
|
0.02
|
Loan loss provision
(credit) as a percentage of
average
loans
|
(0.19)
|
0.00
|
0.10
|
(0.03)
|
Efficiency
ratio
|
83.90
|
82.18
|
81.65
|
82.55
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
Basic
|
$0.11
|
$0.10
|
$0.10
|
$0.31
|
Average number of
common shares outstanding
|
17,578
|
17,476
|
17,278
|
17,443
|
Diluted
|
0.11
|
0.10
|
0.10
|
0.31
|
Average number of
common shares outstanding
|
17,664
|
17,560
|
17,360
|
17,524
|
Cash dividends paid
per share
|
$0.020
|
$0.025
|
$0.025
|
$0.070
|
2018
|
|
1QTR
|
2QTR
|
3QTR
|
YEAR
|
|
|
|
|
TO DATE
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
Net income
|
$1,767
|
$1,744
|
$2,329
|
$5,840
|
|
|
|
|
|
PERFORMANCE
PERCENTAGES (annualized):
|
|
|
|
|
Return on average
assets
|
0.62%
|
0.60%
|
0.79%
|
0.67%
|
Return on average
equity
|
7.55
|
7.30
|
9.54
|
8.14
|
Net interest
margin
|
3.29
|
3.28
|
3.31
|
3.29
|
Net charge-offs
(recoveries) as a percentage of average loans
|
0.15
|
0.21
|
0.04
|
0.13
|
Loan loss provision
(credit) as a percentage of
average
loans
|
0.02
|
0.02
|
0.00
|
0.02
|
Efficiency
ratio
|
81.61
|
82.04
|
79.50
|
81.04
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
Basic
|
$0.10
|
$0.10
|
$0.13
|
$0.32
|
Average number of
common shares outstanding
|
18,079
|
18,038
|
17,924
|
18,013
|
Diluted
|
0.10
|
0.10
|
0.13
|
0.32
|
Average number of
common shares outstanding
|
18,181
|
18,140
|
18,036
|
18,117
|
Cash dividends paid
per share
|
$0.015
|
$0.020
|
$0.020
|
$0.055
|
AMERISERV FINANCIAL,
INC.
|
NASDAQ:
ASRV
|
(Dollars in
thousands, except per share, statistical, and ratio
data)
|
(Unaudited)
|
|
2019
|
|
1QTR
|
2QTR
|
3QTR
|
FINANCIAL CONDITION
DATA AT PERIOD END:
|
|
|
|
Assets
|
$1,167,682
|
$1,190,583
|
$1,171,426
|
Short-term
investments/overnight funds
|
7,996
|
6,532
|
6,039
|
Investment
securities
|
194,553
|
191,168
|
182,699
|
Loans and loans held
for sale
|
863,134
|
890,081
|
875,082
|
Allowance for loan
losses
|
8,107
|
8,102
|
8,345
|
Goodwill
|
11,944
|
11,944
|
11,944
|
Deposits
|
957,779
|
968,480
|
969,989
|
FHLB
borrowings
|
79,483
|
88,314
|
66,905
|
Subordinated debt,
net
|
7,493
|
7,499
|
7,505
|
Shareholders'
equity
|
99,061
|
101,476
|
102,460
|
Non-performing
assets
|
1,168
|
1,681
|
1,957
|
Tangible common
equity ratio (B)
|
7.54%
|
7.60%
|
7.81%
|
Total capital (to
risk weighted assets) ratio
|
13.37
|
13.14
|
13.33
|
PER COMMON
SHARE:
|
|
|
|
Book value
|
$5.65
|
$5.84
|
$5.98
|
Tangible book value
(B)
|
4.97
|
5.15
|
5.28
|
Market
value
|
4.02
|
4.15
|
4.14
|
Wealth management
assets – fair market value (A)
|
$2,229,860
|
$2,288,576
|
$2,142,513
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
Full-time equivalent
employees
|
309
|
309
|
308
|
Branch
locations
|
16
|
16
|
16
|
Common shares
outstanding
|
17,540,676
|
17,384,355
|
17,146,714
|
2018
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
FINANCIAL CONDITION
DATA AT PERIOD END:
|
|
|
|
|
Assets
|
$1,151,160
|
$1,180,510
|
$1,168,806
|
$1,160,680
|
Short-term
investments/overnight funds
|
7,796
|
8,050
|
7,428
|
6,924
|
Investment
securities
|
171,053
|
174,771
|
177,426
|
187,491
|
Loans and loans held
for sale
|
875,716
|
895,162
|
884,374
|
863,129
|
Allowance for loan
losses
|
9,932
|
9,521
|
9,439
|
8,671
|
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
Deposits
|
944,206
|
928,176
|
944,213
|
949,171
|
FHLB
borrowings
|
82,864
|
126,901
|
103,799
|
87,750
|
Subordinated debt,
net
|
7,470
|
7,476
|
7,482
|
7,488
|
Shareholders'
equity
|
95,810
|
96,883
|
97,179
|
97,977
|
Non-performing
assets
|
2,157
|
1,160
|
1,067
|
1,378
|
Tangible common
equity ratio (B)
|
7.36%
|
7.27%
|
7.37%
|
7.49%
|
Total capital (to
risk weighted assets) ratio
|
13.45
|
13.01
|
13.13
|
13.53
|
PER COMMON
SHARE:
|
|
|
|
|
Book value
|
$5.31
|
$5.37
|
$5.47
|
$5.56
|
Tangible book value
(B)
|
4.65
|
4.71
|
4.80
|
4.88
|
Market
value
|
4.00
|
4.10
|
4.30
|
4.03
|
Wealth management
assets – fair market value (A)
|
$2,175,538
|
$2,201,565
|
$2,258,108
|
$2,106,172
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
Full-time equivalent
employees
|
304
|
295
|
296
|
303
|
Branch
locations
|
15
|
15
|
15
|
16
|
Common shares
outstanding
|
18,033,401
|
18,044,692
|
17,767,313
|
17,619,303
|
NOTES:
|
(A)
|
Not recognized on the
consolidated balance sheets.
|
(B)
|
Non-GAAP Financial
Information. See "Reconciliation of Non-GAAP Financial Measures" at
end of release.
|
AMERISERV FINANCIAL,
INC.
|
NASDAQ:
ASRV
|
CONSOLIDATED
STATEMENT OF INCOME
|
(Dollars in
thousands)
|
(Unaudited)
|
|
2019
|
|
1QTR
|
2QTR
|
3QTR
|
YEAR
TO DATE
|
INTEREST
INCOME
|
|
|
|
|
Interest and fees on
loans
|
$10,418
|
$10,994
|
$10,737
|
$32,149
|
Interest on
investments
|
1,746
|
1,771
|
1,696
|
5,213
|
Total Interest
Income
|
12,164
|
12,765
|
12,433
|
37,362
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
Deposits
|
2,730
|
2,867
|
2,895
|
8,492
|
All
borrowings
|
777
|
837
|
774
|
2,388
|
Total Interest
Expense
|
3,507
|
3,704
|
3,669
|
10,880
|
|
|
|
|
|
NET INTEREST
INCOME
|
8,657
|
9,061
|
8,764
|
26,482
|
Provision (credit)
for loan losses
|
(400)
|
0
|
225
|
(175)
|
NET INTEREST INCOME
AFTER
PROVISION (CREDIT)
FOR LOAN LOSSES
|
9,057
|
9,061
|
8,539
|
26,657
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
Wealth management
fees
|
2,396
|
2,419
|
2,431
|
7,246
|
Service charges on
deposit accounts
|
310
|
317
|
321
|
948
|
Net realized gains on
loans held for sale
|
62
|
107
|
405
|
574
|
Mortgage related
fees
|
44
|
77
|
97
|
218
|
Net realized gains
(losses) on investment securities
|
0
|
30
|
88
|
118
|
Bank owned life
insurance
|
128
|
129
|
131
|
388
|
Other
income
|
665
|
578
|
622
|
1,865
|
Total Non-Interest
Income
|
3,605
|
3,657
|
4,095
|
11,357
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
Salaries and employee
benefits
|
6,301
|
6,348
|
6,324
|
18,973
|
Net occupancy
expense
|
658
|
622
|
599
|
1,879
|
Equipment
expense
|
361
|
387
|
333
|
1,081
|
Professional
fees
|
1,120
|
1,249
|
1,276
|
3,645
|
FDIC deposit
insurance expense
|
80
|
80
|
0
|
160
|
Other
expenses
|
1,773
|
1,770
|
1,971
|
5,514
|
Total Non-Interest
Expense
|
10,293
|
10,456
|
10,503
|
31,252
|
|
|
|
|
|
PRETAX
INCOME
|
2,369
|
2,262
|
2,131
|
6,762
|
Income tax
expense
|
491
|
470
|
442
|
1,403
|
NET INCOME
|
$1,878
|
$1,792
|
$1,689
|
$5,359
|
2018
|
|
1QTR
|
2QTR
|
3QTR
|
YEAR
|
INTEREST
INCOME
|
|
|
|
TO DATE
|
Interest and fees on
loans
|
$9,818
|
$10,125
|
$10,607
|
$30,550
|
Interest on
investments
|
1,399
|
1,478
|
1,542
|
4,419
|
Total Interest
Income
|
11,217
|
11,603
|
12,149
|
34,969
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
Deposits
|
1,781
|
1,973
|
2,164
|
5,918
|
All
borrowings
|
688
|
772
|
876
|
2,336
|
Total Interest
Expense
|
2,469
|
2,745
|
3,040
|
8,254
|
|
|
|
|
|
NET INTEREST
INCOME
|
8,748
|
8,858
|
9,109
|
26,715
|
Provision (credit)
for loan losses
|
50
|
50
|
0
|
100
|
NET INTEREST INCOME
AFTER
PROVISION (CREDIT)
FOR LOAN LOSSES
|
8,698
|
8,808
|
9,109
|
26,615
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
Wealth management
fees
|
2,426
|
2,447
|
2,359
|
7,232
|
Service charges on
deposit accounts
|
383
|
357
|
326
|
1,066
|
Net realized gains on
loans held for sale
|
98
|
119
|
176
|
393
|
Mortgage related
fees
|
39
|
72
|
54
|
165
|
Net realized gains
(losses) on investment securities
|
(148)
|
0
|
0
|
(148)
|
Bank owned life
insurance
|
132
|
133
|
135
|
400
|
Other
income
|
705
|
553
|
536
|
1,794
|
Total Non-Interest
Income
|
3,635
|
3,681
|
3,586
|
10,902
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
Salaries and employee
benefits
|
6,093
|
6,218
|
5,815
|
18,126
|
Net occupancy
expense
|
670
|
611
|
585
|
1,866
|
Equipment
expense
|
391
|
378
|
335
|
1,104
|
Professional
fees
|
1,184
|
1,252
|
1,321
|
3,757
|
FDIC deposit
insurance expense
|
162
|
155
|
140
|
457
|
Other
expenses
|
1,611
|
1,678
|
1,900
|
5,189
|
Total Non-Interest
Expense
|
10,111
|
10,292
|
10,096
|
30,499
|
|
|
|
|
|
PRETAX
INCOME
|
2,222
|
2,197
|
2,599
|
7,018
|
Income tax
expense
|
455
|
453
|
270
|
1,178
|
NET INCOME
|
$1,767
|
$1,744
|
$2,329
|
$5,840
|
AMERISERV FINANCIAL,
INC.
|
NASDAQ:
ASRV
|
Average Balance Sheet
Data
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
2019
|
2018
|
|
3QTR
|
NINE
MONTHS
|
3QTR
|
NINE
MONTHS
|
Interest earning
assets:
|
|
|
|
|
Loans and loans held
for sale, net of unearned income
|
$880,320
|
$874,601
|
$889,702
|
$884,620
|
Short-term investment
in money market funds
|
11,150
|
8,245
|
6,634
|
6,804
|
Deposits with
banks
|
1,018
|
1,019
|
1,023
|
1,024
|
Total investment
securities
|
192,467
|
196,797
|
185,131
|
181,628
|
Total interest
earning assets
|
1,084,955
|
1,080,662
|
1,082,490
|
1,074,076
|
|
|
|
|
|
Non-interest earning
assets:
|
|
|
|
|
Cash and due from
banks
|
19,803
|
20,356
|
24,078
|
22,598
|
Premises and
equipment
|
18,881
|
17,663
|
12,283
|
12,417
|
Other
assets
|
65,545
|
63,628
|
61,860
|
62,215
|
Allowance for loan
losses
|
(8,247)
|
(8,366)
|
(9,636)
|
(9,974)
|
|
|
|
|
|
Total
assets
|
$1,180,937
|
$1,173,943
|
$1,171,075
|
$1,161,332
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
Interest bearing
deposits:
|
|
|
|
|
Interest bearing
demand
|
$174,452
|
$169,125
|
$130,782
|
$131,062
|
Savings
|
97,281
|
97,672
|
98,763
|
98,445
|
Money market
|
231,024
|
235,936
|
251,000
|
251,215
|
Other time
|
330,878
|
323,116
|
301,126
|
296,717
|
Total interest
bearing deposits
|
833,635
|
825,849
|
781,671
|
777,439
|
Borrowings:
|
|
|
|
|
Federal funds purchased
and other short-term borrowings
|
6,053
|
13,944
|
46,898
|
34,297
|
Advances from Federal
Home Loan Bank
|
55,781
|
51,112
|
43,816
|
44,884
|
Guaranteed junior
subordinated deferrable interest debentures
|
13,085
|
13,085
|
13,085
|
13,085
|
Subordinated
debt
|
7,650
|
7,650
|
7,650
|
7,650
|
Lease
liabilities
|
4,122
|
3,238
|
0
|
0
|
Total interest
bearing liabilities
|
920,326
|
914,878
|
893,120
|
877,355
|
|
|
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
Demand
deposits
|
151,096
|
152,197
|
174,632
|
180,056
|
Other
liabilities
|
7,949
|
7,501
|
6,455
|
8,033
|
Shareholders'
equity
|
101,566
|
99,367
|
96,868
|
95,888
|
Total liabilities and
shareholders' equity
|
$1,180,937
|
$1,173,943
|
$1,171,075
|
$1,161,332
|
AMERISERV FINANCIAL,
INC.
|
NASDAQ:
ASRV
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
TANGIBLE COMMON
EQUITY RATIO AND TANGIBLE BOOK VALUE PER SHARE
|
(Dollars in
thousands, except per share and ratio data)
|
(Unaudited)
|
|
The press release
contains certain financial information determined by methods other
than in accordance with generally accepted accounting policies in
the United States (GAAP). These non-GAAP financial measures are
"tangible common equity ratio" and "tangible book value per share."
This non-GAAP disclosure has limitations as an analytical tool and
should not be considered in isolation or as a substitute for
analysis of the Company's results as reported under GAAP, nor is it
necessarily comparable to non-GAAP performance measures that may be
presented by other companies. Our management uses these non-GAAP
measures in its analysis of our performance because it believes
these measures are material and will be used as a measure of our
performance by investors.
|
|
2019
|
|
1QTR
|
2QTR
|
3QTR
|
|
|
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
Total shareholders'
equity
|
$99,061
|
$101,476
|
$102,460
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
Tangible common
equity
|
87,117
|
89,532
|
90,516
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
Total
assets
|
1,167,682
|
1,190,583
|
1,171,426
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
Tangible
assets
|
1,155,738
|
1,178,639
|
1,159,482
|
|
|
|
|
Tangible common
equity ratio
|
7.54%
|
7.60%
|
7.81%
|
|
|
|
|
Total shares
outstanding
|
17,540,676
|
17,384,355
|
17,146,714
|
|
|
|
|
Tangible book value
per share
|
$4.97
|
$5.15
|
$5.28
|
|
|
|
|
2018
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
Total shareholders'
equity
|
$95,810
|
$96,883
|
$97,179
|
$97,977
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
Tangible common
equity
|
83,866
|
84,939
|
85,235
|
86,033
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
Total
assets
|
1,151,160
|
1,180,510
|
1,168,806
|
1,160,680
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
Tangible
assets
|
1,139,216
|
1,168,566
|
1,156,862
|
1,148,736
|
|
|
|
|
|
Tangible common
equity ratio
|
7.36%
|
7.27%
|
7.37%
|
7.49%
|
|
|
|
|
|
Total shares
outstanding
|
18,033,401
|
18,044,692
|
17,767,313
|
17,619,303
|
|
|
|
|
|
Tangible book value
per share
|
$4.65
|
$4.71
|
$4.80
|
$4.88
|
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SOURCE AmeriServ Financial, Inc.