JOHNSTOWN, Pa., Jan. 21, 2020 /PRNewswire/ -- AmeriServ
Financial, Inc. (NASDAQ: ASRV) reported fourth quarter 2019 net
income of $669,000, or $0.04 per diluted common share. This
earnings performance represented a $1,259,000, or 65.3%, decrease from the fourth
quarter of 2018 when net income totaled $1,928,000, or $0.11 per diluted common share. For the
year ended December 31, 2019, the
Company reported net income of $6,028,000, or $0.35 per diluted common share. This
represents an 18.6% decrease in earnings per share from the full
year of 2018 when net income totaled $7,768,000, or $0.43 per diluted common share. The
following table highlights the Company's financial performance for
both the three and twelve month periods ended December 31, 2019 and 2018:
|
Fourth Quarter
2019
|
Fourth Quarter
2018
|
|
Year Ended
December 31, 2019
|
Year Ended
December 31, 2018
|
|
|
|
|
|
|
Net income
|
$669,000
|
$1,928,000
|
|
$6,028,000
|
$7,768,000
|
Diluted earnings per
share
|
$ 0.04
|
$ 0.11
|
|
$ 0.35
|
$ 0.43
|
Jeffrey A. Stopko, President and
Chief Executive Officer, commented on the 2019 financial results:
"Overall, 2019 was a successful year for AmeriServ
Financial, Inc. despite the decline
in fourth quarter 2019 earnings which was caused by an increased
loan loss provision primarily related to one large commercial loan
and an impairment charge recognized on a CRA related investment.
Both of these items are discussed later in this release. I
was encouraged that our net interest margin demonstrated
improvement in the fourth quarter of 2019 due to increased loan
activity and reduced deposit costs. Additionally, our sizable
wealth management company is well positioned for revenue growth in
2020 with the equity markets reaching record highs to close out
2019. Finally, as a result of our strategic focus on active
capital management, we were able to return approximately 70% of our
2019 earnings to our shareholders through accretive common stock
buybacks and an increased cash dividend."
The Company's net interest income in the fourth quarter of 2019
increased by $181,000, or 2.1%, from
the prior year's fourth quarter and, for the full year of 2019,
decreased by $52,000, or 0.1%, when
compared to the full year of 2018. The Company's net interest
margin of 3.26% for the fourth quarter of 2019 and 3.29% for the
full year was 4 basis points higher than the fourth quarter of 2018
and 2 basis points lower than the full year of 2018. The
improvement in the net interest margin during the fourth quarter of
2019 is attributed to an increase in average total loans as well as
a higher level of loan fee revenue. These favorable items
more than offset the unfavorable impact from the lower interest
rate environment in the economy as well as a decrease in the
balance of total average securities during the quarter.
Overall, our net interest margin performance was challenged
throughout 2019 as the U.S. Treasury Yield Curve shifted downward,
flattened and became inverted in certain segments, at various times
during the year. The lower interest rate environment along
with a lower full year average total loan portfolio balance
resulted in the modest year over year unfavorable comparison for
net interest income. Positively impacting net interest income
during 2019 was a favorable shift experienced in the mix of total
average interest bearing liabilities as the amount of total
interest bearing deposits increased and resulted in less reliance
on higher cost borrowings to fund interest earning
assets.
Total loans averaged $877 million
in the fourth quarter of 2019 which is $3.8
million, or 0.4%, higher than the $873 million average for the fourth quarter of
2018. Total loans averaged $875
million for the full year of 2019 which is $6.6 million, or 0.7%, lower than the 2018 full
year average. Overall, total loan originations in 2019
exceeded the prior year's level by $50
million and also exceeded another strong level of loan
payoffs in 2019, which resulted in the favorable quarterly average
comparison between 2019 and 2018. However, because of the
high level of loan payoffs received late in 2018, the full year
average comparison between years is unfavorable. Loan
pipelines remained strong throughout 2019. Loan interest
income increased by $1.9 million, or
4.6%, between the full year of 2019 and the full year of
2018. The higher loan interest income primarily reflects the
Federal Reserve increasing the 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
increases in 2018. Certain floating rate loans, however, did
reprice down in the second half of 2019 as the Federal Reserve
reduced the federal funds rate by a total of 75 basis points in the
second half of 2019. Also, included in the favorable year
over year loan interest income increase was a higher level of loan
fee income by $325,000, due primarily
to prepayment fees collected on certain early loan pay-offs.
Total investment securities averaged $194
million for the full year of 2019 which is $9.5 million, or 5.1%, higher than the
$185 million average in 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
2019 as the interest rate market was less favorable resulting in
total average securities decreasing in the fourth quarter of 2019
by $7.7 million, or 4.0%, when
compared to the fourth quarter of 2018. Interest income on
investments decreased between the fourth quarter of 2019 and the
fourth quarter of 2018 by $26,000, or
1.6%, but increased for the full year of 2019 from 2018 by
$768,000, or 12.7%. Overall,
total interest income increased by $2.7
million, or 5.7%, between years.
Total interest expense for the twelve months of 2019 increased
by $2.7 million, or 23.5%, when
compared to 2018, due to higher levels of deposit interest expense
which more than offset a slight decrease to borrowings interest
expense. Deposit interest expense in 2019 was higher by
$2.7 million, or 32.5%, for the full
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
experience deposit pricing relief during the third and fourth
quarters of 2019 because of the Federal Reserve easing interest
rates late in July, September and October of 2019.
Specifically, the Company's cost of interest bearing deposits
declined by 10 basis points between the third and fourth quarters
of 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 grew during the year and
averaged $980 million for the full
year of 2019, which was $19.9
million, or 2.1%, higher than the 2018 full year average.
The Company's loan to deposit ratio averaged 89.1% in the fourth
quarter of 2019, which we believe indicates that the Company has
ample capacity to grow its loan portfolio.
The Company experienced a $21,000,
or 0.7%, decrease in the interest cost of borrowings for the full
year of 2019. The decline is a result of the lower total
average borrowings balance between years combined with the impact
from the Federal Reserve's action to decrease interest rates three
times in 2019 and the impact that these rate decreases had on the
cost of overnight borrowed funds and the replacement of matured
FHLB term advances. The total full year average term advance
borrowings balance increased by approximately $7.3 million, or 16.3%, when compared to the full
year 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.
Overall, the 2019 full year average of FHLB borrowed funds was
$63.4 million, which represented a
decrease of $14.7 million, or 18.8%,
due to the increase in total average deposits.
The Company recorded a $975,000
provision for loan losses in the fourth quarter of 2019 as compared
to a $700,000 provision recovery in
the fourth quarter of 2018. For the full year of 2019, the
Company recorded an $800,000
provision expense for loan losses compared to a $600,000 provision recovery recorded for the full
year of 2018 which resulted in a net unfavorable shift of
$1.4 million. The
rating downgrade of a $6.5 million
performing commercial loan to substandard as a result of the
unexpected death of a borrower caused a $675,000 increase in fourth quarter 2019
provision expense. While the Company currently believes that
repayment should continue as agreed, this rating action was prudent
due to the inherent uncertainties associated with a large estate
liquidation. For the full year of 2019, overall asset quality
remained good as evidenced by low levels of loan delinquency, net
loan charge-offs and non-performing assets. Specifically, the
Company experienced net loan charge-offs of only $192,000, or 0.02% of total loans, in 2019
compared to net loan charge-offs of $943,000, or 0.11% of total loans, in 2018.
Overall, nonperforming assets totaled $2.3
million, or 0.26% of total loans, at December 31, 2019. In summary, the
allowance for loan losses provided 397% coverage of non-performing
assets, and 1.05% of total loans, at December 31, 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 fourth quarter of 2019
increased by $94,000, or 2.8%, from
the prior year's fourth quarter, and increased for the full year by
$549,000, or 3.9%. In the
fourth quarter of 2019, the Company recognized a $500,000 impairment charge on a Community
Reinvestment Act (CRA) related investment. The Small Business
Administration (SBA) recently gave formal notice that the managing
company of this particular fund was placed into receivership which
caused us to write off the full investment and no further action or
loss will occur. It should be noted that the Company only has
one other similar CRA related investment that totals $100,000 that has been performing as
expected. Also, for the fourth quarter of 2019, no security
sale gains or losses were recognized after a $291,000 net loss was recognized during the
fourth quarter of 2018. The 2018 net loss resulted from the
Company selling certain low yielding securities and reinvesting in
securities to position the Company for an increased future return
from the investment securities portfolio. Net realized gains
on loans held for sale are $195,000,
or 203.1%, higher in the fourth quarter of 2019 compared to the
fourth quarter of 2018 due to increased residential mortgage loan
sales in the secondary market as the lower interest rate
environment in the second half of 2019 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 $53,000, or 171.0%. Wealth management fees
increased by $57,000, or 2.3%, in the
fourth quarter as the Company benefitted from a continuing increase
in market values for assets under management which also contributed
to a $71,000, or 0.7%, favorable
annual comparison for this important source of fee revenue which
hit record levels in 2019. Also for the full year, similar
comparisons for the same line items resulted in the favorable
variance when comparing 2019 to 2018. Net realized gains on
loans held for sale increased by $376,000, or 76.9%. In addition to
increased residential mortgage originations, the full year
favorable comparison in 2019 was also due to the sale of the
guaranteed portion of a SBA loan that resulted in a $197,000 gain. The higher level of
residential mortgage loan production resulted in mortgage related
fees increasing by $106,000, or
54.1%. Additionally, the Company recognized a net investment
security sale gain of $118,000 in
2019 compared to a $439,000 net loss
in 2018 as the opportunity existed to capture gains on certain
securities that demonstrated higher than typical market
appreciation in this low interest rate environment. The 2018
net loss resulted from the Company repositioning a portion of the
investment portfolio in 2018 for stronger future returns.
Other income increased by $103,000,
or 4.4%, due to higher letter of credit fees and increased revenue
from check supply sales due to a favorable vendor contract
renegotiation. These favorable items more than offset a
$149,000, or 10.5%, decrease in
service charges on deposit accounts due to reduced overdraft
fees.
The Company's total non-interest expense in the fourth quarter
of 2019 increased by $189,000, or
1.8%, when compared to the fourth quarter of 2018, and increased
for the full year by $942,000, or
2.3%, when compared to 2018. The increase in the fourth
quarter of 2019 was due to a higher level of salaries &
benefits expense by $224,000, or
3.6%, a greater level of other expense by $76,000, or 4.2%, and higher equipment related
costs by $69,000, or 19.2%, due to
additional depreciation and maintenance costs. These
increases more than offset a reduction to FDIC deposit insurance
expense by $160,000, or 160.0% and
professional fees by $42,000, or
3.3%. Within salaries & benefits, higher salaries expense
was due to annual merit increases, the addition of several
employees to address management succession planning and four
additional employees at our new financial banking center in
Hagerstown, Maryland.
Increased pension and health care costs also contributed to the
higher employee costs between quarters. The increase to other
expense is due to additional expense for the unfunded commitment
reserve as a result of increased loan approvals in 2019 as well as
increased investment in technology as evidenced by higher website
costs and additional telecommunications expense. The Company
recognized a $60,000 FDIC deposit
insurance expense credit in the fourth 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 full year of 2019 and for similar reasons as the quarterly
variance, higher expenses included salaries & benefits by
$1,071,000, or 4.4%, other expense by
$401,000, or 5.7%, and equipment
costs by $46,000, or 3.1%.
Partially offsetting these unfavorable comparisons are lower FDIC
deposit insurance expense by $457,000, or 82.0%, and lower professional fees
by $154,000, or 3.1%, due to lower
legal fees and other professional fees.
The Company recorded an income tax expense of $169,000, or an effective tax rate of 20.2%, in
the fourth quarter of 2019. This compares to an income tax
expense of $499,000, or an effective
tax rate of 20.6%, for the fourth quarter of 2018. For the
full year of 2019, the Company recorded income tax expense of
$1,572,000, or an effective tax rate
of 20.7%, compared to income tax expense of $1,677,000 in 2018, or an effective tax rate of
17.8%. The lower effective tax rate for the full year 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.
The Company had total assets of $1.17
billion, shareholders' equity of $98.6 million, a book value of $5.78 per common share and a tangible book
value(1) of $5.08 per
common share at December 31,
2019. Although demonstrating an increase since the fourth
quarter of 2018, both the book value and tangible book value per
common share did decline between the third and fourth quarter of
2019 as the annual reevaluation of the Company's pension obligation
negatively impacted capital due to an approximate 1% decline in the
discount rate between years. The Company's pension plan
continues to be well funded. In accordance with previously
announced common stock buyback programs, the Company returned an
additional $2.6 million of capital to
its shareholders through the accretive repurchase of 602,349 shares
of its common stock for the full year of 2019. When including
the increased cash dividend payments on our common stock, total
capital returned to our shareholders approximated 70% of net income
in 2019. The Company continued to maintain strong capital
ratios that exceed the regulatory defined well capitalized
status.
QUARTERLY COMMON STOCK CASH DIVIDEND
The Company's Board of Directors declared a $0.025 per share quarterly common stock cash
dividend. The cash dividend is payable February 18, 2020 to shareholders of record on
February 3, 2020. This cash
dividend represents a 2.40% annualized yield using the January 16, 2020 closing stock price of
$4.17. For the full year 2019,
the Company's dividend payout ratio amounted to 27.1%.
Forward-Looking Statements
This press release contains forward-looking statements as
defined in the Securities Exchange Act of 1934 and is subject to
the safe harbors created therein. Such statements are not
historical facts and include expressions about management's
confidence and strategies and management's current views and
expectations about new and existing programs and products,
relationships, opportunities, technology, market conditions,
dividend program and future payment obligations. These
statements may be identified by such forward-looking terminology as
"continuing," "expect," "look," "believe," "anticipate," "may,"
"will," "should," "projects," "strategy," or similar statements.
Actual results may differ materially from such forward-looking
statements, and no reliance should be placed on any forward-looking
statement. Factors that may cause results to differ materially from
such forward-looking statements include, but are not limited to,
unanticipated changes in the financial markets and the direction of
interest rates; volatility in earnings due to certain financial
assets and liabilities held at fair value; competition levels; loan
and investment prepayments differing from our assumptions;
insufficient allowance for credit losses; a higher level of loan
charge-offs and delinquencies than anticipated; material adverse
changes in our operations or earnings; a decline in the economy in
our market areas; changes in relationships with major customers;
changes in effective income tax rates; higher or lower cash flow
levels than anticipated; inability to hire or retain qualified
employees; a decline in the levels of deposits or loss of alternate
funding sources; a decrease in loan origination volume or an
inability to close loans currently in the pipeline; changes in laws
and regulations; adoption, interpretation and implementation of
accounting pronouncements; operational risks, including the risk of
fraud by employees, customers or outsiders; unanticipated effects
of our new banking platform; and the inability to successfully
implement or expand new lines of business or new products and
services. 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,
2018. 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.
(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
December 31,
2019
(Dollars in
thousands, except per share and ratio data)
(Unaudited)
|
|
|
|
|
|
|
|
2019
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
YEAR
TO DATE
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
|
Net income
|
$1,878
|
$1,792
|
$1,689
|
$669
|
$6,028
|
|
|
|
|
|
|
PERFORMANCE
PERCENTAGES (annualized):
|
|
|
|
|
|
Return on average
assets
|
0.66%
|
0.61%
|
0.57%
|
0.23%
|
0.51%
|
Return on average
equity
|
7.84
|
7.24
|
6.60
|
2.59
|
6.02
|
Return on average
tangible common equity (B)
|
8.94
|
8.22
|
7.48
|
2.93
|
6.84
|
Net interest
margin
|
3.24
|
3.30
|
3.18
|
3.26
|
3.29
|
Net charge-offs
(recoveries) as a percentage of average loans
|
0.08
|
0.00
|
(0.01)
|
0.02
|
0.02
|
Loan loss provision
(credit) as a percentage of
average loans
|
(0.19)
|
0.00
|
0.10
|
0.44
|
0.09
|
Efficiency
ratio
|
83.90
|
82.18
|
81.65
|
85.30
|
83.23
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
Basic
|
$0.11
|
$0.10
|
$0.10
|
$0.04
|
$0.35
|
Average number of
common shares outstanding
|
17,578
|
17,476
|
17,278
|
17,111
|
17,359
|
Diluted
|
0.11
|
0.10
|
0.10
|
0.04
|
0.35
|
Average number of
common shares outstanding
|
17,664
|
17,560
|
17,360
|
17,193
|
17,440
|
Cash dividends paid
per share
|
$0.020
|
$0.025
|
$0.025
|
$0.025
|
$0.095
|
|
|
|
|
|
|
|
2018
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
YEAR
TO DATE
|
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
|
Net income
|
$1,767
|
$1,744
|
$2,329
|
$1,928
|
$7,768
|
|
|
|
|
|
|
PERFORMANCE
PERCENTAGES (annualized):
|
|
|
|
|
|
Return on average
assets
|
0.62%
|
0.60%
|
0.79%
|
0.66%
|
0.67%
|
Return on average
equity
|
7.55
|
7.30
|
9.54
|
7.89
|
8.08
|
Return on average
tangible common equity (B)
|
8.63
|
8.34
|
10.88
|
9.00
|
9.22
|
Net interest
margin
|
3.29
|
3.28
|
3.31
|
3.22
|
3.31
|
Net charge-offs
(recoveries) as a percentage of average loans
|
0.15
|
0.21
|
0.04
|
0.03
|
0.11
|
Loan loss provision
(credit) as a percentage of
average loans
|
0.02
|
0.02
|
0.00
|
(0.32)
|
(0.07)
|
Efficiency
ratio
|
81.61
|
82.04
|
79.50
|
85.69
|
82.17
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
Basic
|
$0.10
|
$0.10
|
$0.13
|
$0.11
|
$0.43
|
Average number of
common shares outstanding
|
18,079
|
18,038
|
17,924
|
17,697
|
17,933
|
Diluted
|
0.10
|
0.10
|
0.13
|
0.11
|
0.43
|
Average number of
common shares outstanding
|
18,181
|
18,140
|
18,036
|
17,801
|
18,037
|
Cash dividends paid
per share
|
$0.015
|
$0.020
|
$0.020
|
$0.020
|
$0.075
|
AMERISERV FINANCIAL,
INC.
NASDAQ:
ASRV
--CONTINUED--
(Dollars in
thousands, except per share, statistical, and ratio
data)
(Unaudited)
|
|
|
|
|
|
|
2019
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
FINANCIAL
CONDITION DATA AT PERIOD END:
|
|
|
|
|
Assets
|
$1,167,682
|
$1,190,583
|
$1,171,426
|
$1,171,184
|
Short-term
investments/overnight funds
|
7,996
|
6,532
|
6,039
|
6,526
|
Investment
securities
|
194,553
|
191,168
|
182,699
|
181,685
|
Loans and loans held
for sale
|
863,134
|
890,081
|
875,082
|
887,574
|
Allowance for loan
losses
|
8,107
|
8,102
|
8,345
|
9,279
|
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
Deposits
|
957,779
|
968,480
|
969,989
|
960,513
|
FHLB
borrowings
|
79,483
|
88,314
|
66,905
|
76,080
|
Subordinated debt,
net
|
7,493
|
7,499
|
7,505
|
7,511
|
Shareholders'
equity
|
99,061
|
101,476
|
102,460
|
98,614
|
Non-performing
assets
|
1,168
|
1,681
|
1,957
|
2,339
|
Tangible common
equity ratio (B)
|
7.54%
|
7.60%
|
7.81%
|
7.48%
|
Total capital (to
risk weighted assets) ratio
|
13.37
|
13.14
|
13.33
|
13.49
|
PER COMMON
SHARE:
|
|
|
|
|
Book value
|
$5.65
|
$5.84
|
$5.98
|
$5.78
|
Tangible book value
(B)
|
4.97
|
5.15
|
5.28
|
5.08
|
Market value
(C)
|
4.02
|
4.15
|
4.14
|
4.20
|
Wealth management
assets – fair market value (A)
|
$2,229,860
|
$2,288,576
|
$2,142,513
|
$2,237,898
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
Full-time equivalent
employees
|
309
|
309
|
308
|
309
|
Branch
locations
|
16
|
16
|
16
|
16
|
Common shares
outstanding
|
17,540,676
|
17,384,355
|
17,146,714
|
17,057,871
|
|
|
|
|
|
|
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
(C)
|
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.
|
(C)
|
Based on closing
price reported by the principal market on which the security is
traded last business day of the corresponding reporting
period.
|
AMERISERV FINANCIAL,
INC.
NASDAQ:
ASRV
CONSOLIDATED
STATEMENT OF INCOME
(Dollars in
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
2019
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
YEAR TO
DATE
|
INTEREST
INCOME
|
|
|
|
|
|
Interest and fees on
loans
|
$10,418
|
$10,994
|
$10,737
|
$10,784
|
$42,933
|
Interest on
investments
|
1,746
|
1,771
|
1,696
|
1,621
|
6,834
|
Total Interest
Income
|
12,164
|
12,765
|
12,433
|
12,405
|
49,767
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
Deposits
|
2,730
|
2,867
|
2,895
|
2,697
|
11,189
|
All
borrowings
|
777
|
837
|
774
|
748
|
3,136
|
Total Interest
Expense
|
3,507
|
3,704
|
3,669
|
3,445
|
14,325
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
8,657
|
9,061
|
8,764
|
8,960
|
35,442
|
Provision (credit)
for loan losses
|
(400)
|
0
|
225
|
975
|
800
|
NET INTEREST INCOME
AFTER
PROVISION (CREDIT) FOR LOAN LOSSES
|
9,057
|
9,061
|
8,539
|
7,985
|
34,642
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
Wealth management
fees
|
2,396
|
2,419
|
2,431
|
2,484
|
9,730
|
Service charges on
deposit accounts
|
310
|
317
|
321
|
323
|
1,271
|
Net realized gains on
loans held for sale
|
62
|
107
|
405
|
291
|
865
|
Mortgage related
fees
|
44
|
77
|
97
|
84
|
302
|
Net realized gains
(losses) on investment securities
|
0
|
30
|
88
|
0
|
118
|
Impairment charge on
other investments
|
0
|
0
|
0
|
(500)
|
(500)
|
Bank owned life
insurance
|
128
|
129
|
131
|
133
|
521
|
Other
income
|
665
|
578
|
622
|
601
|
2,466
|
Total Non-Interest
Income
|
3,605
|
3,657
|
4,095
|
3,416
|
14,773
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
Salaries and employee
benefits
|
6,301
|
6,348
|
6,324
|
6,456
|
25,429
|
Net occupancy
expense
|
658
|
622
|
599
|
618
|
2,497
|
Equipment
expense
|
361
|
387
|
333
|
429
|
1,510
|
Professional
fees
|
1,120
|
1,249
|
1,276
|
1,240
|
4,885
|
FDIC deposit
insurance expense
|
80
|
80
|
0
|
(60)
|
100
|
Other
expenses
|
1,773
|
1,770
|
1,971
|
1,880
|
7,394
|
Total Non-Interest
Expense
|
10,293
|
10,456
|
10,503
|
10,563
|
41,815
|
|
|
|
|
|
|
PRETAX
INCOME
|
2,369
|
2,262
|
2,131
|
838
|
7,600
|
Income tax
expense
|
491
|
470
|
442
|
169
|
1,572
|
NET INCOME
|
$1,878
|
$1,792
|
$1,689
|
$669
|
$6,028
|
|
|
|
|
|
|
|
2018
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
YEAR
TO DATE
|
INTEREST
INCOME
|
|
|
|
|
|
Interest and fees on
loans
|
$9,818
|
$10,125
|
$10,607
|
$10,478
|
$41,028
|
Interest on
investments
|
1,399
|
1,478
|
1,542
|
1,647
|
6,066
|
Total Interest
Income
|
11,217
|
11,603
|
12,149
|
12,125
|
47,094
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
Deposits
|
1,781
|
1,973
|
2,164
|
2,525
|
8,443
|
All
borrowings
|
688
|
772
|
876
|
821
|
3,157
|
Total Interest
Expense
|
2,469
|
2,745
|
3,040
|
3,346
|
11,600
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
8,748
|
8,858
|
9,109
|
8,779
|
35,494
|
Provision (credit)
for loan losses
|
50
|
50
|
0
|
(700)
|
(600)
|
NET INTEREST INCOME
AFTER
PROVISION (CREDIT) FOR LOAN LOSSES
|
8,698
|
8,808
|
9,109
|
9,479
|
36,094
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
Wealth management
fees
|
2,426
|
2,447
|
2,359
|
2,427
|
9,659
|
Service charges on
deposit accounts
|
383
|
357
|
326
|
354
|
1,420
|
Net realized gains on
loans held for sale
|
98
|
119
|
176
|
96
|
489
|
Mortgage related
fees
|
39
|
72
|
54
|
31
|
196
|
Net realized gains
(losses) on investment securities
|
(148)
|
0
|
0
|
(291)
|
(439)
|
Impairment charge on
other investments
|
0
|
0
|
0
|
0
|
0
|
Bank owned life
insurance
|
132
|
133
|
135
|
136
|
536
|
Other
income
|
705
|
553
|
536
|
569
|
2,363
|
Total Non-Interest
Income
|
3,635
|
3,681
|
3,586
|
3,322
|
14,224
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
Salaries and employee
benefits
|
6,093
|
6,218
|
5,815
|
6,232
|
24,358
|
Net occupancy
expense
|
670
|
611
|
585
|
596
|
2,462
|
Equipment
expense
|
391
|
378
|
335
|
360
|
1,464
|
Professional
fees
|
1,184
|
1,252
|
1,321
|
1,282
|
5,039
|
FDIC deposit
insurance expense
|
162
|
155
|
140
|
100
|
557
|
Other
expenses
|
1,611
|
1,678
|
1,900
|
1,804
|
6,993
|
Total Non-Interest
Expense
|
10,111
|
10,292
|
10,096
|
10,374
|
40,873
|
|
|
|
|
|
|
PRETAX
INCOME
|
2,222
|
2,197
|
2,599
|
2,427
|
9,445
|
Income tax
expense
|
455
|
453
|
270
|
499
|
1,677
|
NET INCOME
|
$1,767
|
$1,744
|
$2,329
|
$1,928
|
$7,768
|
AMERISERV FINANCIAL,
INC.
NASDAQ:
ASRV
Average Balance Sheet
Data
(Dollars in
thousands)
(Unaudited)
|
|
|
|
|
2019
|
2018
|
|
4QTR
|
TWELVE
MONTHS
|
4QTR
|
TWELVE
MONTHS
|
Interest earning
assets:
|
|
|
|
|
Loans and loans held
for sale, net of unearned income
|
$876,988
|
$875,198
|
$873,206
|
$881,767
|
Short-term investment
in money market funds
|
17,471
|
10,552
|
6,488
|
6,725
|
Deposits with
banks
|
1,015
|
1,018
|
1,020
|
1,023
|
Total investment
securities
|
185,652
|
194,011
|
193,315
|
184,550
|
Total interest
earning assets
|
1,081,126
|
1,080,779
|
1,074,029
|
1,074,065
|
|
|
|
|
|
Non-interest earning
assets:
|
|
|
|
|
Cash and due from
banks
|
19,888
|
20,239
|
24,476
|
23,067
|
Premises and
equipment
|
18,725
|
17,928
|
12,667
|
12,480
|
Other
assets
|
65,451
|
64,083
|
61,514
|
62,040
|
Allowance for loan
losses
|
(8,518)
|
(8,404)
|
(9,540)
|
(9,866)
|
|
|
|
|
|
Total
assets
|
$1,176,672
|
$1,174,625
|
$1,163,146
|
$1,161,786
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
Interest bearing
deposits:
|
|
|
|
|
Interest bearing
demand
|
$173,933
|
$170,326
|
$161,101
|
$138,572
|
Savings
|
94,117
|
96,783
|
96,806
|
98,035
|
Money market
|
229,740
|
234,387
|
244,827
|
249,618
|
Other time
|
338,117
|
326,867
|
307,414
|
299,391
|
Total interest
bearing deposits
|
835,907
|
828,363
|
810,148
|
785,616
|
Borrowings:
|
|
|
|
|
Federal funds purchased
and other short-term borrowings
|
2,521
|
11,088
|
29,615
|
33,126
|
Advances from Federal
Home Loan Bank
|
55,901
|
52,309
|
45,241
|
44,974
|
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
|
4,059
|
3,444
|
0
|
0
|
Total interest
bearing liabilities
|
919,123
|
915,939
|
905,739
|
884,451
|
|
|
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
Demand
deposits
|
148,576
|
151,292
|
156,262
|
174,108
|
Other
liabilities
|
6,582
|
7,271
|
4,209
|
7,077
|
Shareholders'
equity
|
102,391
|
100,123
|
96,936
|
96,150
|
Total liabilities and
shareholders' equity
|
$1,176,672
|
$1,174,625
|
$1,163,146
|
$1,161,786
|
AMERISERV FINANCIAL, INC.
NASDAQ: ASRV
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RETURN ON AVERAGE TANGIBLE COMMON EQUITY, 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 "return on average tangible common equity", "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
|
4QTR
|
YEAR
TO DATE
|
|
|
|
|
|
|
Net income
|
$1,878
|
$1,792
|
$1,689
|
$669
|
$6,028
|
|
|
|
|
|
|
Average shareholders'
equity
|
97,166
|
99,371
|
101,566
|
102,391
|
100,123
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
11,944
|
Average tangible
common equity
|
85,222
|
87,427
|
89,622
|
90,447
|
88,179
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
8.94%
|
8.22%
|
7.48%
|
2.93%
|
6.84%
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
Total shareholders'
equity
|
$99,061
|
$101,476
|
$102,460
|
$98,614
|
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
|
Tangible common
equity
|
87,117
|
89,532
|
90,516
|
86,670
|
|
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
|
Total
assets
|
1,167,682
|
1,190,583
|
1,171,426
|
1,171,184
|
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
|
Tangible
assets
|
1,155,738
|
1,178,639
|
1,159,482
|
1,159,240
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
7.54%
|
7.60%
|
7.81%
|
7.48%
|
|
|
|
|
|
|
|
Total shares
outstanding
|
17,540,676
|
17,384,355
|
17,146,714
|
17,057,871
|
|
|
|
|
|
|
|
Tangible book value
per share
|
$4.97
|
$5.15
|
$5.28
|
$5.08
|
|
|
|
|
|
|
|
2018
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
YEAR
TO DATE
|
|
|
|
|
|
|
Net income
|
$1,767
|
$1,744
|
$2,329
|
$1,928
|
$7,768
|
|
|
|
|
|
|
Average shareholders'
equity
|
94,956
|
95,840
|
96,868
|
96,936
|
96,150
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
11,944
|
Average tangible
common equity
|
83,012
|
83,896
|
84,924
|
84,992
|
84,206
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
8.63%
|
8.34%
|
10.88%
|
9.00%
|
9.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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multimedia:http://www.prnewswire.com/news-releases/ameriserv-financial-reports-earnings-for-the-fourth-quarter-and-full-year-of-2019-and-announces-quarterly-common-stock-cash-dividend-300989138.html
SOURCE AmeriServ Financial, Inc.