JOHNSTOWN, Pa., April 21, 2020 /PRNewswire/ -- AmeriServ
Financial, Inc. (NASDAQ: ASRV) reported first quarter 2020 net
income of $1,409,000, or $0.08 per diluted common share. This
earnings performance represented a $469,000, or 25.0%, decrease from the first
quarter of 2019 when net income totaled $1,878,000, or $0.11 per diluted common share. The
following table highlights the Company's financial performance for
the quarters ended March 31, 2020 and
2019:
|
First
Quarter 2020
|
First
Quarter
2019
|
|
$ Change
|
% Change
|
|
|
|
|
|
|
Net income
|
$1,409,000
|
$1,878,000
|
|
($469,000)
|
(25.0%)
|
Diluted earnings
per
share
|
$ 0.08
|
$ 0.11
|
|
($0.03)
|
(27.3%)
|
Jeffrey A. Stopko, President and
Chief Executive Officer, commented on the 2020 first quarter
financial results: "AmeriServ Financial Inc. reported sound
earnings in the first quarter of 2020 while taking the necessary
actions to begin to position our Company for the economic
uncertainty created by the coronavirus pandemic. We are
entering the second quarter of 2020 with strong liquidity, good
capital and an increased allowance for loan losses. However,
I am most proud of how the AmeriServ team has stepped up and worked
tirelessly with customers to provide them with resources to address
the financial challenges that they are experiencing as a result of
the pandemic. Specifically, in regards to the Paycheck
Protection Program (PPP), we have received approval from the Small
Business Administration (SBA) for more than 250 loans totaling over
$43 million which will fund in the
second quarter and provide meaningful financial support to the
small businesses in the communities in which we operate. We have
also prudently executed numerous loan modifications and payment
deferrals for our existing loan customers which will give them some
financial flexibility during a period in which their business has
been negatively impacted by the shutdown of the economy."
The Company's net interest income in the first quarter of 2020
increased by $94,000, or 1.1%, from
the prior year's first quarter. The Company's net interest
margin of 3.21% for the first quarter of 2020 was three basis
points lower than the net interest margin of 3.24% for the first
quarter of 2019. The change in the U.S. Treasury yield curve
between years impacted the Company's net interest margin. The
overall U.S. Treasury yield curve shifted downward since last year
while the shape of the curve remained relatively flat,
demonstrating inversion in certain segments at various times during
the first quarter of 2020. Late in the quarter, the outbreak
of the COVID-19 pandemic caused the yield curve to move down
further. Correspondingly, the Federal Reserve's actions to
lower the fed funds rate by 150 basis points in March, caused the
short end of the yield curve to decrease and result in the curve
exhibiting a more normal steeper shape. Total earning assets
increased in the first quarter of 2020 and partially offset the
unfavorable impact that the lower level of national interest rates
had on total interest income. The increase in total average
earning assets was due to growth in total loans and short-term
investments while total investment securities decreased.
Interest bearing deposits increased and resulted in less reliance
on higher cost borrowed funds. Effective management of our
funding costs along with the downward repricing of certain interest
bearing liabilities tied to market indexes resulted in total
interest expense decreasing between years. The decrease to
total interest expense more than offset the decrease in total
interest income resulting in net interest income increasing between
years.
Total loans averaged $877 million
in the first quarter of 2020 which was $16.9
million, or 2.0%, higher than the $860 million average for the first quarter of
2019. The impact from the strong level of loan production in
2019 was still evident in the increased total loan portfolio
average balance during the first quarter of 2020. Also,
residential mortgage loan production in the first quarter of 2020
nearly tripled the level of production experienced during the first
quarter of 2019 due to the significantly lower level of national
interest rates. However, loan payoff activity exceeded total
new loan originations in the first quarter of 2020 resulting in a
$10 million decline in the total loan
portfolio balance since December 31,
2019. Even though total average loans increased compared to
the same period last year, loan interest and fee income decreased
by $86,000, or 0.8%, between the
first quarter of 2020 and last year's first quarter. The
lower loan interest income reflects the impact of the lower
interest rate environment as new loans originated at lower yields
and certain loans tied to LIBOR or the prime rate repriced downward
as both of these indices have moved down with the Federal Reserve's
decision to decrease the target federal funds interest rate three
times in the second half of 2019, and more significantly, twice in
March of this year.
Total investment securities averaged $189
million in the first quarter of 2020 which is $9.5 million, or 4.8%, lower than the
$198 million average for the first
quarter of 2019. Investment security purchases in 2020 have been
more selective as the market is less favorable for purchasing
activity given the difference in the position and shape of the U.S.
Treasury yield curve from the prior year. The limited level
of purchases that did occur during the first quarter of 2020
primarily focused on federal agency mortgage backed securities due
to the ongoing cash flow that these securities provide.
Purchases also included high quality corporate and taxable
municipal securities. The Company also responded to the
uncertain economic environment by maintaining a strong liquidity
position as average short-term investments in money market funds
increased by $9.7 million in the
first quarter of 2020. Interest income on investments decreased
between the first quarter of 2020 and the first quarter of 2019 by
$134,000, or 7.7%. Overall,
total interest income decreased by $220,000, or 1.8%, between years.
Total interest expense for the first quarter of 2020 decreased
by $314,000, or 9.0%, when compared
to 2019, due to lower levels of both deposit and borrowing interest
expense. Deposit interest expense in 2020 was lower by
$272,000, or 10.0%. Overall,
the Company's loyal core deposit base continues to be a source of
strength for the Company during periods of market volatility. Total
average deposits grew since the first quarter of 2019 and totaled
$983 million in the first quarter of
2020 which was $13.8 million, or
1.4%, higher than the 2019 first quarter average. This represents
the fourth consecutive quarter that total deposits have averaged in
a relatively narrow range of $980 to
$985 million. Management
prudently and effectively executed several deposit product pricing
decreases given the declining interest rate environment and the
corresponding downward pressure that these falling interest rates
have on the net interest margin. As a result, the Company
experienced deposit cost relief. Specifically, the Company's
average cost of interest bearing deposits declined by 17 basis
points between the first quarter of 2020 and the first quarter of
2019. The Company's loan to deposit ratio averaged 89.2% in
the first quarter of 2020 which we believe indicates that the
Company has ample capacity to grow its loan portfolio and is
positioned well to assist our customers and the community given the
impact that the COVID-19 pandemic is having on the economy.
The Company experienced a $42,000,
or 5.4%, decrease in the interest cost of borrowings in the first
quarter of 2020 when compared to the first quarter of 2019.
The decline is a result of lower total average borrowings between
years combined with the impact from the Federal Reserve's actions
to decrease interest rates since the middle of 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 2020 first quarter average term advance borrowings balance
increased by approximately $8.3
million, or 17.7%, when compared to the first quarter of
2019 as the Company took advantage of yield curve inversions to
prudently extend borrowings. As a result, the combined growth
of average FHLB term advances and total average deposits resulted
in total average overnight borrowed funds decreasing between years
by $12.5 million, or 81.1%. Overall,
the 2020 first quarter average of FHLB borrowed funds was
$58.2 million, which represents a
decrease of $4.2 million, or
6.7%.
The Company recorded a $175,000
provision expense for loan losses in the first quarter of 2020 as
compared to a $400,000 provision
recovery recorded in the first quarter of 2019, which represents a
net unfavorable shift of $575,000. The 2020 provision reflects the
loan growth experienced since last year along with our decision to
strengthen certain qualitative factors within our allowance for
loan losses calculation due to the economic uncertainty caused by
the COVID-19 pandemic. The Company's current asset quality remains
strong as evidenced by low levels of loan delinquency, net loan
charge-offs and non-performing assets. The Company
experienced net loan charge-offs of $120,000, or 0.06% of total loans, in the 2020
first quarter compared to net loan charge-offs of $164,000, or 0.08% of total loans, in the first
quarter of 2019. Non-performing assets totaled $2.2 million, or only 0.26% of total loans, at
March 31, 2020. In summary, the
allowance for loan losses provided 416% coverage of non-performing
assets, and 1.06% of total loans, at March
31, 2020, compared to 397% coverage of non-performing
assets, and 1.05% of total loans, at December 31, 2019.
Total non-interest income in the first quarter of 2020 increased
by $227,000, or 6.3%, from the prior
year's first quarter. Income from residential mortgage loan
sales into the secondary market increased by $175,000, or 282.3%, due to the strong level of
residential mortgage loan production in the first quarter of
2020. The higher level of residential mortgage loan
production also resulted in mortgage related fees increasing by
$82,000, or 186.4%. Wealth
management fees increased by $158,000, or 6.6%, due to an improved equity
market which positively impacted market values for assets under
management in the first two months of the first quarter of
2020. The late first quarter 2020 negative impact to the
equity market from the COVID-19 pandemic and the pandemic's impact
on the Company's wealth management fees will be more evident in
this year's second quarter financial results. Other income
declined by $161,000, or 24.2%, after
the Company recognized a gain in 2019 on the sale of equity shares
from a previous acquisition.
The Company's total non-interest expense in the first quarter of
2020 increased by $340,000, or 3.3%,
when compared to the first quarter of 2019. The increase was
due to higher salaries & benefits expense of $403,000, or 6.4%, and increased occupancy &
equipment costs of $47,000, or
4.6%. These increases more than offset reductions to other
expense of $90,000, or 5.1%, and FDIC
deposit insurance expense of $54,000,
or 67.5%. Within salaries & benefits, pension expense
increased by $188,000, or 53.0%
between years. This significant increase results from the
unfavorable impact that the lower interest rate environment has on
the discount rates that are used to revalue the defined benefit
pension obligation each year. In addition, the higher
salaries & benefits expense is also due to increased health
care costs, greater incentive compensation as a result of increased
residential mortgage loan production, and increased salaries
expense. The higher salaries expense reflects annual merit
increases and the addition of several employees to address
management succession planning. The greater level of
occupancy & equipment expenses since last year resulted largely
from higher depreciation costs. The decrease to other expense
resulted from the Company recognizing a reduction in the unfunded
commitment reserve while the lower FDIC deposit insurance expense
was due to the Company applying the remaining portion of the credit
from the application of the Small Bank Assessment Credit
regulation. Finally, the Company recorded an income tax
expense of $366,000, or an effective
tax rate of 20.6%, in the first quarter of 2020. This
compares to an income tax expense of $491,000, or an effective tax rate of 20.7%, for
the first quarter of 2019.
The Company had total assets of $1.17
billion, shareholders' equity of $100.8 million, a book value of $5.92 per common share and a tangible book
value(1) of $5.22 per
common share at March 31, 2020.
In accordance with the common stock buyback program announced on
April 16, 2019, the Company returned
an additional $151,000 of capital to
its shareholders through the repurchase of 35,962 shares of its
common stock in the first quarter of 2020 to complete this
program. 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 May 18, 2020 to shareholders of record on
May 4, 2020. This cash dividend
represents a 3.6% annualized yield using the April 17, 2020 closing stock price of
$2.76. For the first quarter of
2020, the Company's dividend payout ratio amounted to 31.3%.
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; risks and uncertainties relating to
the duration of the COVID-19 pandemic, and actions that may be
taken by governmental authorities to contain the pandemic or to
treat its impact; 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, 2019.
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
|
March 31,
2020
|
(Dollars in
thousands, except per share and ratio data)
|
(Unaudited)
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
|
|
|
|
|
|
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
|
|
|
|
|
Net income
|
$1,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
PERCENTAGES (annualized):
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.48%
|
|
|
|
|
|
|
|
|
Return on average
equity
|
5.69
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (B)
|
6.46
|
|
|
|
|
|
|
|
|
Net interest
margin
|
3.21
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) as a percentage of
average loans
|
0.06
|
|
|
|
|
|
|
|
|
Loan loss provision
(credit) as a percentage of
average loans
|
0.08
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
84.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
$0.08
|
|
|
|
|
|
|
|
|
Average number of
common shares outstanding
|
17,043
|
|
|
|
|
|
|
|
|
Diluted
|
0.08
|
|
|
|
|
|
|
|
|
Average number of
common shares outstanding
|
17,099
|
|
|
|
|
|
|
|
|
Cash dividends paid
per share
|
$0.025
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
FULL YEAR
2019
|
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
|
AMERISERV FINANCIAL,
INC.
|
NASDAQ:
ASRV
|
--CONTINUED--
|
(Dollars in
thousands, except per share, statistical, and ratio
data)
|
(Unaudited)
|
|
|
2020
|
|
|
|
|
1QTR
|
|
|
|
FINANCIAL
CONDITION DATA AT PERIOD END:
|
|
|
|
|
Assets
|
$1,168,355
|
|
|
|
Short-term
investments/overnight funds
|
6,431
|
|
|
|
Investment
securities
|
184,784
|
|
|
|
Loans and loans held
for sale
|
877,399
|
|
|
|
Allowance for loan
losses
|
9,334
|
|
|
|
Goodwill
|
11,944
|
|
|
|
Deposits
|
957,593
|
|
|
|
FHLB
borrowings
|
74,572
|
|
|
|
Subordinated debt,
net
|
7,517
|
|
|
|
Shareholders'
equity
|
100,840
|
|
|
|
Non-performing
assets
|
2,244
|
|
|
|
Tangible common
equity ratio (B)
|
7.69%
|
|
|
|
Total capital (to
risk weighted assets) ratio
|
13.41
|
|
|
|
PER COMMON
SHARE:
|
|
|
|
|
Book value
|
$5.92
|
|
|
|
Tangible book value
(B)
|
5.22
|
|
|
|
Market value
(C)
|
2.62
|
|
|
|
Wealth management
assets – fair market value (A)
|
$1,983,952
|
|
|
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
Full-time equivalent
employees
|
306
|
|
|
|
Branch
locations
|
16
|
|
|
|
Common shares
outstanding
|
17,043,644
|
|
|
|
|
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
|
|
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)
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
|
|
|
|
|
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$10,332
|
|
|
|
|
|
|
|
|
Interest on
investments
|
1,612
|
|
|
|
|
|
|
|
|
Total Interest
Income
|
11,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Deposits
|
2,458
|
|
|
|
|
|
|
|
|
All
borrowings
|
735
|
|
|
|
|
|
|
|
|
Total Interest
Expense
|
3,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
8,751
|
|
|
|
|
|
|
|
|
Provision (credit)
for loan losses
|
175
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER
PROVISION (CREDIT) FOR LOAN LOSSES
|
8,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
Wealth management
fees
|
2,554
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
286
|
|
|
|
|
|
|
|
|
Net realized gains on
loans held for sale
|
237
|
|
|
|
|
|
|
|
|
Mortgage related
fees
|
126
|
|
|
|
|
|
|
|
|
Net realized gains on
investment securities
|
0
|
|
|
|
|
|
|
|
|
Impairment charge on
other investments
|
0
|
|
|
|
|
|
|
|
|
Bank owned life
insurance
|
125
|
|
|
|
|
|
|
|
|
Other
income
|
504
|
|
|
|
|
|
|
|
|
Total Non-Interest
Income
|
3,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
6,704
|
|
|
|
|
|
|
|
|
Net occupancy
expense
|
671
|
|
|
|
|
|
|
|
|
Equipment
expense
|
395
|
|
|
|
|
|
|
|
|
Professional
fees
|
1,154
|
|
|
|
|
|
|
|
|
FDIC deposit
insurance expense
|
26
|
|
|
|
|
|
|
|
|
Other
expenses
|
1,683
|
|
|
|
|
|
|
|
|
Total Non-Interest
Expense
|
10,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRETAX
INCOME
|
1,775
|
|
|
|
|
|
|
|
|
Income tax
expense
|
366
|
|
|
|
|
|
|
|
|
NET INCOME
|
$1,409
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
|
|
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
FULL YEAR
2019
|
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 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
|
AMERISERV FINANCIAL,
INC.
|
NASDAQ:
ASRV
|
Average Balance Sheet
Data
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
2020
|
|
2019
|
|
|
1QTR
|
|
1QTR
|
|
Interest earning
assets:
|
|
|
|
|
Loans and loans held
for sale, net of unearned income
|
$877,097
|
|
$860,169
|
|
Short-term investment
in money market funds
|
17,512
|
|
7,773
|
|
Deposits with
banks
|
1,015
|
|
1,020
|
|
Total investment
securities
|
188,880
|
|
198,364
|
|
Total interest
earning assets
|
1,084,504
|
|
1,067,326
|
|
|
|
|
|
|
Non-interest earning
assets:
|
|
|
|
|
Cash and due from
banks
|
19,087
|
|
21,899
|
|
Premises and
equipment
|
18,593
|
|
15,312
|
|
Other
assets
|
65,146
|
|
62,081
|
|
Allowance for loan
losses
|
(9,317)
|
|
(8,665)
|
|
|
|
|
|
|
Total
assets
|
$1,178,013
|
|
$1,157,953
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
Interest bearing
deposits:
|
|
|
|
|
Interest bearing
demand
|
$167,066
|
|
$163,893
|
|
Savings
|
97,166
|
|
97,851
|
|
Money market
|
229,838
|
|
241,727
|
|
Other time
|
341,948
|
|
315,389
|
|
Total interest
bearing deposits
|
836,018
|
|
818,860
|
|
Borrowings:
|
|
|
|
|
Federal funds purchased
and other short-term borrowings
|
2,908
|
|
15,413
|
|
Advances from Federal
Home Loan Bank
|
55,292
|
|
46,984
|
|
Guaranteed junior
subordinated deferrable interest debentures
|
13,085
|
|
13,085
|
|
Subordinated
debt
|
7,650
|
|
7,650
|
|
Lease
liabilities
|
3,993
|
|
1,408
|
|
Total interest
bearing liabilities
|
918,946
|
|
903,400
|
|
|
|
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
Demand
deposits
|
146,840
|
|
150,246
|
|
Other
liabilities
|
12,615
|
|
7,141
|
|
Shareholders'
equity
|
99,612
|
|
97,166
|
|
Total liabilities and
shareholders' equity
|
$1,178,013
|
|
$1,157,953
|
|
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.
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$1,409
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
99,612
|
|
|
|
|
Less:
Goodwill
|
11,944
|
|
|
|
|
Average tangible
common equity
|
87,668
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common
equity (annualized)
|
6.46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
|
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
Total shareholders'
equity
|
$100,840
|
|
|
|
|
Less:
Goodwill
|
11,944
|
|
|
|
|
Tangible common
equity
|
88,896
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
|
Total
assets
|
1,168,355
|
|
|
|
|
Less:
Goodwill
|
11,944
|
|
|
|
|
Tangible
assets
|
1,156,411
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
7.69%
|
|
|
|
|
|
|
|
|
|
|
Total shares
outstanding
|
17,043,644
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per share
|
$5.22
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
FULL YEAR
2019
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/ameriserv-financial-reports-2020-first-quarter-earnings-and-announces-quarterly-common-stock-cash-dividend-301043818.html
SOURCE AmeriServ Financial, Inc.