JOHNSTOWN, Pa., July 21, 2020 /PRNewswire/ -- AmeriServ
Financial, Inc. (NASDAQ: ASRV) reported second quarter 2020 net
income of $1,419,000, or $0.08 per diluted common share. This
earnings performance was a $373,000,
or 20.8%, decrease from the second quarter of 2019 when net income
totaled $1,792,000, or $0.10 per diluted common share. For the
six-month period ended June 30, 2020,
the Company reported net income of $2,828,000, or $0.17 per diluted common share. This
represents a 19.1% decrease in earnings per share from the
six-month period of 2019 when net income totaled $3,670,000, or $0.21 per diluted common share. The
following table highlights the Company's financial performance for
both the three and six month periods ended June 30, 2020 and 2019:
|
Second
Quarter 2020
|
Second
Quarter
2019
|
|
Six Months Ended
June 30, 2020
|
Six Months Ended
June 30, 2019
|
|
|
|
|
|
|
Net income
|
$1,419,000
|
$1,792,000
|
|
$2,828,000
|
$3,670,000
|
Diluted earnings
per
share
|
$ 0.08
|
$ 0.10
|
|
$0.17
|
$ 0.21
|
Jeffrey A. Stopko, President and
Chief Executive Officer, commented on the 2020 second quarter
financial results: "AmeriServ Financial Inc. again reported sound
earnings in the second quarter of 2020 while navigating through the
challenges presented by the COVID-19 pandemic and the resultant
economic shutdown. Our community bank customer-focused business
model and conservative risk management posture has served us well
so far in 2020 as our Company has experienced record levels of both
loans and deposits. The decline in earnings between years is
due to our decision to further strengthen our allowance for loan
losses given the economic uncertainty resulting from the
pandemic. Additionally, the diversification of our revenue,
with almost 30% coming from non-interest income sources including a
strong wealth management business and active residential mortgage
operation, is beneficial to our company. Overall, 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 in 2020 as a
result of the pandemic."
The Company's net interest income in the second quarter of 2020
increased by $412,000, or 4.5%, from
the prior year's second quarter and, for the first six months of
2020, increased by $506,000, or 2.9%,
when compared to the first six months of 2019. The Company's
net interest margin of 3.30% for the second quarter of 2020 and
3.26% for the six-month timeframe matched 2019 results for the
quarter and was one basis point lower for the six -month
period. The second quarter of 2020 represented the first full
quarter's impact of the COVID-19 pandemic in the financial
industry. An economic shutdown experienced for the majority
of the second quarter along with a record low interest rate
environment continued to pressure earning asset margins and caused
an increased loan loss provision resulting in a lower earnings
performance for both time periods. The continued pressure on
earning asset margins is offset by a sharply higher level of loan
fees and interest income due to the Company's participation in the
Paycheck Protection Program (PPP), which was created under the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to
provide emergency economic relief to individuals and businesses
impacted by the COVID-19 pandemic. The PPP initiative along
with other government sponsored programs established to stimulate
the economy resulted in the Company experiencing robust growth on
both sides of the balance sheet as total loans and total deposits
are at record levels. Total interest earning assets increased
due to growth in total loans and short-term investments which more
than offset total investment securities decreasing. Both,
non-interest and interest bearing deposits increased resulting 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 the increase to net
interest income for both the second quarter and first six months of
2020.
Total loans reached a record level and averaged $913 million in the second quarter of 2020 which
is $29.2 million, or 3.3%, higher
than the $883 million average for the
second quarter of 2019, while total average loans for the first six
months of 2020 were $23.1 million, or
2.6%, higher than the 2019 six-month level. The growth in
total loans was due primarily to the Company's participation in the
PPP as normal commercial lending activity decreased significantly
due to the economic shutdown. Overall, the Company has
processed 448 PPP loans totaling $67
million to assist small businesses and our community in this
difficult economy. As of June 30,
2020, the Company has recorded a total of $1.0 million of processing fee income and
interest income from PPP lending activity. The Small Business
Administration guarantees 100% of the PPP loans made to eligible
borrowers which minimizes the level of credit risk associated with
the loans. As a result, such loans are assigned a 0% risk
weight for purposes of calculating the Bank's risk-based capital
ratios. In addition to the PPP lending activity, residential
mortgage loan activity is exceptionally strong given the lower
interest rate environment. Through the first six months of
2020, residential mortgage loan production is more than double the
production level achieved through the first six months of 2019 and
very near the level of production that was achieved in the full
year of 2019. The Company is also encouraged that commercial
loan pipelines have recently rebounded and are currently
approaching levels that are similar to where they were prior to the
pandemic. Even though total average loans increased compared
to the same periods last year and loan interest income was enhanced
by the PPP revenue, loan interest revenue decreased by $546,000, or 5.0%, for the quarter and also
declined by $632,000, or 3.0%, for
the six months. The lower loan interest income reflects the
challenges that this record low interest rate environment has
created. New loans are being originated at lower yields and
certain loans tied to LIBOR or the prime rate reprice downward as
both of these indices have moved down with the Federal Reserve's
decision to decrease the target federal funds interest rate by a
total of 225 basis points since June of 2019.
Total investment securities averaged $187
million in the first six months of 2020 which is
$12.4 million, or 6.2%, lower than
the $199 million average for the
first six months of 2019. The Company continues to be
selective this year when purchasing the more typical types of
securities that have been purchased historically as the market is
less favorable given the differences in the position and shape of
the U.S. Treasury yield curve from the prior year. The
Company has been active since March purchasing corporate
securities, particularly subordinated debt issued by other
financial institutions. Subordinated debt offers higher
yields than the typical types of securities in which we invest and
is particularly attractive given the current low interest rate
environment and flat shape of the yield curve. Management
believes it to be prudent to increase our investments in bank
subordinated debt in a gradual and diversified manner, given our
familiarity with the banking industry and the heavily regulated
nature of the industry combined with our intensive due diligence
process.
Our liquidity position is exceptionally strong due to the
significant influx of deposits that resulted from the government
stimulus programs and reduced customer spending activity due to the
shutdown of the economy. As a result, average short-term
investments increased by $31.4
million in the second quarter of 2020 and by $20.6 million for the first six months when
compared to 2019. Therefore, the challenge exists to
profitably deploy this excess in short term assets, which
management has responded by utilizing the commercial paper
market. Overall, interest income on investments decreased
between the first six months of 2020 and first six months of 2019
by $292,000, or 8.3%. Overall
in the first half of 2020, total interest income decreased by
$924,000, or 3.7%, between years.
Total interest expense for the first six months of 2020
decreased by $1.4 million, or 19.8%,
when compared to 2019, due to lower levels of both deposit and
borrowing interest expense. Through six months, deposit
interest expense in 2020 is lower by $1.3
million, or 22.7%. Total deposits grew significantly
during the second quarter of 2020 to reach a record level,
averaging $1.036 billion for the
quarter, which is $55.5 million, or
5.7%, higher than the 2019 second quarter average. This
robust growth between years is the result of consumers' behavior
to: 1.) deposit their PPP funds into deposit accounts, 2.) deposit
government stimulus checks into the bank and 3.) keep higher
balances in their accounts since they are not able to spend as much
as they otherwise would because of the COVID-19 pandemic's impact
to the economy and our community. In addition, the Company's
loyal core deposit base continues to be a source of strength for
the Company during periods of market volatility. Management
prudently and effectively executed several deposit product pricing
decreases given the declining interest rate environment and the
downward pressure that the 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 51 basis points since the
second quarter of 2019 and averaged 0.88% in the second quarter of
2020. Also offsetting a portion of the net interest margin
pressure from the lower national interest rates is a significant
portion of the deposit growth occurring in non-interest bearing
demand deposits. Overall, total deposit cost, including
demand deposits, averaged 0.73% in the second quarter of 2020
compared to 1.17% in the second quarter of 2019. The
Company's loan to deposit ratio averaged 88.1% in the second
quarter of 2020 which we believe indicates that the Company has
ample capacity to grow its loan portfolio and is well positioned to
continue assisting our customers given the impact that the COVID-19
pandemic is having on the economy.
The Company experienced a $160,000, or 9.9%, decrease in the interest cost
of borrowings in the first six months of 2020 when compared to the
first six months 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 and
the impact that these rate decreases have on the cost of overnight
borrowed funds and the replacement of matured FHLB term
advances. The total 2020 second quarter average term advance
borrowings balance increased by approximately $9.2 million, or 18.2%, when compared to the
second quarter of 2019 as the Company took advantage of the lower
yield curve and its flat shape 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 $16.1 million, or 79.2%, for the quarter.
Overall, the 2020 second quarter average of total FHLB borrowed
funds was $64.0 million, which
represents a decrease of $6.9
million, or 9.7%, from the 2019 second quarter.
The Company recorded a $450,000
provision expense for loan losses in the second quarter of 2020 as
compared to a zero provision recorded in the second quarter of
2019. For the first six months of 2020, the Company recorded
a $625,000 provision expense for loan
losses compared to a $400,000
provision recovery recorded in the first six months of 2019, which
represents a net unfavorable shift of $1,025,000. The 2020 provision reflects
management's 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 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
$205,000, or 0.05% of total loans, in
the first half of 2020 compared to net loan charge-offs of
$169,000, or 0.04% of total loans, in
the first half of 2019. Non-performing assets totaled
$3.1 million, or 0.34% of total
loans, at June 30, 2020 and are below
industry levels. Management is carefully monitoring asset
quality with a particular focus on customers that have requested
payment deferrals during this difficult economic time. The
Asset Quality Task Force is meeting monthly to review these
particular relationships, receiving input from the business lenders
regarding their ongoing discussions with the borrowers. In
summary, the allowance for loan losses provided 311% coverage of
non-performing assets, and 1.04% of total loans, at June 30, 2020, compared to 397% coverage of
non-performing assets, and 1.05% of total loans, at December 31, 2019. Note that the reserve
coverage of total loans, excluding PPP loans, is 1.13% at
June 30, 2020.
Total non-interest income in the second quarter of 2020
increased by $110,000, or 3.0%, from
the prior year's second quarter, and increased by $337,000, or 4.6%, in the first half of 2020 when
compared to the first half of 2019. Income from residential
mortgage loan sales into the secondary market increased by
$228,000, or 213.1%, for the quarter
and increased by $403,000, or 238.5%,
for the first six months due to the strong level of residential
mortgage loan production. The higher level of residential
mortgage loan production also resulted in mortgage related fees
increasing by $68,000, or 88.3%, for
the quarter and by $150,000, or
124.0%, for the six months. Wealth management fees increased
by $52,000, or 2.1%, in the second
quarter of 2020 and by $210,000, or
4.4%, for the first half of 2020 compared to the same time period
in 2019. In addition to an improved level of fee income from
the Financial Services business unit, the entire Wealth Management
Division has been resilient and performed well in spite of the
volatility of the markets and a major market value decline that
occurred in late March. Slightly offsetting these favorable
items was service charges on deposit accounts decreasing by
$141,000, or 44.5%, for the quarter
and by $165,000, or, 26.3%, for the
first six months. Consumer spending activity based fees such
as deposit service charges, which include overdraft fees, decreased
significantly with the shutdown of the economy. Finally, the
economic shutdown also resulted in other income comparing
unfavorably for the quarter by $90,000, or 15.6%, and, also, declined by
$251,000, or 20.2%, for the six
months of 2020. The six- month unfavorable comparison also
results from the Company recognizing a gain in 2019 on the sale of
equity shares from a previous acquisition.
The Company's total non-interest expense in the second quarter
of 2020 increased by $550,000, or
5.3%, when compared to the second quarter of 2019 and increased in
the first half of 2020 by $890,000,
or 4.3%, when compared to 2019. The increase in both time
periods was due to higher salaries & benefits expense of
$271,000, or 4.3%, for the quarter
and $674,000, or 5.3%, for the first
six months of 2020. Within salaries & benefits, pension
expense increased by $188,000, or
50.8%, for the quarter between years and increased by $376,000, or 51.9%, for the six months.
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
for both time periods is also due to increased health care costs
and greater commissions earned as a result of increased residential
mortgage loan production while total salaries are higher for the
six-month time period only in 2020 by $193,000, or 2.2%. Total professional fees
increased by $82,000, or 6.6%, in the
second quarter of 2020 and by $116,000, or 4.9%, for the first half of the
year. The increase results from higher appraisal fees due to
the significantly higher level of residential mortgage loan
production, higher legal fees related to PPP loan processing and a
higher level of outside professional services related costs.
Other expenses are higher in both time periods as the Company
incurred approximately $80,000 of
expense for personal protective equipment (PPE) and related
supplies so far in 2020 to keep our employees and customers safe
during the pandemic. Finally, FDIC deposit insurance expense is
$50,000, or 62.5%, higher for the
quarterly comparison only as this line returned to a more normal
level after the credit from the application of the Small Bank
Assessment Credit regulation expired.
The Company recorded an income tax expense of $365,000, or an effective tax rate of 20.5%, in
the second quarter of 2020. This compares to an income tax
expense of $470,000, or an effective
tax rate of 20.8%, for the second quarter of 2019. Similarly,
for the first six months of 2020, the Company recorded income tax
expense of $731,000, or an effective
tax rate of 20.5%, compared to income tax expense of $961,000 in 2019, or an effective tax rate of
20.8%.
The Company had total assets of $1.24
billion, shareholders' equity of $102.6 million, a book value of $6.01 per common share and a tangible book
value(1) of $5.31 per
common share at June 30, 2020.
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 August 17, 2020 to shareholders of record on
August 3, 2020. This cash
dividend represents a 3.5% annualized yield using the July 17, 2020 closing stock price of $2.87. For the first six months of 2020,
the Company's dividend payout ratio amounted to 29.4%.
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
June 30, 2020
(Dollars in thousands, except per share and ratio data)
(Unaudited)
|
|
2020
|
|
1QTR
|
2QTR
|
YEAR
TO DATE
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
Net income
|
$1,409
|
$1,419
|
$2,828
|
|
|
|
|
PERFORMANCE
PERCENTAGES (annualized):
|
|
|
|
Return on average
assets
|
0.48%
|
0.46%
|
0.47%
|
Return on average
equity
|
5.69
|
5.63
|
5.66
|
Return on average
tangible common equity (B)
|
6.46
|
6.38
|
6.42
|
Net interest
margin
|
3.21
|
3.30
|
3.26
|
Net charge-offs as a
percentage of average loans
|
0.06
|
0.04
|
0.05
|
Loan loss provision
(credit) as a percentage of
average loans
|
0.08
|
0.20
|
0.14
|
Efficiency
ratio
|
84.46
|
83.09
|
83.76
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
Basic
|
$0.08
|
$0.08
|
$0.17
|
Average number of
common shares outstanding
|
17,043
|
17,052
|
17,047
|
Diluted
|
0.08
|
0.08
|
0.17
|
Average number of
common shares outstanding
|
17,099
|
17,056
|
17,070
|
Cash dividends paid
per share
|
$0.025
|
$0.025
|
$0.050
|
2019
|
|
1QTR
|
2QTR
|
YEAR
TO DATE
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
Net income
|
$1,878
|
$1,792
|
$3,670
|
|
|
|
|
PERFORMANCE
PERCENTAGES (annualized):
|
|
|
|
Return on average
assets
|
0.66%
|
0.61%
|
0.63%
|
Return on average
equity
|
7.84
|
7.24
|
7.53
|
Return on average
tangible common equity (B)
|
8.94
|
8.22
|
8.57
|
Net interest
margin
|
3.24
|
3.30
|
3.27
|
Net charge-offs as a
percentage of average loans
|
0.08
|
0.00
|
0.04
|
Loan loss provision
(credit) as a percentage of
average loans
|
(0.19)
|
0.00
|
(0.09)
|
Efficiency
ratio
|
83.90
|
82.18
|
83.02
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
Basic
|
$0.11
|
$0.10
|
$0.21
|
Average number of
common shares outstanding
|
17,578
|
17,476
|
17,527
|
Diluted
|
0.11
|
0.10
|
0.21
|
Average number of
common shares outstanding
|
17,664
|
17,560
|
17,611
|
Cash dividends paid
per share
|
$0.020
|
$0.025
|
$0.045
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
--CONTINUED--
(Dollars in thousands, except per share, statistical, and ratio
data)
(Unaudited)
|
|
2020
|
|
1QTR
|
2QTR
|
FINANCIAL
CONDITION DATA AT
PERIOD END:
|
|
|
Assets
|
$1,168,355
|
$1,242,074
|
Short-term
investments/overnight funds
|
6,431
|
30,219
|
Investment
securities
|
184,784
|
184,908
|
Total loans and loans
held for sale
|
877,399
|
928,350
|
Paycheck Protection
Program (PPP) loans
|
0
|
66,956
|
Allowance for loan
losses
|
9,334
|
9,699
|
Goodwill
|
11,944
|
11,944
|
Deposits
|
957,593
|
1,033,033
|
FHLB
borrowings
|
74,572
|
69,894
|
Subordinated debt,
net
|
7,517
|
7,522
|
Shareholders'
equity
|
100,840
|
102,604
|
Non-performing
assets
|
2,244
|
3,122
|
Tangible common
equity ratio (B)
|
7.69%
|
7.37%
|
Total capital (to
risk weighted assets) ratio
|
13.41
|
13.18
|
PER COMMON
SHARE:
|
|
|
Book value
|
$5.92
|
$6.01
|
Tangible book value
(B)
|
5.22
|
5.31
|
Market value
(C)
|
2.62
|
3.08
|
Wealth management
assets – fair market
value (A)
|
$1,983,952
|
$2,193,504
|
|
|
|
STATISTICAL DATA AT
PERIOD
END:
|
|
|
Full-time equivalent
employees
|
306
|
305
|
Branch
locations
|
16
|
16
|
Common shares
outstanding
|
17,043,644
|
17,058,644
|
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
|
Total loans and loans
held for sale
|
863,134
|
890,081
|
875,082
|
887,574
|
Paycheck Protection
Program (PPP) loans
|
0
|
0
|
0
|
0
|
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
|
2QTR
|
YEAR
TO DATE
|
INTEREST
INCOME
|
|
|
|
Interest and fees on
loans
|
$10,332
|
$10,448
|
$20,780
|
Interest on
investments
|
1,612
|
1,613
|
3,225
|
Total Interest
Income
|
11,944
|
12,061
|
24,005
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
Deposits
|
2,458
|
1,869
|
4,327
|
All
borrowings
|
735
|
719
|
1,454
|
Total Interest
Expense
|
3,193
|
2,588
|
5,781
|
|
|
|
|
NET INTEREST
INCOME
|
8,751
|
9,473
|
18,224
|
Provision (credit)
for loan losses
|
175
|
450
|
625
|
NET INTEREST INCOME
AFTER
PROVISION (CREDIT) FOR LOAN LOSSES
|
8,576
|
9,023
|
17,599
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
Wealth management
fees
|
2,554
|
2,471
|
5,025
|
Service charges on
deposit accounts
|
286
|
176
|
462
|
Net realized gains on
loans held for sale
|
237
|
335
|
572
|
Mortgage related
fees
|
126
|
145
|
271
|
Net realized gains on
investment securities
|
0
|
0
|
0
|
Bank owned life
insurance
|
125
|
152
|
277
|
Other
income
|
504
|
488
|
992
|
Total Non-Interest
Income
|
3,832
|
3,767
|
7,599
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
Salaries and employee
benefits
|
6,704
|
6,619
|
13,323
|
Net occupancy
expense
|
671
|
606
|
1,277
|
Equipment
expense
|
395
|
389
|
784
|
Professional
fees
|
1,154
|
1,331
|
2,485
|
FDIC deposit
insurance expense
|
26
|
130
|
156
|
Other
expenses
|
1,683
|
1,931
|
3,614
|
Total Non-Interest
Expense
|
10,633
|
11,006
|
21,639
|
|
|
|
|
PRETAX
INCOME
|
1,775
|
1,784
|
3,559
|
Income tax
expense
|
366
|
365
|
731
|
NET INCOME
|
$1,409
|
$1,419
|
$2,828
|
2019
|
|
|
1QTR
|
2QTR
|
YEAR
TO DATE
|
INTEREST
INCOME
|
|
|
|
|
Interest and fees on
loans
|
|
$10,418
|
$10,994
|
$21,412
|
Interest on
investments
|
|
1,746
|
1,771
|
3,517
|
Total Interest
Income
|
|
12,164
|
12,765
|
24,929
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
Deposits
|
|
2,730
|
2,867
|
5,597
|
All
borrowings
|
|
777
|
837
|
1,614
|
Total Interest
Expense
|
|
3,507
|
3,704
|
7,211
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
8,657
|
9,061
|
17,718
|
Provision (credit)
for loan losses
|
|
(400)
|
0
|
(400)
|
NET INTEREST INCOME
AFTER
PROVISION (CREDIT) FOR LOAN LOSSES
|
|
9,057
|
9,061
|
18,118
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
Wealth management
fees
|
|
2,396
|
2,419
|
4,815
|
Service charges on
deposit accounts
|
|
310
|
317
|
627
|
Net realized gains on
loans held for sale
|
|
62
|
107
|
169
|
Mortgage related
fees
|
|
44
|
77
|
121
|
Net realized gains on
investment securities
|
|
0
|
30
|
30
|
Bank owned life
insurance
|
|
128
|
129
|
257
|
Other
income
|
|
665
|
578
|
1,243
|
Total Non-Interest
Income
|
|
3,605
|
3,657
|
7,262
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
Salaries and employee
benefits
|
|
6,301
|
6,348
|
12,649
|
Net occupancy
expense
|
|
658
|
622
|
1,280
|
Equipment
expense
|
|
361
|
387
|
748
|
Professional
fees
|
|
1,120
|
1,249
|
2,369
|
FDIC deposit
insurance expense
|
|
80
|
80
|
160
|
Other
expenses
|
|
1,773
|
1,770
|
3,543
|
Total Non-Interest
Expense
|
|
10,293
|
10,456
|
20,749
|
|
|
|
|
|
PRETAX
INCOME
|
|
2,369
|
2,262
|
4,631
|
Income tax
expense
|
|
491
|
470
|
961
|
NET INCOME
|
|
$1,878
|
$1,792
|
$3,670
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
AVERAGE BALANCE SHEET DATA
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
2020
|
2019
|
|
|
SIX
|
|
SIX
|
|
2QTR
|
MONTHS
|
2QTR
|
MONTHS
|
Interest earning
assets:
|
|
|
|
|
Loans and loans held
for sale, net of unearned income
|
$912,541
|
$894,819
|
$883,315
|
$871,742
|
Short-term
investments
|
37,180
|
27,346
|
5,813
|
6,793
|
Deposits with
banks
|
3,266
|
2,140
|
1,020
|
1,020
|
Total investment
securities
|
187,288
|
186,538
|
199,561
|
198,962
|
Total interest
earning assets
|
1,140,275
|
1,110,843
|
1,089,709
|
1,078,517
|
|
|
|
|
|
Non-interest earning
assets:
|
|
|
|
|
Cash and due from
banks
|
17,586
|
18,337
|
19,367
|
20,633
|
Premises and
equipment
|
18,545
|
18,569
|
18,795
|
17,053
|
Other
assets
|
70,657
|
69,447
|
63,251
|
62,667
|
Allowance for loan
losses
|
(9,373)
|
(9,345)
|
(8,184)
|
(8,425)
|
|
|
|
|
|
Total
assets
|
$1,237,690
|
$1,207,851
|
$1,182,938
|
$1,170,445
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
Interest bearing
deposits:
|
|
|
|
|
Interest bearing
demand
|
$172,786
|
$169,926
|
$169,029
|
$166,461
|
Savings
|
102,505
|
99,836
|
97,884
|
97,867
|
Money market
|
230,863
|
230,350
|
235,058
|
238,393
|
Other time
|
346,314
|
344,131
|
323,080
|
319,235
|
Total interest
bearing deposits
|
852,468
|
844,243
|
825,051
|
821,956
|
Borrowings:
|
|
|
|
|
Federal funds purchased
and other short-term borrowings
|
4,245
|
3,576
|
20,363
|
17,888
|
Advances from Federal
Home Loan Bank
|
59,786
|
57,539
|
50,571
|
48,777
|
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
|
3,977
|
3,985
|
4,188
|
2,797
|
Total interest
bearing liabilities
|
941,211
|
930,078
|
920,908
|
912,153
|
|
|
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
Demand
deposits
|
183,352
|
165,096
|
155,250
|
152,748
|
Other
liabilities
|
11,791
|
12,203
|
7,409
|
7,276
|
Shareholders'
equity
|
101,336
|
100,474
|
99,371
|
98,268
|
Total liabilities and
shareholders' equity
|
$1,237,690
|
$1,207,851
|
$1,182,938
|
$1,170,445
|
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
|
2QTR
|
YEAR
TO DATE
|
|
|
|
|
Net income
|
$1,409
|
$1,419
|
$2,828
|
|
|
|
|
Average shareholders'
equity
|
99,612
|
101,336
|
100,474
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
Average tangible
common equity
|
87,668
|
89,392
|
88,530
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
6.46%
|
6.38%
|
6.42%
|
|
|
|
|
|
|
|
|
|
1QTR
|
2QTR
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
Total shareholders'
equity
|
$100,840
|
$102,604
|
|
Less:
Goodwill
|
11,944
|
11,944
|
|
Tangible common
equity
|
88,896
|
90,660
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
Total
assets
|
1,168,355
|
1,242,074
|
|
Less:
Goodwill
|
11,944
|
11,944
|
|
Tangible
assets
|
1,156,411
|
1,230,130
|
|
|
|
|
|
Tangible common
equity ratio
|
7.69%
|
7.37%
|
|
|
|
|
|
Total shares
outstanding
|
17,043,644
|
17,058,644
|
|
|
|
|
|
Tangible book value
per share
|
$5.22
|
$5.31
|
|
|
|
|
|
2019
|
|
1QTR
|
2QTR
|
YEAR
TO DATE
|
|
|
|
|
|
|
Net income
|
$1,878
|
$1,792
|
$3,670
|
|
|
|
|
|
|
Average shareholders'
equity
|
97,166
|
99,371
|
98,268
|
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
|
Average tangible
common equity
|
85,222
|
87,427
|
86,324
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
8.94%
|
8.22%
|
8.57%
|
|
|
|
|
|
|
|
|
|
|
|
|
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
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SOURCE AmeriServ Financial, Inc.