JOHNSTOWN, Pa., April 20,
2021 /PRNewswire/ -- AmeriServ Financial, Inc. (NASDAQ:
ASRV) reported first quarter 2021 net income of $2,081,000, or $0.12 per diluted common share. This
earnings performance represented a $672,000, or 47.7%, increase from the first
quarter of 2020 when net income totaled $1,409,000, or $0.08 per diluted common share. The
following table highlights the Company's financial performance for
the quarters ended March 31, 2021 and
2020:
|
First Quarter 2021
|
First Quarter 2020
|
|
$ Change
|
% Change
|
|
|
|
|
|
|
Net income
|
$2,081,000
|
$1,409,000
|
|
$672,000
|
47.7%
|
Diluted
earnings per
share
|
$ 0.12
|
$ 0.08
|
|
$ 0.04
|
50.0%
|
Jeffrey A. Stopko, President and
Chief Executive Officer, commented on the first quarter 2021
financial results: "The benefits of our community bank
customer-focused business model and the diversification of our
revenue streams contributed to AmeriServ Financial's best earnings
quarter since the third quarter of 2018. Our ability to
generate positive operating leverage by growing our revenues at a
faster pace than expenses caused this strong growth in earnings in
the first quarter of 2021. We continued to achieve record levels of
both loans and deposits as we served as an important financial
resource to small businesses and consumers in our marketplace.
Additionally, 32% of our total first quarter 2021 revenue came from
non-interest income sources which included record contributions
from our strong wealth management business and active residential
mortgage operation. As a result of this good earnings momentum and
our diligent and conservative focus on our asset quality, I believe
that AmeriServ Financial is well positioned to take advantage of
opportunities that may result from the expected improvement in the
economy during the remainder of 2021."
The Company's net interest income in the first quarter of 2021
increased by $941,000, or 10.8%, from
the prior year's first quarter while the net interest margin of
3.23% was two basis points higher than the net interest margin of
3.21% for the first quarter of 2020. First quarter 2021
results were indicative of the Company's continuing response to the
challenges presented by the pandemic, including the current low
interest rate environment as well as economic uncertainty and
volatility. The economy has been demonstrating some
improvement due to the positive impact of the COVID-19 vaccine
distribution and the gradual easing of social restrictions that
businesses and consumers have been operating under. The
Company continues to experience robust balance sheet growth as,
both, total loans and total deposits reached new record levels due
to business development efforts and the government implementing new
stimulus programs during the quarter. Net interest income
improved as net interest margin pressure from the low interest rate
environment was offset by fee income from existing Paycheck
Protection Program (PPP) loan forgiveness and new fee income from
the most recent second round of PPP loans implemented earlier in
the quarter. The low interest rate environment is also
positively impacting deposit and borrowings interest expense cost.
Overall, total interest expense decreased significantly more than
the decrease in total interest income, resulting in net interest
income increasing for the first quarter of 2021 compared to last
year's first quarter. Overall, the increase to net interest
income, along with a higher level of non-interest income, more than
offset an increased loan loss provision and a higher level of
non-interest expense resulting in an improved earnings performance
for the first quarter of 2021.
The slowly improving economy was evident in our lending activity
as we continued to experience commercial loan growth during the
first quarter of 2021 along with commercial loan pipelines
returning to pre-COVID levels. The strong level of
residential mortgage loan production experienced in 2020 continued
into the first quarter of 2021. Residential mortgage loan
production totaled $29.7 million in
the first quarter of 2021 and was 64.0% higher than the production
level of $18.1 million achieved in
last year's first quarter. Additionally, loan volumes were
positively impacted by the previously mentioned second round of the
100% guaranteed PPP loans, which was announced in late December 2020 as part of the Economic Aid to
Hard-Hit Small Businesses, Nonprofits, and Venues Act and
implemented during the middle of January 2021. (Note that
there were no PPP loans on the balance sheet in the first quarter
of 2020 as the initial round of the program was not implemented
until the second quarter of 2020.) The Company, again,
elected to participate in this renewed program to assist small
businesses in our community in this difficult economy. The
combination of growth in traditional loan products and our
participation in the latest round of the PPP resulted in total
loans reaching a record level. Later in the first quarter,
the President signed into law another round of economic stimulus as
part of the American Rescue Plan Act of 2021. The stimulus checks
delivered to most Americans and the financial assistance provided
to municipalities and school districts as part of this program
contributed to total deposits increasing significantly and, similar
to the loan portfolio, reaching a record level.
The average balance of total interest earning assets for the
first quarter of 2021 continued to grow and are now $119 million, or 10.9%, higher than the first
quarter of 2020. Likewise, on the liability side of the
balance sheet, total average deposits increased by $121 million, or 12.3%, since last year primarily
because of government stimulus and consumers/businesses changing
their spending habits because of the pandemic. Looking into
the near future, we expect that our deposit balances will be
positively impacted in the second quarter of 2021 by the
acquisition of two branch offices from Riverview Bank, which we
anticipate should provide approximately $45
million of additional deposits. This branch acquisition is
described in our press release and Current Report on Form 8-K dated
January 15, 2021, which can be found
on our website. Overall, the Company's loan to deposit ratio
averaged 89.0% in the first quarter of 2021, which we believe
indicates that the Company has ample capacity to continue to grow
its loan portfolio and is well positioned to continue assisting our
customers and the community to recover from the impact that the
COVID-19 pandemic is having on our local economy.
As stated previously, total loans reached a new record level and
averaged $982 million in the first
quarter of 2021 which is $105
million, or 11.9%, higher than the $877 million average for the first quarter of
2020. Along with continued robust residential mortgage loan
production and additional normal commercial loan growth, the
Company processed 219 PPP loans totaling $30.8 million. Also, the Company recorded a
total of $897,000 of processing fee
income and interest income from PPP lending activity. Finally, on
an end of period basis, excluding total PPP loans, the total loan
portfolio grew by approximately $41.9
million, or 4.8%, since the end of the first quarter of
2020.
The Company remains committed to prudently working with and
supporting our borrowers that have been hardest hit by the pandemic
by granting them loan payment modifications. Most of these
borrowers are those that have requested a second loan payment
deferral plan. Borrower requested modifications primarily
consist of the deferral of principal and/or interest payments for a
period of three to six months. On March 31, 2021, loans totaling approximately
$50 million, or 5.0% of total loans,
were on a payment modification plan. These loans include 18
commercial borrowers primarily in the hospitality industry.
This current level of borrowers requesting payment deferrals is
down sharply from its peak level of approximately $200 million that occurred on June 30, 2020. Management continues to carefully
monitor asset quality with a particular focus on these customers
that have requested payment deferrals. Deferral extension
requests are considered based upon the customer's needs and their
impacted industry, borrower and guarantor capacity to service debt
and issued regulatory guidance.
Total investment securities averaged $190
million for the first quarter of 2021 which is $1.6 million, or 0.8%, higher than the
$189 million average for last year's
first quarter. The Company continues to be selective in 2021
when purchasing securities due to the low interest rate
environment. However, the yield curve began to steepen during
the latter part of the first quarter as the long end of the U.S.
Treasury yield curve increased while the short end of the curve
remained relatively stable. This resulted in improved yields
for federal agency mortgage-backed securities and federal agency
bonds, and management decided to add more of these investments to
our portfolio. The Company also continues to purchase
corporate securities, particularly subordinated debt issued by
other financial institutions, along with taxable municipal
securities.
Our liquidity position continues to be strong due to the
significant influx of deposits. The challenges this excess
liquidity presents are twofold. First, there is the
uncertainty regarding the duration that these excess funds will
remain on the balance sheet which will be determined by customer
behavior as the economic conditions change. The second
challenge is to profitably deploy this excess liquidity given the
current low yields on short term investment products. As a
result, short-term investment balances averaged $31 million in the first quarter of 2021 which
remains high by historical standards. Therefore, future loan
growth and continued prudent investment in securities is critical
to achieve the best return on the excess funds. The low interest
rate environment resulted in interest income on total investments
decreasing between the first quarter of 2021 and first quarter of
2020. Overall, total interest income on both loans and
investments decreased by $175,000, or
1.5%, between years despite increased volume.
Total interest expense for the first quarter of 2021 decreased
by $1.1 million, or 35.0%, when
compared to the first quarter of 2020, due to lower levels of both
deposit and borrowing interest expense. Deposit interest
expense was lower by $1.1 million, or
43.0%, despite the previously mentioned record increase in deposits
that occurred during the first quarter of 2021 reflecting new
deposit inflows as well as the loyalty of the bank's core deposit
base. Management continues to effectively execute several
deposit product pricing reductions in order to address the net
interest margin challenges presented by the low interest rate
environment. As a result, the Company experienced some
deposit cost relief. Specifically, our total deposit cost
averaged 0.52% in the first quarter of 2021 compared to 1.01% in
the first quarter of 2020, representing a meaningful decrease of 49
basis points.
The Company recorded a $400,000
provision expense for loan losses in the first quarter of 2021 as
compared to a $175,000 provision
expense recorded in the first quarter of 2020. Although
higher than the first quarter of 2020 by $225,000, an improved credit quality outlook for
the overall portfolio resulted in a lower loan loss provision in
the first quarter of 2021 after three consecutive quarters of a
provision increase. The Company, however, continues to
believe that a strong allowance for loan losses is needed given the
overall economic climate and the uncertainty that remains because
of the impact that the COVID-19 pandemic is having on certain
borrowers. The first quarter 2021 provision primarily
reflects an increased allocation on two commercial loan
relationships transferred into non-accrual status during the
quarter and the rating downgrade of a loan in the health care
industry. As a result, non-performing assets, while still well
controlled, totaled $4.2 million, or
0.43% of total loans, on March 31,
2021 compared to $3.3 million,
or 0.34% of total loans, at December
31, 2020. The Company experienced low net loan
charge-offs of $114,000, or 0.05% of
total loans, in first quarter of 2021 which was comparable to net
loan charge-offs of $120,000, or
0.06% of total loans, for the first quarter of 2020. As a
result of the provision expense sharply exceeding net loan
charge-offs over the last 12 months, the balance in the allowance
for loan losses increased by $2.3
million, or 24.6%, to $11.6
million at March 31, 2021.
Management continues to carefully monitor asset quality with a
particular focus on loan customers that have requested a second
payment deferral. The Asset Quality Task Force is meeting at
least 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 274% coverage of non-performing assets, and 1.18% of total
loans, on March 31, 2021, compared to
341% coverage of non-performing assets, and 1.16% of total loans,
on December 31, 2020. Note that
the reserve coverage of total loans, excluding PPP loans, is
1.27%(1) on March 31,
2021. The Small Business Administration guarantees 100% of
the PPP loans made to eligible borrowers which minimizes the level
of credit risk associated with these loans.
Total non-interest income in the first quarter of 2021 increased
by $782,000, or 20.4%, from the prior
year's first quarter. Wealth management fees increased by
$318,000, or 12.5%, in the first
quarter of 2021 compared to the same time period in 2020. The
entire wealth management division has been resilient since the
pandemic began and is performing well managing client accounts and
adding new business despite the major market value decline that
occurred in late March 2020. The market value of wealth
management assets is now in excess of $2.5
billion and has fully recovered and improved from the
pre-pandemic valuation, exceeding the March
31, 2020 market value by 27%. Income from residential
mortgage loan sales into the secondary market increased by
$258,000, or 108.9%, due to a sharply
higher level of residential mortgage loan production in the first
quarter of 2021. Revenue from bank owned life insurance
increased by $207,000 due to the
receipt of a $159,000 death claim and
a financial floor taking hold which caused increased earnings and a
higher rate of return on certain policies. Partially
offsetting these favorable items was service charges on deposit
accounts decreasing by $85,000, or
29.7%, as a result of fewer overdraft fees due to customers
maintaining higher deposit
balances.
The Company's total non-interest expense in the first quarter of
2021 increased by $672,000, or 6.3%,
when compared to the first quarter of 2020. The increase was
due to higher salaries & benefits expense of $237,000, or 3.5%, increased professional fees by
$160,000, or 13.9%, higher other
expenses by $142,000, or 8.4%, and
increased FDIC insurance expense by $129,000. Within salaries & employee
benefits, factors causing the increase included greater incentive
compensation by $217,000 primarily
due to commissions earned as a result of the strong residential
mortgage loan production and incentives earned from the good
performance in the wealth management division. Also
contributing to the higher salaries & employee benefits expense
was increased health care costs by $97,000, or 11.1%. Partially offsetting
these increases within total salaries & employee benefits were
lower salaries expense by $139,000,
or 3.1%, due to the level of full time equivalent employees (FTEs)
being lower by five. The higher level of professional fees results
from an increased level of outside professional services related
costs, increased fees due to the significantly higher level of
residential mortgage loan production and PPP activity and higher
legal fees. The increase to FDIC deposit insurance expense is
due to an increase in the asset assessment base along with the
benefit of the Small Bank Assessment Credit being fully utilized in
the first quarter of 2020. Finally, the higher level of other
expenses is due to an increased expense related to the unfunded
commitment reserve along with $110,000 of costs incurred related to the
upcoming branch acquisition from Riverview Bank. Slightly
offsetting these increased items and favorably impacting other
expenses was a lower level of meals & travel costs that is
related to travel restrictions from the pandemic. Finally,
the Company recorded an income tax expense of $520,000, or an effective tax rate of 20.0%, in
the first quarter of 2021. This compares to an income tax
expense of $366,000, or an effective
tax rate of 20.6%, for the first quarter of 2020.
The Company had total assets of $1.3
billion, shareholders' equity of $105.3 million, a book value of $6.17 per common share and a tangible book
value(1) of $5.47 per
common share on March 31, 2021.
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 17, 2021 to shareholders of record on
May 3, 2021. This cash dividend
represents a 2.5% annualized yield using the April 13, 2021 closing stock price of
$4.01. For the first quarter of
2021, the Company's dividend payout ratio amounted to 20.8%.
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, proposed branch acquisition, including the
timing, anticipated benefits, and financial impact thereof, 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 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; expected timing and benefits of the proposed branch
acquisition; estimates of deposits and other assets to be acquired;
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, 2020. 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,
2021
(Dollars in
thousands, except per share and ratio data)
(Unaudited)
|
|
2021
|
|
|
|
|
|
|
1QTR
|
|
|
|
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
|
Net income
|
$2,081
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
PERCENTAGES (annualized):
|
|
|
|
|
|
Return on average
assets
|
0.65%
|
|
|
|
|
Return on average
equity
|
8.04
|
|
|
|
|
Return on average
tangible common equity (B)
|
9.08
|
|
|
|
|
Net interest
margin
|
3.23
|
|
|
|
|
Net charge-offs as a
percentage of average loans
|
0.05
|
|
|
|
|
Loan loss provision
as a percentage of
average loans
|
0.17
|
|
|
|
|
Efficiency ratio
(D)
|
79.00
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
Basic
|
$0.12
|
|
|
|
|
Average number of
common shares outstanding
|
17,064
|
|
|
|
|
Diluted
|
0.12
|
|
|
|
|
Average number of
common shares outstanding
|
17,101
|
|
|
|
|
Cash dividends paid
per share
|
$0.025
|
|
|
|
|
|
|
2020
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
FULL
YEAR
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
|
Net income
|
$1,409
|
$1,419
|
$1,078
|
$692
|
$4,598
|
|
|
|
|
|
|
PERFORMANCE
PERCENTAGES (annualized):
|
|
|
|
|
|
Return on average
assets
|
0.48%
|
0.46%
|
0.34%
|
0.21%
|
0.37%
|
Return on average
equity
|
5.69
|
5.63
|
4.17
|
2.66
|
4.52
|
Return on average
tangible common equity (B)
|
6.46
|
6.38
|
4.72
|
3.01
|
5.12
|
Net interest
margin
|
3.21
|
3.30
|
2.97
|
3.12
|
3.19
|
Net charge-offs as a
percentage of average loans
|
0.06
|
0.04
|
0.04
|
0.01
|
0.03
|
Loan loss provision
as a percentage of
average loans
|
0.08
|
0.20
|
0.29
|
0.44
|
0.26
|
Efficiency ratio
(D)
|
84.46
|
83.09
|
84.79
|
85.28
|
84.41
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
Basic
|
$0.08
|
$0.08
|
$0.06
|
$0.04
|
$0.27
|
Average number of
common shares outstanding
|
17,043
|
17,052
|
17,059
|
17,059
|
17,053
|
Diluted
|
0.08
|
0.08
|
0.06
|
0.04
|
0.27
|
Average number of
common shares outstanding
|
17,099
|
17,056
|
17,062
|
17,065
|
17,063
|
Cash dividends paid
per share
|
$0.025
|
$0.025
|
$0.025
|
$0.025
|
$0.100
|
AMERISERV FINANCIAL,
INC.
NASDAQ:
ASRV
--CONTINUED--
(Dollars in
thousands, except per share, statistical, and ratio
data)
(Unaudited)
|
|
2021
|
|
|
1QTR
|
|
|
|
FINANCIAL CONDITION
DATA AT
PERIOD END:
|
|
|
|
|
Assets
|
$1,311,412
|
|
|
|
Short-term
investments/overnight funds
|
18,025
|
|
|
|
Investment
securities
|
204,193
|
|
|
|
Total loans and loans
held for sale, net of
unearned income
|
986,557
|
|
|
|
Paycheck Protection
Program (PPP) loans
|
67,253
|
|
|
|
Allowance for loan
losses
|
11,631
|
|
|
|
Goodwill
|
11,944
|
|
|
|
Deposits
|
1,117,091
|
|
|
|
Short-term and FHLB
borrowings
|
55,149
|
|
|
|
Subordinated debt,
net
|
7,540
|
|
|
|
Shareholders'
equity
|
105,331
|
|
|
|
Non-performing
assets
|
4,245
|
|
|
|
Tangible common
equity ratio (B)
|
7.19%
|
|
|
|
Total capital (to
risk weighted assets) ratio
|
13.03
|
|
|
|
PER COMMON
SHARE:
|
|
|
|
|
Book value
|
$6.17
|
|
|
|
Tangible book value
(B)
|
5.47
|
|
|
|
Market value
(C)
|
4.06
|
|
|
|
Wealth management
assets – fair market
value (A)
|
$2,517,810
|
|
|
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
Full-time equivalent
employees
|
301
|
|
|
|
Branch
locations
|
16
|
|
|
|
Common shares
outstanding
|
17,069,000
|
|
|
|
|
2020
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
FINANCIAL CONDITION
DATA AT
PERIOD END:
|
|
|
|
|
Assets
|
$1,168,355
|
$1,242,074
|
$1,258,131
|
$1,279,713
|
Short-term
investments/overnight funds
|
6,431
|
30,219
|
23,222
|
11,077
|
Investment
securities
|
184,784
|
184,908
|
184,352
|
188,387
|
Total loans and loans
held for sale, net of
unearned income
|
877,399
|
928,350
|
949,367
|
978,345
|
Paycheck Protection
Program (PPP) loans
|
0
|
66,956
|
68,460
|
58,344
|
Allowance for loan
losses
|
9,334
|
9,699
|
10,284
|
11,345
|
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
Deposits
|
957,593
|
1,033,033
|
1,042,235
|
1,054,920
|
Short-term and FHLB
borrowings
|
74,572
|
69,894
|
80,230
|
89,691
|
Subordinated debt,
net
|
7,517
|
7,522
|
7,528
|
7,534
|
Shareholders'
equity
|
100,840
|
102,604
|
103,369
|
104,399
|
Non-performing
assets
|
2,244
|
3,122
|
2,603
|
3,331
|
Tangible common
equity ratio (B)
|
7.69%
|
7.37%
|
7.34%
|
7.29%
|
Total capital (to
risk weighted assets) ratio
|
13.41
|
13.18
|
13.02
|
12.93
|
PER COMMON
SHARE:
|
|
|
|
|
Book value
|
$5.92
|
$6.01
|
$6.06
|
$6.12
|
Tangible book value
(B)
|
5.22
|
5.31
|
5.36
|
5.42
|
Market value
(C)
|
2.62
|
3.08
|
2.81
|
3.13
|
Wealth management
assets – fair market
value (A)
|
$1,983,952
|
$2,193,504
|
$2,289,948
|
$2,481,144
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
Full-time equivalent
employees
|
306
|
305
|
306
|
299
|
Branch
locations
|
16
|
16
|
16
|
16
|
Common shares
outstanding
|
17,043,644
|
17,058,644
|
17,058,644
|
17,060,144
|
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.
|
|
(D)
|
Ratio calculated by
dividing total non-interest expense by tax equivalent net interest
income plus total non-interest income.
|
AMERISERV FINANCIAL,
INC.
NASDAQ:
ASRV
CONSOLIDATED
STATEMENT OF INCOME
(Dollars in
thousands)
(Unaudited)
|
|
2021
|
|
|
1QTR
|
|
|
|
|
INTEREST
INCOME
|
|
|
|
|
|
Interest and fees on
loans
|
$10,327
|
|
|
|
|
Interest on
investments
|
1,442
|
|
|
|
|
Total Interest
Income
|
11,769
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
Deposits
|
1,402
|
|
|
|
|
All
borrowings
|
675
|
|
|
|
|
Total Interest
Expense
|
2,077
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
9,692
|
|
|
|
|
Provision for loan
losses
|
400
|
|
|
|
|
NET INTEREST INCOME
AFTER
PROVISION FOR LOAN LOSSES
|
9,292
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
Wealth management
fees
|
2,872
|
|
|
|
|
Service charges on
deposit accounts
|
201
|
|
|
|
|
Net realized gains on
loans held for sale
|
495
|
|
|
|
|
Mortgage related
fees
|
130
|
|
|
|
|
Bank owned life
insurance
|
332
|
|
|
|
|
Other
income
|
584
|
|
|
|
|
Total Non-Interest
Income
|
4,614
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
Salaries and employee
benefits
|
6,941
|
|
|
|
|
Net occupancy
expense
|
680
|
|
|
|
|
Equipment
expense
|
390
|
|
|
|
|
Professional
fees
|
1,314
|
|
|
|
|
FDIC deposit
insurance expense
|
155
|
|
|
|
|
Other
expenses
|
1,825
|
|
|
|
|
Total Non-Interest
Expense
|
11,305
|
|
|
|
|
|
|
|
|
|
|
PRETAX
INCOME
|
2,601
|
|
|
|
|
Income tax
expense
|
520
|
|
|
|
|
NET INCOME
|
$2,081
|
|
|
|
|
|
|
2020
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
FULL
YEAR
|
INTEREST
INCOME
|
|
|
|
|
|
Interest and fees on
loans
|
$10,332
|
$10,448
|
$9,724
|
$10,124
|
$40,628
|
Interest on
investments
|
1,612
|
1,613
|
1,513
|
1,516
|
6,254
|
Total Interest
Income
|
11,944
|
12,061
|
11,237
|
11,640
|
46,882
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
Deposits
|
2,458
|
1,869
|
1,727
|
1,580
|
7,634
|
All
borrowings
|
735
|
719
|
719
|
708
|
2,881
|
Total Interest
Expense
|
3,193
|
2,588
|
2,446
|
2,288
|
10,515
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
8,751
|
9,473
|
8,791
|
9,352
|
36,367
|
Provision for loan
losses
|
175
|
450
|
675
|
1,075
|
2,375
|
NET INTEREST INCOME
AFTER
PROVISION FOR LOAN LOSSES
|
8,576
|
9,023
|
8,116
|
8,277
|
33,992
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
Wealth management
fees
|
2,554
|
2,471
|
2,604
|
2,583
|
10,212
|
Service charges on
deposit accounts
|
286
|
176
|
206
|
235
|
903
|
Net realized gains on
loans held for sale
|
237
|
335
|
507
|
444
|
1,523
|
Mortgage related
fees
|
126
|
145
|
161
|
127
|
559
|
Bank owned life
insurance
|
125
|
152
|
161
|
344
|
782
|
Other
income
|
504
|
488
|
665
|
639
|
2,296
|
Total Non-Interest
Income
|
3,832
|
3,767
|
4,304
|
4,372
|
16,275
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
Salaries and employee
benefits
|
6,704
|
6,619
|
6,838
|
7,229
|
27,390
|
Net occupancy
expense
|
671
|
606
|
608
|
625
|
2,510
|
Equipment
expense
|
395
|
389
|
374
|
401
|
1,559
|
Professional
fees
|
1,154
|
1,331
|
1,373
|
1,361
|
5,219
|
FDIC deposit
insurance expense
|
26
|
130
|
140
|
185
|
481
|
Other
expenses
|
1,683
|
1,931
|
1,774
|
1,908
|
7,296
|
Total Non-Interest
Expense
|
10,633
|
11,006
|
11,107
|
11,709
|
44,455
|
|
|
|
|
|
|
PRETAX
INCOME
|
1,775
|
1,784
|
1,313
|
940
|
5,812
|
Income tax
expense
|
366
|
365
|
235
|
248
|
1,214
|
NET INCOME
|
$1,409
|
$1,419
|
$1,078
|
$692
|
$4,598
|
AMERISERV FINANCIAL,
INC.
NASDAQ:
ASRV
Average Balance Sheet
Data
(Dollars in
thousands)
(Unaudited)
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
1QTR
|
|
1QTR
|
|
Interest earning
assets:
|
|
|
|
|
Loans and loans held
for sale, net of unearned income
|
$981,877
|
|
$877,097
|
|
Short-term
investments and bank deposits
|
30,852
|
|
18,527
|
|
Total investment
securities
|
190,446
|
|
188,880
|
|
Total interest
earning assets
|
1,203,175
|
|
1,084,504
|
|
|
|
|
|
|
Non-interest earning
assets:
|
|
|
|
|
Cash and due from
banks
|
18,071
|
|
19,087
|
|
Premises and
equipment
|
17,983
|
|
18,593
|
|
Other
assets
|
70,260
|
|
65,146
|
|
Allowance for loan
losses
|
(11,582)
|
|
(9,317)
|
|
|
|
|
|
|
Total
assets
|
$1,297,907
|
|
$1,178,013
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
Interest bearing
deposits:
|
|
|
|
|
Interest bearing
demand
|
$195,972
|
|
$167,066
|
|
Savings
|
115,632
|
|
97,166
|
|
Money market
|
246,895
|
|
229,838
|
|
Other time
|
349,605
|
|
341,948
|
|
Total interest
bearing deposits
|
908,104
|
|
836,018
|
|
Borrowings:
|
|
|
|
|
Federal funds purchased
and other short-term borrowings
|
1,180
|
|
2,908
|
|
Advances from Federal
Home Loan Bank
|
58,949
|
|
55,292
|
|
Guaranteed junior
subordinated deferrable interest debentures
|
13,085
|
|
13,085
|
|
Subordinated
debt
|
7,650
|
|
7,650
|
|
Lease
liabilities
|
3,841
|
|
3,993
|
|
Total interest
bearing liabilities
|
992,809
|
|
918,946
|
|
|
|
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
Demand
deposits
|
195,305
|
|
146,840
|
|
Other
liabilities
|
4,862
|
|
12,615
|
|
Shareholders'
equity
|
104,931
|
|
99,612
|
|
Total liabilities and
shareholders' equity
|
$1,297,907
|
|
$1,178,013
|
|
AMERISERV FINANCIAL,
INC.
NASDAQ:
ASRV
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
RETURN ON AVERAGE
TANGIBLE COMMON EQUITY, TANGIBLE COMMON EQUITY RATIO, TANGIBLE BOOK
VALUE PER SHARE, AND LOAN LOSS RESERVE COVERAGE TO TOTAL LOANS
EXCLUDING PPP LOANS
(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", "tangible book value per share", and "loan loss
reserve coverage to total loans excluding PPP loans." 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. These non-GAAP measures are
used by management in their analysis of the Company's performance
or, management believes, facilitate an understanding of the
Company's performance.
|
|
2021
|
|
1QTR
|
|
|
|
|
RETURN ON AVERAGE
TANGIBLE COMMON EQUITY
|
|
|
|
|
|
Net income
|
$2,081
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
104,931
|
|
|
|
|
Less:
Goodwill
|
11,944
|
|
|
|
|
Average tangible
common equity
|
92,987
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common
equity (annualized)
|
9.08%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
|
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
Total shareholders'
equity
|
$105,331
|
|
|
|
|
Less:
Goodwill
|
11,944
|
|
|
|
|
Tangible common
equity
|
93,387
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
|
Total
assets
|
1,311,412
|
|
|
|
|
Less:
Goodwill
|
11,944
|
|
|
|
|
Tangible
assets
|
1,299,468
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
7.19%
|
|
|
|
|
|
|
|
|
|
|
Total shares
outstanding
|
17,069,000
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per share
|
$5.47
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
FULL
YEAR
|
RETURN ON AVERAGE
TANGIBLE
COMMON EQUITY
|
|
|
|
|
|
Net income
|
$1,409
|
$1,419
|
$1,078
|
$692
|
$4,598
|
|
|
|
|
|
|
Average shareholders'
equity
|
99,612
|
101,336
|
102,813
|
103,447
|
101,802
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
11,944
|
Average tangible
common equity
|
87,668
|
89,392
|
90,869
|
91,503
|
89,858
|
|
|
|
|
|
|
Return on average
tangible common
equity (annualized)
|
6.46%
|
6.38%
|
4.72%
|
3.01%
|
5.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
2QTR
|
3QTR
|
4QTR
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
Total shareholders'
equity
|
$100,840
|
$102,604
|
$103,369
|
$104,399
|
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
|
Tangible common
equity
|
88,896
|
90,660
|
91,425
|
92,455
|
|
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
|
Total
assets
|
1,168,355
|
1,242,074
|
1,258,131
|
1,279,713
|
|
Less:
Goodwill
|
11,944
|
11,944
|
11,944
|
11,944
|
|
Tangible
assets
|
1,156,411
|
1,230,130
|
1,246,187
|
1,267,769
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
7.69%
|
7.37%
|
7.34%
|
7.29%
|
|
|
|
|
|
|
|
Total shares
outstanding
|
17,043,644
|
17,058,644
|
17,058,644
|
17,060,144
|
|
|
|
|
|
|
|
Tangible book value
per share
|
$5.22
|
$5.31
|
$5.36
|
$5.42
|
|
|
|
|
|
|
|
AMERISERV FINANCIAL,
INC.
NASDAQ:
ASRV
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
RETURN ON AVERAGE
TANGIBLE COMMON EQUITY, TANGIBLE COMMON EQUITY RATIO, TANGIBLE BOOK
VALUE PER SHARE, AND LOAN LOSS RESERVE COVERAGE TO TOTAL LOANS
EXCLUDING PPP LOANS
--CONTINUED--
(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", "tangible book value per share", and "loan loss
reserve coverage to total loans excluding PPP loans." 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. These non-GAAP measures are
used by management in their analysis of the Company's performance
or, management believes, facilitate an understanding of the
Company's performance.
|
|
|
|
|
|
March 31,
2021
|
|
|
|
|
|
|
ALLOWANCE RESERVE
COVERAGE
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$11,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and loans
held for sale, net of unearned
income
|
986,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve
coverage
|
1.18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve coverage
to total loans, excluding PPP loans:
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$11,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and loans
held for sale, net of unearned
income
|
986,557
|
|
|
|
|
|
|
PPP loans
|
(67,253)
|
|
|
|
|
|
|
|
919,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP reserve
coverage
|
1.27%
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/ameriserv-financial-reports-increased-2021-first-quarter-earnings-and-announces-quarterly-common-stock-cash-dividend-301271995.html
SOURCE AmeriServ Financial, Inc.