JOHNSTOWN, Pa., Oct. 19, 2021
/PRNewswire/ -- AmeriServ Financial, Inc. (NASDAQ: ASRV)
reported third quarter 2021 net income of $1,431,000, or $0.08 per diluted common share. This
earnings performance was a $353,000,
or 32.7%, increase from the third quarter of 2020 when net income
totaled $1,078,000, or $0.06 per diluted common share. For the
nine-month period ended September 30,
2021, the Company reported net income of $5,220,000, or $0.31 per diluted common share. This
represents a 34.8% increase in earnings per share from the
nine-month period of 2020 when net income totaled $3,906,000, or $0.23 per diluted common share. The
following table highlights the Company's financial performance for
both the three- and nine-month periods ended September 30, 2021 and 2020:
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Third
Quarter
2021
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Third
Quarter
2020
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Nine Months
Ended
September 30,
2021
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Nine Months
Ended
September 30,
2020
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Net income
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$
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1,431,000
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$
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1,078,000
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$
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5,220,000
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$
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3,906,000
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Diluted earnings per
share
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$
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0.08
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$
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0.06
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$
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0.31
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$
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0.23
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Jeffrey A. Stopko, President and
Chief Executive Officer, commented on the third quarter 2021
financial results: "Highlights of our third quarter included the
previously disclosed successful completion of a $27 million private placement of subordinated
debt, continued loan portfolio growth, and strong performance from
our wealth management businesses. The financial benefits of
utilizing the funds from our sub debt offering to retire higher
cost debt will begin to be fully realized in the fourth quarter of
2021 which we expect will favorably reduce our cost of funds.
Additionally, our earning asset yield will benefit from another
quarter of loan growth. Excluding Paycheck Protection Program
(PPP) loan activity, good growth in both commercial real estate
loans and residential mortgage loans caused our total loan
portfolio to increase by $22 million,
or 2.3%, during the third quarter of 2021. As a result of
these items, we believe that our net interest margin is well
positioned to expand in the fourth quarter of 2021. Additionally,
even with growing net interest income, the diversification of our
revenue streams continues to be a strength for our Company as 32%
of our total year-to-date 2021 revenue came from non-interest
income sources, which was driven by record contributions from our
wealth management businesses."
The Company's net interest income in the third quarter of 2021
increased by $435,000, or 4.9%, from
the prior year's third quarter and, for the nine months of 2021,
increased by $1.8 million, or 6.6%,
when compared to the nine months of 2020. The Company's net
interest margin of 2.85% for the third quarter of 2021 and 3.07%
for the nine-month timeframe was 12 basis points lower for the
quarter and was 9 basis points lower for the nine-month
period. Financial results when comparing 2021 to 2020 were
indicative of the Company's effective execution of strategies as
continued improvement in the economic environment was conducive to
growth, as demonstrated by an increase in our revenues while we
work to meet the challenges of the current low interest rate
environment. While businesses and consumers are resuming
their normal activities and more people are getting vaccinated,
recent developments and the Delta variant remind us that many risks
remain. AmeriServ has proven to be resilient and will
continue to adapt in this fluid environment, adjust in real-time,
and prioritize the well-being of our employees and the communities
we serve.
The Company continued to experience significantly higher than
historical levels of both total average loans and total average
deposits for both the quarter and year-to-date time periods in 2021
versus 2020. This growth is due to successful business
development efforts, the impact from the government stimulus
programs and the recently completed Somerset County branch
acquisition. Net interest income improved due to the positive
impact of commercial real estate and residential mortgage loan
growth as well as the low interest rate environment favorably
impacting deposit and FHLB borrowings interest expense. The
combination of these two factors more than offset the unfavorable
impact of net interest margin pressure from lower earning asset
yields. Overall, total interest expense decreased
significantly more than the decrease in total interest income,
resulting in net interest income increasing for both the third
quarter and year-to-date time periods of 2021, compared to last
year. Overall, the increase to net interest income, a growing
level of non-interest income, and a reduced loan loss provision
more than offset a higher level of non-interest expense resulting
in an improved earnings performance for the third quarter and nine
months of 2021.
The economic recovery has been evident in our lending activity
as we continued to experience loan growth throughout the nine
months of 2021. Commercial loan pipelines returned to
pre-COVID levels early this year and reached record levels during
the third quarter. The overall total loan portfolio volume
stabilized during the third quarter in comparison to the previous
quarter in 2021 as additional loan growth was offset by declining
PPP loans as they complete the forgiveness process. Although
reduced from its peak in 2020, strong residential mortgage loan
production continued throughout 2021. Residential mortgage
loan production totaled $76.2 million
for the nine months of 2021 which declined by 22.5% from the
production level of $98.3 million
achieved in the nine months of 2020. Despite the decline
between years, thus far, this is the second highest level of
residential mortgage loan production in the Company's
history. The Company did revise strategy in 2021 and is
retaining a higher percentage of our residential mortgage loan
production in the loan portfolio as opposed to selling into the
secondary market. This strategic change allowed us to more
profitably deploy a portion of the increased liquidity that we have
on our balance sheet.
Government economic stimulus to support most Americans and
financial assistance provided to municipalities and school
districts during the pandemic contributed to total deposits
increasing significantly between years and reaching record
levels. Also, as noted in our second quarter of 2021 press
release, the Somerset County branch acquisition resulted in
approximately $42 million of
additional deposits coming on to our balance sheet in the middle of
the second quarter. Therefore, total average deposit volumes
in the third quarter of 2021 reflect the first full impact to
quarterly average deposits due to the acquisition. Overall,
the Company's loan to deposit ratio averaged 83.2% in the third
quarter of 2021, which we believe indicates that the Company has
ample capacity to continue to grow its loan portfolio and is
strongly positioned to provide the necessary assistance to our
customers and our community as they recover from the COVID-19
pandemic and respond to an improving economy. The average
balance of total interest earning assets for the third quarter of
2021 is $112.0 million, or 9.6%,
higher than the third quarter of 2020. Likewise, on the
liability side of the balance sheet, total average deposits for the
third quarter increased by $134.7
million, or 12.8%, since last year.
As stated previously, total loans continue to be significantly
higher than historical levels and averaged $989.2 million in the third quarter of 2021 which
is $56.0 million, or 6.0%, higher
than the $933.1 million average for
the third quarter of 2020, while total average loans for the nine
months of 2021 were $79.9 million, or
8.8%, higher than the 2020 nine-month average. The growth
experienced in our commercial real estate portfolio resulted in
traditional loan fee income increasing by $126,000, or 61.9%, for the quarter and by
$306,000, or 46.3%, for the nine
months when compared to the same time periods from last year.
Total PPP loans averaged $35.8
million for the quarter, decreasing by $32.2 million from last year's third quarter
average as nearly all loans from the first round of this government
stimulus program have been forgiven. The Company recorded a
total of $1.9 million of processing
fee income and interest income from PPP lending activity through
nine months of 2021, which is $529,000, or 37.7%, higher than the 2020
level. Finally, on an end of period basis, excluding total
PPP loans, the total loan portfolio grew by approximately
$85.9 million, or 9.7%, since the end
of the third quarter of 2020.
Note that the level of Paycheck Protection Program fee income in
the third quarter of 2021 decreased significantly when compared to
the second quarter of 2021 by $431,000 as nearly all loans from the first round
of this program completed the forgiveness process during the second
quarter. The remaining PPP loans on the balance sheet from
the second round of this program, which was executed earlier this
year, are just beginning the forgiveness process. We
anticipate that the majority of the unamortized fees associated
with these loans will be recognized as income during the fourth
quarter of 2021.
The Company remains committed to prudently working with our
borrowers that have been hardest hit by the pandemic by granting
them loan payment modifications. Borrower requested modifications
primarily consist of the deferral of principal and/or interest
payments for a period of three to six months. On September 30, 2021, loans totaling approximately
$15.7 million, or 1.6% of total
loans, were on a payment modification plan. These loans
include five 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 as of 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 $206.9 million for the nine months of 2021, which
is $20.0 million, or 10.7%, higher
than the $186.9 million average for
the nine months of last year. The Company continues to be
selective in 2021 when purchasing securities due to the low
interest rate environment. However, a slightly more favorable
yield curve existed earlier this year 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. Similar to our change in strategy to retain more
residential mortgage loan production in our loan portfolio, the
steeper yield curve provided the opportunity to more profitably
deploy a portion of the increased liquidity on our balance sheet
into the securities portfolio as opposed to leaving these funds in
low yielding federal funds sold. This redeployment of funds
also resulted in securities growing between years. Management
also continued to purchase taxable municipals and corporate
securities.
Similar to what is occurring across the banking industry, our
liquidity position continues to be strong due to the significant
influx of deposits. The challenges this increased liquidity
presents are twofold. First, there is the uncertainty
regarding the duration that these increased funds will remain on
the balance sheet which will be determined by customer behavior as
economic conditions change. The second challenge is to
profitably deploy this increased liquidity given the current low
yields on short-term investment products. As a result,
short-term investment balances averaged $71.4 million in the third quarter of 2021 and
$50.9 million for the nine months,
which remains high by historical standards. Late in the third
quarter, the Company benefitted from utilizing a significant
portion of our increased liquidity to allow a $33 million, high cost, institutional deposit to
mature. Overall, this resulted in total short-term
investments declining to a more manageable level. However,
continued diligent monitoring and management of our short-term
investment position is required. Continued loan growth and
prudent investment in securities are critical to achieve the best
return on the remaining excess funds. Overall, for the nine
months of 2021, total interest income on both loans and investments
decreased by $263,000, or 0.7%,
between years despite the increased volumes.
Total interest expense for the nine months of 2021 decreased by
$2.0 million, or 24.7%, when compared
to 2020, due to lower levels of deposit and FHLB borrowings
interest expense. Through nine months, deposit interest
expense in 2021 is lower by $2.2
million, or 35.6%, despite the previously mentioned increase
in deposits that occurred between years. The deposit growth
reflects new deposit inflows as well as the loyalty of the bank's
core deposit base. As mentioned previously, total deposits
did decrease late in the third quarter due to the maturity of a
$33 million institutional deposit
that had a cost of 2.95%. Management elected to replace the
maturity of this high cost, large deposit with the additional
deposits obtained from the Somerset County branch
acquisition. Overall, the maturity of this large deposit
customer account will result in approximately $900,000 of annual interest expense savings with
only $34,000 of this savings realized
in the third quarter of 2021. In addition, management
continues to effectively execute several deposit product pricing
reductions to address the net interest margin challenges presented
by the low interest rate environment. As a result, the
Company experienced deposit cost relief. Specifically, our
total deposit cost averaged 0.45% for the nine months of 2021
compared to 0.79% for the nine months of 2020, representing a
meaningful decrease of 34 basis points. Total Federal Home
Loan Bank (FHLB) borrowings interest expense for the nine months of
2021 is lower by $159,000, or 18.9%,
compared to the same time frame in 2020. The current strong
liquidity position has allowed the Company to paydown short-term
and FHLB advances, which typically cost more than similar term
deposit products. At September 30,
2021, total short-term and FHLB advances were $43.7 million, which is $36.6 million, or 45.6%, lower than the
September 30, 2020 level.
The Company completed a private placement of $27 million in fixed-to-floating rate
subordinated notes on August 26,
2021. The notes have a fixed annual interest rate of 3.75%,
payable until September 1,
2026. From and including September 1,
2026, the interest rate will reset quarterly to the
then-current three-month Secured Overnight Financing Rate (SOFR)
plus 3.11%. The Company used approximately $20 million of the net proceeds to retire its
existing subordinated debt and trust preferred securities that had
a weighted average cost of 7.73%. This action will reduce the
Company's interest expense by approximately $500,000 annually. The remainder of the
proceeds are being utilized for general corporate purposes,
including the downstream of $3.5
million of capital to the bank, which will support
additional loan growth. The original subordinated debt and
trust preferred securities that the new debt replaced did not leave
the balance sheet until September 30,
2021 as per terms required to appropriately retire the
existing debt. Therefore, we had one full month of the new
and the old debt instruments on our balance sheet in September
causing additional interest expense. The Company was also
required to immediately write off the remaining portion of the
unamortized issuance costs from both original debt instruments
which generated $202,000 of
additional borrowings interest expense in the third quarter of
2021. Therefore, in aggregate, when considering the reduced
FHLB borrowings interest cost, total borrowing interest expense
increased by $238,000, or 33.1%, for
the third quarter and increased by $124,000, or 5.7%, for the nine
months.
The Company recorded a $350,000
provision expense for loan losses in the third quarter of 2021 as
compared to a $675,000 provision
expense recorded in the third quarter of 2020. For the nine
months of 2021, the Company recorded an $850,000 provision expense for loan losses
compared to a $1.3 million provision
expense recorded in nine months of 2020. The 2021 provision
for both time periods reflects an improved credit quality outlook
for the overall portfolio as criticized asset levels as well as
delinquent loan balances demonstrated improvement this year.
This is a reflection of the Company's loan officers working
effectively with our customers as the economy improves and as
businesses return to normal operations with limited
restrictions. While the provision is lower for both time
periods in 2021 when compared to 2020, the provision expense did
increase from the second quarter of 2021 by $250,000 due primarily to the loan growth that
the Company experienced during the third quarter. As
demonstrated historically, the Company continues its strategic
conviction that a strong allowance for loan losses is needed, which
has proven to be essential as we support certain borrowers fully
recover from the COVID-19 pandemic. Overall, we believe that
non-performing assets remain well controlled, and such assets have
declined for the second consecutive quarter totaling $3.1 million, or 0.31% of total loans, on
September 30, 2021. The Company
experienced low net loan charge-offs of $71,000, or 0.01% of total loans, in the nine
months of 2021 which compare favorably to net loan charge-offs of
$295,000, or 0.04% of total loans,
for the nine months of 2020. Since the end of the third
quarter of 2020, the balance of the allowance for loan losses
increased by $1.8 million, or 17.9%,
to $12.1 million at September 30, 2021. Management continues to
carefully monitor asset quality with a particular focus on loan
customers that have requested an additional 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
389% coverage of non-performing assets, and 1.22% of total loans,
on September 30, 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
1.25%(1) on September 30,
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 third quarter of 2021 increased
by $112,000, or 2.6%, from the prior
year's third quarter, and increased by $1.5
million, or 12.8%, in the nine months of 2021 when compared
to the nine months of 2020. Wealth management fees increased
by $533,000, or 20.5%, in the third
quarter of 2021 and by $1.4 million,
or 18.4%, for the nine months of 2021 compared to the same time
periods in 2020. The entire wealth management group has
performed exceptionally well through the pandemic, actively working
for clients to increase the value of their holdings in the
financial markets and adding new business. The fair market
value of wealth management assets remained relatively consistent
since the second quarter of 2021 and totaled $2.6 billion and improved from the early pandemic
fair market value low point on March 31,
2020, exceeding by $612.7
million, or 30.9%. Other income improved by
$37,000, or 5.6%, for the quarter and
also improved by $259,000, or 15.6%,
for the nine months when compared to 2020 primarily due to higher
interchange fee income that resulted from increased usage of debit
cards as the pandemic caused consumers to increase online purchases
and many businesses to implement contactless services by not
accepting cash due to health safety concerns. Service charges
on deposit accounts compares favorably for the third quarter by
$54,000, or 26.2%, as consumers are
more active and increasing their spending habits in 2021.
Revenue from bank owned life insurance increased by $60,000, or 37.3%, for the quarter and by
$333,000, or 76.0%, for the nine
months due to the receipt of a $159,000 death claim early in the year and 2021
income being positively impacted by a financial floor taking hold
which caused increased earnings and a higher rate of return on
certain policies. Partially offsetting these favorable items
was net realized gains on loans held for sale decreasing for the
quarter by $492,000, or 97.0%, and by
$447,000, or 41.4%, for the nine
months due to the previously mentioned shift in strategy to retain
more residential mortgage loan production in the loan
portfolio. Through nine months, the Company has retained 78%
of all residential mortgage loan originations into the loan
portfolio in 2021 compared to 30% in the same period of 2020.
Finally, mortgage related fees declined by $80,000, or 49.7%, for the third quarter of 2021
and by $122,000, or 28.2%, for the
nine months due to the lower level of residential mortgage loan
production this year.
The Company's total non-interest expense in the third quarter of
2021 increased by $413,000, or 3.7%,
when compared to the third quarter of 2020 and increased in the
nine months of 2021 by $2.1 million,
or 6.5%, when compared to 2020. Other expenses increased by
$246,000, or 13.9%, for the quarter
and increased by $1.0 million, or
19.0%, for the nine months. The primary reason for the
increase in both time periods was the Company having to recognize
settlement charges in connection with its defined benefit pension
plan in both the second and third quarters of 2021. The amount of
the charge in the third quarter was $269,000, bringing the total settlement charge
recognized for the nine months to $1.1
million. A settlement charge must be recognized when
the total dollar amount of lump sum distributions paid from the
pension plan to retired employees exceed a threshold of expected
annual service and interest costs in the current year. So far
in 2021, all employees that retired have elected to take a lump sum
distribution as opposed to collecting future monthly annuity
payments since the value of the lump sums is elevated due to the
historically low interest rates. It is anticipated that the
Company will be required to recognize an additional settlement
charge in the fourth quarter of 2021 as more people retire.
It is important to note that since the retired employees have
chosen to take the lump sum payments, these individuals are no
longer included in the pension plan. Therefore, the Company's
normal annual pension expense should be lower in the future.
Other items that contributed to the higher level of other expense
were costs for the branch acquisition which totaled $390,000 for the nine-month time period in 2021
and the Company recognizing $92,000
of expense associated with the unfunded commitment reserve so far
in 2021 which represents a $244,000
unfavorable shift from 2020. Salaries and employee benefits
increased by $72,000, or 1.1%, for
the quarter and by $557,000, or 2.8%,
for the nine months of 2021. Factors causing the increase
included greater incentive compensation primarily due to
commissions earned as a result of strong performance in the wealth
management businesses and continued good residential mortgage loan
production. Also contributing to the higher salaries and
employee benefits expense was increased health care costs and
employee merit salary increases. Professional fees are
relatively consistent with the third quarter of 2020 but are higher
by $231,000, or 6.0%, for the nine
months due to an increased level of outside professional services
related costs and increased fees due to the PPP lending
activity. FDIC deposit insurance expense increased by
$30,000, or 21.4%, for the quarter
and by $184,000, or 62.2%, for the
nine months due to an increase in the asset assessment base, which
impacted both time periods, and the benefit of the Small Bank
Assessment Credit being fully utilized in the first quarter of 2020
which impacted the nine-month comparison. Slightly offsetting
these increased items and favorably impacting non-interest expenses
was a lower level of supplies costs by approximately $65,000, or 11.8%, in 2021 as the majority of the
personal protective equipment (PPE) to protect our employees and
customers during the pandemic was purchased last year.
The Company recorded an income tax expense of $341,000, or an effective tax rate of 19.2%, in
the third quarter of 2021. This compares to an income tax
expense of $235,000, or an effective
tax rate of 17.9%, for the third quarter of 2020. Similarly,
for the nine months of 2021, the Company recorded income tax
expense of $1.3 million, or an
effective tax rate of 19.7%, compared to income tax expense of
$966,000 in 2020, or an effective tax
rate of 19.8%. Overall, the increased income tax expense in
2021 is a result of the Company's improved profitability this
year.
The Company had total assets of $1.34
billion, shareholders' equity of $113.7 million, a book value of $6.66 per common share and a tangible book
value(1) of $5.85 per
common share on September 30,
2021. The Company continued to maintain strong capital ratios
that exceed the regulatory defined well capitalized status.
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, branch acquisition, including the 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 benefits of the branch acquisition; estimates of
deposits and other assets to be acquired; settlement charges
related to the defined benefit pension plan; 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.
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(1) Non-GAAP
Financial Information. See "Reconciliation of Non-GAAP
Financial Measures" at end of release.
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AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
SUPPLEMENTAL FINANCIAL PERFORMANCE DATA
September 30, 2021
(Dollars in thousands, except per share and ratio data)
(Unaudited)
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2021
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YEAR TO
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1QTR
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2QTR
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3QTR
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DATE
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PERFORMANCE DATA FOR
THE PERIOD:
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Net income
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$
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2,081
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$
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1,708
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$
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1,431
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$
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5,220
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PERFORMANCE
PERCENTAGES (annualized):
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Return on average
assets
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0.65
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%
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0.51
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%
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0.41
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%
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0.52
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%
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Return on average
equity
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8.04
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6.46
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5.07
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6.48
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Return on average
tangible common equity (B)
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9.08
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7.30
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5.78
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7.35
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Net interest
margin
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3.23
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3.13
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2.85
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3.07
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Net charge-offs
(recoveries) as a percentage of average loans
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0.05
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(0.01)
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(0.01)
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0.01
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Loan loss provision
as a percentage of average loans
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0.17
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0.04
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0.14
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0.12
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Efficiency ratio
(D)
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79.00
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84.35
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84.42
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|
82.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
$
|
0.10
|
|
$
|
0.08
|
|
$
|
0.31
|
|
Average number of
common shares outstanding
|
|
|
17,064
|
|
|
17,073
|
|
|
17,075
|
|
|
17,071
|
|
Diluted
|
|
|
0.12
|
|
|
0.10
|
|
|
0.08
|
|
|
0.31
|
|
Average number of
common shares outstanding
|
|
|
17,101
|
|
|
17,131
|
|
|
17,114
|
|
|
17,114
|
|
Cash dividends paid
per share
|
|
$
|
0.025
|
|
$
|
0.025
|
|
$
|
0.025
|
|
$
|
0.075
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR TO
|
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
|
DATE
|
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,409
|
|
$
|
1,419
|
|
$
|
1,078
|
|
$
|
3,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
PERCENTAGES (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.48
|
%
|
|
0.46
|
%
|
|
0.34
|
%
|
|
0.43
|
%
|
Return on average
equity
|
|
|
5.69
|
|
|
5.63
|
|
|
4.17
|
|
|
5.15
|
|
Return on average
tangible common equity (B)
|
|
|
6.46
|
|
|
6.38
|
|
|
4.72
|
|
|
5.84
|
|
Net interest
margin
|
|
|
3.21
|
|
|
3.30
|
|
|
2.97
|
|
|
3.16
|
|
Net charge-offs
(recoveries) as a percentage of average loans
|
|
|
0.06
|
|
|
0.04
|
|
|
0.04
|
|
|
0.04
|
|
Loan loss provision
as a percentage of average loans
|
|
|
0.08
|
|
|
0.20
|
|
|
0.29
|
|
|
0.19
|
|
Efficiency ratio
(D)
|
|
|
84.46
|
|
|
83.09
|
|
|
84.79
|
|
|
84.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
$
|
0.08
|
|
$
|
0.06
|
|
$
|
0.23
|
|
Average number of
common shares outstanding
|
|
|
17,043
|
|
|
17,052
|
|
|
17,059
|
|
|
17,051
|
|
Diluted
|
|
|
0.08
|
|
|
0.08
|
|
|
0.06
|
|
|
0.23
|
|
Average number of
common shares outstanding
|
|
|
17,099
|
|
|
17,056
|
|
|
17,062
|
|
|
17,063
|
|
Cash dividends paid
per share
|
|
$
|
0.025
|
|
$
|
0.025
|
|
$
|
0.025
|
|
$
|
0.075
|
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
--CONTINUED--
(Dollars in thousands, except per share, statistical, and ratio
data)
(Unaudited)
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
|
3QTR
|
|
|
FINANCIAL CONDITION
DATA AT PERIOD END:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
$
|
1,311,412
|
|
$
|
1,360,583
|
|
$
|
1,338,886
|
|
|
Short-term
investments/overnight funds
|
|
|
18,025
|
|
|
45,459
|
|
|
10,080
|
|
|
Investment
securities
|
|
|
204,193
|
|
|
219,395
|
|
|
214,295
|
|
|
Total loans and loans
held for sale, net of unearned income
|
|
|
986,557
|
|
|
992,865
|
|
|
996,029
|
|
|
Paycheck Protection
Program (PPP) loans
|
|
|
67,253
|
|
|
48,098
|
|
|
29,260
|
|
|
Allowance for loan
losses
|
|
|
11,631
|
|
|
11,752
|
|
|
12,124
|
|
|
Intangible
assets
|
|
|
11,944
|
|
|
13,785
|
|
|
13,777
|
|
|
Deposits
|
|
|
1,117,091
|
|
|
1,168,742
|
|
|
1,144,391
|
|
|
Short-term and FHLB
borrowings
|
|
|
55,149
|
|
|
48,149
|
|
|
43,653
|
|
|
Subordinated debt,
net
|
|
|
7,540
|
|
|
7,546
|
|
|
26,600
|
|
|
Shareholders'
equity
|
|
|
105,331
|
|
|
111,272
|
|
|
113,736
|
|
|
Non-performing
assets
|
|
|
4,245
|
|
|
3,727
|
|
|
3,119
|
|
|
Tangible common
equity ratio (B)
|
|
|
7.19
|
%
|
|
7.24
|
%
|
|
7.54
|
|
%
|
Total capital (to
risk weighted assets) ratio
|
|
|
13.03
|
|
|
12.79
|
|
|
13.61
|
|
|
PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
Book value
|
|
$
|
6.17
|
|
$
|
6.52
|
|
$
|
6.66
|
|
|
Tangible book value
(B)
|
|
|
5.47
|
|
|
5.71
|
|
|
5.85
|
|
|
Market value
(C)
|
|
|
4.06
|
|
|
3.93
|
|
|
3.88
|
|
|
Wealth management
assets – fair market value (A)
|
|
$
|
2,517,810
|
|
$
|
2,614,898
|
|
$
|
2,596,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent
employees
|
|
|
301
|
|
|
300
|
|
|
297
|
|
|
Branch
locations
|
|
|
16
|
|
|
17
|
|
|
17
|
|
|
Common shares
outstanding
|
|
|
17,069,000
|
|
|
17,075,000
|
|
|
17,075,000
|
|
|
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
|
|
Intangible
assets
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
YEAR TO
|
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
|
DATE
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
10,327
|
|
$
|
10,283
|
|
$
|
9,830
|
|
$
|
30,440
|
|
Interest on
investments
|
|
|
1,442
|
|
|
1,555
|
|
|
1,542
|
|
|
4,539
|
|
Total Interest
Income
|
|
|
11,769
|
|
|
11,838
|
|
|
11,372
|
|
|
34,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
1,402
|
|
|
1,306
|
|
|
1,189
|
|
|
3,897
|
|
All
borrowings
|
|
|
675
|
|
|
665
|
|
|
957
|
|
|
2,297
|
|
Total Interest
Expense
|
|
|
2,077
|
|
|
1,971
|
|
|
2,146
|
|
|
6,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
9,692
|
|
|
9,867
|
|
|
9,226
|
|
|
28,785
|
|
Provision for loan
losses
|
|
|
400
|
|
|
100
|
|
|
350
|
|
|
850
|
|
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN LOSSES
|
|
|
9,292
|
|
|
9,767
|
|
|
8,876
|
|
|
27,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management
fees
|
|
|
2,872
|
|
|
3,022
|
|
|
3,137
|
|
|
9,031
|
|
Service charges on
deposit accounts
|
|
|
201
|
|
|
224
|
|
|
260
|
|
|
685
|
|
Net realized gains on
loans held for sale
|
|
|
495
|
|
|
122
|
|
|
15
|
|
|
632
|
|
Mortgage related
fees
|
|
|
130
|
|
|
99
|
|
|
81
|
|
|
310
|
|
Net realized gains on
investment securities
|
|
|
0
|
|
|
84
|
|
|
0
|
|
|
84
|
|
Bank owned life
insurance
|
|
|
332
|
|
|
218
|
|
|
221
|
|
|
771
|
|
Other
income
|
|
|
584
|
|
|
630
|
|
|
702
|
|
|
1,916
|
|
Total Non-Interest
Income
|
|
|
4,614
|
|
|
4,399
|
|
|
4,416
|
|
|
13,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
6,941
|
|
|
6,867
|
|
|
6,910
|
|
|
20,718
|
|
Net occupancy
expense
|
|
|
680
|
|
|
649
|
|
|
651
|
|
|
1,980
|
|
Equipment
expense
|
|
|
390
|
|
|
403
|
|
|
390
|
|
|
1,183
|
|
Professional
fees
|
|
|
1,314
|
|
|
1,396
|
|
|
1,379
|
|
|
4,089
|
|
FDIC deposit
insurance expense
|
|
|
155
|
|
|
155
|
|
|
170
|
|
|
480
|
|
Other
expenses
|
|
|
1,825
|
|
|
2,568
|
|
|
2,020
|
|
|
6,413
|
|
Total Non-Interest
Expense
|
|
|
11,305
|
|
|
12,038
|
|
|
11,520
|
|
|
34,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRETAX
INCOME
|
|
|
2,601
|
|
|
2,128
|
|
|
1,772
|
|
|
6,501
|
|
Income tax
expense
|
|
|
520
|
|
|
420
|
|
|
341
|
|
|
1,281
|
|
NET INCOME
|
|
$
|
2,081
|
|
$
|
1,708
|
|
$
|
1,431
|
|
$
|
5,220
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
YEAR TO
DATE
|
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
10,332
|
|
$
|
10,448
|
|
$
|
9,724
|
|
|
$
|
|
30,504
|
|
|
Interest on
investments
|
|
|
1,612
|
|
|
1,613
|
|
|
1,513
|
|
|
|
|
4,738
|
|
|
Total Interest
Income
|
|
|
11,944
|
|
|
12,061
|
|
|
11,237
|
|
|
|
|
35,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
2,458
|
|
|
1,869
|
|
|
1,727
|
|
|
|
|
6,054
|
|
|
All
borrowings
|
|
|
735
|
|
|
719
|
|
|
719
|
|
|
|
|
2,173
|
|
|
Total Interest
Expense
|
|
|
3,193
|
|
|
2,588
|
|
|
2,446
|
|
|
|
|
8,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
8,751
|
|
|
9,473
|
|
|
8,791
|
|
|
|
|
27,015
|
|
|
Provision for loan
losses
|
|
|
175
|
|
|
450
|
|
|
675
|
|
|
|
|
1,300
|
|
|
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN LOSSES
|
|
|
8,576
|
|
|
9,023
|
|
|
8,116
|
|
|
|
|
25,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management
fees
|
|
|
2,554
|
|
|
2,471
|
|
|
2,604
|
|
|
|
|
7,629
|
|
|
Service charges on
deposit accounts
|
|
|
286
|
|
|
176
|
|
|
206
|
|
|
|
|
668
|
|
|
Net realized gains on
loans held for sale
|
|
|
237
|
|
|
335
|
|
|
507
|
|
|
|
|
1,079
|
|
|
Mortgage related
fees
|
|
|
126
|
|
|
145
|
|
|
161
|
|
|
|
|
432
|
|
|
Net realized gains on
investment securities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|
|
0
|
|
|
Bank owned life
insurance
|
|
|
125
|
|
|
152
|
|
|
161
|
|
|
|
|
438
|
|
|
Other
income
|
|
|
504
|
|
|
488
|
|
|
665
|
|
|
|
|
1,657
|
|
|
Total Non-Interest
Income
|
|
|
3,832
|
|
|
3,767
|
|
|
4,304
|
|
|
|
|
11,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
6,704
|
|
|
6,619
|
|
|
6,838
|
|
|
|
|
20,161
|
|
|
Net occupancy
expense
|
|
|
671
|
|
|
606
|
|
|
608
|
|
|
|
|
1,885
|
|
|
Equipment
expense
|
|
|
395
|
|
|
389
|
|
|
374
|
|
|
|
|
1,158
|
|
|
Professional
fees
|
|
|
1,154
|
|
|
1,331
|
|
|
1,373
|
|
|
|
|
3,858
|
|
|
FDIC deposit
insurance expense
|
|
|
26
|
|
|
130
|
|
|
140
|
|
|
|
|
296
|
|
|
Other
expenses
|
|
|
1,683
|
|
|
1,931
|
|
|
1,774
|
|
|
|
|
5,388
|
|
|
Total Non-Interest
Expense
|
|
|
10,633
|
|
|
11,006
|
|
|
11,107
|
|
|
|
|
32,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRETAX
INCOME
|
|
|
1,775
|
|
|
1,784
|
|
|
1,313
|
|
|
|
|
4,872
|
|
|
Income tax
expense
|
|
|
366
|
|
|
365
|
|
|
235
|
|
|
|
|
966
|
|
|
NET INCOME
|
|
$
|
1,409
|
|
$
|
1,419
|
|
$
|
1,078
|
|
|
$
|
|
3,906
|
|
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
AVERAGE BALANCE SHEET DATA
(Dollars in thousands)
(Unaudited)
|
|
|
|
2021
|
|
2020
|
|
|
|
3QTR
|
|
|
NINE
MONTHS
|
|
3QTR
|
|
|
NINE
MONTHS
|
|
Interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and loans held
for sale, net of unearned income
|
|
$
|
989,164
|
|
$
|
987,523
|
|
$
|
933,139
|
|
$
|
907,593
|
|
Short-term
investments and bank deposits
|
|
|
71,361
|
|
|
50,857
|
|
|
45,553
|
|
|
34,842
|
|
Total investment
securities
|
|
|
217,935
|
|
|
206,905
|
|
|
187,759
|
|
|
186,945
|
|
Total interest
earning assets
|
|
|
1,278,460
|
|
|
1,245,285
|
|
|
1,166,451
|
|
|
1,129,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
|
20,806
|
|
|
18,882
|
|
|
18,512
|
|
|
18,395
|
|
Premises and
equipment
|
|
|
17,678
|
|
|
17,822
|
|
|
18,352
|
|
|
18,497
|
|
Other
assets
|
|
|
82,919
|
|
|
76,147
|
|
|
72,247
|
|
|
70,380
|
|
Allowance for loan
losses
|
|
|
(11,907)
|
|
|
(11,788)
|
|
|
(9,792)
|
|
|
(9,494)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,387,956
|
|
$
|
1,346,348
|
|
$
|
1,265,770
|
|
$
|
1,227,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand
|
|
$
|
220,594
|
|
$
|
210,179
|
|
$
|
177,242
|
|
$
|
172,365
|
|
Savings
|
|
|
131,184
|
|
|
124,120
|
|
|
107,824
|
|
|
102,498
|
|
Money market
|
|
|
281,427
|
|
|
269,509
|
|
|
237,758
|
|
|
232,819
|
|
Other time
|
|
|
334,635
|
|
|
337,726
|
|
|
345,923
|
|
|
344,729
|
|
Total interest
bearing deposits
|
|
|
967,840
|
|
|
941,534
|
|
|
868,747
|
|
|
852,411
|
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased
and other short-term borrowings
|
|
|
0
|
|
|
437
|
|
|
1,429
|
|
|
2,860
|
|
Advances from Federal
Home Loan Bank
|
|
|
45,867
|
|
|
51,717
|
|
|
73,857
|
|
|
62,979
|
|
Guaranteed junior
subordinated deferrable interest debentures
|
|
|
12,794
|
|
|
12,988
|
|
|
13,085
|
|
|
13,085
|
|
Subordinated
debt
|
|
|
18,017
|
|
|
11,106
|
|
|
7,650
|
|
|
7,650
|
|
Lease
liabilities
|
|
|
3,695
|
|
|
3,767
|
|
|
3,911
|
|
|
3,960
|
|
Total interest
bearing liabilities
|
|
|
1,048,213
|
|
|
1,021,549
|
|
|
968,679
|
|
|
942,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
220,745
|
|
|
210,758
|
|
|
185,108
|
|
|
171,767
|
|
Other
liabilities
|
|
|
6,970
|
|
|
6,385
|
|
|
9,170
|
|
|
11,192
|
|
Shareholders'
equity
|
|
|
112,028
|
|
|
107,656
|
|
|
102,813
|
|
|
101,254
|
|
Total liabilities and
shareholders' equity
|
|
$
|
1,387,956
|
|
$
|
1,346,348
|
|
$
|
1,265,770
|
|
$
|
1,227,158
|
|
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
|
|
|
|
|
|
|
|
|
|
|
YEAR TO
|
|
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
|
DATE
|
|
|
RETURN ON AVERAGE
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,081
|
|
$
|
1,708
|
|
$
|
1,431
|
|
$
|
5,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
104,931
|
|
|
106,009
|
|
|
112,028
|
|
|
107,656
|
|
|
Less: Average
intangible assets
|
|
|
11,944
|
|
|
12,194
|
|
|
13,780
|
|
|
12,640
|
|
|
Average tangible
common equity
|
|
|
92,987
|
|
|
93,815
|
|
|
98,248
|
|
|
95,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity
(annualized)
|
|
|
9.08
|
%
|
|
7.30
|
%
|
|
5.78
|
%
|
|
7.35
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
|
3QTR
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
105,331
|
|
$
|
111,272
|
|
$
|
113,736
|
|
|
|
|
|
Less: Intangible
assets
|
|
|
11,944
|
|
|
13,785
|
|
|
13,777
|
|
|
|
|
|
Tangible common
equity
|
|
|
93,387
|
|
|
97,487
|
|
|
99,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
1,311,412
|
|
|
1,360,583
|
|
|
1,338,886
|
|
|
|
|
|
Less: Intangible
assets
|
|
|
11,944
|
|
|
13,785
|
|
|
13,777
|
|
|
|
|
|
Tangible
assets
|
|
|
1,299,468
|
|
|
1,346,798
|
|
|
1,325,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
|
7.19
|
%
|
|
7.24
|
%
|
|
7.54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares
outstanding
|
|
|
17,069,000
|
|
|
17,075,000
|
|
|
17,075,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per share
|
|
$
|
5.47
|
|
$
|
5.71
|
|
$
|
5.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
|
YEAR TO
DATE
|
|
RETURN ON AVERAGE
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,409
|
|
$
|
1,419
|
|
$
|
1,078
|
|
$
|
3,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
99,612
|
|
|
101,336
|
|
|
102,813
|
|
|
101,254
|
|
Less: Average
intangible assets
|
|
|
11,944
|
|
|
11,944
|
|
|
11,944
|
|
|
11,944
|
|
Average tangible
common equity
|
|
|
87,668
|
|
|
89,392
|
|
|
90,869
|
|
|
89,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
|
|
6.46
|
%
|
|
6.38
|
%
|
|
4.72
|
%
|
|
5.84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
|
|
4QTR
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
100,840
|
|
$
|
102,604
|
|
$
|
103,369
|
|
|
$
|
104,399
|
|
Less: Intangible
assets
|
|
|
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: Intangible
assets
|
|
|
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.
|
|
|
|
September
30, 2021
|
|
ALLOWANCE RESERVE
COVERAGE
|
|
|
|
|
Allowance for loan
losses
|
|
$
|
12,124
|
|
|
|
|
|
|
Total loans, net of
unearned income
|
|
|
996,029
|
|
|
|
|
|
|
Reserve
coverage
|
|
|
1.22
|
%
|
|
|
|
|
|
Reserve coverage
to total loans, excluding PPP loans:
|
|
|
|
|
Allowance for loan
losses
|
|
$
|
12,124
|
|
|
|
|
|
|
Total loans, net of
unearned income
|
|
|
996,029
|
|
PPP loans
|
|
|
(29,260)
|
|
|
|
|
966,769
|
|
|
|
|
|
|
Non-GAAP reserve
coverage
|
|
|
1.25
|
%
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ameriserv-financial-reports-increased-earnings-for-the-third-quarter-and-first-nine-months-of-2021-301402644.html
SOURCE AmeriServ Financial, Inc.