JOHNSTOWN, Pa., April 19, 2022 /PRNewswire/ -- AmeriServ
Financial, Inc. (NASDAQ: ASRV) reported first quarter 2022 net
income of $2,418,000, or $0.14 per diluted common share. This
earnings performance represented a $337,000, or 16.2%, increase from the first
quarter of 2021 when net income totaled $2,081,000, or $0.12 per diluted common share. The
following table highlights the Company's financial performance for
the quarters ended March 31, 2022 and
2021:
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First
Quarter
2022
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First
Quarter
2021
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$ Change
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% Change
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Net income
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$
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2,418,000
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$
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2,081,000
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$
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337,000
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16.2
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%
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Diluted earnings per
share
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$
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0.14
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$
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0.12
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$
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0.02
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16.7
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%
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Jeffrey A. Stopko, President and
Chief Executive Officer, commented on the first quarter 2022
financial results: "The improved earnings performance in the first
quarter of 2022 reflects the full benefit of several important
strategic actions that our company executed in 2021 along with the
successful management of our asset quality throughout the pandemic.
AmeriServ Financial continues to benefit from strong levels of
loans, deposits, and fee income from our wealth management
business. As a result of this improvement in the earnings power of
the Company, the Board of Directors increased the quarterly common
stock cash dividend by 20% in order to allow our shareholders to
directly benefit from these higher earnings."
The Company's net interest income in the first quarter of 2022
increased by $75,000, or 0.8%, from
the prior year's first quarter while the net interest margin of
3.14% was nine basis points lower than the net interest margin of
3.23% for the first quarter of 2021. The U.S. economy
continued its recovery and performed satisfactorily during the
first quarter with very little impact from the Omnicron variant as
labor markets continued to strengthen and productivity growth
remained high. However, uncertainty and volatility remain due
to supply chain issues, anticipated interest rate changes, consumer
confidence, and high inflation. The size of the Company's
balance sheet remains high by historical standards due to the
growth experienced in both total loans and total deposits due to
business development efforts and the government's stimulus programs
from the previous two years. However, with government
stimulus ending in 2021, both total loans and total deposits have
demonstrated stabilization since the second half of last
year. First quarter 2022 results were favorably impacted by
the strategic actions taken by management in 2021 to lower funding
costs and better position the Company to meet the continuing
challenge of net interest margin compression. The termination of
the Paycheck Protection Program (PPP) caused a reduced level of fee
income and was the primary factor causing total interest income to
decrease between the first quarter of 2022 and last year's first
quarter. However, deposit and borrowing interest expense
declined by more than the decrease in total interest income,
resulting in net interest income improving in the first quarter of
2022 compared to last year's first quarter. First quarter
earnings results also reflect the impact of strengthening asset
quality, which enabled the Company to recognize a loan loss
provision recovery during the first quarter of 2022. Overall,
the increase to net interest income, along with the loan loss
provision recovery more than offset a lower level of non-interest
income and higher non-interest expense resulting in an improved
earnings performance for the first quarter of 2022.
Total average loans in the first quarter of 2022 are slightly
lower than the 2021 first quarter average by $2.3 million, or 0.2%. Total loan
production has been slower early this year as new originations have
been generally offset by loan payoff activity. However, given the
core loan growth experienced during 2021 and excluding PPP loans,
total average loans in the first quarter of 2022 exceed the 2021
first quarter average by $49.3
million, or 5.4%, as growth of commercial real estate (CRE)
and residential mortgage loans more than offset a decrease in the
level of commercial & industrial loans. Residential
mortgage loan production is down in the first quarter of 2022 when
compared to last year's first quarter. Refinance transactions
have been severely impacted with the quick escalation of interest
rates since the beginning of 2022. Residential mortgage loan
production totaled $8.7 million in
the first quarter of 2022 and was 70.8% lower than the production
level of $29.7 million achieved in
the first quarter of 2021. Total PPP loans averaged $12.1 million in the first quarter of 2022,
representing a decrease of $51.6
million, or 81.1%, from the first quarter of last
year. Additionally, on an end of period basis, the total
volume of PPP loans is only $7.8
million as we continue to work with our customers through
the SBA forgiveness process. Overall, despite the higher
average volumes of CRE and residential mortgage loans, total loan
interest income declined by $831,000,
or 8.0%, in the 2022 first quarter compared to the 2021 first
quarter. This decrease is primarily due to the Company
recording a total of $240,000 of
processing fee income and interest income from PPP lending activity
in the 2022 first quarter, which is $657,000, or 73.2%, lower than PPP income in the
first quarter of 2021. Finally, on an end of period basis,
excluding total PPP loans, the total loan portfolio is
approximately $51.6 million, or 5.6%,
higher since the end of the first quarter of 2021.
Total investment securities averaged $221.5 million for the first quarter of 2022
which is $31.0 million, or 16.3%,
higher than the $190.4 million
average for last year's first quarter. The U.S. Treasury
yield curve increased and became more favorable for purchasing
activity during the first quarter due to the market's anticipation
of the Federal Reserve tightening monetary policy. The 2-year
to 10-year portion of the curve increased by approximately 70 to
150 basis points since the beginning of the year, with shorter
yields in that range increasing to a higher degree than the longer
yields. Overall, the higher rates resulted in improved yields
for federal agency mortgage-backed securities and federal agency
bonds. Management purchased more of these investments for our
portfolio and, therefore, was able 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
contributed to total securities growing between years.
Management also continued to purchase taxable municipals and
corporate securities to maintain a well-diversified
portfolio. Overall, the average balance of total
interest earning assets for the first quarter of 2022 was
$44.4 million, or 3.7%, higher than
the first quarter of 2021 while total interest income decreased by
$741,000, or 6.3%, between years
despite the increased average volume.
Our liquidity position continues to be strong as total
short-term investments averaged $46.5
million in the first quarter of 2022, which is $15.7 million, or 50.8%, higher than the 2021
first quarter average. Although eased somewhat by the
additional investment in the securities portfolio, the challenges
remain as to the uncertainty regarding the duration that these
increased funds will remain on the balance sheet. Diligent
monitoring and management of our short-term investment position
remains a priority. Continued loan growth and prudent
investment in securities are critical to achieve the best return on
the remaining liquid funds with management expecting to continue to
be active with new security purchases in the second quarter of 2022
given the increase in interest rates.
On the liability side of the balance sheet, total average
deposits are $55.5 million, or 5.0%,
higher in the first quarter of 2022 compared to the first quarter
of 2021. The higher deposit volume reflects the continued
favorable impact of government stimulus which provided support to
many Americans and financial assistance to municipalities and
school districts during the pandemic. Deposit volumes were
also favorably impacted by the Company's successful business
development efforts and the 2021 Somerset County branch
acquisition. Overall, the loan to deposit ratio averaged
84.5% in the first quarter of 2022, which indicates that the
Company has ample capacity to continue to grow its loan portfolio
and is strongly positioned to support our customers and our
community as the economy improves.
Total interest expense for the first quarter of 2022 decreased
by $816,000, or 39.3%, when compared
to the first quarter of 2021, due to lower levels of both deposit
and borrowing interest expense. Deposit interest expense was
lower by $606,000, or 43.2%, despite
the higher volume of total deposits reflecting new deposit inflows
as well as the loyalty of the bank's core deposit base. Also,
the late third quarter 2021 maturity of a large, high-cost
institutional deposit, which was replaced by lower cost funds from
the branch acquisition, resulted in significant interest expense
savings. While the low interest rate environment caused net
interest margin challenges, the low rates have allowed management
to somewhat offset this pressure by effectively executing several
deposit product pricing reductions. As a result, the Company
experienced deposit cost relief. Specifically, our total
deposit cost averaged 0.28% in the first quarter of 2022 compared
to 0.52% in the first quarter of 2021, representing a meaningful
decrease of 24 basis points. Overall, management believes
that total deposit cost has bottomed out given the recent increase
to national interest rates and the expectation of additional
short-term interest rate increases by the Federal Reserve
throughout 2022. However, given the Company's strong liquidity
position, along with that of the banking industry, we expect that
deposit rate increases will occur in a slow controlled
manner.
Total borrowings interest expense decreased by $210,000, or 31.1%, when comparing the first
quarter of 2022 to last year's first quarter. The decrease
between years results from the favorable impact of the 2021
subordinated debt offering which was used to replace higher cost
debt. This transaction effectively lowered debt cost on these
long-term funds by nearly 4.00%. This savings is recognized
even though the size of the new subordinated debt is $7 million higher than the debt instruments it
replaced. The remaining portion of the favorable variance in
borrowings interest expense between the first quarter of 2022 and
the first quarter of 2021 is due to reduced interest expense from
Federal Home Loan Bank (FHLB) borrowings. The average balance
of total short-term and FHLB borrowings is lower in the first
quarter of 2022 by $18.9 million, or
31.5%, as strength of the Company's liquidity position allows
management to let higher cost FHLB term advances mature and not be
replaced.
The Company recorded a $400,000
loan loss provision recovery in the first quarter of 2022 as
compared to a $400,000 provision
expense recorded in the first quarter of 2021, representing an
$800,000 favorable shift in this line
item. The 2022 provision recovery reflects improved credit
quality for the overall portfolio due to several loan upgrades,
relative stability in the loan portfolio size, and especially lower
levels of criticized assets and delinquent loans since the fourth
quarter of 2021. As demonstrated historically, the Company
continues its strategic conviction that a strong allowance for loan
losses is needed, which has proven to be essential given the
support provided to certain borrowers as they fully recover from
the COVID-19 pandemic. Overall, we believe that
non-performing assets remain well controlled totaling $3.4 million, or 0.35% of total loans, on
March 31, 2022. The Company
continues to experience low net loan charge-offs, which were
$76,000, or 0.03% of total average
loans, in first quarter of 2022 and compares favorably to net loan
charge-offs of $114,000, or 0.05% of
total average loans, for the first quarter of 2021. Even
though the Company recognized a loan loss provision recovery during
the first quarter, the balance in the allowance for loan losses at
March 31, 2022 is still higher than
the balance of the allowance at March 31,
2021 by $291,000, or
2.5%. The Company remains committed to prudently working with
our borrowers that have been hardest hit by the pandemic by
granting them loan payment modifications. On March 31, 2022, loans totaling approximately
$7.7 million, or only 0.8% of total
loans, were on a payment modification plan. These loans
include five commercial borrowers primarily in the hospitality and
personal care industries. Management continues to carefully
monitor asset quality with a particular focus on these customers
that have requested payment deferrals. In summary, the allowance
for loan losses provided 351% coverage of non-performing assets,
and 1.22% of total loans, on March 31,
2022, compared to 373% coverage of non-performing assets,
and 1.26% of total loans, on December
31, 2021.
Total non-interest income in the first quarter of 2022 decreased
by $279,000, or 6.0%, from the prior
year's first quarter. Net realized gains on loans held for
sale decreased by $400,000, or 80.8%,
due to the lower level of residential mortgage loan production
which reflects a reduced level of mortgage loan refinance
activity. The reduced level of mortgage loan production also
caused mortgage related fees to decline by $97,000, or 74.6%. Revenue from bank owned
life insurance (BOLI) also dropped by $123,000, or 37.0%, after the Company received a
death claim during last year's first quarter. These
unfavorable items were partially offset by wealth management fees
increasing by $293,000, or 10.2%, in
the first quarter of 2022 compared to the same time period in 2021.
The entire wealth management group continues to perform
exceptionally well, 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
declined since the fourth quarter of 2021 and totaled $2.6 billion but has increased from the early
pandemic fair market value low point on March 31, 2020 by $649.1
million, or 32.7%. Finally, service charges on deposit
accounts increased by $71,000, or
35.3%, as consumers are more active this year, increasing their
spending habits.
The Company's total non-interest expense in the first quarter of
2022 increased by $174,000, or 1.5%,
when compared to the first quarter of 2021. The increase was
due to higher salaries & employee benefits by $464,000, or 6.7%, and increased occupancy
expense by $61,000, or 9.0%.
Within total salaries & benefits expense, salaries cost
increased by $369,000 due to merit
increases and slightly higher full-time equivalent employees.
Also, there were additional increases to payroll taxes and health
care costs. Partially offsetting these higher costs within
salaries & benefits was lower incentive compensation by
$107,000, or 19.6%, due to the
reduced level of loan production. The higher level of net
occupancy expenses is due to increased utilities cost along with
maintenance & repair expense which was primarily related to the
new branch office. Decreasing in the first quarter of 2022
when compared to the first quarter of 2021 were other expenses by
$358,000, or 19.6%. The
decrease is due to a lower level of pension related costs by
$272,000 due to improved asset
returns within the pension plan. Also contributing to the lower
level of other expense was no additional costs related to a branch
acquisition in 2022 after $110,000 of
expense was recognized for this purpose in the first quarter of
2021. Other expense was also favorably impacted by a
$41,000 credit for the unfunded
commitment reserve after $37,000 of
expense was recognized in the first quarter of last year, resulting
in a $78,000 favorable shift.
Finally, the Company recorded an income tax expense of $605,000, or an effective tax rate of 20.0%, in
the first quarter of 2022. This compares to an income tax
expense of $520,000, or an effective
tax rate of 20.0%, for the first quarter of 2021.
COMMON STOCK DIVIDEND INCREASE
The Company also announced that its Board of Directors declared
a $0.03 per share quarterly common
stock cash dividend. This new quarterly dividend amount
represents a 20% increase from the previous $0.025 per share quarterly dividend. The
cash dividend is payable May 23, 2022
to shareholders of record on May 9,
2022. This increased cash dividend represents an approximate
3.0% annualized yield using a recent common stock price of
$4.00 and represents a payout ratio
of 21.4% based upon the Company's reported first quarter 2022
earnings per share of $0.14.
The Company had total assets of $1.3
billion, shareholders' equity of $113.7 million, a book value of $6.65 per common share and a tangible book
value(1) of $5.84 per
common share on March 31, 2022.
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, 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, the level of
inflation, 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; 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, 2021. 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.
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AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
SUPPLEMENTAL FINANCIAL
PERFORMANCE DATA
March 31,
2022
(Dollars in thousands,
except per share and ratio data)
(Unaudited)
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2022
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1QTR
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PERFORMANCE DATA FOR
THE PERIOD:
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Net income
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$
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2,418
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PERFORMANCE PERCENTAGES
(annualized):
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Return on average
assets
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0.73
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%
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Return on average
equity
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8.48
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Return on average
tangible common equity (B)
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9.62
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Net interest
margin
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3.14
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Net charge-offs
(recoveries) as a percentage of average loans
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0.03
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Loan loss provision
(credit) as a percentage of average loans
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(0.17)
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Efficiency ratio
(D)
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81.38
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EARNINGS PER COMMON
SHARE:
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Basic
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$
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0.14
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Average number of
common shares outstanding
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17,094
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Diluted
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0.14
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Average number of
common shares outstanding
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17,146
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Cash dividends paid per
share
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$
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0.025
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2021
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FULL
YEAR
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1QTR
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2QTR
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3QTR
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4QTR
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2021
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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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1,852
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$
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7,072
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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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0.54
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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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|
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6.46
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|
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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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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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3.26
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3.15
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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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0.00
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Loan loss provision
(credit) as a percentage of average loans
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|
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0.17
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|
0.04
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|
0.14
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|
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0.10
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|
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0.11
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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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|
|
82.73
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82.60
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EARNINGS PER COMMON
SHARE:
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Basic
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$
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0.12
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$
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0.10
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$
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0.08
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$
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0.11
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$
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0.41
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Average number of
common shares outstanding
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17,064
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17,073
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17,075
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17,080
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17,073
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Diluted
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0.12
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0.10
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0.08
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0.11
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0.41
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Average number of
common shares outstanding
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17,101
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17,131
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|
|
17,114
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|
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17,119
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17,114
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Cash dividends paid per
share
|
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$
|
0.025
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$
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0.025
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$
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0.025
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$
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0.025
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$
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0.100
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AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
--CONTINUED--
(Dollars in thousands,
except per share, statistical, and ratio data)
(Unaudited)
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2022
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1QTR
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FINANCIAL CONDITION
DATA AT PERIOD END:
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Assets
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$
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1,331,265
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Short-term
investments/overnight funds
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13,588
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Investment
securities
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223,286
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Total loans and loans
held for sale, net of unearned income
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978,692
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Paycheck Protection
Program (PPP) loans (E)
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7,835
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Allowance for loan
losses
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11,922
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Intangible
assets
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13,761
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Deposits
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1,140,889
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Short-term and FHLB
borrowings
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37,863
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Guaranteed junior
subordinated deferrable interest debentures
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0
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Subordinated debt,
net
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26,613
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Shareholders'
equity
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113,692
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Non-performing
assets
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3,401
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Tangible common equity
ratio (B)
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7.58
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%
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Total capital (to risk
weighted assets) ratio
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14.01
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PER COMMON
SHARE:
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Book value
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$
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6.65
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Tangible book value
(B)
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5.84
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Market value
(C)
|
|
|
4.04
|
|
Wealth management
assets – fair market value (A)
|
|
$
|
2,633,096
|
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
Full-time equivalent
employees
|
|
|
301
|
|
Branch
locations
|
|
|
17
|
|
Common shares
outstanding
|
|
|
17,109,084
|
|
2021
|
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
4QTR
|
|
FINANCIAL CONDITION
DATA AT PERIOD END:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
$
|
1,311,412
|
|
$
|
1,360,583
|
|
$
|
1,338,886
|
|
$
|
1,335,560
|
|
Short-term
investments/overnight funds
|
|
|
18,025
|
|
|
45,459
|
|
|
10,080
|
|
|
16,353
|
|
Investment
securities
|
|
|
204,193
|
|
|
219,395
|
|
|
214,295
|
|
|
216,922
|
|
Total loans and loans
held for sale, net of unearned income
|
|
|
986,557
|
|
|
992,865
|
|
|
996,029
|
|
|
986,037
|
|
Paycheck Protection
Program (PPP) loans (E)
|
|
|
67,253
|
|
|
48,098
|
|
|
29,260
|
|
|
17,311
|
|
Allowance for loan
losses
|
|
|
11,631
|
|
|
11,752
|
|
|
12,124
|
|
|
12,398
|
|
Intangible
assets
|
|
|
11,944
|
|
|
13,785
|
|
|
13,777
|
|
|
13,769
|
|
Deposits
|
|
|
1,117,091
|
|
|
1,168,742
|
|
|
1,144,391
|
|
|
1,139,378
|
|
Short-term and FHLB
borrowings
|
|
|
55,149
|
|
|
48,149
|
|
|
43,653
|
|
|
42,653
|
|
Guaranteed junior
subordinated deferrable interest debentures
|
|
|
12,974
|
|
|
12,978
|
|
|
0
|
|
|
0
|
|
Subordinated debt,
net
|
|
|
7,540
|
|
|
7,546
|
|
|
26,600
|
|
|
26,603
|
|
Shareholders'
equity
|
|
|
105,331
|
|
|
111,272
|
|
|
113,736
|
|
|
116,549
|
|
Non-performing
assets
|
|
|
4,245
|
|
|
3,727
|
|
|
3,119
|
|
|
3,323
|
|
Tangible common equity
ratio (B)
|
|
|
7.19
|
%
|
|
7.24
|
%
|
|
7.54
|
%
|
|
7.78
|
%
|
Total capital (to risk
weighted assets) ratio
|
|
|
13.03
|
|
|
12.79
|
|
|
13.61
|
|
|
14.04
|
|
PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
|
|
$
|
6.17
|
|
$
|
6.52
|
|
$
|
6.66
|
|
$
|
6.82
|
|
Tangible book value
(B)
|
|
|
5.47
|
|
|
5.71
|
|
|
5.85
|
|
|
6.02
|
|
Market value
(C)
|
|
|
4.06
|
|
|
3.93
|
|
|
3.88
|
|
|
3.86
|
|
Wealth management
assets – fair market value (A)
|
|
$
|
2,517,810
|
|
$
|
2,614,898
|
|
$
|
2,596,672
|
|
$
|
2,712,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent
employees
|
|
|
301
|
|
|
300
|
|
|
297
|
|
|
304
|
|
Branch
locations
|
|
|
16
|
|
|
17
|
|
|
17
|
|
|
17
|
|
Common shares
outstanding
|
|
|
17,069,000
|
|
|
17,075,000
|
|
|
17,075,000
|
|
|
17,081,500
|
|
_____________________________
|
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.
|
(E)
|
Paycheck Protection
Program (PPP) loans are included in total loans and loans held for
sale, net of unearned income.
|
|
|
|
|
|
|
|
|
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
CONSOLIDATED STATEMENT
OF INCOME
(Dollars in
thousands)
(Unaudited)
|
|
2022
|
|
|
|
1QTR
|
|
INTEREST
INCOME
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
9,496
|
|
Interest on
investments
|
|
|
1,532
|
|
Total Interest
Income
|
|
|
11,028
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
Deposits
|
|
|
796
|
|
All
borrowings
|
|
|
465
|
|
Total Interest
Expense
|
|
|
1,261
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
9,767
|
|
Provision (credit) for
loan losses
|
|
|
(400)
|
|
NET INTEREST INCOME
AFTER PROVISION
(CREDIT) FOR LOAN LOSSES
|
|
|
10,167
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
Wealth management
fees
|
|
|
3,165
|
|
Service charges on
deposit accounts
|
|
|
272
|
|
Net realized gains on
loans held for sale
|
|
|
95
|
|
Mortgage related
fees
|
|
|
33
|
|
Net realized gains on
investment securities
|
|
|
0
|
|
Bank owned life
insurance
|
|
|
209
|
|
Other income
|
|
|
561
|
|
Total Non-Interest
Income
|
|
|
4,335
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
Salaries and employee
benefits
|
|
|
7,405
|
|
Net occupancy
expense
|
|
|
741
|
|
Equipment
expense
|
|
|
397
|
|
Professional
fees
|
|
|
1,324
|
|
FDIC deposit insurance
expense
|
|
|
145
|
|
Other
expenses
|
|
|
1,467
|
|
Total Non-Interest
Expense
|
|
|
11,479
|
|
|
|
|
|
|
PRETAX
INCOME
|
|
|
3,023
|
|
Income tax
expense
|
|
|
605
|
|
NET INCOME
|
|
$
|
2,418
|
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
|
2QTR
|
|
|
3QTR
|
|
|
|
4QTR
|
|
|
|
FULL YEAR
2021
|
|
|
|
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
10,327
|
|
$
|
10,283
|
|
$
|
9,830
|
|
|
$
|
10,145
|
|
|
$
|
|
40,585
|
|
|
|
|
|
Interest on
investments
|
|
|
1,442
|
|
|
1,555
|
|
|
1,542
|
|
|
|
1,545
|
|
|
|
|
6,084
|
|
|
|
|
|
Total Interest
Income
|
|
|
11,769
|
|
|
11,838
|
|
|
11,372
|
|
|
|
11,690
|
|
|
|
|
46,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
1,402
|
|
|
1,306
|
|
|
1,189
|
|
|
|
909
|
|
|
|
|
4,806
|
|
|
|
|
|
All
borrowings
|
|
|
675
|
|
|
665
|
|
|
957
|
|
|
|
483
|
|
|
|
|
2,780
|
|
|
|
|
|
Total Interest
Expense
|
|
|
2,077
|
|
|
1,971
|
|
|
2,146
|
|
|
|
1,392
|
|
|
|
|
7,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
9,692
|
|
|
9,867
|
|
|
9,226
|
|
|
|
10,298
|
|
|
|
|
39,083
|
|
|
|
|
|
Provision (credit) for
loan losses
|
|
|
400
|
|
|
100
|
|
|
350
|
|
|
|
250
|
|
|
|
|
1,100
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
(CREDIT) FOR LOAN LOSSES
|
|
|
9,292
|
|
|
9,767
|
|
|
8,876
|
|
|
|
10,048
|
|
|
|
|
37,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management
fees
|
|
|
2,872
|
|
|
3,022
|
|
|
3,137
|
|
|
|
2,955
|
|
|
|
|
11,986
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
|
201
|
|
|
224
|
|
|
260
|
|
|
|
280
|
|
|
|
|
965
|
|
|
|
|
|
Net realized gains on
loans held for sale
|
|
|
495
|
|
|
122
|
|
|
15
|
|
|
|
32
|
|
|
|
|
664
|
|
|
|
|
|
Mortgage related
fees
|
|
|
130
|
|
|
99
|
|
|
81
|
|
|
|
48
|
|
|
|
|
358
|
|
|
|
|
|
Net realized gains on
investment securities
|
|
|
0
|
|
|
84
|
|
|
0
|
|
|
|
0
|
|
|
|
|
84
|
|
|
|
|
|
Bank owned life
insurance
|
|
|
332
|
|
|
218
|
|
|
221
|
|
|
|
346
|
|
|
|
|
1,117
|
|
|
|
|
|
Other income
|
|
|
584
|
|
|
630
|
|
|
702
|
|
|
|
671
|
|
|
|
|
2,587
|
|
|
|
|
|
Total Non-Interest
Income
|
|
|
4,614
|
|
|
4,399
|
|
|
4,416
|
|
|
|
4,332
|
|
|
|
|
17,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
6,941
|
|
|
6,867
|
|
|
6,910
|
|
|
|
7,129
|
|
|
|
|
27,847
|
|
|
|
|
|
Net occupancy
expense
|
|
|
680
|
|
|
649
|
|
|
651
|
|
|
|
640
|
|
|
|
|
2,620
|
|
|
|
|
|
Equipment
expense
|
|
|
390
|
|
|
403
|
|
|
390
|
|
|
|
399
|
|
|
|
|
1,582
|
|
|
|
|
|
Professional
fees
|
|
|
1,314
|
|
|
1,396
|
|
|
1,379
|
|
|
|
1,367
|
|
|
|
|
5,456
|
|
|
|
|
|
FDIC deposit insurance
expense
|
|
|
155
|
|
|
155
|
|
|
170
|
|
|
|
175
|
|
|
|
|
655
|
|
|
|
|
|
Other
expenses
|
|
|
1,825
|
|
|
2,568
|
|
|
2,020
|
|
|
|
2,397
|
|
|
|
|
8,810
|
|
|
|
|
|
Total Non-Interest
Expense
|
|
|
11,305
|
|
|
12,038
|
|
|
11,520
|
|
|
|
12,107
|
|
|
|
|
46,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRETAX
INCOME
|
|
|
2,601
|
|
|
2,128
|
|
|
1,772
|
|
|
|
2,273
|
|
|
|
|
8,774
|
|
|
|
|
|
Income tax
expense
|
|
|
520
|
|
|
420
|
|
|
341
|
|
|
|
421
|
|
|
|
|
1,702
|
|
|
|
|
|
NET INCOME
|
|
$
|
2,081
|
|
$
|
1,708
|
|
$
|
1,431
|
|
|
$
|
1,852
|
|
|
$
|
|
7,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
AVERAGE BALANCE SHEET
DATA
(Dollars in
thousands)
(Unaudited)
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
1QTR
|
|
|
1QTR
|
Interest earning
assets:
|
|
|
|
|
|
|
|
Loans and loans held
for sale, net of unearned income
|
|
$
|
979,548
|
|
|
$
|
981,877
|
Short-term investments
and bank deposits
|
|
|
46,531
|
|
|
|
30,852
|
Total investment
securities
|
|
|
221,459
|
|
|
|
190,446
|
Total interest earning
assets
|
|
|
1,247,538
|
|
|
|
1,203,175
|
|
|
|
|
|
|
|
|
Non-interest earning
assets:
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
|
17,765
|
|
|
|
18,071
|
Premises and
equipment
|
|
|
17,376
|
|
|
|
17,983
|
Other assets
|
|
|
81,563
|
|
|
|
70,260
|
Allowance for loan
losses
|
|
|
(12,511)
|
|
|
|
(11,582)
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,351,731
|
|
|
$
|
1,297,907
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
Interest bearing
deposits:
|
|
|
|
|
|
|
|
Interest
bearing demand
|
|
$
|
229,273
|
|
|
$
|
195,972
|
Savings
|
|
|
135,887
|
|
|
|
115,632
|
Money
market
|
|
|
291,139
|
|
|
|
246,895
|
Other
time
|
|
|
289,745
|
|
|
|
349,605
|
Total interest bearing
deposits
|
|
|
946,044
|
|
|
|
908,104
|
Borrowings:
|
|
|
|
|
|
|
|
Federal
funds purchased and other short-term borrowings
|
|
|
0
|
|
|
|
1,180
|
Advances
from Federal Home Loan Bank
|
|
|
41,195
|
|
|
|
58,949
|
Guaranteed
junior subordinated deferrable interest debentures
|
|
|
0
|
|
|
|
13,085
|
Subordinated
debt
|
|
|
27,000
|
|
|
|
7,650
|
Lease
liabilities
|
|
|
3,532
|
|
|
|
3,841
|
Total interest bearing
liabilities
|
|
|
1,017,771
|
|
|
|
992,809
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
212,895
|
|
|
|
195,305
|
Other
liabilities
|
|
|
5,407
|
|
|
|
4,862
|
Shareholders'
equity
|
|
|
115,658
|
|
|
|
104,931
|
Total liabilities and
shareholders' equity
|
|
$
|
1,351,731
|
|
|
$
|
1,297,907
|
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. 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.
|
|
|
|
2022
|
|
|
|
|
|
|
|
1QTR
|
|
RETURN ON AVERAGE
TANGIBLE COMMON EQUITY
|
|
|
|
|
Net income
|
|
$
|
2,418
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
115,658
|
|
Less: Average
intangible assets
|
|
|
13,766
|
|
Average tangible common
equity
|
|
|
101,892
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
|
|
9.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
113,692
|
|
Less: Intangible
assets
|
|
|
13,761
|
|
Tangible common
equity
|
|
|
99,931
|
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
Total assets
|
|
|
1,331,265
|
|
Less: Intangible
assets
|
|
|
13,761
|
|
Tangible
assets
|
|
|
1,317,504
|
|
|
|
|
|
|
Tangible common equity
ratio
|
|
|
7.58
|
%
|
|
|
|
|
|
Total shares
outstanding
|
|
|
17,109,084
|
|
|
|
|
|
|
Tangible book value per
share
|
|
$
|
5.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
|
4QTR
|
|
|
FULL YEAR 2021
|
|
RETURN ON AVERAGE
TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,081
|
|
$
|
1,708
|
|
$
|
1,431
|
|
$
|
1,852
|
|
$
|
7,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
104,931
|
|
|
106,009
|
|
|
112,028
|
|
|
113,755
|
|
|
109,181
|
|
Less: Average
intangible assets
|
|
|
11,944
|
|
|
12,194
|
|
|
13,780
|
|
|
13,773
|
|
|
12,923
|
|
Average tangible common
equity
|
|
|
92,987
|
|
|
93,815
|
|
|
98,248
|
|
|
99,982
|
|
|
96,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
|
|
9.08
|
%
|
|
7.30
|
%
|
|
5.78
|
%
|
|
7.35
|
%
|
|
7.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
|
|
4QTR
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
105,331
|
|
$
|
111,272
|
|
$
|
113,736
|
|
|
$
|
116,549
|
|
Less: Intangible
assets
|
|
|
11,944
|
|
|
13,785
|
|
|
13,777
|
|
|
|
13,769
|
|
Tangible common
equity
|
|
|
93,387
|
|
|
97,487
|
|
|
99,959
|
|
|
|
102,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
1,311,412
|
|
|
1,360,583
|
|
|
1,338,886
|
|
|
|
1,335,560
|
|
Less: Intangible
assets
|
|
|
11,944
|
|
|
13,785
|
|
|
13,777
|
|
|
|
13,769
|
|
Tangible
assets
|
|
|
1,299,468
|
|
|
1,346,798
|
|
|
1,325,109
|
|
|
|
1,321,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
ratio
|
|
|
7.19
|
%
|
|
7.24
|
%
|
|
7.54
|
%
|
|
|
7.78
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares
outstanding
|
|
|
17,069,000
|
|
|
17,075,000
|
|
|
17,075,000
|
|
|
|
17,081,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
share
|
|
$
|
5.47
|
|
$
|
5.71
|
|
$
|
5.85
|
|
|
$
|
6.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ameriserv-financial-reports-record-first-quarter-2022-earnings-and-announces-a-20-increase-in-the-quarterly-common-stock-cash-dividend-301527426.html
SOURCE AmeriServ Financial, Inc.