JOHNSTOWN, Pa., July 19,
2022 /PRNewswire/ -- AmeriServ Financial, Inc.
(NASDAQ: ASRV) reported second quarter 2022 net income of
$1,981,000, or $0.12 per diluted common share. This
earnings performance was a $273,000,
or 16.0%, increase from the second quarter of 2021 when net income
totaled $1,708,000, or $0.10 per diluted common share. For the
six-month period ended June 30, 2022,
the Company reported net income of $4,399,000, or $0.26 per diluted common share. This
represents an 18.2% increase in earnings per share from the
six-month period of 2021 when net income totaled $3,789,000, or $0.22 per diluted common share. The
following table highlights the Company's financial performance for
both the three- and six-month periods ended June 30, 2022 and 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
2022
|
|
Second
Quarter
2021
|
|
Six Months Ended
June 30, 2022
|
|
Six Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,981,000
|
|
$
|
1,708,000
|
|
$
|
4,399,000
|
$
|
3,789,000
|
|
Diluted earnings per
share
|
|
$
|
0.12
|
|
$
|
0.10
|
|
$
|
0.26
|
$
|
0.22
|
|
Jeffrey A. Stopko, President and
Chief Executive Officer, commented on the 2022 financial results:
"AmeriServ Financial continued its positive earnings momentum in
the second quarter of 2022 as we again posted increased earnings
when compared to the 2021 results. The improved earnings
performance in 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. Specifically, I was pleased that we have been able
to increase net interest income in 2022 despite a $1.3 million reduction in PPP loan related fee
income in the first half of this year. Overall, AmeriServ Financial
continues to benefit from our diversified revenue streams due to
strong levels of loans, deposits, and fee income from our wealth
management business."
The Company's net interest income in the second quarter of 2022
increased by $257,000, or 2.6%, from
the prior year's second quarter and, for the first six months of
2022, increased by $332,000, or 1.7%,
when compared to the first six months of 2021. The Company's
net interest margin of 3.23% for the second quarter of 2022 and
3.19% for the six-month timeframe represents a 10 basis point
improvement for the quarter and a 1 basis point improvement for the
six-month period. While the size of the Company's balance
sheet remains high by historical standards, both total loans and
total deposits have demonstrated stabilization since the second
half of last year which corresponds with the conclusion of the
government stimulus programs. The Company's 2022 financial
performance has been favorably impacted by the strategic actions
taken by management in 2021 to lower funding costs. The
Company has also benefitted from the higher U.S. Treasury yield
curve as interest rates have increased due to the Federal Reserve's
action to tighten monetary policy in their effort to tame decades
high inflation. The higher national interest rates have
favorably impacted the Company's financial performance,
particularly net interest income in the second quarter of 2022 when
compared to the first quarter of 2022. Specifically, the
higher interest rates caused total interest income to increase to a
higher level than the corresponding increase in total interest
expense. In comparison to 2021, the termination of the
Paycheck Protection Program (PPP) caused a reduced level of loan
fee income and was the primary factor causing total interest income
to decrease for both the second quarter and first six months of
2022 when compared to the same time periods from last year.
However, deposit and borrowing interest expense declined by more
than the decrease in total interest income, resulting in net
interest income improving in both time periods of 2022 compared to
2021. Financial results also reflect the impact of continued
strengthening of our asset quality, which enabled the Company to
recognize a loan loss provision recovery during the second quarter
of 2022 and for the six-month time frame. 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 second quarter and first six months of
2022.
Total average loans in the second quarter of 2022 are lower than
the 2021 second quarter average by $14.5
million, or 1.5%, while total average loans for the first
six months of 2022 were $8.4 million,
or 0.9%, lower than the 2021 six-month level. Improved loan
pipelines have resulted in increased production during the second
quarter of 2022, but a higher than typical level of payoff activity
more than offset the new production causing total loan amounts to
decrease since the end of the first quarter of 2022. However,
given the core loan growth experienced during 2021 and excluding
PPP loans, total average loans in the second quarter of 2022 exceed
the 2021 second quarter average by $41.3
million, or 4.4%, as growth of commercial real estate (CRE),
residential mortgage and home equity loans more than offset a
decrease in the level of commercial & industrial loans.
Total PPP loans averaged $4.7 million
in the second quarter of 2022, representing a decrease of
$55.8 million, or 92.2%, from the
second quarter of last year. Additionally, on an end of
period basis, the total amount of PPP loans is only $2.2 million as we continue to work with our
customers through the SBA forgiveness process. Overall,
despite the higher average volumes of CRE, residential mortgage and
home equity loans, total loan interest income declined by
$1.4 million, or 6.7%, for the first
six months of 2022 when compared to the first six months of last
year. This decrease is primarily due to the Company recording
a total of $376,000 of processing
fees and interest income from PPP loans in the first half of 2022,
which is $1.3 million, or 77.4%,
lower than PPP income in the first half of 2021. Finally, on an end
of period basis at June 30, 2022,
excluding total PPP loans, the total loan portfolio is
approximately $18.6 million, or 2.0%,
higher from the June 30, 2021
level.
Total investment securities averaged $231.0 million for the first half of 2022 which
is $29.6 million, or 14.7%, higher
than the $201.4 million average for
the first half of last year. The increase in the U.S.
Treasury yield curve has resulted in a more favorable market for
securities purchasing activity so far in 2022. The 2-year to
10-year portion of the yield curve increased by approximately 135
to 230 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 yields for new
federal agency mortgage-backed securities and federal agency bonds
improving and exceeding the overall average yield of the existing
securities portfolio. Management purchased more of these
investments and was able to redeploy the cash flow from the excess
payoff activity from the loan portfolio and also more profitably
utilize a portion of the increased liquidity on our balance sheet
into the securities portfolio. 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, through the first six months of
2022, the average balance of total interest earning assets was
$18.2 million, or 1.5%, higher than
the first six-month average of 2021 while total interest income
decreased by $1.1 million, or 4.5%,
between years despite the increased average volume.
Although reduced from its high levels when government stimulus
initially impacted the economy, our liquidity position continues to
be strong as total short-term investments averaged $37.6 million in the first half of 2022, which is
$3.0 million, or 7.4%, lower than the
2021 six-month average. Short-term investments averaged
$28.7 million in the second quarter
of 2022, which is lower than it has been trending over the past
several quarters due to the additional investment in the securities
portfolio. In addition, uncertainty remains regarding the
duration that the increased funds from government stimulus 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 Company's
liquid funds with management expecting to continue to be active
with new security purchases during the remainder of 2022 given the
increase in interest rates.
On the liability side of the balance sheet, through six months,
total average deposits are $26.8
million, or 2.4%, higher compared to the first six months of
2021. Total deposits have demonstrated stability over the
past year as indicated by the second quarter 2022 average balance
being only $2.0 million, or 0.2%,
lower than the second quarter 2021 average balance. Deposit
volumes continue to reflect the 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
Somerset County branch
acquisition, which was completed in late May 2021. Overall,
the loan to deposit ratio averaged 84.0% in the second 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 during times of economic
volatility.
Total interest expense for the first six months of 2022
decreased by $1.4 million, or 34.2%,
when compared to the first six months of 2021, due to lower levels
of both deposit and borrowing interest expense. Deposit
interest expense was lower by $956,000, or 35.3%, despite the higher year to
date average 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. The higher national interest rates this year
did result in total deposit interest expense increasing between the
first and second quarters of 2022 as certain deposit products tied
to a market index repriced upward with the move in interest
rates. Specifically, our total deposit cost averaged 0.33% in
the second quarter of 2022, which is 5 basis points higher than the
first quarter of 2022; but still compares favorably to total
deposit cost of 0.45% in the second quarter of 2021. Overall,
management believes that total deposit cost will continue to rise
given 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 future deposit rate increases
will occur in a controlled manner.
Total borrowings interest expense decreased by $218,000 between the second quarter of 2022 and
the same quarter of 2021 and by $428,000, or 31.9%, when comparing the first six
months of 2022 to the first six months of 2021. The decrease
between years results from the favorable impact of the August 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
4.0%. This savings is recognized even though the size of the
new subordinated debt is $7.0 million
higher than the debt instruments it replaced. The remaining
portion of the favorable variance in borrowings interest expense
between the first six months of 2022 and the first six months 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 half of 2022 by
$15.9 million, or 28.7%, 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 $325,000
loan loss provision recovery in the second quarter of 2022 as
compared to a $100,000 provision
expense recorded in the second quarter of 2021. For the first
six months of 2022, the Company recorded a $725,000 provision recovery compared to a
$500,000 provision expense recorded
in the first six months of 2021 resulting in a net favorable change
of $1.2 million. The 2022
provision recovery reflects improved credit quality for the overall
portfolio due to several loan upgrades, a reduced loan portfolio
size due to increased payoff activity including one substandard
credit, and lower levels of criticized assets. 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 $3.2 million, or
0.34% of total loans, on June 30,
2022. The Company continues to experience low net loan
charge-offs, which were $105,000, or
0.02% of total average loans, in the first six months of 2022 and
is relatively consistent with net loan charge-offs of $93,000, or 0.02% of total average loans, for the
first six months of 2021. Even though the Company recognized
a loan loss provision recovery during the first half of the year,
the balance in the allowance for loan losses at June 30, 2022 is only slightly lower than the
balance of the allowance at June 30,
2021 by $184,000, or
1.6%. 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 June 30, 2022, loans totaling approximately
$5.2 million, or only 0.5% of total
loans, were on a payment modification plan. These loans
include three commercial borrowers 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 357% coverage of non-performing assets, and 1.20%
of total loans, on June 30, 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 second quarter of 2022
decreased by $261,000, or 5.9%, from
the prior year's second quarter and for the first six months of
2022 decreased by $540,000, or 6.0%,
from the first six months of 2021. Net realized gains on
loans held for sale decreased by $87,000, or 71.3%, for the quarter and decreased
by $487,000, or 78.9%, for the six
months, due to the lower level of residential mortgage loan
production which reflects a reduced level of mortgage loan
refinance activity due to the quick escalation of interest rates
since the beginning of 2022. Residential mortgage loan
production totaled $15.3 million in
the first six months of 2022 and was 73.4% lower than the
production level of $57.7 million
achieved in the first half of 2021. The reduced level of mortgage
loan production also caused mortgage related fees to decline by
$67,000, or 67.7%, for the quarter
and by $164,000, or 71.6%, for the
six months. Revenue from bank owned life insurance (BOLI)
dropped by $110,000, or 20.0%, in the
first half of 2022, after the Company received a death claim in
2021. Wealth management fees increased by $247,000, or 4.2%, for the six-month time period
of 2022 but declined by $46,000, or
1.5%, comparing the second quarter of 2022 to the second quarter of
2021. The decrease in quarterly performance between years
reflects the unfavorable impact of the declining equity markets on
wealth management fee income which was partially offset by new
customer business growth. The fair market value of wealth
management assets declined since the fourth quarter of 2021 by
$339.9 million, or 12.5%, and totaled
$2.4 billion at June 30, 2022. Finally, service charges on
deposit accounts increased by $110,000, or 25.9%, in the first six months of
2022 compared to the first six months of 2021, as consumers are
more active this year, increasing their spending
habits.
The Company has demonstrated good expense control as total
non-interest expense in the second quarter of 2022 increased by
$72,000, or 0.6%, when compared to
the second quarter of 2021 and increased in the first half of 2022
by $246,000, or 1.1%, when compared
to 2021. Salaries & employee benefits increased by
$96,000, or 1.4%, for the quarter and
are $560,000, or 4.1%, higher for the
six-month time period in 2022. Within total salaries & benefits
expense, salaries costs are higher by $727,000, or 8.2%, through six months due to
merit increases and a higher level of full-time equivalent
employees. Also, there were additional increases to health
care costs and other employee benefits. Partially offsetting
these higher costs within salaries & benefits through six
months was lower incentive compensation by $215,000, or 21.7%, due to the reduced level of
loan production. Similar to what occurred in 2021, the
Company was required to recognize a settlement charge in connection
with its defined benefit pension plan in the second quarter of
2022. The amount of the 2022 charge was $1,014,000 which is $163,000 higher than the $851,000 settlement charge recognized in the
second quarter of 2021. A settlement charge must be
recognized when the total dollar amount of lump sum distributions
paid from the pension plan to retired employees exceeds a threshold
of expected annual service and interest costs in the current
year. So far in 2022, all but one employee 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
continued to be elevated this year due to the low level where
interest rates were late in 2021 when these lump sums were
calculated. It is anticipated that the Company will be
required to recognize additional settlement charges through year
end as more people retire. However, 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, we expect that the Company's normal annual
pension expense should be lower in the future, which has been
evident so far in 2022 as the normal amount of pension expense
required to be recognized is lower than the 2021 level.
Professional fees were $124,000, or
4.6%, higher for the first six months of 2022 due primarily to
higher legal costs within our wealth management group. Net
occupancy expenses are $109,000, or
8.2%, higher through six months of 2022 due to increased utilities
cost along with maintenance & repair expense which was
primarily related to the new branch office. Partially
offsetting these higher costs were other expenses decreasing by
$531,000, or 12.1%, for the first six
months of 2022 when compared to the same time period from last
year. Contributing to the lower level of other expense was no
additional costs related to a branch acquisition in 2022 after
$303,000 of expense was recognized
for this purpose in 2021. Other expenses were also favorably
impacted by a $149,000 credit for the
unfunded commitment reserve after $56,000 of expense was recognized in the first
half of last year, resulting in a $205,000 favorable shift.
The Company recorded an income tax expense of $496,000, or an effective tax rate of 20.0%, in
the second quarter of 2022. This compares to an income tax
expense of $420,000, or an effective
tax rate of 19.7%, for the second quarter of 2021. Similarly,
for the first six months of 2022, the Company recorded income tax
expense of $1.1 million, or an
effective tax rate of 20.0%, compared to income tax expense of
$940,000 in 2021, or an effective tax
rate of 19.9%.
The Company had total assets of $1.3
billion, shareholders' equity of $106.4 million, a book value of $6.22 per common share and a tangible book
value(1) of $5.41 per
common share on June 30, 2022.
The decline in the Company's book value and tangible book value per
share in 2022 reflects a decrease in the value of the Company's
available for sale investment securities due to higher interest
rates and the negative impact of a revaluation of the net pension
liability resulting from a drop in the value of the pension plan
assets. 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.
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
SUPPLEMENTAL FINANCIAL
PERFORMANCE DATA
June 30,
2022
(Dollars in thousands,
except per share and ratio data)
(Unaudited)
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
YEAR TO
DATE
|
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,418
|
|
$
|
1,981
|
|
$
|
4,399
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE PERCENTAGES
(annualized):
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.73
|
%
|
|
0.59
|
%
|
|
0.66
|
%
|
Return on average
equity
|
|
|
8.48
|
|
|
7.10
|
|
|
7.80
|
|
Return on average
tangible common equity (B)
|
|
|
9.62
|
|
|
8.10
|
|
|
8.87
|
|
Net interest
margin
|
|
|
3.14
|
|
|
3.23
|
|
|
3.19
|
|
Net charge-offs
(recoveries) as a percentage of average loans
|
|
|
0.03
|
|
|
0.01
|
|
|
0.02
|
|
Loan loss provision
(credit) as a percentage of average loans
|
|
|
(0.17)
|
|
|
(0.13)
|
|
|
(0.15)
|
|
Efficiency ratio
(D)
|
|
|
81.38
|
|
|
84.89
|
|
|
83.14
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.14
|
|
$
|
0.12
|
|
$
|
0.26
|
|
Average number of
common shares outstanding
|
|
|
17,094
|
|
|
17,109
|
|
|
17,102
|
|
Diluted
|
|
|
0.14
|
|
|
0.12
|
|
|
0.26
|
|
Average number of
common shares outstanding
|
|
|
17,146
|
|
|
17,149
|
|
|
17,148
|
|
Cash dividends paid per
share
|
|
$
|
0.025
|
|
$
|
0.030
|
|
$
|
0.055
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
YEAR TO
DATE
|
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,081
|
|
$
|
1,708
|
|
$
|
3,789
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE PERCENTAGES
(annualized):
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.65
|
%
|
|
0.51
|
%
|
|
0.58
|
%
|
Return on average
equity
|
|
|
8.04
|
|
|
6.46
|
|
|
7.24
|
|
Return on average
tangible common equity (B)
|
|
|
9.08
|
|
|
7.30
|
|
|
8.18
|
|
Net interest
margin
|
|
|
3.23
|
|
|
3.13
|
|
|
3.18
|
|
Net charge-offs
(recoveries) as a percentage of average loans
|
|
|
0.05
|
|
|
(0.01)
|
|
|
0.02
|
|
Loan loss provision
(credit) as a percentage of average loans
|
|
|
0.17
|
|
|
0.04
|
|
|
0.10
|
|
Efficiency ratio
(D)
|
|
|
79.00
|
|
|
84.35
|
|
|
81.67
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
$
|
0.10
|
|
$
|
0.22
|
|
Average number of
common shares outstanding
|
|
|
17,064
|
|
|
17,073
|
|
|
17,068
|
|
Diluted
|
|
|
0.12
|
|
|
0.10
|
|
|
0.22
|
|
Average number of
common shares outstanding
|
|
|
17,101
|
|
|
17,131
|
|
|
17,114
|
|
Cash dividends paid per
share
|
|
$
|
0.025
|
|
$
|
0.025
|
|
$
|
0.050
|
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
--CONTINUED--
(Dollars in thousands,
except per share, statistical, and ratio data)
(Unaudited)
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
|
2QTR
|
|
FINANCIAL CONDITION
DATA AT PERIOD END:
|
|
|
|
|
|
|
|
Assets
|
|
$
|
1,331,265
|
|
$
|
1,321,402
|
|
Short-term
investments/overnight funds
|
|
|
13,588
|
|
|
10,714
|
|
Investment
securities
|
|
|
223,286
|
|
|
231,255
|
|
Total loans and loans
held for sale, net of unearned income
|
|
|
978,692
|
|
|
965,587
|
|
Paycheck Protection
Program (PPP) loans (E)
|
|
|
7,835
|
|
|
2,242
|
|
Allowance for loan
losses
|
|
|
11,922
|
|
|
11,568
|
|
Intangible
assets
|
|
|
13,761
|
|
|
13,753
|
|
Deposits
|
|
|
1,140,889
|
|
|
1,142,756
|
|
Short-term and FHLB
borrowings
|
|
|
37,863
|
|
|
34,028
|
|
Guaranteed junior
subordinated deferrable interest debentures
|
|
|
0
|
|
|
0
|
|
Subordinated debt,
net
|
|
|
26,613
|
|
|
26,624
|
|
Shareholders'
equity
|
|
|
113,692
|
|
|
106,392
|
|
Non-performing
assets
|
|
|
3,401
|
|
|
3,240
|
|
Tangible common equity
ratio (B)
|
|
|
7.58
|
%
|
|
7.08
|
%
|
Total capital (to risk
weighted assets) ratio
|
|
|
14.01
|
|
|
14.33
|
|
PER COMMON
SHARE:
|
|
|
|
|
|
|
|
Book value
|
|
$
|
6.65
|
|
$
|
6.22
|
|
Tangible book value
(B)
|
|
|
5.84
|
|
|
5.41
|
|
Market value
(C)
|
|
|
4.04
|
|
|
3.94
|
|
Wealth management
assets – fair market value (A)
|
|
$
|
2,633,096
|
|
$
|
2,372,772
|
|
|
|
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
|
|
|
Full-time equivalent
employees
|
|
|
301
|
|
|
310
|
|
Branch
locations
|
|
|
17
|
|
|
17
|
|
Common shares
outstanding
|
|
|
17,109,084
|
|
|
17,109,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
2QTR
|
|
YEAR TO
DATE
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
9,496
|
|
$
|
9,725
|
|
$
|
19,221
|
Interest on
investments
|
|
|
1,532
|
|
|
1,802
|
|
|
3,334
|
Total Interest
Income
|
|
|
11,028
|
|
|
11,527
|
|
|
22,555
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
796
|
|
|
956
|
|
|
1,752
|
All
borrowings
|
|
|
465
|
|
|
447
|
|
|
912
|
Total Interest
Expense
|
|
|
1,261
|
|
|
1,403
|
|
|
2,664
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
9,767
|
|
|
10,124
|
|
|
19,891
|
Provision (credit) for
loan losses
|
|
|
(400)
|
|
|
(325)
|
|
|
(725)
|
NET INTEREST INCOME
AFTER PROVISION (CREDIT) FOR LOAN LOSSES
|
|
|
10,167
|
|
|
10,449
|
|
|
20,616
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
Wealth management
fees
|
|
|
3,165
|
|
|
2,976
|
|
|
6,141
|
Service charges on
deposit accounts
|
|
|
272
|
|
|
263
|
|
|
535
|
Net realized gains on
loans held for sale
|
|
|
95
|
|
|
35
|
|
|
130
|
Mortgage related
fees
|
|
|
33
|
|
|
32
|
|
|
65
|
Net realized gains on
investment securities
|
|
|
0
|
|
|
0
|
|
|
0
|
Bank owned life
insurance
|
|
|
209
|
|
|
231
|
|
|
440
|
Other income
|
|
|
561
|
|
|
601
|
|
|
1,162
|
Total Non-Interest
Income
|
|
|
4,335
|
|
|
4,138
|
|
|
8,473
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
7,405
|
|
|
6,963
|
|
|
14,368
|
Net occupancy
expense
|
|
|
741
|
|
|
697
|
|
|
1,438
|
Equipment
expense
|
|
|
397
|
|
|
415
|
|
|
812
|
Professional
fees
|
|
|
1,324
|
|
|
1,510
|
|
|
2,834
|
FDIC deposit insurance
expense
|
|
|
145
|
|
|
130
|
|
|
275
|
Other
expenses
|
|
|
1,467
|
|
|
2,395
|
|
|
3,862
|
Total Non-Interest
Expense
|
|
|
11,479
|
|
|
12,110
|
|
|
23,589
|
|
|
|
|
|
|
|
|
|
|
PRETAX
INCOME
|
|
|
3,023
|
|
|
2,477
|
|
|
5,500
|
Income tax
expense
|
|
|
605
|
|
|
496
|
|
|
1,101
|
NET INCOME
|
|
$
|
2,418
|
|
$
|
1,981
|
|
$
|
4,399
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
YEAR TO
DATE
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
10,327
|
|
$
|
10,283
|
|
$
|
20,610
|
Interest on
investments
|
|
|
1,442
|
|
|
1,555
|
|
|
2,997
|
Total Interest
Income
|
|
|
11,769
|
|
|
11,838
|
|
|
23,607
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
1,402
|
|
|
1,306
|
|
|
2,708
|
All
borrowings
|
|
|
675
|
|
|
665
|
|
|
1,340
|
Total Interest
Expense
|
|
|
2,077
|
|
|
1,971
|
|
|
4,048
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
9,692
|
|
|
9,867
|
|
|
19,559
|
Provision (credit) for
loan losses
|
|
|
400
|
|
|
100
|
|
|
500
|
NET INTEREST INCOME
AFTER PROVISION (CREDIT) FOR LOAN LOSSES
|
|
|
9,292
|
|
|
9,767
|
|
|
19,059
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
Wealth management
fees
|
|
|
2,872
|
|
|
3,022
|
|
|
5,894
|
Service charges on
deposit accounts
|
|
|
201
|
|
|
224
|
|
|
425
|
Net realized gains on
loans held for sale
|
|
|
495
|
|
|
122
|
|
|
617
|
Mortgage related
fees
|
|
|
130
|
|
|
99
|
|
|
229
|
Net realized gains on
investment securities
|
|
|
0
|
|
|
84
|
|
|
84
|
Bank owned life
insurance
|
|
|
332
|
|
|
218
|
|
|
550
|
Other income
|
|
|
584
|
|
|
630
|
|
|
1,214
|
Total Non-Interest
Income
|
|
|
4,614
|
|
|
4,399
|
|
|
9,013
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
6,941
|
|
|
6,867
|
|
|
13,808
|
Net occupancy
expense
|
|
|
680
|
|
|
649
|
|
|
1,329
|
Equipment
expense
|
|
|
390
|
|
|
403
|
|
|
793
|
Professional
fees
|
|
|
1,314
|
|
|
1,396
|
|
|
2,710
|
FDIC deposit insurance
expense
|
|
|
155
|
|
|
155
|
|
|
310
|
Other
expenses
|
|
|
1,825
|
|
|
2,568
|
|
|
4,393
|
Total Non-Interest
Expense
|
|
|
11,305
|
|
|
12,038
|
|
|
23,343
|
|
|
|
|
|
|
|
|
|
|
PRETAX
INCOME
|
|
|
2,601
|
|
|
2,128
|
|
|
4,729
|
Income tax
expense
|
|
|
520
|
|
|
420
|
|
|
940
|
NET INCOME
|
|
$
|
2,081
|
|
$
|
1,708
|
|
$
|
3,789
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
AVERAGE BALANCE SHEET
DATA
(Dollars in
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
2QTR
|
|
|
SIX
MONTHS
|
|
2QTR
|
|
|
SIX
MONTHS
|
Interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and loans held
for sale, net of unearned income
|
|
$
|
976,995
|
|
$
|
978,272
|
|
$
|
991,527
|
|
$
|
986,702
|
Short-term investments
and bank deposits
|
|
|
28,684
|
|
|
37,608
|
|
|
50,357
|
|
|
40,605
|
Total investment
securities
|
|
|
240,615
|
|
|
231,037
|
|
|
212,332
|
|
|
201,389
|
Total interest earning
assets
|
|
|
1,246,294
|
|
|
1,246,917
|
|
|
1,254,216
|
|
|
1,228,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
|
17,882
|
|
|
17,824
|
|
|
17,770
|
|
|
17,921
|
Premises and
equipment
|
|
|
17,395
|
|
|
17,386
|
|
|
17,805
|
|
|
17,894
|
Other assets
|
|
|
80,729
|
|
|
81,145
|
|
|
75,267
|
|
|
72,763
|
Allowance for loan
losses
|
|
|
(12,070)
|
|
|
(12,291)
|
|
|
(11,876)
|
|
|
(11,729)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,350,230
|
|
$
|
1,350,981
|
|
$
|
1,353,182
|
|
$
|
1,325,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand
|
|
$
|
229,394
|
|
$
|
229,333
|
|
$
|
213,968
|
|
$
|
204,970
|
Savings
|
|
|
139,963
|
|
|
137,925
|
|
|
125,545
|
|
|
120,588
|
Money market
|
|
|
291,998
|
|
|
291,569
|
|
|
269,814
|
|
|
263,548
|
Other time
|
|
|
284,935
|
|
|
287,340
|
|
|
339,331
|
|
|
339,275
|
Total interest bearing
deposits
|
|
|
946,290
|
|
|
946,167
|
|
|
948,658
|
|
|
928,381
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased
and other short-term borrowings
|
|
|
1,500
|
|
|
750
|
|
|
0
|
|
|
590
|
Advances from Federal
Home Loan Bank
|
|
|
36,190
|
|
|
38,691
|
|
|
50,469
|
|
|
54,709
|
Guaranteed junior
subordinated deferrable interest debentures
|
|
|
0
|
|
|
0
|
|
|
13,085
|
|
|
13,085
|
Subordinated
debt
|
|
|
27,000
|
|
|
27,000
|
|
|
7,650
|
|
|
7,650
|
Lease
liabilities
|
|
|
3,475
|
|
|
3,504
|
|
|
3,766
|
|
|
3,803
|
Total interest bearing
liabilities
|
|
|
1,014,455
|
|
|
1,016,112
|
|
|
1,023,628
|
|
|
1,008,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
216,596
|
|
|
214,745
|
|
|
216,223
|
|
|
205,764
|
Other
liabilities
|
|
|
7,281
|
|
|
6,346
|
|
|
7,322
|
|
|
6,093
|
Shareholders'
equity
|
|
|
111,898
|
|
|
113,778
|
|
|
106,009
|
|
|
105,470
|
Total liabilities and
shareholders' equity
|
|
$
|
1,350,230
|
|
$
|
1,350,981
|
|
$
|
1,353,182
|
|
$
|
1,325,545
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR TO
|
|
|
|
1QTR
|
|
2QTR
|
|
DATE
|
|
RETURN ON AVERAGE
TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,418
|
|
$
|
1,981
|
|
$
|
4,399
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
115,658
|
|
|
111,898
|
|
|
113,778
|
|
Less: Average
intangible assets
|
|
|
13,766
|
|
|
13,757
|
|
|
13,761
|
|
Average tangible common
equity
|
|
|
101,892
|
|
|
98,141
|
|
|
100,017
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
|
|
9.62
|
%
|
|
8.10
|
%
|
|
8.87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
|
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
113,692
|
|
$
|
106,392
|
|
|
|
|
Less: Intangible
assets
|
|
|
13,761
|
|
|
13,753
|
|
|
|
|
Tangible common
equity
|
|
|
99,931
|
|
|
92,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
1,331,265
|
|
|
1,321,402
|
|
|
|
|
Less: Intangible
assets
|
|
|
13,761
|
|
|
13,753
|
|
|
|
|
Tangible
assets
|
|
|
1,317,504
|
|
|
1,307,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
ratio
|
|
|
7.58
|
%
|
|
7.08
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares
outstanding
|
|
|
17,109,084
|
|
|
17,109,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
share
|
|
$
|
5.84
|
|
$
|
5.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
YEAR TO
DATE
|
|
RETURN ON AVERAGE
TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,081
|
|
$
|
1,708
|
|
$
|
3,789
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
104,931
|
|
|
106,009
|
|
|
105,470
|
|
Less: Average
intangible assets
|
|
|
11,944
|
|
|
12,194
|
|
|
12,069
|
|
Average tangible common
equity
|
|
|
92,987
|
|
|
93,815
|
|
|
93,401
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
|
|
9.08
|
%
|
|
7.30
|
%
|
|
8.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-increased-earnings-for-the-second-quarter-and-first-six-months-of-2022-301588641.html
SOURCE AmeriServ Financial, Inc.