JOHNSTOWN, Pa., Jan. 26 /PRNewswire-FirstCall/ -- AmeriServ
Financial, Inc. (NASDAQ:ASRV) reported a fourth quarter 2009 net
loss of $1.7 million or $0.09 per diluted share. This represents a
decrease of $3.3 million from the fourth quarter 2008 net income of
$1.6 million or $0.07 per diluted share. For the year ended
December 31, 2009, the Company reported a net loss of $4.9 million
or $0.28 per diluted share. This also represents a decrease of
$10.4 million when compared to net income of $5.5 million or $0.25
per diluted share for the full year of 2008. The following table
highlights the Company's financial performance for both the
quarters and years ended December 31, 2009 and 2008: Fourth Fourth
Quarter 2009 Quarter 2008 Year Ended Year Ended ------------
------------ ---------- ---------- December 31, December 31, 2009
2008 ------------- ------------- Net income (loss) ($1,679,000)
$1,615,000 ($4,895,000) $5,509,000 ---------- -----------
---------- ----------- ---------- Diluted earnings per share
($0.09) $0.07 ($0.28) $0.25 ---------------- ------ ----- ------
----- Glenn Wilson, President and Chief Executive Officer,
commented on the 2009 financial results, "AmeriServ Financial
reported a loss for both the fourth quarter and full year of 2009
due to an increased provision for loan losses. We performed a
comprehensive review of our commercial loan portfolio during the
second half of 2009 which included the gathering of the most
current financial data we could obtain from our commercial
borrowers to determine what impact the recessionary economy had on
their financial performance. This review indicated the need for
another strong contribution to our allowance for loan losses in the
fourth quarter of 2009; although the amount of the quarterly
provision did decline from the third quarter level. As a result of
this loan loss reserve strengthening in 2009, our allowance for
loan losses represented 2.72% of total loans outstanding and
provided 115% coverage of non-performing loans at December 31,
2009. This higher loan loss provision unfortunately more than
offset some strong fundamentals, such as, a $3.3 million increase
in net interest income that resulted from solid deposit and loan
growth experienced within our bank during 2009." The Company's net
interest income in the fourth quarter of 2009 increased modestly by
$12,000 from the prior year's fourth quarter, and for the full year
of 2009 increased more significantly by $3.3 million or 11.4% when
compared to 2008. The Company's net interest margin of 3.72% for
the full year of 2009 is also 8 basis points better than the 3.64%
net interest margin achieved during the full year of 2008. The
increased net interest income and margin resulted from a
combination of solid loan and deposit growth and the pricing
benefits achieved from a steeper yield curve in 2009. Specifically,
total loans averaged $725 million in 2009, an increase of $83
million or 13.0% over 2008. This growth caused overall loan
interest revenue to increase in 2009 despite the lower interest
rate environment. The loan growth was driven by increased
commercial loan production as the majority of increased residential
mortgage loan production has been sold into the secondary market.
The Company's strong liquidity position has been supported by total
deposits that averaged $763 million in 2009, an increase of $68
million or 9.8% over 2008. The Company believes that uncertainties
in the financial markets and the economy have contributed to growth
in money market accounts, certificates of deposit and demand
deposits as consumers have looked for safety in well capitalized
community banks like AmeriServ Financial. Additionally, the Company
also benefited from a favorable $3.7 million decline in interest
expense caused by the more rapid downward repricing of both
deposits and Federal Home Loan Bank borrowings due to the market
decline in short-term interest rates. The Company appropriately
strengthened its allowance for loan losses in the fourth quarter
and full year of 2009 in response to deterioration in asset
quality. This deterioration in asset quality in 2009 was evidenced
by higher levels of nonperforming loans and classified loans than
in 2008 and reflects the results of a comprehensive review of loans
in the commercial loan and commercial real estate portfolio in the
second half of 2009. When determining the provision for loan
losses, the Company considers a number of factors some of which
include periodic credit reviews, non-performing, delinquency and
charge-off trends, concentrations of credit, loan volume trends and
broader local and national economic trends. Overall, the Company
recorded a $3.8 million provision for loan losses in the fourth
quarter of 2009 compared to a $625,000 provision in the fourth
quarter of 2008, or an increase of $3.1 million. For the full year
2009, the Company recorded a $15.2 million provision for loan
losses compared to a $2.9 million provision for 2008, or an
increase of $12.2 million. Actual credit losses realized through
charge-off, however, are running well below the provision level but
are higher than the prior year. For the full year 2009, net
charge-offs have amounted to $4.4 million or 0.60% of total loans
compared to net charge-offs of $1.3 million or 0.20% of total loans
for the full year 2008. Of the 2009 net charge-offs, $3.3 million
was realized in the fourth quarter and reflected the resolution of
one of the Company's larger non-performing loans. This was a factor
contributing to a $5.4 million decline in non-performing assets
from $23.7 million at September 30, 2009 to $18.3 million or 2.54%
of total loans at December 31, 2009. Non-performing assets in 2009,
however, are well above the year end 2008 level of $4.6 million or
0.64% of total loans. In summary, the allowance for loan losses
provided 115% coverage of non-performing loans and was 2.72% of
total loans at December 31, 2009, compared to 264% of
non-performing loans and 1.26% of total loans at December 31, 2008.
The Company's non-interest income in the fourth quarter of 2009
decreased by $54,000 from the prior year's fourth quarter and for
the full year 2009 decreased by $2.5 million when compared to all
of 2008. The largest item responsible for the quarterly decline was
a $206,000 decrease in trust and investment advisory fees as a
result of reductions in the market value of assets managed due to
lower real estate and equity values in 2009. The largest item
causing the full year decline was related to bank owned life
insurance. Bank owned life insurance revenue dropped by $1.5
million in 2009 as there were more payments for death claims in
2008. Trust and investment advisory fees also declined by $1.2
million for the full year 2009 while deposit service charges
dropped by $300,000 due to fewer overdraft fees. These negative
items were partially offset by increased gains on asset sales.
Specifically, gains realized on residential mortgage sales into the
secondary market in 2009 increased by $174,000 for the full year
due to increased mortgage purchase and refinance activity in the
Company's primary market. The Company also took advantage of market
opportunities and generated $164,000 of gains on the sale of
investment securities in 2009 compared to a net $95,000 loss on a
portfolio repositioning strategy executed in 2008. Total
non-interest expense in the fourth quarter of 2009 increased by
$1.7 million from the prior year's fourth quarter and for the full
year 2009 increased by $3.5 million or 9.9% when compared to the
full year 2008. Higher FDIC deposit insurance expense due to an
increased basic rate and special assessment is a key factor
responsible for both the quarterly ($595,000) and full year ($1.6
million) increase in non-interest expense in 2009. Total salaries
and benefits expense in 2009 increased by $520,000 in the fourth
quarter and $1.3 million for the full year due to greater salary
costs as a result of normal merit increases and higher sales
related incentive compensation along with greater pension expense.
The fourth quarter 2009 salaries expense was also impacted by
$130,000 of severance related costs. Professional fees increased by
$208,000 for the fourth quarter and $450,000 for the full year due
to increased legal fees and recruitment costs in 2009. Fourth
quarter 2009 professional fees also included $120,000 of consulting
costs related to a comprehensive review of the Company's trust
subsidiary which focused on strategic issues along with day-to-day
operating and compliance activities. Other expenses in both periods
also increased due to credit related costs. Specifically, other
real estate owned expense increased by $715,000 due to the
write-down and operating costs associated with an increased number
of other real-estate owned properties while the Company also had to
fund its reserve for unfunded commitments by an additional $118,000
in 2009. These negative items were partially offset by a reduction
in core deposit amortization expense of $216,000 for the fourth
quarter and $757,000 for the full year as a branch core deposit
intangible was fully amortized in the first quarter of 2009. ASRV
had total assets of $970 million and shareholders' equity of $107
million or a book value of $4.09 per common share at December 31,
2009. The Company continued to maintain strong capital ratios that
exceed the regulatory defined well capitalized status with a risk
based capital ratio of 15.33%, an asset leverage ratio of 11.06%
and a tangible common equity to tangible assets ratio of 7.71% at
December 31, 2009. This news release may contain forward-looking
statements that involve risks and uncertainties, as defined in the
Private Securities Litigation Reform Act of 1995, including the
risks detailed in the Company's Annual Report and Form 10-K to the
Securities and Exchange Commission. Actual results may differ
materially. NASDAQ: ASRV SUPPLEMENTAL FINANCIAL PERFORMANCE DATA
January 26, 2009 (In thousands, except per share and ratio data)
(All quarterly and 2009 data unaudited) 2009 1QTR 2QTR 3QTR 4QTR
YEAR TO DATE PERFORMANCE DATA FOR THE PERIOD: Net income (loss)
$533 $(939) $(2,810) $(1,679) $(4,895) Net income (loss) available
to common shareholders 274 (1,202) (3,073) (1,941) (5,942)
PERFORMANCE PERCENTAGES (annualized): Return on average assets
0.22% (0.39)% (1.15)% (0.70)% (0.51)% Return on average equity 1.90
(3.29) (9.83) (6.01) (4.33) Net interest margin 3.72 3.66 3.57 3.75
3.72 Net charge-offs as a percentage of average loans 0.03 0.19
0.35 1.82 0.60 Loan loss provision as a percentage of average loans
1.02 1.81 3.42 2.05 2.09 Efficiency ratio 78.22 82.56 84.00 92.82
84.39 PER COMMON SHARE: Net income (loss): Basic $0.01 $(0.06)
$(0.15) $(0.09) $(0.28) Average number of common shares outstanding
21,137 21,151 21,178 21,219 21,172 Diluted 0.01 (0.06) (0.15)
(0.09) (0.28) Average number of common shares outstanding 21,137
21,152 21,182 21,219 21,174 2008 1QTR 2QTR 3QTR 4QTR YEAR TO DATE
PERFORMANCE DATA FOR THE PERIOD: Net income $1,229 $1,516 $1,149
$1,615 $5,509 Net income available to common shareholders 1,229
1,516 1,149 1,580 5,474 PERFORMANCE PERCENTAGES (annualized):
Return on average assets 0.55% 0.71% 0.52% 0.69% 0.62% Return on
average equity 5.43 6.64 4.93 6.68 5.93 Net interest margin 3.32
3.58 3.59 3.84 3.64 Net charge-offs as a percentage of average
loans 0.06 0.46 0.04 0.23 0.20 Loan loss provision as a percentage
of average loans 0.10 0.89 0.48 0.36 0.45 Efficiency ratio 82.87
73.20 79.72 77.46 78.11 PER COMMON SHARE: Net income: Basic $0.06
$0.07 $0.05 $0.07 $0.25 Average number of common shares outstanding
22,060 21,847 21,855 21,571 21,833 Diluted 0.06 0.07 0.05 0.07 0.25
Average number of common shares outstanding 22,062 21,848 21,856
21,571 21,975 AMERISERV FINANCIAL, INC. (In thousands, except per
share, statistical, and ratio data) (All quarterly and 2009 data
unaudited) 2009 1QTR 2QTR 3QTR 4QTR PERFORMANCE DATA AT PERIOD END:
Assets $975,062 $978,899 $959,344 $970,026 Short-term investment in
money market funds 10,817 7,516 6,565 3,766 Investment securities
138,853 136,119 138,715 142,883 Loans 726,961 739,649 722,540
722,904 Allowance for loan losses 10,661 13,606 19,255 19,685
Goodwill and core deposit intangibles 13,498 13,498 12,950 12,950
Deposits 746,813 783,807 779,185 786,011 FHLB borrowings 90,346
57,702 44,451 51,579 Shareholders' equity 114,254 112,880 110,706
107,254 Non-performing assets 5,099 14,670 23,689 18,337 Asset
leverage ratio 11.82% 11.61% 11.41% 11.06% Tangible common equity
ratio 8.35 8.17 8.16 7.71 PER COMMON SHARE: Book value (A) $4.44
$4.37 $4.25 $4.09 Market value 1.67 1.85 1.80 1.67 Trust assets -
fair market value (B) $1,432,375 $1,376,272 $1,340,119 $1,358,570
STATISTICAL DATA AT PERIOD END: Full-time equivalent employees 355
352 350 345 Branch locations 18 18 18 18 Common shares outstanding
21,144,700 21,156,801 21,215,115 21,221,909 2008 1QTR 2QTR 3QTR
4QTR PERFORMANCE DATA AT PERIOD END: Assets $902,349 $877,230
$911,306 $966,929 Short-term investment in money market funds 5,682
6,952 7,147 15,578 Investment securities 146,285 141,867 141,630
142,675 Loans 632,934 623,798 663,996 707,108 Allowance for loan
losses 7,309 7,963 8,677 8,910 Goodwill and core deposit
intangibles 14,254 14,038 13,821 13,605 Deposits 682,459 722,913
688,998 694,956 FHLB borrowings 106,579 40,214 106,897 133,778
Shareholders' equity 91,558 92,248 93,671 113,252 Non-performing
assets 3,050 3,717 4,390 4,572 Asset leverage ratio 9.78% 10.47%
10.37% 12.15% Tangible common equity ratio 8.70 9.06 8.90 8.31 PER
COMMON SHARE: Book value (A) $4.19 $4.22 $4.29 $4.39 Market value
2.79 2.98 2.51 1.99 Trust assets - fair market value (B) $1,838,029
$1,813,231 $1,678,398 $1,554,351 STATISTICAL DATA AT PERIOD END:
Full-time equivalent employees 350 353 352 353 Branch locations 19
18 18 18 Common shares outstanding 21,842,691 21,850,773 21,859,409
21,128,831 Note: (A) Preferred stock received through the Capital
Purchase Program is excluded from the book value per common share
calculation. (B) Not recognized on the balance sheet AMERISERV
FINANCIAL, INC. CONSOLIDATED STATEMENT OF INCOME (In thousands)
(All quarterly and 2009 data unaudited) 2009 1QTR 2QTR 3QTR 4QTR
YEAR TO DATE INTEREST INCOME Interest and fees on loans $10,349
$10,544 $10,247 $10,310 $41,450 Total investment portfolio 1,586
1,511 1,451 1,457 6,005 ----- ----- ----- ----- ----- Total
Interest Income 11,935 12,055 11,698 11,767 47,455 INTEREST EXPENSE
Deposits 3,255 3,405 3,316 3,134 13,110 All borrowings 539 479 457
436 1,911 --- --- --- --- ----- Total Interest Expense 3,794 3,884
3,773 3,570 15,021 ----- ----- ----- ----- ------ NET INTEREST
INCOME 8,141 8,171 7,925 8,197 32,434 Provision for loan losses
1,800 3,300 6,300 3,750 15,150 ----- ----- ----- ----- ------ NET
INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 6,341 4,871 1,625
4,447 17,284 NON-INTEREST INCOME Trust fees 1,559 1,438 1,377 1,274
5,648 Net realized gains on investment securities available for
sale 101 63 - - 164 Net realized gains on loans held for sale 118
163 213 157 651 Service charges on deposit accounts 673 710 712 674
2,769 Investment advisory fees 137 152 176 183 648 Bank owned life
insurance 250 254 258 446 1,208 Other income 723 711 718 688 2,840
--- --- --- --- ----- Total Non-Interest Income 3,561 3,491 3,454
3,422 13,928 NON-INTEREST EXPENSE Salaries and employee benefits
5,092 4,983 5,114 5,337 20,526 Net occupancy expense 722 641 602
667 2,632 Equipment expense 415 442 398 437 1,692 Professional fees
920 873 1,050 1,189 4,032 FDIC deposit insurance expense 32 691 311
636 1,670 Amortization of core deposit intangibles 108 - - - 108
Other expenses 1,873 2,006 2,091 2,527 8,497 ----- ----- -----
----- ----- Total Non-Interest Expense 9,162 9,636 9,566 10,793
39,157 ----- ----- ----- ------ ------ PRETAX INCOME (LOSS) 740
(1,274) (4,487) (2,924) (7,945) Income tax expense (benefit) 207
(335) (1,677) (1,245) (3,050) --- ---- ------ ------ ------ NET
INCOME (LOSS) 533 (939) (2,810) (1,679) (4,895) Preferred stock
dividends 259 263 263 262 1,047 --- --- --- --- ----- NET INCOME
(LOSS) AVAILABLE TO COMMON SHAREHOLDERS $274 $(1,202) $(3,073)
$(1,941) $(5,942) ---- ------- ------- ------- ------- 2008 1QTR
2QTR 3QTR 4QTR YEAR TO DATE INTEREST INCOME Interest and fees on
loans $10,462 $9,862 $10,015 $10,680 $41,019 Total investment
portfolio 1,820 1,588 1,717 1,675 6,800 ----- ----- ----- -----
----- Total Interest Income 12,282 11,450 11,732 12,355 47,819
INTEREST EXPENSE Deposits 4,499 3,861 3,774 3,546 15,680 All
borrowings 1,048 623 727 624 3,022 ----- --- --- --- ----- Total
Interest Expense 5,547 4,484 4,501 4,170 18,702 ----- ----- -----
----- ------ NET INTEREST INCOME 6,735 6,966 7,231 8,185 29,117
Provision for loan losses 150 1,375 775 625 2,925 --- ----- --- ---
----- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 6,585
5,591 6,456 7,560 26,192 NON-INTEREST INCOME Trust fees 1,790 1,737
1,691 1,513 6,731 Net realized gains (losses) on investment
securities available for sale - (137) 20 22 (95) Net realized gains
on loans held for sale 89 121 138 129 477 Service charges on
deposit accounts 734 807 771 757 3,069 Investment advisory fees 226
218 185 150 779 Bank owned life insurance 249 1,923 260 263 2,695
Other income 750 674 702 642 2,768 --- --- --- --- ----- Total
Non-Interest Income 3,838 5,343 3,767 3,476 16,424 NON-INTEREST
EXPENSE Salaries and employee benefits 4,830 4,812 4,758 4,817
19,217 Net occupancy expense 661 653 586 661 2,561 Equipment
expense 431 414 402 430 1,677 Professional fees 769 910 922 981
3,582 FHLB prepayment penalty - 91 - - 91 FDIC deposit insurance
expense 22 20 30 41 113 Amortization of core deposit intangibles
216 216 217 216 865 Other expenses 1,850 1,909 1,869 1,903 7,531
----- ----- ----- ----- ----- Total Non-Interest Expense 8,779
9,025 8,784 9,049 35,637 ----- ----- ----- ----- ------ PRETAX
INCOME 1,644 1,909 1,439 1,987 6,979 Income tax expense 415 393 290
372 1,470 --- --- --- --- ----- NET INCOME 1,229 1,516 1,149 1,615
5,509 Preferred stock dividends - - - 35 35 - - - -- -- NET INCOME
AVAILABLE TO COMMON SHAREHOLDERS $1,229 $1,516 $1,149 $1,580 $5,474
====== ====== ====== ====== ====== AMERISERV FINANCIAL, INC.
AVERAGE BALANCE SHEET DATA (In thousands) (All quarterly and 2009
data unaudited) 2009 2008 TWELVE TWELVE 4QTR MONTHS 4QTR MONTHS
Interest earning assets: Loans and loans held for sale, net of
unearned income $723,992 $725,241 $683,739 $641,766 Deposits with
banks 1,772 1,782 493 583 Short-term investment in money market
funds 6,745 9,022 8,405 7,136 Federal funds 1,491 490 - 114 Total
investment securities 146,164 146,150 151,521 153,636 -------
------- ------- ------- Total interest earning assets 880,164
882,685 844,158 803,235 Non-interest earning assets: Cash and due
from banks 14,363 14,498 15,581 16,786 Premises and equipment 9,230
9,213 9,751 9,333 Other assets 73,927 72,574 68,625 72,249
Allowance for loan losses (19,626) (13,382) (8,602) (7,837) -------
------- ------ ------ Total assets 958,058 965,588 929,513 893,766
======= ======= ======= ======= Interest bearing liabilities:
Interest bearing deposits: Interest bearing demand 63,828 62,494
63,225 64,683 Savings 71,789 72,350 69,856 70,255 Money market
184,096 169,823 113,703 107,843 Other time 349,133 343,841 325,920
341,185 ------- ------- ------- ------- Total interest bearing
deposits 668,846 648,508 572,704 583,966 Borrowings: Federal funds
purchased, securities sold under agreements to repurchase, and
other short-term borrowings 11,329 21,028 113,093 71,636 Advanced
from Federal Home Loan Bank 29,892 43,934 13,101 11,725 Guaranteed
junior subordinated deferrable interest debentures 13,085 13,085
13,085 13,085 ------ ------ ------ ------ Total interest bearing
liabilities 723,152 726,555 711,983 680,412 Non-interest bearing
liabilities: Demand deposits 114,797 114,473 111,306 110,601 Other
liabilities 9,298 11,428 9,751 9,816 Shareholders' equity 110,811
113,132 96,173 92,937 ------- ------- ------ ------ Total
liabilities and shareholders' equity $958,058 $965,588 $929,213
$893,766 ======== ======== ======== ======== DATASOURCE: AmeriServ
Financial, Inc. CONTACT: Jeffrey A. Stopko, Executive Vice
President & Chief Financial Officer, AmeriServ Financial, Inc.,
+1-814-533-5310 Web Site: http://www.ameriservfinancial.com/
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