AMERISERV FINANCIAL, INC. Item 2.02 Results of operation and financial condition.
Item 8.01 Other events.
On
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
99.1 Press release dated
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AMERISERV FINANCIAL, Inc. By /s/Michael D. Lynch Michael D. Lynch SVP & CFO Date:April 21, 2020 Exhibit 99.1
AMERISERV FINANCIAL REPORTS 2020 FIRST QUARTER EARNINGS AND ANNOUNCES QUARTERLY COMMON STOCK CASH DIVIDEND
First Quarter $ Change % Change
2020 First Quarter 2019
Net income $1,409,000 $1,878,000 ($469,000 ) (25.0%)
Diluted earnings per share $ 0.08 $ 0.11 ($0.03 ) (27.3%)
Specifically, in regards to the Paycheck Protection Program (PPP), we have
received approval from the
The Company's net interest income in the first quarter of 2020 increased by
Late in the quarter, the outbreak of the COVID-19 pandemic caused the yield
curve to move down further. Correspondingly, the
Total loans averaged
Total investment securities averaged
Total interest expense for the first quarter of 2020 decreased by
Management prudently and effectively executed several deposit product pricing decreases given the declining interest rate environment and the corresponding downward pressure that these falling interest rates have on the net interest margin. As a result, the Company experienced deposit cost relief. Specifically, the Company's average cost of interest bearing deposits declined by 17 basis points between the first quarter of 2020 and the first quarter of 2019. The Company's loan to deposit ratio averaged 89.2% in the first quarter of 2020 which we believe indicates that the Company has ample capacity to grow its loan portfolio and is positioned well to assist our customers and the community given the impact that the COVID-19 pandemic is having on the economy.
The Company experienced a
The Company recorded a
The 2020 provision reflects the loan growth experienced since last year along
with our decision to strengthen certain qualitative factors within our allowance
for loan losses calculation due to the economic uncertainty caused by the
COVID-19 pandemic. The Company's current asset quality remains strong as
evidenced by low levels of loan delinquency, net loan charge-offs and
non-performing assets. The Company experienced net loan charge-offs of
Total non-interest income in the first quarter of 2020 increased by
The Company's total non-interest expense in the first quarter of 2020 increased
by
The Company had total assets of
QUARTERLY COMMON STOCK CASH DIVIDEND
The Company's Board of Directors declared a
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 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
new 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
(1) Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial
Measures" at end of release.
AMERISERV FINANCIAL, INC.
NASDAQ: ASRV
SUPPLEMENTAL FINANCIAL PERFORMANCE DATA
March 31, 2020
(Dollars in thousands, except per share and ratio data)
(Unaudited)
2020
1QTR
PERFORMANCE DATA FOR THE PERIOD:
Net income $1,409
PERFORMANCE PERCENTAGES (annualized):
Return on average assets 0.48%
Return on average equity 5.69
Return on average tangible common equity (B) 6.46
Net interest margin 3.21
Net charge-offs (recoveries) as a percentage of average loans
0.06
Loan loss provision (credit) as a percentage of 0.08
average loans
Efficiency ratio 84.46
EARNINGS PER COMMON SHARE:
Basic $0.08
Average number of common shares outstanding 17,043
Diluted 0.08
Average number of common shares outstanding 17,099
Cash dividends paid per share $0.025
2019
1QTR 2QTR 3QTR 4QTR FULL YEAR 2019
PERFORMANCE DATA FOR THE PERIOD:
Net income $1,878 $1,792 $1,689 $669 $6,028
PERFORMANCE PERCENTAGES
(annualized):
Return on average assets 0.66% 0.61% 0.57% 0.23% 0.51%
Return on average equity 7.84 7.24 6.60 2.59 6.02Return on average tangible common 8.94 8.22 7.48 2.93 6.84 equity (B) Net interest margin
3.24 3.30 3.18 3.26 3.29
Net charge-offs (recoveries) as a
percentage of average loans 0.08 0.00 (0.01) 0.02 0.02
Loan loss provision (credit) as a (0.19) 0.00 0.10 0.44 0.09
percentage of
average loans
Efficiency ratio 83.90 82.18 81.65 85.30 83.23
EARNINGS PER COMMON SHARE:
Basic $0.11 $0.10 $0.10 $0.04 $0.35 Average number of common shares 17,578 17,476 17,278 17,111 17,359 outstanding Diluted
0.11 0.10 0.10 0.04 0.35
Average number of common shares 17,664 17,560 17,360 17,193 17,440
outstanding
Cash dividends paid per share
AMERISERV FINANCIAL, INC. NASDAQ: ASRV --CONTINUED-- (Dollars in thousands, except per share, statistical, and ratio data) (Unaudited) 2020 1QTR FINANCIAL CONDITION DATA AT PERIOD END: Assets$1,168,355 Short-term investments/overnight funds 6,431 Investment securities 184,784 Loans and loans held for sale 877,399 Allowance for loan losses 9,334Goodwill 11,944 Deposits 957,593 FHLB borrowings 74,572 Subordinated debt, net 7,517 Shareholders' equity 100,840 Non-performing assets 2,244 Tangible common equity ratio (B) 7.69%
Total capital (to risk weighted assets) ratio 13.41 PER COMMON SHARE: Book value
$5.92 Tangible book value (B) 5.22 Market value (C) 2.62
Wealth management assets - fair market value (A)
STATISTICAL DATA AT PERIOD END:
Full-time equivalent employees 306
Branch locations 16
Common shares outstanding 17,043,644
2019
1QTR 2QTR 3QTR 4QTR
FINANCIAL CONDITION DATA
AT PERIOD END:
Assets $1,167,682 $1,190,583 $1,171,426 $1,171,184
Short-term 7,996 6,532 6,039 6,526
investments/overnight funds
Investment securities 194,553 191,168 182,699 181,685
Loans and loans held for 863,134 890,081 875,082 887,574
sale
Allowance for loan losses 8,107 8,102 8,345 9,279
Goodwill 11,944 11,944 11,944 11,944
Deposits 957,779 968,480 969,989 960,513
FHLB borrowings 79,483 88,314 66,905 76,080
Subordinated debt, net 7,493 7,499 7,505 7,511
Shareholders' equity 99,061 101,476 102,460 98,614
Non-performing assets 1,168 1,681 1,957 2,339
Tangible common equity 7.54% 7.60% 7.81% 7.48%
ratio (B)
Total capital (to risk 13.37 13.14 13.33 13.49
weighted assets) ratio
PER COMMON SHARE:
Book value $5.65 $5.84 $5.98 $5.78
Tangible book value (B) 4.97 5.15 5.28 5.08
Market value (C) 4.02 4.15 4.14 4.20
Wealth management assets - $2,229,860 $2,288,576 $2,142,513 $2,237,898
fair market value (A)
STATISTICAL DATA AT PERIOD
END:
Full-time equivalent 309 309 308 309
employees
Branch locations 16 16 16 16Common shares outstanding 17,540,676 17,384,355 17,146,714 17,057,871
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.
AMERISERV FINANCIAL, INC. NASDAQ: ASRV CONSOLIDATED STATEMENT OF INCOME (Dollars in thousands) (Unaudited) 2020 1QTR INTEREST INCOME Interest and fees on loans$10,332 Interest on investments 1,612 Total Interest Income 11,944 INTEREST EXPENSE Deposits 2,458 All borrowings 735 Total Interest Expense 3,193 NET INTEREST INCOME 8,751 Provision (credit) for loan losses 175 NET INTEREST INCOME AFTER 8,576
PROVISION (CREDIT) FOR LOAN LOSSES
NON-INTEREST INCOME Wealth management fees 2,554 Service charges on deposit accounts 286
Net realized gains on loans held for sale 237 Mortgage related fees
126
Net realized gains on investment securities 0 Impairment charge on other investments
0
Bank owned life insurance 125
Other income 504
Total Non-Interest Income 3,832
NON-INTEREST EXPENSE
Salaries and employee benefits 6,704
Net occupancy expense 671
Equipment expense 395
Professional fees 1,154
FDIC deposit insurance expense 26
Other expenses 1,683
Total Non-Interest Expense 10,633
PRETAX INCOME 1,775
Income tax expense 366
NET INCOME $1,409
2019
1QTR 2QTR 3QTR 4QTR FULL YEAR 2019
INTEREST INCOME
Interest and fees on loans $10,418 $10,994 $10,737 $10,784 $42,933
Interest on investments 1,746 1,771 1,696 1,621 6,834
Total Interest Income 12,164 12,765 12,433 12,405 49,767
INTEREST EXPENSE
Deposits 2,730 2,867 2,895 2,697 11,189
All borrowings 777 837 774 748 3,136
Total Interest Expense 3,507 3,704 3,669 3,445 14,325
NET INTEREST INCOME 8,657 9,061 8,764 8,960 35,442
Provision (credit) for loan (400) 0 225 975 800
losses
NET INTEREST INCOME AFTER 9,057 9,061 8,539 7,985 34,642
PROVISION (CREDIT) FOR LOAN
LOSSES
NON-INTEREST INCOME
Wealth management fees 2,396 2,419 2,431 2,484 9,730
Service charges on deposit 310 317 321 323 1,271
accounts
Net realized gains on loans held 62 107 405 291 865 for sale Mortgage related fees 44 77 97 84 302 Net realized gains on investment 0 30 88 0 118 securities Impairment charge on other 0 0 0 (500) (500) investments Bank owned life insurance 128 129 131 133 521 Other income 665 578 622 601 2,466 Total Non-Interest Income 3,605 3,657 4,095 3,416 14,773
NON-INTEREST EXPENSE Salaries and employee benefits 6,301 6,348 6,324 6,456 25,429 Net occupancy expense
658 622 599 618 2,497
Equipment expense 361 387 333 429 1,510
Professional fees 1,120 1,249 1,276 1,240 4,885
FDIC deposit insurance expense 80 80 0 (60) 100
Other expenses 1,773 1,770 1,971 1,880 7,394
Total Non-Interest Expense 10,293 10,456 10,503 10,563 41,815
PRETAX INCOME 2,369 2,262 2,131 838 7,600
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