JOHNSTOWN, Pa., Oct. 17,
2023 /PRNewswire/
-- AmeriServ Financial, Inc. (NASDAQ: ASRV)
reported third quarter 2023 net income of $647,000, or $0.04
per diluted common share. This earnings performance was a
$1,455,000, or 69.2%, decrease from
the third quarter of 2022 when net income totaled $2,102,000, or $0.12 per diluted common share. For the
nine-month period ended September 30,
2023, the Company reported net income of $1,975,000, or $0.12 per diluted common share. This represents a
68.4% decrease in earnings per share from the nine-month period of
2022 when net income totaled $6,501,000, or $0.38 per diluted common share. The following
table details the Company's financial performance for both the
three- and nine-month periods ended September 30, 2023, and 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2023
|
|
Third
Quarter
2022
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
647,000
|
|
$
|
2,102,000
|
|
$
|
1,975,000
|
|
$
|
6,501,000
|
Diluted earnings per
share
|
|
$
|
0.04
|
|
$
|
0.12
|
|
$
|
0.12
|
|
$
|
0.38
|
Jeffrey A. Stopko, President and
Chief Executive Officer, commented on the 2023 third quarter
financial results: "While our net income is down year-over-year, we
have continued to effectively operate our customer relationship
focused community bank in a conservative manner amid a challenging
period for the industry. Importantly, we have seen several
encouraging new business development results in key areas so far
this year. For the first time in AmeriServ Financial's history, our
total loans now exceed $1 billion.
The loyalty of our deposit customers has shown excellent
resilience, with an increase of $20.8
million, or 1.9%, in total deposits since the end of 2022.
Additionally, wealth management revenues have now shown modest
growth for the past three consecutive quarters. We will work to
build on this positive momentum in the fourth quarter of 2023."
All third quarter and nine months of 2023 financial performance
metrics within this document are compared to the third quarter and
nine months of 2022 unless otherwise noted.
The Company's net interest income in the third quarter of 2023
decreased by $1.7 million, or 16.4%,
from the prior year's third quarter and, for the first nine months
of 2023, decreased by $3.0 million,
or 9.8%, when compared to the first nine months of 2022. The
Company's net interest margin of 2.76% for the third quarter of
2023 and 2.89% for the nine-month timeframe represents a 59-basis
point decrease for the quarter and a 35-basis point decline for the
nine-months. The Company's quarterly net interest margin
performance peaked in the third quarter of 2022. The decrease in
net interest income reflects total interest expense increasing to a
higher level than the increase in total interest income. The
Company continues to benefit from increased yields on total loans
and investment securities due to a higher U.S. Treasury yield curve
and the Federal Reserve's action to tighten monetary policy in
their effort to tame decades high inflation. But, similar to what
is occurring across the banking industry, increased national
interest rates have caused total deposit and borrowing costs to
increase to a higher degree, resulting in net interest margin
compression and lower net interest income. The provision for credit
losses expense was lower for the third quarter of 2023 versus last
year's third quarter, but increased for the nine months of 2023
compared to the same time period in 2022 as a result of a provision
benefit recognized during the nine months in 2022. Total
non-interest income is lower for the third quarter of 2023 but
improved for the nine-month time period. Total non-interest expense
is higher for both periods in 2023 compared to 2022, due to
additional legal and professional services costs related to
litigation and responses to the actions of an activist investor.
Overall, the decrease to net interest income, along with increased
non-interest expense were the primary reasons for the lower level
of earnings in both the third quarter and first nine months of
2023.
Total average loans in the third quarter of 2023 are higher than
the 2022 third quarter average by $18.6
million, or 1.9%, while total average loans for the first
nine months of 2023 were $11.6
million, or 1.2%, higher than the 2022 nine-month average.
Excluding PPP loans, which still existed on the balance sheet in
2022, the favorable comparisons for total average loans in both
time periods of 2023 would increase to $20.0
million, or 2.0%, for the third quarter, and increase to
$17.6 million, or 1.8%, for the nine
months. More significantly, on an end of period basis, total loans
at September 30, 2023, increased by
$22.9 million since the end of the
third quarter of 2022 and surpassed the $1.0
billion threshold for the first time in Company history.
Loan pipelines continue to be strong, and the loan portfolio has
demonstrated consistent growth in 2023 despite some customers
delaying fundings given the uncertainty that exists in the economy
and expectations regarding interest rates. Growth in commercial
& industrial (C&I), commercial real estate (CRE), and home
equity loans more than offset decreased residential mortgage and
consumer loans. Overall, the higher interest rate environment along
with the higher average volumes of C&I, CRE and home equity
loans, resulted in total loan interest income improving by
$2.5 million, or 23.0%, for the third
quarter of 2023, and by $8.1 million,
or 27.2%, for the nine months of 2023 when compared to both time
periods of last year. This increase occurred despite a $433,000 total reduction in PPP loan related
income in 2023.
Total investment securities averaged $262.7 million for the first nine months of 2023
which is $24.2 million, or 10.1%,
higher than the $238.5 million
average for the first nine months of last year. The increase
reflects additional securities purchased primarily during 2022 as
the U.S. Treasury yield curve increased resulting in a more
favorable market for securities purchasing activity causing the
Company to redeploy some of its short-term excess liquidity.
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 causing interest income from investments to increase by
$1.5 million, or 28.3%, through nine
months of this year. So far in 2023, purchases of securities have
slowed significantly as more funds have been allocated to the loan
portfolio and the Company has been controlling the amount of
overnight borrowed funds. While yields on new security purchases
exceed the overall average yield of the existing securities
portfolio, the spread between overnight borrowings and the yield on
new securities ranged from negative to only marginally positive
causing the slowdown in purchasing activity. Thus, the new
investment security purchases have primarily been used to replace
cash flow from maturing securities to maintain appropriate balances
for pledging purposes related to deposits of public funds. This is
an example of how the inverted treasury yield curve impacts the
Company's balance sheet management strategies. Overall, the 2023
first nine-month average balance of total interest earning assets
increased over last year's nine-month average by $10.1 million, or 0.8%, while total interest
income increased by $9.6 million, or
27.3%, since the first nine months of 2022.
On the liability side of the balance sheet, through nine months,
total average deposits are $8.3
million, or 0.7%, lower compared to the first nine months of
2022. The modest decrease since last year is reflective of a
portion of the funds from the government stimulus programs leaving
the balance sheet and greater pricing competition in the market to
retain deposits because of the increasing national interest rates.
The Company's core deposit base continued to demonstrate the
strength and stability that it has for many years, even during
times of turmoil when three large bank failures occurred earlier in
2023 and customer fear of contagion within the industry caused
deposit flight. Total deposits grew during the first nine months of
2023 by $20.8 million, or 1.9%, on an
end of period basis since December 31,
2022, demonstrating customer confidence in AmeriServ
Financial Bank. The Company does not utilize brokered deposits as a
funding source. In addition to its strong, loyal core deposit base,
the Company has several other sources of liquidity, including a
significant unused borrowing capacity at the Federal Home Loan Bank
(FHLB), overnight lines of credit at correspondent banks and access
to the Federal Reserve Discount Window. The loan to deposit ratio
averaged 86.5% in the third quarter of 2023, which indicates that
the Company has ample capacity to continue to grow its loan
portfolio and is well positioned to support our customers and our
community during times of economic volatility.
Total interest expense increased by $4.5
million, or 205.8%, for the third quarter of 2023, and by
$12.6 million, or 261.1%, for the
nine months of 2023 when compared to both time periods of last
year, due to higher deposit and short-term borrowings interest
expense. Deposit interest expense was higher by $11.4 million, or 328.0%, while the nine-month
2023 average volume of total interest-bearing deposits grew from
the 2022 nine-month average by $13.2
million, or 1.4%. The rising national interest rates
resulted in certain deposit products, particularly public funds,
which are tied to a market index, repricing upward with the move in
short-term national interest rates causing interest expense to
increase. Additionally, increased market competition resulted in
the Company increasing rates on certain shorter-term certificates
of deposit to retain funds. Another factor contributing to net
interest margin compression was an unfavorable deposit mix shift as
the nine-month average of non-interest bearing demand deposits
declined by $21.5 million, or 9.9%,
while, as mentioned above, total interest-bearing deposits
increased by $13.2 million, or 1.4%.
For interest rate risk management purposes and to offset a portion
of the unfavorable impact that rising funding costs are having on
net interest income, management proactively executed a $50 million interest rate hedge in February 2023 and another $10 million interest rate hedge in April 2023 to fix the cost of certain deposits
that are indexed and move with short-term interest rates. These
hedging transactions reduced the Company's negative variability of
net interest income in a rising interest rate environment and
helped slow net interest margin compression. Overall, total deposit
cost averaged 1.72% in the first nine-months of 2023, which is 132
basis points higher than total deposit cost of 0.40% in the first
nine-months of 2022.
Total borrowings interest expense increased by $536,000 in the third quarter of 2023 and by
$1.2 million, or 90.8%, in the first
nine-months of 2023 when compared to 2022. The increases result
from the impact that the higher national interest rates had on
overnight borrowings cost as well as the Company utilizing more
overnight borrowed funds so far in 2023. Total fed funds purchases
and other short-term borrowings averaged $33.9 million in the first nine months of 2023
after only averaging $2.2 million in
the first nine-months of 2022. As mentioned previously, given the
high cost of overnight borrowed funds, management has been
effectively controlling the usage of this funding source.
Borrowings interest expense was favorably impacted by reduced
interest expense from FHLB term borrowings greater than one year,
which declined by $95,000, or 20.9%,
during the nine months of 2023 compared to 2022. The average
balance of advances from FHLB was lower in the first nine months of
2023 by $17.4 million, or 48.1%, as
the Company's strong liquidity position allowed management to let
FHLB term advances mature during 2022 and not be replaced. However,
given the inversion in the yield curve, rates for FHLB term
advances are lower than the cost of overnight borrowed funds.
Therefore, management is replacing matured FHLB term advances in
2023 as part of our overall balance sheet management strategy.
The Company adopted ASU 2016-13, Financial Instruments –
Credit Losses (Topic 326): Measurement of Credit Losses on
Financial Instruments (CECL), as of January 1, 2023. Details of the day one
accounting adjustments were described in both the first and second
quarter press releases.
The Company recorded a $189,000
provision for credit losses in the third quarter of 2023 after
recognizing $500,000 provision
expense in the third quarter of 2022. For the first nine months of
2023, the Company recorded a $1.4
million provision for credit losses after recognizing a
$225,000 benefit in the first
nine-months of 2022 resulting in a net unfavorable change of
$1.6 million. Included in the
nine-month 2023 provision expense was the recognition of a
$926,000 loss from a subordinated
debt investment with Signature Bank which was closed by banking
regulators on March 12, 2023. This
was described in the Company's first quarter 2023 press release.
The 2023 provision for credit losses for the loan portfolio in both
time periods was necessary due to risk rating and non-accrual
activity. Total classified loan levels exhibited a net increase
during the first nine months of 2023 due to the downgrade of
several commercial real estate loan relationships earlier this
year. Overall non-performing assets remain well controlled,
totaling $5.9 million, or 0.59% of
total loans, at September 30, 2023.
Through nine months of 2023, the Company experienced net loan
charge-offs of $187,000, or 0.03% of
total average loans, which is lower than net charge-offs of
$1.5 million, or 0.21% of total
average loans, in the first nine months of 2022. In summary, the
allowance for credit losses on the loan portfolio provided 207%
coverage of non-performing assets, and 1.23% of total loans, at
September 30, 2023, compared to 207%
coverage of non-performing assets, and 1.08% of total loans, at
December 31, 2022.
Total non-interest income in the third quarter of 2023 decreased
by $70,000, or 1.6%, from the prior
year's third quarter, but improved by $826,000, or 6.5%, for the first nine-months of
2023 when compared to the first nine-months of 2022. Wealth
management fees demonstrated a slight improvement by $32,000, or 1.1%, for the third quarter of 2023,
but are $582,000, or 6.5%, lower for
the nine months compared to 2022. The market value of wealth
management assets increased since the third quarter of 2022 and
contributed to a favorable quarter versus quarter comparison for
wealth management fee income. However, nine-month results for
wealth management fees continue to reflect the unfavorable market
conditions for both equity securities and particularly bonds which
more than offset the positive impact of new customer business
growth in the first half of 2023. Overall, the fair market value of
wealth management assets declined since December 31, 2021, by $327.1 million, or 12.1%, and totaled
$2.4 billion at September 30, 2023. Other income is $136,000, or 16.7%, lower for the third quarter
of 2023 and $362,000, or 18.3%, lower
for the nine months due to the recognition of a credit valuation
adjustment to the market value of the interest rate swap contracts
that the Company executed to accommodate the needs of certain
borrowers while managing our interest rate risk position. The
improvement to total non-interest income for the 2023 nine-month
period was due to AmeriServ Financial Bank selling all 7,859
shares of the Class B common stock of Visa Inc. that the bank
owned, resulting in a $1.7 million
gain. The Company elected to capture this gain in 2023 due to
volatility and uncertainty in the financial markets. Finally, net
realized gains on loans held for sale decreased by $60,000, or 32.8%, for the first nine-months of
2023, as the limited housing supply along with sharply higher
interest rates continues to unfavorably impact residential mortgage
loan production.
Total non-interest expense in the third quarter of 2023
increased by $368,000, or 3.1%, when
compared to the third quarter of 2022 and increased by $1.9 million, or 5.4%, during the first
nine-months of 2023 when compared to the first nine-months of 2022.
The rise in total non-interest expense for both time periods is
primarily due to increased legal and professional fees related to
the defense against an activist investor and a proxy contest at our
2023 annual meeting. These costs amounted to $308,000 in the third quarter of 2023 and
$2.0 million for the nine-month
period. As expected, costs related to the activist shareholder
issue declined meaningfully between the second and third quarters
of 2023 by $828,000. However, given a
recent increase in activity by the activist investor, the Company
cannot determine at this time whether these costs will remain at a
lower level in the fourth quarter of 2023. Salaries & employee
benefits increased by $287,000, or
4.1%, in the third quarter of 2023 and $822,000, or 3.8%, for the first nine months of
2023. The increase is attributable to the annual employee merit
increases, a greater level of full-time equivalent employees (FTE)
as the Company filled certain open positions that were vacant last
year, and the impact that inflationary pressures are having on the
cost of new hires. Partially offsetting the higher level of
salaries were lower incentive compensation and pension expense as
there are fewer employees in the defined benefit pension plan due
to numerous retirements over the past few years. Data processing
and IT expenses increased by $103,000
in the third quarter of 2023 and $371,000, or 12.7%, in the nine months of 2023
due to increased software costs from our core data provider and
additional expenses related to monitoring our computing and network
environment. These negative items were partially offset by a
$1.4 million, or 29.0%, reduction in
other expense for the nine months of 2023 as the Company did not
have to recognize a pension settlement charge in 2023. The Company
recorded income tax expense of $124,000, or an effective tax rate of 16.1%, in
the third quarter of 2023, which compares to income tax expense of
$526,000, or an effective tax rate of
20.0%, for the third quarter of 2022. For the nine-month period in
2023, the Company's effective tax rate of 18.0% is lower than the
20.0% effective tax rate in 2022 due to the reduced level of
pre-tax income this year.
The Company had total assets of $1.362
billion, shareholders' equity of $101.3 million, a book value of $5.91 per common share and a tangible book
value(1) of $5.11 per
common share on September 30, 2023.
The decline in the Company's book value and tangible book value per
share at September 30, 2023 compared
to December 31, 2022 reflects a
decrease in the fair value of the Company's available for sale
investment securities by $6.1 million
due to higher interest rates. Note that this caused a greater
accumulated other comprehensive loss within total equity since
December 31, 2022, as the decline in
market value of the Company's available for sale investment
securities portfolio more than offset a positive market value
adjustment for the interest rate hedges. There was no required
revaluation of the net pension liability during the first nine
months of 2023. The Company continued to maintain strong capital
ratios that exceed the regulatory defined well capitalized status
as of September 30, 2023.
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 to 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; expense and
reputational impact on the Company as a result of litigation and
other expenses related to the continuing activities of an activist
shareholder; 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, 2022.
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
September 30,
2023
(Dollars in thousands,
except per share and ratio data)
(Unaudited)
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
YEAR TO
DATE
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
1,515
|
|
|
$
|
(187)
|
|
|
$
|
647
|
|
|
$
|
1,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE PERCENTAGES
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.45
|
%
|
|
|
(0.06)
|
%
|
|
|
0.19
|
%
|
|
|
0.20
|
%
|
Return on average
equity
|
|
|
5.85
|
|
|
|
(0.72)
|
|
|
|
2.49
|
|
|
|
2.53
|
|
Return on average
tangible common equity (1)
|
|
|
6.73
|
|
|
|
(0.82)
|
|
|
|
2.88
|
|
|
|
2.91
|
|
Net interest
margin
|
|
|
3.03
|
|
|
|
2.89
|
|
|
|
2.76
|
|
|
|
2.89
|
|
Net charge-offs
(recoveries) as a percentage of average loans
|
|
|
0.05
|
|
|
|
(0.02)
|
|
|
|
0.05
|
|
|
|
0.03
|
|
Efficiency ratio
(3)
|
|
|
79.58
|
|
|
|
101.55
|
|
|
|
92.60
|
|
|
|
90.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
(0.01)
|
|
|
$
|
0.04
|
|
|
$
|
0.12
|
|
Average number of
common shares outstanding
|
|
|
17,131
|
|
|
|
17,147
|
|
|
|
17,147
|
|
|
|
17,142
|
|
Diluted
|
|
|
0.09
|
|
|
|
(0.01)
|
|
|
|
0.04
|
|
|
|
0.12
|
|
Average number of
common shares outstanding
|
|
|
17,155
|
|
|
|
17,147
|
|
|
|
17,147
|
|
|
|
17,146
|
|
Cash dividends paid per
share
|
|
$
|
0.030
|
|
|
$
|
0.030
|
|
|
$
|
0.030
|
|
|
$
|
0.090
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
|
2QTR
|
|
3QTR
|
|
YEAR TO
DATE
|
PERFORMANCE DATA FOR
THE PERIOD:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
$
|
2,418
|
|
|
$
|
1,981
|
|
|
$
|
2,102
|
|
|
$
|
6,501
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE PERCENTAGES
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
|
|
|
0.73
|
%
|
|
|
0.59
|
%
|
|
|
0.62
|
%
|
|
|
0.65
|
%
|
Return on average
equity
|
|
|
|
|
|
8.48
|
|
|
|
7.10
|
|
|
|
7.81
|
|
|
|
7.80
|
|
Return on average
tangible common equity (1)
|
|
|
|
|
|
9.62
|
|
|
|
8.10
|
|
|
|
8.97
|
|
|
|
8.90
|
|
Net interest
margin
|
|
|
|
|
|
3.14
|
|
|
|
3.23
|
|
|
|
3.35
|
|
|
|
3.24
|
|
Net charge-offs
(recoveries) as a percentage of average loans
|
|
|
|
|
|
0.03
|
|
|
|
0.01
|
|
|
|
0.57
|
|
|
|
0.21
|
|
Efficiency ratio
(3)
|
|
|
|
|
|
81.38
|
|
|
|
84.89
|
|
|
|
78.93
|
|
|
|
81.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.38
|
|
Average number of
common shares outstanding
|
|
|
|
|
|
17,094
|
|
|
|
17,109
|
|
|
|
17,111
|
|
|
|
17,105
|
|
Diluted
|
|
|
|
|
|
0.14
|
|
|
|
0.12
|
|
|
|
0.12
|
|
|
|
0.38
|
|
Average number of
common shares outstanding
|
|
|
|
|
|
17,146
|
|
|
|
17,149
|
|
|
|
17,145
|
|
|
|
17,146
|
|
Cash dividends paid per
share
|
|
|
|
|
$
|
0.025
|
|
|
$
|
0.030
|
|
|
$
|
0.030
|
|
|
$
|
0.085
|
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
--CONTINUED--
(Dollars in thousands,
except per share, statistical, and ratio data)
(Unaudited)
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
3QTR
|
|
|
FINANCIAL CONDITION
DATA AT PERIOD END:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
$
|
1,345,957
|
|
$
|
1,345,721
|
|
$
|
1,361,789
|
|
|
Short-term
investments/overnight funds
|
|
|
|
|
|
4,116
|
|
|
3,366
|
|
|
3,598
|
|
|
Investment securities,
net of allowance for credit losses -
securities
|
|
|
|
|
|
238,613
|
|
|
232,259
|
|
|
229,335
|
|
|
Total loans and loans
held for sale, net of unearned income
|
|
|
|
|
|
980,877
|
|
|
988,221
|
|
|
1,002,306
|
|
|
Paycheck Protection
Program (PPP) loans (4)
|
|
|
|
|
|
19
|
|
|
18
|
|
|
15
|
|
|
Allowance for credit
losses - loans
|
|
|
|
|
|
12,132
|
|
|
12,221
|
|
|
12,313
|
|
|
Intangible
assets
|
|
|
|
|
|
13,731
|
|
|
13,724
|
|
|
13,718
|
|
|
Deposits
|
|
|
|
|
|
1,131,789
|
|
|
1,127,569
|
|
|
1,129,290
|
|
|
Short-term and FHLB
borrowings
|
|
|
|
|
|
69,124
|
|
|
72,793
|
|
|
85,568
|
|
|
Subordinated debt,
net
|
|
|
|
|
|
26,654
|
|
|
26,665
|
|
|
26,675
|
|
|
Shareholders'
equity
|
|
|
|
|
|
105,899
|
|
|
103,565
|
|
|
101,326
|
|
|
Non-performing
assets
|
|
|
|
|
|
4,599
|
|
|
5,650
|
|
|
5,939
|
|
|
Tangible common equity
ratio (1)
|
|
|
|
|
|
6.92
|
%
|
|
6.74
|
%
|
|
6.50
|
%
|
|
Total capital (to risk
weighted assets) ratio
|
|
|
|
|
|
14.17
|
|
|
14.00
|
|
|
13.72
|
|
|
PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
|
|
|
|
|
$
|
6.18
|
|
$
|
6.04
|
|
$
|
5.91
|
|
|
Tangible book value
(1)
|
|
|
|
|
|
5.38
|
|
|
5.24
|
|
|
5.11
|
|
|
Market value
(2)
|
|
|
|
|
|
3.05
|
|
|
2.54
|
|
|
2.65
|
|
|
Wealth management
assets – fair market value (5)
|
|
|
|
|
$
|
2,354,498
|
|
$
|
2,446,639
|
|
$
|
2,385,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent
employees
|
|
|
|
|
|
308
|
|
|
315
|
|
|
308
|
|
|
Branch
locations
|
|
|
|
|
|
17
|
|
|
17
|
|
|
17
|
|
|
Common shares
outstanding
|
|
|
|
|
|
17,147,270
|
|
|
17,147,270
|
|
|
17,147,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
|
2QTR
|
|
|
3QTR
|
|
|
4QTR
|
|
|
FINANCIAL CONDITION
DATA AT PERIOD END:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
$
|
1,331,265
|
|
$
|
1,321,402
|
|
$
|
1,350,048
|
|
$
|
1,363,874
|
|
|
Short-term
investments/overnight funds
|
|
|
13,588
|
|
|
10,714
|
|
|
4,133
|
|
|
4,132
|
|
|
Investment securities,
net of allowance for credit losses -
securities
|
|
|
223,286
|
|
|
231,255
|
|
|
236,867
|
|
|
241,386
|
|
|
Total loans and loans
held for sale, net of unearned income
|
|
|
978,692
|
|
|
965,587
|
|
|
979,450
|
|
|
990,825
|
|
|
Paycheck Protection
Program (PPP) loans (4)
|
|
|
7,835
|
|
|
2,242
|
|
|
24
|
|
|
22
|
|
|
Allowance for credit
losses - loans
|
|
|
11,922
|
|
|
11,568
|
|
|
10,672
|
|
|
10,743
|
|
|
Intangible
assets
|
|
|
13,761
|
|
|
13,753
|
|
|
13,746
|
|
|
13,739
|
|
|
Deposits
|
|
|
1,140,889
|
|
|
1,142,756
|
|
|
1,152,813
|
|
|
1,108,537
|
|
|
Short-term and FHLB
borrowings
|
|
|
37,863
|
|
|
34,028
|
|
|
54,796
|
|
|
108,406
|
|
|
Subordinated debt,
net
|
|
|
26,613
|
|
|
26,624
|
|
|
26,634
|
|
|
26,644
|
|
|
Shareholders'
equity
|
|
|
113,692
|
|
|
106,392
|
|
|
101,587
|
|
|
106,178
|
|
|
Non-performing
assets
|
|
|
3,401
|
|
|
3,240
|
|
|
4,596
|
|
|
5,200
|
|
|
Tangible common equity
ratio (1)
|
|
|
7.58
|
%
|
|
7.08
|
%
|
|
6.57
|
%
|
|
6.85
|
%
|
|
Total capital (to risk
weighted assets) ratio
|
|
|
14.01
|
|
|
14.33
|
|
|
13.92
|
|
|
13.87
|
|
|
PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
|
|
$
|
6.65
|
|
$
|
6.22
|
|
$
|
5.94
|
|
$
|
6.20
|
|
|
Tangible book value
(1)
|
|
|
5.84
|
|
|
5.41
|
|
|
5.13
|
|
|
5.40
|
|
|
Market value
(2)
|
|
|
4.04
|
|
|
3.94
|
|
|
3.80
|
|
|
3.94
|
|
|
Wealth management
assets – fair market value (5)
|
|
$
|
2,633,096
|
|
$
|
2,372,772
|
|
$
|
2,290,678
|
|
$
|
2,314,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICAL DATA AT
PERIOD END:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent
employees
|
|
|
301
|
|
|
310
|
|
|
306
|
|
|
315
|
|
|
Branch
locations
|
|
|
17
|
|
|
17
|
|
|
17
|
|
|
17
|
|
|
Common shares
outstanding
|
|
|
17,109,084
|
|
|
17,109,097
|
|
|
17,112,617
|
|
|
17,117,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________
|
NOTES:
|
(1)
Non-GAAP Financial Information. See "Reconciliation of
Non-GAAP Financial Measures" at end of release.
|
(2)
Based on closing price reported by the principal market on which
the share is traded on the last business day of the
corresponding reporting
period.
|
(3)
Ratio calculated by dividing total non-interest expense by tax
equivalent net interest income plus total non-interest
income.
|
(4)
Paycheck Protection Program (PPP) loans are included in total loans
and loans held for sale, net of unearned income.
|
(5)
Not recognized on the consolidated balance sheets.
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
CONSOLIDATED STATEMENT
OF INCOME
(Dollars in
thousands)
(Unaudited)
|
2023
|
|
|
|
|
|
1QTR
|
|
|
2QTR
|
|
3QTR
|
|
YEAR TO
DATE
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
|
|
|
$
|
12,276
|
|
|
$
|
|
12,609
|
|
$
|
13,154
|
|
$
|
38,039
|
Interest on
investments
|
|
|
|
|
|
2,298
|
|
|
|
|
2,270
|
|
|
2,285
|
|
|
6,853
|
Total Interest
Income
|
|
|
|
|
|
14,574
|
|
|
|
|
14,879
|
|
|
15,439
|
|
|
44,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
4,189
|
|
|
|
|
5,019
|
|
|
5,653
|
|
|
14,861
|
All
borrowings
|
|
|
|
|
|
863
|
|
|
|
|
750
|
|
|
987
|
|
|
2,600
|
Total Interest
Expense
|
|
|
|
|
|
5,052
|
|
|
|
|
5,769
|
|
|
6,640
|
|
|
17,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
|
|
|
9,522
|
|
|
|
|
9,110
|
|
|
8,799
|
|
|
27,431
|
Provision (credit) for
credit losses
|
|
|
|
|
|
1,179
|
|
|
|
|
43
|
|
|
189
|
|
|
1,411
|
NET INTEREST INCOME
AFTER PROVISION (CREDIT) FOR
CREDIT LOSSES
|
|
|
|
|
|
8,343
|
|
|
|
|
9,067
|
|
|
8,610
|
|
|
26,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management
fees
|
|
|
|
|
|
2,738
|
|
|
|
|
2,789
|
|
|
2,845
|
|
|
8,372
|
Service charges on
deposit accounts
|
|
|
|
|
|
266
|
|
|
|
|
280
|
|
|
311
|
|
|
857
|
Net realized gains on
loans held for sale
|
|
|
|
|
|
26
|
|
|
|
|
38
|
|
|
59
|
|
|
123
|
Mortgage related
fees
|
|
|
|
|
|
33
|
|
|
|
|
34
|
|
|
41
|
|
|
108
|
Gain on sale of Visa
Class B shares
|
|
|
|
|
|
1,748
|
|
|
|
|
0
|
|
|
0
|
|
|
1,748
|
Bank owned life
insurance
|
|
|
|
|
|
239
|
|
|
|
|
242
|
|
|
321
|
|
|
802
|
Other income
|
|
|
|
|
|
457
|
|
|
|
|
479
|
|
|
679
|
|
|
1,615
|
Total Non-Interest
Income
|
|
|
|
|
|
5,507
|
|
|
|
|
3,862
|
|
|
4,256
|
|
|
13,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
|
|
|
7,175
|
|
|
|
|
7,728
|
|
|
7,358
|
|
|
22,261
|
Net occupancy
expense
|
|
|
|
|
|
772
|
|
|
|
|
713
|
|
|
719
|
|
|
2,204
|
Equipment
expense
|
|
|
|
|
|
415
|
|
|
|
|
422
|
|
|
376
|
|
|
1,213
|
Professional
fees
|
|
|
|
|
|
1,308
|
|
|
|
|
1,907
|
|
|
1,146
|
|
|
4,361
|
Data processing and IT
expense
|
|
|
|
|
|
1,078
|
|
|
|
|
1,080
|
|
|
1,139
|
|
|
3,297
|
FDIC deposit insurance
expense
|
|
|
|
|
|
125
|
|
|
|
|
175
|
|
|
195
|
|
|
495
|
Other
expenses
|
|
|
|
|
|
1,090
|
|
|
|
|
1,152
|
|
|
1,162
|
|
|
3,404
|
Total Non-Interest
Expense
|
|
|
|
|
|
11,963
|
|
|
|
|
13,177
|
|
|
12,095
|
|
|
37,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRETAX INCOME
(LOSS)
|
|
|
|
|
|
1,887
|
|
|
|
|
(248)
|
|
|
771
|
|
|
2,410
|
Income tax expense
(benefit)
|
|
|
|
|
|
372
|
|
|
|
|
(61)
|
|
|
124
|
|
|
435
|
NET INCOME
(LOSS)
|
|
|
|
|
$
|
1,515
|
|
|
$
|
|
(187)
|
|
$
|
647
|
|
$
|
1,975
|
|
2022
|
|
|
|
|
|
1QTR
|
|
|
2QTR
|
|
3QTR
|
|
YEAR TO
DATE
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
|
|
|
$
|
9,496
|
|
|
$
|
|
9,725
|
|
$
|
10,691
|
|
$
|
29,912
|
Interest on
investments
|
|
|
|
|
|
1,532
|
|
|
|
|
1,802
|
|
|
2,009
|
|
|
5,343
|
Total Interest
Income
|
|
|
|
|
|
11,028
|
|
|
|
|
11,527
|
|
|
12,700
|
|
|
35,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
796
|
|
|
|
|
956
|
|
|
1,720
|
|
|
3,472
|
All
borrowings
|
|
|
|
|
|
465
|
|
|
|
|
447
|
|
|
451
|
|
|
1,363
|
Total Interest
Expense
|
|
|
|
|
|
1,261
|
|
|
|
|
1,403
|
|
|
2,171
|
|
|
4,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
|
|
|
9,767
|
|
|
|
|
10,124
|
|
|
10,529
|
|
|
30,420
|
Provision (credit) for
credit losses
|
|
|
|
|
|
(400)
|
|
|
|
|
(325)
|
|
|
500
|
|
|
(225)
|
NET INTEREST INCOME
AFTER PROVISION (CREDIT) FOR
CREDIT LOSSES
|
|
|
|
|
|
10,167
|
|
|
|
|
10,449
|
|
|
10,029
|
|
|
30,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management
fees
|
|
|
|
|
|
3,165
|
|
|
|
|
2,976
|
|
|
2,813
|
|
|
8,954
|
Service charges on
deposit accounts
|
|
|
|
|
|
272
|
|
|
|
|
263
|
|
|
289
|
|
|
824
|
Net realized gains on
loans held for sale
|
|
|
|
|
|
95
|
|
|
|
|
35
|
|
|
53
|
|
|
183
|
Mortgage related
fees
|
|
|
|
|
|
33
|
|
|
|
|
32
|
|
|
27
|
|
|
92
|
Gain on sale of Visa
Class B shares
|
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
0
|
|
|
0
|
Bank owned life
insurance
|
|
|
|
|
|
209
|
|
|
|
|
231
|
|
|
329
|
|
|
769
|
Other income
|
|
|
|
|
|
561
|
|
|
|
|
601
|
|
|
815
|
|
|
1,977
|
Total Non-Interest
Income
|
|
|
|
|
|
4,335
|
|
|
|
|
4,138
|
|
|
4,326
|
|
|
12,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
|
|
|
7,405
|
|
|
|
|
6,963
|
|
|
7,071
|
|
|
21,439
|
Net occupancy
expense
|
|
|
|
|
|
741
|
|
|
|
|
697
|
|
|
698
|
|
|
2,136
|
Equipment
expense
|
|
|
|
|
|
397
|
|
|
|
|
415
|
|
|
393
|
|
|
1,205
|
Professional
fees
|
|
|
|
|
|
630
|
|
|
|
|
838
|
|
|
948
|
|
|
2,416
|
Data processing and IT
expense
|
|
|
|
|
|
953
|
|
|
|
|
937
|
|
|
1,036
|
|
|
2,926
|
FDIC deposit insurance
expense
|
|
|
|
|
|
145
|
|
|
|
|
130
|
|
|
125
|
|
|
400
|
Other
expenses
|
|
|
|
|
|
1,208
|
|
|
|
|
2,130
|
|
|
1,456
|
|
|
4,794
|
Total Non-Interest
Expense
|
|
|
|
|
|
11,479
|
|
|
|
|
12,110
|
|
|
11,727
|
|
|
35,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRETAX INCOME
(LOSS)
|
|
|
|
|
|
3,023
|
|
|
|
|
2,477
|
|
|
2,628
|
|
|
8,128
|
Income tax expense
(benefit)
|
|
|
|
|
|
605
|
|
|
|
|
496
|
|
|
526
|
|
|
1,627
|
NET INCOME
(LOSS)
|
|
|
|
|
$
|
2,418
|
|
|
$
|
|
1,981
|
|
$
|
2,102
|
|
$
|
6,501
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
AVERAGE BALANCE SHEET
DATA
(Dollars in
thousands)
(Unaudited)
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
3QTR
|
|
NINE
MONTHS
|
|
3QTR
|
|
NINE
MONTHS
|
|
|
|
|
|
Interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and loans held
for sale, net of unearned income
|
|
$
|
994,263
|
|
$
|
988,955
|
|
$
|
975,615
|
|
$
|
977,386
|
|
|
|
|
|
Short-term investments
and bank deposits
|
|
|
3,196
|
|
|
3,766
|
|
|
13,009
|
|
|
29,409
|
|
|
|
|
|
Total investment
securities
|
|
|
260,198
|
|
|
262,654
|
|
|
253,398
|
|
|
238,491
|
|
|
|
|
|
Total interest earning
assets
|
|
|
1,257,657
|
|
|
1,255,375
|
|
|
1,242,022
|
|
|
1,245,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
|
14,673
|
|
|
15,899
|
|
|
17,814
|
|
|
17,820
|
|
|
|
|
|
Premises and
equipment
|
|
|
17,028
|
|
|
17,272
|
|
|
17,575
|
|
|
17,449
|
|
|
|
|
|
Other assets
|
|
|
75,372
|
|
|
75,027
|
|
|
74,758
|
|
|
79,016
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
(13,387)
|
|
|
(12,955)
|
|
|
(11,757)
|
|
|
(12,113)
|
|
|
|
|
|
Total assets
|
|
$
|
1,351,343
|
|
$
|
1,350,618
|
|
$
|
1,340,412
|
|
$
|
1,347,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand
|
|
$
|
225,395
|
|
$
|
225,793
|
|
$
|
226,606
|
|
$
|
228,425
|
|
|
|
|
|
Savings
|
|
|
126,589
|
|
|
129,594
|
|
|
139,724
|
|
|
138,524
|
|
|
|
|
|
Money market
|
|
|
299,694
|
|
|
300,415
|
|
|
289,701
|
|
|
290,946
|
|
|
|
|
|
Other time
|
|
|
309,719
|
|
|
301,384
|
|
|
283,504
|
|
|
286,061
|
|
|
|
|
|
Total interest bearing
deposits
|
|
|
961,397
|
|
|
957,186
|
|
|
939,535
|
|
|
943,956
|
|
|
|
|
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased
and other short-term borrowings
|
|
|
35,970
|
|
|
33,885
|
|
|
5,142
|
|
|
2,214
|
|
|
|
|
|
Advances from Federal
Home Loan Bank
|
|
|
20,455
|
|
|
18,784
|
|
|
31,109
|
|
|
36,164
|
|
|
|
|
|
Subordinated
debt
|
|
|
27,000
|
|
|
27,000
|
|
|
27,000
|
|
|
27,000
|
|
|
|
|
|
Lease
liabilities
|
|
|
3,138
|
|
|
3,207
|
|
|
3,424
|
|
|
3,477
|
|
|
|
|
|
Total interest bearing
liabilities
|
|
|
1,047,960
|
|
|
1,040,062
|
|
|
1,006,210
|
|
|
1,012,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
|
187,480
|
|
|
194,781
|
|
|
219,307
|
|
|
216,266
|
|
|
|
|
|
Other
liabilities
|
|
|
12,927
|
|
|
11,448
|
|
|
8,146
|
|
|
6,946
|
|
|
|
|
|
Shareholders'
equity
|
|
|
102,976
|
|
|
104,327
|
|
|
106,749
|
|
|
111,435
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
1,351,343
|
|
$
|
1,350,618
|
|
$
|
1,340,412
|
|
$
|
1,347,458
|
|
|
|
|
|
AMERISERV FINANCIAL,
INC.
NASDAQ: ASRV
CHANGES IN
SHAREHOLDERS' EQUITY
(Dollars in
thousands)
(Unaudited)
|
2023
|
|
|
|
Common
Stock
|
|
Treasury
Stock
|
|
Surplus
|
|
RETAINED
EARNINGS
|
|
ACCUMULATED
OTHER
COMPREHENSIVE
(LOSS) INCOME
|
|
TOTAL
|
Balance at December 31,
2022
|
|
$
|
267
|
|
$
|
(83,280)
|
|
$
|
146,225
|
|
$
|
65,486
|
|
$
|
(22,520)
|
|
$
|
106,178
|
Net income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1,515
|
|
|
0
|
|
|
1,515
|
Exercise of stock
options and stock
option expense
|
|
|
1
|
|
|
0
|
|
|
106
|
|
|
0
|
|
|
0
|
|
|
107
|
Adjustment for defined
benefit pension
plan
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
Adjustment for
unrealized gain on
available for sale securities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
449
|
|
|
449
|
Market value
adjustment for interest rate
hedge
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(655)
|
|
|
(655)
|
Cumulative effect
adjustment for change
in accounting principal
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1,181)
|
|
|
0
|
|
|
(1,181)
|
Common stock cash
dividend
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(514)
|
|
|
0
|
|
|
(514)
|
Balance at March 31,
2023
|
|
$
|
268
|
|
$
|
(83,280)
|
|
$
|
146,331
|
|
$
|
65,306
|
|
$
|
(22,726)
|
|
$
|
105,899
|
Net loss
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(187)
|
|
|
0
|
|
|
(187)
|
Exercise of stock
options and stock
option expense
|
|
|
0
|
|
|
0
|
|
|
12
|
|
|
0
|
|
|
0
|
|
|
12
|
Adjustment for defined
benefit pension
plan
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
Adjustment for
unrealized loss on
available for sale securities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(2,560)
|
|
|
(2,560)
|
Market value
adjustment for interest rate
hedge
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
916
|
|
|
916
|
Common stock cash
dividend
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(515)
|
|
|
0
|
|
|
(515)
|
Balance at June 30,
2023
|
|
$
|
268
|
|
$
|
(83,280)
|
|
$
|
146,343
|
|
$
|
64,604
|
|
$
|
(24,370)
|
|
$
|
103,565
|
Net income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
647
|
|
|
0
|
|
|
647
|
Exercise of stock
options and stock
option expense
|
|
|
0
|
|
|
0
|
|
|
11
|
|
|
0
|
|
|
0
|
|
|
11
|
Adjustment for defined
benefit pension
plan
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
Adjustment for
unrealized loss on
available for sale securities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(2,700)
|
|
|
(2,700)
|
Market value
adjustment for interest rate
hedge
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
316
|
|
|
316
|
Common stock cash
dividend
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(513)
|
|
|
0
|
|
|
(513)
|
Balance at September
30, 2023
|
|
$
|
268
|
|
$
|
(83,280)
|
|
$
|
146,354
|
|
$
|
64,738
|
|
$
|
(26,754)
|
|
$
|
101,326
|
|
2022
|
|
|
Common
Stock
|
|
Treasury
Stock
|
|
Surplus
|
|
RETAINED
EARNINGS
|
|
ACCUMULATED
OTHER
COMPREHENSIVE
(LOSS) INCOME
|
|
TOTAL
|
Balance at December 31,
2021
|
|
$
|
267
|
|
$
|
(83,280)
|
|
$
|
146,069
|
|
$
|
60,005
|
|
$
|
(6,512)
|
|
$
|
116,549
|
Net income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2,418
|
|
|
0
|
|
|
2,418
|
Exercise of stock
options and stock
option expense
|
|
|
0
|
|
|
0
|
|
|
93
|
|
|
0
|
|
|
0
|
|
|
93
|
Adjustment for defined
benefit pension
plan
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
919
|
|
|
919
|
Adjustment for
unrealized loss on
available for sale securities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(5,860)
|
|
|
(5,860)
|
Common stock cash
dividend
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(427)
|
|
|
0
|
|
|
(427)
|
Balance at March 31,
2022
|
|
$
|
267
|
|
$
|
(83,280)
|
|
$
|
146,162
|
|
$
|
61,996
|
|
$
|
(11,453)
|
|
$
|
113,692
|
Net income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1,981
|
|
|
0
|
|
|
1,981
|
Exercise of stock
options and stock
option expense
|
|
|
0
|
|
|
0
|
|
|
13
|
|
|
0
|
|
|
0
|
|
|
13
|
Adjustment for defined
benefit pension
plan
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(4,488)
|
|
|
(4,488)
|
Adjustment for
unrealized loss on
available for sale securities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(4,292)
|
|
|
(4,292)
|
Common stock cash
dividend
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(514)
|
|
|
0
|
|
|
(514)
|
Balance at June 30,
2022
|
|
$
|
267
|
|
$
|
(83,280)
|
|
$
|
146,175
|
|
$
|
63,463
|
|
$
|
(20,233)
|
|
$
|
106,392
|
Net income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2,102
|
|
|
0
|
|
|
2,102
|
Exercise of stock
options and stock
option expense
|
|
|
0
|
|
|
0
|
|
|
23
|
|
|
0
|
|
|
0
|
|
|
23
|
Adjustment for defined
benefit pension
plan
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(47)
|
|
|
(47)
|
Adjustment for
unrealized loss on
available for sale securities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(6,370)
|
|
|
(6,370)
|
Common stock cash
dividend
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(513)
|
|
|
0
|
|
|
(513)
|
Balance at September
30, 2022
|
|
$
|
267
|
|
$
|
(83,280)
|
|
$
|
146,198
|
|
$
|
65,052
|
|
$
|
(26,650)
|
|
$
|
101,587
|
Net income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
947
|
|
|
0
|
|
|
947
|
Exercise of stock
options and stock
option expense
|
|
|
0
|
|
|
0
|
|
|
27
|
|
|
0
|
|
|
0
|
|
|
27
|
Adjustment for defined
benefit pension
plan
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
3,932
|
|
|
3,932
|
Adjustment for
unrealized gain on
available for sale securities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
198
|
|
|
198
|
Common stock cash
dividend
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(513)
|
|
|
0
|
|
|
(513)
|
Balance at December 31,
2022
|
|
$
|
267
|
|
$
|
(83,280)
|
|
$
|
146,225
|
|
$
|
65,486
|
|
$
|
(22,520)
|
|
$
|
106,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. We also believe that presenting non-GAAP financial
measures
provides additional information to facilitate comparison of our
historical operating results and trends in our underlying operating
results. We consider
quantitative and qualitative factors in assessing whether to adjust
for the impact of items that may be significant or that could
affect an understanding
of our ongoing financial and business performance or
trends.
|
2023
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
|
|
3QTR
|
|
YEAR TO
DATE
|
|
RETURN ON AVERAGE
TANGIBLE
COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
$
|
1,515
|
|
$
|
(187)
|
|
|
|
$
|
647
|
|
$
|
1,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
|
|
|
105,092
|
|
|
104,913
|
|
|
|
|
102,976
|
|
|
104,327
|
|
Less: Average
intangible assets
|
|
|
|
|
|
13,734
|
|
|
13,727
|
|
|
|
|
13,720
|
|
|
13,727
|
|
Average tangible common
equity
|
|
|
|
|
|
91,358
|
|
|
91,186
|
|
|
|
|
89,256
|
|
|
90,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity
(annualized)
|
|
|
|
|
|
6.73
|
%
|
|
(0.82)
|
%
|
|
|
|
2.88
|
%
|
|
2.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
|
|
3QTR
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
|
|
$
|
105,899
|
|
$
|
103,565
|
|
|
|
$
|
101,326
|
|
Less: Intangible
assets
|
|
|
|
|
|
13,731
|
|
|
13,724
|
|
|
|
|
13,718
|
|
Tangible common
equity
|
|
|
|
|
|
92,168
|
|
|
89,841
|
|
|
|
|
87,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
1,345,957
|
|
|
1,345,721
|
|
|
|
|
1,361,789
|
|
Less: Intangible
assets
|
|
|
|
|
|
13,731
|
|
|
13,724
|
|
|
|
|
13,718
|
|
Tangible
assets
|
|
|
|
|
|
1,332,226
|
|
|
1,331,997
|
|
|
|
|
1,348,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
ratio
|
|
|
|
|
|
6.92
|
%
|
|
6.74
|
%
|
|
|
|
6.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares
outstanding
|
|
|
|
|
|
17,147,270
|
|
|
17,147,270
|
|
|
|
|
17,147,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
share
|
|
|
|
|
$
|
5.38
|
|
$
|
5.24
|
|
|
|
$
|
5.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
|
|
3QTR
|
|
YEAR
TO
DATE
|
|
RETURN ON AVERAGE
TANGIBLE
COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
$
|
2,418
|
|
$
|
1,981
|
|
|
|
$
|
2,102
|
|
$
|
6,501
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
|
|
|
115,658
|
|
|
111,898
|
|
|
|
|
106,749
|
|
|
111,435
|
|
Less: Average
intangible assets
|
|
|
|
|
|
13,766
|
|
|
13,757
|
|
|
|
|
13,749
|
|
|
13,757
|
|
Average tangible common
equity
|
|
|
|
|
|
101,892
|
|
|
98,141
|
|
|
|
|
93,000
|
|
|
97,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity
(annualized)
|
|
|
|
|
|
9.62
|
%
|
|
8.10
|
%
|
|
|
|
8.97
|
%
|
|
8.90
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1QTR
|
|
2QTR
|
|
|
3QTR
|
|
|
|
|
4QTR
|
|
TANGIBLE COMMON
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
113,692
|
|
$
|
106,392
|
|
$
|
101,587
|
|
|
|
$
|
106,178
|
|
Less: Intangible
assets
|
|
|
13,761
|
|
|
13,753
|
|
|
13,746
|
|
|
|
|
13,739
|
|
Tangible common
equity
|
|
|
99,931
|
|
|
92,639
|
|
|
87,841
|
|
|
|
|
92,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
1,331,265
|
|
|
1,321,402
|
|
|
1,350,048
|
|
|
|
|
1,363,874
|
|
Less: Intangible
assets
|
|
|
13,761
|
|
|
13,753
|
|
|
13,746
|
|
|
|
|
13,739
|
|
Tangible
assets
|
|
|
1,317,504
|
|
|
1,307,649
|
|
|
1,336,302
|
|
|
|
|
1,350,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
ratio
|
|
|
7.58
|
%
|
|
7.08
|
%
|
|
6.57
|
%
|
|
|
|
6.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares
outstanding
|
|
|
17,109,084
|
|
|
17,109,097
|
|
|
17,112,617
|
|
|
|
|
17,117,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
share
|
|
$
|
5.84
|
|
$
|
5.41
|
|
$
|
5.13
|
|
|
|
$
|
5.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ameriserv-financial-reports-earnings-for-the-third-quarter-and-first-nine-months-of-2023-301958148.html
SOURCE AmeriServ Financial, Inc.