JOHNSTOWN, Pa., Jan. 24 /PRNewswire-FirstCall/ --
AmeriServ Financial, Inc. (Nasdaq: ASRV) announced today that its Board of
Directors approved suspension of the Company's common stock dividend as a
result of actions taken to strengthen its allowance for loans losses. The
Company expects that its loan loss provision for the fourth quarter of 2002
will approximate $3.5 million. The actions taken to strengthen the allowance
for loan losses resulted from a concerted effort to carefully review the
Company's loan portfolio in light of the continued weakness in the economy and
deterioration in credit quality. While this provision level is comparable
with the third quarter provision amount of $3.4 million, net charge-offs for
the fourth quarter are projected to be significantly lower and approximate
only $300,000 compared to $3.1 million of net charge-offs in the third quarter
of 2002. As a result, the balance in the allowance for loan losses and key
loan portfolio coverage ratios will grow and move more in line with peer bank
levels. Specifically, the Company anticipates that at December 31, 2002, its
loan loss reserve coverage of total loans will be in excess of 1.50% and its
coverage of non-performing assets will exceed 125%. At September 30, 2002,
the Company's allowance for loan losses amounted to 0.97% of total loans and
provided 106% coverage of non-performing assets.
(Photo: http://www.newscom.com/cgi-bin/prnh/20020717/ASRVLOGO )
Craig G. Ford, Interim Chairman, President & CEO, states, "AmeriServ
Financial will enter 2003 with a more conservatively positioned balance sheet.
This needed loan loss provision will cause AmeriServ Financial to report a net
loss for the fourth quarter of 2002 and overshadows improvements made in
reducing non-interest expense and stabilizing the Company's net interest
margin. While it is necessary to suspend the common stock dividend payment,
the Company remains committed to honoring the dividend requirement on its
trust preferred securities."
The Company plans to release its fourth quarter and full-year 2002
financial results at the close of business on January 31, 2003.
AmeriServ Financial, Inc., is the parent of AmeriServ Financial Bank and
AmeriServ Trust & Financial Services in Johnstown, AmeriServ Associates of
State College, and AmeriServ Life Insurance Company. At September 30, 2002,
the Company had total assets of $1.2 billion and shareholders equity of $80
million or $5.77 per common share.
SOURCE AmeriServ Financial, Inc.
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Related links:
http://www.ameriservfinancial.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20020717/ASRVLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
CONTACT:
Jeffrey A. Stopko, Senior Vice President &
Chief Financial Officer of AmeriServ Financial, +1-814-533-5310
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