JOHNSTOWN, Pa., Jan. 31 /PRNewswire-FirstCall/ --
AmeriServ Financial, Inc. (Nasdaq: ASRV) today reported a net loss for the
fourth quarter of 2002 amounting to $1,962,000 or $0.14 per share. For the
full year 2002, the Company's net loss amounted to $5,152,000 or $0.37 per
share. As discussed in a January 24, 2003 press release, the Company noted
that it expected to report a net loss in the fourth quarter of 2002 due
primarily to an increased provision for loan losses. The following table
highlights the Company's financial performance for both the quarters and
years-ended December 31, 2002 and 2001:
Fourth Fourth Year Ended Year Ended
Quarter Quarter Dec. 31, Dec. 31,
2002 2001 2002 2001
Net income (loss) ($1,962,000) $401,000 ($5,152,000) $1,975,000
Diluted earnings
(loss) per share (0.14) 0.03 (0.37) 0.15
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At December 31, 2002, ASRV had total assets of $1.18 billion and
shareholders' equity of $78 million or $5.59 per share. The Company continues
to be considered well capitalized for regulatory purposes with an asset
leverage ratio at December 31, 2002 of 6.84%, compared to a regulatory minimum
of 5.0%.
The Company's provision for loan losses totaled $4.5 million or 3.06% of
total loans in the fourth quarter of 2002. This represented an increase of
$4.1 million from the fourth quarter 2001 provision of $390,000 or 0.27% of
total loans. The fourth quarter 2002 provision exceeded net charge-offs for
the quarter that totaled $252,000 or 0.17% of total loans. 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. As a result, the
balance in the allowance for loan losses and key loan portfolio coverage
ratios grew. Specifically, at December 31, 2002, the loan loss reserve as a
percentage of total loans amounted to 1.75% compared to 0.97% at both
September 30, 2002 and December 31, 2001. The Company's loan loss reserve
coverage of non-performing assets also improved to 144% at December 31, 2002
compared to 106% at September 30, 2002 and 58% at December 31, 2001. At
December 31, 2002, total non-performing assets amounted to $7.0 million or
1.22% of total loans.
The Company's net interest income in the fourth quarter of 2002 decreased
by $356,000 from the prior year fourth quarter due to a reduced level of
earning assets. The decline in the level of earning assets was due to a
$71 million reduction in the investment securities portfolio. This decrease
resulted from the Company's decision to reduce its interest rate risk by
maintaining a lower borrowed funds position in 2002. As a result of this
action, the Company's level of Federal Home Loan Bank advances and short term
borrowings to total assets averaged 31.5% in the fourth quarter of 2002
compared to 35.6% in the fourth quarter of 2001. There was limited change in
the Company's net interest margin as it averaged 2.47% in the fourth quarter
of 2002 compared to 2.49% in the fourth quarter of 2001. When analyzing the
more recent trend experienced over the second half of 2002 both net interest
income and net interest margin displayed more stability. Specifically,
between the third and fourth quarter of 2002, the Company's net interest
income declined by $110,000 and the net interest margin dropped by only one
basis point.
The Company's total non-interest income in the fourth quarter of 2002
increased by $308,000 or 6.4% due primarily to increased gains generated on
mortgage loan sales into the secondary market and greater fee income from
deposit service charges. The Company also successfully exited the merchant
card business by generating a $185,000 gain on the sale of its merchant card
portfolio in the fourth quarter of 2002. As part of its earnings improvement
program, the Company concluded that it lacked the necessary scale to
effectively compete in this line of business. These positive items were
partially offset by a lower level of trust fees and reduced gains on
investment security sales.
The Company's total non-interest expense in the fourth quarter of 2002
decreased by $569,000 or 5.2% from the fourth quarter of 2001. Salaries and
employee benefits dropped by $163,000 from the prior year fourth quarter and
by a more significant $360,000 from the third quarter of 2002 due to savings
from the Company's earnings improvement program. There were 53 fewer full
time equivalent employees when compared to the fourth quarter of 2001 and 42
fewer when compared to June 30, 2002, the start date for the earnings
improvement program. The Company also benefited from the January 1, 2002
adoption of Statement of Financial Accounting Standards #142 which requires
that goodwill no longer be amortized but reviewed annually for impairment.
The Company recorded $325,000 of amortization expense in the fourth quarter of
2001 while no amortization of, or impairment charges to goodwill were recorded
in the fourth quarter of 2002. Fourth quarter 2002 expenses were negatively
impacted by a higher level of professional fees due to higher legal and audit
costs.
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.
This news release may contain forward-looking statements that involve
risks and uncertainties, including the risks detailed in the Company's Annual
Report and Form 10-K to the Securities and Exchange Commission as defined in
the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially.
Nasdaq NMS: ASRV
SUPPLEMENTAL FINANCIAL PERFORMANCE DATA (A)
January 31, 2003
(In thousands, except per share and ratio data)
2002
1QTR 2QTR 3QTR 4QTR YEAR
TO DATE
PERFORMANCE DATA
FOR THE PERIOD:
Net interest
income $6,583 $7,307 $6,794 $6,684 $27,368
Net interest
income tax
equivalency
adjustment 15 19 20 18 72
Net income (loss) 626 408 (4,224) (1,962) (5,152)
PERFORMANCE PERCENTAGES
(annualized):
Return on average
equity 3.16% 2.04% (20.19)% (9.80)% (6.37)%
Net interest margin 2.35 2.63 2.48 2.47 2.51
Net charge-offs as
a percentage of
average loans 0.06 1.09 2.08 0.17 0.85
Loan loss provision
as a percentage
of average loans 0.37 0.56 2.24 3.06 1.56
Net overhead expense
as a percentage
of tax equivalent
net interest
income 80.13 82.34 147.87 78.87 97.23
Efficiency ratio 88.34 89.52 127.78 87.98 98.39
PER COMMON SHARE:
Net income (loss):
Basic $0.05 $0.03 $(0.31) $(0.14) $(0.37)
Average number of
common shares
outstanding 13,689,478 13,748,179 13,799,547 13,887,932 13,781,878
Diluted 0.05 0.03 (0.31) (0.14) (0.37)
Average number of
common shares
outstanding 13,712,382 13,778,716 13,800,897 13,889,196 13,789,482
Cash dividends
declared 0.09 0.09 0.09 0.03 0.30
CASH PERFORMANCE
RESULTS: (B)
Earnings (loss) $922 $726 $(3,997) $(1,751) $(4,100)
Diluted earnings
(loss) per
common share 0.07 0.05 (0.29) (0.13) (0.30)
Return on average
equity 4.67% 3.63% (19.37)% (8.74)% (5.07)%
Efficiency ratio 85.16 86.62 124.73 84.94 95.35
2001
1QTR 2QTR 3QTR 4QTR YEAR
TO DATE
PERFORMANCE DATA
FOR THE PERIOD:
Net interest
income $7,115 $7,176 $6,867 $7,040 $28,198
Net interest income
tax equivalency
adjustment 269 322 251 181 1,023
Net income 696 638 240 401 1,975
PERFORMANCE PERCENTAGES
(annualized):
Return on average
equity 3.60% 3.26% 1.18% 1.86% 2.44%
Net interest
margin 2.48 2.47 2.35 2.49 2.45
Net charge-offs
as a percentage
of average loans 0.16 0.65 0.06 0.17 0.26
Loan loss provision
as a percentage
of average loans 0.22 0.24 0.22 0.27 0.24
Net overhead expense
as a percentage
of tax equivalent
net interest
income 80.31 80.71 88.75 85.33 83.71
Efficiency ratio 87.59 87.04 93.56 91.17 89.94
PER COMMON SHARE:
Net income:
Basic $0.05 $0.05 $0.02 $0.03 $0.15
Average number of
common shares
outstanding 13,495,422 13,543,592 13,588,753 13,637,279 13,566,712
Diluted 0.05 0.05 0.02 0.03 0.15
Average number of
common shares
outstanding 13,497,986 13,559,755 13,629,424 13,639,201 13,570,214
Cash dividends
declared 0.09 0.09 0.09 0.09 0.36
CASH PERFORMANCE
RESULTS: (B)
Earnings $1,307 $1,251 $862 $1,020 $4,440
Diluted earnings
per share 0.10 0.09 0.06 0.07 0.33
Return on average
equity 6.78% 6.40% 4.29% 4.73% 5.50%
Efficiency ratio 81.76 80.91 88.06 85.48 84.16
NOTES:
(A) All quarterly data unaudited.
(B) For 2002, cash performance results exclude amortization related to
core deposit intangibles which, except in the calculation of the
efficiency ratio, are net of applicable income tax effects. For
2001, cash performance results exclude amortization related to both
goodwill and core deposit intangibles. While mortgage servicing
impairment charges are non-cash at the time of recognition, they are
by industry definition not excluded from cash performance.
AMERISERV FINANCIAL, INC.
(In thousands, except per share, statistical, and ratio data)
2002
1QTR 2QTR 3QTR 4QTR
PERFORMANCE DATA
AT PERIOD END
Assets $1,213,764 $1,202,086 $1,182,678 $1,175,550
Investment securities 532,349 493,322 491,861 505,778
Loans 585,085 597,801 590,270 568,760
Loans held for sale 2,539 2,977 4,015 4,217
Allowance for loan
losses 6,286 5,518 5,757 10,035
Goodwill and core
deposit intangibles 16,968 16,610 16,252 15,894
Mortgage servicing
rights 8,315 7,566 5,146 6,917
Deposits 680,435 705,662 674,573 669,929
Stockholders' equity 78,051 82,491 79,711 77,756
Trust assets 1,198,480 1,190,834 1,082,311 1,057,816
Non-performing assets 9,105 5,668 5,407 6,964
Asset leverage ratio 7.54% 7.46% 7.00% 6.84%
PER COMMON SHARE:
Book value (A) $5.69 $6.00 $5.77 $5.59
Market value 4.96 4.58 2.45 2.85
Market price to
book value 87.17% 76.37% 42.45% 50.98%
STATISTICAL DATA
AT PERIOD END:
Full-time equivalent
employees 468 464 445 422
Branch locations 24 24 24 23
Common shares
outstanding 13,709,329 13,754,342 13,811,595 13,898,302
2001
1QTR 2QTR 3QTR 4QTR
PERFORMANCE DATA
AT PERIOD END
Assets $1,297,811 $1,341,375 $1,300,891 $1,198,859
Investment securities 624,226 654,716 620,212 498,626
Loans 572,613 564,364 584,120 593,301
Loans held for sale 2,934 6,559 2,510 6,180
Allowance for loan
losses 6,023 5,462 5,692 5,830
Goodwill and core
deposit intangibles 19,375 18,692 18,009 17,326
Mortgage servicing
rights 9,117 9,086 7,723 7,828
Deposits 657,944 666,373 650,169 676,346
Stockholders' equity 80,211 78,349 85,369 79,490
Trust assets 1,274,667 1,268,313 1,320,154 1,226,722
Non-performing assets 5,158 3,820 5,538 10,044
Asset leverage ratio 6.63% 6.58% 7.05% 7.12%
PER COMMON SHARE:
Book value (A) $5.94 $5.78 $6.28 $5.83
Market value 4.56 5.15 4.60 4.80
Market price to
book value 76.80% 89.07% 73.27% 82.38%
STATISTICAL DATA
AT PERIOD END:
Full-time equivalent
employees 464 461 468 475
Branch locations 23 23 23 24
Common shares
outstanding 13,502,693 13,550,193 13,596,946 13,642,411
NOTES:
(A) Other comprehensive income had a positive impact of $0.42 on book
value per share at December 31, 2002.
AMERISERV FINANCIAL, INC.
Nasdaq NMS: ASRV
Average Balance Sheet Data (In thousands)
(Quarterly Data Unaudited)
Note: 2001 data appears before 2002.
2001 2002
TWELVE TWELVE
4QTR MONTHS 4QTR MONTHS
Interest earning
assets:
Loans and loans held
for sale, net of
unearned income $574,635 $563,392 $582,327 $585,646
Deposits with banks 16,367 17,173 9,034 14,859
Federal funds sold 2,597 1,087 63 542
Total investment
securities 555,537 599,427 484,810 492,146
Total interest
earning assets 1,149,136 1,181,079 1,076,234 1,093,193
Non-interest earning
assets:
Cash and due from
banks 23,400 21,627 24,148 22,700
Premises and equipment 13,385 13,348 12,913 13,165
Other assets 73,978 68,192 66,041 67,359
Allowance for loan
losses (5,759) (5,798) (6,113) (5,997)
Total assets $1,254,140 $1,278,448 $1,173,223 $1,190,420
Interest bearing
liabilities:
Interest bearing
deposits:
Interest bearing
demand $47,586 $47,530 $50,853 $49,681
Savings 90,652 91,926 101,179 100,454
Money market 131,981 134,799 127,482 129,902
Other time 302,667 303,135 295,163 300,683
Total interest
bearing deposits 572,886 577,390 574,677 580,720
Borrowings:
Federal funds purchased,
securities sold under
agreements to repurchase,
and other short-term
borrowings 49,611 54,217 86,440 56,633
Advanced from Federal
Home Loan Bank 397,276 423,767 283,131 322,557
Guaranteed junior
subordinated deferrable
interest debentures 34,500 34,500 34,500 34,500
Long-term debt - 2,543 - -
Total interest bearing
liabilities 1,054,273 1,092,417 978,748 994,410
Non-interest bearing
liabilities:
Demand deposits 99,752 91,033 106,507 105,830
Other liabilities 14,628 14,217 8,520 9,356
Stockholders' equity 85,487 80,781 79,448 80,824
Total liabilities
and stockholders'
equity $1,254,140 $1,278,448 $1,173,223 $1,190,420
AMERISERV FINANCIAL, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands)
(Quarterly data unaudited)
2002
YEAR
INTEREST INCOME 1QTR 2QTR 3QTR 4QTR TO DATE
Interest and fees
on loans $10,562 $10,434 $10,191 $9,835 $41,022
Total investment
portfolio 6,698 6,637 6,011 5,647 24,993
Total Interest
Income 17,260 17,071 16,202 15,482 66,015
INTEREST EXPENSE
Deposits 4,288 4,215 4,015 3,535 16,053
All other funding
sources 6,389 5,549 5,393 5,263 22,594
Total Interest
Expense 10,677 9,764 9,408 8,798 38,647
NET INTEREST INCOME 6,583 7,307 6,794 6,684 27,368
Provision for loan
losses 540 815 3,380 4,530 9,265
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN LOSSES 6,043 6,492 3,414 2,154 18,103
NON-INTEREST INCOME
Trust fees 1,279 1,235 1,077 1,081 4,672
Net realized gains on
investment securities
available for sale 637 1,314 1,356 987 4,294
Net realized gains on
loans and loans held
for sale 124 141 160 354 779
Service charges on
deposit accounts 674 694 732 806 2,906
Net mortgage servicing
fees 92 123 97 101 413
Bank owned life
insurance 554 317 309 311 1,491
Other income 1,288 1,200 1,198 1,446 5,132
Total Non-interest
Income 4,648 5,024 4,929 5,086 19,687
NON-INTEREST EXPENSE
Salaries and employee
benefits 5,145 5,128 5,342 4,982 20,597
Net occupancy expense 739 750 682 689 2,860
Equipment expense 783 768 741 752 3,044
Professional fees 750 847 1,057 1,189 3,843
FDIC deposit insurance
expense 29 29 28 30 116
Amortization of core
deposit intangibles 358 358 358 358 1,432
Impairment charge
(credit) for mortgage
servicing rights (123) 787 3,034 - 3,698
Wholesale mortgage
production exit costs (26) (14) - - (40)
Restructuring costs - - 920 - 920
Other expenses 2,280 2,403 2,843 2,371 9,897
Total Non-interest
Expense 9,935 11,056 15,005 10,371 46,367
INCOME (LOSS) BEFORE
INCOME TAXES 756 460 (6,662) (3,131) (8,577)
Provision (benefit)
for income taxes 130 52 (2,438) (1,169) (3,425)
NET INCOME (LOSS) $626 $408 $(4,224) $(1,962) $(5,152)
2001
YEAR
INTEREST INCOME 1QTR 2QTR 3QTR 4QTR TO DATE
Interest and fees
on loans $11,699 $11,119 $11,058 $11,010 $44,886
Total investment
portfolio 9,475 9,878 9,507 7,913 36,773
Total Interest
Income 21,174 20,997 20,565 18,923 81,659
INTEREST EXPENSE
Deposits 5,970 5,547 5,375 4,650 21,542
All other funding
sources 8,089 8,274 8,323 7,233 31,919
Total Interest
Expense 14,059 13,821 13,698 11,883 53,461
NET INTEREST INCOME 7,115 7,176 6,867 7,040 28,198
Provision for loan
losses 315 330 315 390 1,350
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN LOSSES 6,800 6,846 6,552 6,650 26,848
NON-INTEREST INCOME
Trust fees 1,247 1,204 1,114 1,194 4,759
Net realized gains on
investment securities
available for sale 381 253 179 1,100 1,913
Net realized gains on
loans and loans held
for sale 176 170 186 186 718
Service charges on
deposit accounts 465 482 523 705 2,175
Net mortgage servicing
fees 121 88 92 48 349
Bank owned life
insurance 313 308 313 313 1,247
Gain on sale of branch - - 1,396 - 1,396
Other income 1,627 1,151 1,508 1,232 5,518
Total Non-interest
Income 4,330 3,656 5,311 4,778 18,075
NON-INTEREST EXPENSE
Salaries and employee
benefits 4,847 4,716 4,877 5,145 19,585
Net occupancy expense 751 651 641 715 2,758
Equipment expense 812 685 684 759 2,940
Professional fees 683 682 678 893 2,936
FDIC deposit insurance
expense 31 31 29 31 122
Amortization of
goodwill and core
deposit intangibles 683 683 683 683 2,732
Impairment charge for
mortgage servicing
rights 367 141 1,636 366 2,510
Wholesale mortgage
production exit costs - (103) (152) (19) (274)
Other expenses 2,086 2,222 2,552 2,367 9,227
Total Non-interest
Expense 10,260 9,708 11,628 10,940 42,536
INCOME BEFORE INCOME
TAXES 870 794 235 488 2,387
Provision (benefit)
for income taxes 174 156 (5) 87 412
NET INCOME $696 $638 $240 $401 $1,975
SOURCE AmeriServ Financial, Inc.
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Related links:
http://www.ameriservfinancial.com
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NewsCom:
http://www.newscom.com/cgi-bin/prnh/20020717/ASRVLOGO
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CONTACT:
Jeffrey A. Stopko, Senior Vice President &
Chief Financial Officer of AmeriServ Financial, +1-814-533-5310
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