JOHNSTOWN, Pa., Feb. 6 /PRNewswire-FirstCall/ --
AmeriServ Financial, Inc. (Nasdaq: ASRV) today announced the sale of servicing
rights on approximately $450 million of mortgage loans being serviced through
its Standard Mortgage Corporation of Georgia subsidiary. This significant
downsizing of the mortgage servicing asset at Standard Mortgage Corporation of
Georgia will contribute to a more conservatively positioned balance sheet at
AmeriServ Financial by substantially reducing the level of interest rate risk
and earnings volatility -- both integral components of the plan to strengthen
AmeriServ Financial.
(Photo: http://www.newscom.com/cgi-bin/prnh/20020717/ASRVLOGO )
The servicing rights on approximately $450 million in mortgage loan values
that are part of the deal represents 69% of Standard Mortgage Corporation of
Georgia's total servicing portfolio of $650 million.
"We have been clear in our intent to return to a strategic focus more
suited to a community bank. This sale of mortgage servicing rights provides
reduced exposure to interest rate risk and will accelerate AmeriServ
Financial's recovery momentum," said interim Chairman, President and CEO
Craig G. Ford.
In 2002, AmeriServ Financial realized a mortgage servicing impairment
charge of $3.7 million. Proceeds from the sale will be used to pay down
existing company debt. The pricing of these servicing rights was reflected in
the AmeriServ Financial December 31, 2002 financial statements.
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.
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:
Dan L. Hummel, Senior Vice President of
AmeriServ Financial, +1-814-533-5139
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