JOHNSTOWN, Pa., April 15 /PRNewswire-FirstCall/ -- AmeriServ Financial,
Inc. (Nasdaq: ASRV) reported first quarter 2008 net income of $1,229,000 or
$0.06 per diluted share. This represents an increase of $801,000 over the
first quarter 2007 net income of $428,000 or $0.02 per diluted share. The
following table highlights the Company's financial performance for the
quarters ended March 31, 2008 and 2007:
First First
Quarter Quarter $ Change % Change
2008 2007
Net income $1,229,000 $428,000 $801,000 187%
Diluted earnings per share $0.06 $0.02 $0.04 200%
Allan R. Dennison, President and Chief Executive Officer, commented on
the first quarter 2008 financial results, "Our conservative balance sheet
positioning has allowed AmeriServ Financial to report improved financial
performance during a period of turmoil within the banking industry and
financial markets. Our growth in earnings was driven by increased net
interest income, higher non-interest revenue and continued good asset
quality. Specifically in regards to asset quality, our total level of
non-performing assets amounted to $3.1 million or only 0.48% of total loans
while our allowance for loan losses provided solid 240% coverage of
non-performing assets at March 31, 2008."
The Company's net interest income in the first quarter of 2008
increased by $780,000 or 13.1% from the prior year's first quarter and the
net interest margin was up by 35 basis points over the same comparative
period. The Company's balance sheet positioning allowed it to benefit from
the significant Federal Reserve reductions in short-term interest rates and
the return to a more traditionally shaped positively sloped yield curve.
This factor, combined with the benefits of solid loan growth experienced
over the past 12 months, caused the increased net interest income and
margin in the first quarter of 2008. Total loans averaged $631 million in
the first quarter of 2008, an increase of $38 million or 6.3% over the
first quarter of 2007. The loan growth was most evident in the commercial
loan portfolio and contributed to the increased interest income. The
favorable decline in interest expense was caused by the downward repricing
of both deposits and Federal Home Loan Bank borrowings due to the market
decline in short-term interest rates. Overall, net interest income has now
increased for five consecutive quarters and the Company believes its
balance sheet is well positioned for continuation of a lower interest rate
environment in 2008.
The Company recorded a $150,000 provision for loan losses in the first
quarter of 2008 compared to no loan loss provision in the first quarter of
2007. When determining the provision for loan losses, the Company considers
a number of factors some of which include periodic credit reviews,
delinquency trends, concentrations of credit, loan volume trends and
broader local and national economic trends. The Company's net charge-offs
in the first quarter of 2008 amounted to $93,000 or 0.06% of total loans.
This amount was comparable with the net charge-offs of $82,000 or 0.06% of
total loans experienced in the first quarter of 2007. Non-performing assets
favorably declined by $2.2 million from December 31, 2007 due to the
successful workout during the first quarter of 2008 of the Company's
largest non-performing loan with no loss to the bank. Non-performing assets
totaled $3.1 million or 0.48% of total loans at March 31, 2008 compared to
$5.3 million or 0.83% of total loans at December 31, 2007. Overall, the
allowance for loan losses provided 240% coverage of non-performing assets
and was 1.15% of total loans at March 31, 2008. Note also that the Company
has no exposure to sub-prime mortgage loans in either the loan or
investment portfolios.
The Company's non-interest income in the first quarter of 2008
increased by $605,000 or 18.7% from the first quarter of 2007 and was
driven by increases in almost all reported non-interest revenue categories.
Trust fees increased by $86,000 or 5.0% due to continued successful new
business development efforts. The fair market value of trust assets totaled
$1.8 billion at March 31, 2008. Deposit service charges increased by
$149,000 due to increased overdraft fees and greater service charge revenue
that resulted from a realignment of the bank's checking accounts to include
more fee based products. Investment advisory fees increased by $124,000 as
West Chester Capital Advisors was included in the Company's results for the
entire quarter in 2008 compared to only one month in the 2007 first
quarter. The Company also recorded an increase on gains realized on
residential mortgage loan sales into the secondary market that amounted to
$64,000 for the first quarter of 2008. This increase reflects improved
residential mortgage production from the Company's primary market as this
has been an area of emphasis in the Company's strategic plan. Finally,
other income increased by $191,000 due entirely to a gain realized on the
mandatory redemption of shares of VISA stock that occurred as a result of
VISA's initial public offering.
Total non-interest expense in the first quarter of 2008 increased by
$106,000 or 1.2% from the prior year's first quarter. The inclusion of West
Chester Capital Advisors for the entire quarter in 2008 compared to only a
partial quarter in 2007 caused non-interest expense to increase by
$164,000. Otherwise, expense decreases were recorded in several line items
including salaries and employee benefits and equipment expense as a result
of the Company's continuing focus on containing and reducing non-interest
expenses. Total full-time equivalent employees at March 31, 2008 were down
by 25 employees or 6.7% from the first quarter of 2007.
ASRV had total assets of $918 million and shareholders' equity of $91.6
million or a book value of $4.19 per share at March 31, 2008. The Company's
asset leverage ratio remained strong at 9.78%. During the first quarter of
2008, the Company repurchased 354,500 shares of its common stock at an
average price of $3.11 in conjunction with the terms of the Company's stock
buyback program that was announced on January 22, 2008.
This news release may contain forward-looking statements that involve
risks and uncertainties, as defined in the Private Securities Litigation
Reform Act of 1995, including the risks detailed in the Company's Annual
Report and Form 10-K to the Securities and Exchange Commission. Actual
results may differ materially.
NASDAQ: ASRV
SUPPLEMENTAL FINANCIAL PERFORMANCE DATA
April 15, 2008
(In thousands, except per share and ratio data)
(All quarterly and 2008 data unaudited)
2008
1QTR
PERFORMANCE DATA FOR THE PERIOD:
Net income $1,229
PERFORMANCE PERCENTAGES
(annualized):
Return on average assets 0.55%
Return on average equity 5.43
Net interest margin 3.32
Net charge-offs as a percentage of
average loans 0.06
Loan loss provision as a
percentage of average loans 0.10
Efficiency ratio 82.87
PER COMMON SHARE:
Net income:
Basic $0.06
Average number of common shares
outstanding 22,060
Diluted 0.06
Average number of common shares
outstanding 22,062
2007
1QTR 2QTR 3QTR 4QTR YEAR
TO DATE
PERFORMANCE DATA FOR THE PERIOD:
Net income $428 $808 $874 $924 $3,034
PERFORMANCE PERCENTAGES (annualized):
Return on average assets 0.20% 0.37% 0.39% 0.41% 0.34%
Return on average equity 2.05 3.79 4.00 4.12 3.51
Net interest margin 2.97 3.01 3.00 3.08 3.06
Net charge-offs as a percentage of
average loans 0.06 0.07 0.61 0.01 0.19
Loan loss provision as a
percentage of average loans - - 0.10 0.09 0.05
Efficiency ratio 94.16 88.52 87.15 86.04 88.85
PER COMMON SHARE:
Net income:
Basic $0.02 $0.04 $0.04 $0.04 $0.14
Average number of common shares
outstanding 22,159 22,164 22,175 22,184 22,171
Diluted 0.02 0.04 0.04 0.04 0.14
Average number of common shares
outstanding 22,166 22,171 22,177 22,186 22,173
AMERISERV FINANCIAL, INC.
(In thousands, except per share, statistical, and ratio data)
(All quarterly and 2008 data unaudited)
2008
1QTR
PERFORMANCE DATA AT PERIOD
END:
Assets $918,017
Investment securities 151,967
Loans 632,934
Allowance for loan losses 7,309
Goodwill and core deposit
intangibles 14,254
Deposits 698,127
FHLB borrowings 106,579
Stockholders' equity 91,558
Non-performing assets 3,050
Asset leverage ratio 9.78%
PER COMMON SHARE:
Book value (A) $4.19
Market value 2.79
Market price to book value 66.62%
Trust assets - fair market
value (B) 1,838,029
STATISTICAL DATA AT PERIOD
END:
Full-time equivalent
employees 350
Branch locations 19
Common shares outstanding 21,842,691
2007
1QTR 2QTR 3QTR 4QTR
PERFORMANCE DATA AT PERIOD
END:
Assets $891,559 $876,160 $897,940 $904,878
Investment securities 185,338 174,508 170,765 163,474
Loans 603,834 604,639 629,564 636,155
Allowance for loan losses 8,010 7,911 7,119 7,252
Goodwill and core deposit
intangibles 15,119 14,903 14,687 14,470
Deposits 768,947 762,902 763,771 710,439
FHLB borrowings 15,170 4,258 23,482 82,115
Stockholders' equity 85,693 86,226 88,517 90,294
Non-performing assets 2,706 2,825 2,463 5,280
Asset leverage ratio 10.23% 10.36% 10.44% 9.74%
PER COMMON SHARE:
Book value $3.87 $3.89 $3.99 $4.07
Market value 4.79 4.40 3.33 2.77
Market price to book value 123.88% 113.12% 83.44% 68.07%
Trust assets - fair market
value (B) 1,828,475 1,872,366 1,846,240 1,883,307
STATISTICAL DATA AT PERIOD
END:
Full-time equivalent
employees 375 376 358 351
Branch locations 21 21 20 19
Common shares outstanding 22,161,445 22,167,235 22,180,650 22,188,997
Note:
(A) Other comprehensive income had a negative impact of $0.18 on book
value per share at December 31, 2007.
(B) Not recognized on the balance sheet
AMERISERV FINANCIAL, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands)
(All quarterly and 2008 data unaudited)
2008
1QTR
INTEREST INCOME
Interest and fees on loans $10,462
Total investment portfolio 1,820
Total Interest Income 12,282
INTEREST EXPENSE
Deposits 4,499
All borrowings 1,048
Total Interest Expense 5,547
NET INTEREST INCOME 6,735
Provision for loan losses 150
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 6,585
NON-INTEREST INCOME
Trust fees 1,790
Net realized gains on loans
held for sale 89
Service charges on deposit
accounts 734
Investment advisory fees 226
Bank owned life insurance 249
Other income 750
Total Non-Interest Income 3,838
NON-INTEREST EXPENSE
Salaries and employee benefits 4,830
Net occupancy expense 661
Equipment expense 431
Professional fees 769
FDIC deposit insurance expense 22
Amortization of core deposit
intangibles 216
Other expenses 1,850
Total Non-Interest Expense 8,779
PRETAX INCOME 1,644
Income tax expense 415
NET INCOME $1,229
2007
1QTR 2QTR 3QTR 4QTR YEAR
TO DATE
INTEREST INCOME
Interest and fees on loans $10,061 $10,303 $10,591 $10,608 $41,563
Total investment portfolio 2,114 2,005 1,863 1,834 7,816
Total Interest Income 12,175 12,308 12,454 12,442 49,379
INTEREST EXPENSE
Deposits 5,699 5,931 5,994 5,187 22,811
All borrowings 521 364 438 1,022 2,345
Total Interest Expense 6,220 6,295 6,432 6,209 25,156
NET INTEREST INCOME 5,955 6,013 6,022 6,233 24,223
Provision for loan losses - - 150 150 300
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 5,955 6,013 5,872 6,083 23,923
NON-INTEREST INCOME
Trust fees 1,704 1,689 1,677 1,683 6,753
Net realized gains on loans
held for sale 25 79 116 87 307
Service charges on deposit
accounts 585 636 671 687 2,579
Investment advisory fees 102 329 275 268 974
Bank owned life insurance 258 265 479 266 1,268
Other income 559 594 804 869 2,826
Total Non-Interest Income 3,233 3,592 4,022 3,860 14,707
NON-INTEREST EXPENSE
Salaries and employee
benefits 4,885 4,930 4,813 4,711 19,339
Net occupancy expense 664 615 618 597 2,494
Equipment expense 546 564 466 469 2,045
Professional fees 695 818 814 870 3,197
FDIC deposit insurance
expense 22 22 22 22 88
Amortization of core deposit
intangibles 216 216 216 217 865
Other expenses 1,645 1,357 1,824 1,818 6,644
Total Non-Interest Expense 8,673 8,522 8,773 8,704 34,672
PRETAX INCOME 515 1,083 1,121 1,239 3,958
Income tax expense (benefit) 87 275 247 315 924
NET INCOME $428 $808 $874 $924 $3,034
AMERISERV FINANCIAL, INC.
AVERAGE BALANCE SHEET DATA
(In thousands)
(All quarterly and 2008 data unaudited)
Note: 2007 data appears before 2008.
2007 2008
1QTR 1QTR
Interest earning assets:
Loans and loans held for sale, net of
unearned income $592,956 $630,581
Deposits with banks 661 498
Federal funds 423 424
Total investment securities 202,059 173,311
Total interest earning assets 796,099 804,814
Non-interest earning assets:
Cash and due from banks 17,082 17,935
Premises and equipment 8,735 8,886
Other assets 66,127 72,963
Allowance for loan losses (8,062) (7,309)
Total assets 879,981 897,289
Interest bearing liabilities:
Interest bearing deposits:
Interest bearing demand 58,027 64,310
Savings 74,191 68,666
Money market 188,891 104,180
Other time 334,093 347,134
Total interest bearing deposits 655,202 584,290
Borrowings:
Federal funds purchased, securities
sold under agreements to repurchase, and
other short-term borrowings 16,196 76,997
Advanced from Federal Home Loan Bank 1,392 11,718
Guaranteed junior subordinated
deferrable interest debentures 13,085 13,085
Total interest bearing liabilities 685,875 686,090
Non-interest bearing liabilities:
Demand deposits 101,900 110,645
Other liabilities 7,703 9,526
Stockholders' equity 84,503 91,028
Total liabilities and stockholders' equity $879,981 $897,289
SOURCE AmeriServ Financial, Inc.
 back to top
Related links:
http://www.ameriservfinancial.com/
CONTACT:
Jeffrey A. Stopko, Senior Vice President &
Chief Financial Officer of AmeriServ Financial, Inc.,
+1-814-533-5310
|
