JOHNSTOWN, Pa., April 19 /PRNewswire-FirstCall/ -- AmeriServ Financial,
Inc. (Nasdaq: ASRV) returned to profitability after its fourth quarter 2004
loss by reporting net income for the first quarter of 2005 of $833,000 or
$0.04 per diluted share. This represents significant improvement from the net
income of $226,000 or $0.02 per diluted share reported in the first quarter of
2004. The following table highlights the Company's financial performance for
the quarters ended March 31, 2005 and 2004:
First Quarter First Quarter Dollar %
2005 2004 Change Change
Net income $833,000 $226,000 $607,000 268.6%
Diluted earnings
per share $0.04 $0.02 $0.02 100.0%
At March 31, 2005, ASRV had total assets of $1.0 billion and shareholders'
equity of $84 million or $4.24 per share. The Company's asset leverage ratio
improved to 9.77% at March 31, 2005, compared to 7.75% at March 31, 2004.
Allan R. Dennison, President and Chief Executive Officer, commented on the
first quarter 2005 results, "The Company's increased earnings in the first
quarter of 2005, excluding a one-time tax benefit, reflect the benefits of the
balance sheet repositioning strategies executed in the fourth quarter of 2004
and our disciplined focus on improving our traditional community banking and
trust performance. This progress was evidenced by a 36 basis point increase
in our net interest margin, reduced non-interest expenses, and improved asset
quality as the Company's net charge-offs were only five basis points in the
first quarter of 2005. AmeriServ has begun 2005 with a smaller, but stronger,
balance sheet and improved capital levels."
The Company's net interest income in the first quarter of 2005 increased
by $83,000 from the prior year first quarter as the benefits from an increased
net interest margin more than offset a reduced level of earning assets.
Specifically, the net interest margin increased by 36 basis points to 2.75%
while the level of average earning assets declined by $126 million. Both of
these items reflect the deleverage of high cost debt from the Company's
balance sheet which has resulted in lower levels of both borrowed funds and
investment securities. The Company's net interest margin also benefited from
increased loans in the earning asset mix as total loans outstanding averaged
$519 million in the first quarter of 2005, a $24 million or 4.8% increase from
the prior year first quarter. This loan growth was most evident in the
commercial loan portfolio as a result of successful new business development
efforts.
As a result of improved asset quality, the Company did not provide a
provision for loan losses in the first quarter of 2005. This represented a
decrease of $384,000 from the provision provided in the first quarter of 2004.
Net charge-offs in the first quarter of 2005 amounted to only $60,000 or 0.05%
of total loans; a meaningful decline from the net charge-offs of $597,000 or
0.48% of total loans recorded in the first quarter of 2004. Lower levels of
non-performing assets and classified loans also evidence the improved asset
quality. Non-performing assets declined from $13.5 million or 2.68% of total
loans at March 31, 2004 to $3.8 million or 0.72% of total loans at March 31,
2005. The March 31, 2005 level is down slightly from the December 31, 2004
level indicating a second consecutive quarter of peer comparable non-
performing asset levels. The allowance for loan losses provided 258% coverage
of non-performing assets at March 31, 2005 compared to 254% coverage at
December 31, 2004, and 82% coverage at March 31, 2004. The allowance for loan
losses as a percentage of total loans amounted to 1.87% at March 31, 2005.
The Company's total non-interest income decreased by $791,000 when the
first quarter of 2005 is compared to the first quarter of 2004. The largest
factor responsible for this decline was an $859,000 decrease in gains realized
on investment security sales due to the higher interest rate environment in
place in 2005. Deposit service charges also dropped by $146,000 due primarily
to fewer overdraft fees. These items overshadowed a $205,000 or 16.2%
increase in trust fees due to continued successful union-related new business
development efforts and a full quarter benefit of new customer fee schedules
that were implemented in the fourth quarter of 2004.
The Company's total non-interest expense in the first quarter of 2005
decreased by $241,000 when compared to the first quarter of 2004 reflecting
the Company's continued focus on reducing and containing non-interest
expenses. Expense reductions were experienced in numerous categories
including occupancy expense, equipment expense, amortization of core deposit
intangibles, and other expenses. Also, the loss from discontinued operations
declined from $231,000 in the first quarter of 2004 to $65,000 in the first
quarter of 2005 as the Company is completing the wind down of its mortgage
servicing operation.
The Company's first quarter 2005 net income performance was favorably
impacted by an income tax benefit. Specifically in the first quarter of 2005,
the Company lowered its income tax expense by $475,000 due to a reduction in
reserves for prior year tax contingencies as a result of the successful
conclusion of an IRS examination on several open tax years. The Company does
not expect to record any further income tax benefits of this nature during the
remainder of 2005.
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, 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 NMS: ASRV
SUPPLEMENTAL FINANCIAL PERFORMANCE DATA
April 19, 2005
(In thousands, except per share and ratio data)
(All quarterly and 2005 data unaudited)
2005
1QTR
PERFORMANCE DATA FOR THE PERIOD:
Net income $833
PERFORMANCE PERCENTAGES (annualized):
Return on average equity 3.95%
Net interest margin 2.75
Net charge-offs as a percentage of
average loans 0.05
Loan loss provision as a percentage
of average loans -
Efficiency ratio 94.42
PER COMMON SHARE:
Net income:
Basic $0.04
Average number of common shares
outstanding 19,720,827
Diluted 0.04
Average number of common shares
outstanding 19,760,049
2004
1QTR 2QTR 3QTR 4QTR YEAR
TO DATE
PERFORMANCE DATA FOR
THE PERIOD:
Net income (loss) $226 $254 $742 $(10,941) $(9,719)
PERFORMANCE PERCENTAGES
(annualized):
Return on average
equity 1.21% 1.41% 4.21% (54.13)% (13.04)%
Net interest margin 2.39 2.25 2.15 2.35 2.28
Net charge-offs as
a percentage of
average loans 0.48 0.48 0.92 0.84 0.68
Loan loss provision
as a percentage of
average loans 0.31 0.21 - 0.87 0.35
Efficiency ratio 93.83 94.80 96.89 295.04 138.03
PER COMMON SHARE:
Net income (loss):
Basic $0.02 $0.02 $0.05 $(0.64) $(0.66)
Average number of
common shares
outstanding 13,962,010 13,969,211 13,975,838 17,208,353 14,783,297
Diluted 0.02 0.02 0.05 (0.63) (0.66)
Average number of
common shares
outstanding 14,025,836 14,023,577 14,009,952 17,234,647 14,827,931
AMERISERV FINANCIAL, INC.
(In thousands, except per share, statistical, and ratio data)
(All quarterly and 2005 data unaudited)
2005
1QTR
PERFORMANCE DATA AT PERIOD END
Assets $996,450
Investment securities 381,124
Loans 527,344
Allowance for loan losses 9,856
Goodwill and core deposit intangibles 12,896
Mortgage servicing rights -
Deposits 725,369
Stockholders' equity 83,720
Trust assets - fair market value (B) 1,465,028
Non-performing assets 3,819
Asset leverage ratio 9.77%
PER COMMON SHARE:
Book value (A) $4.24
Market value 5.61
Market price to book value 132.35%
STATISTICAL DATA AT PERIOD END:
Full-time equivalent employees 394
Branch locations 22
Common shares outstanding 19,722,884
2004
1QTR 2QTR 3QTR 4QTR
PERFORMANCE DATA AT PERIOD END
Assets $1,099,564 $1,178,406 $1,088,849 $1,009,976
Investment securities 504,980 581,553 488,617 401,019
Loans 503,404 500,522 506,551 521,416
Allowance for loan losses 11,379 10,932 9,827 9,893
Goodwill and core deposit
intangibles 13,905 13,547 13,329 13,112
Mortgage servicing rights 1,493 1,642 1,395 -
Deposits 656,348 670,941 659,176 644,391
Stockholders' equity 77,721 67,213 73,471 85,219
Trust assets - fair market
value (B) 1,256,064 1,246,458 1,228,126 1,309,362
Non-performing assets 13,482 10,155 5,047 3,894
Asset leverage ratio 7.75% 7.71% 7.85% 9.20%
PER COMMON SHARE:
Book value $5.57 $4.81 $5.26 $4.32
Market value 6.10 5.55 5.00 5.17
Market price to book value 109.52% 115.50% 95.13% 119.62%
STATISTICAL DATA AT PERIOD END:
Full-time equivalent
employees 415 412 409 406
Branch locations 23 23 23 23
Common shares outstanding 13,965,737 13,972,424 13,978,726 19,717,841
Note:
(A) Other comprehensive income had a negative impact of $0.29 on book
value per share at March 31, 2005.
(B) Not recognized on the balance sheet
AMERISERV FINANCIAL, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands)
(All quarterly and 2005 data unaudited)
2005
1QTR
INTEREST INCOME
Interest and fees on loans $7,954
Total investment portfolio 3,737
Total Interest Income 11,691
INTEREST EXPENSE
Deposits 2,845
All other funding sources 2,551
Total Interest Expense 5,396
NET INTEREST INCOME 6,295
Provision of loan losses -
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 6,295
NON-INTEREST INCOME
Trust fees 1,472
Net realized gains (loss) on
investment securities available for
sale 78
Net realized gains on loans held for
sale 72
Service charges on deposit accounts 584
Bank owned life insurance 250
Other income 692
Total Non-Interest Income 3,148
NON-INTEREST EXPENSE
Salaries and employee benefits 4,751
Net occupancy expense 668
Equipment expense 639
Professional fees 823
FDIC deposit insurance expense 71
Amortization of core deposit
intangibles 216
Other expenses 1,775
Total Non-Interest Expense 8,943
INCOME (LOSS) BEFORE INCOME TAXES 500
Provision (benefit) for income taxes (398)
Income (Loss) from continuing
operations $898
Income (Loss) from discontinued
operations (65)
NET INCOME (LOSS) $833
AMERISERV FINANCIAL, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands)
(All quarterly and 2005 data unaudited)
2004
1QTR 2QTR 3QTR 4QTR YEAR
TO DATE
INTEREST INCOME
Interest and fees on loans $7,691 $7,679 $7,346 $7,581 $30,297
Total investment portfolio 5,228 4,943 5,352 4,284 19,807
Total Interest Income 12,919 12,622 12,698 11,865 50,104
INTEREST EXPENSE
Deposits 2,543 2,529 2,628 2,636 10,336
All other funding sources 4,164 4,180 4,418 3,540 16,302
Total Interest Expense 6,707 6,709 7,046 6,176 26,638
NET INTEREST INCOME 6,212 5,913 5,652 5,689 23,466
Provision of loan losses 384 259 - 1,115 1,758
NET INTEREST INCOME AFTER
PROVISION
FOR LOAN LOSSES 5,828 5,654 5,652 4,574 21,708
NON-INTEREST INCOME
Trust fees 1,267 1,347 1,377 1,372 5,363
Net realized gains on
investment securities
available for sale 937 111 228 (460) 816
Net realized gains on loans
held for sale 40 115 108 88 351
Service charges on deposit
accounts 730 716 692 668 2,806
Bank owned life insurance 275 276 279 278 1,108
Other income 690 796 1,385 697 3,568
Total Non-Interest Income 3,939 3,361 4,069 2,643 14,012
NON-INTEREST EXPENSE
Salaries and employee benefits 4,710 4,605 4,706 4,992 19,013
Net occupancy expense 712 653 620 651 2,636
Equipment expense 648 630 611 689 2,578
Professional fees 796 827 1,091 983 3,697
FDIC deposit insurance expense 72 71 72 72 287
Amortization of core deposit
intangibles 358 358 218 216 1,150
FHLB prepayment penalties - - - 12,637 12,637
Other expenses 1,888 1,693 1,726 2,786 8,093
Total Non-Interest Expense 9,184 8,837 9,044 23,026 50,091
INCOME BEFORE INCOME TAXES 583 178 677 (15,809) (14,371)
Provision (benefit) for income
taxes 126 (55) (324) (5,592) (5,845)
Income from continuing
operations $457 $233 $1,001 $(10,217) $(8,526)
Loss from discontinued
operations (231) 21 (259) (724) (1,193)
NET INCOME (LOSS) $226 $254 $742 $(10,941) $(9,719)
AMERISERV FINANCIAL, INC.
AVERAGE BALANCE SHEET DATA
(In thousands)
(All quarterly and 2005 data unaudited)
Note: 2004 data appears before 2005.
2004 2005
1QTR 1QTR
Interest earning assets:
Loans and loans held for sale, net of
unearned income $495,728 $519,386
Deposits with banks 4,574 1,320
Federal funds sold 226 -
Total investment securities 541,761 395,894
Total interest earning assets 1,042,289 916,600
Non-interest earning assets:
Cash and due from banks 22,113 22,142
Premises and equipment 10,983 9,682
Assets of discontinued operations 3,194 1,832
Other assets 63,261 63,173
Allowance for loan losses (11,457) (9,867)
Total assets 1,130,383 1,003,562
Interest bearing liabilities:
Interest bearing deposits:
Interest bearing demand 51,838 53,757
Savings 105,228 99,608
Money market 120,430 144,895
Other time 274,241 277,080
Total interest bearing deposits 551,737 575,340
Borrowings:
Federal funds purchased, securities
sold under agreements to repurchase,
and other short-term borrowings 128,403 109,121
Advanced from Federal Home Loan Bank 226,812 101,022
Guaranteed junior subordinated
deferrable interest debentures 35,567 20,285
Total interest bearing liabilities 942,519 805,768
Non-interest bearing liabilities:
Demand deposits 106,344 104,842
Liabilities of discontinued
operations 254 636
Other liabilities 6,125 6,700
Stockholders' equity 75,141 85,616
Total liabilities and stockholders'
equity $1,130,383 $1,003,562
SOURCE AmeriServ Financial, Inc.
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Related links:
http://www.ameriservfinancial.com
CONTACT:
Jeffrey A. Stopko, Senior Vice President &
Chief Financial Officer of AmeriServ Financial, Inc.,
+1-814-533-5310
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