JOHNSTOWN, Pa., April 20 /PRNewswire-FirstCall/ -- AmeriServ Financial,
Inc. (Nasdaq: ASRV) reported net income of $428,000 or $0.02 per diluted
share for the first quarter of 2007. This compares to net income of
$540,000 or $0.02 per diluted share for the first quarter of 2006. After
careful analysis, the Company has decided to not early adopt Statement of
Financial Accounting Standards No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities." The following table highlights
the Company's financial performance for the quarters ended March 31, 2007
and 2006:
First Quarter First Quarter
2007 2006
Net income $428,000 $540,000
Diluted earnings per share 0.02 0.02
Allan R. Dennison, President and Chief Executive Officer, commented on
the first quarter 2007 results, "The decline in net income in the first
quarter of 2007 was due to reduced net interest income as this more than
offset the benefits of continued strong asset quality and lower
non-interest expenses. The net interest margin pressure from the inverted
yield curve overshadowed solid loan and deposit growth within our community
bank. Average loans in the first quarter of 2007 grew by 8.0% while average
deposits increased by 5.3% when compared to the first quarter of 2006.
These positive loan and deposit growth trends did help cause a favorable
increase in net interest income and net interest margin when our first
quarter 2007 performance for these key items is compared to our more recent
fourth quarter 2006 results."
The Company's net interest income in the first quarter of 2007
decreased by $337,000 from the prior year's first quarter due to a 23 basis
point drop in the net interest margin. The decline in both net interest
income and net interest margin resulted from the Company's cost of funds
increasing at a faster pace than the earning asset yield. This resulted
from deposit customer preference for higher yielding certificates of
deposit and money market accounts due to the inverted yield curve with
short-term interest rates exceeding intermediate to longer term rates. The
Company, however, did note that the first quarter 2007 net interest margin
of 2.97% was 4 basis points better than the more recent fourth quarter 2006
performance which helped reverse a trend of four consecutive quarters of
net interest income and margin contraction. The Company did have increased
loans in the earning asset mix as total loans outstanding averaged $593
million in the first quarter of 2007, a $44 million or 8.0% increase over
the first quarter of 2006. This loan growth was driven by increased
commercial and commercial real estate loans. Total deposits averaged $757
million in the first quarter of 2007; a $38 million or 5.3% increase over
2006. These higher deposits in 2007 were due to increased deposits from the
trust company's operations and increased certificates of deposit as
customers have demonstrated a preference for this product due to higher
short-term interest rates.
The Company did not record a provision for loan losses in either the
first quarter of 2007 or the first quarter of 2006 due to the Company's
continuing strong asset quality. Non-performing assets totaled $2.7 million
or 0.45% of total loans at March 31, 2007. This compares favorably to
non-performing assets of $4.2 million or 0.76% of total loans at March 31,
2006. Net charge- offs amounted to $82,000 or 0.06% of total loans in the
first quarter of 2007 which represented a decrease from the net charge-offs
of $117,000 or 0.09% of total loans in the prior year first quarter. The
allowance for loan losses provided 296% coverage of non-performing assets
at March 31, 2007 compared to 353% coverage at December 31, 2006, and 215%
coverage at March 31, 2006. The allowance for loan losses as a percentage
of total loans amounted to 1.33% at March 31, 2007. Note also that the
Company has no exposure to sub prime mortgage loans.
The Company's non-interest income in the first quarter of 2007 totaled
$3.2 million which was consistent with the prior year first quarter
performance. Trust fees increased by $63,000 or 3.8% due to continued
successful new business development efforts. Over the past year, the fair
market value of trust assets has grown by 9.5% to $1.8 billion at March 31,
2007. The Company also benefited from the successful closure of the West
Chester Capital Advisors acquisition in early March of 2007. This new
accretive acquisition provided $102,000 of fee revenue in the first quarter
of 2007 which is reflected in the other income line item. These positive
items were offset by reduced deposit service charges which declined by
$42,000 due to fewer overdraft penalty fees. Other income also declined due
to reduced revenues from AmeriServ Associates, a subsidiary that was closed
in the second quarter of 2006, because it no longer fit the Company's
strategic direction.
The Company's total non-interest expense in the first quarter of 2007
decreased by $185,000 or 2.1% when compared to the first quarter of 2006
reflecting the Company's continued focus on reducing and containing non-
interest expenses. Note that this decline occurred even after the inclusion
of $78,000 of non-interest expenses from the newly acquired West Chester
Capital Advisors. The largest expense reductions were experienced in
professional fees ($100,000), equipment expense ($93,000) and FDIC deposit
insurance expense ($51,000).
At March 31, 2007, ASRV had total assets of $892 million and
shareholders' equity of $86 million or $3.87 per share. The Company's asset
leverage ratio remained strong at 10.23% at March 31, 2007.
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 20, 2007
(In thousands, except per share and ratio data)
(All quarterly and 2007 data unaudited)
2007
1QTR
PERFORMANCE DATA FOR THE PERIOD:
Net income $ 428
PERFORMANCE PERCENTAGES
(annualized):
Return on average assets 0.20%
Return on average equity 2.05
Net interest margin 2.97
Net charge-offs as a percentage
of average loans 0.06
Loan loss provision as a
percentage of average loans --
Efficiency ratio 94.16
PER COMMON SHARE:
Net income:
Basic $ 0.02
Average number of common shares
outstanding 22,159
Diluted 0.02
Average number of common shares
outstanding 22,166
2006
1QTR 2QTR 3QTR 4QTR YEAR
TO DATE
PERFORMANCE DATA FOR THE PERIOD:
Net income $ 540 $ 568 $ 643 $ 581 $ 2,332
PERFORMANCE PERCENTAGES
(annualized):
Return on average assets 0.25% 0.26% 0.29% 0.26% 0.27%
Return on average equity 2.59 2.71 3.00 2.66 2.74
Net interest margin 3.20 3.16 3.06 2.93 3.12
Net charge-offs as a percentage
of average loans 0.09 0.07 0.39 0.09 0.16
Loan loss provision as a
percentage of average loans -- (0.04) -- (0.05) (0.02)
Efficiency ratio 92.68 92.08 91.38 94.34 92.60
PER COMMON SHARE:
Net income:
Basic $ 0.02 $ 0.03 $ 0.03 $ 0.03 $ 0.11
Average number of common
shares outstanding 22,119 22,143 22,148 22,154 22,141
Diluted 0.02 0.03 0.03 0.03 0.11
Average number of common
shares outstanding 22,127 22,153 22,156 22,161 22,149
AMERISERV FINANCIAL, INC.
(In thousands, except per share, statistical, and ratio data)
(All quarterly and 2007 data unaudited)
2007
1QTR
PERFORMANCE DATA AT PERIOD END:
Assets $ 891,559
Investment securities 185,338
Loans 603,834
Allowance for loan losses 8,010
Goodwill and core deposit intangibles 15,119
Deposits 768,947
FHLB borrowings 15,170
Stockholders' equity 85,693
Trust assets - fair market value (B) 1,828,475
Non-performing assets 2,706
Asset leverage ratio 10.23%
PER COMMON SHARE:
Book value (A) $ 3.87
Market value 4.79
Market price to book value 123.88%
STATISTICAL DATA AT PERIOD END:
Full-time equivalent employees 375
Branch locations 21
Common shares outstanding 22,161,445
2006
1QTR 2QTR 3QTR 4QTR
PERFORMANCE DATA AT PERIOD
END:
Assets $ 876,393 $ 887,608 $ 882,837 $ 895,992
Investment securities 223,658 210,230 209,046 204,344
Loans 548,466 573,884 580,560 589,435
Allowance for loan losses 9,026 8,874 8,302 8,092
Goodwill and core deposit
intangibles 12,031 11,815 11,599 11,382
Deposits 727,987 740,979 743,687 741,755
FHLB borrowings 45,223 43,031 31,949 50,037
Stockholders' equity 84,336 84,231 86,788 84,684
Trust assets - fair market
value (B) 1,669,525 1,679,634 1,702,210 1,778,652
Non-performing assets 4,193 4,625 2,978 2,292
Asset leverage ratio 10.36% 10.54% 10.52% 10.54%
PER COMMON SHARE:
Book value $ 3.81 $ 3.80 $ 3.92 $ 3.82
Market value 5.00 4.91 4.43 4.93
Market price to book value 131.26% 129.09% 113.07% 128.98%
STATISTICAL DATA AT PERIOD
END:
Full-time equivalent
employees 375 367 364 369
Branch locations 22 22 21 21
Common shares outstanding 22,140,172 22,145,639 22,150,767 22,156,094
Note:
(A) Other comprehensive income had a negative impact of $0.26 on book
value per share at March 31, 2007.
(B) Not recognized on the balance sheet
AMERISERV FINANCIAL, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands)
(All quarterly and 2007 data unaudited)
2007
1QTR
INTEREST INCOME
Interest and fees on loans $ 10,061
Total investment portfolio 2,114
Total Interest Income 12,175
INTEREST EXPENSE
Deposits 5,699
All borrowings 521
Total Interest Expense 6,220
NET INTEREST INCOME 5,955
Provision of loan losses --
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 5,955
NON-INTEREST INCOME
Trust fees 1,704
Net realized gains on loans held for
sale 25
Service charges on deposit accounts 585
Bank owned life insurance 258
Other income 661
Total Non-Interest Income 3,233
NON-INTEREST EXPENSE
Salaries and employee benefits 4,885
Net occupancy expense 664
Equipment expense 546
Professional fees 695
FDIC deposit insurance expense 22
Amortization of core deposit
intangibles 216
Other expenses 1,645
Total Non-Interest Expense 8,673
INCOME BEFORE INCOME TAXES 515
Provision for income taxes 87
NET INCOME $ 428
AMERISERV FINANCIAL, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands)
(All quarterly and 2007 data unaudited)
2006
1QTR 2QTR 3QTR 4QTR YEAR
TO DATE
INTEREST INCOME
Interest and fees on loans $ 8,900 $ 9,155 $ 9,677 $ 9,865 $ 37,597
Total investment portfolio 2,279 2,259 2,218 2,212 8,968
Total Interest Income 11,179 11,414 11,895 12,077 46,565
INTEREST EXPENSE
Deposits 4,026 4,563 5,143 5,500 19,232
All borrowings 861 660 653 681 2,855
Total Interest Expense 4,887 5,223 5,796 6,181 22,087
NET INTEREST INCOME 6,292 6,191 6,099 5,896 24,478
Provision of loan losses -- (50) -- (75) (125)
NET INTEREST INCOME AFTER
PROVISION
FOR LOAN LOSSES 6,292 6,241 6,099 5,971 24,603
NON-INTEREST INCOME
Trust fees 1,641 1,671 1,603 1,604 6,519
Net realized gains (losses) on
investment securities available
for sale -- -- -- -- --
Net realized gains on loans held
for sale 23 20 26 36 105
Service charges on deposit
accounts 627 651 645 638 2,561
Bank owned life insurance 256 260 428 263 1,207
Other income 695 666 545 543 2,449
Total Non-Interest Income 3,242 3,268 3,247 3,084 12,841
NON-INTEREST EXPENSE
Salaries and employee benefits 4,815 4,612 4,600 4,642 18,669
Net occupancy expense 655 591 573 591 2,410
Equipment expense 639 631 529 550 2,349
Professional fees 795 859 791 763 3,208
FDIC deposit insurance expense 73 74 22 23 192
Amortization of core deposit
intangibles 216 216 216 217 865
Other expenses 1,665 1,794 1,833 1,707 6,999
Total Non-Interest Expense 8,858 8,777 8,564 8,493 34,692
INCOME BEFORE INCOME TAXES 676 732 782 562 2,752
Provision (benefit) for income
taxes 136 164 139 (19) 420
NET INCOME $ 540 $ 568 $ 643 $ 581 $ 2,332
AMERISERV FINANCIAL, INC.
AVERAGE BALANCE SHEET DATA
(In thousands)
(All quarterly and 2007 data unaudited)
Note: 2006 data appears before 2007.
2006 2007
1QTR 1QTR
Interest earning assets:
Loans and loans held for sale, net
of unearned income $ 548,975 $ 592,956
Deposits with banks 564 661
Federal funds -- 423
Total investment securities 234,729 202,059
Total interest earning assets 784,268 796,099
Non-interest earning assets:
Cash and due from banks 19,230 17,082
Premises and equipment 8,617 8,735
Other assets 69,831 66,127
Allowance for loan losses (9,069) (8,062)
Total assets 872,877 879,981
Interest bearing liabilities:
Interest bearing deposits:
Interest bearing demand 55,804 58,027
Savings 86,721 74,191
Money market 175,733 188,891
Other time 295,951 334,093
Total interest bearing deposits 614,209 655,202
Borrowings:
Federal funds purchased, securities
sold under agreements to repurchase,
and other short-term borrowings 48,677 16,196
Advanced from Federal Home Loan Bank 983 1,392
Guaranteed junior subordinated
deferrable interest debentures 13,085 13,085
Total interest bearing liabilities 676,954 685,875
Non-interest bearing liabilities:
Demand deposits 105,004 101,900
Other liabilities 6,537 7,703
Stockholders' equity 84,382 84,503
Total liabilities and stockholders'
equity $ 872,877 $ 879,981
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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