SECURITIES AND EXCHANGE COMMISSION


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549


Form 8-K


Current Report

Pursuant to Section 13 or 15(d) of the Securities Act of 1934


Date of Report (Date of earliest event reported) January 22, 2019


AMERISERV FINANCIAL, Inc.

(exact name of registrant as specified in its charter)


Pennsylvania        0-11204        25-1424278

(State or other     (Commission    (IRS Employer

jurisdiction        File Number)   Identification No.)

of incorporation)


Main and Franklin Streets, Johnstown, Pa.  15901

(address of principal executive offices)   (Zip Code)


Registrant's telephone number, including area code: 814-533-5300


N/A

(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


( ) Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


( ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


( ) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


( ) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).

Emerging growth company ( )


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ( )












Form 8-K


Item 2.02 Results of operation and financial condition.


AMERISERV FINANCIAL, Inc. (the "Registrant") announced fourth quarter and full year 2018 results through December 31, 2018.  For a more detailed description of the announcement see the press release attached as Exhibit 99.1.

 


Item 9.01

Financial Statements and Exhibits.


(d)

Exhibits:


99.1

Press release dated January 22, 2019, announcing fourth quarter and full year 2018 earnings through December 31, 2018.



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



AMERISERV FINANCIAL, Inc.


By /s/Michael D. Lynch

Michael D. Lynch

SVP & CFO


Date: January 22, 2019





Exhibit 99.1


AMERISERV FINANCIAL REPORTS INCREASED EARNINGS FOR THE FOURTH QUARTER AND FULL YEAR OF 2018

JOHNSTOWN, PA - AmeriServ Financial, Inc. (NASDAQ: ASRV) reported fourth quarter 2018 net income of $1,928,000, or $0.11 per diluted common share.  This earnings performance represented an increase of $2.9 million, or 294%, from the fourth quarter of 2017 when the Company reported a net loss of $995,000, or ($0.05) per diluted common share.  For the year ended December 31, 2018, the Company reported net income of $7,768,000, or $0.43 per diluted common share.  This represents 139% growth in earnings per share from the full year of 2017 where net income totaled $3,293,000, or $0.18 per diluted common share.  The Company’s return on average equity improved to 8.08% for the 2018 year from 3.42% in 2017.  As previously disclosed, the Company’s fourth quarter 2017 performance was impacted by an income tax charge of $2.6 million related to corporate income tax reform which necessitated the revaluation of the Company’s deferred tax asset because of the new lower corporate tax rate.  This additional income tax expense negatively impacted diluted earnings per share by $0.14 for both the fourth quarter and full year of 2017.  The following table highlights the Company's financial performance for both the three and twelve month periods ended December 31, 2018 and 2017:


 

Fourth Quarter

2018

Fourth Quarter

2017

 

Year Ended  December 31, 2018

Year Ended  December 31, 2017

 

 

 

 

 

 

Net income (loss)

$1,928,000

($995,000)

 

$7,768,000

$3,293,000

Diluted earnings per share


$0.11


($0.05)

 


$0.43


$0.18


Jeffrey A. Stopko, President and Chief Executive Officer, commented on the 2018 financial results: "AmeriServ Financial achieved record earnings in 2018 while making strategic investments in our franchise that position us well in the rapidly changing financial services industry.  The fourth quarter 2018 opening of a new financial banking center in Hagerstown, Maryland allows us to build upon the success of our Hagerstown commercial loan production office and now offer a full slate of banking products and wealth management services in this demographically attractive and growing market.  We continued to improve our technology platform in 2018 with the introduction of new business and consumer internet banking packages.  Finally, we made meaningful progress in improving the earnings power of the company by reporting full year earnings per share of $0.43, increasing tangible book value per share by 6.3% during 2018 and returning almost 48% of net income to our shareholders through accretive common stock buybacks and an increased cash dividend."

The Company's net interest income in the fourth quarter of 2018 decreased by $225,000, or 2.5%, from the prior year's fourth quarter and for the full year of 2018 decreased by $67,000, or 0.2%, when compared to the full year of 2017.  The Company's net interest margin was 3.22% for the fourth quarter and 3.31% for the full year of 2018 representing a decrease of 9 basis points from the prior year's fourth quarter and a 1 basis point decline from the full year of 2017.  The decrease in net interest income in both time periods resulted from a reduced level of total earning assets as lower total loans more than offset an increased level of total investment securities.  Total average earning assets decreased modestly by $2.5 million, or 0.2%, in the fourth quarter and $1.4 million, or 0.1%, for the full year.  This combined with the upward repricing of interest bearing liabilities, as well as a higher level of average interest bearing liabilities in both time periods, resulted in net interest income decreasing.    


Total investment securities increased in both time periods.  Total investment securities averaged $193 million in the fourth quarter of 2018 which is $18.8 million, or 10.8%, higher than the $175 million average for the fourth quarter of 2017.  Investment securities also averaged $185 million for the full year which is $11.9 million, or 6.9%, higher than the full year 2017 average.   The growth in the investment securities portfolio is the result of management taking advantage of the higher interest rate environment in 2018 to purchase additional securities.  Purchases in 2018 primarily focused on federal agency mortgage backed securities due to the ongoing liquid cash flow that these securities provide.  Also, management continued its portfolio diversification strategy through purchases of high quality corporate and taxable municipal securities.  As a result, interest income on investments increased between the fourth quarter of 2018 and the fourth quarter of 2017 by $305,000, or 22.7%, and increased for the full year of 2018 from 2017 by $927,000, or 18.0%.  


In regards to the loan portfolio, total loans averaged $873 million in the fourth quarter of 2018 which is $19.9 million, or 2.2%, lower than the $893 million average for the fourth quarter of 2017.  Total loans averaged $882 million for the full year of 2018 which is $12.1 million, or 1.4%, lower than the 2017 full year average.  Overall, total loan originations were consistent with the prior year’s level.  However, loan payoffs exceeded what we experienced in 2017 and also exceeded loan originations in 2018, resulting in a net reduction to the loan portfolio.  Even though total average loans decreased since last year, loan interest income increased by $450,000, or 4.5%, between the fourth quarter of 2018 and the fourth quarter of 2017 and also increased by $1.8 million, or 4.6%, for the full year of 2018 when compared to 2017.  The higher loan interest income reflects new loans originating at higher yields as well as the upward repricing of certain loans tied to LIBOR or the prime rate as both of these indices have moved up with the Federal Reserve’s program to increase the target federal funds interest rate. Overall, total interest income increased by $2.7 million, or 6.2%, for the full year of 2018.


Total interest expense for the fourth quarter of 2018 increased by $980,000, or 41.4%, and increased by $2.8 million, or 31.9%, for the full year of 2018 when compared to 2017, due to higher levels of both deposit and borrowing interest expense.  Deposit interest expense in 2018 was higher by $828,000 for the fourth quarter and $2.2 million for the full year which reflects certain indexed money market accounts repricing upward after the Federal Reserve interest rate increases.  The higher national interest rate environment in 2018 has resulted in increasing market competitive pressure to retain existing deposit customers and attract new customer deposits.  Additionally, there has been customer movement of some funds out of lower yielding money market accounts into higher yielding certificates of deposits.  The runoff of money market deposits has more than offset the growth of term deposit products and resulted in a decrease in the balance of total deposits in 2018.  Specifically, total deposits averaged $960 million for the full year of 2018 which was $16.7 million, or 1.7%, lower than the $976 million average for the full year of 2017.  Overall, the Company's loan to deposit ratio averaged 90.4% in the fourth quarter of 2018 which we believe indicates that the Company has ample capacity to grow its loan portfolio.  The Company experienced a $617,000, or 24.3%, increase in the interest cost for borrowings in the full year of 2018 due to a higher average balance of total borrowed funds and the immediate impact that the increases in the federal funds rate had on the cost of overnight borrowed funds.  The 2018 total full year average of FHLB borrowed funds was $78.1 million and increased by $15.5 million, or 24.7%, due to the decrease in total average deposits.

The Company recorded a $700,000 negative provision for loan losses in the fourth quarter of 2018 as compared to a $50,000 provision recorded in the fourth quarter of 2017.  For the full year 2018, the Company recorded a negative loan loss provision of $600,000 compared to an $800,000 provision expense for the 2017 year.  The negative 2018 provision reflects our overall strong asset quality, reduced loan portfolio balance and the successful workout of several criticized loans which resulted in the release of reserves after two criticized loans that had balances totaling in excess of $11 million fully paid off during the third and fourth quarters of 2018.  For the full year, the Company experienced net loan charge-offs of $943,000, or 0.11% of total loans, in 2018 compared to net loan charge-offs of $518,000, or 0.06% of total loans, in 2017.  The higher 2018 net loan charge-offs reflect the final workout of several non-performing loans on which reserves had previously been established.  Overall, the Company continued to maintain outstanding asset quality as its nonperforming assets totaled $1.4 million, or only 0.16% of total loans, at December 31, 2018.  In summary, the allowance for loan losses provided 629% coverage of non-performing assets, and 1.00% of total loans, at December 31, 2018, compared to 337% coverage of non-performing assets, and 1.14% of total loans, at December 31, 2017.


Total non-interest income in the fourth quarter of 2018 decreased by $377,000, or 10.2%, from the prior year's fourth quarter, and for the full year decreased by $421,000, or 2.9%, when compared to 2017.  The most significant factor contributing to the negative variance in both time periods is a net unfavorable change in investment security sales activity by $291,000 in the fourth quarter of 2018 and by $554,000 for the full year.  There was no security sale activity in the fourth quarter of 2017 and a $115,000 net gain was recognized for the full year of 2017.  The net loss in both time periods of 2018 resulted from the Company selling certain low yielding securities and reinvesting in securities with higher current market coupon rates.  The result of these transactions positions the Company for an increased future return from the investment securities portfolio.  Also contributing to the unfavorable non-interest income variance in the fourth quarter 2018 was lower revenue from deposit service charges by $59,000 as well as reduced income from mortgage related fees and residential mortgage loan sales into the secondary market by a combined $93,000 as a result of reduced residential mortgage production and refinance activity during 2018.  The reduced revenue more than offset a greater level of other income by $58,000 due to increased letter of credit fees.  For full year of 2018, in addition to the unfavorable change in net security sales activity, revenue from bank owned life insurance (BOLI) was lower by $201,000 after the Company received a death claim in 2017 and there was no such claim this year.  Also, net gains from residential mortgage loan sales and mortgage related fees declined by a combined $279,000 and deposit services charges were $161,000 lower due to reduced overdraft fees.  Positive comparisons for the full year time period included a $489,000, or 5.3%, increase in wealth management fees as the Company benefitted from increased market values for assets under management during 2018.  Wealth management continues to be an important strategic focus of the Company as it is the largest component of non-interest revenue.  Non-interest revenue comprises over 29% of the Company’s total revenue.  Also, an increase in other income by $285,000 results from a $156,000 gain realized on the sale of certain equity securities that the Company owned from a previous acquisition as well as higher interchange income, revenue from business services and letter of credit fees.  


The Company's total non-interest expense in the fourth quarter of 2018 increased by $142,000, or 1.4%, when compared to the fourth quarter of 2017, and for the full year of 2018 increased by $170,000, or 0.4%.  The Company demonstrated good expense control during 2018 as indicated by the small percentage increase in both time periods in relation to last year.  The increase in both time periods resulted from higher salaries & employee benefits expense as well as increased other expenses, both of which more than offset lower occupancy & equipment costs and reduced FDIC deposit insurance expense.  For the fourth quarter of 2018, the increased salaries & employee benefits expense resulted primarily from 4 additional employees hired for our new Hagerstown, Maryland financial banking center.  While we do operate a loan production office in Hagerstown, the opening of this financial center is AmeriServ Financial, Inc.’s first move to establish a full service banking center outside of Pennsylvania.  This strategic investment better positions the Company for future growth in a more demographically attractive market.  For the full year of 2018, in combination with the additional hiring that took place during the fourth quarter, the higher level of salaries & employee benefits expense resulted from annual salary merit increases and additional incentives paid primarily within our Wealth Management operation due to the increased level of fee income mentioned previously.  The higher level of other expenses during the fourth quarter was due largely to additional costs related to the redesign of our improved Company website and $47,000 of additional expense for fraudulent debit card usage.  The reduction to occupancy and equipment expenses in both time periods was primarily attributable to the Company’s ongoing efforts to carefully manage and contain non-interest expense.  Specifically, a branch office closure in Cambria County along with a branch consolidation in the State College market resulted in reduced rent expense and other occupancy related costs.    


The Company recognized income tax expense for the 2018 year of $1.6 million, or a 17.2% effective tax rate, compared to income tax expense of $5.3 million, or a 61.9% effective tax rate, in 2017.  The lower effective tax rate and income tax expense in 2018 reflects the benefits of corporate tax reform as a result of the enactment of the “Tax Cuts and Jobs Act” late in the fourth quarter of 2017, which lowered the corporate income tax rate from 34% to 21%.  Also, because of the enactment of this new tax law, the Company was able to achieve a greater income tax benefit in the third quarter by making a one-time additional contribution to the defined benefit pension plan which was fully described in the third quarter 2018 earnings announcement.  This one-time additional income tax benefit is the reason that the 17.2% effective income tax rate for 2018 is lower than our more typical 20% effective income tax rate that was recognized in three out of the four quarters in 2018.  Finally, the higher income tax expense in 2017 also resulted from an additional income tax charge of $2.6 million recorded in the fourth quarter of 2017 as corporate income tax reform necessitated the revaluation of the Company’s deferred tax asset because of the new lower corporate tax rate.    


The Company had total assets of $1.16 billion, shareholders' equity of $98 million, a book value of $5.56 per common share and a tangible book value of $4.88 per common share at December 31, 2018.  In accordance with the common stock buyback program announced on July 17, 2018, the Company returned $1.9 million of capital to its shareholders through the repurchase of 427,689 shares of its common stock in the second half of 2018.  The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status.

 

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.























AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

SUPPLEMENTAL FINANCIAL PERFORMANCE DATA

December 31, 2018

(Dollars in thousands, except per share and ratio data)

(Unaudited)


2018

 

1QTR

2QTR

3QTR

4QTR

YEAR TO DATE

 

 

 

 

PERFORMANCE DATA FOR THE PERIOD:

 

 

 

 

 

 

 

 

 

Net income

  $1,767

  $1,744

  $2,329

  $1,928

  $7,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE PERCENTAGES (annualized):

 

 

 

 

 

 

 

 

 

Return on average assets

 0.62%

 0.60%

 0.79%

 0.66%

 0.67%

 

 

 

 

Return on average equity

     7.55

     7.30

     9.54

     7.89

     8.08

 

 

 

 

Net interest margin

     3.29

     3.28

     3.31

     3.22

     3.31

 

 

 

 

Net charge-offs as a percentage of average loans

     0.15

     0.21

     0.04

     0.03

     0.11

 

 

 

 

Loan loss provision (credit) as a percentage of

    average loans


    0.02


    0.02


    0.00


    (0.32)


    (0.07)

 

 

 

 

Efficiency ratio

  81.69

  82.19

  79.64

  85.84

  82.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

Basic

   $0.10

   $0.10

   $0.13

   $0.11

   $0.43

 

 

 

 

Average number of common shares outstanding

18,079

18,038

17,924

17,697

17,933

 

 

 

 

Diluted

    0.10

    0.10

    0.13

    0.11

    0.43

 

 

 

 

Average number of common shares outstanding

18,181

18,140

18,036

17,801

18,037

 

 

 

 

Cash dividends declared

$0.015

$0.020

$0.020

$0.020

$0.075

 

 

 

 


2017

 

1QTR

2QTR

3QTR

4QTR**

YEAR

 

 

 

 

 

TO DATE

PERFORMANCE DATA FOR THE PERIOD:

 

 

 

 

 

Net income (loss)

  $1,348

$1,389

$1,551

$(995)

$3,293

 

 

 

 

 

 

PERFORMANCE PERCENTAGES (annualized):

 

 

 

 

 

Return on average assets

 0.47%

0.48%

0.53%

 (0.34)%

0.28%

Return on average equity

     5.74

    5.81

    6.37

 (4.07)

    3.42

Net interest margin

     3.27

    3.27

    3.28

  3.31

    3.32

Net charge-offs as a percentage of average loans

     0.04

    0.01

    0.11

  0.08

    0.06

Loan loss provision as a percentage of

    average loans


    0.10


    0.14


    0.09


    0.02


    0.09

Efficiency ratio

  82.04

  81.47

  80.42

  80.63

  81.13

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

Net income (loss):

 

 

 

 

 

Basic

   $0.07

  $0.07

  $0.08

  $(0.05)

  $0.18

Average number of common shares outstanding

18,814

18,580

18,380

18,226

18,498

Diluted

    0.07

   0.07

   0.08

   (0.05)

    0.18

Average number of common shares outstanding

18,922

18,699

18,481

18,337

18,600

Cash dividends declared

$0.015

   $0.015

   $0.015

   $0.015

$0.060


** - The fourth quarter 2017 results were impacted by a $2.6 million increase of tax expense because of the new tax law that caused the revaluation of the Company’s deferred tax assets from 34% to 21%.











AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

(Dollars in thousands, except per share, statistical, and ratio data)

(Unaudited)


2018

 

1QTR

2QTR

3QTR

4QTR

FINANCIAL CONDITION  DATA AT PERIOD END

 

 

 

 

Assets

$1,151,160

$1,180,510

$1,168,806

$1,160,680

Short-term investments/overnight funds

7,796

8,050

7,428

6,924

Investment securities

171,053

174,771

177,426

187,491

Loans and loans held for sale

875,716

895,162

884,374

863,129

Allowance for loan losses

9,932

9,521

9,439

8,671

Goodwill

11,944

11,944

11,944

11,944

Deposits

944,206

928,176

944,213

949,171

FHLB borrowings

82,864

126,901

103,799

87,750

Subordinated debt, net

7,470

7,476

7,482

7,488

Shareholders’ equity

95,810

96,883

97,179

97,977

Non-performing assets

2,157

1,160

1,067

1,378

Tangible common equity ratio

7.36%

7.27%

7.37%

7.49%

Total capital (to risk weighted assets) ratio

13.45

13.01

13.13

13.53

PER COMMON SHARE:

 

 

 

 

Book value

$5.31

$5.37

$5.47

$5.56

Tangible book value

4.65

4.71

4.80

4.88

Market value

4.00

4.10

4.30

4.03

Wealth management assets – fair market value (A)


$2,175,538


$2,201,565


$2,258,108


$2,106,172

 

 

 

 

 

STATISTICAL DATA AT PERIOD END:

 

 

 

 

Full-time equivalent employees

304

295

296

303

Branch locations

15

15

15

16

Common shares outstanding

18,033,401

18,044,692

17,767,313

17,619,303


2017

 

1QTR

2QTR

3QTR

4QTR

FINANCIAL CONDITION  DATA AT PERIOD END

 

 

 

 

Assets

$1,172,127

$1,171,962

$1,170,916

$1,167,655

Short-term investments/overnight funds

8,320

8,389

8,408

7,954

Investment securities

165,781

168,367

168,443

167,890

Loans and loans held for sale

899,456

897,876

897,990

892,758

Allowance for loan losses

10,080

10,391

10,346

10,214

Goodwill

11,944

11,944

11,944

11,944

Deposits

964,776

956,375

966,921

947,945

FHLB borrowings

79,718

87,143

77,635

95,313

Subordinated debt, net

7,447

7,453

7,459

7,465

Shareholders’ equity

95,604

96,277

97,110

95,102

Non-performing assets

1,488

2,362

5,372

3,034

Tangible common equity ratio

7.21%

7.27%

7.35%

7.20%

Total capital (to risk weighted assets) ratio

13.03

13.13

13.08

13.21

PER COMMON SHARE:

 

 

 

 

Book value

$5.12

$5.21

$5.31

$5.25

Tangible book value

4.48

4.57

4.66

4.59

Market value

3.75

4.15

4.00

4.15

Wealth management assets – fair market value (A)


$2,025,304


$2,070,212


$2,119,371


$2,186,393

 

 

 

 

 

STATISTICAL DATA AT PERIOD END:

 

 

 

 

Full-time equivalent employees

307

308

307

302

Branch locations

16

16

16

15

Common shares outstanding

18,666,520

18,461,628

18,281,224

18,128,247


NOTES:

(A)

Not recognized on the consolidated balance sheets.








AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

CONSOLIDATED STATEMENT OF INCOME

(Dollars in thousands)

(Unaudited)


2018

 

1QTR

2QTR

3QTR

4QTR

YEAR TO DATE

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$9,818

$10,125

$10,607

$10,478

$41,028

 

 

 

 

Interest on investments

1,399

1,478

1,542

1,647

6,066

 

 

 

 

Total Interest Income

11,217

11,603

12,149

12,125

47,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

1,781

1,973

2,164

2,525

8,443

 

 

 

 

All borrowings

688

772

876

821

3,157

 

 

 

 

Total Interest Expense

2,469

2,745

3,040

3,346

11,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

8,748

8,858

9,109

8,779

35,494

 

 

 

 

Provision (credit) for loan losses

50

50

0

(700)

(600)

 

 

 

 

NET INTEREST INCOME AFTER

   PROVISION (CREDIT) FOR LOAN LOSSES


8,698


8,808


9,109


9,479


36,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

Wealth management fees

2,426

2,447

2,359

2,427

9,659

 

 

 

 

Service charges on deposit accounts

383

357

326

354

1,420

 

 

 

 

Net realized gains on loans held for sale

98

119

176

96

489

 

 

 

 

Mortgage related fees

39

72

54

31

196

 

 

 

 

Net realized gains (losses) on investment securities

(148)

0

0

(291)

(439)

 

 

 

 

Bank owned life insurance

132

133

135

136

536

 

 

 

 

Other income

705

553

536

569

2,363

 

 

 

 

Total Non-Interest Income

3,635

3,681

3,586

3,322

14,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

6,093

6,218

5,815

6,232

24,358

 

 

 

 

Net occupancy expense

670

611

585

596

2,462

 

 

 

 

Equipment expense

391

378

335

360

1,464

 

 

 

 

Professional fees

1,184

1,252

1,321

1,282

5,039

 

 

 

 

FDIC deposit insurance expense

162

155

140

100

557

 

 

 

 

Other expenses

1,620

1,696

1,918

1,822

7,056

 

 

 

 

Total Non-Interest Expense

10,120

10,310

10,114

10,392

40,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRETAX INCOME

2,213

2,179

2,581

2,409

9,382

 

 

 

 

Income tax expense

446

435

252

481

1,614

 

 

 

 

NET INCOME

  $1,767

$1,744

$2,329

$1,928

$7,768

 

 

 

 



























                                                                                                            2017

 

1QTR

2QTR

3QTR

4QTR

YEAR

INTEREST INCOME

 

 

 

 

TO DATE

Interest and fees on loans

$9,556

$9,778

$9,855

$10,028

$39,217

Interest on investments

1,192

1,273

1,332

1,342

5,139

Total Interest Income

10,748

11,051

11,187

11,370

44,356

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

Deposits

1,436

1,504

1,618

1,697

6,255

All borrowings

591

648

632

669

2,540

Total Interest Expense

2,027

2,152

2,250

2,366

8,795

 

 

 

 

 

 

NET INTEREST INCOME

8,721

8,899

8,937

9,004

35,561

Provision for loan losses

225

325

200

50

800

NET INTEREST INCOME AFTER

   PROVISION  FOR LOAN LOSSES


8,496


8,574


8,737


8,954


34,761

 

 

 

 

 

 

NON-INTEREST INCOME

 

 

 

 

 

Wealth management fees

2,310

2,240

2,208

2,412

9,170

Service charges on deposit accounts

374

385

409

413

1,581

Net realized gains on loans held for sale

114

186

217

162

679

Mortgage related fees

75

83

69

58

285

Net realized gains on investment securities

27

32

56

0

115

Bank owned life insurance

141

310

143

143

737

Other income

521

519

527

511

2,078

Total Non-Interest Income

3,562

3,755

3,629

3,699

14,645

 

 

 

 

 

 

NON-INTEREST EXPENSE

 

 

 

 

 

Salaries and employee benefits

5,948

5,917

5,943

6,112

23,920

Net occupancy expense

674

639

634

653

2,600

Equipment expense

419

434

343

389

1,585

Professional fees

1,200

1,415

1,213

1,230

5,058

FDIC deposit insurance expense

160

152

156

160

628

Other expenses

1,684

1,760

1,825

1,706

6,975

Total Non-Interest Expense

10,085

10,317

10,114

10,250

40,766

 

 

 

 

 

 

PRETAX INCOME

1,973

2,012

2,252

2,403

8,640

Income tax expense

625

623

701

3,398

5,347

NET INCOME (LOSS)

$1,348

$1,389

$1,551

$(995)

$3,293


































AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

Average Balance Sheet Data

(Dollars in thousands)

(Unaudited)


2018

2017

 

 

 

 

 

 

4QTR

TWELVE MONTHS

4QTR

TWELVE MONTHS

Interest earning assets:

 

 

 

 

Loans and loans held for sale, net of unearned income

$873,206

$881,767

$893,134

$893,849

Short-term investment in money market funds

6,488

6,725

7,839

7,996

Deposits with banks

1,020

1,023

1,025

1,028

Total investment securities

193,315

184,550

174,507

172,615

Total interest earning assets

1,074,029

1,074,065

1,076,505

1,075,488

 

 

 

 

 

Non-interest earning assets:

 

 

 

 

Cash and due from banks

24,476

23,067

22,931

22,393

Premises and equipment

12,667

12,480

12,806

12,273

Other assets

61,514

62,040

66,352

67,169

Allowance for loan losses

(9,540)

(9,866)

(10,430)

(10,241)

 

 

 

 

 

Total assets

$1,163,146

$1,161,786

$1,168,164

$1,167,082

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

Interest bearing deposits:

 

 

 

 

Interest bearing demand

$161,101

$138,572

$128,589

$129,589

Savings

96,806

98,035

96,064

97,405

Money market

244,827

249,618

271,672

275,636

Other time

307,414

299,391

294,099

291,475

Total interest bearing deposits

810,148

785,616

790,424

794,105

Borrowings:

 

 

 

 

Federal funds purchased and other short-term borrowings

29,615

33,126

21,719

16,972

Advances from Federal Home Loan Bank

45,241

44,974

45,273

45,657

Guaranteed junior subordinated deferrable interest debentures

13,085

13,085

13,085

13,085

Subordinated debt

7,650

7,650

7,650

7,650

Total interest bearing liabilities

905,739

884,451

878,151

877,469

 

 

 

 

 

Non-interest bearing liabilities:

 

 

 

 

  Demand deposits

156,262

174,108

183,430

182,301

  Other liabilities

4,209

7,077

9,591

11,119

Shareholders’ equity

96,936

96,150

96,992

96,193


Total liabilities and shareholders’ equity


$1,163,146


$1,161,786


$1,168,164


$1,167,082