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  Title	AMERISERV FINANCIAL REPORTS EARNINGS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2024 AND ANNOUNCES QUARTERLY COMMON STOCK CASH DIVIDEND
  ID	3470004
  External ID	7235788825
  Author	Unknown
  Published Date	Oct. 22, 2024, 8:24 a.m.
  Summary	JOHNSTOWN, Pa., Oct. 22, 2024 /PRNewswire/ -- AmeriServ Financial, Inc. ASRV reported third quarter 2024 net income of $1,183,000, or $0.07 per diluted common share. This earnings performance represen
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  URL	https://www.benzinga.com/pressreleases/24/10/n41449288/ameriserv-financial-reports-earnings-for-the-third-quarter-and-first-nine-months-of-2024-and-annou
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  Content ID	1812992
  Key	47870159-5de6-4427-8d6f-df3e69b61c57
  Content	JOHNSTOWN, Pa., Oct. 22, 2024 /PRNewswire/ -- AmeriServ Financial, Inc. ASRV reported third quarter 2024 net income of $1,183,000, or $0.07 per diluted common share. This earnings performance represented a $536,000, or 82.8%, increase from the third quarter of 2023 when net income totaled $647,000, or $0.04 per diluted common share. For the nine-month period ended September 30, 2024, the Company reported net income of $2,712,000, or $0.16 per diluted common share. This represented a 33.3% increase in earnings per share from the nine-month period of 2023 when net income totaled $1,975,000, or $0.12 per diluted common share. The following table details the Company's financial performance for the three- and nine-month periods ended September 30, 2024 and 2023: Third Quarter 2024 Third Quarter 2023 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Net income $ 1,183,000 $ 647,000 $ 2,712,000 $ 1,975,000 Diluted earnings per share $ 0.07 $ 0.04 $ 0.16 $ 0.12 Jeffrey A. Stopko, President and Chief Executive Officer, commented on the 2024 third quarter financial results: "Our community banking business continued to benefit from diversified revenue streams, with another quarter of strong revenue and profit contribution from our wealth management business. Total non-interest income represented 34% of total revenue for the first nine months of 2024. Both total average loans and deposits have grown this year, demonstrating the strength and loyalty of our customer base and helping to drive three consecutive quarters of net interest income improvement. We believe that our balance sheet is well positioned for further quarterly net interest income growth through the remainder of 2024 and into 2025. Finally, because of the declining interest rate environment and effective capital management, our tangible book value per share has increased by 10.9% to $5.72(1) during the first nine months of 2024." All third quarter and nine months of 2024 financial performance metrics within this document are compared to the third quarter and nine months of 2023 unless otherwise noted. The Company's net interest income in the third quarter of 2024 increased by $88,000, or 1.0%, from the prior year's third quarter but, for the nine months of 2024, decreased by $922,000, or 3.4%, when compared to the nine months of 2023. The Company's net interest margin of 2.71% for the third quarter of 2024 and 2.72% for the nine months of 2024 represents a 5-basis point decrease for the quarter and a 17-basis point decline for the nine months. The decrease reflects net interest margin compression which has been prevalent in the banking industry since the Federal Reserve began tightening monetary policy to control inflation and as the U.S. Treasury yield curve continues to be inverted. While the Company's net interest margin percentage in both time periods of 2024 compares unfavorably to last year, it did demonstrate relative stability so far in 2024 and has improved from its low point in the fourth quarter of 2023 which was 2.63%. With the Federal Reserve's action to begin easing monetary policy in September 2024, management believes the net interest margin will continue to improve in the remaining months of 2024 and into 2025. The Company benefitted from a provision for credit losses recovery in both the third quarter and nine months of 2024 which represents a favorable shift from provision expense in both time periods of 2023. Total non-interest income demonstrated a modest decrease in the third quarter and nine months of 2024 compared to last year. Total non-interest expense in both 2024 time periods compared favorably to what was experienced in 2023. Overall, earnings improvement in both time periods of 2024 was driven by the favorable comparison in the provision for credit losses and non-interest expense. Total average loans in both the third quarter and nine months of 2024 are higher than the 2023 average by $38.9 million, or 3.9%, and $41.9 million, or 4.2%, respectively. So far in 2024, new loan originations have slightly exceeded payoff activity through nine months and resulted in total loan volumes, on an end of period basis, demonstrating modest growth since December 31, 2023. Overall, total loans continue to be above the $1.0 billion threshold averaging $1.033 billion for the third quarter of 2024. The higher interest rate environment along with the higher average total loans outstanding resulted in total loan interest income improving by $1.1 million, or 8.7%, for the third quarter of 2024 and by $4.0 million, or 10.6%, for the nine months of 2024 when compared to both time periods of last year. Total investment securities averaged $255.9 million for the nine months of 2024 which is $6.7 million, or 2.6%, lower than the $262.7 million average for the nine months of last year. The decrease reflects management's strategy to allocate more cash flow from the securities portfolio to higher yielding loans while the Company controlled the amount of high cost overnight borrowed funds. Thus, new investment security purchases were primarily used to replace cash flow from maturing securities to maintain appropriate balances for pledging purposes related to public funds deposits. The improved yields for new securities purchases along with management's execution of an investment portfolio repositioning strategy in late December 2023 caused interest income from investments to increase by $509,000, or 7.4%, in the nine months of 2024 compared to the same period in 2023. Interest income from investments was unfavorably impacted by the transfer of one corporate security into non-accrual status during the third quarter of 2024, which resulted in a $73,000 reversal of previously recognized interest income. Overall, the nine-month average balance of total interest earning assets increased from last year's nine-month average by $35.3 million, or 2.8%, while total interest income increased by $4.6 million, or 10.1%, since the nine months of 2023. On the liability side of the balance sheet, through nine months, total average deposits are $10.5 million, or 0.9%, higher compared to total average deposits in the nine months of 2023. The increase reflects the Company's successful business development efforts which more than offset a portion of the funds from the government stimulus programs leaving the balance sheet and greater pricing competition in the market to retain deposits because of the higher interest rates. The Company's core deposit base continued to demonstrate the strength and stability that it has had for many years. On September 30, 2024, total deposits grew by $31.0 million, or 2.7%, since December 31, 2023, demonstrating customer loyalty and confidence in AmeriServ Financial Bank. The Company does not utilize brokered deposits as a funding source. The loan to deposit ratio averaged 88.7% in the third quarter of 2024, which indicates that the Company has ample capacity to continue to grow its loan portfolio and is well positioned to support our customers and our community during times of economic volatility. Total interest expense increased by $1.2 million, or 17.8%, for the third quarter of 2024, and by $5.5 million, or 31.3%, for the nine months of 2024 when compared to both time periods of last year, due to higher deposit and borrowings interest expense. Deposit interest expense was higher by $862,000, or 15.2%, for the quarter and by $4.2 million, or 28.5%, for the nine months as the average volume of total interest-bearing deposits grew by $27.1 million, or 2.8%, for the quarter and by $26.5 million, or 2.8%, for the nine months. The rising national interest rates in 2023 resulted in certain deposit products, particularly public funds, which are tied to a market index, repricing upward with the move in short-term interest rates causing interest expense to increase. Additionally, increased market competition resulted in the Company raising rates on certain shorter-term certificates of deposit to retain funds. Another factor contributing to net interest margin compression was an unfavorable deposit mix shift as the 2024 average of non-interest-bearing demand deposits declined by $11.2 million, or 6.0%, for the quarter and $16.0 million, or 8.2%, for the nine months while, as mentioned above, total interest-bearing deposits increased. For interest rate risk management purposes and to offset a portion of the unfavorable impact that rising funding costs are having on net interest income, management proactively executed $70 million of interest rate hedge transactions during 2023 to fix the cost of certain deposits that are indexed and move with short-term interest rates. Finally, the increasing trend in total deposit costs experienced since the Federal Reserve began to tighten monetary policy slowed in 2024 with the Federal Open Market Committee keeping the Fed Funds rate stable since July 2023 until their action to ease monetary policy in September 2024. This slowdown in deposit costs has contributed to the previously mentioned recent stabilization and improvement in the net interest margin. Management believes that deposit costs will improve as the Federal Reserve continues their expected tempered approach to reduce interest rates. Overall, total deposit cost averaged 2.19% in the nine months of 2024, which is 47-basis points higher than total deposit cost of 1.72% for the nine months of 2023. Total borrowings interest expense increased by $319,000, or 32.3%, in the third quarter of 2024 and by $1.2 million, or 47.3%, when compared to the nine months of 2023. The increase primarily results from the impact that the higher interest rates had on total borrowings cost. The Company's utilization of overnight borrowed funds so far in 2024 has been lower than the 2023 level in both time periods while the level of advances from the Federal Home Loan Bank have increased. Advances from the Federal Home Loan Bank averaged $50.7 million in the nine months of 2024 which is $31.9 million, or 169.8%, higher than the $18.8 million average in the nine months of 2023. Management's strategy to increase term advances to lock in lower rates than overnight borrowings due to the inversion in the yield curve has favorably impacted net interest income. The Company recorded a $51,000 provision for credit losses recovery in the third quarter of 2024 after recording provision expense of $189,000 in the third quarter of 2023, resulting in a net favorable change of $240,000. For the nine months of 2024, the Company recognized a $174,000 provision for credit losses recovery after recognizing $1.4 million of provision expense in the nine months of 2023, resulting in a net favorable change of $1.6 million. The provision recovery in the third quarter of 2024 primarily reflects improved historical loss rates used to calculate the allowance for loan credit losses in accordance with CECL. The provision for credit losses net recovery for the nine-month timeframe reflects first quarter 2024 recoveries recognized in both the loan and securities portfolios which more than offset additional contributions made to the provision during the second quarter of 2024 for an AFS security and total loans. Activity within the provision for credit losses from prior quarters is described in the Company's previous 2024 press releases. Non-performing assets decreased since the second quarter of 2024 by $160,000 and totaled $12.7 million. This decline occurred despite the transfer of a $1 million corporate security into non-accrual status. Non-performing assets from the loan portfolio are at 1.12% of total loans. The Company recognized net loan charge-offs of $488,000, or 0.06% of total average loans, in the nine months of 2024 compared to net loan charge-offs of $187,000, or 0.03% of total average loans, in the nine months of 2023. The allowance for loan credit losses at September 30, 2024 is $2.1 million, or 17.1%, higher than the allowance for loan credit losses at September 30, 2023. The increase since last year's third quarter end is due to the Company strengthening its allowance for loan credit losses during the fourth quarter of 2023. Overall, the Company continues to maintain solid coverage of both total loans and non-performing loans as the allowance for loan credit losses provided 147% coverage of non-performing loans and 1.39% of total loans at September 30, 2024. Total non-interest income in the third quarter of 2024 decreased by $53,000, or 1.2%, from the prior year's third quarter and declined by $103,000, or 0.8%, in the nine months of 2024 when compared to the nine months of 2023. The slight decrease for the nine-month period is primarily attributed to the Company recognizing a $1.7 million gain in the first quarter of 2023 from AmeriServ Financial Bank selling all 7,859 shares of the Class B common stock of Visa Inc. There was no such gain during the nine-month period ending September 30, 2024. Wealth management fees improved by $205,000, or 7.2%, for the quarter and by $1.0 million, or 12.0%, for the nine months due in part to a strong performance from our Financial Services division that resulted from new business growth. Also, the increase in wealth management fees reflects the improving market conditions particularly for equity securities as major market indexes continue their ascent to record highs in 2024. Overall, the fair market value of wealth management assets totaled $2.6 billion at September 30, 2024 and increased by $218.3 million, or 9.1%, since September 30, 2023. Other income is $159,000, or 23.4%, lower for the third quarter but $590,000, or 36.5%, higher for the nine months of 2024. The variances for both time periods primarily reflect the necessary adjustments to the fair market value of an interest rate swap related risk participation agreement as well as the credit valuation adjustment to the market value of the interest rate swap contracts that the Company executed to accommodate the needs of certain borrowers while managing our interest rate risk position. These adjustments reflect the changing national interest rates which unfavorably impacted other income by $234,000 during the third quarter of 2024 but were net favorable for the nine months by $188,000. In the first quarter of 2024, other income was favorably impacted by the Company recognizing a $250,000 signing bonus that resulted from successful negotiations related to the renewal of an expiring contract with Visa. Total non-interest expense in the third quarter of 2024 decreased by $374,000, or 3.1%, when compared to the third quarter of 2023 and decreased by $353,000, or 0.9%, during the nine months of 2024 when compared to the nine months of 2023. Salaries and employee benefits expense decreased by $914,000, or 4.1%, for the nine months of 2024 due to the net impact of certain items within this broad category. Total salaries cost was down by $641,000, or 4.1%, after the Company incurred additional salary expense in 2023 related to a strategy to consolidate certain executive level positions in the wealth management business. This is part of our previously announced earnings improvement program and was designed to lower future employee costs, which is occurring in 2024. Also, total health care cost was $459,000, or 15.9%, lower compared to last year and reflects management's effective negotiations with our current health care provider that resulted in not having to recognize any premium costs in January 2024. These favorable items were partially offset by an increased level of incentive compensation by $343,000, or 41.2%, which corresponds to the strong performance of our wealth management division. Other expenses were $520,000, or 15.3%, higher for the nine months of 2024 when compared to the nine months of 2023. The Company was required to recognize a settlement charge in connection with its defined benefit pension plan in the second and third quarters of 2024. The amount of the 2024 charge was $410,000. A settlement charge must be recognized when the total dollar amount of lump sum distributions paid from the pension plan to retired employees exceeds a threshold of expected annual service and interest costs in the current year. It is important to note that since the retired employees have chosen to take the lump sum payments, these individuals are no longer included in the pension plan. Therefore, the Company's normal annual pension expense will continue to be lower in the future. This was evident in 2023 and so far in 2024 as the Company has recognized a pension credit in both years. FDIC insurance increased by $265,000, or 53.5%, due to an increase in both the asset assessment base as well as the assessment rate. Data processing and IT expenses increased by $291,000, or 8.8%, in the nine months of 2024 due to additional expenses related to monitoring our computing and network environment. Professional fees in both 2024 and 2023 were impacted by litigation and responses to the actions of an activist investor. The Company reached a Cooperation and Settlement Agreement with activist investor Driver Opportunity Partners (Driver), which was described in a Current Report on Form 8-K filed on June 14, 2024. The Company's activist related costs declined by approximately $400,000 when the third quarter of 2024 is compared to the third quarter of 2023. Through nine months of 2024, activist related costs totaled $1.5 million compared to $2.0 million recognized through nine months of 2023. The Company does not expect to incur any additional activist related costs through the remainder of 2024. The Company recorded income tax expense of $237,000 in the third quarter of 2024 and income tax expense of $611,000, or an effective tax rate of 18.4%, in the nine months of 2024, which compares to income tax expense of $124,000, in the third quarter of 2023 and income tax expense of $435,000, or an effective tax rate of 18.0%, for the nine months of 2023. The Company had total assets of $1.4 billion, shareholders' equity of $108.2 million, a book value of $6.55 per common share and a tangible book value of $5.72(1) per common share on September 30, 2024. Book value per common share increased by $0.59, or 9.9%, and tangible book value per common share increased by $0.56, or 10.9% since December 31, 2023, due to a favorable adjustment for both the unrealized loss on available for sale securities and the Company's defined benefit pension plan and the accretive repurchase of 628,003 shares of common stock from Driver. The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status as of September 30, 2024. QUARTERLY COMMON STOCK DIVIDEND The Company's Board of Directors declared a $0.03 per share quarterly common stock cash dividend. The cash dividend is payable November 18, 2024, to shareholders of record on November 4, 2024. This cash dividend represents a 4.01% annualized yield using the October 18, 2024, closing stock price of $2.99 and a 43% payout ratio based upon the most recent quarterly earnings. The Company's Board of Directors elected to continue the common dividend at its current level given the Company's strong capital position and earnings improvement in 2024. Forward-Looking Statements This press release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology, market conditions, dividend program, and future payment obligations. These statements may be identified by such forward-looking terminology as "continuing," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy," or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, unanticipated changes in the financial markets, the level of inflation, and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; competition levels; loan and investment prepayments differing from our assumptions; insufficient allowance for credit losses; a higher level of loan charge-offs and delinquencies than anticipated; material adverse changes in our operations or earnings; a decline in the economy in our market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; a decrease in loan origination volume or an inability to close loans currently in the pipeline; changes in laws and regulations; adoption, interpretation and implementation of accounting pronouncements; ability to successfully execute the Earnings Improvement Program and achieve the anticipated benefits in the amounts and at times estimated; operational risks, including the risk of fraud by employees, customers or outsiders; unanticipated effects to our banking platform; and the inability to successfully implement or expand new lines of business or new products and services. These forward-looking statements involve risks and uncertainties that could cause AmeriServ's results to differ materially from management's current expectations. Such risks and uncertainties are detailed in AmeriServ's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements are based on the beliefs and assumptions of AmeriServ's management and on currently available information. The statements in this press release are made as of the date of this press release, even if subsequently made available by AmeriServ on its website or otherwise. AmeriServ undertakes no responsibility to publicly update or revise any forward-looking statement. _____________________________ (1) Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial Measures" at end of release. AMERISERV FINANCIAL, INC. NASDAQ: ASRV SUPPLEMENTAL FINANCIAL PERFORMANCE DATA September 30, 2024 (Dollars in thousands, except per share and ratio data) (Unaudited) 2024 1QTR 2QTR 3QTR YEAR TO DATE PERFORMANCE DATA FOR THE PERIOD: Net income (loss) $ 1,904 $ (375) $ 1,183 $ 2,712 PERFORMANCE PERCENTAGES (annualized): Return on average assets 0.55 % (0.11) % 0.34 % 0.26 % Return on average equity 7.51 (1.47) 4.51 3.52 Return on average tangible common equity (1) 8.67 (1.70) 5.19 4.06 Net interest margin 2.70 2.74 2.71 2.72 Net charge-offs (recoveries) as a percentage of average loans 0.05 0.08 0.06 0.06 Efficiency ratio (3) 86.60 100.33 89.49 92.09 EARNINGS PER COMMON SHARE: Basic $ 0.11 $ (0.02) $ 0.07 $ 0.16 Average number of common shares outstanding 17,147 17,030 16,519 16,897 Diluted $ 0.11 $ (0.02) $ 0.07 $ 0.16 Average number of common shares outstanding 17,147 17,030 16,519 16,897 Cash dividends paid per share $ 0.03 $ 0.03 $ 0.03 $ 0.09 2023 1QTR 2QTR 3QTR YEAR TO DATE PERFORMANCE DATA FOR THE PERIOD: Net income (loss) $ 1,515 $ (187) $ 647 $ 1,975 PERFORMANCE PERCENTAGES (annualized): Return on average assets 0.45 % (0.06) % 0.19 % 0.20 % Return on average equity 5.85 (0.72) 2.49 2.53 Return on average tangible common equity (1) 6.73 (0.82) 2.88 2.91 Net interest margin 3.03 2.89 2.76 2.89 Net charge-offs (recoveries) as a percentage of average loans 0.05 (0.02) 0.05 0.03 Efficiency ratio (3) 79.58 101.55 92.60 90.67 EARNINGS PER COMMON SHARE: Basic $ 0.09 $ (0.01) $ 0.04 $ 0.12 Average number of common shares outstanding 17,131 17,147 17,147 17,142 Diluted $ 0.09 $ (0.01) $ 0.04 $ 0.12 Average number of common shares outstanding 17,155 17,147 17,147 17,146 Cash dividends paid per share $ 0.03 $ 0.03 $ 0.03 $ 0.09 AMERISERV FINANCIAL, INC. NASDAQ: ASRV --CONTINUED-- (Dollars in thousands, except per share, statistical, and ratio data) (Unaudited) 2024 1QTR 2QTR 3QTR FINANCIAL CONDITION DATA AT PERIOD END: Assets $ 1,384,516 $ 1,403,438 $ 1,405,187 Short-term investments/overnight funds 3,353 2,925 4,877 Investment securities, net of allowance for credit losses - securities 230,419 230,425 230,042 Total loans and loans held for sale, net of unearned income 1,026,586 1,039,258 1,040,421 Allowance for credit losses - loans 14,639 14,611 14,420 Intangible assets 13,705 13,699 13,693 Deposits 1,176,578 1,170,359 1,189,330 Short-term and FHLB borrowings 60,858 85,495 66,312 Subordinated debt, net 26,695 26,706 26,716 Shareholders' equity 103,933 103,661 108,182 Non-performing assets 12,161 12,817 12,657 Tangible common equity ratio (1) 6.58 % 6.47 % 6.79 % Total capital (to risk weighted assets) ratio 13.10 12.77 12.87 PER COMMON SHARE: Book value $ 6.06 $ 6.28 $ 6.55 Tangible book value (1) 5.26 5.45 5.72 Market value (2) 2.60 2.26 2.61 Wealth management assets – fair market value (4) $ 2,603,493 $ 2,580,402 $ 2,603,856 STATISTICAL DATA AT PERIOD END: Full-time equivalent employees 304 310 302 Branch locations 16 16 16 Common shares outstanding 17,147,270 16,519,267 16,519,267 2023 1QTR 2QTR 3QTR 4QTR FINANCIAL CONDITION DATA AT PERIOD END: Assets $ 1,345,957 $ 1,345,721 $ 1,361,789 $ 1,389,638 Short-term investments/overnight funds 4,116 3,366 3,598 4,349 Investment securities, net of allowance for credit losses - securities 238,613 232,259 229,335 229,690 Total loans and loans held for sale, net of unearned income 980,877 988,221 1,002,306 1,038,401 Allowance for credit losses - loans 12,132 12,221 12,313 15,053 Intangible assets 13,731 13,724 13,718 13,712 Deposits 1,131,789 1,127,569 1,129,290 1,158,360 Short-term and FHLB borrowings 69,124 72,793 85,568 85,513 Subordinated debt, net 26,654 26,665 26,675 26,685 Shareholders' equity 105,899 103,565 101,326 102,277 Non-performing assets 4,599 5,650 5,939 12,393 Tangible common equity ratio (1) 6.92 % 6.74 % 6.50 % 6.44 % Total capital (to risk weighted assets) ratio 14.17 14.00 13.72 13.03 PER COMMON SHARE: Book value $ 6.18 $ 6.04 $ 5.91 $ 5.96 Tangible book value (1) 5.38 5.24 5.11 5.16 Market value (2) 3.05 2.54 2.65 3.24 Wealth management assets – fair market value (4) $ 2,354,498 $ 2,446,639 $ 2,385,590 $ 2,521,501 STATISTICAL DATA AT PERIOD END: Full-time equivalent employees 308 315 308 307 Branch locations 17 17 17 17 Common shares outstanding 17,147,270 17,147,270 17,147,270 17,147,270 NOTES: (1) Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial Measures" at end of release. (2) Based on closing price reported by the principal market on which the share is traded on the last business day of the corresponding reporting period. (3) Ratio calculated by dividing total non-interest expense by tax equivalent net interest income plus total non-interest income. (4) Not recognized on the consolidated balance sheets. AMERISERV FINANCIAL, INC. NASDAQ: ASRV CONSOLIDATED STATEMENT OF INCOME (Dollars in thousands) (Unaudited) 2024 1QTR 2QTR 3QTR YEAR TO DATE INTEREST INCOME Interest and fees on loans $ 13,776 $ 14,003 $ 14,301 $ 42,080 Interest on investments 2,448 2,507 2,407 7,362 Total Interest Income 16,224 16,510 16,708 49,442 INTEREST EXPENSE Deposits 6,199 6,389 6,515 19,103 All borrowings 1,278 1,246 1,306 3,830 Total Interest Expense 7,477 7,635 7,821 22,933 NET INTEREST INCOME 8,747 8,875 8,887 26,509 Provision (recovery) for credit losses (557) 434 (51) (174) NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES 9,304 8,441 8,938 26,683 NON-INTEREST INCOME Wealth management fees 3,266 3,059 3,050 9,375 Service charges on deposit accounts 293 293 304 890 Net realized gains on loans held for sale 10 59 55 124 Mortgage related fees 29 48 30 107 Gain on sale of Visa Class B shares 0 0 0 0 Bank owned life insurance 337 240 244 821 Other income 1,012 673 520 2,205 Total Non-Interest Income 4,947 4,372 4,203 13,522 NON-INTEREST EXPENSE Salaries and employee benefits 7,117 7,108 7,122 21,347 Net occupancy expense 791 730 706 2,227 Equipment expense 386 391 371 1,148 Professional fees 1,002 2,094 792 3,888 Data processing and IT expense 1,159 1,142 1,287 3,588 FDIC deposit insurance expense 255 250 255 760 Other expense 1,154 1,582 1,188 3,924 Total Non-Interest Expense 11,864 13,297 11,721 36,882 PRETAX INCOME (LOSS) 2,387 (484) 1,420 3,323 Income tax expense (benefit) 483 (109) 237 611 NET INCOME (LOSS) $ 1,904 $ (375) $ 1,183 $ 2,712 2023 1QTR 2QTR 3QTR YEAR TO DATE INTEREST INCOME Interest and fees on loans $ 12,276 $ 12,609 $ 13,154 $ 38,039 Interest on investments 2,298 2,270 2,285 6,853 Total Interest Income 14,574 14,879 15,439 44,892 INTEREST EXPENSE Deposits 4,189 5,019 5,653 14,861 All borrowings 863 750 987 2,600 Total Interest Expense 5,052 5,769 6,640 17,461 NET INTEREST INCOME 9,522 9,110 8,799 27,431 Provision (recovery) for credit losses 1,179 43 189 1,411 NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES 8,343 9,067 8,610 26,020 NON-INTEREST INCOME Wealth management fees 2,738 2,789 2,845 8,372 Service charges on deposit accounts 266 280 311 857 Net realized gains on loans held for sale 26 38 59 123 Mortgage related fees 33 34 41 108 Gain on sale of Visa Class B shares 1,748 0 0 1,748 Bank owned life insurance 239 242 321 802 Other income 457 479 679 1,615 Total Non-Interest Income 5,507 3,862 4,256 13,625 NON-INTEREST EXPENSE Salaries and employee benefits 7,175 7,728 7,358 22,261 Net occupancy expense 772 713 719 2,204 Equipment expense 415 422 376 1,213 Professional fees 1,308 1,907 1,146 4,361 Data processing and IT expense 1,078 1,080 1,139 3,297 FDIC deposit insurance expense 125 175 195 495 Other expense 1,090 1,152 1,162 3,404 Total Non-Interest Expense 11,963 13,177 12,095 37,235 PRETAX INCOME (LOSS) 1,887 (248) 771 2,410 Income tax expense (benefit) 372 (61) 124 435 NET INCOME (LOSS) $ 1,515 $ (187) $ 647 $ 1,975 AMERISERV FINANCIAL, INC. NASDAQ: ASRV AVERAGE BALANCE SHEET DATA (Dollars in thousands) (Unaudited) 2024 2023 3QTR NINE MONTHS 3QTR NINE MONTHS Interest earning assets: Loans and loans held for sale, net of unearned income $ 1,033,159 $ 1,030,887 $ 994,263 $ 988,955 Short-term investments and bank deposits 3,935 3,835 3,196 3,766 Total investment securities 254,551 255,946 260,198 262,654 Total interest earning assets 1,291,645 1,290,668 1,257,657 1,255,375 Non-interest earning assets: Cash and due from banks 13,606 14,212 14,673 15,899 Premises and equipment 18,828 18,604 17,028 17,272 Other assets 85,737 83,011 75,372 75,027 Allowance for credit losses (15,182) (15,406) (13,387) (12,955) Total assets $ 1,394,634 $ 1,391,089 $ 1,351,343 $ 1,350,618 Interest bearing liabilities: Interest bearing deposits: Interest bearing demand $ 223,835 $ 223,163 $ 225,395 $ 225,793 Savings 120,910 120,528 126,589 129,594 Money market 314,436 312,379 299,694 300,415 Other time 329,330 327,659 309,719 301,384 Total interest bearing deposits 988,511 983,729 961,397 957,186 Borrowings: Federal funds purchased and other short-term borrowings 28,670 30,214 35,970 33,885 Advances from Federal Home Loan Bank 53,418 50,671 20,455 18,784 Subordinated debt 27,000 27,000 27,000 27,000 Lease liabilities 4,383 4,351 3,138 3,207 Total interest bearing liabilities 1,101,982 1,095,965 1,047,960 1,040,062 Non-interest bearing liabilities: Demand deposits 176,286 178,762 187,480 194,781 Other liabilities 11,950 13,332 12,927 11,448 Shareholders' equity 104,416 103,030 102,976 104,327 Total liabilities and shareholders' equity $ 1,394,634 $ 1,391,089 $ 1,351,343 $ 1,350,618 AMERISERV FINANCIAL, INC. NASDAQ: ASRV CHANGES IN SHAREHOLDERS' EQUITY (Dollars in thousands) (Unaudited) 2024 COMMON STOCK TREASURY STOCK SURPLUS RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME TOTAL Balance at December 31, 2023 $ 268 $ (83,280) $ 146,364 $ 58,901 $ (19,976) $ 102,277 Net income 0 0 0 1,904 0 1,904 Exercise of stock options and stock option expense 0 0 8 0 0 8 Adjustment for defined benefit pension plan 0 0 0 0 (131) (131) Adjustment for unrealized loss on available for sale securities 0 0 0 0 (241) (241) Market value adjustment for interest rate hedge 0 0 0 0 630 630 Common stock cash dividend 0 0 0 (514) 0 (514) Balance at March 31, 2024 $ 268 $ (83,280) $ 146,372 $ 60,291 $ (19,718) $ 103,933 Net loss 0 0 0 (375) 0 (375) Treasury stock, purchased at cost 0 (1,511) 0 0 0 (1,511) Adjustment for defined benefit pension plan 0 0 0 0 2,177 2,177 Adjustment for unrealized loss on available for sale securities 0 0 0 0 (119) (119) Market value adjustment for interest rate hedge 0 0 0 0 71 71 Common stock cash dividend 0 0 0 (515) 0 (515) Balance at June 30, 2024 $ 268 $ (84,791) $ 146,372 $ 59,401 $ (17,589) $ 103,661 Net income 0 0 0 1,183 0 1,183 Adjustment for defined benefit pension plan 0 0 0 0 753 753 Adjustment for unrealized gain on available for sale securities 0 0 0 0 3,966 3,966 Market value adjustment for interest rate hedge 0 0 0 0 (886) (886) Common stock cash dividend 0 0 0 (495) 0 (495) Balance at September 30, 2024 $ 268 $ (84,791) $ 146,372 $ 60,089 $ (13,756) $ 108,182 2023 COMMON STOCK TREASURY STOCK SURPLUS RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME TOTAL Balance at December 31, 2022 $ 267 $ (83,280) $ 146,225 $ 65,486 $ (22,520) $ 106,178 Net income 0 0 0 1,515 0 1,515 Exercise of stock options and stock option expense 1 0 106 0 0 107 Adjustment for defined benefit pension plan 0 0 0 0 0 0 Adjustment for unrealized gain on available for sale securities 0 0 0 0 449 449 Market value adjustment for interest rate hedge 0 0 0 0 (655) (655) Cumulative effect adjustment for change in accounting principal 0 0 0 (1,181) 0 (1,181) Common stock cash dividend 0 0 0 (514) 0 (514) Balance at March 31, 2023 $ 268 $ (83,280) $ 146,331 $ 65,306 $ (22,726) $ 105,899 Net loss 0 0 0 (187) 0 (187) Exercise of stock options and stock option expense 0 0 12 0 0 12 Adjustment for defined benefit pension plan 0 0 0 0 0 0 Adjustment for unrealized loss on available for sale securities 0 0 0 0 (2,560) (2,560) Market value adjustment for interest rate hedge 0 0 0 0 916 916 Common stock cash dividend 0 0 0 (515) 0 (515) Balance at June 30, 2023 $ 268 $ (83,280) $ 146,343 $ 64,604 $ (24,370) $ 103,565 Net income 0 0 0 647 0 647 Exercise of stock options and stock option expense 0 0 11 0 0 11 Adjustment for defined benefit pension plan 0 0 0 0 0 0 Adjustment for unrealized loss on available for sale securities 0 0 0 0 (2,700) (2,700) Market value adjustment for interest rate hedge 0 0 0 0 316 316 Common stock cash dividend 0 0 0 (513) 0 (513) Balance at September 30, 2023 $ 268 $ (83,280) $ 146,354 $ 64,738 $ (26,754) $ 101,326 Net loss 0 0 0 (5,321) 0 (5,321) Exercise of stock options and stock option expense 0 0 10 0 0 10 Adjustment for defined benefit pension plan 0 0 0 0 1,688 1,688 Adjustment for unrealized gain on available for sale securities 0 0 0 0 6,019 6,019 Market value adjustment for interest rate hedge 0 0 0 0 (929) (929) Common stock cash dividend 0 0 0 (516) 0 (516) Balance at December 31, 2023 $ 268 $ (83,280) $ 146,364 $ 58,901 $ (19,976) $ 102,277 AMERISERV FINANCIAL, INC. NASDAQ: ASRV RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RETURN ON AVERAGE TANGIBLE COMMON EQUITY, TANGIBLE COMMON EQUITY RATIO, AND TANGIBLE BOOK VALUE PER SHARE (Dollars in thousands, except per share and ratio data) (Unaudited) The press release contains certain financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures are "return on average tangible common equity", "tangible common equity ratio", and "tangible book value per share". This non-GAAP disclosure has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. These non-GAAP measures are used by management in their analysis of the Company's performance or, management believes, facilitate an understanding of the Company's performance. We also believe that presenting non-GAAP financial measures provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. 2024 1QTR 2QTR 3QTR YEAR TO DATE RETURN ON AVERAGE TANGIBLE COMMON EQUITY Net income (loss) $ 1,904 $ (375) $ 1,183 $ 2,712 Average shareholders' equity 101,997 102,677 104,416 103,030 Less: Average intangible assets 13,708 13,701 13,695 13,702 Average tangible common equity 88,289 88,976 90,721 89,328 Return on average tangible common equity (annualized) 8.67 % (1.70) % 5.19 % 4.06 % 1QTR 2QTR 3QTR TANGIBLE COMMON EQUITY Total shareholders' equity $ 103,933 $ 103,661 $ 108,182 Less: Intangible assets 13,705 13,699 13,693 Tangible common equity 90,228 89,962 94,489 TANGIBLE ASSETS Total assets 1,384,516 1,403,438 1,405,187 Less: Intangible assets 13,705 13,699 13,693 Tangible assets 1,370,811 1,389,739 1,391,494 Tangible common equity ratio 6.58 % 6.47 % 6.79 % Total shares outstanding 17,147,270 16,519,267 16,519,267 Tangible book value per share $ 5.26 $ 5.45 $ 5.72 2023 1QTR 2QTR 3QTR YEAR TO DATE RETURN ON AVERAGE TANGIBLE COMMON EQUITY Net income (loss) $ 1,515 $ (187) $ 647 $ 1,975 Average shareholders' equity 105,092 104,913 102,976 104,327 Less: Average intangible assets 13,734 13,727 13,720 13,727 Average tangible common equity 91,358 91,186 89,256 90,600 Return on average tangible common equity (annualized) 6.73 % (0.82) % 2.88 % 2.91 % 1QTR 2QTR 3QTR 4QTR TANGIBLE COMMON EQUITY Total shareholders' equity $ 105,899 $ 103,565 $ 101,326 $ 102,277 Less: Intangible assets 13,731 13,724 13,718 13,712 Tangible common equity 92,168 89,841 87,608 88,565 TANGIBLE ASSETS Total assets 1,345,957 1,345,721 1,361,789 1,389,638 Less: Intangible assets 13,731 13,724 13,718 13,712 Tangible assets 1,332,226 1,331,997 1,348,071 1,375,926 Tangible common equity ratio 6.92 % 6.74 % 6.50 % 6.44 % Total shares outstanding 17,147,270 17,147,270 17,147,270 17,147,270 Tangible book value per share $ 5.38 $ 5.24 $ 5.11 $ 5.16 View original content to download multimedia:https://www.prnewswire.com/news-releases/ameriserv-financial-reports-earnings-for-the-third-quarter-and-first-nine-months-of-2024-and-announces-quarterly-common-stock-cash-dividend-302282338.html SOURCE AmeriServ Financial, Inc.
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  Publisher Name	Benzinga
  Publisher URL	https://www.benzinga.com
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  Trust Flow Score	37
  Citation Flow Score	50

• Data Source

  Data Source Name	Quantexa News
  Data Source Type	news
  Data Source URL	https://app.aylien.com/dashboard
  Description	Welcome to Quantexa News API — the most powerful way to aggregate, filter, and integrate global news data into your apps and models.
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