UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
For the transition period from ____________ to_____________
Commission File Number
(Exact name of registrant as specified in its charter)
| |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code
Securities registered pursuant to Section 12(b) of the Act:
Title Of Each Class | Trading Symbol | Name of Each Exchange On Which Registered |
The |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ◻ | Accelerated Filer ◻ | Smaller Reporting Company | |
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. ◻
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class |
| Outstanding at November 1, 2023 | |
Common Stock, par value $0.01 | |
AmeriServ Financial, Inc.
INDEX
2
Item 1. Financial Statements
AmeriServ Financial, Inc.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
September 30, 2023 | December 31, 2022 | |||||
ASSETS |
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Cash and due from depository institutions | $ | | $ | | ||
Interest bearing deposits and short-term investments |
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Cash and cash equivalents |
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Investment securities, net of allowance for credit losses: |
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Available for sale, at fair value (allowance for credit losses $ |
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Held to maturity (fair value $ |
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Loans held for sale |
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Loans (net of unearned income $ |
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Less: Allowance for credit losses |
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Net loans |
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Premises and equipment: |
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Operating lease right-of-use asset | | | ||||
Financing lease right-of-use asset | | | ||||
Other premises and equipment, net | | | ||||
Accrued interest income receivable |
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Intangible assets: |
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Goodwill |
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Core deposit intangible |
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Bank owned life insurance |
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Net deferred tax asset |
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Federal Home Loan Bank stock |
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Federal Reserve Bank stock |
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Other assets |
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TOTAL ASSETS | $ | | $ | | ||
LIABILITIES | ||||||
Non-interest bearing deposits | $ | | $ | | ||
Interest bearing deposits |
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Total deposits |
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Short-term borrowings |
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Advances from Federal Home Loan Bank |
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Operating lease liabilities | | | ||||
Financing lease liabilities | | | ||||
Subordinated debt |
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Total borrowed funds |
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Other liabilities |
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TOTAL LIABILITIES |
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SHAREHOLDERS' EQUITY |
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Common stock, par value $ |
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Treasury stock at cost, |
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Capital surplus |
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Retained earnings |
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Accumulated other comprehensive loss, net |
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TOTAL SHAREHOLDERS' EQUITY |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | | $ | |
See accompanying notes to unaudited consolidated financial statements.
3
AmeriServ Financial, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | ||||||||||
2023 |
| 2022 |
| 2023 |
| 2022 | ||||||
INTEREST INCOME |
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Interest and fees on loans |
| $ | |
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| $ | |
| $ | |
Interest bearing deposits and short-term investments |
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Investment securities: |
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Available for sale |
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Held to maturity |
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Total Interest Income |
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INTEREST EXPENSE |
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Deposits |
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Short-term borrowings |
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Advances from Federal Home Loan Bank |
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Financing lease liabilities | | | | | ||||||||
Subordinated debt |
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Total Interest Expense |
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Net Interest Income |
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Provision (credit) for credit losses |
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Net Interest Income after Provision (Credit) for Credit Losses |
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NON-INTEREST INCOME |
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Wealth management fees |
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Service charges on deposit accounts |
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Net gains on loans held for sale |
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Mortgage related fees |
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Gain on sale of Visa Class B shares | — | — | | — | ||||||||
Bank owned life insurance |
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Other income |
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Total Non-Interest Income |
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NON-INTEREST EXPENSE |
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Salaries and employee benefits |
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Net occupancy expense |
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Equipment expense |
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Professional fees |
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Data processing and IT expense | | | | | ||||||||
Supplies, postage and freight |
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Miscellaneous taxes and insurance |
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Federal deposit insurance expense |
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Other expense |
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Total Non-Interest Expense |
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PRETAX INCOME | | | | | ||||||||
Provision for income taxes | | | | | ||||||||
NET INCOME | $ | | $ | | $ | | $ | | ||||
PER COMMON SHARE DATA: | ||||||||||||
Basic: | ||||||||||||
Net income | $ | | $ | | $ | | $ | | ||||
Average number of shares outstanding | | | | | ||||||||
Diluted: | ||||||||||||
Net income | $ | | $ | | $ | | $ | | ||||
Average number of shares outstanding | | | | |
See accompanying notes to unaudited consolidated financial statements.
4
AmeriServ Financial, Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | ||||||||||
2023 |
| 2022 |
| 2023 |
| 2022 | ||||||
COMPREHENSIVE LOSS |
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Net income | $ | | $ | | $ | | $ | | ||||
Other comprehensive loss |
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Pension obligation change for defined benefit plan |
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| ( |
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Income tax effect |
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Unrealized holding losses on available for sale securities arising during period |
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Income tax effect |
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Fair value change for interest rate hedge |
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Income tax effect |
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Other comprehensive loss |
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Comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
See accompanying notes to unaudited consolidated financial statements.
5
AmeriServ Financial, Inc.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(In thousands, except share and per share data)
(Unaudited)
Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | ||||||||||
2023 |
| 2022 |
| 2023 |
| 2022 | ||||||
COMMON STOCK |
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Balance at beginning of period | $ | | $ | | $ | | $ | | ||||
New common shares issued for exercise of stock options ( |
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Balance at end of period |
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TREASURY STOCK |
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Balance at beginning of period |
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Treasury stock purchased |
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Balance at end of period |
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CAPITAL SURPLUS |
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Balance at beginning of period |
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New common shares issued for exercise of stock options ( |
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Stock option expense |
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Balance at end of period |
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RETAINED EARNINGS |
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Balance at beginning of period |
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Net income |
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Cash dividend declared on common stock ($ |
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Cumulative effect adjustment for adoption of ASU 2016-13 |
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Balance at end of period |
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ACCUMULATED OTHER COMPREHENSIVE LOSS, NET |
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Balance at beginning of period |
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Other comprehensive loss |
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Balance at end of period |
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TOTAL SHAREHOLDERS’ EQUITY | $ | | $ | | $ | | $ | |
See accompanying notes to unaudited consolidated financial statements.
6
AmeriServ Financial, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine months ended | ||||||
| September 30, | |||||
| 2023 |
| 2022 | |||
OPERATING ACTIVITIES | ||||||
Net income | $ | | $ | | ||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Provision (credit) for credit losses |
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Depreciation and amortization expense |
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Amortization expense of core deposit intangible |
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Amortization of fair value adjustment on acquired time deposits |
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Net amortization of investment securities |
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Net amortization of deferred loan fees |
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Net gains on loans held for sale |
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Origination of mortgage loans held for sale |
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Sales of mortgage loans held for sale |
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Increase in accrued interest receivable |
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Increase (decrease) in accrued interest payable |
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Earnings on bank-owned life insurance |
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Deferred income taxes |
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Stock compensation expense |
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Net change in operating leases | ( | ( | ||||
Other, net |
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Net cash provided by operating activities |
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INVESTING ACTIVITIES |
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Purchase of investment securities — available for sale |
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Purchase of investment securities — held to maturity |
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Proceeds from maturities of investment securities — available for sale |
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Proceeds from maturities of investment securities — held to maturity |
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Proceeds from sales of investment securities — available for sale |
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Purchase of regulatory stock |
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Proceeds from redemption of regulatory stock |
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Long-term loans originated |
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Principal collected on long-term loans |
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Purchases of premises and equipment |
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Proceeds from sale of other real estate owned and repossessed assets |
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Proceeds from life insurance policies |
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Net cash used in investing activities |
| ( |
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FINANCING ACTIVITIES |
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Net increase in deposit balances |
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Net (decrease) increase in other short-term borrowings |
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Principal borrowings on advances from Federal Home Loan Bank |
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Principal repayments on advances from Federal Home Loan Bank |
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Principal payments on financing lease liabilities | ( | ( | ||||
Stock options exercised |
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Common stock dividend paid |
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Net cash (used in) provided by financing activities |
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