SECURITIES AND EXCHANGE COMMISSION





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) April 17, 2012


AMERISERV FINANCIAL, Inc.

(exact name of registrant as specified in its charter)


Pennsylvania        0-11204        25-1424278

(State or other     (commission    (I.R.S. Employer

jurisdiction        File Number)   Identification No.)

of Incorporation)


Main and Franklin Streets, Johnstown, Pa.  15901

(address or 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-4c))

















Form 8-K


Item 2.02 Results of operation and financial condition.


AMERISERV FINANCIAL Inc. (the "Registrant") announced first quarter results through March 31, 2012.  For a more detailed description of the announcement see the press release attached as Exhibit #99.1.  


Exhibits

--------


Exhibit 99.1

Press release dated April 17, 2012, announcing the first quarter results through March 31, 2012.



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/Jeffrey A. Stopko

Jeffrey A. Stopko

Executive Vice President

& CFO


Date: April 17, 2012








Exhibit 99.1

AMERISERV FINANCIAL REPORTS EARNINGS FOR THE FIRST QUARTER OF 2012     


JOHNSTOWN, PA – AmeriServ Financial, Inc. (NASDAQ: ASRV) continued its positive earnings momentum in the first quarter of 2012 by reporting net income of $1,565,000 or $0.06 per diluted common share.  This represents an increase of $302,000, or 23.9%, from the first quarter 2011 net income of $1,263,000 or $0.05 per diluted common share.  There was a greater percentage increase in earnings per share due to the success of the Company’s common stock repurchase program as the Company’s increased 2012 earnings are being spread over a smaller number of shares outstanding.  The following table highlights the Company’s financial performance for the quarters ended March 31, 2012 and 2011:    


 

First Quarter 2012

First Quarter 2011

 

Dollar Change

Percentage Change

 

 

 

 

 

 

Net income

$1,565,000

$1,263,000

 

$302,000

23.9%

Diluted earnings per share

     $ 0.06

        $ 0.05

 

                $ 0.01

37.0%


Glenn L. Wilson, President and Chief Executive Officer, commented on the first quarter 2012 financial results: “I was pleased that our growth in earnings was driven by increased non-interest revenue and stable net interest margin performance.  Our non-interest revenue benefitted from good fee growth in our trust and wealth management business along with another strong quarter of residential mortgage loan production.  This improved revenue growth combined with our continued excellent asset quality,  and strong capital and loan loss reserve, positions us well to execute our growth oriented strategic plan.”            


The Company’s net interest income in the first quarter of 2012 increased by $92,000, or 1.2%, when compared to the first quarter of 2011.  The first quarter 2012 net interest margin of 3.70% was consistent with last year’s first quarter.  The increased net interest income and overall stable net interest margin performance reflects the benefits of a lower cost of funds and moderate loan growth.  Specifically, total loans outstanding have increased for four consecutive quarters and now are $26.5 million or 4.1% higher than they were at March 31, 2011.   This loan growth reflects the successful results of the Company’s more intensive sales calling efforts with a particular emphasis on generating commercial loans and owner occupied commercial real estate loans which qualify as Small Business Lending Fund loans.  Despite this growth in loans, total interest revenue dropped by $472,000 between years and reflects the lower interest rate environment and flatter yield curve.  However, careful management of funding costs allowed the Company to mitigate this drop in interest revenue during the past year.  Specifically, interest expense in the first quarter of 2012 declined by $564,000 from the same prior year quarter due to the Company’s proactive efforts to reduce deposit and borrowing costs.  This reduction in deposit costs has not negatively impacted deposit balances which have increased by $3.6 million over the past 12 months.     


Sustained improvements in asset quality evidenced by lower levels of non-performing assets and criticized loans allowed the Company to reverse a portion of the allowance for loan losses into earnings in the first quarter of 2012 while still maintaining especially strong coverage ratios.  During the first quarter of 2012, total non-performing assets again declined to $4.8 million or 0.72% of total loans as a result of successful ongoing resolution efforts.  Criticized loans also dropped by $10 million or 20.4% during this same period.  As a result of this improvement, the Company again recorded a negative provision for loan losses of $625,000 in the first quarter of 2012 compared to a similar credit provision of $600,000 in the first quarter of 2011.  Actual credit losses realized through net charge-offs also declined sharply in the first quarter of 2012.  Net charge-offs in the first quarter of 2012 totaled only $220,000, or 0.13% of total loans, compared to net charge-offs of $1.1 million, or 0.70% of total loans, in the first quarter of 2011.  When determining the provision for loan losses, the Company considers a number of factors some of which include periodic credit reviews, non-performing asset, loan delinquency and charge-off trends, concentrations of credit, loan volume trends and broader local and national economic trends.  In summary, the allowance for loan losses provided 296% coverage of non-performing loans, and was 2.05% of total loans, at March 31, 2012, compared to 288% of non-performing loans, and 2.18% of total loans, at December 31, 2011.


The Company’s non-interest income in the first quarter of 2012 increased by $569,000 or 18.3% from the prior year’s first quarter.  In the first quarter of 2011, the Company realized a $358,000 investment security loss on a portfolio repositioning strategy where we sold $17 million of lower yielding, longer duration securities in the portfolio and replaced them with higher yielding securities with a shorter duration.  There were no investment security gains or losses in the first quarter of 2012.    Trust and investment advisory fees increased by $136,000 or 7.8% over the prior year first quarter as our wealth management businesses benefited from the implementation of new fee schedules and improved asset values in the first quarter of 2012.        


Total non-interest expense in the first quarter of 2012 increased by $195,000 or 2.0% from the prior year’s first quarter.  Salaries and employee benefits increased by $486,000 or 8.8% due to higher salaries expense, incentive compensation, and pension expense in the first quarter of 2012.  The 2012 personnel expenses also reflect the staffing costs associated with new loan production offices in Altoona and Harrisburg for the full quarter and Hagerstown, Maryland for part of the quarter.  Other expenses also increased by $105,000 due to an increase in the reserve for unfunded loan commitments as result of increased commercial loan origination activity in the first quarter of 2012.  These negative items were partially offset by a $333,000 reduction in FDIC deposit insurance expense in the first quarter of 2012. This reduction resulted from a change in the calculation methodology which took effect in the second half of 2011 and the Company’s improved risk profile which is evidenced by better asset quality and increased profitability.  Finally, the Company recorded an income tax expense of $678,000 or an effective tax rate of 30.2% for the first quarter of 2012 compared to an income tax expense of $489,000 or an effective tax rate of 27.9% for the first quarter of 2011.  The higher income tax expense and effective rate in 2012 reflects the Company’s increased pre-tax earnings combined with a relatively consistent level of tax free earnings from bank owned life insurance.


ASRV had total assets of $967 million and shareholders’ equity of $112 million or a book value of $4.46 per common share at March 31, 2012.  During the first quarter of 2012, the Company repurchased 456,000 shares of its common stock at an average price of $2.38 in conjunction with the terms of the Company’s stock buyback program that was announced on November 9, 2011.  The Company continued to maintain strong capital ratios that considerably exceed the regulatory defined well capitalized status with a risk based capital ratio of 17.22%, an asset leverage ratio of 11.83% and a tangible common equity to tangible assets ratio of 8.24% at March 31, 2012.  


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: ASRV

SUPPLEMENTAL FINANCIAL PERFORMANCE DATA

March 31, 2012

(In thousands, except per share and ratio data)

(Unaudited)


2012

 

1QTR

 

 

 

 

 

 

 

 

 

 

PERFORMANCE DATA FOR THE PERIOD:

 

 

 

 

 

Net income

$1,565

 

 

 

 

Net income available to common

    shareholders


1,302

 

 

 

 

 

 

 

 

 

 

PERFORMANCE PERCENTAGES (annualized):

 

 

 

 

 

Return on average assets

0.65%

 

 

 

 

Return on average equity

5.60

 

 

 

 

Net interest margin

3.70

 

 

 

 

Net charge-offs (recoveries) as a percentage

    of average loans


0.13

 

 

 

 

Loan loss provision as a percentage of

    average loans


(0.38)

 

 

 

 

Efficiency ratio

86.17

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

Net income:

 

 

 

 

 

Basic

$0.06

 

 

 

 

Average number of common shares

    outstanding


20,679

 

 

 

 

Diluted

0.06

 

 

 

 

Average number of common shares

    outstanding


20,722

 

 

 

 

 

 

 

 

 

 

2011

 

1QTR

2QTR

3QTR

4QTR

YEAR

 

 

 

 

 

TO DATE

PERFORMANCE DATA FOR THE PERIOD:

 

 

 

 

 

Net income

$1,263

$1,938

$1,566

$1,770

$6,537

Net income available to common

    shareholders


973


1,648


1,027


1,505


5,153

 

 

 

 

 

 

PERFORMANCE PERCENTAGES (annualized):

 

 

 

 

 

Return on average assets

0.54%

0.81%

0.64%

0.72%

0.68%

Return on average equity

4.77

7.11

5.52

6.19

5.90

Net interest margin

3.70

3.71

3.68

3.64

3.72

Net charge-offs as a percentage of

    average loans


0.70


(0.07)


0.20


0.12


0.24

Loan loss provision as a percentage of

    average loans


(0.37)


(0.72)


(0.33)


(0.73)


(0.54)

Efficiency ratio

89.53

85.53

84.83

89.26

87.26

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

Net income:

 

 

 

 

 

Basic

$0.05

$0.08

$0.05

$0.07

$0.24

Average number of common shares

    outstanding


21,208


21,208


21,208


21,114


21,184

Diluted

0.05

0.08

0.05

0.07

0.24

Average number of common shares

    outstanding


21,230


21,236


21,227


21,128


21,205


AMERISERV FINANCIAL, INC.

(In thousands, except per share, statistical, and ratio data)

(Unaudited)


2012

 

1QTR

 

 

 

PERFORMANCE DATA AT PERIOD END

 

 

 

 

Assets

$967,401

 

 

 

Short-term investments

4,689

 

 

 

Investment securities

190,089

 

 

 

Loans and loans held for sale

671,328

 

 

 

Allowance for loan losses

13,778

 

 

 

Goodwill

12,613

 

 

 

Deposits

820,105

 

 

 

FHLB borrowings

6,390

 

 

 

Shareholders’ equity

112,270

 

 

 

Non-performing assets

4,801

 

 

 

Asset leverage ratio

11.83%

 

 

 

Tangible common equity ratio

8.24

 

 

 

PER COMMON SHARE:

 

 

 

 

Book value (A)

$4.46

 

 

 

Tangible book value

3.84

 

 

 

Market value

2.74

 

 

 

Trust assets – fair market value (B)

$1,469,789

 

 

 

 

 

 

 

 

STATISTICAL DATA AT PERIOD END:

 

 

 

 

Full-time equivalent employees

353

 

 

 

Branch locations

18

 

 

 

Common shares outstanding

20,465,521

 

 

 


2011

 

1QTR

2QTR

3QTR

4QTR

PERFORMANCE DATA AT PERIOD END

 

 

 

 

Assets

$961,067

$954,893

$973,439

$979,076

Short-term investments

4,094

4,338

17,941

6,129

Investment securities

195,272

198,770

195,784

195,203

Loans and loans held for sale

644,836

656,838

667,409

670,847

Allowance for loan losses

18,025

16,958

16,069

14,623

Goodwill

12,613

12,613

12,613

12,613

Deposits

816,528

810,082

827,358

816,420

FHLB borrowings

9,736

9,722

9,707

21,765

Shareholders’ equity

108,170

111,410

114,164

112,352

Non-performing assets

9,328

7,433

5,344

5,199

Asset leverage ratio

11.40%

11.60%

11.70%

11.66%

Tangible common equity ratio

7.89

8.29

8.38

8.15

PER COMMON SHARE:

 

 

 

 

Book value (A)

$4.12

$4.28

$4.39

$4.37

Tangible book value

3.53

3.68

3.80

3.76

Market value

2.37

1.95

1.90

1.95

Trust assets – fair market value (B)

$1,410,755

$1,390,534

$1,313,440

$1,382,745

 

 

 

 

 

STATISTICAL DATA AT PERIOD END:

 

 

 

 

Full-time equivalent employees

351

352

342

347

Branch locations

18

18

18

18

Common shares outstanding

21,207,670

21,208,421

21,208,421

20,921,021

NOTES:

(A)

Preferred stockof $21 million received through the Small Business Lending Fund is excluded from the book value per

common share calculation.

(B)

Not recognized on the balance sheet.


AMERISERV FINANCIAL, INC.

CONSOLIDATED STATEMENT OF INCOME

(In thousands)

(Unaudited)


2012

 

1QTR

 

 

 

 

INTEREST INCOME

 

 

 

 

 

Interest and fees on loans

$8,729

 

 

 

 

Total investment portfolio

1,395

 

 

 

 

Total Interest Income

10,124

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

Deposits

1,762

 

 

 

 

All borrowings

304

 

 

 

 

Total Interest Expense

2,066

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

8,058

 

 

 

 

Provision (credit) for loan losses

(625)

 

 

 

 

NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES


8,683

 

 

 

 

 

 

 

 

 

 

NON-INTEREST INCOME

 

 

 

 

 

Trust fees

1,697

 

 

 

 

Investment advisory fees

193

 

 

 

 

Net realized gains (losses) on investment

    securities


-

 

 

 

 

Net realized gains on loans held for sale

276

 

 

 

 

Service charges on deposit accounts

535

 

 

 

 

Bank owned life insurance

215

 

 

 

 

Other income

758

 

 

 

 

Total Non-interest Income

3,674

 

 

 

 

 

 

 

 

 

 

NON-INTEREST EXPENSE

 

 

 

 

 

Salaries and employee benefits

5,986

 

 

 

 

Net occupancy expense

729

 

 

 

 

Equipment expense

451

 

 

 

 

Professional fees

923

 

 

 

 

FDIC deposit insurance expense

129

 

 

 

 

FHLB prepayment penalty

-

 

 

 

 

Other expenses

1,896

 

 

 

 

Total Non-interest Expense

10,114

 

 

 

 

 

 

 

 

 

 

PRETAX INCOME

2,243

 

 

 

 

Income tax expense

678

 

 

 

 

NET INCOME

1,565

 

 

 

 

Preferred stock dividends

263

 

 

 

 

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS


$1,302

 

 

 

 


2011

 

1QTR

2QTR

3QTR

4QTR

YEAR

INTEREST INCOME

 

 

 

 

TO DATE

Interest and fees on loans

$9,083

$8,804

$8,888

$8,924

$35,699

Total investment portfolio

1,513

1,726

1,604

1,422

6,265

Total Interest Income

10,596

10,530

10,492

10,346

41,964

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

Deposits

2,294

2,106

2,038

1,897

8,335

All borrowings

336

338

336

336

1,346

Total Interest Expense

2,630

2,444

2,374

2,233

9,681

 

 

 

 

 

 

NET INTEREST INCOME

7,966

8,086

8,118

8,113

32,283

Provision (credit) for loan losses

(600)

(1,175)

(550)

(1,250)

(3,575)

NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES


8,566


9,261


8,668


9,363


35,858

 

 

 

 

 

 

NON-INTEREST INCOME

 

 

 

 

 

Trust fees

1,556

1,617

1,570

1,430

6,173

Investment advisory fees

198

198

172

186

754

Net realized gains (losses) on investment securities

(358)

-

-

-

(358)

Net realized gains on loans held for sale

262

155

186

209

812

Service charges on deposit accounts

472

549

640

580

2,241

Bank owned life insurance

216

218

227

224

885

Other income

759

717

729

857

3,062

Total Non-interest Income

3,105

3,454

3,524

3,486

13,569

 

 

 

 

 

 

NON-INTEREST EXPENSE

 

 

 

 

 

Salaries and employee benefits

5,500

5,574

5,702

5,840

22,616

Net occupancy expense

757

742

680

721

2,900

Equipment expense

429

411

435

411

1,686

Professional fees

980

911

983

1,001

3,875

FDIC deposit insurance expense

462

460

262

154

1,338

FHLB prepayment penalty

-

-

-

240

240

Other expenses

1,791

1,779

1,820

1,992

7,382

Total Non-interest Expense

9,919

9,877

9,882

10,359

40,037

 

 

 

 

 

 

PRETAX INCOME

1,752

2,838

2,310

2,490

9,390

Income tax expense

489

900

744

720

2,853

NET INCOME

1,263

1,938

1,566

1,770

6,537

Preferred stock dividends and accretion of

   preferred stock discount


290


290


539


265


1,384

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS


$973


$1,648


$1,027


$1,505


$5,153


AMERISERV FINANCIAL, INC.

Nasdaq: ASRV

Average Balance Sheet Data (In thousands)

(Unaudited)


2012

2011

 

 

 

 

 

 

1QTR

 

1QTR

 

Interest earning assets:

 

 

 

 

Loans and loans held for sale, net of unearned Income

$666,575

 

$661,061

 

Deposits with banks

4,027

 

1,786

 

Short-term investment in money market funds

5,168

 

3,855

 

Federal funds sold

-

 

14,178

 

Total investment securities

194,576

 

188,537

 

 

 

 

 

 

Total interest earning assets

870,346

 

869,417

 

 

 

 

 

 

Non-interest earning assets:

 

 

 

 

Cash and due from banks

17,163

 

15,555

 

Premises and equipment

10,826

 

10,483

 

Other assets

82,302

 

79,615

 

Allowance for loan losses

(14,486)

 

(19,834)

 

 

 

 

 

 

Total assets

$966,151

 

$955,236

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

Interest bearing deposits:

 

 

 

 

Interest bearing demand

$56,346

 

$55,092

 

Savings

83,678

 

78,545

 

Money market

202,156

 

185,933

 

Other time

327,680

 

360,137

 

Total interest bearing deposits

669,860

 

679,707

 

Borrowings:

 

 

 

 

Federal funds purchased, securities sold under

    agreements to repurchase, and other short-

    term borrowings



4,233

 



424

 

Advanced from Federal Home Loan Bank

8,493

 

9,743

 

Guaranteed junior subordinated deferrable interest

    debentures


13,085

 


13,085

 

Total interest bearing liabilities

695,671

 

702,959

 

 

 

 

 

 

Non-interest bearing liabilities:

 

 

 

 

  Demand deposits

142,106

 

133,049

 

  Other liabilities

16,067

 

11,859

 

Shareholders’ equity

112,307

 

107,369

 

Total liabilities and shareholders’ equity

$966,151

 

$955,236