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AmeriServ Financial(ASRV) - 2024 Q2 - Quarterly Results
ASRVAmeriServ Financial(ASRV)2024-07-16 12:40

Financial Performance - AmeriServ Financial reported a net loss of 375,000,or375,000, or 0.02 per diluted share for Q2 2024, compared to a net loss of 187,000,or187,000, or 0.01 per diluted share in Q2 2023[1]. - For the first six months of 2024, net income increased by 15.1% to 1,529,000,or1,529,000, or 0.09 per diluted share, compared to 1,328,000,or1,328,000, or 0.08 per diluted share in the same period of 2023[1]. - Net income for the first half of 2024 was 1.529million,withareturnonaverageassetsof0.221.529 million, with a return on average assets of 0.22%[22]. - Net income for Q1 2024 was 1,904 thousand, a significant improvement from a net loss of 375thousandinQ12023[29].−Netincomeforthequarterwas375 thousand in Q1 2023[29]. - Net income for the quarter was 1,904 thousand, compared to 1,515thousandinthesamequarterlastyear,reflectingayear−over−yearincreaseof25.71,515 thousand in the same quarter last year, reflecting a year-over-year increase of 25.7%[35]. - Year-to-date net income for 2024 stands at 1,328 million, with a loss of 187millionreportedinthesecondquarter[40].IncomeandExpenses−Totalnon−interestincomeforQ22024increasedby187 million reported in the second quarter[40]. Income and Expenses - Total non-interest income for Q2 2024 increased by 510,000, or 13.2%, compared to Q2 2023, while it declined by 50,000,or0.550,000, or 0.5%, for the first half of 2024[13]. - The company's net interest income decreased by 235,000, or 2.6%, in Q2 2024, and by 1.0million,or5.41.0 million, or 5.4%, for the first six months compared to the same periods in 2023[3]. - Total non-interest expense increased by 120,000, or 0.9%, in Q2 2024 compared to Q2 2023, and by 21,000,or0.121,000, or 0.1%, in the first half of 2024 compared to the first half of 2023[14]. - Professional fees related to activist investor costs were 1.3 million in Q2 2024, down from 1.1millioninQ22023[15].−Totalnon−interestincometotaled1.1 million in Q2 2023[15]. - Total non-interest income totaled 4,947 thousand in Q1 2024, a decrease from 5,507thousandinQ12023,indicatingadeclineof10.25,507 thousand in Q1 2023, indicating a decline of 10.2%[29]. - Total non-interest expense was 11,864 thousand in Q1 2024, compared to 11,963thousandinQ12023,showingaslightdecreaseof0.811,963 thousand in Q1 2023, showing a slight decrease of 0.8%[29]. Loans and Credit Losses - Total average loans increased by approximately 43.5 million, or 4.4%, in the first half of 2024, averaging 1.030billion[4].−TheprovisionforcreditlossesinQ22024was1.030 billion[4]. - The provision for credit losses in Q2 2024 was 434,000, compared to 43,000inQ22023,indicatinganincreaseinexpenseof43,000 in Q2 2023, indicating an increase in expense of 391,000[10]. - The allowance for loan credit losses at June 30, 2024, was 2.4million,or19.62.4 million, or 19.6%, higher than the allowance at June 30, 2023, reflecting a strengthening of reserves[12]. - The allowance for credit losses on loans increased to 15,053 thousand in Q4 2023 from 12,313thousandinQ32023,ariseof22.312,313 thousand in Q3 2023, a rise of 22.3%[26]. - Non-performing assets totaled 12.817 million as of June 30, 2024[25]. Assets and Equity - Total assets were 1.4billion,withshareholders′equityof1.4 billion, with shareholders' equity of 103.7 million and a book value of 6.28percommonshareasofJune30,2024[17].−Totalassetsreached6.28 per common share as of June 30, 2024[17]. - Total assets reached 1,390,103 thousand, a slight increase from 1,346,794thousandyear−over−year,indicatingagrowthofabout3.21,346,794 thousand year-over-year, indicating a growth of about 3.2%[33]. - Total liabilities and shareholders' equity stood at 1,390,103 thousand, consistent with total assets, maintaining a balanced financial position[33]. - Shareholders' equity increased to 102,677thousandfrom102,677 thousand from 104,913 thousand, reflecting a decrease of about 2.4% year-over-year[33]. - The tangible common equity ratio decreased to 6.44% in Q4 2023 from 6.50% in Q3 2023[26]. Dividends and Stock Repurchase - The Company repurchased 628,003 shares of common stock at a price of 2.38,whichwasaccretivetoshareholders[17].−Thecompanydeclaredcommonstockcashdividendstotaling2.38, which was accretive to shareholders[17]. - The company declared common stock cash dividends totaling 1,029 thousand during the quarter, consistent with prior periods[35]. Efficiency and Ratios - The efficiency ratio for Q2 2024 was 100.33, compared to 86.60 in Q1 2024[22]. - The return on average tangible common equity for the first quarter was 8.67%, a significant improvement from (1.70)% in the previous quarter[37]. - The return on average tangible common equity (annualized) was reported at 6.73%, reflecting a decrease of 0.82%[41]. Other Financial Metrics - Total deposits grew by 12.0million,or1.012.0 million, or 1.0%, since December 31, 2023, reflecting customer loyalty and confidence[7]. - Total interest expense increased by 1.9 million, or 32.3%, in Q2 2024, and by 4.3million,or39.74.3 million, or 39.7%, for the first six months compared to the same periods in 2023[8]. - Total health care cost was 422,000, or 22.0%, lower compared to last year due to effective negotiations with the health care provider[14]. - The market value per common share increased to 3.24inQ42023from3.24 in Q4 2023 from 2.65 in Q3 2023, reflecting a growth of 22.3%[26]. - The market value adjustment for interest rate hedge showed a positive adjustment of $630 thousand, indicating effective risk management strategies[35].