AmeriServ Financial(ASRV) - 2023 Q4 - Annual Report

Financial Performance - Net income for 2023 was a loss of $3,346 thousand, contrasting with a net income of$7,448 thousand in 2022, reflecting a decline of approximately 144.9%[249] - Total revenue for the company reached $990,766 thousand, an increase from$983,185 thousand, reflecting a growth of approximately 0.6%[425] - The total comprehensive income for 2023 was a loss of $802 thousand, an improvement from a loss of$8,560 thousand in 2022, indicating a positive trend[255] - The company reported a net loss of $3.346 million in 2023, compared to a net income of$7.448 million in 2022, representing a significant decline[324] Assets and Liabilities - Total assets increased to $1,389,638 thousand in 2023 from$1,363,874 thousand in 2022, representing a growth of approximately 1.9%[247] - Total liabilities increased to $1,287,361 thousand in 2023 from$1,257,696 thousand in 2022, an increase of about 2.4%[247] - Total shareholders' equity decreased to $102,277 thousand in 2023 from$106,178 thousand in 2022, a reduction of about 3.4%[258] - Cash and cash equivalents at the end of 2023 were $14,027 thousand, down from$22,962 thousand at the end of 2022, a decrease of about 38.5%[261] Income and Expenses - Net interest income after provision for credit losses decreased to $28,591 thousand in 2023 from$40,513 thousand in 2022, a decline of about 29.4%[249] - Total interest income rose to $60,860 thousand in 2023, up from$49,058 thousand in 2022, marking an increase of approximately 24.0%[249] - Non-interest income totaled $16,389 thousand in 2023, slightly down from$16,692 thousand in 2022, a decrease of about 1.8%[249] - The company made total interest payments of $21.771 million in 2023, an increase from$8.450 million in 2022[328] Credit Losses and Provisions - Provision for credit losses significantly increased to $7,429 thousand in 2023 compared to$50 thousand in 2022, indicating a substantial rise in credit risk management[249] - The allowance for credit losses rose to $15,053 thousand in 2023 from$10,743 thousand in 2022, an increase of approximately 40.0%[247] - The total allowance for credit losses at December 31, 2023, was $15.053 million, up from$10.743 million at December 31, 2022[397] - The company recorded a provision for credit losses of $6.6 million in 2023, a significant increase from$50,000 in 2022 and $1.1 million in 2021[392] Loan Portfolio and Charge-offs - The loan portfolio totaled$1,038,271,000 as of December 31, 2023, with significant segments including $89,147,000 in owner-occupied commercial real estate and$174,670,000 in residential mortgages[385] - Net loan charge-offs for 2023 were approximately $3.5 million, representing 0.35$1.7 million or 0.17% in 2022[392] - The total outstanding balance for commercial real estate (non-owner occupied) reached $450,744,000, with special mention loans at$11,015,000[419] - Total gross charge-offs for the current period amounted to $804,000, with a significant increase from previous periods[416] Investment Securities - The total investment securities available for sale amounted to$184.018 million, with a fair value of $165.711 million as of December 31, 2023[368] - The total investment securities held to maturity was$63.979 million, with a fair value of $58.621 million as of December 31, 2023[369] - The Company realized$5,000 in gross investment security gains and $927,000 in gross investment security losses for 2023, resulting in a net realized loss of$729,000 after an income tax benefit of $193,000[365] - The fair value of U.S. Agency mortgage-backed securities was$93.075 million as of December 31, 2023, down from $104.820 million in the previous year[360] Dividends and Shareholder Returns - Cash dividends declared increased to$0.120 per share in 2023 from $0.115 per share in 2022, a rise of about 4.3$2,058 thousand in 2023, compared to $1,967 thousand in 2022, marking an increase of approximately 4.6$5.2 million at December 31, 2022 to $12.4 million at December 31, 2023, primarily due to the transfer of a commercial real estate loan into non-accrual status[405] - Total non-performing assets included$12,167,000 as of December 31, 2023, with $9,140,000 classified as non-accrual loans[404] - The allowance for credit losses coverage ratio of non-performing assets was 121$1.2 million increase to the allowance for credit losses on the loan portfolio and a $177,000 increase for unfunded commitments[348] - The company recorded a cumulative effect decrease to retained earnings of$1.2 million, net of tax, due to the adoption of ASU 2016-13[345]