Ameriserv Financial (ASRVP) has reported 16.30 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $1.15 million in the quarter, compared with $1.37 million for the same period last year.
Revenue during the quarter went up marginally by 1.19 percent to $12.08 million from $11.94 million in the previous year period. Net interest income for the quarter dropped 0.09 percent over the prior year period to $8.58 million. Non-interest income for the quarter fell 1.30 percent over the last year period to $3.80 million.
Ameriserv Financial has made provision of $0.30 million for loan losses during the quarter, down 40 percent from $0.50 million in the same period last year.
Net interest margin contracted 12 basis points to 3.18 percent in the quarter from 3.30 percent in the last year period. Efficiency ratio for the quarter deteriorated to 84.82 percent from 81.69 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
Jeffrey A. Stopko, president and chief executive officer, commented on the 2016 financial results and common stock repurchase program: “AmeriServ Financial, Inc. enters 2017 with improving earnings momentum and a strong balance sheet evidenced by good capital levels, deep liquidity, and excellent asset quality. The announcement of this new common stock repurchase program reflects our belief that the current ASRV stock price does not fully reflect the value of some of the key strategic initiatives that we accomplished in 2016 which included: the pay-off of $21 million of Small Business Lending Fund SBLF preferred stock, an increase in our common stock cash dividend, and continued solid growth in our community banking business. Accordingly, we believe that the return of capital to our shareholders through a common stock buyback program is an appropriate capital management strategy at this time."
Return on average assets moved down 9 basis points to 0.40 percent in the quarter from 0.49 percent in the last year period. At the same time, return on average equity increased 228 basis points to 4.58 percent in the quarter from 2.30 percent in the last year period.
Book value per share was $5.05 for the quarter, down 2.70 percent or $0.14 compared to $5.19 for the same period last year.
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