Ameriserv Financial Inc's Business Segments
Ameriserv Financial Inc's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Revenue Share by Reportable Segment - FY
- Asset Management136.8%
- Financial Service Other5.9%
- Deposit Account3.6%
Revenue by Reportable Segment - FY
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Asset Management1 | $ 6 | 36.8% |
| Financial Service Other | $ 1 | 5.9% |
| Deposit Account | $ 1 | 3.6% |
Annual Results
Revenue Share by Reportable Segment - FY
- Asset Management136.8%
- Financial Service Other5.9%
- Deposit Account3.6%
Revenue by Reportable Segment - FY
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Asset Management1 | $ 6 | 36.8% |
| Financial Service Other | $ 1 | 5.9% |
| Deposit Account | $ 1 | 3.6% |
Description of Ameriserv Financial Inc
AmeriServ Financial, Inc. (the Company) is a bank holding company organized under the Pennsylvania Business Corporation Law. The Company became a holding company upon acquiring all of the outstanding shares of AmeriServ Financial Bank (the Bank) in January 1983. The Company’s other wholly owned subsidiaries include AmeriServ Trust and Financial Services Company (the Trust Company), formed in October 1992, and AmeriServ Life Insurance Company (AmeriServ Life), formed in October 1987. When used in this report, the “Company” may refer to AmeriServ Financial, Inc. individually or AmeriServ Financial, Inc. and its direct and indirect subsidiaries.
The Company’s principal activities consist of owning and operating its three wholly owned subsidiary entities.
As a bank holding company, the Company is subject to supervision and regular
examination by the Federal Reserve Bank of Philadelphia and the Pennsylvania
Department of Banking and Securities (the PDB). The Company is also under the
jurisdiction of the Securities and Exchange Commission (the SEC) for matters
relating to registered offerings and sales of its securities under the Securities
Act of 1933, as amended, and the disclosure and regulatory requirements of the
Securities Exchange Act of 1934, as amended. The Company’s common stock
is listed on the NASDAQ Stock Market under the trading symbol “ASRV,”
and the Company is subject to the NASDAQ rules applicable to listed companies.
The Bank is a state bank chartered under the Pennsylvania Banking Code of 1965, as amended (the Banking Code). Through 17 locations in Allegheny, Cambria, Centre, Somerset, and Westmoreland counties, Pennsylvania, the Bank conducts a general banking business. It is a full-service bank offering (i) retail banking services, such as demand, savings and time deposits, checking accounts, money market accounts, secured and unsecured consumer loans, mortgage loans, safe deposit boxes, holiday club accounts, money orders, and traveler’s checks; and (ii) lending, depository and related financial services to commercial, industrial, financial, and governmental customers, such as commercial real estate mortgage loans (CRE), short and medium-term loans, revolving credit arrangements, lines of credit, inventory and accounts receivable financing, real estate-construction loans, business savings accounts, certificates of deposit, wire transfers, night depository, and lock box services. The Bank also operates 19 automated bank teller machines (ATMs) through its 24-hour banking network that is linked with NYCE, a regional ATM network, and CIRRUS, a national ATM network. West Chester Capital Advisors (WCCA), a SEC registered investment advisor, is also a subsidiary of the Bank. The Company also operates loan production offices (LPOs) in Monroeville and Altoona in Pennsylvania, Hagerstown in Maryland and Harrisonburg in Virginia.
This category includes credit extensions to commercial and industrial borrowers. Business assets, including accounts receivable, inventory and/or equipment, typically secure these credits. In appropriate instances, extensions of credit in this category are subject to collateral advance formulas. Balance sheet strength and profitability are considered when analyzing these credits, with special attention given to historical, current and prospective sources of cash flow, and the ability of the customer to sustain cash flow at acceptable levels. The Bank’s policy permits flexibility in determining acceptable debt service coverage ratios, with a minimum level of 1.1 to 1x desired. Personal guarantees are frequently required; however, as the financial strength of the borrower increases, the Bank’s ability to obtain personal guarantees decreases. In addition to economic risk, this category is impacted by the strength of the borrower’s management, industry risk and portfolio concentration risk each of which are also monitored and considered during the underwriting process.
This category includes various types of loans, including acquisition and construction of investment property, owner-occupied property and operating property. Maximum term, minimum cash flow coverage, leasing requirements, maximum amortization and maximum loan to value ratios are controlled by the Bank’s credit policy and follow industry guidelines and norms, and regulatory limitations. Personal guarantees are normally required during the construction phase on construction credits and are frequently obtained on mid to smaller CRE loans. In addition to economic risk, this category is subject to geographic and portfolio concentration risk, each of which are monitored and considered in underwriting.
1. Commercial Loans
Description:
Ameriserv Financial Inc. offers commercial loans that cater to the credit needs of commercial and industrial borrowers. These loans are typically secured by business assets such as accounts receivable, inventory, and equipment. For certain transactions, collateral advance formulas may be applicable, allowing for flexibility in loan amounts based on the value of the collateral.
Underwriting & Analysis:
The underwriting process is rigorous, focusing on several critical factors including the balance sheet strength, profitability, and historical as well as prospective sources of cash flow. A significant emphasis is placed on the ability of the borrower to maintain sustainable cash flow at acceptable levels. The bank maintains a policy where debt service coverage ratios can be flexible, typically setting a minimum requirement of 1.1 to 1.0.
Risk Considerations:
In addition to assessing economic risks, the underwriting process incorporates evaluations of the borrowers management strength, industry risk, and portfolio concentration risk. Personal guarantees are often required, except in instances where the financial standing of the borrower is robust enough to mitigate that need.
Commercial Loans Secured by Real Estate
Description:
These loans are focused on providing funding for the acquisition and construction of various real estate properties, which can include investment properties, owner-occupied properties, and operating properties.
Credit Policy & Requirements:
The maximum loan term, minimum cash flow coverage, leasing requirements, maximum amortization periods, and loan-to-value ratios for these loans are dictated by the bank’s credit policy, which adheres to industry guidelines and regulatory requirements.
Personal Guarantees
Typically, personal guarantees are required for loans in the construction phase, and frequently also for mid to smaller commercial real estate loans.
Risk Considerations:
This category is subject to various risks including economic risk, geographic concentration risk, and portfolio concentration risk, which are all monitored during the loan underwriting process.
Residential Real Estate – Mortgages
Description:
Ameriserv Financial provides mortgages secured by residential properties, making home financing an accessible option for individuals and families.
Underwriting Standards:
The underwriting procedures adhere to the standards set by Freddie Mac and Fannie Mae, with exceptions for Community Reinvestment Act (CRA) loans, which may have more lenient criteria.
Risk Considerations:
The primary concern in this segment is associated with economic trends that can elevate unemployment rates, potentially leading to increased payment defaults. Notably, the institution commits to responsible lending practices and does not engage in subprime residential mortgage lending.
Consumer Loans
Description:
This category encompasses various forms of consumer loans, including installment loans and revolving credit plans that facilitate individual borrowing needs.
Underwriting Standards:
The underwriting process aligns with established industry norms and guidelines to ensure responsible lending practices.
Risk Considerations:
The major risk in this area arises from broader economic downturns, which can affect the repayment ability of consumers.
Conclusion
Ameriserv Financial, Inc. prides itself on providing a diverse range of financial products and services tailored to the needs of its customers. By focusing on thorough underwriting processes and considering various risk factors, the institution aims to make sound lending decisions while catering effectively to both commercial and retail banking sectors.