AmeriServ Financial, Inc. (ASRV) reported net income available to common shareholders of $1,150,000, or $0.06 per diluted common share, in the fourth quarter of 2016. This earnings performance was lower than the fourth quarter of 2015 where net income available to common shareholders totaled $1,321,000, or $0.07 per diluted common share. For the year ended December 31, 2016, the Company reported net income available to common shareholders of $2,295,000, or $0.12 per diluted share. This represented a decrease in earnings per share from the full year 2015 where net income available to common shareholders totaled $5,787,000, or $0.31 per diluted common share, due largely to an increased provision for loan losses that was recorded in the first quarter of 2016. The following table highlights the Company's financial performance for both the quarters and years ended December 31, 2016 and 2015:
Fourth Quarter
2016
Fourth Quarter
2015
Year Ended
December 31, 2016
Year Ended
December 31, 2015
Net income
$1,150,000
$1,374,000
$2,310,000
$5,997,000
Net income available to
common shareholders
$1,150,000
$1,321,000
$2,295,000
$5,787,000
Diluted earnings per share
$ 0.06
$ 0.07
$ 0.12
$ 0.31
Additionally, the Company's Board of Directors approved a new common stock repurchase program which calls for AmeriServ Financial, Inc. to buy back up to 5%, or approximately 945,000 shares, of its outstanding common stock during the next 18 months. The authorized repurchases will be made from time to time in either the open market or through privately negotiated transactions. The timing, volume and nature of share repurchases will be at the sole discretion of management, dependent on market conditions, applicable securities laws, and other factors, and may be suspended or discontinued at any time. No assurance can be given that any particular amount of common stock will be repurchased. This repurchase program may be modified, extended or terminated by the Board of Directors at any time. As of December 31, 2016, the Company had approximately 18.9 million shares of its common stock outstanding.
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."
