AmeriServ Financial Inc. in Johnstown, Pa., said that its second-quarter earnings increased by more than 300%, to $1.9 million, from the same period last year because it did not have to set aside any funds for loan losses.
The $955 million-asset company said its loan-loss provision for the quarter was a negative $1.17 million, compared to a provision of $1.2 million in last year's second quarter. Total nonperforming loans fell by 48%, to $7.4 million.
AmeriServ also said that its “largest positive item” through the first six months of 2011 was a 12% increase in its trust and investment advisory fees year over year. However, overall noninterest income declined during the same period because of a $358,000 loss from a selling securities and a $62,000 decline in its deposit service charges due the Dodd-Frank Act.
The company said it has since repositioned its investments by replacing some of the lower- yielding, longer-term securities with shorter-term, high-yielding securities.
For the six months that ended June 30, AmeriServ earned $3.2 million, compared to a $441,000 net loss in the same period last year.