AmeriServ Financial Q2 net income $1,708,000
This earnings performance was a $289,000, or 20.4%, increase from the second quarter of 2020 when net income totaled $1,419,000, or $0.08 per diluted common share.
For the six-month period ended June 30, 2021, the Company reported net income of $3,789,000, or $0.22 per diluted common share.
This represents a 29.4% increase in earnings per share from the six-month period of 2020 when net income totaled $2,828,000, or $0.17 per diluted common share.
The Company's net interest income in the second quarter of 2021 increased by $394,000, or 4.2%, from the prior year's second quarter and, for the first six months of 2021, increased by $1.3 million, or 7.3%, when compared to the first six months of 2020.
The Company's net interest margin of 3.13% for the second quarter of 2021 and 3.18% for the six-month timeframe was 17 basis points lower for the quarter and was 8 basis points lower for the six-month period.
Financial results were indicative of the Company's effective execution of strategies as a solid economic recovery is underway in our core markets and we work to meet the challenges of the current low interest rate environment.
The economy continued to demonstrate improvement during the second quarter as the COVID-19 vaccine was more widely distributed and some businesses began to operate at full capacity while consumers also experienced more normalcy as social restrictions dissipate.
The Company continued to experience robust balance sheet growth as both total loans and total deposits again reached new record levels due to business development efforts and the impact from the government stimulus programs.
Total deposit volumes were also positively impacted from the previously disclosed Somerset County branch acquisition which the Company successfully completed in May 2021.
Net interest income improved as fee income from PPP loan forgiveness and new fee income from the most recently completed second round of this program, that was implemented earlier in 2021, more than offset net interest margin pressure from the low interest rate environment. The low interest rate environment is also positively impacting deposit and borrowings interest expense cost.
Overall, total interest expense decreased significantly more than the decrease in total interest income, resulting in net interest income increasing for both the second quarter and year to date time periods of 2021, compared to last year.
Overall, the increase to net interest income, a higher level of non-interest income, and a reduced loan loss provision more than offset a higher level of non-interest expense resulting in an improved earnings performance for the second quarter and first six months of 2021. ■