SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Act of 1934

Date of Report (Date of earliest event reported) January 21, 2014

AMERISERV FINANCIAL, Inc.

(exact name of registrant as specified in its charter)

Pennsylvania        0-11204        25-1424278

(State or other     (commission    (I.R.S. Employer

jurisdiction        File Number)   Identification No.)

of Incorporation)

Main and Franklin Streets, Johnstown, Pa.  15901

(address or principal executive offices)   (Zip Code)

Registrant's telephone number, including area code: 814-533-5300

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to

simultaneously satisfy the filing obligation of the registrant under

any of the following provisions:

( ) Written communications pursuant to Rule 425 under the Securities

Act (17 CFR 230.425)

( ) Soliciting material pursuant to Rule 14a-12 under the Exchange

Act (17 CFR 240.14a-12)

( ) Pre-commencement communications pursuant to Rule 14d-2(b) under the

Exchange Act (17 CFR 240.14d-2(b))

( ) Pre-commencement communications pursuant to Rule 13e-4(c) under the

Exchange Act (17 CFR 240.13e-4c))

Form 8-K

Item 2.02 Results of operation and financial condition.

AMERISERV FINANCIAL Inc. (the "Registrant") announced fourth quarter and full year 2013 results through December 31, 2013.  For a more detailed description of the announcement see the press release attached as Exhibit #99.1.  

Item 8.01

Other Events.

The Company also announced that its Board of Directors had declared a cash dividend of $0.01 per share, payable on February 18, 2014 to shareholders of record on February 3, 2014.  

Exhibits

--------

Exhibit 99.1

Press release dated January 21, 2014, announcing the fourth quarter and full year 2013 results through December 31, 2013. The Company also announced that its Board of Directors had declared a cash dividend of $0.01 per share, payable on February 18, 2014 to shareholders of record on February 3, 2014.  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AMERISERV FINANCIAL, Inc.

By /s/Jeffrey A. Stopko

Jeffrey A. Stopko

Executive Vice President

& CFO

Date: January 21, 2014

Exhibit 99.1

AMERISERV FINANCIAL REPORTS EARNINGS FOR THE FOURTH QUARTER AND FULL YEAR OF 2013 AND DECLARES QUARTERLY COMMON STOCK DIVIDEND   

JOHNSTOWN, PA – AmeriServ Financial, Inc. (NASDAQ: ASRV) reported fourth quarter 2013 net income available to common shareholders of $1,789,000 or $0.09 per diluted common share.  This represented a 125% increase in earnings per share from the fourth quarter of 2012 where net income available to common shareholders totaled $683,000 or $0.04 per diluted common share.  For the year ended December 31, 2013, the Company reported net income available to common shareholders of $4,984,000 or $0.26 per diluted common share.  This represented a 23.8% increase in earnings per share from the full year 2012 where net income available to common shareholders totaled $4,211,000 or $0.21 per diluted common share.  The following table highlights the Company’s financial performance for both the quarters and years ended December 31, 2013 and 2012:  

Glenn L. Wilson, President and Chief Executive Officer, commented on the 2013 financial results: “I was pleased that AmeriServ Financial finished 2013 with a strong fourth quarter that demonstrated both increased revenue and improved asset quality.  This performance contributed to 23.8% earnings per share growth and 5.7% tangible book value per share growth during the full year of 2013.  Specifically, an increase in net interest income resulted from continued strong growth of our loan portfolio, as total loans grew by $55 million, or 7.5%, during the past year.  Non-interest income also increased by $801,000 or 5.4% between years, due largely to fee growth within our trust and wealth management businesses as a result of increased assets under management.  Finally, we ended 2013 with excellent asset quality as our non-performing assets are only 0.52% of total loans and our allowance for loan losses provided 327% coverage of non-performing loans, even after a negative loan loss provision during the fourth quarter. ”  

The Company’s net interest income in the fourth quarter of 2013 increased by $516,000 or 6.4% from the prior year’s fourth quarter, and for the full year 2013 increased by $658,000 or 2.0% when compared to the full year 2012.  The Company’s net interest margin of 3.56% for the full year 2013 was nine basis points lower than the net interest margin of 3.65% for the full year 2012, even though the Company did experience increased net interest margin performance during the fourth quarter of 2013 due to strong loan growth, greater loan prepayment fees and reduced premium amortization on mortgage backed securities compared to last year’s fourth quarter.  The lower net interest margin for the full year 2013 demonstrates the impact of the Federal Reserve’s low interest rate policies which has pressured community banks interest revenue. The Company has been able to mitigate this net interest margin pressure and increase net interest income by both reducing its cost of funds and growing its earning assets, particularly loans.  Specifically, these efforts have resulted in total loans averaging $746 million for the full year 2013, which is $58 million or 8.4% higher than the $689 million average for the 2012 year.  This loan growth reflects the successful results of the Company’s more intensive sales calling efforts, with an emphasis on generating commercial loans and owner occupied commercial real estate loans, which qualify as Small Business Lending Fund (SBLF) loans, particularly through its loan production offices.  As a result of this growth in SBLF qualified loans, the Company has locked in the lowest preferred dividend rate available under the program of 1% until the first quarter of 2016.  This lower rate has saved the Company $619,000 in preferred stock dividend payments in 2013 and is a key factor responsible for the previously mentioned growth in earnings per share this year.  Total interest expense for the full year 2013 also declined by $1.2 million from the 2012 year due to the Company’s proactive efforts to reduce deposit costs.  Even with this reduction in deposit costs, the Company still experienced growth in deposits which reflects the loyalty of our core deposit base and ongoing efforts to cross sell new loan customers into deposit products.  Specifically, total deposits have averaged $847 million for the full year 2013 which is a record level for the Company.  The Company is pleased that the majority of the deposit growth has occurred in non-interest bearing demand deposit accounts.     

The Company recorded a $1.0 million negative provision for loan losses in the fourth quarter of 2013 as compared to a $550,000 provision recorded in the fourth quarter of 2012.  For the full year 2013, the Company recorded a negative loan loss provision of $1.1 million compared to a $775,000 negative provision for the 2012 year.  There has been $325,000 more earnings benefit from negative loan loss provisions in 2013.  The fourth quarter 2013 negative provision largely resulted from the release of reserves due to the pay-off of the Company’s largest classified loan and a continued reduction in the level of criticized loans and non-performing assets.  At December 31, 2013, non-performing assets are at their lowest point since the financial crisis and totaled $4.1 million or 0.52% of total loans which is $3.1 million lower than they were at the end of 2012. Net loan charge-offs were also lower in the fourth quarter of 2013 as they totaled $80,000 or 0.04% of total loans compared to net charge-offs of $808,000 or 0.45% of total loans in the fourth quarter of 2012.  For the full year 2013, actual credit losses realized through net charge-offs totaled $1.4 million or 0.18% of total loans which is comparable with the full year 2012 when net charge-offs totaled $1.3 million or 0.19% of total loans.  When determining the provision for loan losses, the Company considers a number of factors some of which include periodic credit reviews, non-performing assets, loan delinquency and charge-off trends, concentrations of credit, loan volume trends and broader local and national economic trends.  In summary, the allowance for loan losses provided a strong 327% coverage of non-performing loans, and was 1.29% of total loans, at December 31, 2013, compared to 210% of non-performing loans, and 1.74% of total loans, at December 31, 2012.

Total non-interest income in the fourth quarter of 2013 decreased by only $20,000, or 0.5%, from the prior year’s fourth quarter but for the full year 2013 increased by $801,000, or 5.4%, when compared to the full year 2012.  Increased fees from our trust and wealth management businesses were basically offset by reduced revenue from our mortgage banking business to cause the fourth quarter total non-interest income to be relatively flat.  Specifically, trust and investment advisory fees increased by $181,000, or 9.7%, for the fourth quarter 2013 and $544,000, or 7.5%, for the full year 2013 due to increased assets under management which reflects both successful new business development activities and market appreciation of existing assets. After little activity in 2012, the Company did realize investment security gains of $67,000 in the fourth quarter and $204,000 for the full year of 2013 due to the sale of certain rapidly prepaying mortgage backed securities.  These positive items were partially offset by decreased revenue from residential mortgage banking activities in the second half of 2013.  Specifically, gains realized on residential mortgage loan sales into the secondary market declined by $166,000 in the fourth quarter and $43,000 for the full year 2013 due to reduced mortgage loan production, particularly refinance activity as a result of higher mortgage rates in the second half of 2013.  Finally, income from bank owned life insurance increased by $135,000 for the full year 2013 due to the receipt of a death claim payment in the second quarter.              

Total non-interest expense in the fourth quarter of 2013 increased by $373,000, or 3.6%, from the prior year’s fourth quarter and for the full year 2013 increased by $1.6 million, or 3.9%, when compared to the full year 2012.  Salaries and employee benefits increased by $27,000, or 0.4%, for the fourth quarter and $691,000, or 2.8%, for the full year due to higher salaries expense and pension expense.  Professional fees also increased by $75,000 in the fourth quarter and $457,000 for the full year due largely to higher legal costs, recruitment fees, and increases in several other professional fee categories.  FDIC insurance expense increased by $80,000 in the fourth quarter and $170,000 for the full year due largely to the bank’s increased asset size.  Also, an increase in the reserve for unfunded commitments, which is reflected in the other expense category, increased 2013 fourth quarter expense by $112,000 and full year expense by $238,000 due to increased loan approval activity.  Finally, the Company recorded an income tax expense of $2.3 million for an effective tax rate of 30.6%, for the full year 2013, which is comparable to an income tax expense of $2.2 million for an effective tax rate of 30.8%, for the 2012 year.

The Company grew its total assets during 2013 by 5.5% to $1.056 billion at year end.  Additionally, the Company had shareholders’ equity of $113 million, a book value of $4.91 per common share and a tangible book value of $4.24 per common share at December 31, 2013.  The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status with a risk based capital ratio of 15.28%, an asset leverage ratio of 11.45% and a tangible common equity to tangible assets ratio of 7.64% at December 31, 2013.

QUARTERLY COMMON STOCK DIVIDEND

The Company also announced that its Board of Directors declared a $0.01 per share quarterly common stock cash dividend.  The cash dividend is payable February 18, 2014 to shareholders of record on February 3, 2014.  This cash dividend represents a 1.3% annualized yield using the January 17, 2014 closing common stock price of $3.11 and represents an approximate payout ratio of 11% based upon the Company’s fourth quarter 2013 earnings per share of $0.09.  

This news release may contain forward-looking statements that involve risks and uncertainties, as defined in the Private Securities Litigation Reform Act of 1995, including the risks detailed in the Company's Annual Report and Form 10-K to the Securities and Exchange Commission.  Actual results may differ materially.

Nasdaq: ASRV

SUPPLEMENTAL FINANCIAL PERFORMANCE DATA

December 31, 2013

(In thousands, except per share and ratio data)

(Unaudited)

2013

2012

AMERISERV FINANCIAL, INC.

(In thousands, except per share, statistical, and ratio data)

(Unaudited)

2013

2012

NOTES:

(A)

Preferred stock of $21 million received through the Small Business Lending Fund is excluded from the book value per

common share and tangible book value per common share calculations.

        (B) Not recognized on the consolidated balance sheets.

AMERISERV FINANCIAL, INC.

CONSOLIDATED STATEMENT OF INCOME

(In thousands)

(Unaudited)

2013

2012

AMERISERV FINANCIAL, INC.

Nasdaq: ASRV

Average Balance Sheet Data (In thousands)

(Unaudited)

2013

2012