Our analysis is based on comparing AmeriServ Financial, Inc. with the following peers – DNB Financial Corporation, Bryn Mawr Bank Corporation, First Commonwealth Financial Corporation, S&T Bancorp, Inc., CNB Financial Corporation, Peoples Financial Services Corp., Fulton Financial Corporation, F.N.B. Corporation, Emclaire Financial Corp. and American Bank Incorporated (DNBF-US, BMTC-US, FCF-US, STBA-US, CCNE-US, PFIS-US, FULT-US, FNB-US, EMCF-US and AMBK-US).
AmeriServ Financial, Inc.’s dividend yield is 1.36 percent and its dividend payout is 21.00 percent. This compares to a peer average dividend yield of 2.73 percent and a payout level of 42.71 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 67 out of a possible score of 100 looks sustainable.
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), ASRV-US paid a medium quality dividend, which represents a yield of 1.36% at the current price.
- Dividends were paid for 4 of the last five years — all of them were also of medium quality.
- The ending cash balance, with a dividend coverage of 26.57x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to March 31, 2017), ASRV-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 6.22x), investing cash flow (coverage of -25.81x), issuance cash flow (coverage of 5.32x) and twelve-month prior cash (coverage of 19.12x), for a total dividend coverage of 1x.
ASRV-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -40.69x) and net share buybacks (coverage of -22.22x). Thus, the total coverage including share buybacks is 49.79x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||0||0.99||1.28||1.25||1.35||1.36|
|Dividend Payout (%)||0||11.54||26.67||12.9||41.67||21|
A complete list of metrics and analysis is available on the company page.
AmeriServ Financial, Inc. operates as a bank holding company, which provides consumer, mortgage and commercial financial products and services through its subsidiary. Its principal activities consist of owning and operating subsidiaries, such as AmeriServ Financial Bank, AmeriServ Trust & Financial Services Co. and AmeriServ Life Insurance. The company operates through the following business segments: Retail Banking, Commercial Banking, Trust and Investment/Parent. The Retail Banking segment includes the deposit-gathering branch franchise, lending to both individuals and small businesses, and financial services. The Commercial Banking segment includes business lending, commercial loans, and commercial real-estate loans. The Trust segment contains its wealth management businesses, which include the trust company and West Chester Capital Advisors, its registered investment advisory firm. The Investment/Parent segment includes the net results of investment securities and borrowing activities, general corporate expenses not allocated to the business segments, interest expense on guaranteed junior subordinated deferrable interest debentures, and centralized interest rate risk management. AmeriServ Financial was founded in January 1983 and is headquartered in Johnstown, PA.
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