AmeriServ Financial Reports Q3 Non-cash Goodwill Impairment Charge

(RTTNews) - AmeriServ Financial Inc. (ASRV) announced that the company expects to record a third-quarter non-cash goodwill impairment charge of approximately $675 thousand related to West Chester Capital Advisors, its registered investment advisor subsidiary. The company said its third-quarter financial results will also include approximately $150 thousand of non-recurring expenses related to a profitability improvement project.

The company said West Chester Capital Advisors is well integrated into its wealth management businesses and is expected to improve its earnings power with new business development in future periods.

AmeriServ said the maximum amount of the one-time charge related to its recently offered early retirement incentive program would be approximately $550 thousand in the fourth quarter of 2014 if all 46 eligible employees elect to participate in the early retirement incentive program.

AmeriServ engaged a consulting firm that specializes in the areas of expense rationalization and profit improvement for community banks. The firm provided the company with recommendations to reduce expenses and improve future profitability. The company said it will evaluate and prioritize these recommendations for implementation beginning in the fourth quarter of 2014 and continuing into 2015.