Core Insights - AmeriServ Financial, Inc. (ASRV) reported a significant increase in net income for the fourth quarter of 2025, reaching 9 cents per share, an 80% rise from 5 cents per share a year ago [1] - The company's full-year earnings for 2025 rose sharply to $5.6 million, or 34 cents per share, compared to $3.6 million, or 21 cents per share, in 2024 [3] Financial Performance - Net income for the fourth quarter stood at $1.4 million, a 62.2% increase from $0.9 million a year ago, driven by a $1.4 million (14.6%) increase in net interest income [2] - Non-interest income declined by 1.8% year over year in the fourth quarter and fell 5.5% for the full year, primarily due to decreased wealth management fees and a significant drop in mortgage banking revenue by 39.5% [5] - The company recorded a provision for credit losses of $0.7 million in the fourth quarter, down from $1.1 million in the prior year, but the full-year provision rose to $4.1 million from $0.9 million due to a large non-performing CRE loan charge-off [7] Net Interest Income and Margin - Net interest income increased by 14.6% year over year in the fourth quarter and 17.2% for the full year, with the net interest margin expanding by 35 basis points to 3.23% for the fourth quarter [4] - The increase in net interest income was supported by favorable interest rate conditions, strategic asset-liability management, and higher average balances in earning assets and deposits [4] Expense Management - Non-interest expenses rose by $1 million (8.8%) in the fourth quarter, largely due to a 74.8% increase in professional fees related to a new consulting agreement [6] - However, full-year non-interest expenses declined modestly, with professional fees down 21.5% reflecting reduced litigation and activist investor-related costs [6] Asset Quality - Asset quality metrics improved, with non-performing assets declining by 43% to $8.5 million by year-end, and non-performing loans representing 0.80% of total loans, down 59 basis points from the prior quarter [8] - The allowance for loan credit losses covered 158% of non-performing loans, indicating a strong position in managing credit risk [8] Management Outlook - CEO Jeffrey A. Stopko highlighted that the earnings improvement was driven by revenue gains and disciplined expense control, with an 11.2% rise in book value per share to $7.22 [9] - The company plans to continue strategies targeting net interest margin expansion and cost control to support ongoing earnings growth in 2026 [9] Dividends and Strategic Initiatives - AmeriServ declared a quarterly cash dividend of 3 cents per share, maintaining a payout ratio of 35.3% based on 2025 earnings, representing an annualized yield of 3.7% [11] - The company emphasized a revised consulting agreement with SB Value Partners as a strategic initiative to enhance advisory support [11]

Financial Performance - Fourth quarter 2025 net income was $1,442,000, a 62.2% increase from $889,000 in Q4 2024, resulting in diluted earnings per share of $0.09 compared to $0.05[1] - For the full year 2025, net income reached $5,612,000, representing a 61.9% increase from $3,601,000 in 2024, with diluted earnings per share rising from $0.21 to $0.34[1] - Net income for 2025 totaled $5.612 million, with a return on average assets of 0.39% and a return on average equity of 5.03%[23] - Net income for Q4 2025 was $2,544 thousand, compared to a net loss of $282 thousand in Q3 2025, marking a substantial recovery[31] - Net income for Q1 2025 was $1,908,000, with a total net income for the year reaching $5,612,000[41] - Net income for the year 2024 reached $3.601 billion, with a quarterly breakdown of $1.904 billion in Q1, $(375) million in Q2, $1.183 billion in Q3, and $889 million in Q4[42] Interest Income and Margin - Net interest income for Q4 2025 increased by $1.4 million, or 14.6%, and for the full year, it rose by $6.2 million, or 17.2%, compared to 2024[2] - The net interest margin improved by 35 basis points to 3.23% in Q4 2025 and by 34 basis points to 3.15% for the full year[2] - Net interest income for the full year 2025 was $42,263 thousand, compared to $36,048 thousand in 2024, reflecting an increase of 17.3%[31] Asset Quality - The provision for credit losses for Q4 2025 was $724,000, a decrease of 31.6% from $1.1 million in Q4 2024, while the full year provision increased to $4.1 million from $884,000 in 2024[9] - Non-performing assets decreased by $6.4 million, or 43.0%, to $8.5 million since September 30, 2025, with non-performing loans at 0.80% of total loans[10] - Non-performing assets decreased to $8.518 million by the end of Q4 2025, reflecting improved asset quality[27] Expenses - Total non-interest expense in Q4 2025 increased by $1.0 million, or 8.8%, compared to Q4 2024, but decreased by $404,000, or 0.8%, for the full year 2025 compared to 2024[14] - Professional fees rose by $670,000, or 74.8%, in Q4 2025, while for the full year, they were down by $1.0 million, or 21.5%[14] - Salaries and employee benefits increased by $283,000, or 4.0%, in Q4 2025, and by $552,000, or 1.9%, for the full year compared to 2024[14] - Total interest expense decreased by $295,000, or 3.9%, in Q4 2025 and by $1.4 million, or 4.5%, for the full year compared to 2024[7] Equity and Dividends - Total assets reached $1.45 billion, with shareholders' equity at $119.3 million and a book value of $7.22 per common share as of December 31, 2025[16] - The Company declared a quarterly cash dividend of $0.03 per share, representing a 3.7% annualized yield and a 35.3% payout ratio based on 2025 earnings[17] - Total shareholders' equity increased to $119,312,000 by December 31, 2025, up from $110,759,000 at the beginning of the year[41] - Shareholders' equity increased to $107,248 thousand in Q4 2025, compared to $108,182 thousand in Q3 2025, reflecting a slight decrease[28] Deposits and Loans - Total average loans for 2025 grew by $23.7 million, or 2.3%, but decreased by $35.4 million, or 3.3%, since December 31, 2024, due to higher payoff activity[3] - Total average deposits for 2025 increased by $67.3 million, or 5.8%, compared to 2024, reflecting successful business development efforts[6] - Total deposits reached $1,200,995 thousand in Q4 2025, up from $1,189,330 thousand in Q3 2025, an increase of 1.3%[28] Market Performance - The market value per common share was $2.68 in Q4 2025, up from $2.61 in Q3 2025, indicating a growth of 2.7%[28] - Book value per common share increased by $0.73, or 11.2%, since December 31, 2024, due to favorable adjustments in unrealized losses and improved earnings[16] - Tangible common equity ratio improved to 7.34% by the end of 2025[41] Operational Efficiency - The efficiency ratio for 2025 was 81.47%, indicating operational efficiency improvements compared to previous years[23] - Average tangible common equity for 2025 was $97,930,000, resulting in a return on average tangible common equity of 5.73%[41] - Tangible common equity ratio was 6.64% in Q4 2025, slightly down from 6.79% in Q3 2025[28]

Core Viewpoint - AmeriServ Financial, Inc. has amended its consulting agreement with SB Value Partners, L.P. to enhance their strategic partnership and expand consulting services over a four-year term [1][2]. Group 1: Agreement Details - The amended agreement builds on a previously executed consulting agreement from April 2025, reflecting a successful collaboration over the past eight months [1]. - The new agreement aims to improve efficiency and business development in AmeriServ's Trust and Wealth Management divisions [2]. Group 2: Company Overview - AmeriServ Financial Inc. operates a community bank with total assets of $1.5 billion and a book value of $6.94 per common share as of September 30, 2025 [3]. - The Wealth Management Division of AmeriServ administers customer assets totaling $2.7 billion [3]. Group 3: SB Value Partners Overview - SB Value Partners specializes in providing advisory services and FinTech investing to community financial institutions, managing over $5.9 billion in community investment portfolios [4]. - The firm has a focus on enhancing return on assets (ROA) and return on equity (ROE) for its clients [4].

Core Insights - Community banks are navigating a challenging environment characterized by changing interest rates, stricter regulations, and a focus on funding stability and credit discipline [1] - Blue Ridge Bankshares, Inc. (BRBS) and AmeriServ Financial, Inc. (ASRV) are highlighted as community-focused institutions with different operating models affecting their risk-return profiles [1][2] Company Overview - BRBS operates primarily through Blue Ridge Bank and is transitioning away from fintech activities to a more traditional community banking model [1] - ASRV is anchored by AmeriServ Financial Bank and has a long-standing wealth management and trust operation, enhancing its fee-based income alongside lending and deposits [1] Business Strategies - BRBS is simplifying its business model and strengthening governance through a bank-first strategy, while ASRV focuses on a relationship-driven approach supported by advisory and trust services [2] - Both companies are positioned to benefit from improved operating stability over time, but their risk-reward profiles differ [2] Stock Performance - Over the past three months, BRBS has underperformed with a 1.4% increase, while ASRV has risen by 9.3% [3] - In the past year, BRBS stock has increased by 28.5%, compared to ASRV's 20.2% gain [3] Valuation Metrics - BRBS has a trailing 12-month price-to-sales (P/S) ratio of 2.71X, above its three-year median of 1.14X, while ASRV's P/S ratio is 0.62X, above its median of 0.58X [4] - Both companies appear undervalued compared to the Zacks Finance sector average of 7.11X [4] Factors Supporting BRBS - BRBS's stock is bolstered by a strategic reset that reduces complexity and narrows its risk footprint, focusing on traditional community banking fundamentals [7] - The company is making progress on regulatory compliance and governance, which is expected to enhance market confidence over time [8] - Shareholder confidence is reinforced through capital deployment actions, including a special cash dividend and share repurchase program [9] Factors Supporting ASRV - ASRV benefits from a stable, relationship-driven deposit base that is largely independent of wholesale funding, allowing it to navigate rate volatility effectively [10] - The company's wealth and trust platform diversifies income and strengthens customer relationships, supported by a strategic alliance with Federated Hermes [11] - ASRV emphasizes disciplined execution and operational efficiency, which supports a consistent earnings profile [12] Investment Outlook - While both companies are positioned to benefit from improving rate dynamics, BRBS is seen as better positioned due to its strategic reset and positive momentum [13] - BRBS's valuation remains attractive compared to sector levels, suggesting potential for upside if execution continues to improve [14] - ASRV, while performing well, has seen its stock price rise above its long-term valuation norm, narrowing its margin of safety [14]

Core Insights - AmeriServ Financial Bank has formed a strategic alliance with Federated Hermes to enhance investment opportunities for its wealth management clients [1] - The partnership will allow AmeriServ's Wealth and Capital Management division to provide access to Federated Hermes' investment research, resources, and wealth management products [1] - This collaboration aims to deliver tailored financial services to meet the evolving needs of individual and institutional clients in Western Pennsylvania [1] Company Overview - AmeriServ Financial, Inc. is the parent company of AmeriServ Financial Bank, which operates 16 community offices in southwestern Pennsylvania and Hagerstown, Maryland [1] - As of September 30, 2025, AmeriServ had total assets of $1.46 billion and a book value of $6.94 per common share [1] - AmeriServ Wealth and Capital Management currently manages $2.6 billion in customer assets [1] Federated Hermes Overview - Federated Hermes, founded in 1955, manages approximately $871 billion in total assets, including over $165 billion in state treasury-related assets as of September 30, 2025 [1] - The company provides portfolio management and credit analysis, along with various services for public sector assets [1] - Federated Hermes emphasizes transparency and compliance with state statutory requirements in its operations [1]

Capital Adequacy - As of September 30, 2025, the Company maintained total capital of $152,826, representing a ratio of 12.97% to risk-weighted assets, exceeding the minimum requirement of 8.00%[136] - Common equity tier 1 capital was $111,343, with a ratio of 9.45% to risk-weighted assets, above the minimum requirement of 4.50%[136] - The Company was categorized as "well capitalized" under the regulatory framework, indicating compliance with capital adequacy guidelines[135] Interest Rate Risk Management - The Company entered into interest rate swaps with a total notional value of $70 million to hedge interest rate risk associated with floating-rate time deposit accounts[144] - For the nine months ended September 30, 2025, the Company recognized $79,000 in gains from cash flow hedges, resulting in a decrease in interest expense[147] - The notional amount of risk participation agreements outstanding was $4.9 million as of September 30, 2025[143] - The Company had $945,000 in interest income from swap assets for the nine months ended September 30, 2025[141] - The effective portion of changes in the fair value of cash flow hedges was reported in accumulated other comprehensive loss, with $5,000 estimated to be reclassified as a decrease to interest expense in the next twelve months[147] - The Company had no caps or floors outstanding as of September 30, 2025[150] - The Company’s hedging policy allows a maximum notional amount of $500 million for interest rate swaps, caps, and floors[150] Credit Losses and Commitments - The Company reported consolidated net income for the three months ended September 30, 2025, with a provision for credit losses on unfunded commitments of $28,000, compared to a recovery of $4,000 for the same period in 2024[157] - The allowance for credit losses related to unfunded commitments and standby letters of credit was $274,000 as of September 30, 2025, down from $966,000 at December 31, 2024[157] - The Company had outstanding commitments to extend credit approximating $243.9 million as of September 30, 2025, compared to $233.2 million as of December 31, 2024[155] Pension Benefits - The net periodic pension benefit for the three months ended September 30, 2025, was $(457,000), compared to $(437,000) for the same period in 2024[159] - The Company recorded a net periodic pension benefit for the nine months ended September 30, 2025, of $(1,431,000), compared to $(908,000) for the same period in 2024[159] - The Company implemented a soft freeze of its defined benefit pension plan for non-union employees hired on or after January 1, 2013, and union employees hired on or after January 1, 2014[162] - The Company recognized no settlement charge in connection with its defined benefit pension plan in the third quarter of 2025, while a charge of $34,000 was recognized in the same period of 2024[160] Fair Value Measurements - The fair value of available-for-sale securities was reported at $171,000,000 as of September 30, 2025, with various classifications including U.S. Agency and corporate bonds[174] - The Company’s total assets measured and reported at fair value as of September 30, 2025, included equity securities valued at $181,000[174] - As of September 30, 2025, the fair value of individually evaluated loans is $3,278, with no Level 1 or Level 2 inputs[178] - The fair value of other real estate owned and repossessed assets is $240 as of September 30, 2025, with a weighted average appraisal adjustment range of 15% to 59%[178] - The carrying value of investment securities held to maturity (HTM) is $67,179, with a fair value of $63,492 as of September 30, 2025[182] - Loans, net of allowance for credit losses and unearned income, have a carrying value of $1,041,275 and a fair value of $1,031,384 as of September 30, 2025[182] - Deposits with stated maturities have a carrying value of $381,639 and a fair value of $381,508 as of September 30, 2025[182] - The fair value of loans held for sale is $470 as of December 31, 2024, with a carrying value of $460[182] - The fair value of other real estate owned and repossessed assets was $1,724 as of December 31, 2024, with a weighted average appraisal adjustment range of 18% to 63%[178] - Changes in assumptions or estimation methodologies may materially affect estimated fair values[183] - The company manages market risk primarily through interest rate risk management processes[284] - Fair values for financial instruments are determined using independent third-party valuations and estimation methodologies[181]

Core Insights - AmeriServ Financial, Inc. (ASRV) shares increased by 5.6% following the earnings report for Q3 2025, outperforming the S&P 500's 0.9% change during the same period [1] - The company reported a net income of 15 cents per share, a 114% increase from 7 cents per share in the previous year, with total revenues significantly driven by net interest income [2] Financial Performance - Net interest income rose by 23.9% to $11 million compared to $8.9 million a year earlier, supported by a net interest margin increase of 56 basis points to 3.27% [3] - Total revenues were impacted by elevated credit loss provisions and a decline in non-interest income year-over-year [2][6] Management Commentary - CEO Jeffrey A. Stopko attributed the record earnings to a focus on operating leverage and disciplined balance sheet management, noting a $4.8 million increase in net interest income year-to-date [5] Credit Quality and Non-Interest Income - The company recorded a $0.4 million provision for credit losses in Q3, reversing a recovery from the previous year, while non-performing assets decreased by 8.9% to $15 million [6] - Non-interest income increased by 4.7% to $4.4 million, primarily due to bank-owned life insurance revenue [8] Capital Position and Dividends - A quarterly dividend of 3 cents per share was declared, representing a 4% annualized yield and a 36% payout ratio based on year-to-date earnings [10] - Shareholders' equity rose to $114.6 million, with book value per share increasing by 6% to $6.94 [10]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Third Quarter 2025 Performance](index=1&type=section&id=Third%20Quarter%202025%20Performance) AmeriServ Financial reported record quarterly earnings in Q3 2025, driven by significant improvements in net interest income and effective balance sheet management, leading to a substantial increase in net income and diluted EPS compared to the prior year Third Quarter Financial Performance (YoY) (in thousands) | Metric | Q3 2025 | Q3 2024 | Change ($) | Change (%) | | :--------------------- | :------------ | :------------ | :------------ | :------------ | | Net income | $2,544 | $1,183 | $1,361 | 115.0% | | Diluted earnings per share | $0.15 | $0.07 | $0.08 | 114.3% | - The increase in total revenue was primarily due to a meaningful improvement in net interest income, which represents approximately **70%** of total revenue[1](index=1&type=chunk) [Nine Months Ended September 30, 2025 Performance](index=1&type=section&id=Nine%20Months%20Ended%20September%2030,%202025%20Performance) For the first nine months of 2025, the Company achieved a significant increase in net income and diluted EPS, primarily due to a $4.8 million increase in net interest income and a favorable decline in non-interest expense, despite higher provision for credit losses Nine Months Ended September 30 Financial Performance (YoY) (in thousands) | Metric | 9M 2025 | 9M 2024 | Change ($) | Change (%) | | :--------------------- | :------------ | :------------ | :------------ | :------------ | | Net income | $4,170 | $2,712 | $1,458 | 53.8% | | Diluted earnings per share | $0.25 | $0.16 | $0.09 | 56.3% | - Net interest margin increased by **41-basis points** for the first nine months of 2025, contributing to a **$4.8 million** increase in net interest income[1](index=1&type=chunk) - Non-interest expense favorably declined for the first nine months of 2025, contributing to improved operating efficiency[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) Jeffrey A. Stopko, President and CEO, highlighted the Company's focus on generating positive operating leverage through effective balance sheet management, leading to record quarterly earnings. He emphasized continued diligence on revenue growth and expense control to enhance operating efficiency - AmeriServ Financial achieved record quarterly earnings in **Q3 2025** due to a continued focus on generating positive operating leverage[1](index=1&type=chunk) - The increase in total revenue was caused by meaningful improvement in net interest income for both the third quarter and first nine months of **2025** because of effective balance sheet management[1](index=1&type=chunk) - Management will continue to diligently focus on both revenue growth and expense control to further improve the Company's operating efficiency[1](index=1&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) [Net Interest Income and Margin](index=1&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income saw substantial growth in both the third quarter and the first nine months of 2025, driven by a significant improvement in net interest margin, effective balance sheet management, and favorable interest rate movements Net Interest Income and Margin Performance | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :----------------- | :---------- | :---------- | :---------- | :---------- | | Net Interest Income | +$2.1M (23.9%) | | +$4.8M (18.2%) | | | Net Interest Margin | 3.27% | 2.71% | 3.13% | 2.72% | | NIM Improvement | +56 bps | | +41 bps | | - The Federal Reserve's action to lower short-term interest rates during the latter portion of **2024** favorably impacted total interest-bearing deposits and borrowings costs[2](index=2&type=chunk) - Management anticipates continued net interest margin improvement through the remainder of **2025** due to effective strategy execution and the Federal Reserve's September **2025** monetary policy easing[2](index=2&type=chunk) [Loan and Investment Portfolio Performance](index=1&type=section&id=Loan%20and%20Investment%20Portfolio%20Performance) The Company experienced growth in average loans and investment securities, contributing to increased interest income. Loan fee income significantly improved, and the investment portfolio benefited from higher yields and strategic purchases Loan and Investment Portfolio Growth (YoY) | Metric | 9M 2025 Average | 9M 2024 Average | Change ($) | Change (%) | | :----------------------------------- | :-------------- | :-------------- | :------------ | :------------ | | Total average loans | $1,066.8M | $1,030.9M | $35.9M | 3.5% | | Total investment securities (Q3 avg) | $242.9M | $238.5M | $4.4M | 1.8% | | Securities portfolio (since Dec 31, 2024) | +$17.3M | | | 7.9% | Interest Income from Loans and Investments (YoY) | Metric | 9M 2025 | 9M 2024 | Change ($) | Change (%) | | :------------------------- | :------------ | :------------ | :------------ | :------------ | | Total loan interest income | +$3.0M | | | 7.2% | | Loan fee income | +$544K | | | 95.8% | | Interest income from investments (Q3) | +$388K | | | 16.1% | | Interest income from investments (9M) | +$704K | | | 9.6% | - Loan payoff activity exceeded originations in **2025**, resulting in a **$12.7 million** (**1.2%**) decrease in total loans since December **31, 2024**[3](index=3&type=chunk) [Deposit Growth and Funding Costs](index=3&type=section&id=Deposit%20Growth%20and%20Funding%20Costs) The Company achieved significant deposit growth, strengthening its liquidity and reducing reliance on borrowed funds. Interest expense decreased due to effective monetary policy easing by the Federal Reserve, leading to an improved total deposit cost Deposit and Interest Expense Performance (YoY) | Metric | 9M 2025 Average | 9M 2024 Average | Change ($) | Change (%) | | :----------------------------------- | :-------------- | :-------------- | :------------ | :------------ | | Total average deposits | +$69.5M | | | 6.0% | | Total interest expense (Q3) | -$345K | | | -4.4% | | Total interest expense (9M) | -$1.1M | | | -4.7% | | Deposit interest expense (9M) | -$22K | | | -0.1% | | Total average interest-bearing deposits (9M) | +$71.9M | | | 7.3% | | Total deposit cost (9M) | 2.07% | 2.19% | -12 bps | | - The Company's core deposit base continues to demonstrate strength and stability, and it does not utilize brokered deposits[7](index=7&type=chunk) - The loan to deposit ratio averaged **86.2%** in **Q3 2025**, indicating ample capacity for continued loan portfolio growth[7](index=7&type=chunk) - Borrowings interest expense decreased significantly due to lower utilization of overnight borrowed funds, a direct result of higher total average deposits and the Federal Reserve's **2024** monetary policy easing[9](index=9&type=chunk) [Provision for Credit Losses and Asset Quality](index=3&type=section&id=Provision%20for%20Credit%20Losses%20and%20Asset%20Quality) The Company recognized a higher provision for credit losses in both the third quarter and first nine months of 2025, primarily due to specific reserve increases and a significant charge-off. Despite this, non-performing assets decreased, and the allowance for loan credit losses provided strong coverage Provision for Credit Losses (YoY) (in thousands) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :----------------------------------- | :------------ | :------------ | :------------ | :------------ | | Provision (recovery) for credit losses | $360 | ($51) | $3,396 | ($174) | | Net unfavorable change | +$411 | | +$3,570 | | Asset Quality Metrics | Metric | Sep 30, 2025 | Change since Jun 30, 2025 | | :----------------------------------- | :------------ | :------------------------ | | Non-performing assets | $15.0M | -$1.5M (-8.9%) | | Non-performing loans as % of total loans | 1.39% | | | Net loan charge-offs (9M 2025) | $2.9M (0.37%) | | | Net loan charge-offs (9M 2024) | $488K (0.06%) | | | Allowance for loan credit losses coverage of non-performing loans | 98% | | | Allowance for loan credit losses as % of total loans | 1.36% | | - The significant increase in the nine-month provision for credit losses was related to an additional **$2.8 million** charge-off to resolve the Company's largest problem asset[10](index=10&type=chunk) [Non-Interest Income](index=3&type=section&id=Non-Interest%20Income) Non-interest income showed mixed results, increasing in the third quarter but declining year-to-date. Wealth management fees were lower due to market volatility, while BOLI revenue increased significantly, and new trading securities generated gains Non-Interest Income Performance (YoY) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------- | :------------ | :------------ | :------------ | :------------ | | Total non-interest income | +$198K (4.7%) | | -$904K (-6.7%) | | | Wealth management fees (Q3) | -$201K (-6.6%) | | | | | Wealth management fees (9M) | | | -$880K (-9.4%) | | | BOLI revenue (Q3) | +$289K | | | | | BOLI revenue (9M) | | | +$220K (26.8%) | | | Mortgage banking revenue (Q3) | -$46K (-54.1%) | | | | | Mortgage banking revenue (9M) | | | -$106K (-45.9%) | | | Gains on trading securities (Q3) | $55K | $0 | | | | Gains on trading securities (9M) | | | $90K | $0 | - The decline in wealth management fees was attributed to financial market volatility and uncertainty, particularly in early **2025**[12](index=12&type=chunk) - Other income was lower year-to-date due to a **$250,000** Visa signing bonus recognized in **Q1 2024** that did not recur in **2025**[14](index=14&type=chunk) [Non-Interest Expense](index=5&type=section&id=Non-Interest%20Expense) Total non-interest expense increased in the third quarter but decreased year-to-date, primarily due to lower professional fees following the resolution of litigation and the absence of a pension settlement charge. However, salaries and employee benefits saw an increase driven by healthcare costs and merit raises Non-Interest Expense Performance (YoY) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------- | :------------ | :------------ | :------------ | :------------ | | Total non-interest expense | +$243K (2.1%) | | -$1.4M (-3.9%) | | | Professional fees (Q3) | -$191K (-24.1%) | | | | | Professional fees (9M) | | | -$1.7M (-43.7%) | | | Other expenses (9M) | -$147K (-3.7%) | | | | | Salaries & employee benefits (9M) | +$269K (1.3%) | | | | | Health care costs (9M) | +$364K (15.1%) | | | | | Total salaries (9M) | +$411K (2.7%) | | | | | Incentive compensation (9M) | -$444K (-37.8%) | | | | - The significant decrease in professional fees for the nine months was due to the resolution of litigation and activist investor actions in **2024**[15](index=15&type=chunk) - Lower other expenses year-to-date were primarily driven by the absence of a **$410,000** pension settlement charge recognized in **2024**[15](index=15&type=chunk) [Income Tax Expense](index=5&type=section&id=Income%20Tax%20Expense) Income tax expense increased for the first nine months of 2025, with a stable effective tax rate compared to the prior year Income Tax Expense (YoY) (in thousands) | Metric | 9M 2025 | 9M 2024 | | :-------------------- | :------------ | :------------ | | Income tax expense | $948 | $611 | | Effective tax rate | 18.5% | 18.4% | [Financial Condition and Capital](index=5&type=section&id=Financial%20Condition%20and%20Capital) [Balance Sheet Overview](index=5&type=section&id=Balance%20Sheet%20Overview) As of September 30, 2025, the Company maintained a strong financial position with total assets of $1.46 billion and healthy shareholders' equity Key Financial Condition Data (September 30, 2025) | Metric | Amount | | :------------------- | :------------ | | Total assets | $1.46 billion | | Shareholders' equity | $114.6 million | [Capital Ratios and Book Value](index=5&type=section&id=Capital%20Ratios%20and%20Book%20Value) The Company continued to maintain strong capital ratios, exceeding regulatory 'well capitalized' status. Book value and tangible book value per common share increased significantly year-over-year due to favorable adjustments and improved earnings Book Value and Capital Ratios (September 30, 2025) | Metric | Amount | Change since Sep 30, 2024 | | :--------------------------- | :------------ | :------------------------ | | Book value per common share | $6.94 | +$0.39 (6.0%) | | Tangible book value per common share | $6.11 | +$0.39 (6.8%) | | Total capital (to risk weighted assets) ratio | 12.97% | | | Tangible common equity ratio | 6.97% | | - The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status as of September **30, 2025**[18](index=18&type=chunk) [Dividend Announcement](index=5&type=section&id=Dividend%20Announcement) The Board of Directors declared a quarterly common stock cash dividend of $0.03 per share, reflecting a 4.0% annualized yield and a 36% payout ratio based on year-to-date earnings Quarterly Common Stock Cash Dividend | Metric | Value | | :---------------------- | :------------ | | Dividend per share | $0.03 | | Payment Date | November 17, 2025 | | Record Date | November 3, 2025 | | Annualized Yield (Oct 17, 2025 closing price of $3.01) | 4.0% | | Payout Ratio (2025 YTD earnings) | 36% | [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains standard forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from expectations. These statements are based on management's current views and assumptions and are not guarantees of future performance - Forward-looking statements are not historical facts and include expressions about management's confidence, strategies, views, and expectations regarding programs, products, relationships, opportunities, technology, market conditions, and future payment obligations[20](index=20&type=chunk) - Actual results may differ materially due to factors such as changes in financial markets, inflation, interest rates, competition, loan and investment prepayments, credit losses, economic decline, regulatory changes, and operational risks[20](index=20&type=chunk)[21](index=21&type=chunk) - AmeriServ undertakes no responsibility to publicly update or revise any forward-looking statement[22](index=22&type=chunk) [Supplemental Financial Data](index=7&type=section&id=Supplemental%20Financial%20Data) [Performance Data](index=7&type=section&id=Performance%20Data) This section provides detailed quarterly and year-to-date performance metrics for 2025 and 2024, including net income, return on assets and equity, net interest margin, charge-offs, efficiency ratio, and earnings per common share Key Performance Data (2025 vs 2024) (in thousands) | Metric | 3QTR 2025 | 3QTR 2024 | YTD 2025 | YTD 2024 | | :----------------------------------------- | :-------- | :-------- | :------- | :------- | | Net income (loss) | $2,544 | $1,183 | $4,170 | $2,712 | | Return on average assets (annualized) | 0.70 % | 0.34 % | 0.39 % | 0.26 % | | Return on average equity (annualized) | 9.06 | 4.51 | 5.05 | 3.52 | | Net interest margin | 3.27 | 2.71 | 3.13 | 2.72 | | Net charge-offs (recoveries) as % of avg loans | (0.01) | 0.06 | 0.37 | 0.06 | | Efficiency ratio | 77.55 | 89.49 | 80.55 | 92.09 | | Diluted earnings per share | $0.15 | $0.07 | $0.25 | $0.16 | [Financial Condition Data](index=8&type=section&id=Financial%20Condition%20Data) This section presents quarterly financial condition data for 2025 and 2024, including assets, liabilities, equity, non-performing assets, and key ratios, providing a snapshot of the Company's balance sheet at period end Key Financial Condition Data (Quarterly) (in thousands) | Metric | 1QTR 2025 | 2QTR 2025 | 3QTR 2025 | 4QTR 2024 | | :----------------------------------------- | :------------ | :------------ | :------------ | :------------ | | Assets | $1,431,524 | $1,448,733 | $1,461,494 | $1,422,362 | | Total loans and loans held for sale, net of unearned income | $1,062,326 | $1,069,220 | $1,055,683 | $1,068,409 | | Deposits | $1,216,838 | $1,244,533 | $1,258,588 | $1,200,995 | | Shareholders' equity | $110,759 | $110,921 | $114,575 | $107,248 | | Non-performing assets | $14,971 | $16,419 | $14,953 | $13,657 | | Tangible common equity ratio | 6.85% | 6.78% | 6.97% | 6.64% | | Book value per share | $6.70 | $6.71 | $6.94 | $6.49 | | Wealth management assets – fair market value | $2,486,920 | $2,583,839 | $2,661,214 | $2,559,155 | [Consolidated Statement of Income](index=10&type=section&id=Consolidated%20Statement%20of%20Income) This section provides detailed quarterly and year-to-date consolidated statements of income for 2025 and 2024, breaking down interest income, interest expense, net interest income, provision for credit losses, non-interest income, non-interest expense, and net income Consolidated Statement of Income (YTD) (in thousands) | Metric | YTD 2025 | YTD 2024 | | :----------------------------------------- | :------------ | :------------ | | Total Interest Income | $53,194 | $49,442 | | Total Interest Expense | $21,862 | $22,933 | | NET INTEREST INCOME | $31,332 | $26,509 | | Provision (recovery) for credit losses | $3,396 | ($174) | | Total Non-Interest Income | $12,618 | $13,522 | | Total Non-Interest Expense | $35,436 | $36,882 | | PRETAX INCOME (LOSS) | $5,118 | $3,323 | | Income tax expense (benefit) | $948 | $611 | | NET INCOME (LOSS) | $4,170 | $2,712 | [Average Balance Sheet Data](index=12&type=section&id=Average%20Balance%20Sheet%20Data) This section presents average balance sheet data for the third quarter and nine months ended September 30, 2025 and 2024, detailing interest-earning assets, non-interest-earning assets, interest-bearing liabilities, and non-interest-bearing liabilities Average Balance Sheet Data (9 Months Ended) (in thousands) | Metric | 9M 2025 | 9M 2024 | | :----------------------------------------- | :------------ | :------------ | | Total interest earning assets | $1,320,743 | $1,273,086 | | Total assets | $1,442,347 | $1,391,089 | | Total interest bearing deposits | $1,055,586 | $983,729 | | Total interest bearing liabilities | $1,144,268 | $1,095,965 | | Shareholders' equity | $110,382 | $103,030 | [Changes in Shareholders' Equity](index=13&type=section&id=Changes%20in%20Shareholders'%20Equity) This section details the changes in shareholders' equity on a quarterly basis for 2025 and 2024, showing the impact of net income/loss, adjustments for unrealized gains/losses on available-for-sale securities, pension plan adjustments, and common stock cash dividends Changes in Shareholders' Equity (YTD September 30, 2025) (in thousands) | Metric | Amount | | :----------------------------------------- | :------------ | | Balance at December 31, 2024 | $107,248 | | Net income | $4,170 | | Adjustment for unrealized gain on available for sale securities | $4,635 | | Market value adjustment for interest rate hedge | $8 | | Common stock cash dividend | ($1,486) | | Balance at September 30, 2025 | $114,575 | [Reconciliation of Non-GAAP Financial Measures](index=15&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides a reconciliation of non-GAAP financial measures, including return on average tangible common equity, tangible common equity ratio, and tangible book value per share, to their most directly comparable GAAP measures for 2025 and 2024 - Non-GAAP financial measures are used by management to analyze performance and facilitate understanding of the Company's ongoing financial and business performance or trends[38](index=38&type=chunk) Non-GAAP Financial Measures (YTD 2025) (in thousands) | Metric | YTD 2025 | | :----------------------------------------- | :------------ | | Net income (loss) | $4,170 | | Average shareholders' equity | $110,382 | | Less: Average intangible assets | $13,679 | | Average tangible common equity | $96,703 | | Return on average tangible common equity (annualized) | 5.77% | | Tangible common equity | $100,903 | | Tangible assets | $1,447,822 | | Tangible common equity ratio | 6.97% | | Tangible book value per share | $6.11 |

Core Insights - AmeriServ Financial, Inc. reported a significant increase in net income for the third quarter of 2025, reaching $2,544,000, which is a 115.0% improvement compared to the same period in 2024 [1] - The company achieved a net income of $4,170,000 for the nine-month period ending September 30, 2025, reflecting a 56.3% increase in earnings per share from the previous year [1] Financial Performance - The net interest income for the third quarter of 2025 increased by $2.1 million, or 23.9%, compared to the third quarter of 2024, and for the first nine months of 2025, it increased by $4.8 million, or 18.2% [2] - The net interest margin improved to 3.27% for the third quarter of 2025, a 56-basis point increase, and 3.13% for the nine months, reflecting a 41-basis point increase [2] - Total average loans grew by $35.9 million, or 3.5%, in the first nine months of 2025, although there was a $12.7 million, or 1.2%, decrease in total loans since December 31, 2024 [3] Investment and Securities - Total investment securities averaged $242.9 million for the third quarter of 2025, a $4.4 million, or 1.8%, increase from the previous year [4] - The securities portfolio grew by $17.3 million, or 7.9%, since December 31, 2024, due to increased loan prepayment activity and improved security yields [5] Deposits and Borrowings - Total average deposits increased by $69.5 million, or 6.0%, in the first nine months of 2025, attributed to successful business development efforts [6] - Total interest expense decreased by $345,000, or 4.4%, for the third quarter of 2025, and by $1.1 million, or 4.7%, for the nine months compared to the previous year [7] Credit Losses and Non-Interest Income - The company recorded a provision for credit losses of $360,000 in the third quarter of 2025, a significant increase compared to a recovery in the same period of 2024 [8] - Total non-interest income increased by $198,000, or 4.7%, in the third quarter of 2025, but declined by $904,000, or 6.7%, for the first nine months compared to the previous year [8] Non-Interest Expense - Total non-interest expense increased by $243,000, or 2.1%, in the third quarter of 2025 but decreased by $1.4 million, or 3.9%, for the first nine months compared to 2024 [10] - Professional fees decreased significantly, contributing to the overall reduction in non-interest expenses for the nine-month period [10] Shareholder Information - The company declared a quarterly cash dividend of $0.03 per share, representing a 4.0% annualized yield based on the closing stock price [12] - As of September 30, 2025, the company had total assets of $1.46 billion and shareholders' equity of $114.6 million, with a book value of $6.94 per common share [11]

Core Points - AmeriServ Financial Bank and United Steelworkers Local 2635-06 have ratified a new four-year contract, effective until October 16, 2029, which was accepted by unionized employees on October 12, 2025 [1][2] - The contract includes annual wage increases of 4% for the first three years and 3% for the fourth year, while existing healthcare and retirement benefits remain unchanged for union employees [2] Company Overview - AmeriServ Financial, Inc. is the parent company of AmeriServ Financial Bank, located in Johnstown, PA, providing full-service banking and wealth management through 16 community offices in southwestern Pennsylvania and Hagerstown, Maryland [3] - As of June 30, 2025, AmeriServ had total assets of $1.45 billion and a book value of $6.71 per common share, and is publicly traded on NASDAQ under the symbol ASRV [3]