Shares of AmeriServ Financial, Inc. (ASRV) have gained 5.6% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 index’s 0.9% change over the same time frame. Over the past month, the stock moved 8% versus the S&P 500’s 2.1% change, reflecting investors' favorable response to the company’s performance and outlook.AmeriServ reported net income of 15 cents per share for the third quarter of 2025, a sharp 114% increase over the 7 cents per share reported in ...

[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 |

Accessibility StatementSkip Navigation JOHNSTOWN, Pa., Oct. 21, 2025 /PRNewswire/ -- AmeriServ Financial, Inc. (NASDAQ: ASRV) reported third quarter 2025 net income of $2,544,000, or $0.15 per diluted common share. This earnings performance represented a $1,361,000, or 115.0%, improvement from the third quarter of 2024 when net income totaled $1,183,000, or $0.07 per diluted common share. For the nine-month period ended September 30, 2025, the Company reported net income of $4,170,000, or $0.25 per diluted ...

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]

AmeriServ Financial, Inc. (NASDAQ:ASRV) is one of the 10 Best Bank Penny Stocks to Buy Right Now. AmeriServ Financial, Inc. (ASRV) ’s President and CEO, Jeffrey A. Stopko, Purchases Shares of the Company’s Common Stock in Two Transactions Valued at $5,726 On September 12, 2025, AmeriServ Financial, Inc. (NASDAQ:ASRV)’s President and CEO, Jeffrey A. Stopko, purchased shares of the company’s common stock in two transactions valued at $5,726. This transaction represents a total of 2,000 shares acquired on S ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____________ to_____________ Commission File Number 0-11204 AmeriServ Financial, Inc. (Exact name of registrant as specified in its charter) | Pennsylvania ...

Core Insights - AmeriServ Financial, Inc. reported a net loss of 2 cents per share for Q2 2025, unchanged year over year, while its stock declined 7.7% since the earnings report, contrasting with a 1.3% growth in the S&P 500 index during the same period [1][2] Financial Performance - Net interest income increased by $1.5 million to $10.4 million, driven by a 36-basis-point expansion in net interest margin to 3.10% [3] - Total interest income rose by $1.2 million, or 7.1%, due to higher average loan balances and repricing of commercial real estate loans [3] - Provision for credit losses surged to $3.1 million from $0.4 million a year earlier, primarily due to a $2.8 million charge-off related to a problematic commercial real estate loan [4] - Total non-interest income decreased by $0.3 million, or 6.3%, with significant declines in wealth management fees and mortgage banking revenues [5] Expense Management - Non-interest expenses were reduced by $1.6 million, or 11.9%, with notable decreases in professional fees and other expense categories [6] - The company experienced slight increases in salaries and healthcare costs, but these were offset by lower incentive compensation and headcount reductions [6] Management Perspective - CEO Jeffrey Stopko highlighted positive operating leverage achieved in both quarters of 2025, with expectations for continued improvement in net interest income and margin [7] - Management is focused on cost control while selectively investing in growth areas, although no formal earnings guidance was provided [7] Balance Sheet and Capital Position - As of June 30, 2025, total loans were $1.1 billion and deposits reached $1.2 billion, with non-performing assets rising 9.7% to $16.4 million [9] - Capital ratios remain strong, with a tangible common equity ratio of 6.78% and book value per share increasing to $6.71, up 6.8% year over year [9] Dividend Declaration - The board declared a quarterly cash dividend of 3 cents per share, representing a 3.9% annualized yield and a 60% payout ratio based on year-to-date earnings [10]

[Earnings Summary](index=1&type=section&id=AmeriServ%20Financial%20Reports%20Earnings%20for%20the%20Second%20Quarter%20and%20First%20Six%20Months%20of%202025) AmeriServ Financial reported a Q2 2025 net loss of $0.282 million, improving from Q2 2024, with H1 2025 net income rising to $1.626 million due to positive operating leverage [Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) AmeriServ Financial reported a Q2 2025 net loss of $0.282 million, improving from Q2 2024, with H1 2025 net income rising to $1.626 million due to positive operating leverage Consolidated Earnings Summary | Period | Net Income (Loss) (in thousands) | Diluted EPS | | :--- | :--- | :--- | | **Q2 2025** | $(282) | $(0.02) | | **Q2 2024** | $(375) | $(0.02) | | **H1 2025** | $1,626 | $0.10 | | **H1 2024** | $1,529 | $0.09 | - The modest Q2 2025 loss was caused by an increased provision for credit losses related to the resolution of the company's largest problem loan[1](index=1&type=chunk) - The company achieved positive operating leverage in the first half of 2025, as total revenue increased while non-interest expenses declined, with the revenue increase driven by a **$2.7 million** rise in net interest income[1](index=1&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) This section analyzes AmeriServ Financial's key performance areas, including net interest income, asset and liability management, credit quality, non-interest income and expense, and capital position [Net Interest Income and Margin](index=1&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income and margin significantly grew year-over-year in Q2 and H1 2025, driven by controlled balance sheet growth, effective pricing, and lower funding costs, with continued improvement expected Net Interest Income and Margin Performance | Metric | Q2 2025 vs Q2 2024 | H1 2025 vs H1 2024 | | :--- | :--- | :--- | | **Net Interest Income** | +$1.5M (+17.1%) | +$2.7M (+15.3%) | | **Net Interest Margin** | 3.10% (+36 bps) | 3.06% (+34 bps) | - Key drivers for margin improvement include controlled growth in loans and deposits, effective pricing, and the favorable impact of the Federal Reserve's rate cuts in late 2024 on funding costs[2](index=2&type=chunk) - Management believes the net interest margin will continue to improve through the second half of 2025[2](index=2&type=chunk) [Asset and Liability Management](index=1&type=section&id=Asset%20and%20Liability%20Management) The company achieved growth in average loans and deposits in H1 2025, reducing reliance on higher-cost borrowings and expanding its investment securities portfolio - Total average loans grew by **$37.2 million**, or **3.6%**, in the first six months of 2025 compared to the same period in 2024[3](index=3&type=chunk) - The investment securities portfolio grew by **$17.9 million**, or **8.1%**, since December 31, 2024, as improved yields made purchases more attractive[5](index=5&type=chunk) - Total average deposits for H1 2025 were **$67.8 million**, or **5.8%**, higher than H1 2024, reflecting successful business development, with the loan-to-deposit ratio at a healthy **86.2%** in Q2 2025[6](index=6&type=chunk) - Use of overnight borrowed funds in H1 2025 was significantly lower than H1 2024 by **$26.0 million**, or **83.8%**, due to the higher level of deposits[8](index=8&type=chunk) [Credit Quality](index=3&type=section&id=Credit%20Quality) Credit quality was significantly impacted by a $3.1 million Q2 2025 provision for credit losses and a $3.0 million H1 net charge-off due to resolving a large problem loan Provision for Credit Losses | Period | Provision Expense (Recovery) (in thousands) | | :--- | :--- | | **Q2 2025** | $3,100 | | **Q2 2024** | $434 | | **H1 2025** | $3,000 | | **H1 2024** | $(123) | - The Q2 2025 provision primarily reflects a **$2.8 million** charge-off on the company's largest problem asset, a mixed-use CRE property, to write it down to a court-approved sales price[9](index=9&type=chunk) Credit Quality Metrics (as of June 30, 2025) | Metric | Value | | :--- | :--- | | **Non-performing assets** | $16.4 million (+9.7% from Q1 2025) | | **Non-performing loans to total loans** | 1.42% | | **Net loan charge-offs (H1 2025)** | $3.0 million (0.56% of avg. loans) | | **Allowance coverage of non-performing loans** | 93% | [Non-Interest Income](index=3&type=section&id=Non-Interest%20Income) Non-interest income declined in Q2 and H1 2025, primarily due to lower wealth management fees from market volatility and reduced other income Non-Interest Income Comparison | Period | Total Non-Interest Income (in millions) | Change YoY | | :--- | :--- | :--- | | **Q2 2025** | $4.10 | -$0.276 (-6.3%) | | **H1 2025** | $8.22 | -$1.1 (-11.8%) | - The decrease was primarily due to lower wealth management fees, which fell by **$679,000** (**10.7%**) in H1 2025 due to market volatility[11](index=11&type=chunk) - Other income for H1 2025 was lower partly because a **$250,000** signing bonus from Visa was recognized in Q1 2024, with no similar bonus in 2025[12](index=12&type=chunk) - Despite lower fees, the fair market value of wealth management assets increased by **$24.7 million** (**1.0%**) to **$2.6 billion** since December 31, 2024[12](index=12&type=chunk) [Non-Interest Expense](index=5&type=section&id=Non-Interest%20Expense) Total non-interest expense significantly decreased in Q2 and H1 2025, mainly driven by a sharp reduction in professional fees following resolved litigation Non-Interest Expense Comparison | Period | Total Non-Interest Expense (in millions) | Change YoY | | :--- | :--- | :--- | | **Q2 2025** | $11.71 | -$1.6 (-11.9%) | | **H1 2025** | $23.47 | -$1.7 (-6.7%) | - Professional fees decreased by **$1.5 million** (**48.7%**) for H1 2025, as 2024 expenses were higher due to litigation and actions of an activist investor, which was resolved in June 2024[14](index=14&type=chunk) - Salaries & employee benefits increased by only **0.5%** for H1 2025, as higher healthcare costs and merit increases were largely offset by a **$393,000** (**45.1%**) reduction in incentive compensation[14](index=14&type=chunk) [Capital Position and Shareholder Returns](index=5&type=section&id=Capital%20Position%20and%20Shareholder%20Returns) The company maintained strong capital ratios exceeding "well capitalized" status, with book value per share and tangible book value per share increasing year-over-year Capital and Book Value (as of June 30, 2025) | Metric | Value | Change from June 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | $1.45 billion | N/A | | **Shareholders' Equity** | $110.9 million | N/A | | **Book Value per Share** | $6.71 | +$0.43 (+6.8%) | | **Tangible Book Value per Share** | $5.89 | +$0.44 (+8.1%) | - The company's capital ratios exceed the regulatory defined **well-capitalized status**[16](index=16&type=chunk) - The Board declared a **$0.03 per share** quarterly cash dividend, representing a **3.9% annualized yield** and a **60% payout ratio** based on year-to-date earnings[17](index=17&type=chunk) [Financial Statements and Supplemental Data](index=7&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) This section provides detailed financial statements and supplemental data, including performance metrics, income statements, balance sheets, and reconciliations of non-GAAP measures [Supplemental Financial Performance Data](index=7&type=section&id=Supplemental%20Financial%20Performance%20Data) This section presents key performance metrics and financial condition data for 2025 and 2024, including annualized returns and period-end balances Performance Data for H1 2025 | Metric (Annualized) | Value | | :--- | :--- | | **Return on average assets** | 0.23% | | **Return on average equity** | 2.99% | | **Net interest margin** | 3.06% | | **Efficiency ratio** | 82.18% | Financial Condition at June 30, 2025 | Account | Value (in thousands) | | :--- | :--- | | **Total Assets** | $1,448,733 | | **Total Loans** | $1,069,220 | | **Total Deposits** | $1,244,533 | | **Shareholders' Equity** | $110,921 | [Consolidated Statement of Income](index=10&type=section&id=Consolidated%20Statement%20of%20Income) The consolidated statement details revenue and expenses for Q1 and Q2 2025 and 2024, reporting a H1 2025 net income of $1.6 million Consolidated Income Statement Summary (Six Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Net Interest Income** | $20,325 | $17,622 | | **Provision for credit losses** | $3,036 | $(123) | | **Non-Interest Income** | $8,217 | $9,319 | | **Non-Interest Expense** | $23,472 | $25,161 | | **Pretax Income** | $2,034 | $1,903 | | **Net Income** | $1,626 | $1,529 | [Average Balance Sheet Data](index=12&type=section&id=Average%20Balance%20Sheet%20Data) This section presents average balances for assets, liabilities, and equity for Q2 and H1 2025 and 2024, showing average total assets of $1.44 billion in H1 2025 Average Balance Sheet Summary (Six Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Total interest earning assets** | $1,317,354 | $1,271,838 | | **Total assets** | $1,439,673 | $1,389,316 | | **Total interest bearing deposits** | $1,050,062 | $981,338 | | **Total interest bearing liabilities** | $1,139,130 | $1,092,956 | | **Shareholders' equity** | $109,829 | $102,337 | [Changes in Shareholders' Equity](index=13&type=section&id=Changes%20in%20Shareholders'%20Equity) This statement details changes in shareholders' equity for 2024 and H1 2025, showing an increase to $110.9 million at June 30, 2025 Reconciliation of Shareholders' Equity (H1 2025) | (In thousands) | Amount | | :--- | :--- | | **Balance at December 31, 2024** | $107,248 | | Net income (H1 2025) | $1,626 | | Adjustment for unrealized gain on securities | $3,025 | | Common stock cash dividend | $(991) | | Other adjustments | $13 | | **Balance at June 30, 2025** | $110,921 | [Reconciliation of Non-GAAP Financial Measures](index=15&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP measures, including tangible book value per share, which increased to $5.89 at June 30, 2025 Tangible Book Value Per Share (Non-GAAP) | Period End | Total Equity (in thousands) | Intangible Assets (in thousands) | Tangible Common Equity (in thousands) | Shares Outstanding | Tangible Book Value per Share | | :--- | :--- | :--- | :--- | :--- | :--- | | **June 30, 2025** | $110,921 | $13,677 | $97,244 | 16,519,267 | $5.89 | | **June 30, 2024** | $103,661 | $13,699 | $89,962 | 16,519,267 | $5.45 |

Core Viewpoint - Zacks Investment Research has initiated coverage of AmeriServ Financial, Inc. (ASRV) with an Outperform recommendation, emphasizing the stock's strategic shareholder alignment and steady earnings profile as key drivers of upside potential [1] Group 1: Strategic Developments - AmeriServ's renewed long-term agreement with major shareholder SB Value Partners through 2029 strengthens its growth trajectory in trust and wealth management, with $2.4 billion in off-balance sheet assets under management expected to significantly contribute to earnings [2] - The relationship with SB Value Partners signals confidence in AmeriServ's direction and aligns shareholder interests around value creation in union-affiliated and high-net-worth markets [2] Group 2: Financial Position - Shareholders' equity increased to $110.8 million in Q1 2025, up from $107.2 million at year-end, while cash balances rose to $23.6 million and short-term borrowings declined to $10.4 million, indicating prudent liquidity management [3] - AmeriServ maintains a loan-to-deposit ratio below 90% and minimal reliance on brokered deposits, providing financial flexibility in a challenging rate environment [3] Group 3: Investment Portfolio - The bank's conservatively managed investment portfolio consists largely of AAA-rated securities with a shortened duration of 46.8 months, offering protection against market volatility and enhancing balance sheet resilience [4] - The company reduced its unrealized investment losses by approximately $3 million in Q1 2025, signaling improved market conditions and proactive asset management [4] Group 4: Cost Management - AmeriServ has demonstrated strong discipline in managing costs, with non-interest expenses held flat year-over-year at $11.8 million despite inflationary pressures [5] - Improved operating leverage has helped preserve margins and offset revenue softness, while the bank's $2.5 billion in cross-sellable wealth assets and fintech readiness provide additional growth opportunities [5] Group 5: Challenges - Non-performing loans increased to $14 million in Q1 2025, up from $12.7 million at year-end, with a coverage ratio declining to 101% from 127%, indicating a thinner cushion against potential losses [6] - Non-interest income declined 16.7% year-over-year to $4.1 million in Q1 2025, with wealth management revenues and other income sources posting declines, leading to a heavier reliance on net interest income for future earnings [7] Group 6: Valuation and Investment Case - Despite recent improvements in share price, AmeriServ still trades at a valuation below its industry peers, creating an attractive entry point for investors seeking small-cap financial exposure [8] - The company presents a compelling investment case for those looking for a well-capitalized regional bank with disciplined operations and significant upside potential [8]

Capital Adequacy - As of March 31, 2025, the Company maintained total capital of $150,962 thousand, representing a ratio of 12.73% to risk-weighted assets, exceeding the minimum required ratio of 8.00%[125] - Common equity tier 1 capital was $110,061 thousand with a ratio of 9.28% to risk-weighted assets, above the minimum requirement of 4.50%[125] - The Company is categorized as "well capitalized" under the regulatory framework, indicating compliance with capital adequacy guidelines[123] 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[133] - The Company utilizes derivative instruments primarily to manage interest rate risk and match rates on certain assets[126] - The Company’s hedging policy permits a maximum notional amount of $500 million for interest rate swaps and caps/floors[140] - For the three months ended March 31, 2025, the Company recognized a loss of $32 thousand in other comprehensive income related to cash flow hedges[139] - The estimated amount to be reclassified as a decrease in interest expense over the next twelve months is approximately $113 thousand[137] Credit Commitments and Losses - The company had outstanding credit commitments of approximately $243.1 million as of March 31, 2025, compared to $233.2 million as of December 31, 2024[145] - A provision for credit losses recovery on unfunded commitments was recorded at $708,000 for the three months ended March 31, 2025, while a provision for credit losses expense of $2,000 was recorded for the same period in 2024[146] Pension Obligations - The accrued pension obligation was $31.7 million as of March 31, 2025, up from $31.4 million as of December 31, 2024[151] - The net periodic pension benefit cost for the three months ended March 31, 2025, was $(487,000), compared to $(353,000) for the same period in 2024[149] - The company has implemented a soft freeze on its defined benefit pension plan for non-union employees hired after January 1, 2013, to reduce future pension costs[152] Fair Value Measurements - Approximately 90% of the company's assets and liabilities are considered financial instruments, with significant estimates used for fair value calculations[170] - The carrying value of equity securities without readily determinable fair values was $600,000 as of March 31, 2025[157] - Total fair value measurements for equity securities at March 31, 2025, amounted to $177,000, compared to $350,000 at December 31, 2024[163] - The company reported available for sale securities valued at $100,438,000 in U.S. Agency mortgage-backed securities as of March 31, 2025[163] - The carrying value of investment securities held to maturity (HTM) is $67,259,000, with a fair value of $62,656,000[172] - Loans, net of allowance for credit losses and unearned income, have a carrying value of $1,048,514,000 and a fair value of $1,030,919,000 as of March 31, 2025[172] - Deposits with stated maturities amount to a carrying value of $334,054,000, with a fair value of $333,933,000 as of March 31, 2025[172] - The fair value of all other borrowings is $83,759,000, compared to a carrying value of $79,484,000 as of March 31, 2025[172] - The carrying value of loans held for sale is $460,000, with a fair value of $470,000 as of December 31, 2024[172] - The carrying value of investment securities HTM as of December 31, 2024, is $63,837,000, with a fair value of $58,471,000[172] - Changes in assumptions or estimation methodologies may significantly impact estimated fair values[173] - The carrying value of loans, net of allowance for credit losses and unearned income, was $1,054,037,000 with a fair value of $990,745,000 as of December 31, 2024[172] - The carrying value of deposits with stated maturities as of December 31, 2024, is $336,312,000, with a fair value of $336,167,000[172] Performance Monitoring - Consolidated net income is monitored against budget results, with key performance measures being earnings per share (EPS) and return on average assets (ROA)[144]