Core Insights - AmeriServ Financial, Inc. (NASDAQ:ASRV) is recognized as one of the 10 Best Bank Penny Stocks to Buy Right Now [1] - The company's President and CEO, Jeffrey A. Stopko, purchased shares valued at $5,726, acquiring a total of 2,000 shares, increasing his holdings to over 162,000 shares [2][3] Company Overview - AmeriServ Financial, Inc. provides consumer, mortgage, and commercial financial products in the U.S. [3] - The company held its 2025 annual meeting where shareholders elected three Class III directors to serve until 2028 and approved the company's auditor [3]

Capital Adequacy - As of June 30, 2025, the Company maintained total capital of $150,427, representing a ratio of 12.50% to risk-weighted assets, exceeding the minimum required ratio of 8.00%[128] - Common equity tier 1 capital was $109,289, with a ratio of 9.08% to risk-weighted assets, above the minimum requirement of 4.50%[129] - The Company was categorized as "well capitalized" under the regulatory framework as of June 30, 2025, indicating compliance with capital adequacy requirements[128] Interest Rate Risk Management - The Company entered into interest rate swaps with a total notional value of $70 million as of June 30, 2025, to hedge interest rate risk associated with floating-rate time deposit accounts[138] - Interest rate swap agreements allow the Company to manage interest rate risk and match rates on certain assets, converting fixed-rate debt to variable rates[132] - The Company had no caps or floors outstanding at June 30, 2025, and 2024, under its hedging policy[145] - The Company did not recognize any hedge ineffectiveness in earnings during the periods ended June 30, 2025, and 2024[139] Financial Performance - The Company reported consolidated net income for the three months ended June 30, 2025, of $11,000, compared to $3,000 for the same period in 2024, indicating a significant recovery in credit losses[153] - The allowance for credit losses related to unfunded commitments and standby letters of credit was $246,000 as of June 30, 2025, down from $966,000 at December 31, 2024, reflecting improved credit quality[153] - The Company recorded a provision for credit losses recovery of $720,000 for the six months ended June 30, 2025, compared to $1,000 for the same period in 2024, highlighting a significant improvement in credit loss management[153] Lending Activity - The Company had outstanding commitments to extend credit of approximately $253.3 million as of June 30, 2025, compared to $233.2 million as of December 31, 2024, showing an increase in lending activity[152] Pension Management - The net periodic pension benefit for the three months ended June 30, 2025, was $(487,000), compared to $(118,000) for the same period in 2024, indicating a shift towards a net benefit due to changes in pension plan management[156] - The Company implemented a soft freeze of its defined benefit pension plan, affecting non-union employees hired on or after January 1, 2013, to reduce future pension costs[160] - The Company recognized no settlement charge in connection with its defined benefit pension plan for the first six months of 2025, compared to a charge of $376,000 in the same period of 2024, reflecting a positive trend in pension management[158] Asset Valuation - The fair value of equity securities was $600,000 as of June 30, 2025, unchanged from December 31, 2024, indicating stability in this asset class[165] - The Company’s total assets measured at fair value included $179,000 in equity securities and $103,530,000 in U.S. Agency mortgage-backed securities as of June 30, 2025[170] - The carrying value of investment securities held to maturity (HTM) as of June 30, 2025, is $67,555,000, with a fair value of $63,280,000, indicating a fair value discount of approximately 6.7%[180] - Loans, net of allowance for credit losses and unearned income, have a carrying value of $1,055,000,000 and a fair value of $1,042,003,000 as of June 30, 2025, reflecting a slight decrease in fair value[180] - The company reported that deposits with stated maturities have a carrying value of $376,149,000 and a fair value of $375,741,000, showing minimal variance[180] - As of December 31, 2024, the fair value of loans held for sale was $470,000, compared to a carrying value of $460,000, indicating a fair value premium of approximately 2.2%[181] - The company utilizes independent third-party valuations for fair value measurements, with significant estimates and present value calculations applied to financial instruments lacking an active market[178] - The fair value of all financial instruments is categorized into Level 1, Level 2, and Level 3 measurements, with the majority being Level 1[179] Market Risk Management - The company manages market risk primarily through interest rate risk management strategies, as discussed in the Interest Rate Sensitivity section of the MD&A[277] - Changes in assumptions or estimation methodologies may materially affect the estimated fair values of the company's financial instruments[182] Real Estate Valuation - As of June 30, 2025, the fair value of other real estate owned and repossessed assets is $258,000, down from $1,724,000 on December 31, 2024, representing a decrease of approximately 85%[176] - The fair value measurement for other real estate owned and repossessed assets includes appraisal adjustments ranging from 15% to 63% with a weighted average of 45% as of June 30, 2025[177]

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]

Financial Performance - AmeriServ Financial reported a net income of $1,908,000, or $0.12 per diluted common share, for Q1 2025, a slight increase of 0.2% from $1,904,000, or $0.11 per diluted common share, in Q1 2024[1] - Net income for Q1 2025 was $1,908,000, compared to a net loss of $375,000 in Q1 2024[30] - Net income for the year 2024 reached $3,601 million, with a significant recovery from a loss of $375 million in Q2 2024[39] - Return on average assets for Q1 2025 was 0.54%, and return on average equity was 7.12%[21] - Return on average tangible common equity for Q1 2025 was 8.14%[38] - Return on average tangible common equity for the year was 3.98%, showing a recovery from a negative 1.70% in Q2 2024[39] Income and Expenses - Net interest income increased by $1.2 million, or 13.5%, year-over-year, with a net interest margin of 3.01%, reflecting a 31-basis point improvement compared to Q1 2024[2] - Total non-interest income decreased by $826,000, or 16.7%, primarily due to lower wealth management fees and other income[12] - Total non-interest expense decreased by $101,000, or 0.9%, with a significant reduction in professional fees by $317,000, or 31.6%[14] - Non-interest income for Q1 2025 totaled $4,121,000, primarily from wealth management fees of $2,864,000[29] - Total non-interest expense for Q1 2025 was $11,763,000, resulting in a pretax income of $2,386,000[29] - Total non-interest expense for 2024 was $48,740,000, with Q4 expenses at $11,858,000[30] Loans and Deposits - Total average loans grew by $34.8 million, or 3.4%, year-over-year, averaging $1.065 billion in Q1 2025, although total loans declined by $6.1 million, or 0.6%, since December 31, 2024[3] - Total average deposits increased by $58.2 million, or 5.0%, year-over-year, indicating successful business development efforts[7] Assets and Equity - Total assets at the end of Q1 2025 were $1,431,524,000, with total loans of $1,062,326,000[25] - Total assets increased to $1,431,514,000 in Q1 2025, up from $1,388,529,000 in Q1 2024[32] - Tangible common equity ratio stood at 6.85% as of Q1 2025[38] - Total shareholders' equity reached $107,248 million in Q4 2024, up from $103,933 million in Q1 2024[39] Capital and Dividends - The Company maintained strong capital ratios that exceed the regulatory defined well-capitalized status as of March 31, 2025[16] - The Board of Directors declared a quarterly common stock cash dividend of $0.03 per share, representing a 5.1% annualized yield based on the April 17, 2025 closing stock price of $2.35[17] - Cash dividends paid per share in Q1 2025 were $0.03[21] Book Value - Book value per common share increased by $0.64, or 10.6%, to $6.70, while tangible book value per common share increased by $0.62, or 11.8%, to $5.88[16] - Tangible book value per share was $5.88 as of Q1 2025[38] - Tangible book value per share increased to $5.66 by the end of 2024, compared to $5.26 in Q1 2024[39]

Financial Performance - AmeriServ Financial, Inc. reported a net income of $1,908,000 for Q1 2025, a slight increase of 0.2% from $1,904,000 in Q1 2024, with diluted earnings per share rising to $0.12 from $0.11, reflecting a 9.1% increase [1][2] - The company's net interest income increased by $1.2 million, or 13.5%, year-over-year, with a net interest margin of 3.01%, up 31 basis points from the previous year [2][3] - Total average loans grew by $34.8 million, or 3.4%, compared to Q1 2024, although there was a decline of $6.1 million, or 0.6%, since December 31, 2024 [3][4] Revenue and Expenses - Total non-interest income decreased by $826,000, or 16.7%, primarily due to lower wealth management fees and other income [10] - Total non-interest expense decreased by $101,000, or 0.9%, with significant reductions in professional fees and other expenses, although salaries and employee benefits increased [11][12] - The company recorded a provision for credit losses recovery of $97,000 in Q1 2025, down from $557,000 in Q1 2024, indicating a smaller recovery [8] Balance Sheet and Capital - As of March 31, 2025, total assets were $1.4 billion, with shareholders' equity at $110.8 million, resulting in a book value of $6.70 per share, up 10.6% year-over-year [13][22] - Total average deposits increased by $58.2 million, or 5.0%, compared to Q1 2024, reflecting strong customer loyalty [5][6] - The loan to deposit ratio averaged 87.4% in Q1 2025, indicating ample capacity for loan portfolio growth [5] Market Conditions and Strategy - The company benefited from a favorable interest rate environment, with the Federal Reserve's actions in late 2024 contributing to lower costs for interest-bearing deposits [2][6] - Management anticipates continued improvement in net interest margin through 2025, supported by effective pricing strategies and controlled balance sheet growth [2][3] - The company declared a quarterly cash dividend of $0.03 per share, representing a 5.1% annualized yield based on the April 17, 2025 closing stock price [14]

Financial Performance - The company reported a net income of $3,601,000, or $0.21 per diluted common share, for 2024, compared to a net loss of $3,346,000, or $0.20 per diluted common share, for 2023[104]. - Net income for 2024 was $3,601,000, a significant recovery from a net loss of $3,346,000 in 2023[215]. - Total comprehensive income for 2024 reached $8,494,000, compared to a loss of $802,000 in 2023[215]. - Basic and diluted earnings per share for 2024 were both $0.21, compared to a loss of $0.20 per share in 2023[272]. Loan and Deposit Growth - Total loans grew by $30 million, or 2.9%, and deposits increased by $43 million, or 3.7%, for 2024[104]. - Average total loans for 2024 rose by $40.5 million, or 4.1%, with total loans growing by $30.0 million, or 2.9%, since December 31, 2023[113]. - Total deposits rose by $42.6 million, or 3.7%, during 2024, reflecting customer confidence and successful business development efforts[146]. - Total deposits grew to $1,200,995 thousand in 2024, up from $1,158,360 thousand in 2023, indicating an increase of about 3.7%[210]. Interest Income and Expense - Net interest income for 2024 was $36,048,000, a slight increase of $28,000, or 0.1%, compared to 2023[108]. - Interest income increased by $5,645,000, or 9.3%, to $66,505,000 in 2024, while interest expense rose by $5,617,000, or 22.6%, to $30,457,000[107]. - Total interest income for 2024 increased by $5.6 million, or 9.3%, compared to 2023, driven by a 2.5% increase in average total interest-earning assets[112]. - Total interest expense increased by $5.6 million, or 22.6%, for 2024, primarily due to rising national interest rates and increased competition for deposits[117]. Credit Losses and Allowances - The provision for credit losses was $884,000 in 2024, significantly lower than the $7,429,000 in 2023, reflecting recoveries recognized in the loan and securities portfolios[104]. - The allowance for credit losses decreased to $13,912 thousand in 2024 from $15,053 thousand in 2023, a reduction of approximately 7.6%[212]. - The allowance for credit losses on loans declined by $1.1 million, or 7.6%, to $13.9 million at December 31, 2024, compared to $15.0 million at the end of 2023[130]. - The allowance for credit losses on available for sale securities decreased by $566,000, or 61.1%, from 2023, totaling $360,000 as of December 31, 2024[137]. Non-Interest Income and Expenses - Non-interest income represented 33% of total revenue for 2024, driven by strong contributions from the wealth management division[104]. - Non-interest income totaled $17,975 thousand in 2024, compared to $16,389 thousand in 2023, reflecting an increase of approximately 9.7%[212]. - Non-interest expense for 2024 totaled $48.7 million, a decrease of $628,000, or 1.3%, from 2023, primarily due to lower salaries and employee benefits[141]. - Wealth management fees rose to $12,318 million in 2024, up from $11,266 million in 2023, reflecting a growth of 9.4%[294]. Asset and Equity Growth - The Company's total consolidated assets increased by $32.7 million, or 2.4%, to $1.422 billion as of December 31, 2024, driven by higher cash, loans, and other assets[145]. - The Company's total shareholders' equity increased by $5.0 million, or 4.9%, with a risk-based capital ratio of 12.70% and a tangible common equity to tangible assets ratio of 6.64% at year-end 2024[147]. - Cash and cash equivalents increased by $3.7 million to $17.7 million, supported by $24.1 million net cash from financing activities[151]. - The tangible common equity ratio increased to 6.64% in 2024 from 6.44% in 2023, while the tangible book value per share rose to $5.66 from $5.16[183]. Shareholder Returns and Stock Activity - The company maintained a cash dividend of $0.12 per share for both 2024 and 2023[213]. - The company purchased 628,003 shares of treasury stock in 2024, totaling $1,511,000[218]. - The company declared a cash dividend of $0.12 per share in both 2024 and 2023, totaling $2,020,000 in 2024[218]. Risk Management and Interest Rate Sensitivity - The Company executed $70 million of interest rate hedges in 2023 to mitigate negative variability of net interest income in a rising interest rate environment[170]. - The Company’s interest rate risk position is relatively neutral, with a slight negative variability in net interest income under upward rate scenarios[171]. - The cumulative GAP ratio through three months indicates a liability-sensitive position with a ratio of 0.82, reflecting an increase in liability sensitivity due to higher interest-bearing deposits[165]. - The Company maintains a disciplined approach to pricing core deposit accounts while controlling overnight borrowed funds[171]. Technological Advancements and Community Involvement - The Company is focused on technological advancements to drive efficiency and improve customer service[199]. - The company plans to continue promoting employee community involvement and leadership, enhancing its corporate image through various community assistance programs[203].

Financial Performance - For Q4 2024, AmeriServ Financial reported a net income of $889,000, or $0.05 per diluted share, compared to a net loss of $5,321,000, or $0.31 per diluted share in Q4 2023[1]. - Net income for the full year 2024 was $3.6 million, with a return on average assets of 0.26% and a return on average equity of 3.46%[23]. - The company reported a net loss of $3,346,000 for the entire year of 2023[43]. - Net income for Q3 2023 was a loss of $5,321,000, compared to a net income of $647,000 in Q2 2023[38]. - The company recorded an income tax expense of $798,000 for the full year 2024, with an effective tax rate of 18.1%, compared to an income tax credit of $1.0 million for the full year 2023[16]. Loan and Deposit Growth - Total loans increased by $30 million, or 2.9%, and total deposits grew by $43 million, or 3.7%, for the full year 2024[1]. - Average total loans for Q4 2024 were $1.058 billion, up $36.3 million, or 3.6%, from Q4 2023[3]. - The loan to deposit ratio averaged 89.1% in Q4 2024, indicating capacity for continued loan portfolio growth[6]. - Total loans and loans held for sale rose from $1,026,586 in Q1 to $1,068,409 in Q4, an increase of 4.07%[26]. - Total interest bearing deposits rose to $1,009,304 thousand in Q4 2024, an increase of 1.2% from $990,123 thousand in Q4 2023[35]. Income and Expenses - Net interest income for Q4 2024 rose by $950,000, or 11.1%, year-over-year, while for the full year, it increased by $28,000, or 0.1%[2]. - Total non-interest income in Q4 2024 increased by $1.7 million, or 61.1%, compared to Q4 2023, and by $1.6 million, or 9.7%, for the full year[13]. - Total non-interest expense decreased by $275,000, or 2.3%, in Q4 2024 compared to Q4 2023, and decreased by $628,000, or 1.3%, for the full year 2024 compared to 2023[14]. - Salaries and employee benefits expense decreased by $1.2 million, or 4.2%, for the full year 2024, with total salaries cost down by $847,000, or 4.0%[14]. - Total health care costs were $516,000, or 13.4%, lower compared to the previous year, reflecting effective negotiations with the health care provider[14]. Asset and Equity Position - Total assets were $1.4 billion, with shareholders' equity of $108.6 million and a book value of $6.57 per common share as of December 31, 2024[17]. - Book value per common share increased by $0.61, or 10.2%, since December 31, 2023, due to favorable adjustments and share repurchases[17]. - Shareholders' equity increased to $108,611 thousand by December 31, 2024, up from $102,277 thousand at the end of 2023, marking a growth of 6.2%[37]. - Total assets reached $1,413,726 thousand as of December 31, 2024, compared to $1,396,748 thousand at the end of 2023, indicating a growth of 1.9%[35]. - Total shareholders' equity decreased to $102,277,000 by the end of 2023[38]. Efficiency and Ratios - The efficiency ratio improved to 90.18% for the full year 2024, compared to 94.17% for the full year 2023[23]. - The tangible book value per share increased by 11.4% to $5.75 during 2024[1]. - The tangible common equity ratio decreased from 6.58% in Q1 to 6.73% in Q4[26]. - Average tangible common equity for 2023 was $89,843,000, with a return on average tangible common equity of -3.72%[43]. - Tangible common equity ratio for Q3 2023 was 6.44%[43]. Dividends and Shareholder Returns - The Company declared a quarterly common stock cash dividend of $0.03 per share, representing a 4.35% annualized yield based on the January 16, 2025 closing stock price of $2.76[19]. - Common stock cash dividends totaled $495 thousand in Q4 2024, compared to $514 thousand in Q4 2023, showing a decrease of 3.7%[37]. Market and Investment Performance - Wealth management assets at fair market value decreased from $2,603,493 in Q1 to $2,559,155 in Q4[26]. - The total investment securities decreased to $246,111 thousand in Q4 2024 from $253,487 thousand in Q4 2023, representing a decline of 2.4%[35]. - The market value adjustment for interest rate hedge showed a gain of $402 thousand in Q4 2024, compared to a loss in the previous period[37].