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].
AmeriServ Financial(ASRV) - 2024 Q4 - Annual Report