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]
AmeriServ Financial(ASRV) - 2025 Q1 - Quarterly Report