AmeriServ Financial(US:ASRV)2025-11-13 20:13Capital 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]