AmeriServ Financial(ASRV) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter 2025 net income was $1,442,000, a 62.2% increase from $889,000 in Q4 2024, resulting in diluted earnings per share of $0.09 compared to $0.05[1] - For the full year 2025, net income reached $5,612,000, representing a 61.9% increase from $3,601,000 in 2024, with diluted earnings per share rising from $0.21 to $0.34[1] - Net income for 2025 totaled $5.612 million, with a return on average assets of 0.39% and a return on average equity of 5.03%[23] - Net income for Q4 2025 was $2,544 thousand, compared to a net loss of $282 thousand in Q3 2025, marking a substantial recovery[31] - Net income for Q1 2025 was $1,908,000, with a total net income for the year reaching $5,612,000[41] - Net income for the year 2024 reached $3.601 billion, with a quarterly breakdown of $1.904 billion in Q1, $(375) million in Q2, $1.183 billion in Q3, and $889 million in Q4[42] Interest Income and Margin - Net interest income for Q4 2025 increased by $1.4 million, or 14.6%, and for the full year, it rose by $6.2 million, or 17.2%, compared to 2024[2] - The net interest margin improved by 35 basis points to 3.23% in Q4 2025 and by 34 basis points to 3.15% for the full year[2] - Net interest income for the full year 2025 was $42,263 thousand, compared to $36,048 thousand in 2024, reflecting an increase of 17.3%[31] Asset Quality - The provision for credit losses for Q4 2025 was $724,000, a decrease of 31.6% from $1.1 million in Q4 2024, while the full year provision increased to $4.1 million from $884,000 in 2024[9] - Non-performing assets decreased by $6.4 million, or 43.0%, to $8.5 million since September 30, 2025, with non-performing loans at 0.80% of total loans[10] - Non-performing assets decreased to $8.518 million by the end of Q4 2025, reflecting improved asset quality[27] Expenses - Total non-interest expense in Q4 2025 increased by $1.0 million, or 8.8%, compared to Q4 2024, but decreased by $404,000, or 0.8%, for the full year 2025 compared to 2024[14] - Professional fees rose by $670,000, or 74.8%, in Q4 2025, while for the full year, they were down by $1.0 million, or 21.5%[14] - Salaries and employee benefits increased by $283,000, or 4.0%, in Q4 2025, and by $552,000, or 1.9%, for the full year compared to 2024[14] - Total interest expense decreased by $295,000, or 3.9%, in Q4 2025 and by $1.4 million, or 4.5%, for the full year compared to 2024[7] Equity and Dividends - Total assets reached $1.45 billion, with shareholders' equity at $119.3 million and a book value of $7.22 per common share as of December 31, 2025[16] - The Company declared a quarterly cash dividend of $0.03 per share, representing a 3.7% annualized yield and a 35.3% payout ratio based on 2025 earnings[17] - Total shareholders' equity increased to $119,312,000 by December 31, 2025, up from $110,759,000 at the beginning of the year[41] - Shareholders' equity increased to $107,248 thousand in Q4 2025, compared to $108,182 thousand in Q3 2025, reflecting a slight decrease[28] Deposits and Loans - Total average loans for 2025 grew by $23.7 million, or 2.3%, but decreased by $35.4 million, or 3.3%, since December 31, 2024, due to higher payoff activity[3] - Total average deposits for 2025 increased by $67.3 million, or 5.8%, compared to 2024, reflecting successful business development efforts[6] - Total deposits reached $1,200,995 thousand in Q4 2025, up from $1,189,330 thousand in Q3 2025, an increase of 1.3%[28] Market Performance - The market value per common share was $2.68 in Q4 2025, up from $2.61 in Q3 2025, indicating a growth of 2.7%[28] - Book value per common share increased by $0.73, or 11.2%, since December 31, 2024, due to favorable adjustments in unrealized losses and improved earnings[16] - Tangible common equity ratio improved to 7.34% by the end of 2025[41] Operational Efficiency - The efficiency ratio for 2025 was 81.47%, indicating operational efficiency improvements compared to previous years[23] - Average tangible common equity for 2025 was $97,930,000, resulting in a return on average tangible common equity of 5.73%[41] - Tangible common equity ratio was 6.64% in Q4 2025, slightly down from 6.79% in Q3 2025[28]