AMERISERV FINANCIAL REPORTS EARNINGS FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF 2024

Core Viewpoint - AmeriServ Financial, Inc. reported a net loss of $375,000 for Q2 2024, a decline from a net loss of $187,000 in Q2 2023, while net income for the first half of 2024 increased by 15.1% to $1,529,000 compared to the same period in 2023 [1][2]. Financial Performance - Q2 2024 net interest income decreased by $235,000 (2.6%) year-over-year, and for the first six months, it decreased by $1.0 million (5.4%) [2]. - The net interest margin for Q2 2024 was 2.74%, down 15 basis points from the previous year, but improved from Q4 2023 [2]. - Total non-interest income increased by $510,000 (13.2%) in Q2 2024 compared to Q2 2023, but declined slightly by $50,000 (0.5%) for the first half of 2024 [11]. Loan and Deposit Growth - Total average loans increased by approximately $43.5 million (4.4%) in both Q2 and the first six months of 2024 compared to 2023, with total loans averaging $1.030 billion [3]. - Total average deposits rose by $7.8 million (0.7%) in the first half of 2024 compared to the same period in 2023, reflecting strong customer loyalty [5]. Interest Expense and Margin - Total interest expense increased by $1.9 million (32.3%) in Q2 2024 and by $4.3 million (39.7%) for the first six months compared to the previous year [6]. - The average cost of total deposits was 2.18% in the first half of 2024, up 57 basis points from 1.61% in the same period of 2023 [7]. Credit Losses and Non-Performing Assets - The provision for credit losses was $434,000 in Q2 2024, up from $43,000 in Q2 2023, while the first half of 2024 saw a recovery of $123,000 compared to a provision of $1.2 million in the same period of 2023 [9]. - Non-performing assets increased from $12.2 million at March 31, 2024, to $12.8 million at June 30, 2024, representing 1.23% of total loans [10]. Shareholder Value and Capital Position - The book value per share increased by $0.22 (3.6%) to $6.28 as of June 30, 2024, largely due to the repurchase of shares from an activist investor [14]. - The company maintained strong capital ratios exceeding regulatory requirements as of June 30, 2024 [14].