AMERISERV FINANCIAL REPORTS EARNINGS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2024 AND ANNOUNCES QUARTERLY COMMON STOCK CASH DIVIDEND

Financial Performance - AmeriServ Financial, Inc. reported a net income of $1,183,000 for Q3 2024, representing an 82.8% increase from $647,000 in Q3 2023. Earnings per diluted share rose from $0.04 to $0.07 [1] - For the nine-month period ending September 30, 2024, net income was $2,712,000, a 33.3% increase from $1,975,000 in the same period of 2023, with earnings per diluted share increasing from $0.12 to $0.16 [1] Revenue and Income Sources - Total non-interest income accounted for 34% of total revenue for the first nine months of 2024, with wealth management contributing significantly to revenue growth [1] - Net interest income for Q3 2024 increased by $88,000, or 1.0%, compared to Q3 2023, but decreased by $922,000, or 3.4%, for the nine months of 2024 compared to the same period in 2023 [2] Loan and Deposit Growth - Total average loans increased by $38.9 million, or 3.9%, in Q3 2024 and by $41.9 million, or 4.2%, for the nine months of 2024 compared to 2023 [3] - Total average deposits rose by $10.5 million, or 0.9%, for the nine months of 2024 compared to the same period in 2023, reflecting successful business development efforts [5] Interest Expense and Margin - Total interest expense increased by $1.2 million, or 17.8%, for Q3 2024, and by $5.5 million, or 31.3%, for the nine months of 2024 compared to the previous year, primarily due to higher deposit and borrowings interest expense [6] - The net interest margin for Q3 2024 was 2.71%, a decrease of 5 basis points from the previous year, while the nine-month margin was 2.72%, down 17 basis points [2] Credit Losses and Non-Performing Assets - The company recorded a provision for credit losses recovery of $51,000 in Q3 2024, compared to a provision expense of $189,000 in Q3 2023, resulting in a net favorable change of $240,000 [9] - Non-performing assets decreased to $12.7 million, with non-performing loans at 1.12% of total loans [10] Non-Interest Expense Management - Total non-interest expense decreased by $374,000, or 3.1%, in Q3 2024 compared to Q3 2023, and by $353,000, or 0.9%, for the nine months of 2024 compared to the same period in 2023 [12] - Salaries and employee benefits expense decreased by $914,000, or 4.1%, for the nine months of 2024 due to strategic cost management [12] Capital and Shareholder Returns - The company declared a quarterly cash dividend of $0.03 per share, representing a 4.01% annualized yield based on the closing stock price of $2.99 on October 18, 2024 [16] - As of September 30, 2024, the company had total assets of $1.4 billion and shareholders' equity of $108.2 million, with a tangible book value per share of $5.72, reflecting a 10.9% increase since December 31, 2023 [15]