AMERISERV FINANCIAL REPORTS EARNINGS FOR THE FIRST QUARTER OF 2025 AND ANNOUNCES QUARTERLY COMMON STOCK CASH DIVIDEND

Financial Performance - AmeriServ Financial, Inc. reported a net income of $1,908,000 for Q1 2025, a slight increase of 0.2% from $1,904,000 in Q1 2024, with diluted earnings per share rising to $0.12 from $0.11, reflecting a 9.1% increase [1][2] - The company's net interest income increased by $1.2 million, or 13.5%, year-over-year, with a net interest margin of 3.01%, up 31 basis points from the previous year [2][3] - Total average loans grew by $34.8 million, or 3.4%, compared to Q1 2024, although there was a decline of $6.1 million, or 0.6%, since December 31, 2024 [3][4] Revenue and Expenses - Total non-interest income decreased by $826,000, or 16.7%, primarily due to lower wealth management fees and other income [10] - Total non-interest expense decreased by $101,000, or 0.9%, with significant reductions in professional fees and other expenses, although salaries and employee benefits increased [11][12] - The company recorded a provision for credit losses recovery of $97,000 in Q1 2025, down from $557,000 in Q1 2024, indicating a smaller recovery [8] Balance Sheet and Capital - As of March 31, 2025, total assets were $1.4 billion, with shareholders' equity at $110.8 million, resulting in a book value of $6.70 per share, up 10.6% year-over-year [13][22] - Total average deposits increased by $58.2 million, or 5.0%, compared to Q1 2024, reflecting strong customer loyalty [5][6] - The loan to deposit ratio averaged 87.4% in Q1 2025, indicating ample capacity for loan portfolio growth [5] Market Conditions and Strategy - The company benefited from a favorable interest rate environment, with the Federal Reserve's actions in late 2024 contributing to lower costs for interest-bearing deposits [2][6] - Management anticipates continued improvement in net interest margin through 2025, supported by effective pricing strategies and controlled balance sheet growth [2][3] - The company declared a quarterly cash dividend of $0.03 per share, representing a 5.1% annualized yield based on the April 17, 2025 closing stock price [14]