AMERISERV FINANCIAL REPORTS INCREASED EARNINGS FOR THE FOURTH QUARTER AND FULL YEAR OF 2025 AND ANNOUNCES QUARTERLY COMMON STOCK CASH DIVIDEND

JOHNSTOWN, Pa., Jan. 20, 2026 /PRNewswire/ -- AmeriServ Financial, Inc. (NASDAQ: ASRV) reported fourth quarter 2025 net income of $1,442,000, or $0.09 per diluted common share. This earnings performance represented a $553,000, or 62.2%, improvement from the fourth quarter of 2024 when net income totaled $889,000, or $0.05 per diluted common share. For the year ended December 31, 2025, the Company reported net income of $5,612,000, or $0.34 per diluted common share. This represented a 61.9% increase in earnings per share from the full year 2024 when net income totaled $3,601,000, or $0.21 per diluted common share. The following table details the Company's financial performance for the three- and twelve-month periods ended December 31, 2025 and 2024:

Fourth

Quarter

2025

Fourth

Quarter

2024

Year Ended

December 31, 2025

Year Ended

December 31, 2024

Net income

1,442,000

889,000

5,612,000

3,601,000

Diluted earnings per share

0.09

0.05

0.34

0.21

Jeffrey A. Stopko, President and Chief Executive Officer, commented on the 2025 financial results: "AmeriServ Financial's improved financial performance in 2025 was driven by increased revenue which caused us to achieve earnings growth while absorbing a higher provision for credit losses which was needed to bring final resolution to our largest non-performing loan. The increase in total revenue was caused by meaningful improvement in our net interest income for both the fourth quarter and full year of 2025 because of effective balance sheet management. Specifically, our net interest margin increased by 34-basis points for the 2025 year leading to a $6.2 million increase in net interest income, which is important since this category represents approximately 70% of our total revenue. Additionally, our non-interest expense also favorably declined in 2025. We will continue to diligently focus on both revenue growth and expense control to further improve the Company's operating efficiency in 2026. Finally, both our book value per share and tangible book value (1) per share experienced growth in 2025 increasing by 11.2% to $7.22 and 12.9% to $6.39, respectively, during the past year."

All fourth quarter and full year 2025 financial performance metrics within this document are compared to the fourth quarter and full year 2024 unless otherwise noted.

Net interest income in the fourth quarter of 2025 increased by $1.4 million, or 14.6%, from the prior year's fourth quarter and, for the full year of 2025, increased by $6.2 million, or 17.2%, when compared to the full year of 2024. The Company's net interest margin of 3.23% for the fourth quarter of 2025 and 3.15% for the full year of 2025 represents a 35-basis point improvement for the quarter and a 34-basis point increase for the full year. Along with the significantly improved net interest margin performance, the increase also reflects controlled balance sheet growth, as both total earning assets and total deposits are at higher average levels due to our effective balance sheet management and business development strategies. This, combined with effective pricing strategies, resulted in both the total earning asset yield and cost of interest-bearing funds improving between years. The Federal Reserve's action to lower short-term interest rates during 2024 and 2025 favorably impacted total interest-bearing deposits and borrowings costs. Also, while the U.S. Treasury yield curve remains modestly inverted on the short end, yields in the mid to long end of the curve are higher and demonstrate a steeper upward slope which favorably impacted earning asset yields. Management believes the net interest margin will continue to improve throughout 2026 given the effective execution of our strategy. Non-interest expense increased for the fourth quarter but declined for the full year of 2025 compared to 2024 and favorably impacted full year earnings performance as management works to carefully control operating costs and gain efficiency improvements. Non-interest income in 2025 is lower for the fourth quarter and full year of 2025 when compared to both time periods of last year. The 2025 provision for credit losses compared favorably to last year for the quarter but compared unfavorably to 2024 for the full year. Overall, the Company's earnings performance for the full year of 2025 exceeds earnings for the full year of 2024 by $2.0 million, or 55.8%, and results from increased net interest income and lower total non-interest expense which more than offset the higher provision for credit losses and lower level of non-interest income.

Total average loans for the full year of 2025 grew from the full year average of 2024 by $23.7 million, or 2.3%, due to consistent new loan funding opportunities. However, in the second half of 2025, commercial real estate (CRE) loan payoff activity exceeded originations and resulted in a $35.4 million, or 3.3%, decrease in total loans since December 31, 2024. This heightened payoff activity also caused total average loans for the fourth quarter of 2025 to compare unfavorably to the 2024 fourth quarter average by $12.8 million, or 1.2%. Overall, total loans continue to be well above the $1.0 billion threshold, averaging $1.045 billion for the fourth quarter of 2025. Total loan interest income improved in both time periods of 2025 compared to 2024 due to the more favorable interest rate environment, and a portion of CRE loans, that were booked during the COVID pandemic when interest rates were low, repricing upward during 2025. Also favorably impacting loan interest income was a higher level of loan fee income primarily due to prepayment fees collected on the increased early CRE payoff activity experienced during 2025. Total 2025 full year loan fee income was $553,000, or 58.8%, higher when compared to the full year of 2024. These favorable items resulted in 2025 full year total loan interest income improving by $3.4 million, or 6.0%, when compared to the full year of 2024.

Total investment securities averaged $246.4 million for the fourth quarter of 2025, which was $14.8 million, or 6.4%, higher than the $231.6 million average for the fourth quarter of 2024. Additionally, overnight short-term investments were sharply higher by $34.6 million in the fourth quarter of 2025. These increases reflect the higher level of loan prepayment activity, as well as our liquidity position strengthening during 2025 due to deposit growth. Therefore, more funds were available to invest in the securities portfolio during a time when security yields improved, making purchases more attractive. As a result, the securities portfolio grew by $29.0 million, or 13.2%, since December 31, 2024. New investment security purchases were also necessary to replace cash flow from maturing securities to maintain appropriate balances for pledging purposes related to public fund deposits. The higher balances and improved yields for new securities purchases caused interest income from investments to increase by $744,000, or 31.2%, for the fourth quarter and by $1.4 million, or 14.9%, for the full year of 2025 compared to last year. Overall, the full year average balance of total interest earning assets increased from last year's full year average by $46.4 million, or 3.6%, while total interest income increased by $4.8 million, or 7.3%, from the 2024 year.

On the liability side of the balance sheet, total average deposits for the full year of 2025 were $67.3 million, or 5.8%, higher when compared to the full year average of 2024 due to the Company's successful business development efforts. Additionally, the Company's core deposit base continues to demonstrate the strength and stability that it has for many years due to customer loyalty and confidence in AmeriServ Financial Bank. The Company does not utilize brokered deposits as a funding source. The loan to deposit ratio averaged 83.8% in the fourth quarter of 2025, which indicates that the Company has ample capacity to continue to grow its loan portfolio and is well positioned to support our customers and our community during times of economic volatility.

Total interest expense favorably decreased by $295,000, or 3.9%, for the fourth quarter of 2025 and decreased by $1.4 million, or 4.5%, for the full year when compared to both time periods of 2024. Deposit interest expense increased slightly by $23,000, or 0.1%, for the full year of 2025 despite total average interest-bearing deposits growing significantly by $71.7 million, or 7.2%, compared to the full year of 2024. The small increase in deposit interest expense reflects the benefit of the Federal Reserve easing monetary policy during the final four months of 2024 and the latter portion of 2025. This reduction in interest-bearing deposit costs contributed to the previously mentioned improvement in the net interest margin. The Federal Reserve's action to ease monetary policy by another 75-basis points at their final three Federal Open Market Committee meetings in 2025 is anticipated to continue to have a favorable impact on interest bearing deposit costs as we move into 2026. Overall, total deposit cost (including the benefit of non-interest-bearing demand deposits) averaged 2.06% for the full year of 2025, which is a 12-basis point improvement from the full year of 2024.

Total borrowings interest expense decreased by $340,000, or 28.8%, for the fourth quarter of 2025 and declined by $1.4 million, or 27.7%, for the full year when compared to both time periods of 2024. The Company's utilization of overnight borrowed funds for the full year of 2025 was significantly lower than it was for the full year of 2024, resulting in the full year average decreasing by $22.4 million, or 80.1%, due to the higher level of total average deposits. The decrease in borrowings interest expense also reflects the Federal Reserve's 2024 action to ease monetary policy by 100-basis points as well as their 2025 action to ease monetary policy by an additional 75-basis points which had an immediate and favorable impact on the cost of overnight borrowed funds.

The Company recorded a $724,000 provision for credit losses in the fourth quarter of 2025 after recording a $1.1 million provision in the fourth quarter of 2024, resulting in a decrease in provision expense of $334,000, or 31.6%. The provision for credit losses in the fourth quarter was needed due to charge-off and charge-down activity within both the commercial & industrial (C&I) and CRE loan portfolios. For the full year of 2025, the Company recognized a $4.1 million provision for credit losses after recognizing an $884,000 provision for credit losses for the full year of 2024, resulting in an unfavorable increase of $3.2 million. The significant increase in the provision for credit losses for the full year primarily related to a $3.1 million charge-off in 2025 that was necessary to resolve the Company's largest problem CRE loan.

Non-performing assets decreased meaningfully since September 30, 2025, by $6.4 million, or 43.0%, and totaled $8.5 million. The decrease reflects workout efforts and the charge-down of one C&I relationship as well as the payoff and final resolution of our largest problem loan. Non-performing loans represented 0.80% of total loans at December 31, 2025, and decreased by 59-basis points from September 30, 2025. The Company recognized net loan charge-offs of $1.9 million, or 0.74% of total average loans, in the fourth quarter of 2025 compared to net loan charge-offs of $1.5 million, or 0.58% of total average loans, in the fourth quarter of 2024. For the full year, the Company recognized net loan charge-offs of $4.9 million, or 0.46% of total average loans, in 2025 compared to net loan charge-offs of $2.0 million, or 0.19% of total average loans, in 2024. Overall, the Company's allowance for loan credit losses provided 158% coverage of non-performing loans and 1.27% of total loans at December 31, 2025.

Total non-interest income in the fourth quarter of 2025 decreased by $82,000, or 1.8%, from the prior year's fourth quarter and declined by $986,000, or 5.5%, for the full year of 2025 when compared to the full year of 2024. Wealth management fees improved by $122,000, or 4.1%, for the quarter but were lower for the full year by $758,000, or 6.2%. The decrease in wealth management fees for the full year is attributed to the volatility and uncertainty that existed in the financial markets due to government fiscal policy, particularly earlier in 2025 and a net loss of accounts in the first half of the year. Additionally, the Financial Services division benefited from several large new business cases in 2024. The quarter over quarter favorable variance is due to the rebound in equity markets after the first quarter of 2025 market decline and resulted in management fees improving as the year progressed. Overall, the fair market value of wealth management assets totaled $2.7 billion at December 31, 2025 and increased by $122.5 million, or 4.8%, since December 31, 2024. Also, contributing to the unfavorable comparison for total non-interest income in the full year was a lower level of other income by $400,000, or 12.9%, after the Company recognized a $250,000 signing bonus from the renewal of a contract with Visa in the first quarter of 2024 while there was no such bonus in 2025. The remaining portion of the decrease to other income for the full year and the fourth quarter of 2025 was due to the Company recognizing a more favorable adjustment in 2024 to the fair market value of an interest rate swap related risk participation agreement as well as the credit valuation adjustment to the market value of the interest rate swap contracts. Mortgage banking revenue was lower by $120,000, or 39.5%, for the full year and resulted from a decreased level of residential mortgage production in 2025. Positively impacting non-interest income in 2025 was a higher level of BOLI revenue by $217,000, or 20.3%, for the full year due to the Company receiving three death claims during the year. Finally, the Company recognized gains on trading securities of $28,000 for the quarter and $118,000 for the full year from a trading account established in the second quarter of 2025.

Total non-interest expense in the fourth quarter of 2025 increased by $1.0 million, or 8.8%, when compared to the fourth quarter of 2024 but decreased by $404,000, or 0.8%, for the full year of 2025 when compared to the full year of 2024. Professional fees increased by $670,000, or 74.8%, for the quarter but were $1.0 million, or 21.5%, lower for the full year. The unfavorable comparison in professional fees for the quarter was due to additional expense related to an amended and restated consulting agreement with SB Value Partners that expands the nature and scope of the consulting services provided to the Company. Details of this revised agreement were provided in the Company's Current Report on Form 8-K filed on January 7, 2026. The favorable full year comparison for professional fees occurred as legal and professional services costs were unfavorably impacted by litigation and responses to the actions of an activist investor in 2024. This matter was resolved in June 2024 as a result of a Settlement Agreement. Salaries & employee benefits increased by $283,000, or 4.0%, for the fourth quarter and $552,000, or 1.9%, compared to the full year of 2024. Within this broad category for the full year, health care costs are $355,000, or 10.6%, higher as the Company did not have to recognize any premium costs in January 2024 due to the effective negotiations with our health care provider last year. Total salaries increased by $668,000, or 3.3%, due primarily to annual salary merit increases. Additionally, helping to offset the higher costs within total salaries & employee benefits were reduced levels of incentive compensation by $405,000, or 27.6%, in the wealth management and commercial lending divisions. Finally, data processing and IT expenses were $138,000, or 2.9%, higher for the full year of 2025 when compared to last year due to additional expenses related to monitoring our computing and network environment.

The Company recorded income tax expense of $1.2 million in 2025, or an effective tax rate of 17.4%, which compares to income tax expense of $798,000, or an effective tax rate of 18.1%, in 2024. The lower effective tax rate in 2025 was caused by additional tax-free income from BOLI.

The Company had total assets of $1.45 billion, shareholders' equity of $119.3 million, a book value of $7.22 per common share and a tangible book value (1) of $6.39 per common share on December 31, 2025. Book value per common share increased by $0.73, or 11.2%, and tangible book value per common share also increased by $0.73, or 12.9%, since December 31, 2024, due to a favorable adjustment for both the unrealized loss on available for sale securities and the Company's defined benefit pension plan along with the Company's improved earnings. The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status as of December 31, 2025.

QUARTERLY COMMON STOCK DIVIDEND

The Company's Board of Directors declared a $0.03 per share quarterly common stock cash dividend. The cash dividend is payable February 17, 2026 to shareholders of record on February 2, 2026. This cash dividend represents a 3.7% annualized yield using the January 16, 2026 closing stock price of $3.22 and a 35.3% payout ratio based upon 2025 full year earnings.

Forward-Looking Statements

This press release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology, market conditions, dividend program, and future payment obligations. These statements may be identified by such forward-looking terminology as "continuing," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy," or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in the financial markets, the level of inflation, and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; competition levels; loan and investment prepayments differing from our assumptions; insufficient allowance for credit losses; a higher level of loan charge-offs and delinquencies than anticipated; material adverse changes in our operations or earnings; a decline in the economy in our market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; a decrease in loan origination volume or an inability to close loans currently in the pipeline; changes in laws and regulations; adoption, interpretation and implementation of accounting pronouncements; operational risks, including the risk of fraud by employees, customers or outsiders; unanticipated effects to our banking platform, including risks and unanticipated costs related to a core system migration; and the inability to successfully implement or expand new lines of business or new products and services. These forward-looking statements involve risks and uncertainties that could cause AmeriServ's results to differ materially from management's current expectations. Such risks and uncertainties are detailed in AmeriServ's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024. Forward-looking statements are based on the beliefs and assumptions of AmeriServ's management and on currently available information. The statements in this press release are made as of the date of this press release, even if subsequently made available by AmeriServ on its website or otherwise. AmeriServ undertakes no responsibility to publicly update or revise any forward-looking statement.

(1) Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial Measures" at end of release.

AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

SUPPLEMENTAL FINANCIAL PERFORMANCE DATA

December 31, 2025

(Dollars in thousands, except per share and ratio data)

(Unaudited)

2025

1QTR

2QTR

3QTR

4QTR

FULL YEAR

2025

PERFORMANCE DATA FOR THE PERIOD:

Net income (loss)

1,908

(282)

2,544

1,442

5,612

PERFORMANCE PERCENTAGES (annualized):

Return on average assets

0.54

(0.08)

0.70

0.39

Return on average equity

7.12

(1.02)

9.06

4.96

5.03

Return on average tangible common equity (1)

8.14

(1.16)

10.32

5.63

5.73

Net interest margin

3.01

3.10

3.27

3.23

3.15

Net charge-offs (recoveries) as a percentage of average loans

0.02

1.09

(0.01)

0.74

0.46

Efficiency ratio (3)

83.67

80.73

77.55

84.14

81.47

EARNINGS PER COMMON SHARE:

Basic

0.12

(0.02)

0.15

0.09

0.34

Average number of common shares outstanding

16,519

16,521

16,520

Diluted

0.12

(0.02)

0.15

0.09

0.34

Average number of common shares outstanding

16,519

16,562

16,530

Cash dividends paid per share

0.03

0.12

2024

1QTR

2QTR

3QTR

4QTR

FULL YEAR

2024

PERFORMANCE DATA FOR THE PERIOD:

Net income (loss)

1,904

(375)

1,183

889

3,601

PERFORMANCE PERCENTAGES (annualized):

Return on average assets

0.55

(0.11)

0.34

0.25

0.26

Return on average equity

7.51

(1.47)

4.51

3.30

3.46

Return on average tangible common equity (1)

8.67

(1.70)

5.19

3.78

3.98

Net interest margin

2.70

2.74

2.71

2.88

2.81

Net charge-offs (recoveries) as a percentage of average loans

0.05

0.08

0.06

0.58

0.19

Efficiency ratio (3)

86.60

100.33

89.49

84.71

90.18

EARNINGS PER COMMON SHARE:

Basic

0.11

(0.02)

0.07

0.05

0.21

Average number of common shares outstanding

17,147

17,030

16,519

16,802

Diluted

0.11

(0.02)

0.07

0.05

0.21

Average number of common shares outstanding

17,147

17,030

16,519

16,802

Cash dividends paid per share

0.03

0.12

AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

--CONTINUED--

(Dollars in thousands, except per share, statistical, and ratio data)

(Unaudited)

2025

1QTR

2QTR

3QTR

4QTR

FINANCIAL CONDITION DATA AT PERIOD END:

Assets

1,431,524

1,448,733

1,461,494

1,453,813

Short-term investments/overnight funds

3,865

4,805

39,098

39,418

Investment securities, net of allowance for credit losses - securities

231,454

237,320

236,740

248,484

Trading securities

4,205

4,462

7,253

Total loans and loans held for sale, net of unearned income

1,062,326

1,069,220

1,055,683

1,032,968

Allowance for credit losses - loans

13,812

14,060

14,408

13,128

Intangible assets

13,682

13,677

13,672

13,667

Deposits

1,216,838

1,244,533

1,258,588

1,248,128

Short-term and FHLB borrowings

63,121

51,611

48,023

44,615

Subordinated debt, net

26,736

26,747

26,757

26,767

Shareholders' equity

110,759

110,921

114,575

119,312

Non-performing assets

14,971

16,419

14,953

8,518

Tangible common equity ratio (1)

6.85

6.78

6.97

7.34

Total capital (to risk weighted assets) ratio

12.73

12.50

12.97

13.30

PER COMMON SHARE:

Book value

6.70

6.71

6.94

7.22

Tangible book value (1)

5.88

5.89

6.11

6.39

Market value (2)

2.43

3.04

2.90

3.19

Wealth management assets – fair market value (4)

2,486,920

2,583,839

2,661,214

2,681,678

STATISTICAL DATA AT PERIOD END:

Full-time equivalent employees

298

309

306

298

Branch locations

Common shares outstanding

16,519,267

16,522,267

2024

1QTR

2QTR

3QTR

4QTR

FINANCIAL CONDITION DATA AT PERIOD END:

Assets

1,384,516

1,403,438

1,405,187

1,422,362

Short-term investments/overnight funds

3,353

2,925

4,877

3,855

Investment securities, net of allowance for credit losses - securities

230,419

230,425

230,042

219,457

Trading securities

Total loans and loans held for sale, net of unearned income

1,026,586

1,039,258

1,040,421

1,068,409

Allowance for credit losses - loans

14,639

14,611

14,420

13,912

Intangible assets

13,705

13,699

13,693

13,688

Deposits

1,176,578

1,170,359

1,189,330

1,200,995

Short-term and FHLB borrowings

60,858

85,495

66,312

70,700

Subordinated debt, net

26,695

26,706

26,716

26,726

Shareholders' equity

103,933

103,661

108,182

107,248

Non-performing assets

12,161

12,817

12,657

13,657

Tangible common equity ratio (1)

6.58

6.47

6.79

6.64

Total capital (to risk weighted assets) ratio

13.10

12.77

12.87

12.70

PER COMMON SHARE:

Book value

6.06

6.28

6.55

6.49

Tangible book value (1)

5.26

5.45

5.72

5.66

Market value (2)

2.60

2.26

2.61

2.68

Wealth management assets – fair market value (4)

2,603,493

2,580,402

2,603,856

2,559,155

STATISTICAL DATA AT PERIOD END:

Full-time equivalent employees

304

310

302

Branch locations

Common shares outstanding

17,147,270

16,519,267

_________________________________________

NOTES:

(1)

Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial Measures" at end of release.

(2)

Based on closing price reported by the principal market on which the share is traded on the last business day of the corresponding reporting period.

(3)

Ratio calculated by dividing total non-interest expense by tax equivalent net interest income plus total non-interest income.

(4)

Not recognized on the consolidated balance sheets.

AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

CONSOLIDATED STATEMENT OF INCOME

(Dollars in thousands)

(Unaudited)

2025

1QTR

2QTR

3QTR

4QTR

FULL YEAR

2025

INTEREST INCOME

Interest and fees on loans

14,508

14,932

15,688

15,032

60,160

Interest on investments

2,514

2,757

2,795

3,128

11,194

Total Interest Income

17,022

17,689

18,483

18,160

71,354

INTEREST EXPENSE

Deposits

6,124

6,408

6,549

6,390

25,471

All borrowings

967

887

927

839

3,620

Total Interest Expense

7,091

7,295

7,476

7,229

29,091

NET INTEREST INCOME

9,931

10,394

11,007

10,931

42,263

Provision (recovery) for credit losses

(97)

3,133

360

724

4,120

NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES

10,028

7,261

10,647

10,207

38,143

NON-INTEREST INCOME

Wealth management fees

2,864

2,782

2,849

3,065

11,560

Service charges on deposit accounts

275

267

303

300

1,145

Mortgage banking revenue

184

Gain on trading securities

118

Bank owned life insurance

264

244

533

243

1,284

Other income

690

710

622

676

2,698

Total Non-Interest Income

4,121

4,096

4,401

4,371

16,989

NON-INTEREST EXPENSE

Salaries and employee benefits

7,223

7,076

7,317

7,323

28,939

Net occupancy expense

841

746

705

692

2,984

Equipment expense

390

404

376

389

1,559

Professional fees

685

903

601

1,566

3,755

Data processing and IT expense

1,252

1,153

1,247

1,301

4,953

FDIC deposit insurance expense

240

260

247

987

Other expense

1,132

1,187

1,458

1,382

5,159

Total Non-Interest Expense

11,763

11,709

11,964

12,900

48,336

PRETAX INCOME (LOSS)

2,386

(352)

3,084

1,678

6,796

Income tax expense (benefit)

478

(70)

540

236

1,184

NET INCOME (LOSS)

1,908

(282)

2,544

1,442

5,612

2024

1QTR

2QTR

3QTR

4QTR

FULL YEAR

2024

INTEREST INCOME

Interest and fees on loans

13,776

14,003

14,301

14,679

56,759

Interest on investments

2,448

2,507

2,407

2,384

9,746

Total Interest Income

16,224

16,510

16,708

17,063

66,505

INTEREST EXPENSE

Deposits

6,199

6,389

6,515

6,345

25,448

All borrowings

1,278

1,246

1,306

1,179

5,009

Total Interest Expense

7,477

7,635

7,821

7,524

30,457

NET INTEREST INCOME

8,747

8,875

8,887

9,539

36,048

Provision (recovery) for credit losses

(557)

434

(51)

1,058

884

NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES

9,304

8,441

8,938

8,481

35,164

NON-INTEREST INCOME

Wealth management fees

3,266

3,059

3,050

2,943

12,318

Service charges on deposit accounts

293

304

298

1,188

Mortgage banking revenue

107

304

Gain on trading securities

Bank owned life insurance

337

240

244

246

1,067

Other income

1,012

673

520

893

3,098

Total Non-Interest Income

4,947

4,372

4,203

4,453

17,975

NON-INTEREST EXPENSE

Salaries and employee benefits

7,117

7,108

7,122

7,040

28,387

Net occupancy expense

791

730

706

741

2,968

Equipment expense

386

391

371

391

1,539

Professional fees

1,002

2,094

792

896

4,784

Data processing and IT expense

1,159

1,142

1,287

1,227

4,815

FDIC deposit insurance expense

255

250

255

261

1,021

Other expense

1,154

1,582

1,188

1,302

5,226

Total Non-Interest Expense

11,864

13,297

11,721

11,858

48,740

PRETAX INCOME (LOSS)

2,387

(484)

1,420

1,076

4,399

Income tax expense (benefit)

483

(109)

237

187

798

NET INCOME (LOSS)

1,904

(375)

1,183

889

3,601

AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

AVERAGE BALANCE SHEET DATA

(Dollars in thousands)

(Unaudited)

2025

2024

4QTR

TWELVE

MONTHS

4QTR

TWELVE

MONTHS

Interest earning assets:

Loans and loans held for sale, net of unearned income

1,045,475

1,061,417

1,058,273

1,037,734

Short-term investments and bank deposits

38,509

18,567

3,908

3,853

Investment securities

246,448

240,771

231,641

236,683

Trading securities

5,924

3,923

Total interest earning assets

1,336,356

1,324,678

1,293,822

1,278,270

Non-interest earning assets:

Cash and due from banks

14,528

15,305

14,695

14,333

Premises and equipment

17,506

17,672

18,628

18,610

Other assets

100,414

102,531

101,607

100,845

Allowance for credit losses

(14,671)

(14,868)

(15,026)

(15,310)

Total assets

1,454,133

1,445,318

1,413,726

1,396,748

Interest bearing liabilities:

Interest bearing deposits:

Interest bearing demand

242,071

249,972

233,474

225,741

Savings

121,251

121,945

119,342

120,231

Money market

342,221

324,166

319,415

314,138

Other time

374,631

365,700

337,073

330,013

Total interest bearing deposits

1,080,174

1,061,783

1,009,304

990,123

Borrowings:

Short-term borrowings

3,028

5,555

21,209

27,963

Advances from Federal Home Loan Bank

46,680

50,017

54,348

51,590

Subordinated debt

27,000

Lease liabilities

3,967

4,092

4,297

4,337

Total interest bearing liabilities

1,160,849

1,148,447

1,116,158

1,101,013

Non-interest bearing liabilities:

Demand deposits

168,070

174,295

178,457

178,686

Other liabilities

9,974

10,970

11,896

12,973

Shareholders' equity

115,240

111,606

107,215

104,076

Total liabilities and shareholders' equity

1,454,133

1,445,318

1,413,726

1,396,748

AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

CHANGES IN SHAREHOLDERS' EQUITY

(Dollars in thousands)

(Unaudited)

2025

COMMON

STOCK

TREASURY

STOCK

SURPLUS

RETAINED

EARNINGS

ACCUMULATED

OTHER

COMPREHENSIVE

(LOSS) INCOME

TOTAL

Balance at December 31, 2024

268

(84,791)

146,372

60,482

(15,083)

107,248

Net income

1,908

Adjustment for unrealized gain on available for sale securities

2,124

Market value adjustment for interest rate hedge

(25)

Common stock cash dividend

(496)

Balance at March 31, 2025

268

(84,791)

146,372

61,894

(12,984)

110,759

Net loss

(282)

Adjustment for unrealized gain on available for sale securities

901

Market value adjustment for interest rate hedge

Common stock cash dividend

(495)

Balance at June 30, 2025

268

(84,791)

146,372

61,117

(12,045)

110,921

Net income

2,544

Adjustment for unrealized gain on available for sale securities

1,610

Market value adjustment for interest rate hedge

(5)

Common stock cash dividend

(495)

Balance at September 30, 2025

268

(84,791)

146,372

63,166

(10,440)

114,575

Net income

1,442

Exercise of stock options and stock option expense

Common stock issuable

691

Adjustment for defined benefit pension plan

2,215

Adjustment for unrealized gain on available for sale securities

843

Market value adjustment for interest rate hedge

Common stock cash dividend

(496)

Balance at December 31, 2025

268

(84,791)

147,072

64,112

(7,349)

119,312

2024

COMMON

STOCK

TREASURY

STOCK

SURPLUS

RETAINED

EARNINGS

ACCUMULATED

OTHER

COMPREHENSIVE

(LOSS) INCOME

TOTAL

Balance at December 31, 2023

268

(83,280)

146,364

58,901

(19,976)

102,277

Net income

1,904

Exercise of stock options and stock option expense

Adjustment for defined benefit pension plan

(131)

Adjustment for unrealized loss on available for sale securities

(241)

Market value adjustment for interest rate hedge

630

Common stock cash dividend

(514)

Balance at March 31, 2024

268

(83,280)

146,372

60,291

(19,718)

103,933

Net loss

(375)

Treasury stock, purchased at cost

(1,511)

Adjustment for defined benefit pension plan

2,177

Adjustment for unrealized loss on available for sale securities

(119)

Market value adjustment for interest rate hedge

Common stock cash dividend

(515)

Balance at June 30, 2024

268

(84,791)

146,372

59,401

(17,589)

103,661

Net income

1,183

Adjustment for defined benefit pension plan

753

Adjustment for unrealized gain on available for sale securities

3,966

Market value adjustment for interest rate hedge

(886)

Common stock cash dividend

(495)

Balance at September 30, 2024

268

(84,791)

146,372

60,089

(13,756)

108,182

Net income

889

Adjustment for defined benefit pension plan

1,479

Adjustment for unrealized loss on available for sale securities

(3,208)

Market value adjustment for interest rate hedge

402

Common stock cash dividend

(496)

Balance at December 31, 2024

268

(84,791)

146,372

60,482

(15,083)

107,248

AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

RETURN ON AVERAGE TANGIBLE COMMON EQUITY, TANGIBLE COMMON EQUITY RATIO, AND TANGIBLE BOOK VALUE PER SHARE

(Dollars in thousands, except share, per share, and ratio data)

(Unaudited)

The press release contains certain financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures are "return on average tangible common equity", "tangible common equity ratio", and "tangible book value per share". This non-GAAP disclosure has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. These non-GAAP measures are used by management in their analysis of the Company's performance or, management believes, facilitate an understanding of the Company's performance. We also believe that presenting non-GAAP financial measures provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends.

2025

1QTR

2QTR

3QTR

4QTR

FULL YEAR

2025

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Net income (loss)

1,908

(282)

2,544

1,442

5,612

Average shareholders' equity

108,706

110,939

111,470

115,240

111,606

Less: Average intangible assets

13,684

13,679

13,674

13,669

13,676

Average tangible common equity

95,022

97,260

97,796

101,571

97,930

Return on average tangible common equity (annualized)

8.14

(1.16)

10.32

5.63

5.73

1QTR

2QTR

3QTR

4QTR

TANGIBLE COMMON EQUITY

Total shareholders' equity

110,759

110,921

114,575

119,312

Less: Intangible assets

13,682

13,677

13,672

13,667

Tangible common equity

97,077

97,244

100,903

105,645

TANGIBLE ASSETS

Total assets

1,431,524

1,448,733

1,461,494

1,453,813

Less: Intangible assets

13,682

13,677

13,672

13,667

Tangible assets

1,417,842

1,435,056

1,447,822

1,440,146

Tangible common equity ratio

6.85

6.78

6.97

7.34

Total shares outstanding

16,519,267

16,522,267

Tangible book value per share

5.88

5.89

6.11

6.39

2024

1QTR

2QTR

3QTR

4QTR

FULL YEAR

2024

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Net income (loss)

1,904

(375)

1,183

889

3,601

Average shareholders' equity

101,997

102,677

104,416

107,215

104,076

Less: Average intangible assets

13,708

13,701

13,695

13,690

13,699

Average tangible common equity

88,289

88,976

90,721

93,525

90,377

Return on average tangible common equity (annualized)

8.67

(1.70)

5.19

3.78

3.98

1QTR

2QTR

3QTR

4QTR

TANGIBLE COMMON EQUITY

Total shareholders' equity

103,933

103,661

108,182

107,248

Less: Intangible assets

13,705

13,699

13,693

13,688

Tangible common equity

90,228

89,962

94,489

93,560

TANGIBLE ASSETS

Total assets

1,384,516

1,403,438

1,405,187

1,422,362

Less: Intangible assets

13,705

13,699

13,693

13,688

Tangible assets

1,370,811

1,389,739

1,391,494

1,408,674

Tangible common equity ratio

6.58

6.47

6.79

6.64

Total shares outstanding

17,147,270

16,519,267

Tangible book value per share

5.26

5.45

5.72

5.66

SOURCE AmeriServ Financial, Inc.