AMERISERV FINANCIAL REPORTS EARNINGS FOR THE FULL YEAR OF 2024 AND ANNOUNCES QUARTERLY COMMON STOCK CASH DIVIDEND

Rhea-AI Summary

AmeriServ Financial (NASDAQ: ASRV) reported net income of $3.6 million ($0.21 per diluted share) for 2024, compared to a net loss of $3.3 million in 2023. The fourth quarter 2024 saw net income of $889,000 ($0.05 per share), versus a loss of $5.3 million in Q4 2023.

Key highlights include total loan growth of $30 million (2.9%) and deposit increase of $43 million (3.7%) for 2024. Net interest income rose by $950,000 (11.1%) in Q4 2024, with net interest margin improving to 2.88%. The company's wealth management business performed strongly, with assets reaching $2.6 billion, up $37.7 million from 2023.

The company's tangible book value increased by 11.4% to $5.75 per share. The Board declared a quarterly cash dividend of $0.03 per share, payable February 18, 2025, representing a 4.35% annualized yield.

Positive

• Net income improved to $3.6M in 2024 from -$3.3M loss in 2023
• Loan portfolio grew by $30M (2.9%) in 2024
• Deposits increased by $43M (3.7%) in 2024
• Net interest income up 11.1% in Q4 2024
• Wealth management assets grew to $2.6B, up $37.7M YoY
• Tangible book value per share increased 11.4% to $5.75

Negative

• Non-performing assets increased to $13.7M, representing 1.18% of total loans
• Full-year deposit costs increased to 2.18% from 1.82% in 2023
• FDIC insurance costs increased by 42.8%
• Incurred $1.5M in activist-related costs in 2024

Insights

Financial Analyst

AmeriServ Financial's Q4 and FY2024 results demonstrate a significant turnaround from 2023's losses. The company posted $889,000 net income in Q4 2024 (vs. -$5.32M in Q4 2023) and $3.6M for FY2024 (vs. -$3.35M in FY2023). Key improvements include:

• Loan growth of $30M (2.9%) and deposit growth of $43M (3.7%) in 2024
• Net interest margin improved 17 basis points sequentially in Q4
• Wealth management contributed significantly, representing 33% of total revenue
• Tangible book value increased 11.4% to $5.75 per share

The improved performance stems from lower credit loss provisions, better revenue and reduced expenses. The bank's strong deposit base and 89.1% loan-to-deposit ratio indicate solid fundamentals and growth capacity.

Market Research Analyst

The positive earnings turnaround signals effective management of interest rate challenges and operational efficiency. Notable market positioning aspects include:

• Strong wealth management division with $2.6B in assets, up $37.7M YoY
• Strategic reduction in borrowing costs through Federal Home Loan Bank advances
• Improved asset quality with loan loss coverage at 127% of non-performing loans
• Successful resolution of activist investor situation with Driver Opportunity Partners

The $0.03 quarterly dividend, yielding 4.35%, demonstrates management's confidence in sustained profitability.

JOHNSTOWN, Pa., Jan. 21, 2025 /PRNewswire/ -- AmeriServ Financial, Inc. (NASDAQ: ASRV) reported fourth quarter 2024 net income of $889,000, or $0.05 per diluted common share. This compares to a net loss for the fourth quarter of 2023 of $5,321,000, or $0.31 per diluted common share. For the year ended December 31, 2024, the Company reported net income of $3,601,000, or $0.21 per diluted common share. This compares to a net loss of $3,346,000, or $0.20 per diluted common share, for the full year of 2023. The following table details the Company's financial performance for both the three- and twelve-month periods ended December 31, 2024 and 2023:

		Fourth Quarter  2024			Fourth Quarter  2023			Year Ended December 31, 2024			Year Ended December 31, 2023
Net income (loss)		$	889,000		$	(5,321,000)		$	3,601,000		$	(3,346,000)
Diluted earnings per share		$	0.05		$	(0.31)		$	0.21		$	(0.20)

Jeffrey A. Stopko, President and Chief Executive Officer, commented on the 2024 financial results: "We concluded 2024 with positive momentum driven by our strongest quarterly loan and deposit growth during the fourth quarter. Total loans grew by $30 million, or 2.9%, and deposits increased by $43 million, or 3.7%, for the full year of 2024. We also saw solid growth in net interest income as our fourth quarter net interest margin increased by 17 basis points on a sequential basis. We believe that our balance sheet is well positioned for further quarterly net interest income growth and net interest margin improvement in 2025. Our community banking business also continued to benefit from diversified revenue streams, with strong revenue and profit contribution from our wealth management business which caused total non-interest income to represent 33% of total revenue for 2024.  Finally, because of the changing interest rate environment and effective capital management, our tangible book value per share increased by 11.4% to $5.75(1) during the 2024 year."

All fourth quarter and full year 2024 financial performance metrics within this document are compared to the fourth quarter and full year 2023 unless otherwise noted.

The Company's net interest income in the fourth quarter of 2024 increased by $950,000, or 11.1%, from the prior year's fourth quarter and, for the full year 2024, increased by $28,000, or 0.1%, when compared to the full year 2023.  The Company's net interest margin of 2.88% for the fourth quarter 2024 and 2.81% for the full year 2024 represents a 25-basis point increase for the quarter but a 5-basis point decrease for the full year.  The decrease for the full year reflects net interest margin compression which existed for most of 2024 due to inversion in the U.S. Treasury yield curve. However, after demonstrating relative stability through the first three quarters of 2024, the net interest margin percentage improved meaningfully since the third quarter of 2024 by 17-basis points.  With the Federal Reserve's action to ease monetary policy beginning in September 2024 and continuing through the end of the year, the net interest margin improved as the U.S. Treasury yield curve became less inverted in the short end and began to exhibit a more normal shape in the mid to longer portion of the curve.  Because of this favorable change to national interest rates and the Company's balance sheet positioning, management believes the net interest margin will continue to improve through 2025. Earnings performance was also favorably impacted by the Company benefitting from a significantly lower provision for credit losses in both the fourth quarter and full year 2024.  Both total non-interest income and non-interest expense demonstrated improvement in both time periods compared to what was experienced in 2023.  Overall, earnings improvement for the quarter and full year 2024 was driven by the favorable comparison in the provision for credit losses, improved total revenue and lower non-interest expense.

Total average loans in the fourth quarter and full year 2024 are higher than the 2023 average by $36.3 million, or 3.6%, and $40.5 million, or 4.1%, respectively.  In 2024, new loan originations exceeded payoff activity, resulting in total loans, on an end of period basis, demonstrating growth of $30.0 million, or 2.9%, since December 31, 2023.  Loan originations were strongest in the fourth quarter of 2024 and more than doubled payoff activity.  Overall, total loans averaged $1.058 billion for the fourth quarter of 2024.  Total loan interest income improved in both time periods between years due to the higher national interest rate environment during 2024, the increased level of average total loans outstanding, and, also, a portion of CRE loans, that were booked at the onset of the COVID pandemic when interest rates were low, repriced upward during the fourth quarter of 2024.  These favorable items resulted in total loan interest income improving by $1.1 million, or 8.0%, for the fourth quarter and by $5.1 million, or 9.9%, for the full year when compared to both time periods of last year.

Total investment securities averaged $253.5 million for the full year 2024, which was $8.7 million, or 3.3%, lower than the $262.2 million average for the full year 2023.  The decrease reflects management's strategy to allocate more cash flow from the securities portfolio to higher yielding loans while the Company controlled the amount of high cost overnight borrowed funds.  Thus, new investment security purchases were primarily used to replace cash flow from maturing securities to maintain appropriate balances for pledging purposes related to public fund deposits. The improved yields for new securities purchases, along with management's execution of an investment portfolio repositioning strategy in late December 2023, caused interest income from investments to increase by $514,000, or 5.6%, for the full year 2024 compared to the full year 2023. Overall, the full year average balance of total interest earning assets increased from last year's full year average by $31.8 million, or 2.5%, while total interest income increased by $5.6 million, or 9.3%, from the full year 2023.

On the liability side of the balance sheet, full year 2024 total average deposits were $15.0 million, or 1.3%, higher while total average deposits in the fourth quarter of 2024 were $28.3 million, or 2.4%, higher when compared to 2023.  The increase reflects the Company's successful business development efforts, which more than offset a portion of the funds leaving the balance sheet from normal deposit run-off caused by greater pricing competition in the market to retain deposits because of the interest rate environment.  The Company's core deposit base continued to demonstrate the strength and stability that it has for many years.  On December 31, 2024, total deposits grew by $42.6 million, or 3.7%, since December 31, 2023, demonstrating 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 89.1% in the fourth quarter of 2024, 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 increased by $145,000, or 2.0%, for the fourth quarter of 2024, and by $5.6 million, or 22.6%, for the full year 2024 when compared to both time periods of last year.  Deposit interest expense was higher by $192,000, or 3.1%, for the quarter and by $4.4 million, or 21.1%, for the full year as the average volume of total interest-bearing deposits grew by $31.8 million, or 3.3%, for the quarter and by $27.9 million, or 2.9%, for the year.  The year over year increase in total interest expense was primarily due to the impact of the rising national interest rates experienced during 2023, which resulted in certain deposit products, particularly public funds, that are tied to a market index, repricing upward.  Additionally, increased market competition resulted in the Company raising rates on certain shorter-term certificates of deposit to retain funds. Also, there was an unfavorable deposit mix shift as the 2024 average of non-interest-bearing demand deposits declined by $3.5 million, or 1.9%, for the quarter and by $12.9 million, or 6.7%, for the full year while, as mentioned above, total interest-bearing deposits increased. The pace of deposit cost increases slowed during the first three quarters of 2024 and then decreased during the fourth quarter as the Federal Reserve eased monetary policy during the final four months of 2024 by reducing short term interest rates by 100-basis points.  This slowdown and reduction in deposit costs contributed to the previously mentioned stabilization and recent improvement in the net interest margin.  Management believes that deposit costs will decline further as the Federal Reserve continues their expected-tempered approach to reduce interest rates.  Total deposit cost averaged 2.13% in the fourth quarter of 2024, which is a 9-basis point improvement from the third quarter of 2024.  Overall, though, for the full year 2024, total deposit costs were 2.18%, which is 36-basis points higher than total deposit cost of 1.82% for the full year 2023.

 Total borrowings interest expense decreased by $47,000, or 3.8%, in the fourth quarter of 2024 but was $1.2 million, or 30.9%, higher when compared to the full year 2023.  The quarterly decrease reflects the Federal Reserve's recent action to ease monetary policy which had an immediate and favorable impact on the cost of overnight borrowed funds.  The full year increase primarily results from the impact that the higher national interest rates had on total borrowings cost through the first nine months of 2024.  The Company's utilization of overnight borrowed funds in 2024 was lower than the 2023 level in both time periods while the level of advances from the Federal Home Loan Bank increased.  Advances from the Federal Home Loan Bank averaged $51.6 million for the full year 2024, which is $29.4 million, or 132.7%, higher than the $22.2 million average for the full year 2023.  Management's strategy to increase term advances to lock in lower rates than overnight borrowings due to the inversion in the short end of the yield curve has favorably impacted net interest income.

The Company recorded a $1.1 million provision for credit losses in the fourth quarter of 2024 after recording a provision of $6.0 million in the fourth quarter of 2023, resulting in a favorable change of $4.9 million.  For the full year of 2024, the Company recognized an $884,000 provision for credit losses after recognizing a $7.4 million provision in 2023, resulting in a favorable change of $6.5 million.  The provision for credit losses in the fourth quarter of 2024 reflects the unfavorable impact on loss rates used to calculate the allowance for loan credit losses in accordance with CECL and a $400,000 specific reserve established on a new non-accrual loan.  The unfavorable impact on loss rates resulted from a $1.6 million charge-down of a $3.6 million commercial real estate (CRE) loan that was transferred to non-accrual status during the fourth quarter on which a specific reserve had already been established earlier this year.  Also causing the higher provision expense was the strong level of loan growth experienced during the fourth quarter of 2024.  The lower provision for credit losses for the full year 2024 reflects provision recoveries recognized in both the loan and securities portfolios in the first and third quarters.  Additionally, the 2023 fourth quarter and full year provision was significantly higher due to the negative impact that the Rite Aid bankruptcy had on several commercial real estate properties.  

Non-performing assets increased since the third quarter of 2024 by $1.0 million and totaled $13.7 million.  This increase occurred due to the previously mentioned transfer of a $2.0 million CRE loan and a $400,000 C&I loan into non-accrual status, which more than offset a $1.2 million C&I loan returning to accruing status and a $200,000 reduction in non-accrual residential mortgage loans.  Non-performing assets from the loan portfolio represent 1.18% of total loans.  The Company recognized net loan charge-offs of $2.0 million, or 0.19% of total average loans, in the full year 2024 compared to net loan charge-offs of $3.5 million, or 0.35% of total average loans, in the full year 2023.  Overall, the Company continues to maintain solid coverage of both total loans and non-performing loans as the allowance for loan credit losses provided 127% coverage of non-performing loans and 1.30% of total loans at December 31, 2024.   

Total non-interest income in the fourth quarter of 2024 increased by $1.7 million, or 61.1%, from the prior year's fourth quarter and increased by $1.6 million, or 9.7%, for the full year of 2024 when compared to the full year 2023.  The significant improvement in both time periods was partially due to the Company recognizing a $922,000 loss on an investment portfolio repositioning strategy that was executed during the fourth quarter of 2023.  There were no investment security gains or losses recognized in 2024. Also, the variances for both time periods reflect the necessary adjustments 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 that the Company executed to accommodate the needs of certain borrowers while managing our interest rate risk position.  These adjustments reflect the changing national interest rates and improved by $678,000 during the fourth quarter of 2024 and by $866,000 for the full year 2024 compared to both time periods from last year.  Wealth management fees improved by $49,000, or 1.7%, for the quarter and by $1.1 million, or 9.3%, for the full year due in part to a strong performance from our Financial Services division that resulted from new business growth.  Also, the increase in wealth management fees reflects the improving market conditions particularly for equity securities as major market indexes continued their ascent to record highs in 2024. Overall, the fair market value of wealth management assets totaled $2.6 billion at December 31, 2024 and increased by $37.7 million, or 1.5%, since December 31, 2023.  Finally, and favorably impacting other income for the full year of 2024 was the Company recognizing a $250,000 signing bonus that resulted from successful negotiations related to the renewal of an expiring contract with Visa.  The favorable items for the full year were partially offset by the Company recognizing a $1.7 million gain in the first quarter of 2023 from AmeriServ Financial Bank selling all 7,859 shares of the Class B common stock of Visa Inc; there was no such gain during 2024.

Total non-interest expense in the fourth quarter of 2024 decreased by $275,000, or 2.3%, when compared to the fourth quarter of 2023 and decreased by $628,000, or 1.3%, for the full year 2024 when compared to the full year 2023.  Salaries and employee benefits expense decreased by $1.2 million, or 4.2%, for the full year 2024 due to the net favorable impact of certain items within this broad category. Total salaries cost was down by $847,000, or 4.0%, after the Company incurred additional salary expense in 2023 related to a strategy to consolidate certain executive level positions in the wealth management business.  This benefit was successfully recognized in 2024 and was part of our previously announced earnings improvement program that was designed to lower employee costs.  Also, total health care cost was $516,000, or 13.4%, lower compared to last year and reflects management's effective negotiations with our current health care provider that resulted in not having to recognize any premium costs in January 2024.  These favorable items were partially offset by an increased level of incentive compensation by $294,000, or 25.1%, which corresponds to the strong performance of our wealth management division.  Also, favorably impacting total non-interest expense for the full year was a lower level of professional fees by $533,000, or 10.0%. Other expenses were $488,000, or 10.3%, higher for the full year 2024 when compared to 2023.  The Company was required to recognize a settlement charge in connection with its defined benefit pension plan during 2024. The amount of the 2024 charge was $471,000.  A settlement charge must be recognized when the total dollar amount of lump sum distributions paid from the pension plan to retired employees exceeds a threshold of expected annual service and interest costs in the current year.  It is important to note that since the retired employees have chosen to take the lump sum payments, these individuals are no longer included in the pension plan.  Therefore, it is expected that the Company's normal annual pension expense will continue to be lower in the future.  This was evident in 2023 and in 2024 as the Company has recognized a pension credit in both years.   FDIC insurance increased by $306,000, or 42.8%, due to an increase in both the asset assessment base as well as the assessment rate.  Data processing and IT expenses increased by $385,000, or 8.7%, for the full year of 2024 due to additional expenses related to monitoring our computing and network environment. 

Professional fees in both 2024 and 2023 were impacted by litigation and responses to the actions of an activist investor. The Company reached a Cooperation and Settlement Agreement with activist investor Driver Opportunity Partners (Driver), which was described in a Current Report on Form 8-K filed on June 14, 2024.  The Company's activist related costs declined by approximately $137,000 when the fourth quarter of 2024 is compared to the fourth quarter of 2023. For the full year 2024, activist related costs totaled $1.5 million compared to $2.2 million recognized for the full year 2023.

The Company recorded income tax expense of $187,000 in the fourth quarter of 2024 and income tax expense of $798,000, or an effective tax rate of 18.1%, for the full year 2024, which compares to an income tax credit of $1.5 million, in the fourth quarter 2023 and an income tax credit of $1.0 million, for the full year 2023.

The Company had total assets of $1.4 billion, shareholders' equity of $108.6 million, a book value of $6.57 per common share and a tangible book value of $5.75(1) per common share on December 31, 2024.  Book value per common share increased by $0.61, or 10.2%, and tangible book value per common share increased by $0.59, or 11.4%, since December 31, 2023, due to a favorable adjustment for both the unrealized loss on available for sale securities and the Company's defined benefit pension plan and the accretive repurchase of 628,003 shares of common stock from Driver. The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status as of December 31, 2024.

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 18, 2025, to shareholders of record on February 3, 2025. This cash dividend represents a 4.35% annualized yield using the January 16, 2025 closing stock price of $2.76 and a 57% payout ratio based upon 2024 full year earnings. The Company's Board of Directors elected to continue the common dividend at its current level given the Company's strong capital position and earnings improvement in 2024.

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; ability to successfully execute the Earnings Improvement Program and achieve the anticipated benefits in the amounts and at times estimated; operational risks, including the risk of fraud by employees, customers or outsiders; unanticipated effects to our banking platform; 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, 2023. 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, 2024
(Dollars in thousands, except per share and ratio data)
(Unaudited)
2024
	1QTR				2QTR					3QTR			4QTR				YEAR TO DATE
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				16,519				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				16,519				16,802
Cash dividends paid per share	$	0.03			$	0.03			$	0.03			$	0.03			$	0.12
2023
	1QTR				2QTR					3QTR			4QTR				YEAR TO DATE
PERFORMANCE DATA FOR THE PERIOD:
Net income (loss)	$	1,515			$	(187)			$	647			$	(5,321)			$	(3,346)
PERFORMANCE PERCENTAGES (annualized):
Return on average assets		0.45	%			(0.06)	%			0.19	%			(1.53)	%			(0.25)	%
Return on average equity		5.85				(0.72)				2.49				(20.85)				(3.23)
Return on average tangible common equity (1)		6.73				(0.82)				2.88				(24.11)				(3.72)
Net interest margin		3.03				2.89				2.76				2.63				2.86
Net charge-offs (recoveries) as a percentage of average loans		0.05				(0.02)				0.05				1.27				0.35
Efficiency ratio (3)		79.58				101.55				92.60				106.81				94.17
EARNINGS PER COMMON SHARE:
Basic	$	0.09			$	(0.01)			$	0.04			$	(0.31)			$	(0.20)
Average number of common shares outstanding		17,131				17,147				17,147				17,147				17,143
Diluted	$	0.09			$	(0.01)			$	0.04			$	(0.31)			$	(0.20)
Average number of common shares outstanding		17,155				17,147				17,147				17,147				17,144
Cash dividends paid per share	$	0.03			$	0.03			$	0.03			$	0.03			$	0.12

 

AMERISERV FINANCIAL, INC.
NASDAQ: ASRV
--CONTINUED--
(Dollars in thousands, except per share, statistical, and ratio data)
(Unaudited)
2024
												1QTR					2QTR				3QTR				4QTR
FINANCIAL CONDITION DATA AT PERIOD END:
Assets												$	1,384,516				$	1,403,438			$	1,405,187			$	1,423,725
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				220,239
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				108,611
Non-performing assets													12,161					12,817				12,657				13,657
Tangible common equity ratio (1)													6.58		%			6.47	%			6.79	%			6.73	%
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			$	6.57
Tangible book value (1)													5.26					5.45				5.72				5.75
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				302
Branch locations													16					16				16				16
Common shares outstanding													17,147,270					16,519,267				16,519,267				16,519,267
2023
												1QTR				2QTR					3QTR				4QTR
FINANCIAL CONDITION DATA AT PERIOD END:
Assets												$	1,345,957			$		1,345,721			$	1,361,789			$	1,389,638
Short-term investments/overnight funds													4,116					3,366				3,598				4,349
Investment securities, net of allowance for credit losses - securities													238,613					232,259				229,335				229,690
Total loans and loans held for sale, net of unearned income													980,877					988,221				1,002,306				1,038,401
Allowance for credit losses - loans													12,132					12,221				12,313				15,053
Intangible assets													13,731					13,724				13,718				13,712
Deposits													1,131,789					1,127,569				1,129,290				1,158,360
Short-term and FHLB borrowings													69,124					72,793				85,568				85,513
Subordinated debt, net													26,654					26,665				26,675				26,685
Shareholders' equity													105,899					103,565				101,326				102,277
Non-performing assets													4,599					5,650				5,939				12,393
Tangible common equity ratio (1)													6.92	%				6.74	%			6.50	%			6.44	%
Total capital (to risk weighted assets) ratio													14.17					14.00				13.72				13.03
PER COMMON SHARE:
Book value												$	6.18			$		6.04			$	5.91			$	5.96
Tangible book value (1)													5.38					5.24				5.11				5.16
Market value (2)													3.05					2.54				2.65				3.24
Wealth management assets – fair market value (4)												$	2,354,498			$		2,446,639			$	2,385,590			$	2,521,501
STATISTICAL DATA AT PERIOD END:
Full-time equivalent employees													308					315				308				307
Branch locations													17					17				17				17
Common shares outstanding													17,147,270					17,147,270				17,147,270				17,147,270

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)
2024
	1QTR			2QTR			3QTR			4QTR			YEAR TO DATE
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			293			304			298			1,188
Net realized gains on loans held for sale		10			59			55			50			174
Mortgage related fees		29			48			30			23			130
Net realized losses on investment securities		0			0			0			0			0
Gain on sale of Visa Class B shares		0			0			0			0			0
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
2023
	1QTR			2QTR			3QTR			4QTR			YEAR TO DATE
INTEREST INCOME
Interest and fees on loans	$	12,276		$	12,609		$	13,154		$	13,589		$	51,628
Interest on investments		2,298			2,270			2,285			2,379			9,232
Total Interest Income		14,574			14,879			15,439			15,968			60,860
INTEREST EXPENSE
Deposits		4,189			5,019			5,653			6,153			21,014
All borrowings		863			750			987			1,226			3,826
Total Interest Expense		5,052			5,769			6,640			7,379			24,840
NET INTEREST INCOME		9,522			9,110			8,799			8,589			36,020
Provision (recovery) for credit losses		1,179			43			189			6,018			7,429
NET INTEREST INCOME AFTER PROVISION (RECOVERY)      FOR CREDIT LOSSES		8,343			9,067			8,610			2,571			28,591
NON-INTEREST INCOME
Wealth management fees		2,738			2,789			2,845			2,894			11,266
Service charges on deposit accounts		266			280			311			306			1,163
Net realized gains on loans held for sale		26			38			59			46			169
Mortgage related fees		33			34			41			23			131
Net realized losses on investment securities		0			0			0			(922)			(922)
Gain on sale of Visa Class B shares		1,748			0			0			0			1,748
Bank owned life insurance		239			242			321			245			1,047
Other income		457			479			679			172			1,787
Total Non-Interest Income		5,507			3,862			4,256			2,764			16,389
NON-INTEREST EXPENSE
Salaries and employee benefits		7,175			7,728			7,358			7,367			29,628
Net occupancy expense		772			713			719			713			2,917
Equipment expense		415			422			376			410			1,623
Professional fees		1,308			1,907			1,146			956			5,317
Data processing and IT expense		1,078			1,080			1,139			1,133			4,430
FDIC deposit insurance expense		125			175			195			220			715
Other expense		1,090			1,152			1,162			1,334			4,738
Total Non-Interest Expense		11,963			13,177			12,095			12,133			49,368
PRETAX INCOME (LOSS)		1,887			(248)			771			(6,798)			(4,388)
Income tax expense (benefit)		372			(61)			124			(1,477)			(1,042)
NET INCOME (LOSS)	$	1,515		$	(187)		$	647		$	(5,321)		$	(3,346)

 

AMERISERV FINANCIAL, INC.
NASDAQ: ASRV
AVERAGE BALANCE SHEET DATA
(Dollars in thousands)
(Unaudited)
	2024						2023
	4QTR			TWELVE MONTHS			4QTR			TWELVE MONTHS
Interest earning assets:
Loans and loans held for sale, net of unearned income	$	1,058,273		$	1,037,734		$	1,021,950		$	997,204
Short-term investments and bank deposits		3,908			3,853			4,470			3,942
Total investment securities		246,111			253,487			260,705			262,167
Total interest earning assets		1,308,292			1,295,074			1,287,125			1,263,313
Non-interest earning assets:
Cash and due from banks		14,695			14,333			14,087			15,446
Premises and equipment		18,628			18,610			17,264			17,270
Other assets		87,137			84,041			75,366			75,111
Allowance for credit losses		(15,026)			(15,310)			(13,398)			(13,066)
Total assets	$	1,413,726		$	1,396,748		$	1,380,444		$	1,358,074
Interest bearing liabilities:
Interest bearing deposits:
Interest bearing demand	$	233,474		$	225,741		$	225,470		$	225,713
Savings		119,342			120,231			121,373			127,539
Money market		319,415			314,138			310,609			302,964
Other time		337,073			330,013			320,033			306,044
Total interest bearing deposits		1,009,304			990,123			977,485			962,260
Borrowings:
Federal funds purchased and other short-term borrowings		21,209			27,963			41,361			35,755
Advances from Federal Home Loan Bank		54,348			51,590			32,316			22,167
Subordinated debt		27,000			27,000			27,000			27,000
Lease liabilities		4,297			4,337			3,332			3,238
Total interest bearing liabilities		1,116,158			1,101,013			1,081,494			1,050,420
Non-interest bearing liabilities:
Demand deposits		178,457			178,686			181,978			191,580
Other liabilities		11,896			12,973			15,685			12,507
Shareholders' equity		107,215			104,076			101,287			103,567
Total liabilities and shareholders' equity	$	1,413,726		$	1,396,748		$	1,380,444		$	1,358,074

 

AMERISERV FINANCIAL, INC.
NASDAQ: ASRV
CHANGES IN SHAREHOLDERS' EQUITY
(Dollars in thousands)
(Unaudited)
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			0			0			0			1,904			0			1,904
Exercise of stock options and stock      option expense			0			0			8			0			0			8
Adjustment for defined benefit pension      plan			0			0			0			0			(131)			(131)
Adjustment for unrealized loss on      available for sale securities			0			0			0			0			(241)			(241)
Market value adjustment for interest rate      hedge			0			0			0			0			630			630
Common stock cash dividend			0			0			0			(514)			0			(514)
Balance at March 31, 2024		$	268		$	(83,280)		$	146,372		$	60,291		$	(19,718)		$	103,933
Net loss			0			0			0			(375)			0			(375)
Treasury stock, purchased at cost			0			(1,511)			0			0			0			(1,511)
Adjustment for defined benefit pension      plan			0			0			0			0			2,177			2,177
Adjustment for unrealized loss on      available for sale securities			0			0			0			0			(119)			(119)
Market value adjustment for interest rate      hedge			0			0			0			0			71			71
Common stock cash dividend			0			0			0			(515)			0			(515)
Balance at June 30, 2024		$	268		$	(84,791)		$	146,372		$	59,401		$	(17,589)		$	103,661
Net income			0			0			0			1,183			0			1,183
Adjustment for defined benefit pension      plan			0			0			0			0			753			753
Adjustment for unrealized gain on      available for sale securities			0			0			0			0			3,966			3,966
Market value adjustment for interest rate      hedge			0			0			0			0			(886)			(886)
Common stock cash dividend			0			0			0			(495)			0			(495)
Balance at September 30, 2024		$	268		$	(84,791)		$	146,372		$	60,089		$	(13,756)		$	108,182
Net income			0			0			0			889			0			889
Adjustment for defined benefit pension      plan			0			0			0			0			2,224			2,224
Adjustment for unrealized loss on      available for sale securities			0			0			0			0			(2,590)			(2,590)
Market value adjustment for interest rate      hedge			0			0			0			0			402			402
Common stock cash dividend			0			0			0			(496)			0			(496)
Balance at December 31, 2024		$	268		$	(84,791)		$	146,372		$	60,482		$	(13,720)		$	108,611
2023
		COMMON STOCK			TREASURY STOCK			SURPLUS			RETAINED EARNINGS			ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME			TOTAL
Balance at December 31, 2022		$	267		$	(83,280)		$	146,225		$	65,486		$	(22,520)		$	106,178
Net income			0			0			0			1,515			0			1,515
Exercise of stock options and stock      option expense			1			0			106			0			0			107
Adjustment for defined benefit pension      plan			0			0			0			0			0			0
Adjustment for unrealized gain on      available for sale securities			0			0			0			0			449			449
Market value adjustment for interest rate      hedge			0			0			0			0			(655)			(655)
Cumulative effect adjustment for change      in accounting principle			0			0			0			(1,181)			0			(1,181)
Common stock cash dividend			0			0			0			(514)			0			(514)
Balance at March 31, 2023		$	268		$	(83,280)		$	146,331		$	65,306		$	(22,726)		$	105,899
Net loss			0			0			0			(187)			0			(187)
Exercise of stock options and stock      option expense			0			0			12			0			0			12
Adjustment for defined benefit pension      plan			0			0			0			0			0			0
Adjustment for unrealized loss on      available for sale securities			0			0			0			0			(2,560)			(2,560)
Market value adjustment for interest rate      hedge			0			0			0			0			916			916
Common stock cash dividend			0			0			0			(515)			0			(515)
Balance at June 30, 2023		$	268		$	(83,280)		$	146,343		$	64,604		$	(24,370)		$	103,565
Net income			0			0			0			647			0			647
Exercise of stock options and stock      option expense			0			0			11			0			0			11
Adjustment for defined benefit pension      plan			0			0			0			0			0			0
Adjustment for unrealized loss on      available for sale securities			0			0			0			0			(2,700)			(2,700)
Market value adjustment for interest rate      hedge			0			0			0			0			316			316
Common stock cash dividend			0			0			0			(513)			0			(513)
Balance at September 30, 2023		$	268		$	(83,280)		$	146,354		$	64,738		$	(26,754)		$	101,326
Net loss			0			0			0			(5,321)			0			(5,321)
Exercise of stock options and stock      option expense			0			0			10			0			0			10
Adjustment for defined benefit pension      plan			0			0			0			0			1,688			1,688
Adjustment for unrealized gain on      available for sale securities			0			0			0			0			6,019			6,019
Market value adjustment for interest rate      hedge			0			0			0			0			(929)			(929)
Common stock cash dividend			0			0			0			(516)			0			(516)
Balance at December 31, 2023		$	268		$	(83,280)		$	146,364		$	58,901		$	(19,976)		$	102,277

 

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 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.
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			$	108,611
Less: Intangible assets			13,705				13,699				13,693				13,688
Tangible common equity			90,228				89,962				94,489				94,923
TANGIBLE ASSETS
Total assets			1,384,516				1,403,438				1,405,187				1,423,725
Less: Intangible assets			13,705				13,699				13,693				13,688
Tangible assets			1,370,811				1,389,739				1,391,494				1,410,037
Tangible common equity ratio			6.58	%			6.47	%			6.79	%			6.73	%
Total shares outstanding			17,147,270				16,519,267				16,519,267				16,519,267
Tangible book value per share		$	5.26			$	5.45			$	5.72			$	5.75
2023
		1QTR				2QTR				3QTR				4QTR				FULL YEAR 2023
RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Net income (loss)		$	1,515			$	(187)			$	647			$	(5,321)			$	(3,346)
Average shareholders' equity			105,092				104,913				102,976				101,287				103,567
Less: Average intangible assets			13,734				13,727				13,720				13,714				13,724
Average tangible common equity			91,358				91,186				89,256				87,573				89,843
Return on average tangible common equity (annualized)			6.73	%			(0.82)	%			2.88	%			(24.11)	%			(3.72)	%
		1QTR				2QTR				3QTR				4QTR
TANGIBLE COMMON EQUITY
Total shareholders' equity		$	105,899			$	103,565			$	101,326			$	102,277
Less: Intangible assets			13,731				13,724				13,718				13,712
Tangible common equity			92,168				89,841				87,608				88,565
TANGIBLE ASSETS
Total assets			1,345,957				1,345,721				1,361,789				1,389,638
Less: Intangible assets			13,731				13,724				13,718				13,712
Tangible assets			1,332,226				1,331,997				1,348,071				1,375,926
Tangible common equity ratio			6.92	%			6.74	%			6.50	%			6.44	%
Total shares outstanding			17,147,270				17,147,270				17,147,270				17,147,270
Tangible book value per share		$	5.38			$	5.24			$	5.11			$	5.16

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SOURCE AmeriServ Financial, Inc.

FAQ

What was AmeriServ Financial's (ASRV) net income for full year 2024?

AmeriServ Financial reported net income of $3.601 million, or $0.21 per diluted share, for the full year 2024.

How much did ASRV's loans and deposits grow in 2024?

ASRV's total loans grew by $30 million (2.9%) and deposits increased by $43 million (3.7%) during 2024.

What is ASRV's quarterly dividend payment for Q1 2025?

ASRV declared a quarterly cash dividend of $0.03 per share, payable February 18, 2025, representing a 4.35% annualized yield.

How did ASRV's wealth management assets perform in 2024?

ASRV's wealth management assets totaled $2.6 billion at December 31, 2024, increasing by $37.7 million (1.5%) from December 31, 2023.

What was ASRV's net interest margin in Q4 2024?

ASRV's net interest margin was 2.88% for the fourth quarter of 2024, representing a 25-basis point increase from Q4 2023.