10q10k10q10k.net

What changed in AMERISERV FINANCIAL INC /PA/'s 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of AMERISERV FINANCIAL INC /PA/'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+245 added−241 removedSource: 10-K (2026-03-18) vs 10-K (2025-03-19)

Top changes in AMERISERV FINANCIAL INC /PA/'s 2025 10-K

245 paragraphs added · 241 removed · 172 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

52 edited+18 added−15 removed74 unchanged
Biggest changeAGENCY ​ MUNICIPAL ​ OTHER ​ SECURITIES ​ MATURITY Within 1 year ​ — % 3.00 % 3.24 % — % ​ 3.10 % After 1 year but within 5 years ​ — ​ 3.41 ​ 5.18 ​ — ​ ​ 3.53 ​ After 5 years but within 10 years ​ 2.01 ​ 2.69 ​ 7.18 ​ 3.89 ​ ​ 2.79 ​ Over 10 years ​ — ​ 3.50 ​ 6.68 ​ 4.12 ​ ​ 4.20 ​ Total ​ 2.01 ​ 3.05 ​ 5.30 ​ 4.11 ​ ​ 3.58 ​ ​ DEPOSITS The Bank believes it has a stable core deposit base made up of traditional commercial bank products that exhibit modest fluctuation during the year, other than jumbo certificates of deposit and certain municipal deposits, which demonstrate some seasonality.
Biggest changeThe Company participates in limited trading activity. ​ DEPOSITS The Bank believes it has a stable core deposit base made up of traditional commercial bank products that exhibit modest fluctuation during the year, other than jumbo certificates of deposit and certain municipal deposits, which demonstrate some seasonality.
Banking regulators generally give commercial real estate lending greater scrutiny and may require banks with higher levels of commercial real estate loans to implement enhanced risk management practices, including stricter underwriting, internal controls, risk management policies, more granular reporting, and portfolio stress testing, as well as possibly higher levels of allowances for credit losses and capital levels as a result of commercial real estate lending 4 Table of Contents growth and exposures.
Banking regulators generally give commercial real estate lending greater scrutiny and may require banks with higher levels of commercial real estate loans to implement enhanced risk management practices, including stricter underwriting, internal controls, risk management policies, more granular reporting, and portfolio stress 4 Table of Contents testing, as well as possibly higher levels of allowances for credit losses and capital levels as a result of commercial real estate lending growth and exposures.
Community Reinvestment Act All FDIC-insured institutions have a responsibility under the Community Reinvestment Act (CRA) and related regulations to help meet the credit needs of their communities, including low- and moderate-income neighborhoods. In connection with its examination of a state-chartered bank, the federal bank regulators are required to assess an institution’s record of compliance with the CRA.
Community Reinvestment Act All FDIC-insured institutions have a responsibility under the Community Reinvestment Act (CRA) and related regulations to help meet the credit needs of their communities, including low- and moderate-income neighborhoods. In connection with its examination of a state-chartered bank, the federal banking regulators are required to assess an institution’s record of compliance with the CRA.
Under the current system, premiums are assessed quarterly and could increase if, for example, criticized loans and leases and/or other higher risk assets increase, or balance sheet liquidity decreases. In addition, the FDIC can impose special assessments in certain instances.
Under the current system, premiums are assessed quarterly and could increase if, for example, criticized loans and/or other higher risk assets increase, or balance sheet liquidity decreases. In addition, the FDIC can impose special assessments in certain instances.
As previously stated above, Fannie Mae/Freddie Mac guidelines are used in underwriting all mortgages with the exception of a limited amount of Community Reinvestment Act (CRA) loans and internal special programs. Mortgages with longer terms, such as 30-year, FHA, and VA loans, are usually sold. The remaining production of the department includes construction, adjustable-rate mortgages, and quality non-salable loans.
As previously stated above, Fannie Mae guidelines are used in underwriting all mortgages with the exception of a limited amount of Community Reinvestment Act (CRA) loans and internal special programs. Mortgages with longer terms, such as 30-year, FHA, and VA loans, are usually sold. The remaining production of the department includes construction, adjustable-rate mortgages, and quality non-salable loans.
Underwriting of loans within this category is pursuant to Freddie Mac/Fannie Mae underwriting guidelines, with the exception of Community Loan Program loans, which have specialized internal loan program standards. The major risk in this category is that a significant downward economic trend would increase unemployment and cause payment default.
Underwriting of loans within this category is pursuant to Fannie Mae underwriting guidelines, with the exception of Community Loan Program loans, which have specialized internal loan program standards. The major risk in this category is that a significant downward economic trend would increase unemployment and cause payment default.
Hagerstown in Washington County, Maryland offers a rare combination of business advantages providing a major crossroads location that is convenient to the entire East Coast at the intersection of I-81 and I-70. It has a workforce of over 400,000 with strengths in manufacturing and technology.
Hagerstown in Washington County, Maryland offers a rare combination of business advantages providing a major crossroads location that is convenient to the entire East Coast at the intersection of I-81 and I-70. It has a workforce of approximately 400,000 with strengths in manufacturing and technology.
Generally, a bank is prohibited from paying any dividend or making any capital distribution or paying any management fee to its holding company if the bank would thereafter be undercapitalized. ​ ​ ​ ​ ​ ​ ​ ​ Minimum Capital ​ Well ​ Plus Buffer Capitalized Common equity tier 1 capital ratio 7.00 % 6.50 % Tier 1 capital ratio 8.50 % 8.00 % Total capital ratio 10.50 % 10.00 % ​ DIVIDEND RESTRICTIONS The primary source of cash to pay dividends, if any, to the Company’s shareholders and to meet the Company’s obligations is dividends paid to the Company by the Bank.
Generally, a bank is prohibited from paying any dividend or making any capital distribution or paying any management fee to its holding company if the bank would thereafter be undercapitalized. 11 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ MINIMUM CAPITAL ​ WELL ​ ​ ​ ​ PLUS BUFFER ​ ​ ​ CAPITALIZED ​ Common equity tier 1 capital ratio ​ ​ ​ 7.00 % 6.50 % Tier 1 capital ratio 8.50 % 8.00 % Total capital ratio 10.50 % 10.00 % ​ DIVIDEND RESTRICTIONS The primary source of cash to pay dividends, if any, to the Company’s shareholders and to meet the Company’s obligations is dividends paid to the Company by the Bank.
The Company’s investment policy and hedging policy seeks to limit the amount of credit risk that may be assumed in the investment portfolio and through hedging activities. A significant portion of the Company's loan portfolio consists of commercial real estate loans, including owner occupied properties, non-owner-occupied properties, and other commercial properties.
The Company’s Investment Policy and Hedging Policy seek to limit the amount of credit risk that may be assumed in the investment portfolio and through hedging activities. A significant portion of the Company's loan portfolio consists of commercial real estate loans, including owner occupied properties, non-owner-occupied properties, and other commercial properties.
The following table sets forth the weighted average yield for each type of investment security and range of maturity as of December 31, 2024. Yields are not presented on a tax-equivalent basis but are based upon the cost basis and are weighted for the scheduled maturity.
The following table sets forth the weighted average yield for each type of investment security and range of maturity as of December 31, 2025. Yields are not presented on a tax-equivalent basis but are based upon the cost basis and are weighted for the scheduled maturity.
An increase in non-performing loans could result in a loss of earnings from these loans, an increase in the provision for credit losses for loans, and an increase in charge-offs, all of which could have a material adverse effect on the Company's business, financial condition, and results of operations. ​ The banking regulatory agencies have recently expressed concerns about weaknesses in the current commercial real estate market.
An increase in non-performing loans could result in a loss of earnings from these loans, an increase in the provision for credit losses for loans, and an increase in charge-offs, all of which could have a material adverse effect on the Company's business, financial condition, and results of operations. ​ The banking regulatory agencies have expressed concerns about weaknesses in certain sectors of the current commercial real estate market.
The Bank has also been a preferred mortgage and consumer loan provider for the Pennsylvania State Education Association for 11 years which provides us with the opportunity to expand our lending in these products throughout Pennsylvania.
The Bank has also been a preferred mortgage and consumer loan provider for the Pennsylvania State Education Association for 12 years which provides us with the opportunity to expand our lending in these products throughout Pennsylvania.
HUMAN CAPITAL RESOURCES The Company’s long-term growth and success also depends on its ability to attract, develop and retain a high-performing workforce that represent the communities in which we operate.
HUMAN CAPITAL RESOURCES The Company’s long-term growth and success also depends on its ability to attract, develop and retain a high-performing workforce that represents the communities in which we operate.
A large percentage of the population in State College falls into the 18- to 34-year-old age group, while potential customers in the Cambria/Somerset markets tend to be over 50 years of age.
A large percentage of the population in State College falls into the 18- to 24-year-old age group, while potential customers in the Cambria/Somerset markets tend to be over 50 years of age.
It also offers an affordable cost of doing business and living, all within an hour of the Washington, D.C./Baltimore regions. There are also plenty of facilities and land slated for industrial/commercial development. Hagerstown has become a choice location for manufacturers, financial services, and distribution companies.
It also offers an affordable cost of doing business and living, all within an hour of the Washington, D.C./Baltimore regions. There are also plenty of facilities and 9 Table of Contents land slated for industrial/commercial development. Hagerstown has become a choice location for manufacturers, financial services, and distribution companies.
The Hagerstown, MD-Martinsburg, WV MSA unemployment rate increased from a 2.8% average in 2023 to a 3.3% average in 2024. The Company also has loan production offices in Wilkins Township in Allegheny County and Altoona in Blair County, Pennsylvania. Wilkins Township in Allegheny County, Pennsylvania is located 15 miles east of the city of Pittsburgh.
The Hagerstown, MD-Martinsburg, WV MSA unemployment rate increased from a 3.3% average in 2024 to a 3.8% average in 2025. The Company also has loan production offices in Wilkins Township in Allegheny County and Altoona in Blair County, Pennsylvania. Wilkins Township in Allegheny County, Pennsylvania is located 15 miles east of the city of Pittsburgh.
The assets as of December 31 st in both of the prior two calendar years will be used to determine the appropriate size threshold. The agencies will evaluate large banks under four performance tests: the Retail Lending Test, the Retail Services and Products Test, the Community Development Financing Test, and the Community Development Services Test.
The assets as of December 12 Table of Contents 31 st in both of the prior two calendar years will be used to determine the appropriate size threshold. The agencies will evaluate large banks under four performance tests: the Retail Lending Test, the Retail Services and Products Test, the Community Development Financing Test, and the Community Development Services Test.
The Company has consistently viewed its positive union relationships as a potential source of additional revenue. Examples of success in these efforts include the previously mentioned ERECT Fund where the wealth and capital management division is trustee for this $253 million fund whose purpose is to invest in commercial construction projects with the requirement that they utilize union labor.
The Company has consistently viewed its positive union relationships as a potential source of additional revenue. Examples of success in these efforts include the previously mentioned ERECT Funds where the AmeriServ Wealth and Capital Management division is trustee for this $248 million fund whose purpose is to invest in commercial construction projects with the requirement that they utilize union labor.
As a result of the Dodd-Frank Act, the calculated assessment rate is applied to average consolidated assets less the average tangible equity of the IDI during the 12 Table of Contents assessment period to determine the dollar amount of the quarterly assessment.
As a result of the Dodd-Frank Act, the calculated assessment rate is applied to average consolidated assets less the average tangible equity of the IDI during the assessment period to determine the dollar amount of the quarterly assessment.
The Company’s primary credit risk occurs in the loan portfolio with limited credit risk within the investment portfolio due to holdings of corporate and municipal securities. The Company uses its credit policy and disciplined approach to evaluating the adequacy of the allowance for credit losses (the ACL) to monitor and manage credit risk.
The Company’s primary credit risk occurs in the loan portfolio with limited credit risk within the investment portfolio due to holdings of corporate and municipal securities. The Company uses its Credit Policy and a disciplined approach to evaluate the adequacy of the allowance for credit losses (the ACL) in order to monitor and manage credit risk.
The Company’s executive team and the Compensation/Human Resources Committee of the Board of Directors oversee the strategic management of the Company’s human capital resources, and the Company’s Human Resources Department manages the day-to-day of those resources. Employee profile The Company employed 313 people as of December 31, 2024, in full- and part-time positions.
The Company’s executive team and the Compensation/Human Resources Committee of the Board of Directors oversee the strategic management of the Company’s human capital resources, and the Company’s Human Resources Department manages the day-to-day of those resources. Employee profile The Company employed 311 people as of December 31, 2025, in full- and part-time positions.
For intermediate banks, the two performance tests will be: Retail Lending Test and the existing CD test, which is the default, but banks can opt-in to the CD Financing Test.
For intermediate banks, the two performance tests will be: Retail Lending Test and the existing Community Development test, which is the default, but banks can opt-in to the Community Development Financing Test.
Since the inception of the partnership, the Bank has funded over $330 million in mortgage and consumer loans to unionized teachers and their family members. Competitive Compensation As part of the Company’s compensation philosophy, market competitive programs are maintained for employees to attract and retain top talent.
Since the inception of the partnership, the Bank has funded over $350 million in mortgage and consumer loans to unionized teachers and their family members. 10 Table of Contents Competitive Compensation As part of the Company’s compensation philosophy, market competitive programs are maintained for employees to attract and retain top talent.
The Company strives to promote inclusion through defined Company values and behaviors. The Company is focused on 10 Table of Contents sourcing and hiring with fair and equitable approaches, creating an environment where all employees can develop and thrive.
The Company strives to promote inclusion through defined Company values and behaviors. The Company is focused on sourcing and hiring with fair and equitable approaches, creating an environment where all employees can develop and thrive.
Investment securities available for sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL ​ ​ ​ ​ ​ ​ ​ U.S.
Investment securities available for sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S.
The Bank is an FDIC-insured institution; therefore, deposits are insured up to the standard insurance amount of $250,000 per depositor. As of December 31, 2024 and 2023, the estimated amount of uninsured deposits was $435.7 million and $384.5 million, respectively.
The Bank is an FDIC-insured institution; therefore, deposits are insured up to the standard insurance amount of $250,000 per depositor. As of December 31, 2025 and 2024, the estimated amount of uninsured deposits was $476.2 million and $435.7 million, respectively.
In addition to being located adjacent to I-99 and a major highway system, Altoona also has easy access to rail and air transportation. The average unemployment rate in the Altoona MSA decreased from 3.5% in 2023 to 3.3% in 2024.
In addition to being located adjacent to I-99 and a major highway system, Altoona also has easy access to rail and air transportation. The average unemployment rate in the Altoona MSA increased from 3.3% in 2024 to 4.0% in 2025.
For more information regarding quarterly cash dividends, see Part II, Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities below. PRIVACY PROVISIONS Federal banking regulators adopted rules that limit the ability of banks and other financial institutions to disclose non-public information about customers to non-affiliated third parties.
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities below. PRIVACY PROVISIONS Federal banking regulators adopted rules that limit the ability of banks and other financial institutions to disclose non-public information about customers to non-affiliated third parties.
The unemployment rate for the Pittsburgh MSA decreased from a 3.7% average in 2023 to a 3.5% average in 2024. 9 Table of Contents Altoona is the business center of Blair County, Pennsylvania with a strong retail, government and manufacturing base. The top field of employment in Altoona and the metro area is healthcare.
The unemployment rate for the Pittsburgh MSA increased from a 3.5% average in 2024 to a 4.0% average in 2025. Altoona is the business center of Blair County, Pennsylvania with a strong retail, government and manufacturing base. The top field of employment in Altoona and the metro area is healthcare.
Core PCE inflation was 2.8%, while core CPI inflation was 3.3%. Johnstown, Pennsylvania, where the Company is headquartered, continues to have a cost of living that is lower than the national average. Johnstown is home to The University of Pittsburgh at Johnstown, Pennsylvania Highlands Community College and Conemaugh Health System.
Johnstown, Pennsylvania, where the Company is headquartered, continues to have a cost of living that is lower than the national average. Johnstown is home to The University of Pittsburgh at Johnstown, Pennsylvania Highlands Community College and Conemaugh Health System.
It should be noted that approximately 50% of these uninsured deposits relate to public funds from municipalities, government entities, and school districts which by law are required to be collateralized with investment securities or FHLB letters of credit to protect these depositor funds. ​ The maturities on CDs with balances that exceed the FDIC insurance limit of $250,000 as of December 31, 2024, are as follows: ​ ​ ​ ​ ​ ​ (IN THOUSANDS) MATURING IN: ​ Three months or less ​ $ 39,775 Over three through six months ​ 17,377 Over six through twelve months ​ 20,741 Over twelve months ​ 18,009 Total ​ $ 95,902 ​ MONETARY POLICIES Commercial banks are affected by the policies of various regulatory authorities including the Board of Governors of the Federal Reserve System (the Federal Reserve).
It should be noted that approximately 60% of these uninsured deposits relate to public funds from municipalities, government entities, and school districts which by law are required to be collateralized with investment securities or FHLB letters of credit to protect these depositor funds. ​ The maturities on CDs with balances that exceed the FDIC insurance limit of $250,000 as of December 31, 2025 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ (IN THOUSANDS) MATURING IN: ​ ​ Three months or less ​ $ 52,141 Over three through six months ​ 34,631 Over six through twelve months ​ 28,517 Over twelve months ​ 26,218 Total ​ $ 141,507 ​ MONETARY POLICIES Commercial banks are affected by the policies of various regulatory authorities including the Board of Governors of the Federal Reserve System (the Federal Reserve).
The Company does not use brokered deposits as a funding source. 7 Table of Contents The following table sets forth the average balance of the Company’s deposits and average rates paid thereon for the past two calendar years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 ​ ​ (IN THOUSANDS, EXCEPT PERCENTAGES) ​ Demand: ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-interest bearing ​ $ 178,686 — % $ 191,580 — % Interest bearing ​ 225,741 1.88 ​ 225,713 1.80 ​ Savings ​ 120,231 0.10 ​ 127,539 0.10 ​ Money market ​ 314,138 2.77 ​ 302,964 2.46 ​ Time deposits (1) ​ 330,013 3.75 ​ 306,044 3.06 ​ Total deposits ​ $ 1,168,809 2.57 % $ 1,153,840 2.18 % (1) Time deposits include certificates of deposit (CDs) and individual retirement accounts (IRAs). ​ The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects bank depositors against loss.
The Company does not use brokered deposits as a funding source. 7 Table of Contents The following table sets forth the average balance of the Company’s deposits and average rates paid thereon for the past two calendar years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ (IN THOUSANDS, EXCEPT PERCENTAGES) ​ Demand: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-interest bearing ​ $ 174,295 — % $ 178,686 — % Interest bearing ​ 249,972 1.75 ​ 225,741 1.88 ​ Savings ​ 121,945 0.10 ​ 120,231 0.10 ​ Money market ​ 324,166 2.36 ​ 314,138 2.77 ​ Time deposits (1) ​ 365,700 3.64 ​ 330,013 3.75 ​ Total deposits ​ $ 1,236,078 2.06 % $ 1,168,809 2.18 % (1) Time deposits include certificates of deposit (CDs) and individual retirement accounts (IRAs). ​ The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects bank depositors against loss.
The division focuses on wealth management and administers assets valued at approximately $2.6 billion that are not recognized on the Company’s balance sheet at December 31, 2024.
The AmeriServ Wealth and Capital Management division of the Bank focuses on wealth management and administers assets valued at approximately $2.7 billion that are not recognized on the Company’s balance sheet at December 31, 2025.
All holdings must meet standards documented in its investment policy, unless otherwise approved by the Company’s CEO or the Asset/Liability Management Committee. 6 Table of Contents The investment portfolio is primarily made up of AAA rated agency mortgage-backed securities, high quality corporate securities, taxable municipal securities, and agency securities.
All holdings must meet standards documented in Investment Policy, unless otherwise approved by the Company’s CEO or the Asset/Liability Management Committee. 6 Table of Contents The investment portfolio is primarily made up of highly rated agency mortgage-backed securities, high quality corporate securities, municipal securities, and agency securities. Management strives to maintain a portfolio duration that is less than 60 months.
As such, it does not apply to the Company. AVAILABLE INFORMATION We file annual, quarterly and current reports, proxy statements and other information with the SEC. These filings are available to the public on the internet at the SEC’s website at http://www.sec.gov . Our internet address is http://www.ameriserv.com .
Deposit insurance assessments fund the DIF. ​ AVAILABLE INFORMATION We file annual, quarterly and current reports, proxy statements and other information with the SEC. These filings are available to the public on the internet at the SEC’s website at http://www.sec.gov . Our internet address is http://www.ameriserv.com .
The policy provides that bank holding 11 Table of Contents companies should not maintain a level of cash dividend that undermines the bank holding company’s ability to serve as a source of strength to its banking subsidiary. A bank holding company may not pay dividends when it is insolvent.
The policy provides that bank holding companies should not maintain a level of cash dividend that undermines the bank holding company’s ability to serve as a source of strength to its banking subsidiary. A bank holding company may not pay dividends when it is insolvent. For more information regarding quarterly cash dividends, see Part II, Item 5.
At December 31, 2024, the Bank’s non-owner occupied commercial real estate loan concentration stood at 379% of total regulatory capital. It should be noted that this ratio increased from 375% at December 31, 2023, due to growth in non-owner occupied commercial real estate loan balances which more than offset the increase in total regulatory capital between years.
At December 31, 2025, the Bank’s non-owner occupied commercial real estate loan concentration stood at 352% of total regulatory capital. It should be noted that this ratio decreased from 379% at December 31, 2024, due to contraction in non-owner occupied commercial real estate loan balances combined with an increase in total regulatory capital between years.
Approximately 149 non-supervisory employees of the Company are represented by the United Steelworkers AFL-CIO-CLC, Local Union 2635-06. The Company is under a four-year labor contract with the United Steelworkers Local, which expires on October 15, 2025. The contract calls for annual wage increases of 2% during the life of the contract.
Approximately 139 non-supervisory employees of the Company are represented by the United Steelworkers AFL-CIO-CLC, Local Union 2635-06. The Company is under a four-year labor contract with the United Steelworkers Local, which expires on October 16, 2029.
The key goals of organized labor are to provide their members with strong wages and benefits, stable jobs, and safe and respectable workplaces.
This unique unionization situation creates both challenges and opportunities for the Company. The key goals of organized labor are to provide their members with strong wages and benefits, stable jobs, and safe and respectable workplaces.
As the financial services industry continues to consolidate, the scope of potential competition affecting the Company will also increase. Brokerage houses, consumer finance companies, insurance companies, financial technology firms, and pension trusts are important competitors for various types of financial services. Personal and corporate trust investment counseling services are offered by insurance companies, other firms, and individuals.
Brokerage houses, consumer finance companies, insurance companies, financial technology firms, and pension trusts are important competitors for various types of financial services. Personal and corporate trust investment counseling services are offered by insurance companies, other firms, and individuals.
The following is a summary of key data (dollars in thousands) and ratios of the Bank at December 31, 2024: ​ ​ ​ ​ ​ ​ AmeriServ Financial Bank Johnstown, PA Total Assets ​ $ 1,417,476 ​ Total Investment Securities (net of allowance for credit losses) ​ 215,304 ​ Total Loans and Loans Held for Sale (net of unearned income) ​ 1,068,409 ​ Total Deposits ​ 1,202,928 ​ Total Net Income ​ 7,081 ​ Asset Leverage Ratio ​ 9.15 % Return on Average Assets ​ 0.51 ​ Return on Average Equity ​ 5.69 ​ Total Full-time Equivalent Employees ​ 278 ​ ​ RISK MANAGEMENT OVERVIEW Risk identification and management are essential elements for the successful management of the Company.
The following is a summary of key data (dollars in thousands) and ratios of the Bank at December 31, 2025: ​ ​ ​ ​ ​ ​ AmeriServ Financial Bank ​ ​ ​ Johnstown, PA Total Assets ​ $ 1,449,813 ​ Total Investment Securities (net of allowance for credit losses) and Trading Securities ​ 251,950 ​ Total Loans and Loans Held for Sale (net of unearned income) ​ 1,032,968 ​ Total Deposits ​ 1,249,609 ​ Total Net Income ​ 8,640 ​ Asset Leverage Ratio ​ 9.32 % Return on Average Assets ​ 0.60 ​ Return on Average Equity ​ 6.45 ​ Total Full-Time Equivalent Employees ​ 274 ​ ​ RISK MANAGEMENT OVERVIEW Risk identification and management are essential elements for the successful management of the Company.
The Company has not experienced a work stoppage since 1979. Unionization in financial institutions remains exceptionally low with less than 0.25% of banks nationwide being covered by a collective bargaining agreement. This unique unionization situation creates both challenges and opportunities for the Company.
The contract calls for annual wage increases of 4% for each of the first three years and 3% for the fourth year of the contract. The Company has not experienced a work stoppage since 1979. Unionization in financial institutions remains exceptionally low with less than 0.25% of banks nationwide being covered by a collective bargaining agreement.
Further, non-owner occupied commercial real estate loans represented 51.3% and 49.3% of total loans as of December 31, 2024 and 2023, respectively. 5 Table of Contents The following table presents our non-owner occupied commercial real estate loan portfolio by property type. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DECEMBER 31, 2024 ​ ​ COMMERCIAL ​ COMMERCIAL ​ ​ ​ ​ ​ ​ ​ REAL ESTATE ​ REAL ESTATE ​ OTHER COMMERCIAL ​ ​ ​ ​ ​ (NON-OWNER OCCUPIED) - ​ (NON-OWNER OCCUPIED) - ​ REAL ESTATE ​ ​ ​ ​ RETAIL MULTI-FAMILY (NON-OWNER OCCUPIED) TOTAL ​ ​ (IN THOUSANDS) 1-4 unit residential ​ $ — ​ $ — ​ $ 30,036 ​ $ 30,036 Multi-family ​ — ​ 114,055 ​ — ​ 114,055 Mixed use - apartments & retail/office ​ ​ — ​ ​ 18,309 ​ ​ — ​ ​ 18,309 Retail strip plaza ​ ​ 57,674 ​ ​ — ​ ​ — ​ ​ 57,674 Mall ​ ​ 3,622 ​ ​ — ​ ​ — ​ ​ 3,622 Major shopping center with anchor tenants ​ ​ 30,201 ​ ​ — ​ ​ — ​ ​ 30,201 Commercial office - urban ​ ​ — ​ ​ — ​ ​ 22,160 ​ ​ 22,160 Commercial office - suburban ​ ​ — ​ ​ — ​ ​ 27,675 ​ ​ 27,675 Hotel/motel ​ — ​ — ​ 38,324 ​ 38,324 Retail/service shops ​ 90,281 ​ — ​ — ​ 90,281 Personal care/hospital/medical office ​ — ​ — ​ 20,783 ​ 20,783 Manufacturing/warehouse ​ — ​ — ​ 87,748 ​ 87,748 Other ​ — ​ — ​ 1,063 ​ 1,063 Land acquisition and development ​ — ​ — ​ 6,093 ​ 6,093 Total ​ $ 181,778 ​ $ 132,364 ​ $ 233,882 ​ $ 548,024 ​ Residential Mortgages This category includes mortgages that are secured by residential property.
Further, non-owner occupied commercial real estate loans represented 50.4% and 51.3% of total loans as of December 31, 2025 and 2024, respectively. 5 Table of Contents The following table presents our non-owner occupied commercial real estate loan portfolio by property type. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DECEMBER 31, 2025 ​ ​ COMMERCIAL ​ COMMERCIAL ​ ​ ​ ​ ​ ​ ​ REAL ESTATE ​ REAL ESTATE ​ OTHER COMMERCIAL ​ ​ ​ ​ ​ (NON-OWNER OCCUPIED) - ​ (NON-OWNER OCCUPIED) - ​ REAL ESTATE ​ ​ ​ ​ ​ ​ ​ RETAIL ​ ​ ​ MULTI-FAMILY ​ ​ ​ (NON-OWNER OCCUPIED) ​ ​ ​ TOTAL ​ ​ (IN THOUSANDS) 1-4 unit residential ​ $ — ​ $ — ​ $ 24,258 ​ $ 24,258 Multi-family ​ — ​ 114,179 ​ — ​ 114,179 Mixed use - apartments & retail/office ​ ​ — ​ ​ 16,906 ​ ​ — ​ ​ 16,906 Retail strip plaza ​ ​ 62,500 ​ ​ — ​ ​ — ​ ​ 62,500 Mall ​ ​ 3,228 ​ ​ — ​ ​ — ​ ​ 3,228 Major shopping center with anchor tenants ​ ​ 30,396 ​ ​ — ​ ​ — ​ ​ 30,396 Commercial office - urban ​ ​ — ​ ​ — ​ ​ 15,065 ​ ​ 15,065 Commercial office - suburban ​ ​ — ​ ​ — ​ ​ 19,821 ​ ​ 19,821 Hotel/motel ​ — ​ — ​ 35,941 ​ 35,941 Retail/service shops ​ 75,406 ​ — ​ — ​ 75,406 Personal care/hospital/medical office ​ — ​ — ​ 20,914 ​ 20,914 Manufacturing/warehouse ​ — ​ — ​ 85,974 ​ 85,974 Other ​ — ​ — ​ 1,032 ​ 1,032 Land acquisition and development ​ — ​ — ​ 14,930 ​ 14,930 Total ​ $ 171,530 ​ $ 131,085 ​ $ 217,935 ​ $ 520,550 ​ Residential Mortgages This category includes mortgages that are secured by residential property.
The Company and its subsidiary derive substantially all of their income from banking, bank related services, and trust and wealth management related services. The Company functions primarily as a coordinating and servicing unit for its subsidiary entity in general management, accounting and taxes, loan review, internal audit, investment accounting, marketing and risk management.
The Company functions primarily as a coordinating and servicing unit for its subsidiary entity in general management, accounting and taxes, loan review, internal audit, investment accounting, marketing and risk management. As a bank holding company, the Company is subject to supervision and regular examination by the Federal Reserve Bank of Philadelphia and the Pennsylvania Department of Banking and Securities (PDB).
“Happy Valley” is another often-used term to refer to the State College area, including the borough and the townships of College, Harris, Patton, and Ferguson. The unemployment rate for the State College MSA decreased from a 2.9% average in 2023 to a 2.7% average in 2024 and remains one of the lowest of all regions in the Commonwealth.
The unemployment rate for the State College MSA increased from a 2.7% average in 2024 to a 3.2% average in 2025 and remains one of the lowest of all regions in the Commonwealth.
The Company’s other wholly owned subsidiary, the former AmeriServ Trust and Financial Services Company (the Trust Company), was merged with and into the Bank effective October 1, 2024. When used in this report, the “Company” may refer, depending on the context, to AmeriServ Financial, Inc. individually or AmeriServ Financial, Inc. and its direct and indirect subsidiaries.
When used in this report, the “Company” may refer, depending on the context, to AmeriServ Financial, Inc. individually or AmeriServ Financial, Inc. and its direct subsidiary. The Company’s principal activities consist of owning and operating its wholly owned subsidiary entity.
The applicability date for the majority of the provisions in the CRA regulations is January 1, 2026, and additional requirements will be applicable on January 1, 2027. ​ FDIC Insurance of Certain Accounts and Regulation by the FDIC The Bank is an FDIC insured financial institution whereby the FDIC provides deposit insurance for a certain maximum dollar amount per customer.
The 2023 final rule is currently stayed by a preliminary injunction. ​ FDIC Insurance of Certain Accounts and Regulation by the FDIC The Bank is an FDIC insured financial institution whereby the FDIC provides deposit insurance for a certain maximum dollar amount per customer.
In addition, some of these competitors, such as credit unions, are subject to a lesser degree of regulation or taxation than that imposed on the Company. 8 Table of Contents MARKET AREA & ECONOMY Both growth and inflation exceeded expectations in 2024.
In addition, some of these competitors, such as credit unions, are subject to a lesser degree of taxation than that imposed on the Company. 8 Table of Contents Technology and other changes are allowing consumers and businesses to complete financial transactions that historically have involved banks through alternative methods.
AGENCY ​ MUNICIPAL ​ BONDS ​ SECURITIES ​ FOR SALE Within 1 year ​ — % 3.01 % 5.15 % 3.24 % ​ 4.33 % After 1 year but within 5 years ​ 1.79 ​ 3.08 ​ 6.11 ​ 2.22 ​ ​ 5.51 ​ After 5 years but within 10 years ​ 1.62 ​ 2.28 ​ 7.05 ​ 2.95 ​ ​ 5.62 ​ Over 10 years ​ 2.69 ​ — ​ 4.27 ​ 3.20 ​ ​ 3.20 ​ Total ​ 1.93 ​ 2.71 ​ 6.41 ​ 3.18 ​ ​ 4.14 ​ ​ ​ Investment securities held to maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL ​ ​ ​ ​ ​ ​ ​ U.S.
AGENCY ​ MUNICIPAL ​ BONDS ​ SECURITIES ​ FOR SALE Within 1 year ​ — % 3.52 % 5.50 % — % ​ 5.34 % After 1 year but within 5 years ​ 1.71 ​ 2.49 ​ 6.72 ​ 3.40 ​ ​ 5.23 ​ After 5 years but within 10 years ​ 1.67 ​ 4.62 ​ 6.20 ​ 2.98 ​ ​ 5.53 ​ Over 10 years ​ 2.73 ​ 4.89 ​ 6.03 ​ 3.52 ​ ​ 3.57 ​ Total ​ 1.91 ​ 3.65 ​ 6.25 ​ 3.50 ​ ​ 4.24 ​ ​ ​ Investment securities held to maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S.
The Company’s principal activities consist of owning and operating its wholly owned subsidiary entity. At December 31, 2024, the Company had, on a consolidated basis, total assets, deposits, and shareholders’ equity of $1.4 billion, $1.2 billion, and $107.2 million, respectively.
At December 31, 2025, the Company had, on a consolidated basis, total assets, deposits, and shareholders’ equity of $1.5 billion, $1.2 billion, and $119.3 million, respectively. The Company and its subsidiary derive substantially all of their income from banking, bank related services, and trust and wealth management related services.
The Johnstown, PA MSA unemployment rate decreased from a 4.4% average in 2023 to a 4.1% average in 2024. The Johnstown, PA MSA continues to have one of the higher jobless rates among the 18 metropolitan statistical areas across the state. A declining population trend creates a growth challenge moving forward.
The Johnstown, PA MSA unemployment rate increased from a 4.1% average in 2024 to a 4.8% average in 2025. A declining population trend creates a growth challenge moving forward. Economic conditions are stronger in the State College market and mirror economic conditions experienced in the national economy.
Economic conditions are stronger in the State College market and mirror economic conditions experienced in the national economy. The community is a college town, dominated economically and demographically by the presence of the University Park campus of the Pennsylvania State University.
The community is a college town, dominated economically and demographically by the presence of the University Park campus of the Pennsylvania State University. “Happy Valley” is another often-used term to refer to the State College area, including the borough and the townships of College, Harris, Patton, and Ferguson.
Removed
As a bank holding company, the Company is subject to supervision and regular examination by the Federal Reserve Bank of Philadelphia and the Pennsylvania Department of Banking and Securities (PDB).
Added
Specifically, management has implemented and continues to maintain heightened risk management procedures and prudent underwriting criteria with respect to its commercial real estate portfolio. Loan monitoring practices include but are not limited to periodic stress testing analysis to evaluate changes to cash flows, collateral values and theoretical impact to capital.
Removed
As stated above, effective October 1, 2024, AmeriServ Trust and Financial Services Company merged with and into the Bank. The former Trust Company now functions as a division of the Bank, named AmeriServ Wealth and Capital Management.
Added
A robust semi-annual risk assessment of the commercial real estate portfolio is also conducted to evaluate the quality and trends in key underwriting metrics such as debt service coverage ratios, loan-to-value ratios, etc., as well as analyzing market data for both significant segments of the portfolio and segments perceived to evidence heightened risk.
Removed
Management strives to maintain a portfolio duration that is less than 60 months.
Added
AGENCY ​ MUNICIPAL ​ OTHER ​ SECURITIES ​ MATURITY Within 1 year ​ — % 3.61 % 5.18 % — % ​ 4.26 % After 1 year but within 5 years ​ — ​ 3.33 ​ — ​ — ​ ​ 3.33 ​ After 5 years but within 10 years ​ 2.01 ​ 2.82 ​ 6.80 ​ 3.89 ​ ​ 3.08 ​ Over 10 years ​ — ​ 3.50 ​ — ​ 4.44 ​ ​ 4.43 ​ Total ​ 2.01 ​ 3.13 ​ 6.13 ​ 4.42 ​ ​ 3.85 ​ ​ Finally, securities classified as trading assets are purchased with the intent of selling them in the near term (less than 30 days) to generate profits from short-term changes in price.
Removed
COMPETITION The Company faces strong competition from other commercial banks, savings banks, credit unions, savings and loan associations, and other financial or investment service institutions for business in the communities it serves. Several of these institutions are affiliated with major banking and financial institutions which are substantially larger and have greater financial resources than the Company.
Added
Trading securities are reported at fair value with unrealized gains and losses included in income.
Removed
Gross domestic product growth slowed to 1.6% in the first quarter of 2024, but inflation spiked, sidelining the Federal Reserve until the end of the third quarter of 2024. Growth accelerated to 3.0% in the second quarter and 3.1% in the third quarter, but inflation receded.
Added
COMPETITION The Company faces strong competition from large national and regional banks, other community banks, credit unions, savings and loan associations, securities and brokerage companies, mortgage companies, insurance companies, finance companies, money market mutual funds, fintech companies, and other non-bank financial service providers, many of which have greater financial, marketing and technological resources than us.
Removed
There was an unprecedented unemployment rise through 2024 due to slower hiring and steady, solid labor force growth. In fact, 2024 was the first time the unemployment rate ever rose more than 0.5% without significant layoffs. The unemployment rate was 4.1% in December.
Added
Many of these competitors are not subject to the same regulatory restrictions that we are and may be able to compete more effectively as a result. As the financial services industry continues to consolidate, the scope of potential competition affecting the Company will also increase.
Removed
The rise in the unemployment rate during 2024 caused the Federal Reserve to cut interest rates despite economic strength. Market expectations for Fed easing went on a rollercoaster in 2024. Sticky inflation early in the year pulled expectations back, before labor market weakness in the summer reignited calls for quick cuts.
Added
For example, the wide acceptance of internet-based commerce has resulted in a number of alternative payment processing systems and lending platforms in which banks play only minor roles. Customers can also maintain funds in prepaid debit cards or digital currencies and pay bills and transfer funds directly without the direct assistance of banks.
Removed
The Fed initiated easing with a 50-basis point September cut, followed by 25-basis point cuts at both fourth quarter Federal Open Market Committee meetings. In the waning weeks of 2024, noting stalled inflation, the Fed signaled slower easing in 2025. The U.S. economy expanded at an annualized 2.3% in the fourth quarter of 2024, the slowest growth in three quarters.
Added
The diminishing role of banks as financial intermediaries has resulted and could continue to result in the loss of fee income, as well as the loss of customer deposits and the related income generated from those deposits.
Removed
The 2024 annual growth was 2.5%. The resilience of American consumers was the driving force behind the solid economic growth. Donald Trump won the 2024 presidential election and carried enough House and Senate seats to secure a Republican sweep of both the executive and legislative branches.
Added
Emerging technologies, such as artificial intelligence (including machine learning, generative artificial intelligence and agentic artificial intelligence tools) and quantum computing, have the potential to intensify competition and accelerate disruption in the financial services industry.
Removed
Weighing President Trump’s plans, traders anticipate inflation and stronger growth, which could lead to higher yields and higher stocks. In 2024, the S&P 500 rose 23.3% and the U.S. Treasury 10-year yield rose 70-basis points to 4.58%. Personal Consumption Expenditures (PCE) inflation receded late in 2024, but not the core Consumer Price Index (CPI).
Added
While the Company does not offer products relating to digital assets, including cryptocurrencies, stablecoins and other similar assets, there has been a significant increase in digital asset adoption globally over the past several years.
Removed
Deposit insurance assessments fund the DIF. ​ On November 16, 2023, the FDIC adopted a final rule on special assessment to recover the losses to the DIF from the protection of uninsured depositors following the closures of Silicon Valley Bank, Santa Clara, CA, and Signature Bank, New York, NY during March 2023.
Added
Certain characteristics of digital asset transactions, such as the speed with which such transactions can be conducted, the ability to transact without the involvement of regulated intermediaries, the ability to engage in transactions across multiple jurisdictions, and the anonymous nature of the transactions, are appealing to certain consumers notwithstanding the various risks posed by such transactions.
Removed
The assessment base for the special assessment is equal to an IDI’s estimated uninsured deposits, reported for the quarter that ended December 31, 2022, adjusted to exclude the first $5 billion in estimated uninsured deposits from the IDI, or for IDIs that are part of a holding company with one or more subsidiary IDIs, at the banking organization level.
Added
Accordingly, digital asset service providers, which, at present, are not subject to the same degree of scrutiny and oversight as banking organizations and other financial institutions, are becoming active competitors to more traditional financial institutions. MARKET AREA & ECONOMY The year 2025 was extraordinary for the economy and the markets.
Removed
The FDIC will collect the special assessment at an annual rate of approximately 13.4 basis points, over eight quarterly assessment periods.
Added
Sweeping tariffs, a cooling labor market, rising consumer prices, a prolonged U.S. federal government shutdown, turmoil in the Middle East, and the ongoing Russia/Ukraine war were some of the many factors that should have signaled economic contraction and a downturn in the stock market. Yet, the opposite occurred.
Removed
The FDIC retained the ability to cease collection early, extend the special assessment collection period, and impose a final shortfall special assessment to collect the difference between actual losses and the amounts collected after the receiverships for Silicon Valley Bank and Signature Bank terminate.
Added
The 2025 market and economy were characterized by record-breaking resilience and significant policy shifts. The U.S. economy and major stock indexes delivered a third consecutive year of double-digit gains. The S&P 500 rose 16.4%, a third consecutive double-digit annual increase. The U.S. Treasury 10-year yield fell 40-basis points to 4.17%. Tariffs did not trigger feared recession or significant inflation.

… 5 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

9 edited+1 added−0 removed12 unchanged
Biggest changeCybersecurity is a critical component of risk management, given the increasing reliance on technology and the increasing cybersecurity threat landscape. The Information Security Program is built on the Federal Financial Institutions Examination Council (FFIEC) IT Handbooks, National Institute of Standards and Technology (NIST) Cybersecurity Framework, the Center for Internet Security (CIS) Cybersecurity Controls (CSC), and industry best practice.
Biggest changeThe Information Security Program is built on the Federal Financial Institutions 13 Table of Contents Examination Council (FFIEC) IT Handbooks, National Institute of Standards and Technology (NIST) Cybersecurity Framework, the Center for Internet Security (CIS) Cybersecurity Controls (CSC), and industry best practice.
Through the Vendor Management Committee, the Company conducts due diligence reviews of third-party vendors before contracts or agreements for provision of services are signed and conducts ongoing due diligence and oversight procedures with the frequency of the procedures determined based on a risk assessment of the services provided.
Through the Third-Party Risk Management Committee, the Company conducts due diligence reviews of third-party vendors before contracts or agreements for provision of services are signed and conducts ongoing due diligence and oversight procedures with the frequency of the procedures determined based on a risk assessment of the services provided.
The Board Technology Committee’s responsibilities include: (1) monitoring the strategic deployment and usage of Information Technology throughout the Company using reports and presentations from management; 14 Table of Contents (2) oversight of cybersecurity preparedness through information security reports, discussion of internal events and discussion of cybersecurity topics pertinent to the Company and the industry; (3) oversight of activities in support of the Company’s business continuity/disaster recovery program to ensure optimal corporate resiliency in the unlikely event of a disaster; and (4) providing broad strategic guidance on the technology direction of the Company by, among other things, overseeing the development of the AmeriServ Strategic Technology Plan. ​
The Board Technology Committee’s responsibilities include: (1) monitoring the strategic deployment and usage of Information Technology throughout the Company using reports and presentations from management; (2) oversight of cybersecurity preparedness through information security reports, discussion of internal events and discussion of cybersecurity topics pertinent to the Company and the industry; (3) oversight of activities in support of the Company’s business continuity/disaster recovery program to ensure optimal corporate resiliency in the unlikely event of a disaster; and (4) providing broad strategic guidance on the technology direction of the Company by, among other things, overseeing the development of the AmeriServ Strategic Technology Plan. ​
The CISO manages policy, procedure, and process to ensure the execution of the Company’s Information Security and Business Continuity/ Disaster Recovery (BC/DR) Programs. The CISO reports directly to the Chief Risk Officer to provide segregation between the first and second line of defense.
The CISO manages policy, procedure, and process to ensure the execution of the Company’s Information Security and Business Continuity/ Disaster Recovery (BC/DR) Programs. The CISO reports directly to the Chief Risk Officer to provide segregation between the first and second lines of defense.
The Information Technology Department is managed by the Chief Information Officer (CIO), who reports to the Company’s President and CEO. The present CIO has been employed by the Company in the information technology area for three years and was previously the CISO at the Company for two years.
The Information Technology Department is managed by the Chief Information Officer (CIO), who reports to the Company’s President and CEO. The present CIO has been employed by the Company in the information technology area for four years and was previously the CISO at the Company for two years.
Periodic risk assessments are performed to identify technical and physical risks to 13 Table of Contents information systems. These risk assessments identify internal and external threats that could cause a cybersecurity incident, assessing the likelihood of potential impact of those threats, and assessing the measures and controls in place to manage the risks.
Periodic risk assessments are performed to identify technical and physical risks to information systems. These risk assessments identify internal and external threats that could cause a cybersecurity incident, assessing the likelihood of potential impact of those threats, and assessing the measures and controls in place to manage the risks.
The present CIO has over 36 years of IT experience, 13 of that in banking. The CIO holds a current Certified Information Systems Security Professional (CISSP) designation. ​ The Chief Information Security Officer (CISO) whose responsibilities constitute the second line of defense provides the vision, leadership, and strategies necessary to protect the information security of the Company.
The present CIO has over 37 years of IT experience, 14 of that in banking. The CIO holds a current Certified Information Systems Security Professional (CISSP) designation. ​ The Chief Information Security Officer (CISO) whose responsibilities constitute the second line of defense provides the vision, leadership, and strategies necessary to protect the information security of the Company.
The Information Security Department, among other duties, supervises internal employee training relating to cybersecurity risks, conducts access reviews relating to the Company’s information systems, and monitors implemented security measures.
The Information Security Department, among other duties, supervises 14 Table of Contents internal employee training relating to cybersecurity risks, conducts access reviews relating to the Company’s information systems, and monitors implemented security measures.
The CISO has over 30 years of IT and IT security experience in various organizations with 14 years in the banking industry. ​ The Company has established a Management Technology Committee and a Board Technology Committee. These Committees provide oversight and governance of information technology and the Information Security Program and meet quarterly.
The present CISO has over 19 years of IT and information security experience across various organizations, including military service. ​ The Company has established a Management Technology Committee and a Board Technology Committee. These Committees provide oversight and governance of information technology and the Information Security Program and meet quarterly.
Added
Cybersecurity is a critical component of risk management, given the increasing reliance on technology and the increasing cybersecurity threat landscape.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed1 unchanged
Biggest changeSeven additional locations are leased with terms expiring from April 30, 2025 to December 31, 2033. ​
Biggest changeSeven additional locations are leased with terms expiring from September 30, 2026 to December 31, 2033. ​

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+0 added−1 removed0 unchanged
Biggest changeThe Company’s common stock is traded on The NASDAQ Stock Market under the symbol “ASRV.” The following table sets forth the actual high and low closing prices and the cash dividends declared per share for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH ​ ​ PRICES ​ DIVIDENDS ​ HIGH LOW DECLARED Year ended December 31, 2024: ​ ​ ​ ​ ​ ​ First Quarter ​ $ 3.27 ​ $ 2.39 ​ $ 0.03 Second Quarter ​ 2.86 ​ 2.26 ​ 0.03 Third Quarter ​ 2.79 ​ 2.27 ​ 0.03 Fourth Quarter ​ 3.04 ​ 2.58 ​ 0.03 Year ended December 31, 2023: ​ ​ ​ First Quarter ​ $ 4.09 ​ $ 3.05 ​ $ 0.03 Second Quarter ​ 3.28 ​ 2.46 ​ 0.03 Third Quarter ​ 3.33 ​ 2.41 ​ 0.03 Fourth Quarter ​ 3.28 ​ 2.51 ​ 0.03 ​ The declaration of cash dividends on the Company’s common stock is at the discretion of the Board, and any decision to declare a dividend is based on a number of factors, including, but not limited to, earnings, prospects, financial condition, regulatory capital levels, applicable covenants under any credit agreements and other contractual restrictions, Pennsylvania law, federal and Pennsylvania bank regulatory law, and other factors deemed relevant.
Biggest changeThe Company’s common stock is traded on The NASDAQ Stock Market under the symbol “ASRV.” The following table sets forth the actual high and low closing prices and the cash dividends declared per share for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH ​ ​ PRICES ​ DIVIDENDS ​ ​ ​ ​ HIGH ​ ​ ​ LOW ​ ​ ​ DECLARED Year ended December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter ​ $ 2.80 ​ $ 2.35 ​ $ 0.03 Second Quarter ​ 3.04 ​ 2.08 ​ 0.03 Third Quarter ​ 3.30 ​ 2.80 ​ 0.03 Fourth Quarter ​ 3.22 ​ 2.87 ​ 0.03 Year ended December 31, 2024: ​ ​ ​ ​ ​ ​ First Quarter ​ $ 3.27 ​ $ 2.39 ​ $ 0.03 Second Quarter ​ 2.86 ​ 2.26 ​ 0.03 Third Quarter ​ 2.79 ​ 2.27 ​ 0.03 Fourth Quarter ​ 3.04 ​ 2.58 ​ 0.03 ​ The declaration of cash dividends on the Company’s common stock is at the discretion of the Board, and any decision to declare a dividend is based on a number of factors, including, but not limited to, earnings, prospects, financial condition, regulatory capital levels, applicable covenants under any credit agreements and other contractual restrictions, Pennsylvania law, federal and Pennsylvania bank regulatory law, and other factors deemed relevant.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES COMMON STOCK As of March 10, 2025, the Company had 2,439 shareholders of record for its common stock.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES COMMON STOCK As of March 13, 2026, the Company had 2,345 shareholders of record for its common stock.
The Driver share repurchase was authorized by the Board of Directors. ​ ITEM 6. [RESERVED] ​ ​ 16 Table of Contents
Additionally, the Company does not currently have a common stock repurchase program authorized. ​ ITEM 6. [RESERVED] ​ ​ 16 Table of Contents
Removed
Additionally, the Company does not currently have a common stock repurchase program authorized. ​ On June 13, 2024, the Company entered into a Stock Purchase Agreement with Driver Opportunity Partners (Driver), in connection with a settlement agreement. In accordance with the agreement, the Company repurchased 628,003 shares of common stock from Driver at a per share price of $2.38.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

107 edited+54 added−53 removed73 unchanged
Biggest changeThe entire allowance for loan credit losses is available to absorb future losses in any loan category. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, ​ ​ 2024 ​ 2023 ​ 2022 ​ 2021 ​ 2020 ​ ​ ​ ​ ​ PERCENT ​ ​ ​ ​ PERCENT ​ ​ ​ ​ PERCENT ​ ​ ​ ​ PERCENT ​ ​ ​ ​ PERCENT ​ ​ ​ ​ ​ OF LOANS ​ ​ ​ ​ OF LOANS ​ ​ ​ ​ OF LOANS ​ ​ ​ ​ OF LOANS ​ ​ ​ ​ OF LOANS ​ ​ ​ ​ IN EACH ​ ​ ​ IN EACH ​ ​ ​ ​ IN EACH ​ ​ ​ IN EACH ​ ​ ​ IN EACH ​ ​ ​ ​ ​ CATEGORY ​ ​ ​ ​ CATEGORY ​ ​ ​ CATEGORY ​ ​ ​ ​ CATEGORY ​ ​ ​ ​ CATEGORY ​ ​ ​ ​ ​ ​ TO TOTAL ​ ​ ​ TO TOTAL ​ ​ ​ ​ TO TOTAL ​ ​ ​ TO TOTAL ​ ​ ​ TO TOTAL ​ ​ AMOUNT LOANS AMOUNT LOANS AMOUNT LOANS AMOUNT LOANS AMOUNT LOANS ​ ​ (IN THOUSANDS, EXCEPT PERCENTAGES) ​ Commercial real estate (owner occupied) $ 398 ​ 8.1 % $ 1,529 ​ 8.6 % $ — ​ — % $ — ​ — % $ — ​ — % Other commercial and industrial ​ ​ 2,860 ​ 13.8 ​ ​ 3,030 ​ 15.4 ​ ​ — ​ — ​ ​ — ​ — ​ ​ — ​ — ​ Commercial (owner occupied real estate and other) ​ ​ — ​ — ​ ​ — ​ — ​ ​ 2,653 ​ 23.1 ​ ​ 3,071 ​ 25.5 ​ ​ 3,472 ​ 31.4 ​ Commercial real estate (non-owner occupied) - retail ​ ​ 3,695 ​ 17.0 ​ ​ 3,488 ​ 15.6 ​ ​ — ​ — ​ ​ — ​ — ​ ​ — ​ — ​ Commercial real estate (non-owner occupied) - multi-family ​ ​ 1,478 ​ 12.4 ​ ​ 1,430 ​ 10.6 ​ ​ — ​ — ​ ​ — ​ — ​ ​ — ​ — ​ Other commercial real estate (non-owner occupied) ​ 3,451 21.9 ​ 3,428 23.1 ​ 5,972 45.5 ​ 6,392 43.8 ​ 5,373 41.2 ​ Residential mortgages ​ 839 16.6 ​ 1,021 16.8 ​ 1,380 30.1 ​ 1,590 29.2 ​ 1,292 25.7 ​ Consumer ​ 1,191 10.2 ​ 1,127 9.9 ​ 85 1.3 ​ 113 1.5 ​ 115 1.7 ​ Allocation to general risk ​ — — ​ — — ​ 653 — ​ 1,232 — ​ 1,093 — ​ Total ​ $ 13,912 100.0 % $ 15,053 100.0 % $ 10,743 100.0 % $ 12,398 100.0 % $ 11,345 100.0 % ​ The disproportionately higher allocations for commercial loans, including commercial loans secured by owner occupied real estate and commercial & industrial loans, and commercial loans secured by non-owner occupied real estate reflect the increased credit risk associated with those types of lending, the Company’s historical loss experience in these categories, and other qualitative factors.
Biggest changeThe entire allowance for loan credit losses is available to absorb future losses in any loan category. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ PERCENT ​ ​ ​ ​ PERCENT ​ ​ ​ ​ ​ ​ OF LOANS ​ ​ ​ ​ OF LOANS ​ ​ ​ ​ ​ IN EACH ​ ​ ​ IN EACH ​ ​ ​ ​ ​ CATEGORY ​ ​ ​ ​ CATEGORY ​ ​ ​ ​ ​ ​ TO TOTAL ​ ​ ​ TO TOTAL ​ ​ ​ ​ ​ AMOUNT ​ ​ ​ LOANS ​ ​ ​ AMOUNT ​ ​ ​ LOANS ​ ​ ​ ​ (IN THOUSANDS, EXCEPT PERCENTAGES) Commercial real estate (owner occupied) ​ ​ ​ $ 319 ​ 8.3 % $ 398 ​ 8.1 % Commercial and industrial ​ ​ 2,987 ​ 14.0 ​ ​ 2,860 ​ 13.8 ​ Commercial (owner occupied real estate and other) ​ ​ — ​ — ​ ​ — ​ — ​ Commercial real estate (non-owner occupied) - retail ​ ​ 3,248 ​ 16.6 ​ ​ 3,695 ​ 17.0 ​ Commercial real estate (non-owner occupied) - multi-family ​ ​ 1,403 ​ 12.7 ​ ​ 1,478 ​ 12.4 ​ Other commercial real estate (non-owner occupied) ​ 3,725 21.1 ​ 3,451 21.9 ​ Residential mortgages ​ 296 16.4 ​ 839 16.6 ​ Consumer ​ 1,150 10.9 ​ 1,191 10.2 ​ Allocation to general risk ​ — — ​ — — ​ Total ​ $ 13,128 100.0 % $ 13,912 100.0 % ​ The disproportionately higher allocations for commercial loans, including commercial loans secured by owner occupied real estate and commercial & industrial loans, and commercial loans secured by non-owner occupied real estate, reflect the increased credit risk associated with those types of lending, the Company’s historical loss experience in these categories, and other qualitative factors.
The Company does not utilize brokered deposits as a funding source. In addition to its loyal core deposit base, the Company has several other sources of liquidity, including a significant unused borrowing capacity at the Federal Home Loan Bank (FHLB), overnight lines of credit at correspondent banks and access to the Federal Reserve Discount Window.
In addition to its loyal core deposit base, the Company has several other sources of liquidity, including a significant unused borrowing capacity at the Federal Home Loan Bank (FHLB), overnight lines of credit at correspondent banks and access to the Federal Reserve Discount Window. The Company does not utilize brokered deposits as a funding source.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES. This document contains certain financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (GAAP). The tangible common equity ratio and tangible book value per share are considered to be non-GAAP measures and are calculated by dividing tangible equity by tangible assets or shares outstanding.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES. This document contains certain financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (GAAP). The tangible common equity ratio and tangible book value per share are considered to be non-GAAP measures and are calculated by dividing tangible common equity by tangible assets or shares outstanding.
In addition, ASC 326 requires credit losses on available for sale (AFS) debt securities to be presented as an allowance rather than as a write-down when management does not intend to sell or believes that it is not more likely than not, they will be required to sell the security.
In addition, ASC 326 requires credit losses on available for sale (AFS) debt securities to be presented as an allowance rather than as a write-down when management does not intend to sell or believes that it is not more likely than not, they will be required to sell the security.
The variability of net interest income was slightly negative in the upward rate scenarios as the Company was marginally more exposed to liabilities repricing upward to a greater extent than assets. Specifically, the cost of funds was immediately impacted when short-term national interest rates increase because certain deposit products and overnight borrowed funds move with the market.
The variability of net interest income was slightly negative in the upward rate scenarios as the Company was marginally more exposed to liabilities repricing upward to a greater extent than assets. Specifically, the cost of funds was immediately impacted when short-term national interest rates increased because certain deposit products and overnight borrowed funds move with the market.
Additionally, pension expense can also be impacted by settlement accounting charges if the amount of employee selected lump sum distributions exceed the total amount of service and interest component costs of the net periodic pension cost in a particular year. Our pension benefits are described further in Note 16 of the Notes to Consolidated Financial Statements.
Additionally, pension expense can also be impacted by settlement accounting charges if the amount of employee selected lump sum distributions exceed the total amount of service and interest component costs of the net periodic pension cost in a particular year. Our pension benefits are described further in Note 15 of the Notes to Consolidated Financial Statements.
Specifically, the lower provision for credit losses for 2024 reflects provision recoveries recognized in both the loan and securities portfolios during the first and third quarters while the 2023 provision was significantly higher due to the negative impact that the Rite Aid bankruptcy had on several commercial real estate properties.
Specifically, the lower provision for credit losses in 2024 reflected provision recoveries recognized in both the loan and securities portfolios during the first and third quarters while the 2023 provision was significantly higher due to the negative impact that the Rite Aid bankruptcy had on several commercial real estate properties.
The execution of $70 million of interest rate hedges during 2023, in order to fix the cost of certain deposits that are indexed and move with short-term interest rates, reduced the Company’s negative variability of net interest income in a rising interest rate environment and helped slow net interest margin compression.
The execution of $70 million of interest rate hedges during 2023, in order to fix the cost of certain deposits that are indexed and move with short-term interest rates, reduced the Company’s negative variability of net interest income in a rising interest rate environment and helped slow net interest margin compression while interest rates were rising.
Such factors include the following: (i) the effect of changing regional and national economic conditions; (ii) the effects of trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve; (iii) significant changes in interest rates and prepayment speeds; (iv) inflation, stock and bond market, and monetary fluctuations; (v) credit risks of commercial, real estate, consumer, and other lending activities; (vi) changes in federal and state banking and financial services laws and regulations and supervisory actions by such regulators, including bank failures; (vii) the presence in the Company’s market area of competitors with greater financial resources than the Company; (viii) the timely development of competitive new products and services by the Company and the acceptance of those products and services by customers and regulators (when required); (ix) the willingness of customers to substitute competitors’ products and services for those of the Company and vice versa; (x) changes in consumer spending and savings habits; (xi) unanticipated regulatory or judicial proceedings; (xii) the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; (xiii) the ability to generate future revenue growth or to control future growth in non-interest expense, including, but not limited to, those related to technological changes, including changes regarding artificial intelligence and cybersecurity, changes affecting oversight of the financial services industry, and changes intended to manage or mitigate climate and related environmental risks; (xiv) the impact of failure in, or breach of, our operational or security systems or those of third parties with whom we do business, including as a result of cyberattacks or an increase in the incidence of fraud, illegal payments, security breaches or other illegal acts impacting us or our customers; and (xv) other external developments which could materially impact the Company’s operational and financial performance.
Such factors include the following: (i) the effect of changing regional and national economic conditions; (ii) the effects of trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve; (iii) significant changes in interest rates and prepayment speeds; (iv) inflation, stock and bond market, and monetary fluctuations; (v) credit risks of commercial, real estate, consumer, and other lending activities; (vi) changes in federal and state banking and financial services laws and regulations and supervisory actions by such regulators, including bank failures; (vii) the presence in the Company’s market area of competitors with greater financial resources than the Company; (viii) the timely development of competitive new products and services by the Company and the acceptance of those products and services by customers and regulators (when required); (ix) the willingness of customers to 36 Table of Contents substitute competitors’ products and services for those of the Company and vice versa; (x) changes in consumer spending and savings habits; (xi) unanticipated regulatory or judicial proceedings; (xii) the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; (xiii) the ability to generate future revenue growth or to control future growth in non-interest expense, including, but not limited to, those related to technological changes, including changes regarding artificial intelligence and cybersecurity, changes affecting oversight of the financial services industry, and changes intended to manage or mitigate climate and related environmental risks; (xiv) the impact of failure in, or breach of, our operational or security systems or those of third parties with whom we do business, including as a result of cyberattacks or an increase in the incidence of fraud, illegal payments, security breaches or other illegal acts impacting us or our customers; (xv) unanticipated effects to our banking platform, including risks and unanticipated costs related to a core system migration; and (xvi) other external developments which could materially impact the Company’s operational and financial performance.
Based on the Company’s current allowance for credit losses methodology and the related assessment of the inherent risk factors contained within the Company’s investment securities and loan portfolios, we believe that the allowance for credit losses was adequate at December 31, 2024 to cover losses within the Company’s investment securities and loan portfolios. NON-INTEREST INCOME.
Based on the Company’s current allowance for credit losses methodology and the related assessment of the inherent risk factors contained within the Company’s investment securities and loan portfolios, we believe that the allowance for credit losses was adequate at December 31, 2025 to cover losses within the Company’s investment securities and loan portfolios. NON-INTEREST INCOME.
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.
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 line of business.
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 and capital management division; ● a $533,000, or 10.0%, decrease in professional fees. Professional fees in both 2024 and 2023 were impacted by litigation and responses to the actions of an activist shareholder.
These favorable items were partially offset by an increased level of incentive compensation by $294,000, or 25.1%, which corresponded to the strong performance of the Wealth and Capital Management division; ● a $533,000, or 10.0%, decrease in professional fees. Professional fees in both 2024 and 2023 were impacted by litigation and responses to the actions of an activist shareholder.
The simulation modeling incorporates assumptions about reinvestment and the repricing characteristics of certain assets and liabilities without stated contractual maturities; (ii) market value of portfolio equity sensitivity analysis; and (iii) static GAP analysis, which analyzes the extent to which 29 Table of Contents interest rate sensitive assets and interest rate sensitive liabilities are matched at specific points in time.
The simulation modeling incorporates assumptions about reinvestment and the repricing characteristics of certain assets and liabilities without stated contractual maturities; (ii) market value of portfolio equity sensitivity analysis; and (iii) static GAP analysis, which analyzes the extent to which interest rate sensitive assets and interest rate sensitive liabilities are matched at specific points in time.
The interest rate scenarios in the table compare the Company’s base forecast, which was prepared using a flat interest rate scenario, to scenarios that reflect immediate interest rate changes of 100 and 200 basis points.
The interest rate scenarios in the table compare the Company’s base forecast, which was prepared using a flat interest rate scenario, to scenarios that reflect immediate interest rate changes of 100 and 200 basis 30 Table of Contents points.
This process also considers economic conditions, for a reasonable and supportable forecast period of two years. All of these factors may be susceptible to significant change. 34 Table of Contents To the extent actual outcomes differ from management estimates, additional provision for credit losses may be required that would adversely impact earnings in future periods.
This process also considers economic conditions, for a reasonable and supportable forecast period of two years. All of these factors may be susceptible to significant change. 34 Table of Contents To the extent actual outcomes differ from management estimates, additional provision for credit losses may be required that would adversely impact earnings in future periods. Changes in the U3 U.S.
Each rate scenario contains unique prepayment and repricing assumptions that are applied to the Company’s existing balance sheet that was developed under the flat interest rate scenario. ​ ​ ​ ​ ​ ​ ​ INTEREST RATE SCENARIO VARIABILITY OF NET INTEREST INCOME CHANGE IN MARKET VALUE OF PORTFOLIO EQUITY ​ 200 bp increase ​ (0.7) % 2.1 % 100 bp increase (0.3) 2.1 ​ 100 bp decrease (0.1) (4.4) ​ 200 bp decrease (0.6) (11.8) ​ ​ The Company believes that its overall interest rate risk position is well controlled.
Each rate scenario contains unique prepayment and repricing assumptions that are applied to the Company’s existing balance sheet that was developed under the flat interest rate scenario. ​ ​ ​ ​ ​ ​ ​ INTEREST RATE SCENARIO ​ ​ ​ VARIABILITY OF NET INTEREST INCOME ​ ​ ​ CHANGE IN MARKET VALUE OF PORTFOLIO EQUITY ​ 200 bp increase ​ (1.2) % 8.6 % 100 bp increase (0.5) 5.0 ​ 100 bp decrease (0.4) (8.0) ​ 200 bp decrease (2.3) (19.9) ​ ​ The Company believes that its overall interest rate risk position is well controlled.
The Company entered into a risk participation agreement (RPA) with the lead bank of a commercial real estate loan arrangement. As a participating bank, the Company guarantees the performance on a borrower-related interest rate swap contract. The notional amount of the RPA outstanding at December 31, 2024 was $4.9 million, with a negative fair value of $207,000.
The Company entered into a risk participation agreement (RPA) with the lead bank of a commercial real estate loan arrangement. As a participating bank, the Company guarantees the performance on a borrower-related interest rate swap contract. The notional amount of the RPA outstanding at December 31, 2025 was $4.9 million, with a negative fair value of $303,000.
INTEREST RATE SENSITIVITY. Asset/liability management involves managing the risks associated with changing interest rates and the resulting impact on the Company’s net interest income, net income and capital.
Asset/liability management involves managing the risks associated with changing interest rates and the resulting impact on the Company’s net interest income, net income and capital.
The foregoing list of important factors is not exclusive, and neither such list, nor any forward-looking statement takes into account the impact that any future acquisition may have on the Company and on any such forward-looking statement. ​ 36 Table of Contents
The foregoing list of important factors is not exclusive, and neither such list, nor any forward-looking statement takes into account the impact that any future acquisition may have on the Company and on any such forward-looking statement. ​
In addition, the Company has entered into three interest rate swaps with a total notional value of $70 million in order to hedge the interest rate risk associated with certain floating-rate time deposit accounts. At December 31, 2024, the hedges had a negative fair value of $169,000.
In addition, the Company has entered into three interest rate swaps with a total notional value of $70 million in order to hedge the interest rate risk associated with certain floating-rate time deposit accounts. At December 31, 2025, the hedges had a negative fair value of $118,000.
As of December 31, 2024 and 2023, municipal deposit letters of credit issued by the Federal Home Loan Bank of Pittsburgh on behalf of AmeriServ Financial Bank naming applicable municipalities as beneficiaries totaled $174.4 million and $121.4 million, respectively. The letters of credit serve as collateral, in place of pledged securities, for municipal deposits maintained at AmeriServ Financial Bank.
As of December 31, 2025 and 2024, municipal deposit letters of credit issued by the Federal Home Loan Bank of Pittsburgh on behalf of AmeriServ Financial Bank naming applicable municipalities as beneficiaries totaled $182.2 million and $174.4 million, respectively. The letters of credit serve as collateral, in place of pledged securities, for municipal deposits maintained at AmeriServ Financial Bank.
At December 31, 2024, the Company 28 Table of Contents had $277 million of overnight borrowing availability at the FHLB, $41 million of short-term borrowing availability at the Federal Reserve Bank and $35 million of unsecured federal funds lines with correspondent banks.
At December 31, 2025, the Company had $311 million of overnight borrowing availability at the FHLB, $41 million of short-term borrowing availability at 28 Table of Contents the Federal Reserve Bank and $35 million of unsecured federal funds lines with correspondent banks.
These adjustments reflect the changing national interest rates which favorably impacted 2024 by $866,000.
These adjustments reflected the changing national interest rates which favorably impacted 2024 by $866,000.
There were 259 available for sale securities that were in an unrealized loss position at December 31, 2024. These unrealized losses were primarily a result of increases in market yields from the time of purchase.
There were 204 available for sale securities that were in an unrealized loss position at December 31, 2025. These unrealized losses were primarily a result of increases in market yields from the time of purchase.
The Company had various outstanding commitments to extend credit approximating $233.2 million and standby letters of credit of $8.7 million as of December 31, 2024. 32 Table of Contents The Company can also use various interest rate contracts, such as interest rate swaps, caps, and floors to help manage interest rate and market valuation risk exposure, which is incurred in normal recurrent banking activities.
The Company had various outstanding commitments to extend credit approximating $239.9 million and standby letters of credit of $8.8 million as of December 31, 2025. 32 Table of Contents The Company can also use various interest rate contracts, such as interest rate swaps, caps, and floors to help manage interest rate and market valuation risk exposure, which is incurred in normal recurrent banking activities.
The Company’s core deposit base continued to demonstrate the strength and stability that it has for many years. Total deposits grew during 2024 by $42.6 million, or 3.7%, on an end of period basis 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 Company’s core deposit base continued to demonstrate the strength and stability that it has for many years. Total deposits grew during 2025 by $47.1 million, or 3.9%, on an end of period basis since December 31, 2024, demonstrating customer loyalty and confidence in AmeriServ Financial Bank. The Company does not utilize brokered deposits as a funding source.
These assets totaled $17.7 million and $14.0 million at December 31, 2024 and 2023, respectively. Maturing and repaying loans, as well as the monthly cash flow associated with mortgage-backed securities and security maturities are other significant sources of asset liquidity for the Company.
These assets totaled $50.9 million and $17.7 million at December 31, 2025 and 2024, respectively. Maturing and repaying loans, as well as the monthly cash flow associated with mortgage-backed securities and security maturities are other significant sources of asset liquidity for the Company.
Negative variability of market value of portfolio equity occurs in the downward rate shocks due to a reduced value for core deposits. Within the investment securities portfolio at December 31, 2024, 73.0% of the portfolio was classified as available for sale and 27.0% as held to maturity.
Negative variability of market value of portfolio equity occurs in the downward rate shocks due to a reduced value for core deposits. Within the investment securities portfolio at December 31, 2025, 72.0% of the portfolio was classified as available for sale and 28.0% as held to maturity.
We strive to operate our loan to deposit ratio in a range of 80% to 100%. The Company’s loan to deposit ratio averaged 88.8% in 2024, which indicates that the Company has ample capacity to continue to grow its loan portfolio and is well positioned to support its customers and community during times of economic volatility.
We strive to operate our loan to deposit ratio in a range of 80% to 100%. The Company’s loan to deposit ratio averaged 85.9% in 2025, which indicates that the Company has ample capacity to grow its loan portfolio and is well positioned to support its customers and community during times of economic volatility.
The increase in the average balance of total interest earning assets along with an improvement in the yield on earning assets, which increased from 4.84% to 5.18%, resulted in total interest income increasing by $5.6 million, or 9.3%, between years.
The increase in the average balance of total interest earning assets along with an improvement in the yield on earning assets, which increased from 5.18% to 5.35%, resulted in total interest income increasing by $4.8 million, or 7.3%, between years.
We also continue to closely monitor the loan portfolio given the number of relatively large-sized commercial and commercial real estate loans within the portfolio. As of December 31, 2024, the 25 largest credits represented 24.0% of total loans outstanding, which represents an increase from December 31, 2023 when it was 22.7%. ALLOWANCE AND PROVISION FOR CREDIT LOSSES.
We also continue to closely monitor the loan portfolio given the number of relatively large-sized commercial and commercial real estate loans within the portfolio. As of December 31, 2025, the 25 largest credits represented 24.6% of total loans outstanding, which represented a slight increase from December 31, 2024 when it was 24.0%. ALLOWANCE AND PROVISION FOR CREDIT LOSSES.
The Company incurs off-balance sheet risks in the normal course of business in order to meet the financing needs of its customers. These risks derive from commitments to extend credit and standby letters of credit.
The Company incurs off-balance sheet risks in the normal course of business in order to meet the financing needs of its customers. These risks derive from commitments to extend credit and standby letters of credit. Such commitments and standby letters of credit involve, to varying degrees, elements of credit risk.
SELECTED FIVE-YEAR CONSOLIDATED FINANCIAL DATA ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT OR FOR THE YEAR ENDED DECEMBER 31, ​ ​ 2024 2023 2022 2021 2020 ​ ​ ​ (IN THOUSANDS, EXCEPT PER SHARE DATA AND RATIOS) ​ SUMMARY OF INCOME STATEMENT DATA: ​ ​ ​ ​ ​ ​ Total interest income ​ $ 66,505 ​ $ 60,860 ​ $ 49,058 ​ $ 46,669 ​ $ 46,882 ​ Total interest expense ​ 30,457 ​ 24,840 ​ 8,495 ​ 7,586 ​ 10,515 ​ Net interest income ​ 36,048 ​ 36,020 ​ 40,563 ​ 39,083 ​ 36,367 ​ Provision for credit losses ​ 884 ​ 7,429 ​ 50 ​ 1,100 ​ 2,375 ​ Net interest income after provision for credit losses ​ 35,164 ​ 28,591 ​ 40,513 ​ 37,983 ​ 33,992 ​ Total non-interest income ​ 17,975 ​ 16,389 ​ 16,692 ​ 17,761 ​ 16,275 ​ Total non-interest expense ​ 48,740 ​ 49,368 ​ 48,004 ​ 46,970 ​ 44,455 ​ Income (loss) before income taxes ​ 4,399 ​ (4,388) ​ 9,201 ​ 8,774 ​ 5,812 ​ Provision (benefit) for income taxes ​ 798 ​ (1,042) ​ 1,753 ​ 1,702 ​ 1,214 ​ Net income (loss) ​ $ 3,601 ​ $ (3,346) ​ $ 7,448 ​ $ 7,072 ​ $ 4,598 ​ PER COMMON SHARE DATA: ​ ​ ​ ​ ​ ​ Basic earnings per share ​ $ 0.21 ​ $ (0.20) ​ $ 0.44 ​ $ 0.41 ​ $ 0.27 ​ Diluted earnings per share ​ 0.21 ​ (0.20) ​ 0.43 ​ 0.41 ​ 0.27 ​ Cash dividends declared ​ 0.120 ​ 0.120 ​ 0.115 ​ 0.100 ​ 0.100 ​ Book value at period end ​ 6.49 ​ 5.96 ​ 6.20 ​ 6.82 ​ 6.12 ​ BALANCE SHEET AND OTHER DATA: ​ ​ ​ ​ ​ ​ Total assets ​ $ 1,422,362 ​ $ 1,389,638 ​ $ 1,363,874 ​ $ 1,335,560 ​ $ 1,282,733 ​ Loans and loans held for sale, net of unearned income ​ 1,068,409 ​ 1,038,401 ​ 990,825 ​ 986,037 ​ 978,345 ​ Allowance for credit losses - loans ​ 13,912 ​ 15,053 ​ 10,743 ​ 12,398 ​ 11,345 ​ Investment securities, net of allowance for credit losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for sale ​ 155,620 ​ 165,711 ​ 179,508 ​ 163,171 ​ 144,165 ​ Held to maturity ​ 63,837 ​ 63,979 ​ 61,878 ​ 53,751 ​ 44,222 ​ Deposits ​ 1,200,995 ​ 1,158,360 ​ 1,108,537 ​ 1,139,378 ​ 1,054,920 ​ Total borrowed funds ​ 101,687 ​ 115,556 ​ 138,373 ​ 72,837 ​ 114,080 ​ Shareholders’ equity ​ 107,248 ​ 102,277 ​ 106,178 ​ 116,549 ​ 104,399 ​ Full-time equivalent employees ​ 302 ​ 307 ​ 315 ​ 304 ​ 299 ​ SELECTED FINANCIAL RATIOS: ​ ​ ​ ​ ​ ​ Return on average assets ​ 0.26 % (0.25) % 0.55 % 0.52 % 0.37 % Return on average total equity ​ 3.46 ​ (3.23) ​ 6.83 ​ 6.48 ​ 4.52 ​ Loans and loans held for sale, net of unearned income, as a percentage of deposits, at period end ​ 88.96 ​ 89.64 ​ 89.38 ​ 86.54 ​ 92.74 ​ Common stock cash dividends as a percentage of net income (loss) ​ 55.99 ​ (61.48) ​ 26.41 ​ 24.14 ​ 37.09 ​ Interest rate spread ​ 2.41 ​ 2.47 ​ 3.11 ​ 3.01 ​ 3.01 ​ Net interest margin ​ 2.81 ​ 2.86 ​ 3.27 ​ 3.15 ​ 3.19 ​ Allowance for credit losses - loans as a percentage of loans, net of unearned income, at period end ​ 1.30 ​ 1.45 ​ 1.08 ​ 1.26 ​ 1.16 ​ Non-performing loans as a percentage of loans, at period end ​ 1.02 ​ 1.19 ​ 0.52 ​ 0.34 ​ 0.34 ​ Net charge-offs as a percentage of average loans ​ 0.19 ​ 0.35 ​ 0.17 ​ — ​ 0.03 ​ ​ 17 Table of Contents RESULTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 PERFORMANCE OVERVIEW.
SELECTED FIVE-YEAR CONSOLIDATED FINANCIAL DATA ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT OR FOR THE YEAR ENDED DECEMBER 31, ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2022 ​ ​ ​ 2021 ​ ​ ​ (IN THOUSANDS, EXCEPT PER SHARE DATA AND RATIOS) ​ SUMMARY OF INCOME STATEMENT DATA: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total interest income ​ $ 71,354 ​ $ 66,505 ​ $ 60,860 ​ $ 49,058 ​ $ 46,669 ​ Total interest expense ​ 29,091 ​ 30,457 ​ 24,840 ​ 8,495 ​ 7,586 ​ Net interest income ​ 42,263 ​ 36,048 ​ 36,020 ​ 40,563 ​ 39,083 ​ Provision for credit losses ​ 4,120 ​ 884 ​ 7,429 ​ 50 ​ 1,100 ​ Net interest income after provision for credit losses ​ 38,143 ​ 35,164 ​ 28,591 ​ 40,513 ​ 37,983 ​ Total non-interest income ​ 16,989 ​ 17,975 ​ 16,389 ​ 16,692 ​ 17,761 ​ Total non-interest expense ​ 48,336 ​ 48,740 ​ 49,368 ​ 48,004 ​ 46,970 ​ Income (loss) before income taxes ​ 6,796 ​ 4,399 ​ (4,388) ​ 9,201 ​ 8,774 ​ Provision (benefit) for income taxes ​ 1,184 ​ 798 ​ (1,042) ​ 1,753 ​ 1,702 ​ Net income (loss) ​ $ 5,612 ​ $ 3,601 ​ $ (3,346) ​ $ 7,448 ​ $ 7,072 ​ PER COMMON SHARE DATA: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per share ​ $ 0.34 ​ $ 0.21 ​ $ (0.20) ​ $ 0.44 ​ $ 0.41 ​ Diluted earnings per share ​ 0.34 ​ 0.21 ​ (0.20) ​ 0.43 ​ 0.41 ​ Cash dividends declared ​ 0.120 ​ 0.120 ​ 0.120 ​ 0.115 ​ 0.100 ​ Book value at period end ​ 7.22 ​ 6.49 ​ 5.96 ​ 6.20 ​ 6.82 ​ BALANCE SHEET AND OTHER DATA: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 1,453,813 ​ $ 1,422,362 ​ $ 1,389,638 ​ $ 1,363,874 ​ $ 1,335,560 ​ Loans and loans held for sale, net of unearned income ​ 1,032,968 ​ 1,068,409 ​ 1,038,401 ​ 990,825 ​ 986,037 ​ Allowance for credit losses - loans ​ 13,128 ​ 13,912 ​ 15,053 ​ 10,743 ​ 12,398 ​ Investment securities, net of allowance for credit losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for sale ​ 176,228 ​ 155,620 ​ 165,711 ​ 179,508 ​ 163,171 ​ Held to maturity ​ 72,256 ​ 63,837 ​ 63,979 ​ 61,878 ​ 53,751 ​ Deposits ​ 1,248,128 ​ 1,200,995 ​ 1,158,360 ​ 1,108,537 ​ 1,139,378 ​ Total borrowed funds ​ 75,309 ​ 101,687 ​ 115,556 ​ 138,373 ​ 72,837 ​ Shareholders’ equity ​ 119,312 ​ 107,248 ​ 102,277 ​ 106,178 ​ 116,549 ​ Full-time equivalent employees ​ 298 ​ 302 ​ 307 ​ 315 ​ 304 ​ SELECTED FINANCIAL RATIOS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on average assets ​ 0.39 % 0.26 % (0.25) % 0.55 % 0.52 % Return on average total equity ​ 5.03 ​ 3.46 ​ (3.23) ​ 6.83 ​ 6.48 ​ Loans and loans held for sale, net of unearned income, as a percentage of deposits, at period end ​ 82.76 ​ 88.96 ​ 89.64 ​ 89.38 ​ 86.54 ​ Common stock cash dividends as a percentage of net income (loss) ​ 35.32 ​ 55.99 ​ (61.48) ​ 26.41 ​ 24.14 ​ Interest rate spread ​ 2.82 ​ 2.41 ​ 2.47 ​ 3.11 ​ 3.01 ​ Net interest margin ​ 3.15 ​ 2.81 ​ 2.86 ​ 3.27 ​ 3.15 ​ Allowance for credit losses - loans as a percentage of loans, net of unearned income, at period end ​ 1.27 ​ 1.30 ​ 1.45 ​ 1.08 ​ 1.26 ​ Non-performing loans as a percentage of loans, at period end ​ 0.80 ​ 1.02 ​ 1.19 ​ 0.52 ​ 0.34 ​ Net charge-offs as a percentage of average loans ​ 0.46 ​ 0.19 ​ 0.35 ​ 0.17 ​ — ​ ​ 17 Table of Contents RESULTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 PERFORMANCE OVERVIEW.
The tax equivalent adjustments to interest income on loans for the years ended December 31, 2024 and 2023 was $26,000 and $15,000, respectively, which is reconciled to the corresponding GAAP measure at the bottom of the table.
The tax equivalent adjustments to interest income on loans, municipal securities, and trading securities for the years ended December 31, 2025 and 2024 was $75,000 and $26,000, respectively, which is reconciled to the corresponding GAAP measure at the bottom of the table.
As of December 31, 2024, the 25 largest depositors represented 27.6% of total deposits, which is an increase from December 31, 2023 when it was 22.4%. As of December 31, 2024 and 2023, the estimated amount of uninsured deposits was $435.7 million and $384.5 million, respectively.
As of December 31, 2025, the 25 largest depositors represented 28.5% of total deposits, which is an increase from December 31, 2024 when it was 27.6%. As of December 31, 2025 and 2024, the estimated amount of uninsured deposits was $476.2 million and $435.7 million, respectively.
The allowance for credit losses on the investment securities portfolio was comprised of $360,000 on available for sale securities and $89,000 on held to maturity securities as of December 31, 2024. This compares to $926,000 on available for sale securities and $37,000 on held to maturity securities as of December 31, 2023.
The allowance for credit losses on the investment securities portfolio was comprised of no reserve on available for sale securities and $90,000 on held to maturity securities as of December 31, 2025. This compares to $360,000 on available for sale securities and $89,000 on held to maturity securities as of December 31, 2024.
Additionally, the Asset Quality Task Force, which is a group comprised of senior level personnel, meets monthly to monitor the status of problem loans. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, ​ 2024 2023 ​ ​ (IN THOUSANDS, ​ ​ EXCEPT PERCENTAGES) Total accruing loan delinquency ​ $ 4,475 ​ $ 1,818 ​ Total non-accrual loans ​ 10,810 ​ 12,167 ​ Total non-performing loans (1) ​ 10,933 ​ 12,378 ​ Accruing loan delinquency, as a percentage of total loans, net of unearned income ​ 0.42 % 0.18 % Non-accrual loans, as a percentage of total loans, net of unearned income ​ 1.01 ​ 1.17 ​ Non-performing loans, as a percentage of total loans, net of unearned income (1) ​ 1.02 ​ 1.19 ​ Non-performing loans, as a percentage of total assets (1) ​ 0.77 ​ 0.89 ​ Total classified loans (loans rated substandard or doubtful) (2) ​ $ 23,552 ​ $ 24,996 ​ (1) Non-performing loans are comprised of loans that are on a non-accrual basis and loans that are contractually past due 90 days or more as to interest and principal payments.
Additionally, the Asset Quality Task Force, which is a group comprised of senior level personnel, meets monthly to monitor the status of problem loans. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ (IN THOUSANDS, ​ ​ EXCEPT PERCENTAGES) Total accruing loan delinquency ​ $ 2,329 ​ $ 4,475 ​ Total non-accrual loans ​ 8,292 ​ 10,810 ​ Total non-performing loans (1) ​ 8,302 ​ 10,933 ​ Accruing loan delinquency, as a percentage of total loans, net of unearned income ​ 0.23 % 0.42 % Non-accrual loans, as a percentage of total loans, net of unearned income ​ 0.80 ​ 1.01 ​ Non-performing loans, as a percentage of total loans, net of unearned income (1) ​ 0.80 ​ 1.02 ​ Non-performing loans, as a percentage of total assets (1) ​ 0.57 ​ 0.77 ​ Total classified loans (loans rated substandard or doubtful) (2) ​ $ 11,305 ​ $ 23,552 ​ (1) Non-performing loans are comprised of loans that are on a non-accrual basis and loans that are contractually past due 90 days or more as to interest and principal payments.
The following table summarizes some of the Company’s key profitability performance indicators. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ YEAR ENDED DECEMBER 31, ​ 2024 2023 ​ ​ (IN THOUSANDS, EXCEPT ​ ​ PER SHARE DATA AND RATIOS) Net income (loss) ​ $ 3,601 ​ $ (3,346) ​ Diluted earnings per share ​ 0.21 ​ (0.20) ​ Return on average assets ​ 0.26 % (0.25) % Return on average equity ​ 3.46 ​ (3.23) ​ ​ The Company reported net income of $3,601,000, or $0.21 per diluted common share, for 2024.
The following table summarizes some of the Company’s key profitability performance indicators. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ YEAR ENDED DECEMBER 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ (IN THOUSANDS, EXCEPT ​ ​ PER SHARE DATA AND RATIOS) Net income ​ $ 5,612 ​ $ 3,601 ​ Diluted earnings per share ​ 0.34 ​ 0.21 ​ Return on average assets ​ 0.39 % 0.26 % Return on average equity ​ 5.03 ​ 3.46 ​ ​ The Company reported net income of $5,612,000, or $0.34 per diluted common share, for 2025.
The holding company had $6.8 million of cash, short-term investments, and investment securities at December 31, 2024, which represents a $1.4 million decrease from the holding company’s cash position since December 31, 2023. Dividend payments from our subsidiaries provided ongoing cash to the holding company.
The holding company had $5.4 million of cash, short-term investments, and investment securities at December 31, 2025, which represented a $1.4 million decrease from the holding company’s cash position since December 31, 2024. Dividend payments from our subsidiary provided ongoing cash to the holding company.
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 its customers and community during times of economic volatility. ​ Total interest expense increased by $5.6 million, or 22.6%, for the full year of 2024 when compared to last year.
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 its customers and community during times of economic volatility. ​ Total interest expense favorably decreased by $1.4 million, or 4.5%, for 2025 when compared to 2024.
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.
Total health care cost was $516,000, or 13.4%, lower and reflected management’s effective negotiations with the Company’s health care provider that resulted in not having to recognize any premium costs in January 2024.
It should be noted that this ratio increased from 375% at December 31, 2023 due to growth in non-owner occupied commercial real estate loan balances which more than offset the increase in total regulatory capital between years. Our focus is on preserving capital to support customer lending and allow the Company to take advantage of business opportunities as they arise.
It should be noted that this ratio decreased from 379% at December 31, 2024 due to contraction in non-owner occupied commercial real estate loan balances combined with an increase in total regulatory capital between years. Our focus is on preserving capital to support customer lending and allow the Company to take advantage of business opportunities as they arise.
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.
Overall, the Company continued to maintain solid coverage of both total loans and non-performing loans as the allowance for loan credit losses provided 158% coverage of non-performing loans and 1.27% of total loans at December 31, 2025.
Factors contributing to the lower non-interest expense in 2024 included: ● a $1.2 million, or 4.2%, decrease in salaries and employee benefits due to the net favorable impact of certain items within this broad category.
Non-interest expense for 2024 totaled $48.7 million and decreased by $628,000, or 1.3%, from 2023. Factors contributing to the lower non-interest expense in 2024 included: ● a $1.2 million, or 4.2%, decrease in salaries and employee benefits due to the net favorable impact of certain items within this broad category.
The Company believes this is a critical accounting policy since it involves significant estimates and judgments. ​ The following table sets forth the allowance for credit losses and certain ratios for the periods ended. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, ​ ​ ​ 2024 2023 ​ ​ (IN THOUSANDS, EXCEPT PERCENTAGES) Allowance for credit losses - loans ​ $ 13,912 ​ $ 15,053 ​ Allowance for credit losses - loans as a percentage of each of the following: ​ ​ ​ total loans, net of unearned income ​ 1.30 % 1.45 % total non-accrual loans ​ 128.70 ​ 123.72 ​ total non-performing loans ​ 127.25 ​ 121.61 ​ Allowance for credit losses - securities ​ $ 449 ​ $ 963 ​ Allowance for credit losses - unfunded loan commitments ​ ​ 966 ​ 940 ​ ​ 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 Company believes this is a critical accounting policy since it involves significant estimates and judgments. ​ The following table sets forth the allowance for credit losses and certain ratios for the periods ended. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ (IN THOUSANDS, EXCEPT PERCENTAGES) Allowance for credit losses - loans ​ $ 13,128 ​ $ 13,912 ​ Allowance for credit losses - loans as a percentage of each of the following: ​ ​ ​ ​ ​ total loans, net of unearned income ​ 1.27 % 1.30 % total non-accrual loans ​ 158.32 ​ 128.70 ​ total non-performing loans ​ 158.13 ​ 127.25 ​ Allowance for credit losses - securities ​ $ 90 ​ $ 449 ​ Allowance for credit losses - unfunded loan commitments ​ ​ 337 ​ 966 ​ ​ For the full year of 2025, the Company recognized a $4.1 million provision for credit losses after recognizing an $884,000 provision in 2024, resulting in an unfavorable increase of $3.2 million.
The Company’s deferred tax asset was $1.4 million at December 31, 2024 compared to $2.7 million at December 31, 2023, resulting primarily from the change in the allowance for credit losses, the fair value of the available for sale investment securities portfolio, and the pension liability, which were partially offset by the net operating loss. 26 Table of Contents SEGMENT REPORTING.
The Company’s deferred tax liability was $1.6 million at December 31, 2025 compared to a deferred tax asset of $1.4 million at December 31, 2024, resulting 26 Table of Contents primarily from the change in the allowance for credit losses, the fair value of the available for sale investment securities portfolio, and the pension liability. SEGMENT REPORTING.
The Company’s common equity tier 1 capital ratio was 9.19%, the tier 1 capital ratio was 9.19%, and the total capital ratio was 12.70% at December 31, 2024. The Company’s tier 1 leverage ratio was 7.68% at December 31, 2024. We anticipate that we will maintain our strong capital ratios throughout 2025.
The Bank’s common equity tier 1 capital ratio was 11.70%, the tier 1 capital ratio was 11.70%, and the total capital ratio was 12.88% at December 31, 2025. The Bank’s tier 1 leverage ratio was 9.32% at December 31, 2025. We anticipate that we will maintain our strong capital ratios throughout 2026.
The Company’s core deposit base continued to demonstrate the strength and stability that it has for many years. Total deposits grew during 2024 by $42.6 million, or 3.7%, on an end of period basis since December 31, 2023, demonstrating customer loyalty and confidence in 19 Table of Contents the Bank.
Additionally, the Company’s core deposit base continues to demonstrate the strength and stability that it has for 19 Table of Contents many years due to customer loyalty and confidence in AmeriServ Financial Bank. Specifically, total deposits grew during 2025 by $47.1 million, or 3.9%, on an end of period basis since December 31, 2024.
Regarding the separate components of net interest income, the Company’s total interest income in 2024 increased by $5.6 million, or 9.3%, when compared to 2023.
Regarding the separate components of net interest income, the Company’s total interest income in 2025 increased by $4.8 million, or 7.3%, when compared to 2024.
The Company’s total consolidated assets of $1.422 billion at December 31, 2024 increased by $32.7 million, or 2.4%, from the $1.390 billion level at December 31, 2023.
The Company’s total consolidated assets of $1.454 billion at December 31, 2025 increased by $31.5 million, or 2.2%, from the $1.422 billion level at December 31, 2024.
It should be noted that approximately 50% of these uninsured deposits relate to public funds from municipalities, government entities, and school districts which by law are required to be collateralized with investment securities or FHLB letters of credit to protect these depositor funds. Total borrowings have decreased by $14.8 million, or 17.3%, since year-end 2023.
It should be noted that approximately 60% of these uninsured deposits relate to public funds from municipalities, government entities, and school districts which by law are required to be collateralized with investment securities or FHLB letters of credit to protect these depositor funds.
Overall, the cost of total interest bearing liabilities increased from 2.36% to 2.77% which resulted in total interest expense increasing by $5.6 million, or 22.6%, between years. COMPONENT CHANGES IN NET INTEREST INCOME: 2024 VERSUS 2023.
Overall, the cost of total interest bearing liabilities decreased from 2.77% to 2.53% which resulted in total interest expense decreasing by $1.4 million, or 4.5%, between years. COMPONENT CHANGES IN NET INTEREST INCOME: 2025 VERSUS 2024.
As of December 31, 2024, the Company had $66.5 million in the notional amount of interest rate swap assets outstanding, with a fair value of $4.7 million. Simultaneously, the Company had $66.5 million in the notional amount of interest rate swap liabilities outstanding, with a negative fair value of $4.7 million.
As of December 31, 2025, the Company had $60.8 million in the notional amount of interest rate swap assets outstanding, with a fair value of $2.6 million. Simultaneously, the Company had $60.8 million in the notional amount of interest rate swap liabilities outstanding, with a negative fair value of $2.6 million.
The capital rules also impose a 2.5% capital conservation buffer (CCB) on top of the three minimum risk-weighted asset ratios. Banking institutions that fail to meet the effective minimum ratios once the CCB is taken into account will be subject to constraints on capital distributions, including dividends and share repurchases, and certain discretionary executive compensation.
Banking institutions that fail to meet the effective minimum ratios once the CCB is taken into account will be subject to constraints on capital distributions, including dividends and share repurchases, and certain discretionary executive compensation.
Under the Basel III capital standards, the minimum capital ratios are: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MINIMUM CAPITAL RATIO ​ ​ MINIMUM ​ PLUS CAPITAL ​ CAPITAL RATIO CONSERVATION BUFFER Common equity tier 1 capital to risk-weighted assets ​ 4.5 % 7.0 % Tier 1 capital to risk-weighted assets 6.0 8.5 ​ Total capital to risk-weighted assets 8.0 10.5 ​ Tier 1 capital to total average consolidated assets 4.0 N/A ​ (1) Non-GAAP financial information, see “Reconciliation of Non-GAAP Financial Measures” later in this MD&A.
Under the Basel III capital standards, the minimum capital ratios are: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MINIMUM CAPITAL RATIO ​ ​ MINIMUM ​ PLUS CAPITAL ​ ​ ​ ​ CAPITAL RATIO ​ ​ ​ CONSERVATION BUFFER Common equity tier 1 capital to risk-weighted assets ​ 4.5 % 7.0 % Tier 1 capital to risk-weighted assets 6.0 8.5 ​ Total capital to risk-weighted assets 8.0 10.5 ​ Tier 1 capital to total average consolidated assets 4.0 N/A ​ ​ INTEREST RATE SENSITIVITY.
Capital was increased during 2024 by the Company’s $3.6 million of net income and the positive impact on accumulated other comprehensive loss from the recognition of the settlement charge in connection with the defined benefit pension plan and the revaluation of the pension obligation totaling $4.3 million, the increased market value of the available for sale investment securities portfolio totaling $398,000, and the fair value adjustment on the interest rate hedges totaling $217,000.
Capital was increased during 2025 by the Company’s $5.6 million of net income and the positive impact on accumulated other comprehensive loss from the revaluation of the pension obligation totaling $2.2 million, the increased market value of the available for sale investment securities portfolio totaling $5.5 million, and the fair value adjustment on the interest rate hedges totaling $41,000.
The fed funds rate is currently at a targeted range of 4.25% to 4.50% as the Federal Reserve took action during the third and fourth quarters of 2024 to ease monetary policy and decrease the rate a total of 100 basis points. The Company’s interest rate risk position is relatively neutral.
The fed funds rate is currently at a targeted range of 3.50% to 3.75% as the Federal Reserve took action during the third and fourth quarters of 2025 to ease monetary policy and decrease the target fed funds rate a total of 75-basis points.
Overall, the 2024 full year average balance of total interest earning assets increased over last year’s full year average by $31.8 million, or 2.5%, as there was an increased level of average total loans which was partially offset by decreased levels of short-term investments and bank deposits and total investment securities.
Overall, the 2025 full year average balance of total interest earning assets increased over last year’s full year average by $42.8 million, or 3.3%, as there were increased levels of average total loans, short-term investments and bank deposits, and total investment securities.
In addition, the Company’s equity to assets ratio was 7.54% and its tangible common equity to tangible assets ratio was 6.64% (1) at December 31, 2024. (1) Non-GAAP financial information, see “Reconciliation of Non-GAAP Financial Measures” later in this MD&A. ​ 27 Table of Contents LIQUIDITY. The Company’s liquidity position continues to be strong.
In addition, the Company’s equity to assets ratio was 8.21% and its tangible common equity to tangible assets ratio (1) was 7.34% at December 31, 2025. (1) Non-GAAP financial information, see “Reconciliation of Non-GAAP Financial Measures” later in this MD&A. ​ LIQUIDITY.
The following table sets forth the calculation of the Company’s tangible common equity ratio and tangible book value per share at December 31, 2024 and 2023 (in thousands, except share and ratio data): ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, ​ ​ 2024 ​ 2023 ​ Total shareholders’ equity $ 107,248 $ 102,277 Less: Intangible assets 13,688 13,712 Tangible common equity 93,560 88,565 Total assets 1,422,362 1,389,638 Less: Intangible assets 13,688 13,712 Tangible assets 1,408,674 ​ 1,375,926 ​ Tangible common equity ratio (non-GAAP) 6.64 % 6.44 % Total shares outstanding 16,519,267 ​ 17,147,270 ​ Tangible book value per share (non-GAAP) $ 5.66 ​ $ 5.16 ​ ​ CRITICAL ACCOUNTING POLICIES AND ESTIMATES.
The following table sets forth the calculation of the Company’s tangible common equity ratio and tangible book value per share at December 31, 2025 and 2024 (in thousands, except share and ratio data): ​ ​ ​ ​ ​ ​ ​ ​ AT DECEMBER 31, ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ Total shareholders’ equity $ 119,312 ​ $ 107,248 ​ Less: Intangible assets 13,667 ​ 13,688 ​ Tangible common equity 105,645 ​ 93,560 ​ Total assets 1,453,813 ​ 1,422,362 ​ Less: Intangible assets 13,667 ​ 13,688 ​ Tangible assets 1,440,146 ​ 1,408,674 ​ Tangible common equity ratio (non-GAAP) 7.34 % 6.64 % Total shares outstanding 16,522,267 ​ 16,519,267 ​ Tangible book value per share (non-GAAP) $ 6.39 ​ $ 5.66 ​ ​ CRITICAL ACCOUNTING POLICIES AND ESTIMATES.
Total deposits, including non-interest bearing demand deposits, averaged $1.169 billion for the full year of 2024, which was $15.0 million, or 1.3%, higher than the $1.154 billion average for the full year of 2023. The 2024 full year average of short-term and FHLB borrowed funds was $79.6 million, which represented an increase of $21.6 million, or 37.3%.
Total deposits, including non-interest bearing demand deposits, averaged $1.236 billion for the full year of 2025, which was $67.3 million, or 5.8%, higher than the $1.169 billion average for the full year of 2024. The 2025 full year average of short-term and FHLB borrowed funds was $55.6 million, which represented a decrease of $24.0 million, or 30.1%.
This compares to allowance coverage of non-performing loans of 122% and total loans of 1.45% as of December 31, 2023. 23 Table of Contents The following table sets forth changes specific to the allowance for loan credit losses and certain ratios for the periods ended. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ YEAR ENDED DECEMBER 31, ​ ​ 2024 ​ 2023 ​ ​ ​ (IN THOUSANDS, EXCEPT RATIOS AND PERCENTAGES) Loans and loans held for sale, net of unearned income: ​ ​ ​ Average for the year: ​ ​ ​ ​ ​ ​ ​ Commercial real estate (owner occupied) ​ $ 84,705 ​ $ 85,590 ​ Other commercial and industrial ​ ​ 147,358 ​ ​ 151,378 ​ Commercial real estate (non-owner occupied) - retail ​ ​ 172,347 ​ ​ 157,054 ​ Commercial real estate (non-owner occupied) - multi-family ​ ​ 119,860 ​ ​ 103,468 ​ Other commercial real estate (non-owner occupied) ​ ​ 235,125 ​ ​ 228,314 ​ Residential mortgages ​ ​ 178,582 ​ ​ 175,299 ​ Consumer ​ ​ 105,692 ​ ​ 101,350 ​ Total loans and loans held for sale, net of unearned income ​ ​ 1,037,734 ​ ​ 997,204 ​ At December 31, ​ 1,068,409 ​ 1,038,401 ​ As a percentage of average loans: ​ ​ ​ Net charge-offs (recoveries): ​ ​ ​ ​ ​ ​ Commercial real estate (owner occupied) ​ ​ (0.03) % ​ (0.03) % Other commercial and industrial ​ ​ 0.26 ​ ​ 0.32 ​ Commercial real estate (non-owner occupied) - retail ​ ​ — ​ ​ 1.29 ​ Commercial real estate (non-owner occupied) - multi-family ​ ​ — ​ ​ (0.01) ​ Other commercial real estate (non-owner occupied) ​ ​ 0.66 ​ ​ 0.35 ​ Residential mortgages ​ ​ (0.01) ​ ​ 0.02 ​ Consumer ​ ​ 0.12 ​ ​ 0.15 ​ Total loans and loans held for sale, net of unearned income ​ ​ 0.19 ​ ​ 0.35 ​ Provision for credit losses ​ 0.08 ​ 0.66 ​ Allowance, as a multiple of net charge-offs ​ 6.88x ​ 4.35x ​ ​ The following schedule sets forth the allocation of the allowance for loan credit losses among the various loan categories.
This compares to allowance coverage of non-performing loans of 127% and total loans of 1.30% as of December 31, 2024. 23 Table of Contents The following table sets forth changes specific to the allowance for loan credit losses and certain ratios for the periods ended. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ YEAR ENDED DECEMBER 31, ​ ​ 2025 ​ 2024 ​ ​ ​ (IN THOUSANDS, EXCEPT RATIOS AND PERCENTAGES) Loans and loans held for sale, net of unearned income: ​ ​ ​ ​ ​ Average for the year: ​ ​ ​ ​ ​ ​ ​ Commercial real estate (owner occupied) ​ $ 87,747 ​ $ 84,705 ​ Commercial and industrial ​ ​ 142,844 ​ ​ 147,358 ​ Commercial real estate (non-owner occupied) - retail ​ ​ 178,628 ​ ​ 172,347 ​ Commercial real estate (non-owner occupied) - multi-family ​ ​ 129,910 ​ ​ 119,860 ​ Other commercial real estate (non-owner occupied) ​ ​ 232,296 ​ ​ 235,125 ​ Residential mortgages ​ ​ 173,284 ​ ​ 178,582 ​ Consumer ​ ​ 110,340 ​ ​ 105,692 ​ Total loans and loans held for sale, net of unearned income ​ ​ 1,061,417 ​ ​ 1,037,734 ​ At December 31, ​ 1,032,968 ​ 1,068,409 ​ As a percentage of average loans: ​ ​ ​ ​ ​ Net charge-offs (recoveries): ​ ​ ​ ​ ​ ​ Commercial real estate (owner occupied) ​ ​ (0.03) % ​ (0.03) % Commercial and industrial ​ ​ 1.20 ​ ​ 0.26 ​ Commercial real estate (non-owner occupied) - retail ​ ​ — ​ ​ — ​ Commercial real estate (non-owner occupied) - multi-family ​ ​ — ​ ​ — ​ Other commercial real estate (non-owner occupied) ​ ​ 1.35 ​ ​ 0.66 ​ Residential mortgages ​ ​ — ​ ​ (0.01) ​ Consumer ​ ​ 0.07 ​ ​ 0.12 ​ Total loans and loans held for sale, net of unearned income ​ ​ 0.46 ​ ​ 0.19 ​ Provision for credit losses ​ 0.39 ​ 0.08 ​ Allowance, as a multiple of net charge-offs ​ 2.68x ​ 6.88x ​ ​ The following schedule sets forth the allocation of the allowance for loan credit losses among the various loan categories.
The Company monitors the trends in market value of portfolio equity sensitivity analysis on a quarterly basis. 30 Table of Contents The following table presents an analysis of the sensitivity inherent in the Company’s net interest income and market value of portfolio equity.
Additionally, the Company also uses market value sensitivity measures to further evaluate the balance sheet exposure to changes in interest rates. The Company monitors the trends in market value of portfolio equity sensitivity analysis on a quarterly basis. The following table presents an analysis of the sensitivity inherent in the Company’s net interest income and market value of portfolio equity.
The Company’s Board of Directors expects to continue the common stock dividend at its current level of $0.03 per quarter given the Company’s strong capital position and projected earnings power.
The Company’s Board of Directors expects to continue the common stock dividend at its current level of $0.03 per quarter given the Company’s strong capital position and projected earnings power. While the Company has frequently executed common stock buyback programs in the past, we presently do not have one in place.
There is a particular emphasis on ensuring that the subsidiary bank has appropriate levels of capital to support its non-owner occupied commercial real estate loan concentration, which stood at 379% of regulatory capital at December 31, 2024.
Capital generated from earnings will be utilized to pay the common stock cash dividend and will support controlled balance sheet growth. There is a particular emphasis on ensuring that the subsidiary bank has appropriate levels of capital to support its non-owner occupied commercial real estate loan concentration, which stood at 352% of regulatory capital at December 31, 2025.
Our strategic initiatives will focus on these four key constituencies: ● Shareholders — We strive to increase earnings per share; identifying and managing revenue growth and expense control; and managing risk. Our goal is to increase value for AmeriServ shareholders by growing earnings per share and narrowing the financial performance gap between AmeriServ and its peer banks.
Our strategic initiatives will focus on these four key constituencies: ● Shareholders — We strive to increase earnings per share; identifying and managing revenue growth and expense control; and managing risk.
Differences between the net interest spread and margin from a GAAP basis to a tax-equivalent basis were not material. 20 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ YEAR ENDED DECEMBER 31, ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ INTEREST ​ ​ ​ ​ ​ ​ INTEREST ​ ​ ​ ​ ​ AVERAGE ​ INCOME/ ​ YIELD/ ​ AVERAGE ​ INCOME/ ​ YIELD/ ​ ​ BALANCE EXPENSE RATE BALANCE EXPENSE RATE ​ ​ (IN THOUSANDS, EXCEPT PERCENTAGES) Interest earning assets: ​ ​ ​ ​ Loans and loans held for sale, net of unearned income ​ $ 1,037,734 ​ $ 56,785 5.47 % $ 997,204 ​ $ 51,643 5.18 % Short-term investments and bank deposits ​ 3,853 ​ 250 6.49 ​ 3,942 ​ 251 6.38 ​ Investment securities: ​ ​ ​ ​ ​ Available for sale ​ 188,072 ​ 7,209 3.83 ​ 201,077 ​ 7,059 3.51 ​ Held to maturity ​ 65,415 ​ 2,287 3.50 ​ 61,090 ​ 1,922 3.15 ​ Total investment securities ​ 253,487 ​ 9,496 3.75 ​ 262,167 ​ 8,981 3.43 ​ TOTAL INTEREST EARNING ASSETS/ INTEREST INCOME ​ 1,295,074 ​ 66,531 5.18 ​ 1,263,313 ​ 60,875 4.84 ​ Non-interest earning assets: ​ ​ ​ ​ ​ Cash and due from banks ​ 14,333 ​ ​ ​ ​ 15,446 ​ ​ ​ ​ Premises and equipment ​ 18,610 ​ ​ ​ ​ 17,270 ​ ​ ​ ​ Other assets ​ 84,041 ​ ​ ​ ​ 75,111 ​ ​ ​ ​ Allowance for credit losses ​ (15,310) ​ ​ ​ ​ (13,066) ​ ​ ​ ​ TOTAL ASSETS ​ $ 1,396,748 ​ ​ ​ ​ ​ ​ $ 1,358,074 ​ ​ ​ ​ ​ ​ Interest bearing liabilities: ​ ​ ​ ​ ​ ​ ​ Interest bearing deposits: ​ ​ ​ ​ ​ ​ ​ Interest bearing demand ​ $ 225,741 ​ $ 4,246 ​ 1.88 % $ 225,713 ​ $ 4,058 ​ 1.80 % Savings ​ 120,231 ​ 117 ​ 0.10 ​ 127,539 ​ 124 ​ 0.10 ​ Money market ​ 314,138 ​ 8,701 ​ 2.77 ​ 302,964 ​ 7,457 ​ 2.46 ​ Time deposits ​ 330,013 ​ 12,384 ​ 3.75 ​ 306,044 ​ 9,375 ​ 3.06 ​ Total interest bearing deposits ​ 990,123 ​ 25,448 ​ 2.57 ​ 962,260 ​ 21,014 ​ 2.18 ​ Short-term borrowings ​ 27,963 ​ 1,582 ​ 5.66 ​ 35,755 ​ 1,944 ​ 5.44 ​ Advances from Federal Home Loan Bank ​ 51,590 ​ 2,265 ​ 4.39 ​ 22,167 ​ 731 ​ 3.30 ​ Subordinated debt ​ 27,000 ​ 1,054 ​ 3.90 ​ 27,000 ​ 1,054 ​ 3.90 ​ Lease liabilities ​ 4,337 ​ 108 ​ 2.48 ​ 3,238 ​ 97 ​ 3.00 ​ TOTAL INTEREST BEARING LIABILITIES/INTEREST EXPENSE ​ 1,101,013 ​ 30,457 ​ 2.77 ​ 1,050,420 ​ 24,840 ​ 2.36 ​ Non-interest bearing liabilities: ​ ​ ​ ​ ​ ​ ​ Demand deposits ​ 178,686 ​ ​ ​ ​ ​ 191,580 ​ ​ ​ ​ ​ Other liabilities ​ 12,973 ​ ​ ​ ​ ​ 12,507 ​ ​ ​ ​ ​ Shareholders’ equity ​ 104,076 ​ ​ ​ ​ ​ 103,567 ​ ​ ​ ​ ​ TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY ​ $ 1,396,748 ​ ​ ​ ​ ​ ​ $ 1,358,074 ​ ​ ​ ​ ​ ​ Interest rate spread ​ ​ ​ ​ ​ 2.41 ​ ​ ​ ​ ​ 2.48 ​ Net interest income/net interest margin (non-GAAP) ​ ​ ​ 36,074 ​ 2.81 % ​ ​ 36,035 ​ 2.86 % Tax-equivalent adjustment ​ ​ ​ (26) ​ ​ ​ ​ ​ (15) ​ ​ ​ Net interest income (GAAP) ​ ​ ​ ​ $ 36,048 ​ ​ ​ ​ ​ $ 36,020 ​ ​ ​ ​ Net interest income may also be analyzed by segregating the volume and rate components of interest income and interest expense.
Differences between the net interest spread and margin from a GAAP basis to a tax-equivalent basis were not material. 20 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ YEAR ENDED DECEMBER 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ INTEREST ​ ​ ​ ​ ​ ​ INTEREST ​ ​ ​ ​ ​ AVERAGE ​ INCOME/ ​ YIELD/ ​ AVERAGE ​ INCOME/ ​ YIELD/ ​ ​ ​ ​ ​ BALANCE ​ ​ ​ EXPENSE ​ ​ ​ RATE ​ ​ ​ BALANCE ​ ​ ​ EXPENSE ​ ​ ​ RATE ​ ​ ​ ​ ​ (IN THOUSANDS, EXCEPT PERCENTAGES) Interest earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans and loans held for sale, net of unearned income ​ $ 1,061,417 ​ $ 60,210 5.62 % $ 1,037,734 ​ $ 56,785 5.47 % Short-term investments and bank deposits ​ 18,567 ​ 826 4.39 ​ 3,853 ​ 250 6.49 ​ Investment securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for sale ​ 187,033 ​ 7,632 4.08 ​ 188,072 ​ 7,209 3.83 ​ Held to maturity ​ 66,920 ​ 2,592 3.87 ​ 65,415 ​ 2,287 3.50 ​ Total investment securities ​ 253,953 ​ 10,224 4.03 ​ 253,487 ​ 9,496 3.75 ​ Trading securities ​ ​ 3,923 ​ ​ 169 ​ 4.28 ​ ​ — ​ ​ — ​ — ​ TOTAL INTEREST EARNING ASSETS/ INTEREST INCOME ​ 1,337,860 ​ 71,429 5.35 ​ 1,295,074 ​ 66,531 5.18 ​ Non-interest earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and due from banks ​ 15,305 ​ ​ ​ ​ 14,333 ​ ​ ​ ​ Premises and equipment ​ 17,672 ​ ​ ​ ​ 18,610 ​ ​ ​ ​ Other assets ​ 89,349 ​ ​ ​ ​ 84,041 ​ ​ ​ ​ Allowance for credit losses ​ (14,868) ​ ​ ​ ​ (15,310) ​ ​ ​ ​ TOTAL ASSETS ​ $ 1,445,318 ​ ​ ​ ​ ​ ​ $ 1,396,748 ​ ​ ​ ​ ​ ​ Interest bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest bearing deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest bearing demand ​ $ 249,972 ​ $ 4,382 ​ 1.75 % $ 225,741 ​ $ 4,246 ​ 1.88 % Savings ​ 121,945 ​ 119 ​ 0.10 ​ 120,231 ​ 117 ​ 0.10 ​ Money market ​ 324,166 ​ 7,656 ​ 2.36 ​ 314,138 ​ 8,701 ​ 2.77 ​ Time deposits ​ 365,700 ​ 13,314 ​ 3.64 ​ 330,013 ​ 12,384 ​ 3.75 ​ Total interest bearing deposits ​ 1,061,783 ​ 25,471 ​ 2.40 ​ 990,123 ​ 25,448 ​ 2.57 ​ Short-term borrowings ​ 5,555 ​ 266 ​ 4.79 ​ 27,963 ​ 1,582 ​ 5.66 ​ Advances from Federal Home Loan Bank ​ 50,017 ​ 2,200 ​ 4.40 ​ 51,590 ​ 2,265 ​ 4.39 ​ Subordinated debt ​ 27,000 ​ 1,054 ​ 3.90 ​ 27,000 ​ 1,054 ​ 3.90 ​ Lease liabilities ​ 4,092 ​ 100 ​ 2.45 ​ 4,337 ​ 108 ​ 2.48 ​ TOTAL INTEREST BEARING LIABILITIES/INTEREST EXPENSE ​ 1,148,447 ​ 29,091 ​ 2.53 ​ 1,101,013 ​ 30,457 ​ 2.77 ​ Non-interest bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Demand deposits ​ 174,295 ​ ​ ​ ​ ​ 178,686 ​ ​ ​ ​ ​ Other liabilities ​ 10,970 ​ ​ ​ ​ ​ 12,973 ​ ​ ​ ​ ​ Shareholders’ equity ​ 111,606 ​ ​ ​ ​ ​ 104,076 ​ ​ ​ ​ ​ TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY ​ $ 1,445,318 ​ ​ ​ ​ ​ ​ $ 1,396,748 ​ ​ ​ ​ ​ ​ Interest rate spread ​ ​ ​ ​ ​ 2.82 ​ ​ ​ ​ ​ 2.41 ​ Net interest income/net interest margin (non-GAAP) ​ ​ ​ 42,338 ​ 3.15 % ​ ​ 36,074 ​ 2.81 % Tax-equivalent adjustment ​ ​ ​ (75) ​ ​ ​ ​ ​ (26) ​ ​ ​ Net interest income (GAAP) ​ ​ ​ ​ $ 42,263 ​ ​ ​ ​ ​ $ 36,048 ​ ​ ​ ​ Net interest income may also be analyzed by segregating the volume and rate components of interest income and interest expense.
(2) Total classified loans include non-performing residential mortgage and consumer loans. 22 Table of Contents The increase in accruing loan delinquency since year-end 2023 was attributable to delinquency on a commercial loan relationship as well as an increase in residential mortgage and consumer loan delinquency.
(2) Total classified loans include non-performing residential mortgage and consumer loans. 22 Table of Contents The decrease in accruing loan delinquency since year-end 2024 was attributable to a lower level of delinquency within the commercial, commercial real estate, and consumer loan segments which was partially offset by a modest increase in residential mortgage loan delinquency.
Specifically, total loans averaged $1.038 billion in 2024 which was $40.5 million, or 4.1%, higher than the 2023 full year average. Short-term investments and bank deposits averaged $3.9 million in 2024 which was relatively unchanged from the 2023 full year average.
Specifically, total loans averaged $1.061 billion in 2025 which was $23.7 million, or 2.3%, higher than the 2024 full year average. Short-term investments and bank deposits averaged $18.6 million in 2025 which was $14.7 million higher than the 2024 full year average.
Cash and cash equivalents increased by $3.7 million from December 31, 2023 to $17.7 million at December 31, 2024 due to $24.1 million of net cash provided in financing activities and $2.7 million of net cash provided by operating activities more than offsetting $23.1 million of net cash used in investing activities.
Cash and cash equivalents increased by $33.1 million from December 31, 2024 to $50.9 million at December 31, 2025, due to $18.9 million of net cash provided by financing activities, $11.1 million of net cash provided by investing activities, and $3.2 million of net cash provided by operating activities.
The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.
The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.
Changes in net interest income that could not be specifically identified as either a rate or volume change were allocated proportionately to changes in volume and changes in rate. 21 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 vs. 2023 ​ 2023 vs. 2022 ​ ​ INCREASE (DECREASE) ​ INCREASE (DECREASE) ​ ​ DUE TO CHANGE IN: ​ DUE TO CHANGE IN: ​ ​ AVERAGE ​ ​ ​ ​ ​ ​ ​ AVERAGE ​ ​ ​ ​ ​ ​ ​ VOLUME RATE TOTAL VOLUME RATE TOTAL ​ ​ (IN THOUSANDS) INTEREST EARNED ON: ​ ​ ​ ​ ​ ​ Loans and loans held for sale, net of unearned income ​ $ 2,163 ​ $ 2,979 ​ $ 5,142 ​ $ 854 ​ $ 9,292 ​ $ 10,146 Short-term investments and bank deposits ​ (5) ​ 4 ​ (1) ​ (300) ​ 342 ​ 42 Investment securities: ​ ​ ​ ​ ​ ​ ​ ​ Available for sale ​ (472) ​ 622 ​ 150 ​ 489 ​ 960 ​ 1,449 Held to maturity ​ 142 ​ 223 ​ 365 ​ 47 ​ 120 ​ 167 Total investment securities ​ (330) ​ 845 ​ 515 ​ 536 ​ 1,080 ​ 1,616 Total interest income ​ 1,828 ​ 3,828 ​ 5,656 ​ 1,090 ​ 10,714 ​ 11,804 INTEREST PAID ON: ​ ​ ​ ​ ​ ​ Interest bearing demand deposits ​ 1 ​ 187 ​ 188 ​ (11) ​ 2,871 ​ 2,860 Savings deposits ​ (7) ​ — ​ (7) ​ (11) ​ — ​ (11) Money market deposits ​ 282 ​ 962 ​ 1,244 ​ 96 ​ 5,353 ​ 5,449 Time deposits ​ 776 ​ 2,233 ​ 3,009 ​ 235 ​ 6,057 ​ 6,292 Short-term borrowings ​ (438) ​ 76 ​ (362) ​ 1,399 ​ 181 ​ 1,580 Advances from Federal Home Loan Bank ​ 1,228 ​ 306 ​ 1,534 ​ (230) ​ 408 ​ 178 Lease liabilities ​ 30 ​ (19) ​ 11 ​ (6) ​ 3 ​ (3) Total interest expense ​ 1,872 ​ 3,745 ​ 5,617 ​ 1,472 ​ 14,873 ​ 16,345 Change in net interest income ​ $ (44) ​ $ 83 ​ $ 39 ​ $ (382) ​ $ (4,159) ​ $ (4,541) ​ LOAN QUALITY.
Changes in net interest income that could not be specifically identified as either a rate or volume change were allocated proportionately to changes in volume and changes in rate. 21 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 vs. 2024 ​ 2024 vs. 2023 ​ ​ INCREASE (DECREASE) ​ INCREASE (DECREASE) ​ ​ DUE TO CHANGE IN: ​ DUE TO CHANGE IN: ​ ​ AVERAGE ​ ​ ​ ​ ​ ​ ​ AVERAGE ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ VOLUME ​ ​ ​ RATE ​ ​ ​ TOTAL ​ ​ ​ VOLUME ​ ​ ​ RATE ​ ​ ​ TOTAL ​ ​ (IN THOUSANDS) INTEREST EARNED ON: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans and loans held for sale, net of unearned income ​ $ 1,556 ​ $ 1,869 ​ $ 3,425 ​ $ 2,163 ​ $ 2,979 ​ $ 5,142 Short-term investments and bank deposits ​ 680 ​ (104) ​ 576 ​ (5) ​ 4 ​ (1) Investment securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for sale ​ (40) ​ 463 ​ 423 ​ (472) ​ 622 ​ 150 Held to maturity ​ 55 ​ 250 ​ 305 ​ 142 ​ 223 ​ 365 Total investment securities ​ 15 ​ 713 ​ 728 ​ (330) ​ 845 ​ 515 Trading securities ​ ​ 169 ​ ​ — ​ ​ 169 ​ ​ — ​ ​ — ​ ​ — Total interest income ​ 2,420 ​ 2,478 ​ 4,898 ​ 1,828 ​ 3,828 ​ 5,656 INTEREST PAID ON: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest bearing demand deposits ​ 440 ​ (304) ​ 136 ​ 1 ​ 187 ​ 188 Savings deposits ​ 2 ​ — ​ 2 ​ (7) ​ — ​ (7) Money market deposits ​ 272 ​ (1,317) ​ (1,045) ​ 282 ​ 962 ​ 1,244 Time deposits ​ 1,303 ​ (373) ​ 930 ​ 776 ​ 2,233 ​ 3,009 Short-term borrowings ​ (1,104) ​ (212) ​ (1,316) ​ (438) ​ 76 ​ (362) Advances from Federal Home Loan Bank ​ (70) ​ 5 ​ (65) ​ 1,228 ​ 306 ​ 1,534 Lease liabilities ​ (7) ​ (1) ​ (8) ​ 30 ​ (19) ​ 11 Total interest expense ​ 836 ​ (2,202) ​ (1,366) ​ 1,872 ​ 3,745 ​ 5,617 Change in net interest income ​ $ 1,584 ​ $ 4,680 ​ $ 6,264 ​ $ (44) ​ $ 83 ​ $ 39 ​ LOAN QUALITY.
These favorable items resulted in total loan interest income improving by $5.1 million, or 9.9%, for the full year of 2024 when compared to last year. ​ Total investment securities averaged $253.5 million for the full year of 2024, which was $8.7 million, or 3.3%, lower than the $262.2 million average for the full year of 2023.
These favorable items resulted in 2025 total loan interest income improving by $3.4 million, or 6.0%, when compared to 2024. ​ Total investment securities, including the available for sale, held to maturity, and trading portfolios, averaged $257.9 million for 2025, which was $4.4 million, or 1.7%, higher than the $253.5 million average for 2024.
INCOME TAX EXPENSE. The Company recorded an income tax expense of $798,000, or an effective tax rate of 18.1%, in 2024 compared to an income tax benefit of $1.0 million in 2023. The income tax benefit in 2023 resulted from the Company’s recognition of a net loss.
INCOME TAX EXPENSE. The Company recorded income tax expense of $1.2 million, or an effective tax rate of 17.4%, in 2025 compared to income tax expense of $798,000, or an effective tax rate of 18.1%, in 2024. The lower effective tax rate in 2025 resulted from the additional tax-free income from BOLI.
The earnings improvement between years was driven by the favorable comparison in the provision for credit losses, improved total revenue, and lower non-interest expense.
This compared to a net loss of $3.3 million, or $0.20 per diluted common share, in 2023. The earnings improvement between years was driven by a favorable comparison in the provision for credit losses, improved total revenue, and lower non-interest expense.
Total loan interest income improved 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.
Total loan interest income improved in 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.
Within investing activities, cash advanced for new loans originated totaled $183.0 million and was $33.5 million higher than the $149.5 million of cash received from loan principal payments. Within financing activities, total short-term borrowings decreased by $26.3 million, total FHLB borrowings increased by $11.5 million while total deposits increased by $42.6 million.
Within investing activities, cash advanced for new loans originated totaled $146.0 million while cash received from loan principal payments was $176.5 million leading to a net decrease in loans of $30.5 million. Within financing activities, total short-term borrowings decreased by $14.6 million, total borrowings on advances from FHLB decreased by $11.4 million while total deposits increased by $47.1 million.
In addition, interest income was favorably impacted by an increase in the earning asset yield which improved by 34-basis points from 4.84% to 5.18%. Most categories within the earning asset base, particularly loans and investment securities, demonstrated an interest income increase between years.
In addition, interest income was favorably impacted by an increase in the earning asset yield which improved by 17-basis points to 5.35%. All of the categories within the earning asset base, particularly loans, demonstrated an interest income increase between years. Specifically, the average total loan portfolio yield increased by 15-basis points from 5.47% to 5.62% in 2025.
This change was related to increased levels of cash and cash equivalents, total loans, other real estate owned (OREO) and repossessed assets, and other assets, which were partially offset by a decrease in investment securities. Specifically, loans and loans held for sale increased by $30.0 million, or 2.9%, as new loan originations exceeded payoff activity.
This change was related primarily to higher levels of cash and cash equivalents and investment securities which were partially offset by reduced levels of loans and loans held for sale and other real estate owned (OREO) and repossessed assets.
The increase in the Company’s book value and tangible book value per share in 2024 reflects the 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 the activist shareholder.
The increase in the Company’s book value and tangible book value per share in 2025 reflected the 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.

… 134 more changes not shown on this page.

Other ASRV 10-K year-over-year comparisons