Executive Summary

Q1 2025 delivered modest year-over-year EPS growth ($0.12 vs $0.11) with stronger net interest income and margin expansion to 3.01% from 2.70% YoY, despite lower non-interest income; ROA/ROE were 0.54% and 7.12% respectively .
Positive operating leverage: net interest income up $1.18MM (+13.5% YoY) and total interest expense down $386k (-5.2% YoY), while non-interest expense fell $101k (-0.9% YoY) .
Balance sheet and capital improved: book value per share rose to $6.70 (+10.6% YoY), tangible book to $5.88 (+11.8% YoY); TCE ratio 6.85% and capital above “well-capitalized” thresholds .
Dividend maintained at $0.03 per share (c. 5.1% annualized yield off $2.35), reinforcing capital confidence; management expects continued NIM improvement through 2025 .
Strategic highlight: new advisory agreement with SB Value Partners and extension of the Cooperation Agreement through 2029 to optimize trust/wealth AUM (~$2.5B) and free cash flow .

What Went Well and What Went Wrong

What Went Well

Net interest margin expanded 31 bps YoY and 13 bps sequential; net interest income rose 13.5% YoY as earning asset yields improved and deposit/borrowing costs declined with Fed easing in late 2024 .
Deposit franchise strength: average deposits +$58.2MM YoY (+5.0%); no brokered deposits; loan-to-deposit ratio averaged 87.4%, enabling continued loan support and growth capacity .
Capital and book value progression: BVPS $6.70 (+10.6% YoY), TBVPS $5.88 (+11.8% YoY), aided by AFS/DB plan mark-to-market improvements and accretive share repurchase in 2024 .

Management quote: “AmeriServ Financial achieved positive operating leverage… we believe that our balance sheet is well positioned for further quarterly net interest income growth and net interest margin improvement…” — Jeffrey A. Stopko, CEO .

What Went Wrong

Non-interest income fell $826k (-16.7% YoY), driven by lower wealth management fees (-$402k), other income (-$322k), and BOLI (-$73k); market volatility and lapping prior-year Visa bonus weighed .
Provision dynamics: net recovery of $97k was smaller than prior-year recovery ($557k), reflecting a $648k provision on an AFS corporate security with further credit deterioration (offset by $709k unfunded commitments recovery) .
Credit metrics mixed: non-performing assets rose to $15.0MM, including a $3.3MM CRE loan moved to non-accrual; NPLs 1.29% of total loans, though allowance coverage of NPLs at 101% and allowance 1.30% of loans remains solid .

Financial Results

Income Statement and Key Ratios (Quarterly)

Metric	Q3 2024	Q4 2024	Q1 2025
Total Interest Income ($USD Thousands)	16,708	17,063	17,022
Total Interest Expense ($USD Thousands)	7,821	7,524	7,091
Net Interest Income ($USD Thousands)	8,887	9,539	9,931
Provision for Credit Losses ($USD Thousands)	(51)	1,058	(97)
Total Non-Interest Income ($USD Thousands)	4,203	4,453	4,121
Total Non-Interest Expense ($USD Thousands)	11,721	11,858	11,763
Pretax Income ($USD Thousands)	1,420	1,076	2,386
Net Income ($USD Thousands)	1,183	889	1,908
Diluted EPS ($)	0.07	0.05	0.12
Net Interest Margin (%)	2.71%	2.88%	3.01%
Efficiency Ratio (%)	89.49%	84.71%	83.67%

Note: Management references “total revenue” as tax-equivalent net interest income plus total non-interest income; components shown above with citations .

Non-Interest Income Breakdown (Quarterly)

Component ($USD Thousands)	Q3 2024	Q4 2024	Q1 2025
Wealth Management Fees	3,050	2,943	2,864
Service Charges	304	298	275
Net Gains on Loans HFS	55	50	21
Mortgage-related Fees	30	23	7
BOLI	244	246	264
Other Income	520	893	690
Total Non-Interest Income	4,203	4,453	4,121

KPIs and Balance Sheet

KPI	Q3 2024	Q4 2024	Q1 2025
Total Assets ($USD Billions)	$1.405	$1.424	$1.432
Deposits ($USD Millions)	$1,189.3	$1,201.0	$1,216.8
Loans, Net ($USD Millions)	$1,040.4	$1,068.4	$1,062.3
Loan-to-Deposit Ratio (%)	88.7% avg.	89.1% avg.	87.4% avg.
Total Deposit Cost (%)	N/A	2.13%	2.04%
NPLs / Total Loans (%)	1.12% (loan portfolio)	1.18%	1.29%
Allowance Coverage of NPLs (%)	147%	127%	101%
Allowance / Total Loans (%)	1.39%	1.30%	1.30%
Book Value per Share ($)	$6.55	$6.57	$6.70
Tangible Book Value per Share ($)	$5.72	$5.75	$5.88
Tangible Common Equity (TCE) Ratio (%)	6.79%	6.73%	6.85%
Wealth Mgmt AUM – FMV ($USD Billions)	$2.604	$2.559	$2.487

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Margin	2025 Outlook	Qualitative: stabilization since Q3’24; improvement with Fed easing	Management expects continued margin improvement through 2025	Maintained positive outlook (qualitative)
Deposit Costs	Near-term	Declining trend since late 2024; avg 2.13% in Q4’24	Further declines expected with ongoing Fed reductions	Lower (qualitative)
Borrowing Strategy	Ongoing	Increase term FHLB advances to lock lower rates	Continued term advances strategy given curve inversion	Maintained
Dividend	Quarterly	$0.03/share declared 1/21/25	$0.03/share declared 4/22/25 (5.1% annualized off $2.35)	Maintained

Note: Company did not issue quantitative revenue/EPS/expense guidance ranges; all guidance is qualitative in nature .

Earnings Call Themes & Trends

Earnings call transcript for Q1 2025 was not available in the document set. Thematic evolution is based on management commentary across Q3’24, Q4’24, and Q1’25 press releases.

Topic	Previous Mentions (Q3’24 and Q4’24)	Current Period (Q1’25)	Trend
Interest Rate/Margin	Stabilization; NIM improved sequentially in Q4’24; Fed easing began Sept’24	NIM +31 bps YoY to 3.01%; management expects further improvement in 2025	Improving
Deposit Costs	Pace slowed and declined in Q4’24 to 2.13% avg	Avg total deposit cost down to 2.04%; further declines expected	Improving
Funding Strategy	More term FHLB advances; hedges executed to manage indexed deposit costs	Continued term advances strategy benefiting NII	Maintained
Wealth Management	Strong contribution; AUM up to $2.6B in 2024	AUM at $2.49B; fees down on market volatility; SB Value advisory agreement to optimize AUM	Mixed near term; strategic support
Credit Quality	Lower net charge-offs in FY’24; allowance strengthened in 4Q’23	NPA up to $15.0MM; one $3.3MM CRE to non-accrual; allowance coverage 101%	Stable coverage; watchlists elevated
Activist/Litigation Costs	Cooperation and Settlement Agreement in June 2024; lower professional fees by Q4’24	Professional fees -31.6% YoY; extended Cooperation Agreement with SBV through 2029	Improving cost base; strategic collaboration
Technology/IT Spend	Increased monitoring expenses in 2024	Data processing & IT +8.0% YoY, continued monitoring investments	Ongoing investment

Management Commentary

“AmeriServ Financial achieved positive operating leverage… our first quarter net interest margin increased by 31 basis points from the prior year quarter and 13 basis points on a sequential quarter basis… we believe that our balance sheet is well positioned for further… improvement” — Jeffrey A. Stopko, CEO .
“Our core deposit base continues to demonstrate… strength and stability… The Company does not utilize brokered deposits as a funding source… loan to deposit ratio averaged 87.4%” .
“Total borrowings interest expense decreased… strategy to increase term advances to lock in lower rates than overnight borrowings… has favorably impacted net interest income” .
“Total non-interest income… decreased… attributed to volatility and uncertainty… market conditions unfavorably impacted equity securities… wealth management fees declined” .
Strategic: “Signed a new advisory agreement with significant shareholder SB Value Partners, and mutually agreed to extend the Cooperation Agreement through 2029… to grow and optimize ~$2.4B AUM in trust and wealth management” .

Q&A Highlights

Earnings call transcript was not available; therefore, Q&A highlights and any guidance clarifications from a live call could not be assessed from primary documents [ListDocuments showed no transcript].

Estimates Context

Wall Street consensus (S&P Global) for Q1 2025 EPS and revenue was unavailable; we did not receive consensus values or estimate counts for ASRV. Values retrieved from S&P Global.*
Implication: With no published consensus, we cannot classify the quarter as a beat/miss versus Street. Traders should instead anchor on sequential NIM expansion, deposit cost declines, and operating leverage improvements .

Key Takeaways for Investors

Operating leverage inflection: Net interest margin expansion (3.01%) and lower deposit/borrowing costs drove stronger core profitability; watch for continued margin tailwinds as Fed policy eases through 2025 .
Deposit franchise resilience (no brokered funding) and loan-to-deposit ratio ~87% provide capacity to support loan growth without pressuring funding costs materially .
Credit watch: NPA rose to $15.0MM with a CRE non-accrual; allowance coverage remains adequate (101% of NPLs; 1.30% of loans). Maintain vigilance on CRE exposures and AFS security-specific reserves .
Wealth management cyclicality: Fees dipped on market volatility; SB Value advisory agreement and Cooperation Agreement extension could catalyze AUM growth and fee optimization medium-term .
Capital accretion: BVPS/TBVPS up double-digits YoY; dividend maintained at $0.03/share supports yield while preserving flexibility .
Expense discipline: Professional fees fell 31.6% YoY post-activist resolution; continue monitoring IT/data processing growth and healthcare cost normalization .
Near-term trading: Focus on NIM trajectory, deposit cost path, and any updates on the AFS security provision; medium-term thesis centers on margin normalization, fee diversification, and capital-supported shareholder returns .

Additional Source Documents Reviewed

Q1 2025 earnings press release and 8-K (Item 2.02) .
Q4 2024 earnings press release and 8-K (Item 2.02) .
Q3 2024 earnings press release and 8-K (Item 2.02) .
Advisory Agreement press release (April 16, 2025) .

* Values retrieved from S&P Global.

AMERISERV FINANCIAL INC /PA/ (ASRV)·Q1 2025 Earnings Summary