Executive Summary

Q4 delivered sequential operating improvement: net interest margin expanded 17 bps q/q to 2.88%, net interest income rose 7.3% q/q to $9.54M, and efficiency ratio improved to 84.7% as expenses stayed contained despite a higher provision for credit losses .
Year-over-year comps rebounded sharply versus the Rite Aid-driven Q4’23: EPS of $0.05 vs $(0.31), non‑interest income +61% y/y (no securities losses and favorable swap marks), and provision of $1.06M vs $6.02M in Q4’23 .
Balance sheet momentum: end‑of‑period loans +$28.0M q/q to $1.068B and deposits +$11.7M q/q to $1.201B; loan‑to‑deposit ratio averaged 89.1% in Q4, supporting further asset growth without pressuring funding .
Management expects NIM to continue improving through 2025 as the curve normalizes and deposit costs decline; dividend maintained at $0.03 per share (payable Feb 18, 2025) given strong capital and improving earnings trajectory .
Wall Street consensus estimates were unavailable in this session via S&P Global; consequently, we do not present beats/misses versus consensus for Q4 2024 (S&P Global access limit reached).

What Went Well and What Went Wrong

What Went Well

Sequential NIM inflection: “fourth quarter net interest margin increased by 17 basis points” as Fed easing and curve normalization benefited the spread; management expects continued improvement in 2025 .
Diversified revenue resilience: non‑interest income rose 61% y/y in Q4; wealth management contributed, aided by favorable swap valuation adjustments and absence of 2023 securities repositioning losses .
Tangible capital accretion: TBV/share rose 11.4% in 2024 to $5.75, helped by AOCI improvements and accretive stock repurchase from the activist investor; book value/share ended Q4 at $6.57 .

What Went Wrong

Provision elevated in Q4: $1.06M, reflecting a $1.6M charge‑down on a CRE loan moved to non‑accrual and a $400K specific reserve on a new non‑accrual, plus growth‑related provisioning .
Credit metrics mixed: non‑performing assets increased $1.0M q/q to $13.7M (1.18% of loans), though coverage remained solid (allowance 127% of NPLs; 1.30% of total loans) .
Funding mix still a headwind y/y: deposit interest expense remained higher y/y and the decline in non‑interest‑bearing demand deposits pressured funding costs (albeit with Q4 cost relief as rates fell) .

Financial Results

Quarterly progression (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Diluted EPS ($)	$(0.02)	$0.07	$0.05
Net Income ($MM)	$(0.38)	$1.18	$0.89
Net Interest Income ($MM)	$8.88	$8.89	$9.54
Non‑Interest Income ($MM)	$4.37	$4.20	$4.45
Provision (Recovery) for Credit Losses ($MM)	$0.43	$(0.05)	$1.06
Pretax Income ($MM)	$(0.48)	$1.42	$1.08
Net Interest Margin (%)	2.74	2.71	2.88
Efficiency Ratio (%)	100.33	89.49	84.71

Year-over-year comparison (Q4 2023 → Q4 2024)

Metric	Q4 2023	Q4 2024
Diluted EPS ($)	$(0.31)	$0.05
Net Income ($MM)	$(5.32)	$0.89
Net Interest Income ($MM)	$8.59	$9.54
Non‑Interest Income ($MM)	$2.76	$4.45
Provision for Credit Losses ($MM)	$6.02	$1.06
Net Interest Margin (%)	2.63	2.88
Efficiency Ratio (%)	106.81	84.71

Balance sheet and KPIs (period-end unless noted; oldest → newest)

KPI	Q2 2024	Q3 2024	Q4 2024
Assets ($MM)	$1,403.44	$1,405.19	$1,423.73
Loans, net ($MM)	$1,039.26	$1,040.42	$1,068.41
Deposits ($MM)	$1,170.36	$1,189.33	$1,200.99
Loan-to-Deposit Ratio (avg, %)	88.5	88.7	89.1
Non-performing Assets ($MM)	$12.82	$12.66	$13.66
Book Value/Share ($)	$6.28	$6.55	$6.57
Tangible Book Value/Share ($, non‑GAAP)	$5.45	$5.72	$5.75
Wealth Mgmt Assets (fair value, $MM)	$2,580.40	$2,603.86	$2,559.16

Estimates vs. Actuals

Metric	Q4 2024 Consensus	Actual Q4 2024
EPS ($)	N/A (S&P Global consensus unavailable in this session)	$0.05
Revenue	N/A (S&P Global consensus unavailable in this session)	Not reported as a single line; see NII and non‑interest income above

Note: We attempted to retrieve S&P Global consensus but could not due to an access limit in this session; therefore, beat/miss analysis versus consensus is not presented.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Margin	2025	Expected to improve into 2025 (Q3 view)	“Will continue to improve through 2025,” reflecting easing policy and curve normalization	Maintained/improved confidence
Deposit Costs	2025	Improvement expected as Fed eases (Q3)	“Deposit costs will decline further as the Federal Reserve continues…to reduce interest rates”	Maintained
Common Dividend	Q1 2025 (payable 2/18/25)	$0.03 per share quarterly	$0.03 per share; payable Feb 18, 2025; record Feb 3, 2025	Maintained

No formal quantitative guidance was issued on revenue, expenses, credit costs, or tax rate.

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available; themes below reflect quarterly disclosures in earnings materials and press releases.

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
Net interest margin trajectory	NIM stabilized and improved vs Q4’23; expected to improve into 2025 (Q2/Q3)	NIM +17 bps q/q to 2.88%; management expects continued improvement through 2025	Positive inflection sustained
Deposit costs/mix	Cost pressures from competition and mix shift; improvement expected as Fed eases (Q2/Q3)	Q4 deposit cost fell 9 bps q/q; further declines expected in 2025	Easing headwind
Credit quality/CECL	Provision recovery in Q2/Q3; NPA modestly higher but covered	Q4 provision elevated on CRE charge‑down and new non‑accrual; NPA up to $13.7M; strong coverage	Mixed; watchlist-focused
Wealth management contribution	Strong growth; fees +9–14% y/y in 1H; diversified revenue	Full‑year non‑interest income 33% of revenue; fees +9.3% y/y	Structural positive
Funding/liquidity	Ample capacity; no brokered deposits; LDR ~88–89% (Q2/Q3)	LDR averaged 89.1% in Q4; deposits +3.7% y/y; no brokered deposits	Stable/constructive
Activism/legal costs	Settlement reached June; no further 2H costs expected (Q2)	Activist costs down y/y in Q4; FY’24 activist costs $1.5M vs $2.2M in FY’23	Improving expense drag

Management Commentary

“We concluded 2024 with positive momentum driven by our strongest quarterly loan and deposit growth during the fourth quarter… our fourth quarter net interest margin increased by 17 basis points on a sequential basis.” — Jeffrey A. Stopko, CEO .
“Because of this favorable change to national interest rates and the Company’s balance sheet positioning, management believes the net interest margin will continue to improve through 2025.” .
“Non‑interest income… improved… due to adjustments to the fair market value of… interest rate swap contracts… and strong performance from our Financial Services division.” .
“The Company does not utilize brokered deposits as a funding source… loan to deposit ratio averaged 89.1% in the fourth quarter of 2024.” .
“Tangible book value per share increased by 11.4% to $5.75 during the 2024 year,” aided by accretive share repurchase and favorable AOCI changes .

Q&A Highlights

No Q4 2024 earnings call transcript was available; therefore, no Q&A highlights or guidance clarifications can be provided for the quarter.

Estimates Context

S&P Global consensus EPS and revenue estimates for Q4 2024 were not available in this session due to an access limit; as a result, we cannot assess beats/misses versus consensus.
Given ASRV’s smaller market cap and coverage profile, consensus detail can be limited; management did not reference external consensus in the Q4 materials .

Key Takeaways for Investors

Sequential NIM expansion and a 7% q/q lift in net interest income confirm a turning point as deposit costs begin to fall and the curve normalizes; management guides to continued NIM improvement through 2025 .
Credit costs remain the primary volatility lever: Q4 provisioning rose on a specific CRE issue and loss‑rate impacts, with NPAs up modestly; coverage is solid at 127% of NPLs and 1.30% of loans, but watch list migration bears monitoring .
Revenue diversification is an asset: wealth management momentum and favorable swap valuation helped drive a 61% y/y increase in non‑interest income in Q4, cushioning spread pressure .
Balance sheet capacity to grow remains intact: deposits grew 3.7% y/y, no brokered funding, and LDR around 89% supports prudent loan growth without rate‑chasing .
Expense trajectory is improving: activism costs are down y/y and broader cost controls (salary/benefits, professional fees) aided operating leverage; efficiency ratio improved to 84.7% in Q4 .
Capital accretion continues: TBV/share rose to $5.75 (+11.4% y/y), and the $0.03 dividend was maintained, signaling confidence in earnings and capital resilience .
Near‑term stock drivers: confirmation of ongoing NIM gains, stable deposit trends, and contained credit losses (particularly in CRE) should be the catalysts investors watch from here .

Appendix: Other Relevant Q4 Press Releases

Completed merger of trust subsidiary into the bank (effective Oct 1, 2024) to realize efficiencies and better integrate wealth services under AmeriServ Wealth & Capital Management .
Rebranding of West Chester Capital Advisors to AmeriServ Wealth Advisors, aligning branding across the platform .

AMERISERV FINANCIAL INC /PA/ (ASRV)·Q4 2024 Earnings Summary