AMERISERV FINANCIAL REPORTS INCREASED EARNINGS FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF 2026 AND ANNOUNCES QUARTERLY COMMON STOCK CASH DIVIDEND

Rhea-AI Summary

AmeriServ Financial (NASDAQ: ASRV) reported second quarter 2026 net income of $2.74 million, or $0.16 per diluted share, versus a net loss of $0.28 million, or $(0.02) per share, in 2025. Six‑month 2026 net income was $4.53 million, or $0.27 per share, up 170% from $0.10 per share a year earlier.

Net interest income rose 9.1% for the quarter and 9.0% year‑to‑date, with net interest margin improving 24 basis points to 3.34% in Q2 2026. A $294,000 provision for credit losses recovery contrasted with a $3.1 million provision in Q2 2025, as asset quality and loss rates improved. Non‑interest income grew 11.5% in Q2 on higher wealth management fees and BOLI revenue, while non‑interest expense increased 9.3%, largely from higher professional fees and salaries. Book value per share rose 8.2% year‑over‑year to $7.26.

The board declared a $0.03 per share quarterly common stock cash dividend, payable August 17, 2026, to shareholders of record on August 3, 2026, implying a 3.1% annualized yield and a 22.2% payout ratio based on 2026 year‑to‑date earnings.

Positive

• Q2 2026 net income $2.74M vs. $(0.28)M loss in Q2 2025
• Six‑month EPS $0.27, up 170% from $0.10 in 2025
• Net interest margin 3.34% in Q2 2026, +24 bps year over year
• Provision for credit losses recovery $294K vs. $3.1M provision in Q2 2025
• Non‑interest income +11.5% in Q2 2026 on higher wealth management fees
• Book value per share $7.26, up 8.2% year over year

Negative

• Total average loans down 4.4% in Q2 2026 vs. Q2 2025
• Total non‑interest expense +9.3% in Q2 2026 year over year
• Professional fees +57.6% in Q2 2026 on expanded consulting services
• Non‑interest expense +7.2% for six months 2026 vs. 2025

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JOHNSTOWN, Pa., July 21, 2026 /PRNewswire/ -- AmeriServ Financial, Inc. (NASDAQ: ASRV) reported second quarter 2026 net income of $2,738,000, or $0.16 per diluted common share. This compares to a net loss for the second quarter of 2025 of $282,000, or $0.02 per diluted common share. For the six-month period ended June 30, 2026, the Company reported net income of $4,532,000, or $0.27 per diluted common share. This represented a 170.0% increase in earnings per share from the six-month period of 2025 when net income totaled $1,626,000, or $0.10 per diluted common share. The following table details the Company's financial performance for the three- and six-month periods ended June 30, 2026 and 2025:

		Second Quarter 2026			Second Quarter 2025			Six Months Ended June 30, 2026			Six Months Ended June 30, 2025
Net income (loss)		$	2,738,000		$	(282,000)		$	4,532,000		$	1,626,000
Diluted earnings per share		$	0.16		$	(0.02)		$	0.27		$	0.10

Jeffrey A. Stopko, President and Chief Executive Officer, commented on the second quarter 2026 financial results: "AmeriServ Financial achieved record quarterly earnings in the second quarter of 2026 due to growth in total revenue and favorable asset quality trends. The increase in total revenue was caused by meaningful improvement in our net interest income for both the second quarter and first six months of 2026 because of effective balance sheet management. Specifically, our net interest margin increased by 24-basis points in the first six months of 2026 leading to a $1.8 million increase in net interest income, which is important since it represents approximately 72% of our total revenue. Improved wealth management fees also contributed to growth in non-interest revenue. Our Company is well positioned for organic growth in the second half of 2026 as we have strong liquidity and solid capital. We will continue to diligently focus on both revenue growth and expense control to further improve the Company's operating efficiency."

All second quarter and six months 2026 financial performance metrics within this document are compared to the second quarter and six months of 2025 unless otherwise noted.

Net interest income in the second quarter of 2026 increased by $942,000, or 9.1%, from the prior year's second quarter and, for the first six months of 2026, increased by $1.8 million, or 9.0%, when compared to the first six months of 2025.  The Company's net interest margin of 3.34% for the second quarter of 2026 and 3.30% for the six months of 2026 represents a 24-basis point improvement for both the quarter and six-month periods.  Along with the sharply improved net interest margin performance, the increase also reflects controlled balance sheet growth, as both total earning assets and total deposits are at higher average levels due to effective balance sheet management. This, combined with effective pricing strategies, resulted in both the total earning asset yield and cost of interest-bearing funds improving between years.  The Federal Reserve's action to lower short-term interest rates during the latter portion of 2025 favorably impacted total interest-bearing deposits and borrowings costs.  Also, the U.S. Treasury yield curve demonstrating a more traditional steeper upward slope favorably impacted earning asset yields. Management believes the net interest margin will continue to improve through the second half of 2026.  Earnings performance in 2026 was also favorably impacted by a lower provision for credit losses reflecting improvement in the bank's asset quality.  An increase in non-interest expense for both 2026 time periods was partially offset by improved non-interest income for the same time frames. Overall, the improvement in the Company's financial performance was caused by increased total revenue and a lower provision for credit losses which more than offset higher non-interest expense resulting in earnings through six months of 2026 exceeding earnings through six months of 2025 by $2.9 million, or 179%. 

Total investment securities averaged $295.2 million for the second quarter of 2026, which was $38.7 million, or 15.1%, higher than the $256.4 million average for the second quarter of 2025.  Additionally, overnight short-term investments were higher by $21.1 million in the second quarter of 2026.  Similar trends were noted for the six-month period. These increases reflect a higher level of loan prepayment activity as well as our liquidity position strengthening in the fourth quarter of 2025 and throughout the first half of 2026 due to deposit growth.  Therefore, more funds were available to invest in the securities portfolio during a time when security yields improved, making purchases more attractive. As a result, the securities portfolio grew by $42.2 million, or 17.0%, since December 31, 2025.  New investment security purchases were also necessary to replace cash flow from maturing securities to maintain appropriate balances for pledging purposes related to public fund deposits. The higher balances and improved yields for new securities purchases caused interest income from investments to increase by $741,000, or 26.9%, for the second quarter and by $1.3 million, or 25.1%, for the first six months of 2026 compared to the same time periods last year.

Total average loans for the second quarter of 2026 declined from the second quarter of 2025 by $47.2 million, or 4.4%, due to increased loan payoff activity, particularly from the commercial real estate (CRE) portfolio, which exceeded loan originations.  A similar trend was noted for the six-month period as total average loans dropped $42.3 million, or 4.0%. However, total loans continue to be above the $1.0 billion threshold, averaging $1.022 billion for the second quarter of 2026.  Total loan interest income decreased by $331,000, or 2.2%, for the second quarter and by $433,000, or 1.5%, for the first six months of 2026 compared to the same time periods last year.  This decline reflects the lower average loan balance more than offsetting the benefits of a better interest rate environment in 2026, and a portion of CRE loans, that were booked during the COVID pandemic when interest rates were low, repricing upward during the first half of 2026.  Overall, through six months of 2026, the average balance of total interest earning assets increased from last year's average by $13.7 million, or 1.0%, while total interest income increased by $890,000, or 2.6%, from the first half of 2025 due to the increased revenue contribution from the investment securities portfolio.

On the liability side of the balance sheet, total deposits averaged $1.27 billion for the second quarter of 2026 which was $29.8 million, or 2.4%, higher than the second quarter of 2025 average due to the Company's successful business development efforts.  Additionally, the Company's core deposit base continues to demonstrate the strength and stability that it has for many years due to customer loyalty and confidence in AmeriServ Financial Bank.  The Company does not utilize brokered deposits as a funding source.  The loan to deposit ratio averaged 80.5% in the second quarter of 2026, which indicates that the Company has ample capacity to continue to grow its loan portfolio and is well positioned to support our customers and our community during times of economic volatility.

Total interest expense decreased by $532,000, or 7.3%, for the second quarter of 2026 and decreased by $949,000, or 6.6%, for the six months when compared to both time periods of 2025.  Deposit interest expense declined by $549,000, or 4.4%, through the first six months of 2026 despite total average interest-bearing deposits growing by $39.6 million, or 3.8%, compared to the first six months of last year.  The decrease in deposit interest expense reflects management's effective deposit pricing strategies along with the benefit of the Federal Reserve easing monetary policy during the final four months of 2025.  This reduction in interest-bearing deposit costs contributed to the previously mentioned improvement in the net interest margin.  Overall, total deposit cost (including the benefit of non-interest-bearing demand deposits) averaged 1.92% for the second quarter of 2026, which is a 15-basis point improvement from the second quarter of 2025. 

Total borrowings interest expense decreased by $188,000, or 21.2%, for the second quarter of 2026 and declined by $400,000, or 21.6%, for the first six months when compared to both time periods of 2025.  The Company's utilization of overnight borrowed funds during the first six months of 2026 was lower than it was for the first half of 2025, resulting in the average decreasing by $4.4 million, or 88.5%, due to the higher level of total average deposits.  Also, management elected not to replace the majority of maturing Federal Home Loan Bank (FHLB) term advances during the full year of 2025 and did not replace any during the first half of 2026 because of the strength of the Company's liquidity position.  Therefore, the total average balance of advances from the FHLB during the first half of 2026 decreased by $13.0 million, or 24.5%, from the same period of last year. The decrease in borrowings interest expense also reflects the Federal Reserve's 2025 action to ease monetary policy by 75-basis points which had an immediate and favorable impact on the cost of overnight borrowed funds.

The Company recorded a $294,000 provision for credit losses recovery in the second quarter of 2026 after recording a $3.1 million provision for credit losses in the second quarter of 2025, resulting in a favorable shift of $3.4 million.  For the first six months of 2026, the Company recognized a $77,000 provision for credit losses recovery after recognizing a $3.0 million provision for credit losses in the first six months of 2025, resulting in a net favorable change of $3.1 million. The large provision for credit losses in the second quarter of 2025 was needed to resolve the Company's largest non-performing loan which also included a related $2.8 million loan charge-off.  The provision recovery in the second quarter of 2026 reflected a continuing favorable trend for historical loss rates along with a softening of reserve requirements due to the contraction in the size of the loan portfolio.    

Non-performing assets were relatively stable since December 31, 2025, decreasing by $138,000, or 1.6%, and totaling $8.4 million. Non-performing loans represented 0.76% of total loans on June 30, 2026.  The Company recognized net loan charge-offs of $230,000, or 0.05% of total average loans, in the first six months of 2026 compared to net loan charge-offs of $3.0 million, or 0.56% of total average loans, in the first six months of 2025.  Overall, the Company's allowance for loan credit losses provided 167% coverage of non-performing loans and represented 1.27% of total loans at June 30, 2026.   

Total non-interest income in the second quarter of 2026 increased by $471,000, or 11.5%, from the prior year's second quarter and increased by $317,000, or 3.9%, in the first half of 2026 when compared to the first half of 2025.  The increase in both time periods was due to higher levels of wealth management fees and bank owned life insurance (BOLI) revenue.  Wealth management fees increased by $312,000, or 11.2%, for the second quarter and by $308,000, or 5.5%, for the six months due to market appreciation of customer assets as the equity markets moved to record levels in the second quarter of 2026.  Overall, the fair market value of wealth management assets totaled $2.8 billion at June 30, 2026, and increased by $75 million, or 2.8%, since December 31, 2025.  BOLI revenue increased by $118,000 in the second quarter of 2026 and by $92,000 for the six-month period due to the receipt of a larger death claim in 2026.   

Total non-interest expense in the second quarter of 2026 increased by $1.1 million, or 9.3%, when compared to the second quarter of 2025 and increased by $1.7 million, or 7.2%, during the first half of 2026 when compared to the first half of 2025.  Professional fees increased by $520,000, or 57.6%, for the second quarter and by $1.0 million, or 63.0%, for the six months due to additional expenses related to expanded consulting services provided to the Company by SB Value Partners in accordance with the amended and restated consulting agreement. Salaries and employee benefits increased by $336,000, or 4.7%, for the second quarter and $338,000, or 2.4%, for the six months due primarily to annual salary increases. Other expenses increased by $126,000, or 10.6%, for the second quarter and $234,000, or 10.1%, for the six months due to the bank having to recognize additional workout expenses related to a loan relationship secured by an owner-occupied CRE property.

The Company recorded income tax expense of $1.1 million in the first half of 2026, or an effective tax rate of 19.3%, which compares to income tax expense of $408,000, or an effective tax rate of 20.1%, in the first half of 2025.

The Company had total assets of $1.46 billion, shareholders' equity of $123.1 million, a book value of $7.26 per common share and a tangible book value of $6.45(1) per common share on June 30, 2026.  Book value per common share increased by $0.55, or 8.2%, and tangible book value per common share also increased by $0.56, or 9.5%, over the past 12 months. The Company and Bank continued to maintain a strong capital position that exceeds the regulatory defined well-capitalized status as of June 30, 2026.

QUARTERLY COMMON STOCK DIVIDEND

The Company's Board of Directors declared a $0.03 per share quarterly common stock cash dividend. The cash dividend is payable August 17, 2026, to shareholders of record on August 3, 2026. This cash dividend represents a 3.1% annualized yield using the July 17, 2026, closing stock price of $3.90 and a 22.2% payout ratio based upon 2026 year to date earnings.

Forward-Looking Statements

This press release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology, market conditions, dividend program, and future payment obligations. These statements may be identified by such forward-looking terminology as "continuing," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy," or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in the financial markets, the level of inflation, and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; competition levels; loan and investment prepayments differing from our assumptions; insufficient allowance for credit losses; a higher level of loan charge-offs and delinquencies than anticipated; material adverse changes in our operations or earnings; a decline in the economy in our market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; a decrease in loan origination volume or an inability to close loans currently in the pipeline; changes in laws and regulations; adoption, interpretation and implementation of accounting pronouncements; operational risks, including the risk of fraud by employees, customers or outsiders; unanticipated effects to our banking platform, including risks and unanticipated costs related to a core system migration; developments in technology, such as artificial intelligence, and our ability to incorporate innovative technologies in our business and provide products and services that satisfy our customers' expectations for convenience and security; and the inability to successfully implement or expand new lines of business or new products and services.  These forward-looking statements involve risks and uncertainties that could cause AmeriServ's results to differ materially from management's current expectations. Such risks and uncertainties are detailed in AmeriServ's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025. Forward-looking statements are based on the beliefs and assumptions of AmeriServ's management and on currently available information. The statements in this press release are made as of the date of this press release, even if subsequently made available by AmeriServ on its website or otherwise. AmeriServ undertakes no responsibility to publicly update or revise any forward-looking statement.

(1)

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

 

AMERISERV FINANCIAL, INC.
NASDAQ: ASRV
SUPPLEMENTAL FINANCIAL PERFORMANCE DATA
June 30, 2026
(Dollars in thousands, except per share and ratio data)
(Unaudited)
2026
									1QTR				2QTR				YEAR TO DATE
PERFORMANCE DATA FOR THE PERIOD:
Net income (loss)									$	1,794			$	2,738			$	4,532
PERFORMANCE PERCENTAGES (annualized):
Return on average assets										0.50	%			0.75	%			0.63	%
Return on average equity										6.03				9.12				7.58
Return on average tangible common equity (1)										6.80				10.29				8.55
Net interest margin										3.26				3.34				3.30
Net charge-offs as a percentage of average loans										0.08				0.01				0.05
Efficiency ratio (3)										83.26				80.22				81.68
EARNINGS PER COMMON SHARE:
Basic									$	0.11			$	0.16			$	0.27
Average number of common shares outstanding										16,927				16,964				16,946
Diluted									$	0.11			$	0.16			$	0.27
Average number of common shares outstanding										16,928				16,966				16,947
Cash dividends paid per share									$	0.03			$	0.03			$	0.06

 

2025
										1QTR			2QTR				YEAR TO DATE
PERFORMANCE DATA FOR THE PERIOD:
Net income (loss)									$	1,908			$	(282)			$	1,626
PERFORMANCE PERCENTAGES (annualized):
Return on average assets										0.54	%			(0.08)	%			0.23	%
Return on average equity										7.12				(1.02)				2.99
Return on average tangible common equity (1)										8.14				(1.16)				3.41
Net interest margin										3.01				3.10				3.06
Net charge-offs as a percentage of average loans										0.02				1.09				0.56
Efficiency ratio (3)										83.67				80.73				82.18
EARNINGS PER COMMON SHARE:
Basic									$	0.12			$	(0.02)			$	0.10
Average number of common shares outstanding										16,519				16,519				16,519
Diluted									$	0.12			$	(0.02)			$	0.10
Average number of common shares outstanding										16,519				16,519				16,519
Cash dividends paid per share									$	0.03			$	0.03			$	0.06

 

AMERISERV FINANCIAL, INC.
NASDAQ: ASRV
--CONTINUED--
(Dollars in thousands, except per share, statistical, and ratio data)
(Unaudited)
2026
																				1QTR			2QTR
FINANCIAL CONDITION DATA AT PERIOD END:
Assets																				$	1,472,654		$	1,460,481
Short-term investments/overnight funds																					41,039			14,188
Investment securities, net of allowance for credit losses -      securities																					263,085			290,636
Trading securities																					7,164			8,588
Total loans and loans held for sale, net of unearned income																					1,031,482			1,014,112
Allowance for credit losses - loans																					13,206			12,896
Intangible assets																					13,662			13,658
Deposits																					1,269,950			1,259,665
Short-term and FHLB borrowings																					40,895			36,195
Subordinated debt, net																					26,778			26,788
Shareholders' equity																					120,703			123,084
Non-performing assets																					8,722			8,380
Tangible common equity ratio (1)																					7.34	%		7.56		%
Community bank leverage ratio – AmeriServ Financial Bank																					9.45			9.46
PER COMMON SHARE:
Book value																				$	7.12		$	7.26
Tangible book value (1)																					6.31			6.45
Market value (2)																					3.62			3.88
Wealth management assets – fair market value (4)																				$	2,613,708		$	2,756,776
STATISTICAL DATA AT PERIOD END:
Full-time equivalent employees																					299			297
Branch locations																					16			16
Common shares outstanding																					16,964,267			16,964,267

 

2025
												1QTR					2QTR			3QTR			4QTR
FINANCIAL CONDITION DATA AT PERIOD END:
Assets												$		1,431,524			$	1,448,733		$	1,461,494		$	1,453,813
Short-term investments/overnight funds														3,865				4,805			39,098			39,418
Investment securities, net of allowance for credit losses -      securities														231,454				237,320			236,740			248,484
Trading securities														0				4,205			4,462			7,253
Total loans and loans held for sale, net of unearned income														1,062,326				1,069,220			1,055,683			1,032,968
Allowance for credit losses - loans														13,812				14,060			14,408			13,128
Intangible assets														13,682				13,677			13,672			13,667
Deposits														1,216,838				1,244,533			1,258,588			1,248,128
Short-term and FHLB borrowings														63,121				51,611			48,023			44,615
Subordinated debt, net														26,736				26,747			26,757			26,767
Shareholders' equity														110,759				110,921			114,575			119,312
Non-performing assets														14,971				16,419			14,953			8,518
Tangible common equity ratio (1)														6.85		%		6.78	%		6.97	%		7.34		%
Community bank leverage ratio – AmeriServ Financial Bank														9.20				9.12			9.26			9.32
PER COMMON SHARE:
Book value												$		6.70			$	6.71		$	6.94		$	7.22
Tangible book value (1)														5.88				5.89			6.11			6.39
Market value (2)														2.43				3.04			2.90			3.19
Wealth management assets – fair market value (4)												$		2,486,920			$	2,583,839		$	2,661,214		$	2,681,678
STATISTICAL DATA AT PERIOD END:
Full-time equivalent employees														298				309			306			298
Branch locations														16				16			16			16
Common shares outstanding														16,519,267				16,519,267			16,519,267			16,522,267

NOTES:
(1)																					Non-GAAP Financial Information.  See "Reconciliation of Non-GAAP Financial Measures" at end of release.
(2)																					Based on closing price reported by the principal market on which the share is traded on the last business day of the corresponding reporting period.
(3)																					Ratio calculated by dividing total non-interest expense by tax equivalent net interest income plus total non-interest income.
(4)																					Not recognized on the consolidated balance sheets.

 

AMERISERV FINANCIAL, INC.
NASDAQ: ASRV
CONSOLIDATED STATEMENT OF INCOME
(Dollars in thousands)
(Unaudited)
2026
								1QTR			2QTR					YEAR TO DATE
INTEREST INCOME
Interest and fees on loans								$	14,406		$	14,601				$	29,007
Interest on investments									3,096			3,498					6,594
Total Interest Income									17,502			18,099					35,601
INTEREST EXPENSE
Deposits									5,919			6,064					11,983
All borrowings									755			699					1,454
Total Interest Expense									6,674			6,763					13,437
NET INTEREST INCOME									10,828			11,336					22,164
Provision (recovery) for credit losses									217			(294)					(77)
NET INTEREST INCOME AFTER PROVISION (RECOVERY)      FOR CREDIT LOSSES									10,611			11,630					22,241
NON-INTEREST INCOME
Wealth management fees									2,860			3,094					5,954
Service charges on deposit accounts									302			275					577
Mortgage banking revenue									50			59					109
(Loss) gain on trading securities									(63)			60					(3)
Bank owned life insurance									238			362					600
Other income									580			717					1,297
Total Non-Interest Income									3,967			4,567					8,534
NON-INTEREST EXPENSE
Salaries and employee benefits									7,225			7,412					14,637
Net occupancy expense									843			789					1,632
Equipment expense									408			435					843
Professional fees									1,165			1,423					2,588
Data processing and IT expense									1,267			1,230					2,497
FDIC deposit insurance expense									210			196					406
Other expense									1,240			1,313					2,553
Total Non-Interest Expense									12,358			12,798					25,156
PRETAX INCOME (LOSS)									2,220			3,399					5,619
Income tax expense (benefit)									426			661					1,087
NET INCOME (LOSS)								$	1,794		$	2,738				$	4,532

 

2025
								1QTR					2QTR					YEAR TO DATE
INTEREST INCOME
Interest and fees on loans								$	14,508				$	14,932				$	29,440
Interest on investments									2,514					2,757					5,271
Total Interest Income									17,022					17,689					34,711
INTEREST EXPENSE
Deposits									6,124					6,408					12,532
All borrowings									967					887					1,854
Total Interest Expense									7,091					7,295					14,386
NET INTEREST INCOME									9,931					10,394					20,325
Provision (recovery) for credit losses									(97)					3,133					3,036
NET INTEREST INCOME AFTER PROVISION (RECOVERY)      FOR CREDIT LOSSES									10,028					7,261					17,289
NON-INTEREST INCOME
Wealth management fees									2,864					2,782					5,646
Service charges on deposit accounts									306					301					607
Mortgage banking revenue									28					58					86
(Loss) gain on trading securities									0					35					35
Bank owned life insurance									264					244					508
Other income									659					676					1,335
Total Non-Interest Income									4,121					4,096					8,217
NON-INTEREST EXPENSE
Salaries and employee benefits									7,223					7,076					14,299
Net occupancy expense									841					746					1,587
Equipment expense									390					404					794
Professional fees									685					903					1,588
Data processing and IT expense									1,252					1,153					2,405
FDIC deposit insurance expense									240					240					480
Other expense									1,132					1,187					2,319
Total Non-Interest Expense									11,763					11,709					23,472
PRETAX INCOME (LOSS)									2,386					(352)					2,034
Income tax expense (benefit)									478					(70)					408
NET INCOME (LOSS)								$	1,908				$	(282)				$	1,626

 

AMERISERV FINANCIAL, INC.
NASDAQ: ASRV
AVERAGE BALANCE SHEET DATA
(Dollars in thousands)
(Unaudited)
	2026						2025
	2QTR			SIX MONTHS			2QTR			SIX MONTHS
Interest earning assets:
Loans and loans held for sale, net of unearned income	$	1,022,054		$	1,024,595		$	1,069,207		$	1,066,931
Short-term investments and bank deposits		31,469			30,165			10,349			11,085
Investment securities		295,151			283,422			256,436			251,587
Trading securities		8,128			7,687			5,040			2,534
Total interest earning assets		1,356,802			1,345,869			1,341,032			1,332,137
Non-interest earning assets:
Cash and due from banks		13,495			13,733			15,431			15,599
Premises and equipment		17,232			17,315			17,648			17,822
Other assets		93,806			94,350			88,637			88,860
Allowance for credit losses		(13,594)			(13,516)			(15,007)			(14,745)
Total assets	$	1,467,741		$	1,457,751		$	1,447,741		$	1,439,673
Interest bearing liabilities:
Interest bearing deposits:
Interest bearing demand	$	336,953		$	330,501		$	322,136		$	331,819
Savings		125,239			124,645			123,078			122,106
Money market		271,584			261,318			245,971			241,888
Other time		369,282			373,214			371,801			354,249
Total interest bearing deposits		1,103,058			1,089,678			1,062,986			1,050,062
Borrowings:
Short-term borrowings		306			577			3,604			5,005
Advances from Federal Home Loan Bank		37,146			39,907			50,899			52,891
Subordinated debt		27,000			27,000			27,000			27,000
Lease liabilities		3,778			3,823			4,137			4,172
Total interest bearing liabilities		1,171,288			1,160,985			1,148,626			1,139,130
Non-interest bearing liabilities:
Demand deposits		167,043			166,573			177,337			179,053
Other liabilities		9,048			9,675			10,839			11,661
Shareholders' equity		120,362			120,518			110,939			109,829
Total liabilities and shareholders' equity	$	1,467,741		$	1,457,751		$	1,447,741		$	1,439,673

 

AMERISERV FINANCIAL, INC.
NASDAQ: ASRV
CHANGES IN SHAREHOLDERS' EQUITY
(Dollars in thousands)
(Unaudited)
2026
		COMMON STOCK			TREASURY STOCK			SURPLUS			RETAINED EARNINGS			ACCUMULATED OTHER COMPREHENSIVE LOSS			TOTAL
Balance at December 31, 2025		$	270		$	(84,791)		$	147,070		$	64,112		$	(7,349)		$	119,312
Net income			0			0			0			1,794			0			1,794
Exercise of stock options and stock      option expense			0			0			27			0			0			27
Adjustment for defined benefit pension      plan			0			0			0			0			346			346
Adjustment for unrealized loss on      available for sale securities			0			0			0			0			(1,039)			(1,039)
Market value adjustment for interest rate      hedge			0			0			0			0			64			64
Common stock issued			2			0			705			0			0			707
Common stock cash dividend			0			0			0			(508)			0			(508)
Balance at March 31, 2026		$	272		$	(84,791)		$	147,802		$	65,398		$	(7,978)		$	120,703
Net income			0			0			0			2,738			0			2,738
Adjustment for unrealized gain on      available for sale securities			0			0			0			0			137			137
Market value adjustment for interest rate      hedge			0			0			0			0			16			16
Common stock cash dividend			0			0			0			(510)			0			(510)
Balance at June 30, 2026		$	272		$	(84,791)		$	147,802		$	67,626		$	(7,825)		$	123,084

 

2025
		COMMON STOCK			TREASURY STOCK			SURPLUS			RETAINED EARNINGS			ACCUMULATED OTHER COMPREHENSIVE LOSS			TOTAL
Balance at December 31, 2024		$	268		$	(84,791)		$	146,372		$	60,482		$	(15,083)		$	107,248
Net income			0			0			0			1,908			0			1,908
Adjustment for unrealized gain on      available for sale securities			0			0			0			0			2,124			2,124
Market value adjustment for interest rate      hedge			0			0			0			0			(25)			(25)
Common stock cash dividend			0			0			0			(496)			0			(496)
Balance at March 31, 2025		$	268		$	(84,791)		$	146,372		$	61,894		$	(12,984)		$	110,759
Net loss			0			0			0			(282)			0			(282)
Adjustment for unrealized gain on      available for sale securities			0			0			0			0			901			901
Market value adjustment for interest rate      hedge			0			0			0			0			38			38
Common stock cash dividend			0			0			0			(495)			0			(495)
Balance at June 30, 2025		$	268		$	(84,791)		$	146,372		$	61,117		$	(12,045)		$	110,921
Net income			0			0			0			2,544			0			2,544
Adjustment for unrealized gain on      available for sale securities			0			0			0			0			1,610			1,610
Market value adjustment for interest rate      hedge			0			0			0			0			(5)			(5)
Common stock cash dividend			0			0			0			(495)			0			(495)
Balance at September 30, 2025		$	268		$	(84,791)		$	146,372		$	63,166		$	(10,440)		$	114,575
Net income			0			0			0			1,442			0			1,442
Exercise of stock options and stock      option expense			0			0			9			0			0			9
Common stock issuable			2			0			689			0			0			691
Adjustment for defined benefit pension      plan			0			0			0			0			2,215			2,215
Adjustment for unrealized gain on      available for sale securities			0			0			0			0			843			843
Market value adjustment for interest rate      hedge			0			0			0			0			33			33
Common stock cash dividend			0			0			0			(496)			0			(496)
Balance at December 31, 2025		$	270		$	(84,791)		$	147,070		$	64,112		$	(7,349)		$	119,312

 

AMERISERV FINANCIAL, INC.

NASDAQ: ASRV

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

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

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

(Unaudited)

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

2026
								1QTR						2QTR				YEAR TO DATE
RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Net income (loss)								$	1,794					$		2,738		$	4,532
Average shareholders' equity									120,676							120,362			120,518
Less: Average intangible assets									13,664							13,659			13,662
Average tangible common equity									107,012							106,703			106,856
Return on average tangible common equity (annualized)									6.80	%						10.29	%		8.55	%

 

									1QTR									2QTR
TANGIBLE COMMON EQUITY
Total shareholders' equity								$	120,703							$		123,084
Less: Intangible assets									13,662									13,658
Tangible common equity									107,041									109,426
TANGIBLE ASSETS
Total assets									1,472,654									1,460,481
Less: Intangible assets									13,662									13,658
Tangible assets									1,458,992									1,446,823
Tangible common equity ratio									7.34			%						7.56		%
Total shares outstanding									16,964,267									16,964,267
Tangible book value per share								$	6.31							$		6.45

 

2025
								1QTR						2QTR				YEAR TO DATE
RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Net income (loss)								$	1,908					$		(282)		$	1,626
Average shareholders' equity									108,706							110,939			109,829
Less: Average intangible assets									13,684							13,679			13,682
Average tangible common equity									95,022							97,260			96,147
Return on average tangible common equity (annualized)									8.14	%						(1.16)	%		3.41	%

 

		1QTR			2QTR			3QTR							4QTR
TANGIBLE COMMON EQUITY
Total shareholders' equity		$	110,759		$	110,921		$	114,575					$	119,312
Less: Intangible assets			13,682			13,677			13,672						13,667
Tangible common equity			97,077			97,244			100,903						105,645
TANGIBLE ASSETS
Total assets			1,431,524			1,448,733			1,461,494						1,453,813
Less: Intangible assets			13,682			13,677			13,672						13,667
Tangible assets			1,417,842			1,435,056			1,447,822						1,440,146
Tangible common equity ratio			6.85	%		6.78	%		6.97			%			7.34	%
Total shares outstanding			16,519,267			16,519,267			16,519,267						16,522,267
Tangible book value per share		$	5.88		$	5.89		$	6.11					$	6.39

 

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SOURCE AmeriServ Financial, Inc.

FAQ

How did AmeriServ Financial (ASRV) perform in the second quarter of 2026?

AmeriServ Financial reported Q2 2026 net income of $2.74 million, or $0.16 per diluted share. According to the company, this compares to a net loss of $282,000, or $(0.02) per diluted share, in Q2 2025, reflecting substantially improved profitability.

What drove AmeriServ Financial’s earnings growth for the first six months of 2026 (ASRV)?

Earnings rose to $4.53 million, or $0.27 per diluted share, a 170% EPS increase year over year. According to AmeriServ Financial, key drivers were higher net interest income, a 24‑basis point net interest margin improvement, stronger non‑interest income, and a credit loss provision recovery.

How did net interest margin and net interest income change for ASRV in Q2 2026?

Net interest margin reached 3.34% in Q2 2026, improving 24 basis points from 2025. According to AmeriServ Financial, net interest income increased $942,000, or 9.1%, supported by effective balance sheet management, higher earning asset levels, and lower costs for interest‑bearing deposits and borrowings.

What were AmeriServ Financial’s asset quality and credit loss provisions in 2026?

AmeriServ recorded a $294,000 provision for credit losses recovery in Q2 2026 versus a $3.1 million provision in Q2 2025. According to the company, non‑performing loans were 0.76% of total loans, with the allowance covering 167% of non‑performing loans at June 30, 2026.

What dividend did AmeriServ Financial (ASRV) declare for the second quarter of 2026?

The board declared a quarterly cash dividend of $0.03 per common share. According to AmeriServ Financial, it is payable August 17, 2026, to shareholders of record on August 3, 2026, representing a 3.1% annualized yield and a 22.2% payout ratio year to date.

How are AmeriServ Financial’s capital and book value trending in 2026?

Book value per common share was $7.26 and tangible book value $6.45 at June 30, 2026. According to AmeriServ Financial, book value rose $0.55, or 8.2%, and tangible book value increased $0.56, or 9.5%, over the past 12 months, with capital above well‑capitalized levels.

What were the major expense trends for AmeriServ Financial (ASRV) in the first half of 2026?

Total non‑interest expense increased 7.2% year to date, including higher professional fees and salaries. According to AmeriServ Financial, professional fees rose $1.0 million, or 63.0%, and salaries and benefits increased $338,000, or 2.4%, mainly from expanded consulting services and annual pay increases.