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

, /PRNewswire/ -- AmeriServ Financial, Inc. (NASDAQ: ASRV) reported fourth quarter 2024 net income of $889,000, or $0.05 per diluted common share. This compares to a net loss for the fourth quarter of 2023 of $5,321,000, or $0.31 per diluted common share. For the year ended December 31, 2024, the Company reported net income of $3,601,000, or $0.21 per diluted common share. This compares to a net loss of $3,346,000, or $0.20 per diluted common share, for the full year of 2023. The following table details the Company's financial performance for both the three- and twelve-month periods ended December 31, 2024 and 2023: FourthQuarter 2024 FourthQuarter 2023 Year Ended December 31, 2024 Year Ended December 31, 2023 Net income (loss) $ 889,000 $ (5,321,000) $ 3,601,000 $ (3,346,000) Diluted earnings per share $ 0.05 $ (0.31) $ 0.21 $ (0.20) Jeffrey A. Stopko, President and Chief Executive Officer, commented on the 2024 financial results: "We concluded 2024 with positive momentum driven by our strongest quarterly loan and deposit growth during the fourth quarter. Total loans grew by $30 million, or 2.9%, and deposits increased by $43 million, or 3.7%, for the full year of 2024. We also saw solid growth in net interest income as our fourth quarter net interest margin increased by 17 basis points on a sequential basis. We believe that our balance sheet is well positioned for further quarterly net interest income growth and net interest margin improvement in 2025. Our community banking business also continued to benefit from diversified revenue streams, with strong revenue and profit contribution from our wealth management business which caused total non-interest income to represent 33% of total revenue for 2024. Finally, because of the changing interest rate environment and effective capital management, our tangible book value per share increased by 11.4% to $5.75(1) during the 2024 year." All fourth quarter and full year 2024 financial performance metrics within this document are compared to the fourth quarter and full year 2023 unless otherwise noted. The Company's net interest income in the fourth quarter of 2024 increased by $950,000, or 11.1%, from the prior year's fourth quarter and, for the full year 2024, increased by $28,000, or 0.1%, when compared to the full year 2023. The Company's net interest margin of 2.88% for the fourth quarter 2024 and 2.81% for the full year 2024 represents a 25-basis point increase for the quarter but a 5-basis point decrease for the full year. The decrease for the full year reflects net interest margin compression which existed for most of 2024 due to inversion in the U.S. Treasury yield curve. However, after demonstrating relative stability through the first three quarters of 2024, the net interest margin percentage improved meaningfully since the third quarter of 2024 by 17-basis points. With the Federal Reserve's action to ease monetary policy beginning in September 2024 and continuing through the end of the year, the net interest margin improved as the U.S. Treasury yield curve became less inverted in the short end and began to exhibit a more normal shape in the mid to longer portion of the curve. Because of this favorable change to national interest rates and the Company's balance sheet positioning, management believes the net interest margin will continue to improve through 2025. Earnings performance was also favorably impacted by the Company benefitting from a significantly lower provision for credit losses in both the fourth quarter and full year 2024. Both total non-interest income and non-interest expense demonstrated improvement in both time periods compared to what was experienced in 2023. Overall, earnings improvement for the quarter and full year 2024 was driven by the favorable comparison in the provision for credit losses, improved total revenue and lower non-interest expense. Total average loans in the fourth quarter and full year 2024 are higher than the 2023 average by $36.3 million, or 3.6%, and $40.5 million, or 4.1%, respectively. In 2024, new loan originations exceeded payoff activity, resulting in total loans, on an end of period basis, demonstrating growth of $30.0 million, or 2.9%, since December 31, 2023. Loan originations were strongest in the fourth quarter of 2024 and more than doubled payoff activity. Overall, total loans averaged $1.058 billion for the fourth quarter of 2024. Total loan interest income improved in both time periods between years due to the higher national interest rate environment during 2024, the increased level of average total loans outstanding, and, also, a portion of CRE loans, that were booked at the onset of the COVID pandemic when interest rates were low, repriced upward during the fourth quarter of 2024. These favorable items resulted in total loan interest income improving by $1.1 million, or 8.0%, for the fourth quarter and by $5.1 million, or 9.9%, for the full year when compared to both time periods of last year. Total investment securities averaged $253.5 million for the full year 2024, which was $8.7 million, or 3.3%, lower than the $262.2 million average for the full year 2023. The decrease reflects management's strategy to allocate more cash flow from the securities portfolio to higher yielding loans while the Company controlled the amount of high cost overnight borrowed funds. Thus, new investment security purchases were primarily used to replace cash flow from maturing securities to maintain appropriate balances for pledging purposes related to public fund deposits. The improved yields for new securities purchases, along with management's execution of an investment portfolio repositioning strategy in late December 2023, caused interest income from investments to increase by $514,000, or 5.6%, for the full year 2024 compared to the full year 2023. Overall, the full year average balance of total interest earning assets increased from last year's full year average by $31.8 million, or 2.5%, while total interest income increased by $5.6 million, or 9.3%, from the full year 2023. On the liability side of the balance sheet, full year 2024 total average deposits were $15.0 million, or 1.3%, higher while total average deposits in the fourth quarter of 2024 were $28.3 million, or 2.4%, higher when compared to 2023. The increase reflects the Company's successful business development efforts, which more than offset a portion of the funds leaving the balance sheet from normal deposit run-off caused by greater pricing competition in the market to retain deposits because of the interest rate environment. The Company's core deposit base continued to demonstrate the strength and stability that it has for many years. On December 31, 2024, total deposits grew by $42.6 million, or 3.7%, since December 31, 2023, demonstrating customer loyalty and confidence in AmeriServ Financial Bank. The Company does not utilize brokered deposits as a funding source. The loan to deposit ratio averaged 89.1% in the fourth quarter of 2024, which indicates that the Company has ample capacity to continue to grow its loan portfolio and is well positioned to support our customers and our community during times of economic volatility. Total interest expense increased by $145,000, or 2.0%, for the fourth quarter of 2024, and by $5.6 million, or 22.6%, for the full year 2024 when compared to both time periods of last year. Deposit interest expense was higher by $192,000, or 3.1%, for the quarter and by $4.4 million, or 21.1%, for the full year as the average volume of total interest-bearing deposits grew by $31.8 million, or 3.3%, for the quarter and by $27.9 million, or 2.9%, for the year. The year over year increase in total interest expense was primarily due to the impact of the rising national interest rates experienced during 2023, which resulted in certain deposit products, particularly public funds, that are tied to a market index, repricing upward. Additionally, increased market competition resulted in the Company raising rates on certain shorter-term certificates of deposit to retain funds. Also, there was an unfavorable deposit mix shift as the 2024 average of non-interest-bearing demand deposits declined by $3.5 million, or 1.9%, for the quarter and by $12.9 million, or 6.7%, for the full year while, as mentioned above, total interest-bearing deposits increased. The pace of deposit cost increases slowed during the first three quarters of 2024 and then decreased during the fourth quarter as the Federal Reserve eased monetary policy during the final four months of 2024 by reducing short term interest rates by 100-basis points. This slowdown and reduction in deposit costs contributed to the previously mentioned stabilization and recent improvement in the net interest margin. Management believes that deposit costs will decline further as the Federal Reserve continues their expected-tempered approach to reduce interest rates. Total deposit cost averaged 2.13% in the fourth quarter of 2024, which is a 9-basis point improvement from the third quarter of 2024. Overall, though, for the full year 2024, total deposit costs were 2.18%, which is 36-basis points higher than total deposit cost of 1.82% for the full year 2023. Total borrowings interest expense decreased by $47,000, or 3.8%, in the fourth quarter of 2024 but was $1.2 million, or 30.9%, higher when compared to the full year 2023. The quarterly decrease reflects the Federal Reserve's recent action to ease monetary policy which had an immediate and favorable impact on the cost of overnight borrowed funds. The full year increase primarily results from the impact that the higher national interest rates had on total borrowings cost through the first nine months of 2024. The Company's utilization of overnight borrowed funds in 2024 was lower than the 2023 level in both time periods while the level of advances from the Federal Home Loan Bank increased. Advances from the Federal Home Loan Bank averaged $51.6 million for the full year 2024, which is $29.4 million, or 132.7%, higher than the $22.2 million average for the full year 2023. Management's strategy to increase term advances to lock in lower rates than overnight borrowings due to the inversion in the short end of the yield curve has favorably impacted net interest income. The Company recorded a $1.1 million provision for credit losses in the fourth quarter of 2024 after recording a provision of $6.0 million in the fourth quarter of 2023, resulting in a favorable change of $4.9 million. For the full year of 2024, the Company recognized an $884,000 provision for credit losses after recognizing a $7.4 million provision in 2023, resulting in a favorable change of $6.5 million. The provision for credit losses in the fourth quarter of 2024 reflects the unfavorable impact on loss rates used to calculate the allowance for loan credit losses in accordance with CECL and a $400,000 specific reserve established on a new non-accrual loan. The unfavorable impact on loss rates resulted from a $1.6 million charge-down of a $3.6 million commercial real estate (CRE) loan that was transferred to non-accrual status during the fourth quarter on which a specific reserve had already been established earlier this year. Also causing the higher provision expense was the strong level of loan growth experienced during the fourth quarter of 2024. The lower provision for credit losses for the full year 2024 reflects provision recoveries recognized in both the loan and securities portfolios in the first and third quarters. Additionally, the 2023 fourth quarter and full year provision was significantly higher due to the negative impact that the Rite Aid bankruptcy had on several commercial real estate properties. Non-performing assets increased since the third quarter of 2024 by $1.0 million and totaled $13.7 million. This increase occurred due to the previously mentioned transfer of a $2.0 million CRE loan and a $400,000 C&I loan into non-accrual status, which more than offset a $1.2 million C&I loan returning to accruing status and a $200,000 reduction in non-accrual residential mortgage loans. Non-performing assets from the loan portfolio represent 1.18% of total loans. The Company recognized net loan charge-offs of $2.0 million, or 0.19% of total average loans, in the full year 2024 compared to net loan charge-offs of $3.5 million, or 0.35% of total average loans, in the full year 2023. Overall, the Company continues to maintain solid coverage of both total loans and non-performing loans as the allowance for loan credit losses provided 127% coverage of non-performing loans and 1.30% of total loans at December 31, 2024. Total non-interest income in the fourth quarter of 2024 increased by $1.7 million, or 61.1%, from the prior year's fourth quarter and increased by $1.6 million, or 9.7%, for the full year of 2024 when compared to the full year 2023. The significant improvement in both time periods was partially due to the Company recognizing a $922,000 loss on an investment portfolio repositioning strategy that was executed during the fourth quarter of 2023. There were no investment security gains or losses recognized in 2024. Also, the variances for both time periods reflect the necessary adjustments to the fair market value of an interest rate swap related risk participation agreement as well as the credit valuation adjustment to the market value of the interest rate swap contracts that the Company executed to accommodate the needs of certain borrowers while managing our interest rate risk position. These adjustments reflect the changing national interest rates and improved by $678,000 during the fourth quarter of 2024 and by $866,000 for the full year 2024 compared to both time periods from last year. Wealth management fees improved by $49,000, or 1.7%, for the quarter and by $1.1 million, or 9.3%, for the full year due in part to a strong performance from our Financial Services division that resulted from new business growth. Also, the increase in wealth management fees reflects the improving market conditions particularly for equity securities as major market indexes continued their ascent to record highs in 2024. Overall, the fair market value of wealth management assets totaled $2.6 billion at December 31, 2024 and increased by $37.7 million, or 1.5%, since December 31, 2023. Finally, and favorably impacting other income for the full year of 2024 was the Company recognizing a $250,000 signing bonus that resulted from successful negotiations related to the renewal of an expiring contract with Visa. The favorable items for the full year were partially offset by the Company recognizing a $1.7 million gain in the first quarter of 2023 from AmeriServ Financial Bank selling all 7,859 shares of the Class B common stock of Visa Inc; there was no such gain during 2024. Total non-interest expense in the fourth quarter of 2024 decreased by $275,000, or 2.3%, when compared to the fourth quarter of 2023 and decreased by $628,000, or 1.3%, for the full year 2024 when compared to the full year 2023. Salaries and employee benefits expense decreased by $1.2 million, or 4.2%, for the full year 2024 due to the net favorable impact of certain items within this broad category. Total salaries cost was down by $847,000, or 4.0%, after the Company incurred additional salary expense in 2023 related to a strategy to consolidate certain executive level positions in the wealth management business. This benefit was successfully recognized in 2024 and was part of our previously announced earnings improvement program that was designed to lower employee costs. Also, total health care cost was $516,000, or 13.4%, lower compared to last year and reflects management's effective negotiations with our current health care provider that resulted in not having to recognize any premium costs in January 2024. These favorable items were partially offset by an increased level of incentive compensation by $294,000, or 25.1%, which corresponds to the strong performance of our wealth management division. Also, favorably impacting total non-interest expense for the full year was a lower level of professional fees by $533,000, or 10.0%. Other expenses were $488,000, or 10.3%, higher for the full year 2024 when compared to 2023. The Company was required to recognize a settlement charge in connection with its defined benefit pension plan during 2024. The amount of the 2024 charge was $471,000. A settlement charge must be recognized when the total dollar amount of lump sum distributions paid from the pension plan to retired employees exceeds a threshold of expected annual service and interest costs in the current year. It is important to note that since the retired employees have chosen to take the lump sum payments, these individuals are no longer included in the pension plan. Therefore, it is expected that the Company's normal annual pension expense will continue to be lower in the future. This was evident in 2023 and in 2024 as the Company has recognized a pension credit in both years. FDIC insurance increased by $306,000, or 42.8%, due to an increase in both the asset assessment base as well as the assessment rate. Data processing and IT expenses increased by $385,000, or 8.7%, for the full year of 2024 due to additional expenses related to monitoring our computing and network environment. Professional fees in both 2024 and 2023 were impacted by litigation and responses to the actions of an activist investor. The Company reached a Cooperation and Settlement Agreement with activist investor Driver Opportunity Partners (Driver), which was described in a Current Report on Form 8-K filed on June 14, 2024. The Company's activist related costs declined by approximately $137,000 when the fourth quarter of 2024 is compared to the fourth quarter of 2023. For the full year 2024, activist related costs totaled $1.5 million compared to $2.2 million recognized for the full year 2023. The Company recorded income tax expense of $187,000 in the fourth quarter of 2024 and income tax expense of $798,000, or an effective tax rate of 18.1%, for the full year 2024, which compares to an income tax credit of $1.5 million, in the fourth quarter 2023 and an income tax credit of $1.0 million, for the full year 2023. The Company had total assets of $1.4 billion, shareholders' equity of $108.6 million, a book value of $6.57 per common share and a tangible book value of $5.75(1) per common share on December 31, 2024. Book value per common share increased by $0.61, or 10.2%, and tangible book value per common share increased by $0.59, or 11.4%, since December 31, 2023, due to a favorable adjustment for both the unrealized loss on available for sale securities and the Company's defined benefit pension plan and the accretive repurchase of 628,003 shares of common stock from Driver. The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status as of December 31, 2024. QUARTERLY COMMON STOCK DIVIDEND The Company's Board of Directors declared a $0.03 per share quarterly common stock cash dividend. The cash dividend is payable February 18, 2025, to shareholders of record on February 3, 2025. This cash dividend represents a 4.35% annualized yield using the January 16, 2025 closing stock price of $2.76 and a 57% payout ratio based upon 2024 full year earnings. The Company's Board of Directors elected to continue the common dividend at its current level given the Company's strong capital position and earnings improvement in 2024. Forward-Looking Statements This press release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology, market conditions, dividend program, and future payment obligations. These statements may be identified by such forward-looking terminology as "continuing," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy," or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in the financial markets, the level of inflation, and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; competition levels; loan and investment prepayments differing from our assumptions; insufficient allowance for credit losses; a higher level of loan charge-offs and delinquencies than anticipated; material adverse changes in our operations or earnings; a decline in the economy in our market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; a decrease in loan origination volume or an inability to close loans currently in the pipeline; changes in laws and regulations; adoption, interpretation and implementation of accounting pronouncements; ability to successfully execute the Earnings Improvement Program and achieve the anticipated benefits in the amounts and at times estimated; operational risks, including the risk of fraud by employees, customers or outsiders; unanticipated effects to our banking platform; and the inability to successfully implement or expand new lines of business or new products and services. These forward-looking statements involve risks and uncertainties that could cause AmeriServ's results to differ materially from management's current expectations. Such risks and uncertainties are detailed in AmeriServ's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements are based on the beliefs and assumptions of AmeriServ's management and on currently available information. The statements in this press release are made as of the date of this press release, even if subsequently made available by AmeriServ on its website or otherwise. AmeriServ undertakes no responsibility to publicly update or revise any forward-looking statement. ____________________ (1) Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial Measures" at end of release. AMERISERV FINANCIAL, INC. NASDAQ: ASRV SUPPLEMENTAL FINANCIAL PERFORMANCE DATA December 31, 2024 (Dollars in thousands, except per share and ratio data) (Unaudited) 2024 1QTR 2QTR 3QTR 4QTR YEAR TO DATE PERFORMANCE DATA FOR THE PERIOD: Net income (loss) $ 1,904 $ (375) $ 1,183 $ 889 $ 3,601 PERFORMANCE PERCENTAGES (annualized): Return on average assets 0.55 % (0.11) % 0.34 % 0.25 % 0.26 % Return on average equity 7.51 (1.47) 4.51 3.30 3.46 Return on average tangible common equity (1) 8.67 (1.70) 5.19 3.78 3.98 Net interest margin 2.70 2.74 2.71 2.88 2.81 Net charge-offs (recoveries) as a percentage of average loans 0.05 0.08 0.06 0.58 0.19 Efficiency ratio (3) 86.60 100.33 89.49 84.71 90.18 EARNINGS PER COMMON SHARE: Basic $ 0.11 $ (0.02) $ 0.07 $ 0.05 $ 0.21 Average number of common shares outstanding 17,147 17,030 16,519 16,519 16,802 Diluted $ 0.11 $ (0.02) $ 0.07 $ 0.05 $ 0.21 Average number of common shares outstanding 17,147 17,030 16,519 16,519 16,802 Cash dividends paid per share $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.12 2023 1QTR 2QTR 3QTR 4QTR YEAR TO DATE PERFORMANCE DATA FOR THE PERIOD: Net income (loss) $ 1,515 $ (187) $ 647 $ (5,321) $ (3,346) PERFORMANCE PERCENTAGES (annualized): Return on average assets 0.45 % (0.06) % 0.19 % (1.53) % (0.25) % Return on average equity 5.85 (0.72) 2.49 (20.85) (3.23) Return on average tangible common equity (1) 6.73 (0.82) 2.88 (24.11) (3.72) Net interest margin 3.03 2.89 2.76 2.63 2.86 Net charge-offs (recoveries) as a percentage of average loans 0.05 (0.02) 0.05 1.27 0.35 Efficiency ratio (3) 79.58 101.55 92.60 106.81 94.17 EARNINGS PER COMMON SHARE: Basic $ 0.09 $ (0.01) $ 0.04 $ (0.31) $ (0.20) Average number of common shares outstanding 17,131 17,147 17,147 17,147 17,143 Diluted $ 0.09 $ (0.01) $ 0.04 $ (0.31) $ (0.20) Average number of common shares outstanding 17,155 17,147 17,147 17,147 17,144 Cash dividends paid per share $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.12 AMERISERV FINANCIAL, INC. NASDAQ: ASRV --CONTINUED-- (Dollars in thousands, except per share, statistical, and ratio data) (Unaudited) 2024 1QTR 2QTR 3QTR 4QTR FINANCIAL CONDITION DATA AT PERIOD END: Assets $ 1,384,516 $ 1,403,438 $ 1,405,187 $ 1,423,725 Short-term investments/overnight funds 3,353 2,925 4,877 3,855 Investment securities, net of allowance for credit losses - securities 230,419 230,425 230,042 220,239 Total loans and loans held for sale, net of unearned income 1,026,586 1,039,258 1,040,421 1,068,409 Allowance for credit losses - loans 14,639 14,611 14,420 13,912 Intangible assets 13,705 13,699 13,693 13,688 Deposits 1,176,578 1,170,359 1,189,330 1,200,995 Short-term and FHLB borrowings 60,858 85,495 66,312 70,700 Subordinated debt, net 26,695 26,706 26,716 26,726 Shareholders' equity 103,933 103,661 108,182 108,611 Non-performing assets 12,161 12,817 12,657 13,657 Tangible common equity ratio (1) 6.58 % 6.47 % 6.79 % 6.73 % Total capital (to risk weighted assets) ratio 13.10 12.77 12.87 12.70 PER COMMON SHARE: Book value $ 6.06 $ 6.28 $ 6.55 $ 6.57 Tangible book value (1) 5.26 5.45 5.72 5.75 Market value (2) 2.60 2.26 2.61 2.68 Wealth management assets – fair market value (4) $ 2,603,493 $ 2,580,402 $ 2,603,856 $ 2,559,155 STATISTICAL DATA AT PERIOD END: Full-time equivalent employees 304 310 302 302 Branch locations 16 16 16 16 Common shares outstanding 17,147,270 16,519,267 16,519,267 16,519,267 2023 1QTR 2QTR 3QTR 4QTR FINANCIAL CONDITION DATA AT PERIOD END: Assets $ 1,345,957 $ 1,345,721 $ 1,361,789 $ 1,389,638 Short-term investments/overnight funds 4,116 3,366 3,598 4,349 Investment securities, net of allowance for credit losses - securities 238,613 232,259 229,335 229,690 Total loans and loans held for sale, net of unearned income 980,877 988,221 1,002,306 1,038,401 Allowance for credit losses - loans 12,132 12,221 12,313 15,053 Intangible assets 13,731 13,724 13,718 13,712 Deposits 1,131,789 1,127,569 1,129,290 1,158,360 Short-term and FHLB borrowings 69,124 72,793 85,568 85,513 Subordinated debt, net 26,654 26,665 26,675 26,685 Shareholders' equity 105,899 103,565 101,326 102,277 Non-performing assets 4,599 5,650 5,939 12,393 Tangible common equity ratio (1) 6.92 % 6.74 % 6.50 % 6.44 % Total capital (to risk weighted assets) ratio 14.17 14.00 13.72 13.03 PER COMMON SHARE: Book value $ 6.18 $ 6.04 $ 5.91 $ 5.96 Tangible book value (1) 5.38 5.24 5.11 5.16 Market value (2) 3.05 2.54 2.65 3.24 Wealth management assets – fair market value (4) $ 2,354,498 $ 2,446,639 $ 2,385,590 $ 2,521,501 STATISTICAL DATA AT PERIOD END: Full-time equivalent employees 308 315 308 307 Branch locations 17 17 17 17 Common shares outstanding 17,147,270 17,147,270 17,147,270 17,147,270 NOTES: (1) Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial Measures" at end of release. (2) Based on closing price reported by the principal market on which the share is traded on the last business day of the corresponding reporting period. (3) Ratio calculated by dividing total non-interest expense by tax equivalent net interest income plus total non-interest income. (4) Not recognized on the consolidated balance sheets. AMERISERV FINANCIAL, INC. NASDAQ: ASRV CONSOLIDATED STATEMENT OF INCOME (Dollars in thousands) (Unaudited) 2024 1QTR 2QTR 3QTR 4QTR YEAR TO DATE INTEREST INCOME Interest and fees on loans $ 13,776 $ 14,003 $ 14,301 $ 14,679 $ 56,759 Interest on investments 2,448 2,507 2,407 2,384 9,746 Total Interest Income 16,224 16,510 16,708 17,063 66,505 INTEREST EXPENSE Deposits 6,199 6,389 6,515 6,345 25,448 All borrowings 1,278 1,246 1,306 1,179 5,009 Total Interest Expense 7,477 7,635 7,821 7,524 30,457 NET INTEREST INCOME 8,747 8,875 8,887 9,539 36,048 Provision (recovery) for credit losses (557) 434 (51) 1,058 884 NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES 9,304 8,441 8,938 8,481 35,164 NON-INTEREST INCOME Wealth management fees 3,266 3,059 3,050 2,943 12,318 Service charges on deposit accounts 293 293 304 298 1,188 Net realized gains on loans held for sale 10 59 55 50 174 Mortgage related fees 29 48 30 23 130 Net realized losses on investment securities 0 0 0 0 0 Gain on sale of Visa Class B shares 0 0 0 0 0 Bank owned life insurance 337 240 244 246 1,067 Other income 1,012 673 520 893 3,098 Total Non-Interest Income 4,947 4,372 4,203 4,453 17,975 NON-INTEREST EXPENSE Salaries and employee benefits 7,117 7,108 7,122 7,040 28,387 Net occupancy expense 791 730 706 741 2,968 Equipment expense 386 391 371 391 1,539 Professional fees 1,002 2,094 792 896 4,784 Data processing and IT expense 1,159 1,142 1,287 1,227 4,815 FDIC deposit insurance expense 255 250 255 261 1,021 Other expense 1,154 1,582 1,188 1,302 5,226 Total Non-Interest Expense 11,864 13,297 11,721 11,858 48,740 PRETAX INCOME (LOSS) 2,387 (484) 1,420 1,076 4,399 Income tax expense (benefit) 483 (109) 237 187 798 NET INCOME (LOSS) $ 1,904 $ (375) $ 1,183 $ 889 $ 3,601 2023 1QTR 2QTR 3QTR 4QTR YEAR TODATE INTEREST INCOME Interest and fees on loans $ 12,276 $ 12,609 $ 13,154 $ 13,589 $ 51,628 Interest on investments 2,298 2,270 2,285 2,379 9,232 Total Interest Income 14,574 14,879 15,439 15,968 60,860 INTEREST EXPENSE Deposits 4,189 5,019 5,653 6,153 21,014 All borrowings 863 750 987 1,226 3,826 Total Interest Expense 5,052 5,769 6,640 7,379 24,840 NET INTEREST INCOME 9,522 9,110 8,799 8,589 36,020 Provision (recovery) for credit losses 1,179 43 189 6,018 7,429 NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES 8,343 9,067 8,610 2,571 28,591 NON-INTEREST INCOME Wealth management fees 2,738 2,789 2,845 2,894 11,266 Service charges on deposit accounts 266 280 311 306 1,163 Net realized gains on loans held for sale 26 38 59 46 169 Mortgage related fees 33 34 41 23 131 Net realized losses on investment securities 0 0 0 (922) (922) Gain on sale of Visa Class B shares 1,748 0 0 0 1,748 Bank owned life insurance 239 242 321 245 1,047 Other income 457 479 679 172 1,787 Total Non-Interest Income 5,507 3,862 4,256 2,764 16,389 NON-INTEREST EXPENSE Salaries and employee benefits 7,175 7,728 7,358 7,367 29,628 Net occupancy expense 772 713 719 713 2,917 Equipment expense 415 422 376 410 1,623 Professional fees 1,308 1,907 1,146 956 5,317 Data processing and IT expense 1,078 1,080 1,139 1,133 4,430 FDIC deposit insurance expense 125 175 195 220 715 Other expense 1,090 1,152 1,162 1,334 4,738 Total Non-Interest Expense 11,963 13,177 12,095 12,133 49,368 PRETAX INCOME (LOSS) 1,887 (248) 771 (6,798) (4,388) Income tax expense (benefit) 372 (61) 124 (1,477) (1,042) NET INCOME (LOSS) $ 1,515 $ (187) $ 647 $ (5,321) $ (3,346) AMERISERV FINANCIAL, INC. NASDAQ: ASRV AVERAGE BALANCE SHEET DATA (Dollars in thousands) (Unaudited) 2024 2023 4QTR TWELVE MONTHS 4QTR TWELVE MONTHS Interest earning assets: Loans and loans held for sale, net of unearned income $ 1,058,273 $ 1,037,734 $ 1,021,950 $ 997,204 Short-term investments and bank deposits 3,908 3,853 4,470 3,942 Total investment securities 246,111 253,487 260,705 262,167 Total interest earning assets 1,308,292 1,295,074 1,287,125 1,263,313 Non-interest earning assets: Cash and due from banks 14,695 14,333 14,087 15,446 Premises and equipment 18,628 18,610 17,264 17,270 Other assets 87,137 84,041 75,366 75,111 Allowance for credit losses (15,026) (15,310) (13,398) (13,066) Total assets $ 1,413,726 $ 1,396,748 $ 1,380,444 $ 1,358,074 Interest bearing liabilities: Interest bearing deposits: Interest bearing demand $ 233,474 $ 225,741 $ 225,470 $ 225,713 Savings 119,342 120,231 121,373 127,539 Money market 319,415 314,138 310,609 302,964 Other time 337,073 330,013 320,033 306,044 Total interest bearing deposits 1,009,304 990,123 977,485 962,260 Borrowings: Federal funds purchased and other short-term borrowings 21,209 27,963 41,361 35,755 Advances from Federal Home Loan Bank 54,348 51,590 32,316 22,167 Subordinated debt 27,000 27,000 27,000 27,000 Lease liabilities 4,297 4,337 3,332 3,238 Total interest bearing liabilities 1,116,158 1,101,013 1,081,494 1,050,420 Non-interest bearing liabilities: Demand deposits 178,457 178,686 181,978 191,580 Other liabilities 11,896 12,973 15,685 12,507 Shareholders' equity 107,215 104,076 101,287 103,567 Total liabilities and shareholders' equity $ 1,413,726 $ 1,396,748 $ 1,380,444 $ 1,358,074 AMERISERV FINANCIAL, INC. NASDAQ: ASRV CHANGES IN SHAREHOLDERS' EQUITY (Dollars in thousands) (Unaudited) 2024 COMMON STOCK TREASURY STOCK SURPLUS RETAINED EARNINGS ACCUMULATEDOTHER COMPREHENSIVE(LOSS) INCOME TOTAL Balance at December 31, 2023 $ 268 $ (83,280) $ 146,364 $ 58,901 $ (19,976) $ 102,277 Net income 0 0 0 1,904 0 1,904 Exercise of stock options and stock option expense 0 0 8 0 0 8 Adjustment for defined benefit pension plan 0 0 0 0 (131) (131) Adjustment for unrealized loss on available for sale securities 0 0 0 0 (241) (241) Market value adjustment for interest rate hedge 0 0 0 0 630 630 Common stock cash dividend 0 0 0 (514) 0 (514) Balance at March 31, 2024 $ 268 $ (83,280) $ 146,372 $ 60,291 $ (19,718) $ 103,933 Net loss 0 0 0 (375) 0 (375) Treasury stock, purchased at cost 0 (1,511) 0 0 0 (1,511) Adjustment for defined benefit pension plan 0 0 0 0 2,177 2,177 Adjustment for unrealized loss on available for sale securities 0 0 0 0 (119) (119) Market value adjustment for interest rate hedge 0 0 0 0 71 71 Common stock cash dividend 0 0 0 (515) 0 (515) Balance at June 30, 2024 $ 268 $ (84,791) $ 146,372 $ 59,401 $ (17,589) $ 103,661 Net income 0 0 0 1,183 0 1,183 Adjustment for defined benefit pension plan 0 0 0 0 753 753 Adjustment for unrealized gain on available for sale securities 0 0 0 0 3,966 3,966 Market value adjustment for interest rate hedge 0 0 0 0 (886) (886) Common stock cash dividend 0 0 0 (495) 0 (495) Balance at September 30, 2024 $ 268 $ (84,791) $ 146,372 $ 60,089 $ (13,756) $ 108,182 Net income 0 0 0 889 0 889 Adjustment for defined benefit pension plan 0 0 0 0 2,224 2,224 Adjustment for unrealized loss on available for sale securities 0 0 0 0 (2,590) (2,590) Market value adjustment for interest rate hedge 0 0 0 0 402 402 Common stock cash dividend 0 0 0 (496) 0 (496) Balance at December 31, 2024 $ 268 $ (84,791) $ 146,372 $ 60,482 $ (13,720) $ 108,611 2023 COMMON STOCK TREASURY STOCK SURPLUS RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME TOTAL Balance at December 31, 2022 $ 267 $ (83,280) $ 146,225 $ 65,486 $ (22,520) $ 106,178 Net income 0 0 0 1,515 0 1,515 Exercise of stock options and stock option expense 1 0 106 0 0 107 Adjustment for defined benefit pension plan 0 0 0 0 0 0 Adjustment for unrealized gain on available for sale securities 0 0 0 0 449 449 Market value adjustment for interest rate hedge 0 0 0 0 (655) (655) Cumulative effect adjustment for change in accounting principle 0 0 0 (1,181) 0 (1,181) Common stock cash dividend 0 0 0 (514) 0 (514) Balance at March 31, 2023 $ 268 $ (83,280) $ 146,331 $ 65,306 $ (22,726) $ 105,899 Net loss 0 0 0 (187) 0 (187) Exercise of stock options and stock option expense 0 0 12 0 0 12 Adjustment for defined benefit pension plan 0 0 0 0 0 0 Adjustment for unrealized loss on available for sale securities 0 0 0 0 (2,560) (2,560) Market value adjustment for interest rate hedge 0 0 0 0 916 916 Common stock cash dividend 0 0 0 (515) 0 (515) Balance at June 30, 2023 $ 268 $ (83,280) $ 146,343 $ 64,604 $ (24,370) $ 103,565 Net income 0 0 0 647 0 647 Exercise of stock options and stock option expense 0 0 11 0 0 11 Adjustment for defined benefit pension plan 0 0 0 0 0 0 Adjustment for unrealized loss on available for sale securities 0 0 0 0 (2,700) (2,700) Market value adjustment for interest rate hedge 0 0 0 0 316 316 Common stock cash dividend 0 0 0 (513) 0 (513) Balance at September 30, 2023 $ 268 $ (83,280) $ 146,354 $ 64,738 $ (26,754) $ 101,326 Net loss 0 0 0 (5,321) 0 (5,321) Exercise of stock options and stock option expense 0 0 10 0 0 10 Adjustment for defined benefit pension plan 0 0 0 0 1,688 1,688 Adjustment for unrealized gain on available for sale securities 0 0 0 0 6,019 6,019 Market value adjustment for interest rate hedge 0 0 0 0 (929) (929) Common stock cash dividend 0 0 0 (516) 0 (516) Balance at December 31, 2023 $ 268 $ (83,280) $ 146,364 $ 58,901 $ (19,976) $ 102,277 AMERISERV FINANCIAL, INC. NASDAQ: ASRV RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RETURN ON AVERAGE TANGIBLE COMMON EQUITY, TANGIBLE COMMON EQUITY RATIO, AND TANGIBLE BOOKVALUE PER SHARE (Dollars in thousands, except per share and ratio data) (Unaudited) The press release contains certain financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures are "return on average tangible common equity", "tangible common equity ratio", and "tangible book value per share". This non-GAAP disclosure has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. These non-GAAP measures are used by management in their analysis of the Company's performance or, management believes, facilitate an understanding of the Company's performance. We also believe that presenting non-GAAP financial measures provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. 2024 1QTR 2QTR 3QTR 4QTR FULL YEAR 2024 RETURN ON AVERAGE TANGIBLE COMMON EQUITY Net income (loss) $ 1,904 $ (375) $ 1,183 $ 889 $ 3,601 Average shareholders' equity 101,997 102,677 104,416 107,215 104,076 Less: Average intangible assets 13,708 13,701 13,695 13,690 13,699 Average tangible common equity 88,289 88,976 90,721 93,525 90,377 Return on average tangible common equity (annualized) 8.67 % (1.70) % 5.19 % 3.78 % 3.98 % 1QTR 2QTR 3QTR 4QTR TANGIBLE COMMON EQUITY Total shareholders' equity $ 103,933 $ 103,661 $ 108,182 $ 108,611 Less: Intangible assets 13,705 13,699 13,693 13,688 Tangible common equity 90,228 89,962 94,489 94,923 TANGIBLE ASSETS Total assets 1,384,516 1,403,438 1,405,187 1,423,725 Less: Intangible assets 13,705 13,699 13,693 13,688 Tangible assets 1,370,811 1,389,739 1,391,494 1,410,037 Tangible common equity ratio 6.58 % 6.47 % 6.79 % 6.73 % Total shares outstanding 17,147,270 16,519,267 16,519,267 16,519,267 Tangible book value per share $ 5.26 $ 5.45 $ 5.72 $ 5.75 2023 1QTR 2QTR 3QTR 4QTR FULLYEAR 2023 RETURN ON AVERAGE TANGIBLE COMMON EQUITY Net income (loss) $ 1,515 $ (187) $ 647 $ (5,321) $ (3,346) Average shareholders' equity 105,092 104,913 102,976 101,287 103,567 Less: Average intangible assets 13,734 13,727 13,720 13,714 13,724 Average tangible common equity 91,358 91,186 89,256 87,573 89,843 Return on average tangible common equity (annualized) 6.73 % (0.82) % 2.88 % (24.11) % (3.72) % 1QTR 2QTR 3QTR 4QTR TANGIBLE COMMON EQUITY Total shareholders' equity $ 105,899 $ 103,565 $ 101,326 $ 102,277 Less: Intangible assets 13,731 13,724 13,718 13,712 Tangible common equity 92,168 89,841 87,608 88,565 TANGIBLE ASSETS Total assets 1,345,957 1,345,721 1,361,789 1,389,638 Less: Intangible assets 13,731 13,724 13,718 13,712 Tangible assets 1,332,226 1,331,997 1,348,071 1,375,926 Tangible common equity ratio 6.92 % 6.74 % 6.50 % 6.44 % Total shares outstanding 17,147,270 17,147,270 17,147,270 17,147,270 Tangible book value per share $ 5.38 $ 5.24 $ 5.11 $ 5.16 SOURCE AmeriServ Financial, Inc. 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AMERISERV FINANCIAL REPORTS EARNINGS FOR THE FULL YEAR OF 2024 AND ANNOUNCES QUARTERLY COMMON STOCK CASH DIVIDEND

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