Company: ASRV
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001558370-25-011060
Chunk: 4

Company: AMERISERV FINANCIAL INC /PA/
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 2M
Chunk 4
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Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (“MD&A”)

THREE MONTHS ENDED JUNE 30, 2025 VS. THREE MONTHS ENDED JUNE 30, 2024

…..PERFORMANCE OVERVIEW…..The following table summarizes some of the Company’s key performance indicators (in thousands, except per share and ratios).

​​​​​​​​​    Three months ended     Three months ended  ​​June 30, 2025​June 30, 2024 Net loss​$ (282)​$ (375)​Diluted earnings per share​  (0.02)​  (0.02)​Return on average assets (annualized)​  (0.08)%    (0.11)%Return on average equity (annualized)​  (1.02)%    (1.47)%

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The Company reported a second quarter 2025 net loss of $282,000, or $0.02 per diluted common share. This performance represented a $93,000 improvement from the second quarter of 2024 when the net loss totaled $375,000, or $0.02 per diluted common share. The resolution of our largest problem loan in the second quarter of 2025 resulted in an increased provision for credit losses which caused the modest loss reported for the quarter. Nevertheless, the Company again achieved positive operating leverage in the second quarter of 2025 as total revenue increased while non-interest expenses declined. The increase in total revenue was caused by meaningful improvement in net interest income as the second quarter net interest margin increased by 36-basis points from the prior year’s second quarter leading to a $1.5 million increase in net interest income.

…..NET INTEREST INCOME AND MARGIN…..The Company’s net interest income represents the amount by which interest income on earning assets exceeds interest paid on interest bearing liabilities. Net interest income is a primary source of the Company’s earnings, and it is affected by interest rate fluctuations as well as changes in the amount and mix of earning assets and interest bearing liabilities.