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

AMERISERV FINANCIAL REPORTS EARNINGS FOR THE FIRST QUARTER OF 2026 AND ANNOUNCES QUARTERLY COMMON STOCK CASH DIVIDEND , /PRNewswire/ -- AmeriServ Financial, Inc. (NASDAQ: ASRV) reported first quarter 2026 net income of $1,794,000, or $0.11 per diluted common share. This compares to net income for the first quarter of 2025 of $1,908,000, or $0.12 per diluted common share. The following table details the Company's financial performance for the quarters ended March 31, 2026 and 2025: First Quarter 2026 First Quarter 2025 $ Change % Change Net income $ 1,794,000 $ 1,908,000 $ (114,000) (6.0) % Diluted earnings per share $ 0.11 $ 0.12 $ (0.01) (8.3) % Jeffrey A. Stopko, President and Chief Executive Officer, commented on the first quarter 2026 financial results: "AmeriServ Financial achieved positive operating leverage in the first quarter of 2026 as our total revenue increased at a faster rate than our total non-interest expense. The increase in total revenue was caused by meaningful improvement in our net interest income because of effective balance sheet management. Specifically, our net interest margin increased by 25-basis points from the first quarter of 2025 leading to an $897,000 increase in net interest income, which is important since this category represents approximately 73% of our total revenue. Our Company is well positioned for organic growth in 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 in 2026." All first quarter financial performance metrics within this document are compared to the first quarter of 2025 unless otherwise noted. Net interest income in the first quarter of 2026 increased by $897,000, or 9.0%, when compared to the first quarter of 2025. The Company's net interest margin of 3.26% for the first quarter of 2026 represents a 25-basis point improvement from the first quarter of 2025. Along with the significantly 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 our effective balance sheet management and business development strategies. 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 final four months of 2025 favorably impacted total interest-bearing deposits and borrowings costs. Also, while the U.S. Treasury yield curve is relatively flat on the short end, yields in the mid to long end of the curve are higher and demonstrate a steeper upward slope which favorably impacted earning asset yields. Management believes the net interest margin will continue to improve as we move through 2026 given the effective execution of our strategy. Non-interest expense increased in the first quarter of 2026 compared to last year's first quarter while non-interest income decreased compared to the first quarter of 2025. The first quarter provision for credit losses in 2026 was at a normal level but compared unfavorably to a credit recognized for the provision in the first quarter of last year. Overall, the Company's earnings performance for the first quarter of 2026 compares unfavorably to the first quarter of 2025 by $114,000, or 6.0%, as the improvement in net interest income was more than offset by higher total non-interest expense, the higher provision for credit losses and the lower level of non-interest income. Total investment securities averaged $271.6 million for the first quarter of 2026, which was $24.9 million, or 10.1%, higher than the $246.7 million average for the first quarter of 2025. Additionally, overnight short-term investments were higher by $17.0 million in the first quarter of 2026. These increases reflect a higher level of loan prepayment activity as well as our liquidity position strengthening throughout 2025 and the first quarter 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 $31.6 million, or 13.7%, since March 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 $582,000, or 23.2%, for the first quarter of 2026 compared to last year's first quarter. Total average loans for the first quarter of 2026 declined from the first quarter of 2025 by $37.5 million, or 3.5%, due to increased loan payoff activity, particularly from the commercial real estate (CRE) portfolio, during the second half of 2025 and exceeded loan originations. Total loans continue to be above the $1.0 billion threshold, averaging $1.027 billion for the first quarter of 2026. Total loan interest income in the first quarter of 2026 declined compared to the first quarter of 2025 as the lower average loan balance more than offset the more favorable 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 quarter of 2026. Total loan interest income decreased by $102,000, or 0.7%, when compared to the first quarter of 2025. Overall, the first quarter of 2026 average balance of total interest earning assets increased from last year's first quarter average by $11.7 million, or 0.9%, while total interest income increased by $480,000, or 2.8%, from the first quarter of 2025. On the liability side of the balance sheet, total average deposits for the first quarter of 2026 were $24.5 million, or 2.0%, higher when compared to the first quarter average of 2025 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 82.7% in the first 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 favorably by $417,000, or 5.9%, for the first quarter of 2026 when compared to the same time period of 2025. Deposit interest expense decreased by $205,000, or 3.3%, despite total average interest-bearing deposits growing by $39.2 million, or 3.8%, compared to the first quarter of 2025. 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 1.93% for the first quarter of 2026, which is an 11-basis point improvement from the first quarter of 2025. Total borrowings interest expense decreased by $212,000, or 21.9%, for the first quarter of 2026. The Company's utilization of overnight borrowed funds during the first quarter of 2026 was lower than it was for the first quarter of 2025, resulting in the first quarter average decreasing by $5.6 million, or 86.7%, 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 quarter 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 quarter of 2026 decreased by $12.2 million, or 22.2%, from last year's first quarter. 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 $217,000 provision for credit losses in the first quarter of 2026 after recording a $97,000 provision recovery in the first quarter of 2025, resulting in an unfavorable shift of $314,000. The provision for credit losses in the first quarter reflects a $284,000 provision for credit losses on loans resulting from updates to both historical loss rates and qualitative adjustments and an additional $27,000 of provision expense was recognized to create a partial reserve for a senior debt corporate investment within the securities portfolio. Both of these items were partially offset by a $94,000 provision recovery related to unfunded commitments because of a decline in outstanding loan commitments. Non-performing assets were relatively stable since December 31, 2025, increasing by $204,000, or 2.4%, and totaling $8.7 million. The increase reflects the transfer of a $500,000 senior debt corporate security into non-accrual status that became impaired during the first quarter of 2026. The transfer of this security into non-accrual status more than offset a $296,000 reduction to non-performing loans since year end 2025. Non-performing loans represented 0.78% of total loans at March 31, 2026 and decreased by 2-basis points from December 31, 2025. The Company recognized net loan charge-offs of $206,000, or 0.08% of total average loans, in the first quarter of 2026 compared to net loan charge-offs of $64,000, or 0.02% of total average loans, in the first quarter of 2025. Overall, the Company's allowance for loan credit losses provided 165% coverage of non-performing loans and represented 1.28% of total loans at March 31, 2026.  Total non-interest income in the first quarter of 2026 decreased by $154,000, or 3.7%, from the prior year's first quarter. Other income is lower by $110,000, or 15.9%, after a net gain was recognized from two separate sales in the first quarter of 2025 of a Bank branch office and an OREO property. There was no such sale activity in the first quarter of 2026. Also, contributing to the unfavorable comparison for total non-interest income was the Company recognizing a $63,000 loss on trading securities from a $7.2 million trading account that did not exist in the first quarter of 2025. Partially offsetting these unfavorable items were increases to service charges on deposit accounts by $27,000, or 9.8%, because of the deposit growth the Company experienced and a $22,000, or 78.6%, increase in mortgage banking revenue due to increased production in 2026. Finally, wealth management fees are relatively consistent with the level achieved in the first quarter of 2025. Overall, the fair market value of wealth management assets totaled $2.6 billion at March 31, 2026 and decreased by $68.0 million, or 2.5%, since December 31, 2025. Total non-interest expense in the first quarter of 2026 increased by $595,000, or 5.1%, when compared to the first quarter of 2025. Professional fees increased by $480,000, or 70.1%, due to additional expenses related to the amended and restated consulting agreement with SB Value Partners that expands the nature and scope of the consulting services provided to the Company. Details of this revised agreement were provided in the Company's Report on Form 8-K filed on January 7, 2026. Also contributing to the increase in professional fees were higher costs for recruitment and outside professional services. Other expenses were $108,000, or 9.5%, higher due to the bank having to recognize additional workout expenses related to a loan relationship secured by an owner-occupied CRE property. The additional costs related to this property were the sole reason for the unfavorable quarter over quarter comparison for other expenses. Slightly offsetting the higher level of expense was reduced FDIC deposit insurance expense by $30,000, or 12.5%. The Company recorded income tax expense of $426,000 in the first quarter of 2026, or an effective tax rate of 19.2%, which compares to income tax expense of $478,000, or an effective tax rate of 20.0%, in the first quarter of 2025. The Company had total assets of $1.47 billion, shareholders' equity of $120.7 million, a book value of $7.12 per common share and a tangible book value of $6.31(1) per common share on March 31, 2026. Book value per common share increased by $0.42, or 6.3%, and tangible book value per common share also increased by $0.43, or 7.3%, over the past 12 months. The Company and Bank continued to maintain strong capital ratios that exceed the regulatory defined well-capitalized status as of March 31, 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 May 18, 2026, to shareholders of record on May 4, 2026. This cash dividend represents a 3.0% annualized yield using the April 17, 2026 closing stock price of $3.94 and a 27.3% payout ratio based upon 2026 first quarter 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 March 31, 2026 (Dollars in thousands, except per share and ratio data) (Unaudited) 2026 1QTR PERFORMANCE DATA FOR THE PERIOD: Net income (loss) $ 1,794 PERFORMANCE PERCENTAGES (annualized): Return on average assets 0.50 % Return on average equity 6.03 Return on average tangible common equity (1) 6.80 Net interest margin 3.26 Net charge-offs (recoveries) as a percentage of average loans 0.08 Efficiency ratio (3) 83.26 EARNINGS PER COMMON SHARE: Basic $ 0.11 Average number of common shares outstanding 16,927 Diluted $ 0.11 Average number of common shares outstanding 16,928 Cash dividends paid per share $ 0.03 2025 1QTR 2QTR 3QTR 4QTR FULL YEAR 2025 PERFORMANCE DATA FOR THE PERIOD: Net income (loss) $ 1,908 $ (282) $ 2,544 $ 1,442 $ 5,612 PERFORMANCE PERCENTAGES (annualized): Return on average assets 0.54 % (0.08) % 0.70 % 0.39 % 0.39 % Return on average equity 7.12 (1.02) 9.06 4.96 5.03 Return on average tangible common equity (1) 8.14 (1.16) 10.32 5.63 5.73 Net interest margin 3.01 3.10 3.27 3.23 3.15 Net charge-offs (recoveries) as a percentage of average loans 0.02 1.09 (0.01) 0.74 0.46 Efficiency ratio (3) 83.67 80.73 77.55 84.14 81.47 EARNINGS PER COMMON SHARE: Basic $ 0.12 $ (0.02) $ 0.15 $ 0.09 $ 0.34 Average number of common shares outstanding 16,519 16,519 16,519 16,521 16,520 Diluted $ 0.12 $ (0.02) $ 0.15 $ 0.09 $ 0.34 Average number of common shares outstanding 16,519 16,519 16,519 16,562 16,530 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) 2026 1QTR FINANCIAL CONDITION DATA AT PERIOD END: Assets $ 1,472,654 Short-term investments/overnight funds 41,039 Investment securities, net of allowance for credit losses - securities 263,085 Trading securities 7,164 Total loans and loans held for sale, net of unearned income 1,031,482 Allowance for credit losses - loans 13,206 Intangible assets 13,662 Deposits 1,269,950 Short-term and FHLB borrowings 40,895 Subordinated debt, net 26,778 Shareholders' equity 120,703 Non-performing assets 8,722 Tangible common equity ratio (1) 7.34 % Total capital (to risk weighted assets) ratio 13.47 PER COMMON SHARE: Book value $ 7.12 Tangible book value (1) 6.31 Market value (2) 3.62 Wealth management assets – fair market value (4) $ 2,613,708 STATISTICAL DATA AT PERIOD END: Full-time equivalent employees 299 Branch locations 16 Common shares outstanding 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 % Total capital (to risk weighted assets) ratio 12.73 12.50 12.97 13.30 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 INTEREST INCOME Interest and fees on loans $ 14,406 Interest on investments 3,096 Total Interest Income 17,502 INTEREST EXPENSE Deposits 5,919 All borrowings 755 Total Interest Expense 6,674 NET INTEREST INCOME 10,828 Provision (recovery) for credit losses 217 NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES 10,611 NON-INTEREST INCOME Wealth management fees 2,860 Service charges on deposit accounts 302 Mortgage banking revenue 50 (Loss) gain on trading securities (63) Bank owned life insurance 238 Other income 580 Total Non-Interest Income 3,967 NON-INTEREST EXPENSE Salaries and employee benefits 7,225 Net occupancy expense 843 Equipment expense 408 Professional fees 1,165 Data processing and IT expense 1,267 FDIC deposit insurance expense 210 Other expense 1,240 Total Non-Interest Expense 12,358 PRETAX INCOME (LOSS) 2,220 Income tax expense (benefit) 426 NET INCOME (LOSS) $ 1,794 2025 1QTR 2QTR 3QTR 4QTR FULL YEAR 2025 INTEREST INCOME Interest and fees on loans $ 14,508 $ 14,932 $ 15,688 $ 15,032 $ 60,160 Interest on investments 2,514 2,757 2,795 3,128 11,194 Total Interest Income 17,022 17,689 18,483 18,160 71,354 INTEREST EXPENSE Deposits 6,124 6,408 6,549 6,390 25,471 All borrowings 967 887 927 839 3,620 Total Interest Expense 7,091 7,295 7,476 7,229 29,091 NET INTEREST INCOME 9,931 10,394 11,007 10,931 42,263 Provision (recovery) for credit losses (97) 3,133 360 724 4,120 NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES 10,028 7,261 10,647 10,207 38,143 NON-INTEREST INCOME Wealth management fees 2,864 2,782 2,849 3,065 11,560 Service charges on deposit accounts 275 267 303 300 1,145 Mortgage banking revenue 28 58 39 59 184 (Loss) gain on trading securities 0 35 55 28 118 Bank owned life insurance 264 244 533 243 1,284 Other income 690 710 622 676 2,698 Total Non-Interest Income 4,121 4,096 4,401 4,371 16,989 NON-INTEREST EXPENSE Salaries and employee benefits 7,223 7,076 7,317 7,323 28,939 Net occupancy expense 841 746 705 692 2,984 Equipment expense 390 404 376 389 1,559 Professional fees 685 903 601 1,566 3,755 Data processing and IT expense 1,252 1,153 1,247 1,301 4,953 FDIC deposit insurance expense 240 240 260 247 987 Other expense 1,132 1,187 1,458 1,382 5,159 Total Non-Interest Expense 11,763 11,709 11,964 12,900 48,336 PRETAX INCOME (LOSS) 2,386 (352) 3,084 1,678 6,796 Income tax expense (benefit) 478 (70) 540 236 1,184 NET INCOME (LOSS) $ 1,908 $ (282) $ 2,544 $ 1,442 $ 5,612 AMERISERV FINANCIAL, INC. NASDAQ: ASRV AVERAGE BALANCE SHEET DATA (Dollars in thousands) (Unaudited) 2026 2025 1QTR 1QTR Interest earning assets: Loans and loans held for sale, net of unearned income $ 1,027,165 $ 1,064,629 Short-term investments and bank deposits 28,846 11,828 Investment securities 271,564 246,682 Trading securities 7,240 0 Total interest earning assets 1,334,815 1,323,139 Non-interest earning assets: Cash and due from banks 13,975 15,769 Premises and equipment 17,399 17,999 Other assets 94,898 89,087 Allowance for credit losses (13,437) (14,480) Total assets $ 1,447,650 $ 1,431,514 Interest bearing liabilities: Interest bearing deposits: Interest bearing demand $ 323,978 $ 341,608 Savings 124,044 121,122 Money market 250,933 237,760 Other time 377,195 336,504 Total interest bearing deposits 1,076,150 1,036,994 Borrowings: Short-term borrowings 851 6,421 Advances from Federal Home Loan Bank 42,700 54,906 Subordinated debt 27,000 27,000 Lease liabilities 3,869 4,207 Total interest bearing liabilities 1,150,570 1,129,528 Non-interest bearing liabilities: Demand deposits 166,099 180,788 Other liabilities 10,305 12,492 Shareholders' equity 120,676 108,706 Total liabilities and shareholders' equity $ 1,447,650 $ 1,431,514 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) $ 140,070 $ 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 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 RETURN ON AVERAGE TANGIBLE COMMON EQUITY Net income (loss) $ 1,794 Average shareholders' equity 120,676 Less: Average intangible assets 13,664 Average tangible common equity 107,012 Return on average tangible common equity (annualized) 6.80 % 1QTR TANGIBLE COMMON EQUITY Total shareholders' equity $ 120,703 Less: Intangible assets 13,662 Tangible common equity 107,041 TANGIBLE ASSETS Total assets 1,472,654 Less: Intangible assets 13,662 Tangible assets 1,458,992 Tangible common equity ratio 7.34 % Total shares outstanding 16,964,267 Tangible book value per share $ 6.31 2025 1QTR 2QTR 3QTR 4QTR FULL YEAR 2025 RETURN ON AVERAGE TANGIBLE COMMON EQUITY Net income (loss) $ 1,908 $ (282) $ 2,544 $ 1,442 $ 5,612 Average shareholders' equity 108,706 110,939 111,470 115,240 111,606 Less: Average intangible assets 13,684 13,679 13,674 13,669 13,676 Average tangible common equity 95,022 97,260 97,796 101,571 97,930 Return on average tangible common equity (annualized) 8.14 % (1.16) % 10.32 % 5.63 % 5.73 % 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 View original content to download multimedia:https://www.prnewswire.com/news-releases/ameriserv-financial-reports-earnings-for-the-first-quarter-of-2026-and-announces-quarterly-common-stock-cash-dividend-302748560.html SOURCE AmeriServ Financial, Inc.