#United States #Dividend #AmeriServ Financial #ASRV #Johnstown, PA

AmeriServ Financial's Impressive Earnings Report for 2024

AmeriServ Financial, Inc. (NASDAQ: ASRV) has released its earnings report for the full year of 2024, revealing a robust financial turnaround. The company recorded a net income of $3.6 million, equating to $0.21 per diluted share, a significant improvement compared to a $3.3 million net loss from the previous year. The fourth quarter alone saw net earnings of $889,000, translating to $0.05 per diluted share, as opposed to a loss of $5.3 million in the same quarter last year.

Significant Financial Highlights

The key financial highlights show that for the year ended December 31, 2024:

• - Total loans surged by $30 million, or 2.9%.
• - Deposits increased by $43 million, representing a 3.7% growth.
• - Net interest margin for the fourth quarter improved to 2.88%, demonstrating an increase amid favorable market conditions.
• - The company’s tangible book value saw an increase of 11.4%, reaching $5.75 per share.

Jeffrey A. Stopko, President and CEO, commented on the strong momentum, attributing it to the community banking sector's diversified revenue streams, particularly the wealth management division which contributed significantly to non-interest income, constituting 33% of total revenue for the year.

Growth Drivers

The growth in net interest income is exemplary as it surged $950,000, or 11.1%, from the prior year while net interest income for the entire year showed a slight increase. Notably, the company benefitted substantially from a lower provision for credit losses, improving by $4.9 million in the fourth quarter alone.

The overall growth trajectory for AmeriServ is underpinned by increased loan originations, hitting a record high in the fourth quarter, which effectively more than doubled the payoff activity, leading to higher interest income. The bank’s average loan portfolio rose by $40.5 million or 4.1% for 2024 compared to 2023, which solidifies its position in the competitive financial landscape.

Management additionally took strides in optimizing the investment portfolio. Significant adjustments made toward the end of 2023 resulted in increased yields from new investments despite a gradual decrease in overall investment securities due to a strategic redirection of resources towards higher-yielding loans.

Future Outlook and Dividend Declaration

Looking ahead, AmeriServ plans to maintain this positive momentum into 2025, with management expecting further growth in net interest income driven by an uptick in the net interest margin correlated with ongoing adjustments to the national interest rates.

In recognition of their solid capital position and earnings enhancement, AmeriServ's Board of Directors has declared a $0.03 per share quarterly cash dividend, illustrating the company’s commitment to returning value to shareholders. This dividend will be paid out on February 18, 2025, reflecting a 4.35% annualized yield based on the stock's closing price as of January 16, 2025.

Conclusion

In summary, AmeriServ Financial, Inc. has showcased a commendable financial turnaround in 2024, as evidenced by its positive net income, increasing loans and deposits, and a solid return of dividends to its shareholders. With a strategic focus on community banking and wealth management, AmeriServ is well positioned to navigate the opportunities and challenges of the forthcoming year.