AmeriServ Financial (NASDAQ:ASRV) reported a sharp rise in fourth-quarter and full-year earnings, as significantly higher net interest income outweighed a multi-million dollar charge-off linked to a troubled commercial real estate loan.
The Johnstown, Pennsylvania-based lender posted fourth-quarter net income of $1.44 million, or 9 cents per share, marking a 62.2% increase from the same period a year ago.
For the full year 2025, the bank’s profit climbed to $5.61 million, or 34 cents per share, as effective balance sheet management and a higher interest rate environment bolstered the bottom line.
Net interest income for the year jumped 17.2% to $6.2 million, while the net interest margin expanded by 34 basis points to 3.15%.
Despite the strong headline growth, the bank’s provision for credit losses hit $4.1 million for the year.
This was primarily driven by a $3.1 million charge-off in 2025 used to resolve the company’s largest problem commercial real estate (CRE) loan.
CEO Jeffrey A. Stopko noted that resolving this non-performing asset has significantly cleaned up the bank's credit profile, with non-performing assets decreasing 43% since September.
Shareholders also saw a boost in value, as tangible book value per share rose 12.9% to $6.39 by year-end.