We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AmeriServ Q3 Earnings Surge Y/Y on Net Interest Income Growth
Read MoreHide Full Article
Shares of AmeriServ Financial, Inc. (ASRV - Free Report) have gained 5.6% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 index’s 0.9% change over the same time frame. Over the past month, the stock moved 8% versus the S&P 500’s 2.1% change, reflecting investors' favorable response to the company’s performance and outlook.
AmeriServ reported net income of 15 cents per share for the third quarter of 2025, a sharp 114% increase over the 7 cents per share reported in the year-ago period.
Total revenues were driven largely by improved net interest income and margin, partially offset by elevated credit loss provisions and a year-over-year decline in non-interest income.
Net income of $2.5 million denoted a sharp 115% increase from the $1.2 million recorded in the year-ago period.
AmeriServ Financial, Inc. Price, Consensus and EPS Surprise
A standout driver of AmeriServ's third-quarter performance was the increase in net interest income, which rose 23.9% to $11 million compared to $8.9 million a year earlier. This improvement was underpinned by an expansion in the company’s net interest margin, which increased 56 basis points to 3.27% for the quarter.
The margin improvement reflected controlled balance sheet growth and effective pricing strategies. In addition, Federal Reserve interest rate cuts late in 2024 and again in September 2025 helped reduce funding costs, boosting the company’s spread income.
Management Commentary
President and CEO Jeffrey A. Stopko credited the record third quarter earnings to "continued focus on generating positive operating leverage" and disciplined balance sheet management. Stopko highlighted a $4.8 million year-to-date increase in net interest income, representing roughly 70% of total revenues, and a favorable decline in non-interest expense over the same period. He reaffirmed management’s commitment to revenue growth and cost control to further improve operating efficiency.
Other Key Metrics
While top-line performance was strong, AmeriServ faced some pressure from credit quality and non-interest income. The company recorded a $0.4 million provision for credit losses in the third quarter, reversing a recovery of $0.1 million in the same period last year.
Despite this, non-performing assets declined 8.9% from June 30, 2025, totaling $15 million at quarter-end, aided by the payoff of a non-performing commercial real estate loan and the charge-off of an impaired corporate security.
Total loans stood at $1.1 billion in the third quarter. Meanwhile, deposit growth was solid, with average balances increasing 6% year-over-year, allowing the bank to reduce reliance on higher-cost borrowed funds and lower interest expense by 4.7% year-to-date.
Non-Interest Income and Expenses
Non-interest income increased modestly by 4.7% in the third quarter to $4.4 million, driven by a $0.3 million boost in bank-owned life insurance (BOLI) revenue.
Total non-interest expense rose 2.1% in the quarter to $12 million, due largely to increased workout expenses on a troubled CRE loan.
Dividend and Capital Position
The company declared a 3 cents per share quarterly dividend, payable Nov. 17, 2025, representing a 4% annualized yield and a 36% payout ratio based on 2025 year-to-date earnings. Shareholders' equity rose to $114.6 million, with book value per share increasing 6% year over year to $6.94, and tangible book value per share up 6.8% to $6.11. AmeriServ continues to maintain capital ratios above regulatory thresholds for well-capitalized institutions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AmeriServ Q3 Earnings Surge Y/Y on Net Interest Income Growth
Shares of AmeriServ Financial, Inc. (ASRV - Free Report) have gained 5.6% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 index’s 0.9% change over the same time frame. Over the past month, the stock moved 8% versus the S&P 500’s 2.1% change, reflecting investors' favorable response to the company’s performance and outlook.
AmeriServ reported net income of 15 cents per share for the third quarter of 2025, a sharp 114% increase over the 7 cents per share reported in the year-ago period.
Total revenues were driven largely by improved net interest income and margin, partially offset by elevated credit loss provisions and a year-over-year decline in non-interest income.
Net income of $2.5 million denoted a sharp 115% increase from the $1.2 million recorded in the year-ago period.
AmeriServ Financial, Inc. Price, Consensus and EPS Surprise
AmeriServ Financial, Inc. price-consensus-eps-surprise-chart | AmeriServ Financial, Inc. Quote
Net Interest Income and Margin Fuel Revenue Gains
A standout driver of AmeriServ's third-quarter performance was the increase in net interest income, which rose 23.9% to $11 million compared to $8.9 million a year earlier. This improvement was underpinned by an expansion in the company’s net interest margin, which increased 56 basis points to 3.27% for the quarter.
The margin improvement reflected controlled balance sheet growth and effective pricing strategies. In addition, Federal Reserve interest rate cuts late in 2024 and again in September 2025 helped reduce funding costs, boosting the company’s spread income.
Management Commentary
President and CEO Jeffrey A. Stopko credited the record third quarter earnings to "continued focus on generating positive operating leverage" and disciplined balance sheet management. Stopko highlighted a $4.8 million year-to-date increase in net interest income, representing roughly 70% of total revenues, and a favorable decline in non-interest expense over the same period. He reaffirmed management’s commitment to revenue growth and cost control to further improve operating efficiency.
Other Key Metrics
While top-line performance was strong, AmeriServ faced some pressure from credit quality and non-interest income. The company recorded a $0.4 million provision for credit losses in the third quarter, reversing a recovery of $0.1 million in the same period last year.
Despite this, non-performing assets declined 8.9% from June 30, 2025, totaling $15 million at quarter-end, aided by the payoff of a non-performing commercial real estate loan and the charge-off of an impaired corporate security.
Total loans stood at $1.1 billion in the third quarter. Meanwhile, deposit growth was solid, with average balances increasing 6% year-over-year, allowing the bank to reduce reliance on higher-cost borrowed funds and lower interest expense by 4.7% year-to-date.
Non-Interest Income and Expenses
Non-interest income increased modestly by 4.7% in the third quarter to $4.4 million, driven by a $0.3 million boost in bank-owned life insurance (BOLI) revenue.
Total non-interest expense rose 2.1% in the quarter to $12 million, due largely to increased workout expenses on a troubled CRE loan.
Dividend and Capital Position
The company declared a 3 cents per share quarterly dividend, payable Nov. 17, 2025, representing a 4% annualized yield and a 36% payout ratio based on 2025 year-to-date earnings. Shareholders' equity rose to $114.6 million, with book value per share increasing 6% year over year to $6.94, and tangible book value per share up 6.8% to $6.11. AmeriServ continues to maintain capital ratios above regulatory thresholds for well-capitalized institutions.