Ameriserve Financial Reports Q2 Net Interest Margin of 3.10%, Up 36 Basis Points YOY.

Ameriserve Financial reported Q2 EPS of 2c, matching last year's result. The net interest margin increased 36 basis points to 3.10%, and tangible book value was $5.88. CEO Jeffrey Stopko attributed the modest loss to the resolution of a large problem loan. The company achieved positive operating leverage, with total revenue up and non-interest expenses down, driven by a 34 basis point improvement in net interest margin.

AmeriServ Financial, Inc. (NASDAQ: ASRV) reported its second quarter 2025 earnings, with a net loss of $282,000, or $0.02 per diluted common share, representing a $93,000 improvement from the second quarter of 2024. For the six-month period ended June 30, 2025, the company reported net income of $1,626,000, or $0.10 per diluted common share, an 11.1% increase from the same period in 2024 [2].

The company's net interest income increased by $1.5 million, or 17.1%, from the prior year's second quarter, and by $2.7 million, or 15.3%, for the first six months of 2025 compared to the first six months of 2024. The net interest margin improved by 36 basis points to 3.10% for the second quarter of 2025 and by 34 basis points to 3.06% for the six months of 2025 [2].

CEO Jeffrey A. Stopko attributed the modest loss to the resolution of the company's largest problem loan. He noted that the company achieved positive operating leverage, with total revenue increasing while non-interest expenses declined. The net interest margin improved by 34 basis points for the first six months of 2025, leading to a $2.7 million increase in net interest income [2].

The company's total average loans grew by $37.2 million, or 3.6%, in the first six months of 2025 compared to the 2024 six-month average. Total loans continue to be well above the $1.0 billion threshold, averaging $1.069 billion for the second quarter of 2025. The loan to deposit ratio averaged 86.2% in the second quarter of 2025, indicating ample capacity for further growth [2].

The company's total average deposits grew by $67.8 million, or 5.8%, in the first six months of 2025 compared to the first six months of 2024. Total interest expense decreased by $340,000, or 4.5%, for the second quarter of 2025 and by $726,000, or 4.8%, for the six months when compared to both time periods of 2024 [2].

The company recorded a $3.1 million provision for credit losses in the second quarter of 2025, primarily reflecting the resolution of its largest problem asset, a mixed use commercial real estate [2].

References:
[1] Reuters. (2025, July 23). CVBF. Retrieved from https://www.tradingview.com/news/reuters.com,2025-07-23:newsml_PLXA69E44:0-brief-cvb-financial-q2-eps-usd-0-36/
[2] PRNewswire. (2025, July 22). AmeriServ Financial Reports Earnings for Second Quarter 2025. Retrieved from https://finance.yahoo.com/news/ameriserv-financial-reports-earnings-second-120000678.html