AMERISERV FINANCIAL INC /PA/

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2026

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ____________ to_____________

Commission File Number 0-11204

AmeriServ Financial, Inc.

(Exact name of registrant as specified in its charter)


	Pennsylvania		25-1424278
	(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Main & Franklin Streets, P.O. Box 430, Johnstown, PA			15907-0430
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code (814) 533-5300

Securities registered pursuant to Section 12(b) of the Act:


Title Of Each Class	Trading Symbol	Name of Each Exchange On Which Registered
Common Stock	ASRV	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ◻	Accelerated Filer ◻	Non-accelerated Filer ⌧	Smaller Reporting Company ☒
			Emerging growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class		Outstanding at May 12, 2026
Common Stock, par value $0.01		16,964,267

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AmeriServ Financial, Inc.

INDEX


	Page No.

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements	3
Consolidated Balance Sheets (Unaudited) – March 31, 2026 and December 31, 2025	3
Consolidated Statements of Operations (Unaudited) – Three months ended March 31, 2026 and 2025	4
Consolidated Statements of Comprehensive Income (Unaudited) – Three months ended March 31, 2026 and 2025	5
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) – Three months ended March 31, 2026 and 2025	6
Consolidated Statements of Cash Flows (Unaudited) – Three months ended March 31, 2026 and 2025	7
Notes to Unaudited Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3. Quantitative and Qualitative Disclosure About Market Risk	52
Item 4. Controls and Procedures	52
PART II. OTHER INFORMATION	53
Item 1. Legal Proceedings	53
Item 1A. Risk Factors	53
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 3. Defaults Upon Senior Securities	53
Item 4. Mine Safety Disclosures	53
Item 5. Other Information	53
Item 6. Exhibits	54

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Item 1. Financial Statements

AmeriServ Financial, Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)


	March 31, 2026		December 31, 2025
ASSETS
Cash and due from depository institutions	$	13,064	$	11,473
Interest bearing deposits and short-term investments		41,039		39,418
Cash and cash equivalents		54,103		50,891
Investment securities, net of allowance for credit losses:
Available for sale, at fair value (allowance for credit losses $34 on March 31, 2026)		185,075		176,228
Held to maturity (fair value $73,917 on March 31, 2026 and $68,916 on December 31, 2025; allowance for credit losses $83 on March 31, 2026 and $90 on December 31, 2025)		78,010		72,256
Trading securities		7,164		7,253
Loans held for sale		423		241
Loans (net of unearned income $477 on March 31, 2026 and $466 on December 31, 2025)		1,031,059		1,032,727
Less: Allowance for credit losses		13,206		13,128
Net loans		1,017,853		1,019,599
Premises and equipment:
Operating lease right-of-use asset		1,347		1,395
Financing lease right-of-use asset		2,050		2,106
Other premises and equipment, net		13,881		13,929
Accrued interest income receivable		6,034		5,557
Intangible assets:
Goodwill		13,611		13,611
Core deposit intangible		51		56
Bank owned life insurance		39,443		39,308
Federal Home Loan Bank stock		3,711		3,785
Federal Reserve Bank stock		2,161		2,161
Other real estate owned and repossessed assets		216		216
Other assets		47,521		45,221
TOTAL ASSETS	$	1,472,654	$	1,453,813
LIABILITIES
Non-interest bearing deposits	$	162,142	$	159,198
Interest bearing deposits		1,107,808		1,088,930
Total deposits		1,269,950		1,248,128
Advances from Federal Home Loan Bank		40,895		44,615
Operating lease liabilities		1,379		1,426
Financing lease liabilities		2,452		2,501
Subordinated debt		26,778		26,767
Total borrowed funds		71,504		75,309
Net deferred tax liability		1,750		1,636
Other liabilities		8,747		9,428
TOTAL LIABILITIES		1,351,951		1,334,501
SHAREHOLDERS' EQUITY
Common stock, par value $0.01 per share; 30,000,000 shares authorized; 27,221,089 shares issued and 16,964,267 shares outstanding on March 31, 2026 and 26,779,089 shares issued, 216,500 shares issuable, and 16,522,267 shares outstanding on December 31, 2025		272		270
Treasury stock at cost, 10,256,822 shares on March 31, 2026 and December 31, 2025		(84,791)		(84,791)
Capital surplus		147,802		147,070
Retained earnings		65,398		64,112
Accumulated other comprehensive loss		(7,978)		(7,349)
TOTAL SHAREHOLDERS' EQUITY		120,703		119,312
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,472,654	$	1,453,813

See accompanying notes to unaudited consolidated financial statements.

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AmeriServ Financial, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)


		Three months ended
		March 31,
		2026			2025
INTEREST INCOME
Interest and fees on loans		$	14,406		$	14,508
Interest bearing deposits and short-term investments			258			114
Investment securities:
Available for sale			2,013			1,810
Held to maturity			763			590
Trading securities			62			—
Total Interest Income			17,502			17,022
INTEREST EXPENSE
Deposits			5,919			6,124
Short-term borrowings			9			76
Advances from Federal Home Loan Bank			459			602
Financing lease liabilities			24			26
Subordinated debt			263			263
Total Interest Expense			6,674			7,091
Net Interest Income			10,828			9,931
Provision (recovery) for credit losses			217			(97)
Net Interest Income after Provision (Recovery) for Credit Losses			10,611			10,028
NON-INTEREST INCOME
Wealth management fees			2,860			2,864
Service charges on deposit accounts			302			275
Mortgage banking revenue			50			28
Trading securities revenue			(63)			—
Bank owned life insurance			238			264
Other income			580			690
Total Non-Interest Income			3,967			4,121
NON-INTEREST EXPENSE
Salaries and employee benefits			7,225			7,223
Net occupancy expense			843			841
Equipment expense			408			390
Professional fees			1,165			685
Data processing and IT expense			1,267			1,252
Supplies, postage and freight			192			174
Miscellaneous taxes and insurance			364			348
Federal deposit insurance expense			210			240
Other expense			684			610
Total Non-Interest Expense			12,358			11,763

PRETAX INCOME			2,220			2,386
Provision for income taxes			426			478
NET INCOME		$	1,794		$	1,908
PER COMMON SHARE DATA:
Basic:
Net income		$	0.11		$	0.12
Average number of shares outstanding			16,927,456			16,519,267
Diluted:
Net income		$	0.11		$	0.12
Average number of shares outstanding			16,928,095			16,519,267

See accompanying notes to unaudited consolidated financial statements.

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AmeriServ Financial, Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)


		Three months ended
		March 31,
		2026			2025
COMPREHENSIVE INCOME
Net income		$	1,794		$	1,908
Other comprehensive (loss) income
Pension obligation change for defined benefit plan			438			—
Income tax effect			(92)			—
Unrealized holding (losses) gains on available for sale securities arising during period			(1,315)			2,687
Income tax effect			276			(563)
Fair value change for interest rate hedge			25			(12)
Income tax effect			(5)			3
Reclassification adjustment for increase (reduction) of interest expense related to interest rate hedge			56			(20)
Income tax effect			(12)			4
Other comprehensive (loss) income			(629)			2,099
COMPREHENSIVE INCOME		$	1,165		$	4,007

See accompanying notes to unaudited consolidated financial statements.

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AmeriServ Financial, Inc.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands, except share and per share data)

(Unaudited)


	Three months ended March 31, 2026
	Common Stock			Treasury Stock			Surplus		Retained Earnings			Accumulated Other Comprehensive Loss			Total
Balance at December 31, 2025	$	270		$	(84,791)		$	147,070	$	64,112		$	(7,349)		$	119,312
Net income		—			—			—		1,794			—			1,794
Common stock issued for exercise of stock options (9,000 shares)		—			—			27		—			—			27
Common stock issued (433,000 shares)		2			—			705		—			—			707
Other comprehensive loss		—			—			—		—			(629)			(629)
Cash dividend declared on common stock ($0.03 per share)		—			—			—		(508)			—			(508)
Balance at March 31, 2026	$	272		$	(84,791)		$	147,802	$	65,398		$	(7,978)		$	120,703


	Three months ended March 31, 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		—			—			—		1,908			—			1,908
Other comprehensive income		—			—			—		—			2,099			2,099
Cash dividend declared on common stock ($0.03 per share)		—			—			—		(496)			—			(496)
Balance at March 31, 2025	$	268		$	(84,791)		$	146,372	$	61,894		$	(12,984)		$	110,759

See accompanying notes to unaudited consolidated financial statements.

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AmeriServ Financial, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Three months ended
	March 31,
	2026		2025
OPERATING ACTIVITIES
Net income	$	1,794	$	1,908
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (recovery) for credit losses		217		(97)
Depreciation and amortization expense		552		524
Amortization expense of core deposit intangible		5		6
Amortization of fair value adjustment on acquired time deposits		—		(1)
Net accretion of investment securities		(51)		(17)
Net accretion of deferred loan fees		(37)		(34)
Net gains on loans held for sale		(25)		(21)
Origination of mortgage loans held for sale		(2,093)		(487)
Sales of mortgage loans held for sale		1,936		968
Increase in accrued interest receivable		(477)		(331)
Decrease in accrued interest payable		(470)		(368)
Earnings on bank owned life insurance		(238)		(264)
Deferred income taxes		281		167
Common stock issued		707		—
Net change in trading securities		89		—
Net change in operating leases		(47)		(44)
Other, net		(1,787)		(1,310)
Net cash provided by operating activities		356		599
INVESTING ACTIVITIES
Purchase of investment securities — available for sale		(18,166)		(12,702)
Purchase of investment securities — held to maturity		(7,743)		(3,979)
Proceeds from maturities of investment securities — available for sale		7,979		6,182
Proceeds from maturities of investment securities — held to maturity		2,039		558
Purchase of regulatory stock		(633)		(3,674)
Proceeds from redemption of regulatory stock		707		3,890
Net decrease in loans		1,499		5,544
(Purchase) sale of premises and equipment		(400)		65
Proceeds from sale of other real estate owned and repossessed assets		2		1,327
Proceeds from life insurance policies		—		351
Net cash used in investing activities		(14,716)		(2,438)
FINANCING ACTIVITIES
Net increase in deposit balances		21,822		15,844
Net decrease in other short-term borrowings		—		(4,269)
Principal borrowings on advances from Federal Home Loan Bank		—		908
Principal repayments on advances from Federal Home Loan Bank		(3,720)		(4,218)
Principal payments on financing lease liabilities		(49)		(46)
Stock options exercised		27		—
Common stock dividend paid		(508)		(496)
Net cash provided by financing activities		17,572		7,723
NET INCREASE IN CASH AND CASH EQUIVALENTS		3,212		5,884
CASH AND CASH EQUIVALENTS AT JANUARY 1		50,891		17,746
CASH AND CASH EQUIVALENTS AT MARCH 31	$	54,103	$	23,630

See accompanying notes to unaudited consolidated financial statements.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Principles of Consolidation

The accompanying consolidated financial statements include the accounts of AmeriServ Financial, Inc. (the Company) and its wholly owned subsidiary, AmeriServ Financial Bank (the Bank). The Bank is a Pennsylvania state-chartered full-service bank with 15 locations in Pennsylvania and 1 location in Maryland. Through its AmeriServ Wealth and Capital Management Division, the Bank offers a complete range of trust and financial services and administers assets valued at $2.6 billion and $2.7 billion that are not reported on the Company’s Consolidated Balance Sheets at March 31, 2026 and December 31, 2025, respectively. AmeriServ Wealth Advisors, Inc., an SEC-registered investment advisor, is a subsidiary of the Bank.

In addition, the Parent Company is an administrative group that provides support in such areas as audit, finance, investments, loan review, general services, and marketing. Intercompany accounts and transactions have been eliminated in preparing the Consolidated Financial Statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (generally accepted accounting principles, or GAAP) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from these estimates and the differences may be material to the Consolidated Financial Statements. The Company’s most significant estimates relate to the allowance for credit losses (related to investment securities, loans, and unfunded commitments), pension, and derivatives (interest rate swaps/hedges).

2. Basis of Preparation

The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. In the opinion of management, all adjustments consisting of normal recurring entries considered necessary for a fair presentation have been included. They are not, however, necessarily indicative of the results of consolidated operations for a full-year.

For further information, refer to the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

3. Revenue Recognition

Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, requires the Company to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers at the time the transfer of goods or services takes place. Management determined that the primary sources of revenue associated with financial instruments, including interest and fee income on loans and interest on investments, along with certain non-interest revenue sources including net realized gains (losses) on investment securities, mortgage banking revenue, trading securities revenue, and bank owned life insurance are not within the scope of Topic 606. These sources of revenue cumulatively comprise 83.2% of the total gross revenue of the Company.

Non-interest income within the scope of Topic 606 is as follows:

●

Wealth management fees - Wealth management fee income is primarily comprised of fees earned from the management and administration of trusts and customer investment portfolios. The Company’s performance obligation is generally satisfied over a period of time and the resulting fees are billed monthly or quarterly, based upon the month end market value of the assets under management. Payment is generally received after month end through a direct charge to customers’ accounts. Due to this delay in payment, a receivable of $850,000 was established as of March 31, 2026 and included in other assets on the Consolidated Balance Sheets in order to properly recognize the revenue earned but not yet received. Other performance obligations (such as delivery of account statements to customers) are generally considered immaterial to the overall transactions’ price. Commissions on transactions are recognized on a trade-date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Also included within wealth management fees are commissions from the sale of mutual funds, annuities, and life insurance products. Commissions on the sale of

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mutual funds, annuities, and life insurance products are recognized when sold, which is when the Company has satisfied its performance obligation.

●

Service charges on deposit accounts - The Company has contracts with its deposit account customers where fees are charged for certain items or services. Service charges include account analysis fees, monthly service fees, overdraft fees, and other deposit account related fees. Revenue related to account analysis fees and service fees is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. Fees attributable to specific performance obligations of the Company (i.e. overdraft fees, etc.) are recognized at a defined point in time based on completion of the requested service or transaction.

●

Other non-interest income - Other non-interest income consists of other recurring revenue streams such as safe deposit box rental fees, gain (loss) on sale of other real estate owned, ATM and VISA debit card fees, and other miscellaneous revenue streams. Safe deposit box rental fees are charged to the customer on an annual basis and recognized when billed. However, if the safe deposit box rental fee is prepaid (i.e. paid prior to issuance of the annual bill), the revenue is recognized upon receipt of payment. The Company has determined that since rentals and renewals occur consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Gains and losses on the sale of other real estate owned are recognized at the completion of the property sale when the buyer obtains control of the real estate and all the performance obligations of the Company have been satisfied. The Company offers ATM and VISA debit cards to deposit account holders, which allows our customers to access their account electronically at ATMs and POS terminals. Fees related to ATM and VISA debit card transactions are recognized when the transactions are completed and the Company has satisfied its performance obligation.

The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three-month periods ending March 31, 2026 and 2025 (in thousands).


	Three months ended
	March 31,
	2026		2025
Non-interest income:
In-scope of Topic 606
Wealth management fees	$	2,860	$	2,864
Service charges on deposit accounts		302		275
Other		449		331
Non-interest income (in-scope of Topic 606)		3,611		3,470
Non-interest income (out-of-scope of Topic 606)		356		651
Total non-interest income	$	3,967	$	4,121

4. Earnings Per Common Share

Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are excluded for earnings per share purposes. For the three-month periods ending March 31, 2026 and 2025, options to purchase 147,000 common shares, with an exercise price of $3.83 to $4.22, and options to purchase 179,000 common shares, with an exercise price of $2.96 to $4.22, respectively, were outstanding but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive.

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	Three months ended
	March 31,
	2026		2025

	(In thousands, except share and per share data)
Numerator:
Net income	$	1,794	$	1,908
Denominator:
Weighted average common shares outstanding (basic)		16,927,456		16,519,267
Effect of stock options		639		—
Weighted average common shares outstanding (diluted)		16,928,095		16,519,267
Earnings per common share:
Basic	$	0.11	$	0.12
Diluted		0.11		0.12

5. Consolidated Statement of Cash Flows

On a consolidated basis, cash and cash equivalents include cash and due from depository institutions, interest bearing deposits, and short-term investments in money market funds. The Company made no income tax payments in the first three months of 2026 and 2025. The Company made total interest payments of $7.1 million in the first three months of 2026 compared to $7.5 million in the same 2025 period. The Company had no non-cash transfers to other real estate owned (OREO) and repossessed assets in the first three months of 2026 compared to $49,000 of non-cash transfers in the same 2025 period.

6. Investment Securities

Securities are classified at the time of purchase as investment securities held to maturity if it is management’s intent and the Company has the ability to hold the securities until maturity. These held to maturity securities are carried on the Company’s books at cost, adjusted for amortization of premium and accretion of discount which is computed using the level yield method which approximates the effective interest method. Alternatively, securities are classified as available for sale if it is management’s intent at the time of purchase to hold the securities for an indefinite period of time and/or to use the securities as part of the Company’s asset/liability management strategy. Securities classified as available for sale include securities which may be sold to effectively manage interest rate risk exposure, prepayment risk, and other factors (such as liquidity requirements). These available for sale securities are reported at fair value with unrealized aggregate appreciation/depreciation excluded from income and credited/charged to accumulated other comprehensive income (loss) within shareholders’ equity on a net of tax basis. Realized gains or losses on securities sold are computed upon the adjusted cost of the specific securities sold.

Securities classified as trading assets are purchased with the intent of selling them in the near term (less than 30 days) to generate profits from short-term changes in price. Trading securities are reported at fair value with unrealized gains and losses included in income. The trading account, which is managed by an outside third party, is invested in U.S. Treasury and municipal securities. As of March 31, 2026 and December 31, 2025, there was $100,000 and $99,000, respectively, of cash held in the account available for future trading security purchases. This cash balance is included in cash and cash equivalents on the Consolidated Balance Sheets.

Additionally, the Company holds equity securities which are comprised of ordinary shares issued by a borrower in satisfaction of debt previously contracted. The shares do not have a readily determinable fair value. Therefore, they are reported at cost within other assets on the Consolidated Balance Sheets and are adjusted when observable price changes are identified, or an impairment charge is recognized.

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Allowance for Credit Losses – Held to Maturity Securities

The Company measures expected credit losses on held to maturity debt securities, which are comprised of U.S. government agency and mortgage-backed securities as well as municipal, corporate, and other bonds. The Company’s agency and mortgage-backed securities are issued by U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. As such, no allowance for credit losses has been established for these securities. The allowance for credit losses on the municipal, corporate, and other bonds within the held to maturity securities portfolio is calculated using the probability of default/loss given default (PD/LGD) method. The calculation is completed on a quarterly basis using the default studies provided by an industry leading source. At March 31, 2026 and December 31, 2025, the allowance for credit losses on the held to maturity securities portfolio totaled $83,000 and $90,000, respectively.

The allowance for credit losses on held to maturity debt securities is included within investment securities held to maturity on the Consolidated Balance Sheets. Changes in the allowance for credit losses are recorded within provision (recovery) for credit losses on the Consolidated Statements of Operations.

Accrued interest receivable on held to maturity debt securities totaled $491,000 and $384,000 at March 31, 2026 and December 31, 2025, respectively, and is included within accrued interest income receivable on the Consolidated Balance Sheets. This amount is excluded from the estimate of expected credit losses. Held to maturity debt securities are typically classified as non-accrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When held to maturity debt securities are placed on non-accrual status, unpaid interest credited to income is reversed. The Company had no held to maturity debt securities in non-accrual status or past due over 90 days still accruing interest at March 31, 2026 and December 31, 2025. The underlying issuers continue to make timely principal and interest payments on the securities.

Allowance for Credit Losses – Available for Sale Securities

The Company measures expected credit losses on available for sale debt securities when the Company does not intend to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. At times, based on management judgment, the Company may establish an allowance for credit losses in excess of the amount that the fair value is less than the amortized cost basis based on the specific circumstances surrounding the security. At March 31, 2026, the Company had an allowance for credit losses on the available for sale securities portfolio totaling $34,000 compared to no allowance at December 31, 2025.

The allowance for credit losses on available for sale debt securities is included within investment securities available for sale on the Consolidated Balance Sheets. Changes in the allowance for credit losses are recorded within provision (recovery) for credit losses on the Consolidated Statements of Operations. Losses are charged against the allowance when the Company believes the collectability of an available for sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on available for sale debt securities totaled $1.2 million and $977,000 at March 31, 2026 and December 31, 2025, respectively, and is included within accrued interest income receivable on the Consolidated Balance Sheets. This amount is excluded from the estimate of expected credit losses. Available for sale debt securities are typically classified as non-accrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available for sale debt securities are placed on non-accrual status, unpaid interest credited to income is reversed. It should be noted that the

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Company had one available for sale debt security in non-accrual status at March 31, 2026 totaling $500,000 with an associated allowance for credit losses of $34,000. When this corporate security was transferred to non-accrual status, interest income from investments was unfavorably impacted due to the reversal of previously recognized income. Specifically, unpaid interest on this security which was reversed during the first three months of 2026 totaled $50,000. The Company had no available for sale debt securities in non-accrual status at December 31, 2025.

The cost basis and fair values of available for sale and held to maturity investment securities are summarized as follows:

Investment securities available for sale (AFS):

March 31, 2026

Gross

Allowance

Unrealized

For Credit

Fair

Cost Basis

 

Gains

 

Losses

 

Value

(In Thousands)

U.S. Agency

5,135

—

(400)

—

4,735

U.S. Agency mortgage-backed securities

125,237

265

(9,894)

—

115,608

Municipal

15,014

(510)

—

14,589

Corporate bonds

50,981

334

(1,138)

(34)

50,143

Total

196,367

684

(11,942)

(34)

185,075

Investment securities held to maturity (HTM):

March 31, 2026

Allowance

Gross

For Credit

Carrying

Unrealized

Fair

 

Cost Basis

 

Losses

Value

 

Gains

Losses

 

Value

(In Thousands)

U.S. Agency

2,500

—

2,500

—

(230)

2,270

U.S. Agency mortgage-backed securities

41,626

—

41,626

(2,198)

39,482

Municipal

31,466

(1)

31,465

—

(1,630)

29,835

Corporate bonds and other securities

2,501

(82)

2,419

(93)

2,330

Total

78,093

(83)

78,010

(4,151)

73,917

Investment securities available for sale (AFS):


	December 31, 2025
				Gross			Gross		Allowance
				Unrealized			Unrealized		For Credit			Fair
	Cost Basis			Gains			Losses		Losses			Value

	(In Thousands)
U.S. Agency	$	5,162		$	—		$	(372)	$	—		$	4,790
U.S. Agency mortgage-backed securities		119,381			639			(9,164)		—			110,856
Municipal		10,155			140			(361)		—			9,934
Corporate bonds		51,473			387			(1,212)		—			50,648
Total	$	186,171		$	1,166		$	(11,109)	$	—		$	176,228

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Investment securities held to maturity (HTM):


	December 31, 2025
				Allowance					Gross		Gross
				For Credit		Carrying			Unrealized		Unrealized			Fair
	Cost Basis			Losses		Value			Gains		Losses			Value

	(In Thousands)
U.S. Agency	$	2,500		$	—	$	2,500		$	—	$	(216)		$	2,284
U.S. Agency mortgage-backed securities		36,592			—		36,592			210		(1,820)			34,982
Municipal		30,754			(1)		30,753			6		(1,415)			29,344
Corporate bonds and other securities		2,500			(89)		2,411			—		(105)			2,306
Total	$	72,346		$	(90)	$	72,256		$	216	$	(3,556)		$	68,916

The Company sold no AFS securities during the first quarter of 2026 and 2025.

The carrying value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits was $145.4 million at March 31, 2026 and $142.7 million at December 31, 2025. In addition, the Company has pledged $3.7 million of available for sale securities as collateral for a revolving line of credit from an unrelated financial institution.

The interest rate environment and market yields can have a significant impact on the yield earned on mortgage-backed securities (MBS). Prepayment speed assumptions are an important factor to consider when evaluating the returns on an MBS. Generally, as interest rates decline, borrowers have more incentive to refinance into a lower rate, so prepayments will rise. Conversely, as interest rates increase, prepayments will decline. When an MBS is purchased at a premium, the yield will decrease as prepayments increase and the yield will increase as prepayments decrease. As of March 31, 2026, the Company had low premium risk as the book value of our mortgage-backed securities purchased at a premium was only 100.7% of the par value.

Contractual maturities of securities, cost basis for available for sale and carrying value for held to maturity as well as fair market values, at March 31, 2026 are shown below (in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. The weighted average duration of the total investment securities portfolio at March 31, 2026 was 46.4 months and was slightly longer than the duration at December 31, 2025 which was 45.1 months. The duration remains within our internally established guideline to not exceed 60 months which we believe was appropriate to maintain proper levels of liquidity, interest rate risk, market valuation sensitivity and profitability.

Total investment securities:

March 31, 2026

Available for sale

Held to maturity

Cost Basis

Fair Value

Carrying Value

Fair Value

Within 1 year

7,761

7,729

2,406

2,390

After 1 year but within 5 years

24,980

24,245

16,139

15,753

After 5 years but within 10 years

37,997

37,088

17,809

16,279

Over 10 years

125,629

116,013

41,656

39,495

Total

196,367

185,075

78,010

73,917

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The following tables summarize the available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2026 and December 31, 2025, aggregated by security type and length of time in a continuous loss position (in thousands):

March 31, 2026

Less Than 12 Months

12 Months or Longer

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

 

Losses

 

Value

 

Losses

 

Value

 

Losses

U.S. Agency

—

4,735

(400)

4,735

(400)

U.S. Agency mortgage-backed securities

33,490

(428)

54,532

(9,466)

88,022

(9,894)

Municipal

6,021

(117)

5,339

(393)

11,360

(510)

Corporate bonds

10,804

(93)

18,271

(1,045)

29,075

(1,138)

Total

50,315

(638)

82,877

(11,304)

133,192

(11,942)


	December 31, 2025
	Less Than 12 Months						12 Months or Longer						Total
	Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
	Value			Losses			Value			Losses			Value			Losses
U.S. Agency	$	—		$	—		$	4,790		$	(372)		$	4,790		$	(372)
U.S. Agency mortgage-backed securities		9,198			(28)			60,272			(9,136)			69,470			(9,164)
Municipal		—			—			5,670			(361)			5,670			(361)
Corporate bonds		5,086			(64)			20,416			(1,148)			25,502			(1,212)
Total	$	14,284		$	(92)		$	91,148		$	(11,017)		$	105,432		$	(11,109)

At March 31, 2026 within the available for sale debt securities portfolio, the Company had 30 U.S. Agency mortgage-backed securities, seven municipal, and 21 corporate bonds that have been in a gross unrealized loss position for less than 12 months with depreciation of 1.3% from its amortized cost basis. Additionally, at March 31, 2026, within the available for sale debt securities portfolio, the Company had six U.S. Agency, 121 U.S. Agency mortgage-backed securities, 15 municipal, and 35 corporate bonds that have been in a gross unrealized loss position for greater than 12 months with depreciation of 12.0% from its amortized cost basis.

These unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields decrease, the fair value of securities will increase. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, no allowance for credit losses has been recorded for these securities. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value or mature.

The following tables present the activity in the allowance for credit losses on available for sale debt securities by major security type for the three months ended March 31, 2026 and 2025 (in thousands).


	Three months ended March 31, 2026
	Balance at December 31, 2025		Charge-Offs		Recoveries		Provision (Recovery)		Balance at March 31, 2026
Corporate bonds	$	—	$	—	$	—	$	34	$	34
Total	$	—	$	—	$	—	$	34	$	34


	Three months ended March 31, 2025
	Balance at December 31, 2024		Charge-Offs		Recoveries		Provision (Recovery)		Balance at March 31, 2025
Corporate bonds	$	360	$	—	$	—	$	640	$	1,000
Total	$	360	$	—	$	—	$	640	$	1,000

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The Company recorded a provision for credit losses on available for sale debt securities of $34,000 during the first quarter of 2026 in order to create a partial reserve for a senior debt corporate investment that was deemed to be credit impaired. The $640,000 provision for credit losses recognized during the first quarter of 2025 was the result of the establishment of a full reserve for a corporate security within the available for sale portfolio due to further credit deterioration and heightened doubts surrounding the issuer’s ability to meet its payment obligations.

The following tables present the activity in the allowance for credit losses on held to maturity debt securities by major security type for the three months ended March 31, 2026 and 2025 (in thousands).


	Three months ended March 31, 2026
	Balance at December 31, 2025		Charge-Offs		Recoveries		Provision (Recovery)		Balance at March 31, 2026
Municipal	$	1	$	—	$	—	$	—	$	1
Corporate bonds and other securities		89		—		—		(7)		82
Total	$	90	$	—	$	—	$	(7)	$	83


	Three months ended March 31, 2025
	Balance at December 31, 2024		Charge-Offs		Recoveries		Provision (Recovery)		Balance at March 31, 2025
Municipal	$	2	$	—	$	—	$	(1)	$	1
Corporate bonds and other securities		87		—		—		8		95
Total	$	89	$	—	$	—	$	7	$	96

As stated previously, the Company’s agency and mortgage-backed securities are issued by U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. As such, no allowance for credit losses has been established for these securities. The allowance for credit losses on the municipal, corporate, and other bonds within the held to maturity securities portfolio is calculated using the PD/LGD method. The calculation is completed on a quarterly basis using the default studies provided by an industry leading source.

Maintaining investment quality is a primary objective of the Company’s Investment Policy which, subject to certain limited exceptions, prohibits the purchase of any investment security below a Moody’s or Standard & Poor’s rating of A. The Company monitors the credit ratings of its debt securities on a quarterly basis. At March 31, 2026, 2.2% of the total investment securities portfolio was rated AAA as compared to 1.7% at December 31, 2025. At March 31, 2026, 78.0% of the total investment securities portfolio was rated AA or higher compared to 76.5% at December 31, 2025. Approximately 12.9% of the total investment securities portfolio was either rated below A or unrated at March 31, 2026 as compared to 13.5% at December 31, 2025.

Specifically, the following table summarizes the amortized cost of held to maturity debt securities at March 31, 2026, aggregated by credit quality indicator (in thousands).

March 31, 2026

Credit Rating

AAA/AA/A

BBB/BB/B

Unrated

Total

U.S. Agency

2,500

—

 

—

 

2,500

U.S. Agency mortgage-backed securities

41,626

—

41,626

Municipal

31,465

—

31,465

Corporate bonds and other securities

1,000

—

1,419

2,419

Total

76,591

—

1,419

78,010

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Trading Securities

The following table presents the Company’s trading securities, at estimated fair value (in thousands).


	March 31, 2026		December 31, 2025
U.S. Treasury	$	3,139	$	3,401
Municipal		4,025		3,852
Total	$	7,164	$	7,253

The following table presents the net gain (loss) on trading securities included in trading securities revenue for the three- month periods ended March 31, 2026 and 2025 (in thousands).


	Three months ended
	March 31,
	2026		2025

Net realized gain on sales	$	4	$	—
Net unrealized loss		(52)		—
Net loss on trading securities		(48)		—
Less: Portfolio expenses and management fees		15		—
Trading securities revenue	$	(63)	$	—

7. Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of any deferred fees or costs and an allowance for credit losses. Interest income is accrued on the unpaid principal balance. As of March 31, 2026 and December 31, 2025, accrued interest receivable on loans totaled $4.3 million and $4.2 million, respectively, which is reported in accrued interest income receivable on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. Loan origination and commitment fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) over the contractual life of the loan.

The segments of the Company’s loan portfolio are disaggregated into classes that allow management to monitor risk and performance. The loan classes used are consistent with the internal reports evaluated by the Company’s management and Board of Directors to monitor risk and performance within various segments of its loan portfolio. The commercial loan segment includes both the owner occupied commercial real estate loan and the commercial and industrial loan classes. The commercial real estate loan segment includes the non-owner occupied commercial real estate loan classes of retail, multi-family, and other. The residential mortgage loan segment is comprised of first lien amortizing residential mortgage loans while the consumer loan segment consists primarily of home equity loans secured by residential real estate, installment loans, and overdraft lines of credit associated with customer deposit accounts.

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The loan portfolio of the Company consisted of the following (in thousands):


	March 31, 2026		December 31, 2025
Commercial:
Commercial real estate (owner occupied) ⁽¹⁾	$	85,986	$	85,233
Commercial and industrial		140,686		144,325
Commercial real estate (non-owner occupied):
Retail ⁽¹⁾		173,662		171,530
Multi-family ⁽¹⁾		126,422		131,085
Other ⁽¹⁾		223,973		217,935
Residential mortgages ⁽¹⁾		168,083		169,814
Consumer		112,247		112,805
Loans, net of unearned income	$	1,031,059	$	1,032,727

(1)	Real estate construction loans constituted 5.6% and 5.0% of the Company’s total loans, net of unearned income as of March 31, 2026 and December 31, 2025, respectively.

Loan balances at March 31, 2026 and December 31, 2025 are net of unearned income of $477,000 and $466,000, respectively.

8. Allowance for Credit Losses – Loans

The allowance for credit losses (ACL) is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged-off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has aligned our segmentation to the quarterly Call Report. This allows the Company to use not only our data but also peer institutions’ data to supplement loss observations in determining our qualitative adjustments. Some further sub-segmenting was performed on the commercial and industrial (C&I) and commercial real estate (CRE) portfolios based on collateral type. The Company has identified the following portfolio segments:

●

Commercial Real Estate Owner Occupied

●

Commercial and Industrial

●

Commercial Real Estate Non-Owner Occupied – Retail

●

Commercial Real Estate Non-Owner Occupied – Multi-Family

●

Commercial Real Estate Non-Owner Occupied – Other

●

Residential Mortgages

●

Consumer

The Company is utilizing the static pool analysis (cohort) method for our current expected credit losses (CECL) model. The static pool analysis methodology captures loans that qualify for a segment (i.e. balance of a pool of loans with similar risk characteristics) as of a point in time to form a cohort then tracks that cohort over their remaining lives to determine their loss behavior. The remaining lifetime loss rate is then applied to current loans that qualify for the same segmentation criteria to form a remaining life expectation on current loans. Once historical cohorts are established, the loans in each individual cohort are tracked over their remaining lives for loss and recovery events. Each cohort is

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evaluated individually and as a result, a loss may be counted in several different quarterly cohort periods, as long as the specific loan existed in the population of each of those cohort periods.

The following tables summarize the roll forward of the allowance for credit losses by loan portfolio segment for the three-month periods ended March 31, 2026 and 2025 (in thousands).

Three months ended March 31, 2026

Balance at

Charge-

Provision

Balance at

December 31, 2025

Offs

Recoveries

(Recovery)

March 31, 2026

Commercial real estate (owner occupied)

319

 

—

 

(4)

 

321

Commercial and industrial

2,987

—

(54)

2,935

Commercial real estate (non-owner occupied) - retail

3,248

(241)

—

279

3,286

Commercial real estate (non-owner occupied) - multi-family

1,403

—

(146)

1,257

Other commercial real estate (non-owner occupied)

3,725

—

114

3,846

Residential mortgages

296

—

372

Consumer

1,150

(13)

1,189

Total

13,128

(254)

284

13,206


	Three months ended March 31, 2025
	Balance at		Charge-				Provision		Balance at
	December 31, 2024		Offs		Recoveries		(Recovery)		March 31, 2025
Commercial real estate (owner occupied)	$	398	$	—	$	6	$	(75)	$	329
Commercial and industrial		2,860		—		11		8		2,879
Commercial real estate (non-owner occupied) - retail		3,695		—		—		122		3,817
Commercial real estate (non-owner occupied) - multi-family		1,478		—		—		141		1,619
Other commercial real estate (non-owner occupied)		3,451		—		3		132		3,586
Residential mortgages		839		—		1		(449)		391
Consumer		1,191		(104)		19		85		1,191
Total	$	13,912	$	(104)	$	40	$	(36)	$	13,812

The Company recorded a $284,000 provision for credit losses for loans in the first quarter of 2026 as compared to a $36,000 provision for credit losses recovery in the first quarter of 2025. The increased provision for credit losses expense in 2026 reflects updates to both historical loss rates and qualitative adjustments. In addition, contraction in portfolio balances since the first quarter of 2025 contributed to the allowance for loan credit losses at March 31, 2026 being $606,000, or 4.4%, lower than the allowance for loan credit losses at March 31, 2025.

Non-performing assets from the loan portfolio, which are discussed in detail below, decreased from $8.5 million at December 31, 2025 to $8.2 million at March 31, 2026. The decrease primarily reflects the partial charge-down of a CRE loan secured by retail property. Non-performing assets from the loan portfolio were at 0.80% of total loans as of March 31, 2026. During the first three months of 2026, the Company experienced net loan charge-offs of $206,000, or 0.08% of total average loans, compared to net charge-offs of $64,000, or 0.02% of total average loans, in the first three months of 2025. In summary, the allowance for credit losses on the loan portfolio provided 165% coverage of non-performing loans and 1.28% of total loans at March 31, 2026 compared to 158% coverage of non-performing loans and 1.27% of total loans at December 31, 2025.

Historical credit loss experience is the basis for the estimation of expected credit losses. The Company applies historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already captured in the historical loss information at the balance sheet date. Our reasonable and supportable forecast adjustment is based on a blend of peer and Company data as well as management judgment. Including peer data addresses the Company’s lack of loss history in some pools of loans. For periods beyond our reasonable and supportable

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forecast period of two years, loss expectations revert to the long-run historical mean. The qualitative adjustments for current conditions are based upon the following factors:

●

changes in lending policies and procedures;

●

changes in economic conditions;

●

changes in the nature and volume of the portfolio;

●

staff experience;

●

changes in volume and severity of delinquency, non-performing loans, and classified loans;

●

changes in the quality of the Company’s loan review system;

●

trends in underlying collateral value;

●

concentration risk; and

●

external factors: competition, legal, regulatory.

These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve. Ultimately, 43% of the first quarter of 2026 general reserve represented qualitative adjustment with 57% representing quantitative reserve.

In accordance with ASC 326, Financial Instruments - Credit Losses, the Company will evaluate individual loans for expected credit losses when those loans do not share similar risk characteristics with loans evaluated using a collective (pooled) basis. In contrast to legacy accounting standards, this criterion is broader than the impairment concept and management may evaluate loans individually even when no specific expectation of collectability is in place. Loans will not be included in both collective and individual analysis. The individual analysis will establish a specific reserve for loans in scope. It should be noted that there is a review threshold of $150,000 or more for loans being subject to individual evaluation within the consumer and residential mortgage segments.

Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. The method is selected on a loan-by-loan basis, with management primarily utilizing either the discounted cash flows or the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance is made on a quarterly basis.

The need for an updated appraisal on collateral dependent loans is determined on a case-by-case basis. The useful life of an appraisal or evaluation will vary depending upon the circumstances of the property and the economic conditions in the marketplace. A new appraisal is not required if there is an existing appraisal which, along with other information, is sufficient to determine a reasonable value for the property and to support an appropriate and adequate allowance for credit losses. At a minimum, annual documented reevaluation of the property is completed by the Bank’s internal Collections and Assigned Risk Department to support the value of the property.

When reviewing an appraisal associated with an existing real estate collateral dependent transaction, the Bank’s Chief Credit Officer must determine if there have been material changes to the underlying assumptions in the appraisal which affect the original estimate of value. Some of the factors that could cause material changes to reported values include:

●

the passage of time;

●

the volatility of the local market;

●

the availability of financing;

●

natural disasters;

●

the inventory of competing properties;

●

new improvements to, or lack of maintenance of, the subject property or competing properties upon physical inspection by the Bank;

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●

changes in underlying economic and market assumptions, such as material changes in current and projected vacancy, absorption rates, capitalization rates, lease terms, rental rates, sales prices, concessions, construction overruns and delays, zoning changes, etc.; and/or

●

environmental contamination.

The value of the property is adjusted to appropriately reflect the above listed factors and the value is discounted to reflect the value impact of a forced or distressed sale, any outstanding senior liens, any outstanding unpaid real estate taxes, transfer taxes and closing costs that would occur with sale of the real estate. If the Chief Credit Officer determines that a reasonable value cannot be derived based on available information, a new appraisal is ordered. The determination of the need for a new appraisal, versus completion of a property valuation by the Bank’s Collections and Assigned Risk Department personnel, rests with the Chief Credit Officer and not the originating account officer.

The following tables summarize the loan portfolio and allowance for credit losses (in thousands).

At March 31, 2026

Commercial real estate (owner occupied)

Commercial and industrial

Commercial real estate (non-owner occupied) - retail

Commercial real estate (non-owner occupied) - multi-family

Other commercial real estate (non-owner occupied)

Residential mortgages

Consumer

Total

Loans:

Individually evaluated

2,870

2,131

171

—

2,014

204

—

7,390

Collectively evaluated

83,116

138,555

173,491

126,422

221,959

167,879

112,247

1,023,669

Total loans

85,986

140,686

173,662

126,422

223,973

168,083

112,247

1,031,059

Allowance for credit losses:

Specific reserve allocation

—

549

—

549

General reserve allocation

321

2,386

3,286

1,257

3,846

372

1,189

12,657

Total allowance for credit losses

321

2,935

3,286

1,257

3,846

372

1,189

13,206


	At December 31, 2025
	Commercial real estate (owner occupied)		Commercial and industrial		Commercial real estate (non-owner occupied) - retail			Commercial real estate (non-owner occupied) - multi-family	Other commercial real estate (non-owner occupied)		Residential mortgages		Consumer		Total
Loans:
Individually evaluated	$	2,875	$	2,148	$	415	$	—	$	2,034	$	155	$	—	$	7,627
Collectively evaluated		82,358		142,177		171,115		131,085		215,901		169,659		112,805		1,025,100
Total loans	$	85,233	$	144,325	$	171,530	$	131,085	$	217,935	$	169,814	$	112,805	$	1,032,727
Allowance for credit losses:
Specific reserve allocation	$	—	$	558	$	—	$	—	$	—	$	—	$	—	$	558
General reserve allocation		319		2,429		3,248		1,403		3,725		296		1,150		12,570
Total allowance for credit losses	$	319	$	2,987	$	3,248	$	1,403	$	3,725	$	296	$	1,150	$	13,128

The following tables present the amortized cost basis of collateral-dependent loans which were individually evaluated for a specific reserve allocation in the allowance for credit losses by class of loans (in thousands).


	Collateral Type
March 31, 2026	Real Estate		Business Assets
Commercial:
Commercial real estate (owner occupied)	$	2,769	$	101
Commercial and industrial		1,362		72
Commercial real estate (non-owner occupied):
Retail		171		—
Other		2,014		—
Residential mortgages		204		—
Total	$	6,520	$	173

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	Collateral Type
December 31, 2025	Real Estate		Business Assets
Commercial:
Commercial real estate (owner occupied)	$	2,774	$	101
Commercial and industrial		1,362		72
Commercial real estate (non-owner occupied):
Retail		415		—
Other		2,034		—
Residential mortgages		155		—
Total	$	6,740	$	173

Non-Performing Assets from the Loan Portfolio

Non-performing assets from the loan portfolio are comprised of (i) loans which are on a non-accrual basis, (ii) loans which are contractually past due 90 days or more as to interest or principal payments, and (iii) other real estate owned (OREO – real estate acquired through foreclosure and in-substance foreclosures) and repossessed assets.

Loans will be transferred to non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating the loan include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The following table presents non-accrual loans, loans past due 90 days or more still accruing interest, and OREO and repossessed assets by portfolio class (in thousands).


	At March 31, 2026
	Non-accrual with no ACL			Non-accrual with ACL			Total non-accrual			Loans past due 90 days or more still accruing		OREO and repossessed assets			Total non-performing assets
Commercial real estate (owner occupied)	$	2,870		$	—		$	2,870		$	—	$	—		$	2,870
Commercial and industrial		1,437			698			2,135			—		216			2,351
Commercial real estate (non-owner occupied) - retail		171			—			171			—		—			171
Other commercial real estate (non-owner occupied)		2,014			—			2,014			—		—			2,014
Residential mortgages		—			54			54			131		—			185
Consumer		—			631			631			—		—			631
Total	$	6,492		$	1,383		$	7,875		$	131	$	216		$	8,222


	At December 31, 2025
	Non-accrual with no ACL			Non-accrual with ACL			Total non-accrual			Loans past due 90 days or more still accruing		OREO and repossessed assets			Total non-performing assets
Commercial real estate (owner occupied)	$	2,875		$	—		$	2,875		$	—	$	—		$	2,875
Commercial and industrial		1,437			714			2,151			—		216			2,367
Commercial real estate (non-owner occupied) - retail		415			—			415			—		—			415
Other commercial real estate (non-owner occupied)		2,034			—			2,034			—		—			2,034
Residential mortgages		155			51			206			10		—			216
Consumer		—			611			611			—		—			611
Total	$	6,916		$	1,376		$	8,292		$	10	$	216		$	8,518

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public

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information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk.

Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized. The first five pass categories are aggregated, while the pass-6, special mention, substandard and doubtful categories are disaggregated to separate pools. The criticized rating categories utilized by management generally follow bank regulatory definitions. The special mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a substandard classification. Loans in the substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Loans in the doubtful category have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. All loans greater than 90 days past due, or for which any portion of the loan represents a specific allocation of the allowance for credit losses, are typically placed in substandard or doubtful.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process, which dictates that, at a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $1,000,000 within a 12-month period. Generally, consumer and residential mortgage loans are included in the pass categories unless a specific action, such as bankruptcy, delinquency, or death occurs to raise awareness of a possible credit event. The Company’s commercial relationship managers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. Risk ratings are assigned by the account officer, but require independent review and rating concurrence from the Company’s internal Loan Review Department. The Loan Review Department is an experienced, independent function which reports directly to the Board’s Audit Committee. The scope of commercial portfolio coverage by the Loan Review Department is defined and presented to the Audit Committee for approval on an annual basis. The approved scope of coverage for the year ending December 31, 2026 requires review of approximately 38% of the commercial loan portfolio.

In addition to loan monitoring by the account officer and Loan Review Department, the Company also requires presentation of all credits rated pass-6 with aggregate balances greater than $2,000,000, all credits rated special mention or substandard with aggregate balances greater than $250,000, and all credits rated doubtful with aggregate balances greater than $100,000 on an individual basis to the Company’s Loan Loss Reserve Committee on a quarterly basis. Additionally, the Asset Quality Task Force, which is a group comprised of senior level personnel, meets monthly to monitor the status of problem loans.

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The following tables present the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system.


	At March 31, 2026
													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
	Term Loans Amortized Cost Basis by Origination Year												Cost		to
	2026		2025		2024		2023		2022		Prior		Basis		Term		Total

	(In Thousands)
Commercial real estate (owner occupied)
Pass	$	2,076	$	8,874	$	10,226	$	16,339	$	5,823	$	37,968	$	705	$	—	$	82,011
Special Mention		—		—		—		—		—		506		223		—		729
Substandard		—		—		—		—		—		3,246		—		—		3,246
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	2,076	$	8,874	$	10,226	$	16,339	$	5,823	$	41,720	$	928	$	—	$	85,986
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial
Pass	$	2,098	$	23,392	$	10,116	$	13,937	$	11,827	$	27,508	$	48,014	$	—	$	136,892
Special Mention		—		—		—		—		—		—		1,240		—		1,240
Substandard		—		—		—		—		292		698		1,166		—		2,156
Doubtful		—		—		—		—		—		398		—		—		398
Total	$	2,098	$	23,392	$	10,116	$	13,937	$	12,119	$	28,604	$	50,420	$	—	$	140,686
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate (non-owner occupied) - retail
Pass	$	4,089	$	19,234	$	25,693	$	35,180	$	13,429	$	75,842	$	24	$	—	$	173,491
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		171		—		—		—		—		171
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	4,089	$	19,234	$	25,693	$	35,351	$	13,429	$	75,842	$	24	$	—	$	173,662
Current period gross charge-offs	$	—	$	—	$	—	$	241	$	—	$	—	$	—	$	—	$	241
Commercial real estate (non-owner occupied) - multi-family
Pass	$	580	$	9,740	$	24,994	$	29,490	$	11,828	$	48,802	$	24	$	—	$	125,458
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		964		—		—		964
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	580	$	9,740	$	24,994	$	29,490	$	11,828	$	49,766	$	24	$	—	$	126,422
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial real estate (non-owner occupied)
Pass	$	8,443	$	23,600	$	21,652	$	27,003	$	33,302	$	95,703	$	7,149	$	—	$	216,852
Special Mention		—		—		—		—		—		5,106		—		—		5,106
Substandard		—		—		—		—		174		1,841		—		—		2,015
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	8,443	$	23,600	$	21,652	$	27,003	$	33,476	$	102,650	$	7,149	$	—	$	223,973
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by risk rating
Pass	$	17,286	$	84,840	$	92,681	$	121,949	$	76,209	$	285,823	$	55,916	$	—	$	734,704
Special Mention		—		—		—		—		—		5,612		1,463		—		7,075
Substandard		—		—		—		171		466		6,749		1,166		—		8,552
Doubtful		—		—		—		—		—		398		—		—		398
Total	$	17,286	$	84,840	$	92,681	$	122,120	$	76,675	$	298,582	$	58,545	$	—	$	750,729
Current period gross charge-offs	$	—	$	—	$	—	$	241	$	—	$	—	$	—	$	—	$	241

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	At December 31, 2025
													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
	Term Loans Amortized Cost Basis by Origination Year												Cost		to
	2025		2024		2023		2022		2021		Prior		Basis		Term		Total

	(In Thousands)
Commercial real estate (owner occupied)
Pass	$	8,901	$	10,312	$	16,564	$	6,050	$	9,460	$	29,511	$	433	$	—	$	81,231
Special Mention		—		—		—		—		—		520		223		—		743
Substandard		—		—		—		—		2,738		521		—		—		3,259
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	8,901	$	10,312	$	16,564	$	6,050	$	12,198	$	30,552	$	656	$	—	$	85,233
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial
Pass	$	22,994	$	10,640	$	14,643	$	12,800	$	5,307	$	18,626	$	50,490	$	5,010	$	140,510
Special Mention		—		—		—		—		—		—		1,240		—		1,240
Substandard		—		—		—		307		363		304		1,178		25		2,177
Doubtful		—		—		—		—		—		398		—		—		398
Total	$	22,994	$	10,640	$	14,643	$	13,107	$	5,670	$	19,328	$	52,908	$	5,035	$	144,325
Current period gross charge-offs	$	—	$	—	$	—	$	200	$	1,396	$	178	$	—	$	—	$	1,774
Commercial real estate (non-owner occupied) - retail
Pass	$	17,984	$	26,374	$	35,435	$	14,284	$	30,707	$	46,305	$	26	$	—	$	171,115
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		415		—		—		—		—		—		415
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	17,984	$	26,374	$	35,850	$	14,284	$	30,707	$	46,305	$	26	$	—	$	171,530
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate (non-owner occupied) - multi-family
Pass	$	9,762	$	24,594	$	32,750	$	11,515	$	15,867	$	34,378	$	24	$	—	$	128,890
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		2,195		—		—		2,195
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	9,762	$	24,594	$	32,750	$	11,515	$	15,867	$	36,573	$	24	$	—	$	131,085
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial real estate (non-owner occupied)
Pass	$	23,090	$	22,060	$	27,401	$	32,037	$	40,743	$	58,392	$	6,973	$	—	$	210,696
Special Mention		—		—		—		—		—		5,205		—		—		5,205
Substandard		—		—		—		180		—		1,854		—		—		2,034
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	23,090	$	22,060	$	27,401	$	32,217	$	40,743	$	65,451	$	6,973	$	—	$	217,935
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	3,145	$	—	$	—	$	3,145
Total by risk rating
Pass	$	82,731	$	93,980	$	126,793	$	76,686	$	102,084	$	187,212	$	57,946	$	5,010	$	732,442
Special Mention		—		—		—		—		—		5,725		1,463		—		7,188
Substandard		—		—		415		487		3,101		4,874		1,178		25		10,080
Doubtful		—		—		—		—		—		398		—		—		398
Total	$	82,731	$	93,980	$	127,208	$	77,173	$	105,185	$	198,209	$	60,587	$	5,035	$	750,108
Current period gross charge-offs	$	—	$	—	$	—	$	200	$	1,396	$	3,323	$	—	$	—	$	4,919

It is generally the policy of the Bank that the outstanding balance of any residential mortgage or home equity loan that exceeds 90-days past due as to principal and/or interest is transferred to non-accrual status and an evaluation is completed to determine the fair value of the collateral less selling costs, unless the balance is minor. A charge-down is recorded for any deficiency balance determined from the collateral evaluation. It is generally the policy of the Bank that the outstanding balance of any unsecured consumer loan that exceeds 90-days past due as to principal and/or interest is charged-off. Loans past due 90 days or more and loans in non-accrual status are considered non-performing. The

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following tables present the performing and non-performing outstanding balances of the residential mortgage and consumer loan portfolio classes.


	At March 31, 2026
																			Revolving			Revolving
																			Loans			Loans
																			Amortized			Converted
	Term Loans Amortized Cost Basis by Origination Year																		Cost			to
	2026			2025			2024			2023			2022			Prior			Basis			Term			Total

	(In Thousands)
Residential mortgages
Performing	$	200		$	4,860		$	13,617		$	14,492		$	9,698		$	125,031		$	—		$	—		$	167,898
Non-performing		—			—			131			—			—			54			—			—			185
Total	$	200		$	4,860		$	13,748		$	14,492		$	9,698		$	125,085		$	—		$	—		$	168,083
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer
Performing	$	2,889		$	10,650		$	8,138		$	7,393		$	12,329		$	10,280		$	59,817		$	120		$	111,616
Non-performing		—			—			4			73			15			351			188			—			631
Total	$	2,889		$	10,650		$	8,142		$	7,466		$	12,344		$	10,631		$	60,005		$	120		$	112,247
Current period gross charge-offs	$	—		$	1		$	—		$	1		$	—		$	11		$	—		$	—		$	13
Total by payment performance
Performing	$	3,089		$	15,510		$	21,755		$	21,885		$	22,027		$	135,311		$	59,817		$	120		$	279,514
Non-performing		—			—			135			73			15			405			188			—			816
Total	$	3,089		$	15,510		$	21,890		$	21,958		$	22,042		$	135,716		$	60,005		$	120		$	280,330
Current period gross charge-offs	$	—		$	1		$	—		$	1		$	—		$	11		$	—		$	—		$	13


	At December 31, 2025
																			Revolving			Revolving
																			Loans			Loans
																			Amortized			Converted
	Term Loans Amortized Cost Basis by Origination Year																		Cost			to
	2025			2024			2023			2022			2021			Prior			Basis			Term			Total

	(In Thousands)
Residential mortgages
Performing	$	4,377		$	13,914		$	15,006		$	10,054		$	53,478		$	72,769		$	—		$	—		$	169,598
Non-performing		—			—			—			—			155			61			—			—			216
Total	$	4,377		$	13,914		$	15,006		$	10,054		$	53,633		$	72,830		$	—		$	—		$	169,814
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer
Performing	$	11,546		$	8,581		$	7,999		$	12,952		$	5,820		$	5,363		$	59,823		$	110		$	112,194
Non-performing		—			5			75			17			—			322			192			—			611
Total	$	11,546		$	8,586		$	8,074		$	12,969		$	5,820		$	5,685		$	60,015		$	110		$	112,805
Current period gross charge-offs	$	1		$	28		$	41		$	8		$	1		$	75		$	—		$	—		$	154
Total by payment performance
Performing	$	15,923		$	22,495		$	23,005		$	23,006		$	59,298		$	78,132		$	59,823		$	110		$	281,792
Non-performing		—			5			75			17			155			383			192			—			827
Total	$	15,923		$	22,500		$	23,080		$	23,023		$	59,453		$	78,515		$	60,015		$	110		$	282,619
Current period gross charge-offs	$	1		$	28		$	41		$	8		$	1		$	75		$	—		$	—		$	154

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Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans.


	At March 31, 2026

			30 – 59		60 – 89		90 or More
			Days		Days		Days		Total		Non-		Total
	Current		Past Due		Past Due		Past Due		Past Due		Accrual		Loans

	(In Thousands)
Commercial real estate (owner occupied)	$	83,116	$	—	$	—	$	—	$	—	$	2,870	$	85,986
Commercial and industrial		138,542		9		—		—		9		2,135		140,686
Commercial real estate (non-owner occupied) - retail		173,491		—		—		—		—		171		173,662
Commercial real estate (non-owner occupied) - multi-family		126,422		—		—		—		—		—		126,422
Other commercial real estate (non-owner occupied)		221,959		—		—		—		—		2,014		223,973
Residential mortgages		166,896		931		71		131		1,133		54		168,083
Consumer		110,639		917		60		—		977		631		112,247
Total	$	1,021,065	$	1,857	$	131	$	131	$	2,119	$	7,875	$	1,031,059


	At December 31, 2025

			30 – 59		60 – 89			90 or More
			Days		Days			Days		Total		Non-		Total
	Current		Past Due		Past Due			Past Due		Past Due		Accrual		Loans

	(In Thousands)
Commercial real estate (owner occupied)	$	82,358	$	—	$	—		$	—	$	—	$	2,875	$	85,233
Commercial and industrial		141,691		455		28			—		483		2,151		144,325
Commercial real estate (non-owner occupied) - retail		171,115		—		—			—		—		415		171,530
Commercial real estate (non-owner occupied) - multi-family		131,085		—		—			—		—		—		131,085
Other commercial real estate (non-owner occupied)		215,901		—		—			—		—		2,034		217,935
Residential mortgages		168,602		926		70			10		1,006		206		169,814
Consumer		111,354		728		112			—		840		611		112,805
Total	$	1,022,106	$	2,109	$	210		$	10	$	2,329	$	8,292	$	1,032,727

Loan Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Company modifies loans to borrowers experiencing financial difficulty as a result of our loss mitigation activities. A variety of solutions are offered to borrowers, including loan modifications that may result in principal forgiveness, interest rate reductions, term extensions, payment delays, or combinations thereof.

●

Principal forgiveness includes principal and accrued interest forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL.

●

Interest rate reductions include modifications where the interest rate is reduced and interest is deferred.

●

Term extensions extend the original contractual maturity date of the loan.

●

Payment delays consist of modifications where we expect to collect the contractual amounts due but result in a delay in the receipt of payments specified under the original loan terms. We generally consider payment delays to be insignificant when the delay is three months or less.

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The following tables summarize the amortized cost basis of loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2026 and 2025 (in thousands).


	Three months ended March 31, 2026
	Combination - Payment Delay and Term Extension
	Amortized Cost Basis			% of Total Class of Loans
Commercial real estate (non-owner occupied) - retail	$	171			0.10	%
Total	$	171

As of March 31, 2026, the modified loan described in the table above was in non-accrual status and payments were 39 days past due.


	Three months ended March 31, 2025
	Term Extension
	Amortized Cost Basis			% of Total Class of Loans
Residential mortgages	$	192			0.11	%
Total	$	192

At March 31, 2026 and 2025, the Company had no unfunded loan commitments associated with the loan modifications to borrowers experiencing financial difficulty.

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2026 and 2025.


Three months ended March 31, 2026
Combination - Payment Delay and Term Extension
Loan Type		Financial Effect
Commercial real estate (non-owner occupied) - retail		Provided a maturity date extension of nine months and interest due of $66,828 was deferred until maturity.


Three months ended March 31, 2025
Term Extension
Loan Type		Financial Effect
Residential mortgages		Provided maturity date extension of 230 months (approximately 19 years).

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. During the first quarter of 2026, a partial charge-down of $241,000 was recorded on the modified commercial real estate (non-owner occupied) – retail loan disclosed above. The charge-down was necessary to properly align the loan balance with the value of the collateral less estimated costs to sell. The Company had no other loans which were modified to borrowers experiencing financial difficulty which subsequently defaulted during the three months ended March 31, 2026.

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9. Borrowings and Advances from Federal Home Loan Bank

Total Federal Home Loan Bank (FHLB) borrowings and advances consisted of the following (in thousands, except percentages):


	At March 31, 2026
				Weighted
Type	Maturing	Amount		Average Rate
FHLB Advances	2026	$	14,050	4.31	%
	2027		15,100	4.23
	2028		11,745	4.46
Total FHLB advances		$	40,895	4.32	%


	At December 31, 2025
				Weighted
Type	Maturing	Amount		Average Rate
FHLB Advances	2026	$	17,770	4.26	%
	2027		15,100	4.23
	2028		11,745	4.46
Total FHLB advances		$	44,615	4.30	%

The Company has the ability to purchase federal funds under lines with two correspondent banks which have an average maturity of overnight. There were no borrowings under these lines at March 31, 2026 and December 31, 2025. As a member of the FHLB, the Bank can obtain advances on a revolving line of credit (open repo plus) which are typically overnight borrowings. The rate on open repo plus advances can change daily. There were no borrowings under the FHLB open repo plus line at March 31, 2026 and December 31, 2025.

In addition to advances on the open repo plus line, the Bank can obtain short- to long-term advances from the FHLB. The rates on the FHLB advances are fixed until the maturity of the advance. All FHLB stock along with an interest in certain residential mortgage, commercial real estate, and commercial and industrial loans with an aggregate statutory value equal to the amount of the advances are pledged as collateral to the FHLB of Pittsburgh to support these borrowings and advances on the open repo plus line.

The Parent Company has a $3 million revolving line of credit with an unrelated financial institution which can be used for general corporate purposes. Amounts outstanding under the line of credit bear interest at a rate of the daily secured overnight financing rate (SOFR) plus an unadjusted spread of 250-basis points (2.50%) plus a SOFR adjustment of 10-basis points (0.10%). The line of credit expires in May 2026 and is secured by investment securities. There were no borrowings under the line at March 31, 2026 and December 31, 2025.

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10. Accumulated Other Comprehensive Loss

The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2026 and 2025 (in thousands):


	Three months ended March 31, 2026								Three months ended March 31, 2025
	Net								Net
	Unrealized								Unrealized
	Gains and								Gains and
	Losses on				Defined				Losses on				Defined
	Investment		Interest		Benefit				Investment		Interest		Benefit
	Securities		Rate		Pension				Securities		Rate		Pension
	AFS⁽¹⁾		Hedge⁽¹⁾		Items⁽¹⁾		Total⁽¹⁾		AFS⁽¹⁾		Hedge⁽¹⁾		Items⁽¹⁾		Total⁽¹⁾
Beginning balance	$	(7,854)	$	(94)	$	599	$	(7,349)	$	(13,332)	$	(135)	$	(1,616)	$	(15,083)
Other comprehensive income (loss) before reclassifications		(1,039)		20		346		(673)		2,124		(9)		—		2,115
Amounts reclassified from accumulated other comprehensive loss		—		44		—		44		—		(16)		—		(16)
Net current period other comprehensive income (loss)		(1,039)		64		346		(629)		2,124		(25)		—		2,099
Ending balance	$	(8,893)	$	(30)	$	945	$	(7,978)	$	(11,208)	$	(160)	$	(1,616)	$	(12,984)

(1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets.

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the three months ended March 31, 2026 and 2025 (in thousands):


		Amount reclassified from accumulated
		other comprehensive loss⁽¹⁾
		For the three			For the three
Details about accumulated other		months ended			months ended			Affected line item in the
comprehensive loss components		March 31, 2026			March 31, 2025			statement of operations
Interest rate hedge
		$	56		$	(20)		Interest expense - Deposits
			(12)			4		Provision for income taxes
		$	44		$	(16)
Total reclassifications for the period		$	44		$	(16)

(1) Amounts in parentheses indicate credits.

11. Regulatory Capital

The Company is subject to various capital requirements administered by the federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. For a more detailed discussion, see the Capital Resources section of Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A).

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total, common equity tier 1, and tier 1 capital to risk-weighted assets (as defined) and tier 1 capital to average assets. Additionally, under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income (loss) in regulatory capital. As of March 31, 2026, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action promulgated by the Federal Reserve. The Company believes that no conditions or events have occurred that would

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change this conclusion as of such date. To be categorized as well capitalized, the Bank must maintain minimum total capital, common equity tier 1 capital, tier 1 capital, and tier 1 leverage ratios as set forth in the table.

At March 31, 2026

To Be Well

Minimum

Capitalized

Required

Under

For

Prompt

Capital

Corrective

Adequacy

Action

Company

Bank

Purposes

Regulations*

 

Amount

 

Ratio

 

Amount

 

Ratio

 

Ratio

 

Ratio

(In Thousands, Except Ratios)

Total Capital (To Risk Weighted Assets)

155,329

13.47

149,523

12.98

8.00

10.00

Common Equity Tier 1 Capital (To Risk Weighted Assets)

115,019

9.97

135,991

11.80

4.50

6.50

Tier 1 Capital (To Risk Weighted Assets)

115,019

9.97

135,991

11.80

6.00

8.00

Tier 1 Capital (To Average Assets)

115,019

7.97

135,991

9.45

4.00

5.00


		At December 31, 2025
														To Be Well
												Minimum		Capitalized
												Required		Under
												For		Prompt
												Capital		Corrective
												Adequacy		Action
		Company					Bank					Purposes		Regulations*
		Amount			Ratio		Amount			Ratio		Ratio		Ratio

		(In Thousands, Except Ratios)
Total Capital (To Risk Weighted Assets)		$	153,316		13.30	%	$	148,370		12.88	%	8.00	%	10.00	%
Common Equity Tier 1 Capital (To Risk Weighted Assets)			112,994		9.80			134,815		11.70		4.50		6.50
Tier 1 Capital (To Risk Weighted Assets)			112,994		9.80			134,815		11.70		6.00		8.00
Tier 1 Capital (To Average Assets)			112,994		7.79			134,815		9.32		4.00		5.00

*Applies to the Bank only.

12. Derivative Hedging Instruments

The Company can use various interest rate contracts, such as interest rate swaps, caps, and floors to help manage interest rate and market valuation risk exposure, which is incurred in normal recurrent banking activities.

The Company uses derivative instruments, primarily interest rate swaps, to manage interest rate risk and match the rates on certain assets by hedging the fair value of certain fixed rate liabilities, which converts the liabilities to variable rates and by hedging the cash flow variability associated with certain variable rate liabilities by converting the liabilities to fixed rates.

Interest Rate Swap Agreements

To accommodate the needs of our customers and support the Company’s asset/liability positioning, we may enter into interest rate swap agreements with customers and a large financial institution that specializes in these types of transactions. These arrangements involve the exchange of interest payments based on the notional amounts. The Company entered into floating rate loans and fixed rate swaps with our customers. Simultaneously, the Company entered into offsetting fixed rate swaps with this large financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay the large financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customers to effectively convert a variable rate loan to a fixed rate. Because the Company acts as an intermediary for its customers, changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations.

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These swaps are considered free-standing derivatives and are reported at fair value within other assets and other liabilities on the Consolidated Balance Sheets. Disclosures related to the fair value of the swap transactions can be found in Note 16.

The following table summarizes the interest rate swap transactions that impacted the Company’s first three months of 2026 and 2025 performance (in thousands, except percentages).

At March 31, 2026

Increase

Aggregate

Weighted

(Decrease)

Notional

Average Rate

Repricing

In Interest

Hedge Type

Amount

Received/(Paid)

Frequency

Income

Swap assets

 

N/A

 

59,471

 

6.01

Monthly

 

178

Swap liabilities

N/A

(59,471)

(6.01)

Monthly

(178)

Net exposure

—


	At March 31, 2025
							Increase
		Aggregate		Weighted			(Decrease)
		Notional		Average Rate		Repricing	In Interest
	Hedge Type	Amount		Received/(Paid)		Frequency	Income
Swap assets	N/A	$	65,800	6.68	%	Monthly	$	322
Swap liabilities	N/A		(65,800)	(6.68)		Monthly		(322)
Net exposure		$	—	—	%		$	—

Risk Participation Agreements

The Company will enter into risk participation agreements (RPAs) with the lead bank of certain commercial real estate loan arrangements. As a participating bank, the Company guarantees the performance on borrower-related interest rate swap contracts. The Company has no obligations under the RPAs unless the borrower defaults on their swap transaction with the lead bank and the swap is a liability to the borrower. In that instance, the Company agrees to pay the lead bank a pre-determined percentage of the swap’s value at the time of default. In exchange for providing the guarantee, the Company receives an upfront fee from the lead bank.

RPAs are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings with a corresponding offset within other liabilities. Disclosures related to the fair value of the RPAs can be found in Note 16. The notional amount of the risk participation agreements outstanding at March 31, 2026 and December 31, 2025 was $4.8 million and $4.9 million, respectively.

Interest Rate Hedges

The Company had interest rate swaps with a total notional value of $20 million and $70 million outstanding as of March 31, 2026 and 2025, respectively, in order to hedge the interest rate risk associated with certain floating-rate time deposit accounts. The hedge transactions allow the Company to add stability to interest expense and manage its exposure to interest rate movements. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments.

For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is reported in accumulated other comprehensive loss (within Shareholders’ Equity), net of tax, with a corresponding offset within other assets or other liabilities. Disclosures related to the fair value of the interest rate hedges can be found in Note 16. Amounts recorded in accumulated other comprehensive loss for the effective portion of changes in the fair value are subsequently reclassified to earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. The Company assesses the effectiveness of the hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. The Company did not recognize any hedge ineffectiveness in earnings during the periods ended March 31, 2026 and 2025.

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Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on certain of the Company’s variable rate time deposit accounts. During the three months ended March 31, 2026, the Company had $56,000 of losses which resulted in an increase in interest expense. This compared to $20,000 of gains during the three months ended March 31, 2025 which resulted in a decrease in interest expense. In the twelve months that follow March 31, 2026, the Company estimates that approximately $33,000 of losses will be reclassified as an increase to interest expense. This reclassified amount could differ from amounts actually recognized due to changes in interest rates. As of March 31, 2026, the maximum remaining length of time over which forecasted transactions are hedged is approximately nine months with all hedge transactions terminating by December 2026.

The following table summarizes the effect of the effective portion of the Company’s cash flow hedge accounting on accumulated other comprehensive loss for the three months ended March 31, 2026 and 2025 (in thousands).


	Three months ended March 31, 2026
Derivatives in Cash Flow Hedging Relationships	Amount Recognized in Other Comprehensive Income (Loss) on Derivatives		Location on Consolidated Statements of Operations of Reclassification from Accumulated Other Comprehensive Loss	Amount Reclassified from Accumulated Other Comprehensive Loss
Interest rate hedge	$	81	Interest expense - Deposits	$	56
Total	$	81		$	56


	Three months ended March 31, 2025
Derivatives in Cash Flow Hedging Relationships	Amount Recognized in Other Comprehensive Income (Loss) on Derivatives		Location on Consolidated Statements of Operations of Reclassification from Accumulated Other Comprehensive Loss	Amount Reclassified from Accumulated Other Comprehensive Loss
Interest rate hedge	$	(32)	Interest expense - Deposits	$	(20)
Total	$	(32)		$	(20)

The Company monitors and controls all derivative products with a comprehensive Board of Directors approved Hedging Policy. This policy permits a total maximum notional amount outstanding of $500 million for interest rate swaps, caps, and floors. All hedge transactions must be approved in advance by the Investment Asset/Liability Committee (ALCO) of the Board of Directors, unless otherwise approved, as per the terms, within the Board of Directors approved Hedging Policy. The Company had no caps or floors outstanding at March 31, 2026 and 2025.

13. Segment Reporting

ASC Topic 280, Segment Reporting, identifies operating segments as components of a company which are evaluated regularly by the chief operating decision maker in deciding how to develop strategy, allocate resources, and assess performance. The chief operating decision maker of the Company is our President and Chief Executive Officer (CEO). The CEO has authority over all divisions within the Company. The senior manager of each division reports directly to the CEO and all operating activities of the divisions, including financial results, budgets, and forecasts, are discussed with the CEO. While the CEO’s direct reports manage the day-to-day functions of each division, all strategic and major decision making actions must be approved by the CEO for all product lines and geographic areas where the Company has a presence.

While the Company monitors the revenue streams of the various products and services, operations are managed, and financial performance is evaluated on a Company-wide basis. The Company provides a variety of consumer and commercial banking and wealth management services within southwestern Pennsylvania and Hagerstown, Maryland through its branch network. Its retail and commercial banking activities include the deposit-gathering branch franchise and lending activities such as residential mortgage loans, direct consumer loans, small business loans, commercial loans, business services, and CRE loans. Its wealth management activities include personal trust products and services such as personal portfolio investment management, estate planning and administration, custodial services and pre-need trusts, as well as the sale of mutual funds, annuities, and insurance products. Additionally, institutional trust products and services

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such as 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts are offered. Wealth management activities also include the union collective investment funds (ERECT funds) which are designed to use union pension dollars in construction projects that utilize union labor.

Management has determined that the Company has one reportable segment consisting of Community Banking. While senior management within each division evaluates detailed financial data to monitor revenues and expenses, there are certain support cost centers, such as information technology, human resources, internal audit, and finance, that are not directly charged to each operating profit center making it difficult to determine a thorough and accurate measure of profitability. Further, the revenue generating divisions do not operate as separate silos but work cooperatively and together, providing referrals and cross-selling opportunities to one another. It is not feasible to split the benefit of these efforts between or among the referral division and the product/service division. Finally, the Company’s Board of Directors evaluates performance on a macro level basis and reviews financial reports that describe the consolidated operating performance of all the divisions of the Company.

The accounting policies for the Community Banking segment are the same as those of our consolidated entity. The chief operating decision maker assesses performance and decides how to allocate resources based on net income as reported on the Consolidated Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheets.

Consolidated net income is used to monitor budget versus actual results in assessing performance. The chief operating decision maker uses two primary measures to gauge performance: earnings per share (EPS) and return on average assets (ROA). EPS measures the Company’s profitability in relation to the number of common shares outstanding. ROA measures how efficiently the Company generates income based on its total assets. The chief operating decision maker also uses consolidated net income in competitive analysis by benchmarking to the Company’s peers.

14. Commitments and Contingent Liabilities

At March 31, 2026, the Company had various outstanding commitments to extend credit approximating $226.1 million along with standby letters of credit of $8.8 million, compared to commitments to extend credit of $239.9 million and standby letters of credit of $8.8 million as of December 31, 2025. The Company’s exposure to credit loss in the event of nonperformance by the other party to these commitments to extend credit and standby letters of credit is represented by their contractual amounts. The Company uses the same credit and collateral policies in making commitments and conditional obligations as for all other lending.

The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the provision (recovery) for credit losses line on the Consolidated Statements of Operations. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The Company recorded a provision for credit losses recovery on unfunded commitments for the three months ended March 31, 2026 and 2025 of $94,000 and $708,000, respectively. The carrying amount of the allowance for credit losses for the Company’s obligations related to unfunded commitments and standby letters of credit, which is reported in other liabilities on the Consolidated Balance Sheets, was $243,000 at March 31, 2026 compared to $337,000 at December 31, 2025.

Additionally, the Company is subject to a number of asserted and unasserted potential claims encountered in the normal course of business. In the opinion of the Company, neither the resolution of these claims nor the funding of these credit commitments is expected to have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

15. Pension Benefits

The Company has a noncontributory defined benefit pension plan covering certain employees who work at least 1,000 hours per year. The participants have a vested interest in their accrued benefit after five full years of service. The benefits of the plan are based upon the employee’s years of service and average annual earnings for the highest five

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consecutive calendar years during the final ten-year period of employment. Plan assets are primarily debt securities (including U.S. Treasury and Agency securities and corporate bonds), listed common stocks (including shares of AmeriServ Financial, Inc. common stock which is limited to 4% of the plan’s assets), mutual funds, and short-term cash equivalent instruments. The net periodic pension benefit for the three months ended March 31, 2026 and 2025 was as follows (in thousands):


	Three months ended
	March 31,
	2026			2025
COMPONENTS OF NET PERIODIC PENSION BENEFIT:
Service cost	$	159		$	187
Interest cost		339			366
Expected return on plan assets		(1,075)			(1,040)
Net periodic pension benefit	$	(577)		$	(487)

The service cost component of net periodic pension benefit is included in salaries and employee benefits and all other components of net periodic pension benefit are included in other expense on the Consolidated Statements of Operations.

The accrued pension obligation, which had a positive (debit) balance of $37.1 million and $36.1 million, was reclassified to other assets on the Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively. The balance of the accrued pension obligation continues to be a positive value as a result of the strong returns on plan assets and the revaluation of the obligation.

The Company implemented a soft freeze of its defined benefit pension plan to provide that non-union employees hired on or after January 1, 2013 and union employees hired on or after January 1, 2014 are not eligible to participate in the pension plan. Instead, such employees are eligible to participate in a qualified 401(k) plan. This change was made to help reduce pension costs in future periods.

16. Disclosures about Fair Value Measurements and Financial Instruments

The following disclosures establish a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three broad levels defined within this hierarchy are as follows:

Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair valued using other financial instruments, the parameters of which can be directly observed.

Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

Equity Securities Without Readily Determinable Fair Values

The Company has entered into a Registration Rights Agreement with a borrower who, upon emergence from bankruptcy, issued ordinary shares in satisfaction of debt previously contracted. The shares are not listed on any stock exchange. Since the shares do not have a readily determinable fair value, they are carried at cost and evaluated for impairment by management. In addition, if management identifies an observable price change in an orderly transaction for an identical or similar investment of the same issuer, the fair value of the equity securities will be measured and adjusted. At March 31, 2026 and December 31, 2025, the carrying value of these equity securities was $600,000 which is included in other assets on the Consolidated Balance Sheets. There were no adjustments to the carrying value of equity

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securities without readily determinable fair values during the three months ended March 31, 2026 and 2025.

Additionally, the Company received shares of restricted common stock due to the spin-off of a portion of the issuer’s business. The shares cannot be sold or transferred and are not listed on any stock exchange. The restricted shares have no carrying value on the Company’s Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025.

Assets and Liabilities Measured and Recorded on a Recurring Basis

Equity securities are reported at fair value utilizing Level 1 inputs. These securities are mutual funds held within a rabbi trust for the Company's executive deferred compensation plan. The mutual funds held are open-end funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price.

Securities classified as available for sale and trading are reported at fair value based on measurements obtained from an independent pricing service. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. It should be noted that available for sale securities are reported at fair value, net of any related allowance for credit losses.

The fair values of the simultaneous interest rate swaps, the interest rate hedges used for interest rate risk management, and the risk participation agreements associated with certain commercial real estate loans are based on an external derivative valuation model using data inputs from similar transactions as of the valuation date and classified Level 2.

The following tables present the assets and liabilities measured and reported on the Consolidated Balance Sheets on a recurring basis at their fair value as of March 31, 2026 and December 31, 2025, by level within the fair value hierarchy (in thousands).

Fair Value Measurements at March 31, 2026

Total

Level 1

Level 2

Level 3

Available for sale securities:

U.S. Agency

4,735

—

4,735

—

U.S. Agency mortgage-backed securities

115,608

—

115,608

—

Municipal

14,589

—

14,589

—

Corporate bonds

50,143

—

50,143

—

Trading securities:

U.S. Treasury

3,139

—

3,139

—

Municipal

4,025

—

4,025

—

Interest rate swap asset ⁽¹⁾

2,812

—

2,812

—

Interest rate swap liability ⁽²⁾

(2,843)

—

(2,843)

—

Interest rate hedge ⁽²⁾

(37)

—

(37)

—

Risk participation agreement ⁽²⁾

(255)

—

(255)

—

(1)	Included within other assets on the Consolidated Balance Sheets.

(2)	Included within other liabilities on the Consolidated Balance Sheets.

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	Fair Value Measurements at December 31, 2025
	Total			Level 1			Level 2			Level 3
Equity securities ⁽¹⁾	$	183		$	183		$	—		$	—
Available for sale securities:
U.S. Agency		4,790			—			4,790			—
U.S. Agency mortgage-backed securities		110,856			—			110,856			—
Municipal		9,934			—			9,934			—
Corporate bonds		50,648			—			50,648			—
Trading securities:
U.S. Treasury		3,401			—			3,401			—
Municipal		3,852			—			3,852			—
Interest rate swap asset ⁽¹⁾		2,614			—			2,614			—
Interest rate swap liability ⁽²⁾		(2,639)			—			(2,639)			—
Interest rate hedge ⁽²⁾		(118)			—			(118)			—
Risk participation agreement ⁽²⁾		(303)			—			(303)			—

(1)	Included within other assets on the Consolidated Balance Sheets.

(2)	Included within other liabilities on the Consolidated Balance Sheets.

Assets Measured and Recorded on a Non-Recurring Basis

The Company evaluates individual loans for expected credit losses when those loans do not share similar risk characteristics with loans evaluated using a collective (pooled) basis. Individually evaluated loans are reported at the fair value of the underlying collateral if the repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on observable market data which at times are discounted using unobservable inputs. At March 31, 2026 and December 31, 2025, the Company had no individually evaluated loans using the collateral method which were carried at fair value.

Other real estate owned is measured at fair value based on appraisals or Company prepared property evaluations, less estimated costs to sell at the date of foreclosure. The Bank’s internal Collections and Assigned Risk Department estimates the fair value of repossessed assets, such as vehicles and equipment, using a formula driven analysis based on automobile or other industry data, less estimated costs to sell at the time of repossession. Valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less costs to sell. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO and repossessed assets.

Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data):

Fair Value Measurements

March 31, 2026

Total

Level 1

Level 2

Level 3

Other real estate owned and repossessed assets

216

—

216


	Fair Value Measurements
December 31, 2025	Total			Level 1			Level 2			Level 3
Other real estate owned and repossessed assets	$	216		$	—		$	—		$	216

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	Quantitative Information About Level 3 Fair Value Measurements
			Valuation	Unobservable
March 31, 2026	Fair Value		Techniques	Input	Range (Wgtd Avg)
Other real estate owned and repossessed assets	$	216	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	29% to 59% (45%)
				Liquidation expenses	0% to 30% (12%)


	Quantitative Information About Level 3 Fair Value Measurements
			Valuation	Unobservable
December 31, 2025	Fair Value		Techniques	Input	Range (Wgtd Avg)
Other real estate owned and repossessed assets	$	216	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	29% to 59% (45%)
				Liquidation expenses	0% to 30% (11%)

(1)	Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses.

(2)	Appraisals may be adjusted by management for qualitative factors such as economic conditions.

Fair Value of Financial Instruments

For the Company, as for most financial institutions, the majority of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimates and present value calculations were used by the Company for the purpose of this disclosure.

Fair values have been determined by the Company using independent third-party valuations that use the best available data (Level 2) and an estimation methodology (Level 3), which the Company believes is suitable for each category of financial instruments. Management believes that cash and cash equivalents, bank owned life insurance, regulatory stock, accrued interest receivable and payable, deposits with no stated maturities, and short-term borrowings have fair values which approximate the recorded carrying values. The fair value measurements for all of these financial instruments are Level 1 measurements.

The estimated fair values based on US GAAP measurements and recorded carrying values at March 31, 2026 and December 31, 2025 for the remaining financial instruments not required to be reported at fair value were as follows:

March 31, 2026

Carrying

 

Value

Fair Value

Level 1

Level 2

Level 3

(In Thousands)

FINANCIAL ASSETS:

Investment securities – HTM

78,010

73,917

—

72,929

988

Loans held for sale

423

429

—

Loans, net of allowance for credit losses and unearned income

1,017,853

1,004,911

—

1,004,911

FINANCIAL LIABILITIES:

Deposits with stated maturities

374,938

375,125

—

375,125

All other borrowings ⁽¹⁾

67,673

67,250

—

67,250

(1)	All other borrowings include advances from Federal Home Loan Bank and subordinated debt.

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	December 31, 2025
	Carrying
	Value			Fair Value		Level 1		Level 2		Level 3

		(In Thousands)
FINANCIAL ASSETS:
Investment securities – HTM	$	72,256	$	68,916	$	—	$	67,936	$	980
Loans held for sale		241		244		244		—		—
Loans, net of allowance for credit losses and unearned income		1,019,599		1,010,336		—		—		1,010,336
FINANCIAL LIABILITIES:
Deposits with stated maturities		377,747		377,938		—		—		377,938
All other borrowings ⁽¹⁾		71,382		71,382		—		—		71,382

(1)	All other borrowings include advances from Federal Home Loan Bank and subordinated debt.

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. The Company’s remaining assets and liabilities which are not considered financial instruments have not been valued differently than has been customary under historical cost accounting.

Item 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (“MD&A”)

THREE MONTHS ENDED MARCH 31, 2026 VS. THREE MONTHS ENDED MARCH 31, 2025

…..PERFORMANCE OVERVIEW…..The following table summarizes some of the Company’s key performance indicators (in thousands, except per share and ratios).


		Three months ended			Three months ended
		March 31, 2026			March 31, 2025
Net income		$	1,794		$	1,908
Diluted earnings per share			0.11			0.12
Return on average assets (annualized)			0.50	%		0.54	%
Return on average equity (annualized)			6.03	%		7.12	%

The Company reported first quarter 2026 net income of $1,794,000, or $0.11 per diluted common share. This performance represented a $114,000, or 6.0%, decrease from the first quarter of 2025 when net income totaled $1,908,000, or $0.12 per diluted common share. Despite the lower level of net income, the Company achieved positive operating leverage in the first quarter of 2026 as total revenue increased at a faster rate than total non-interest expense. The increase in total revenue was the result of meaningful improvement in net interest income due to effective balance sheet management. Specifically, the net interest margin increased by 25-basis points from the first quarter of 2025 leading to an $897,000 increase in net interest income. Overall, 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 resulting in the unfavorable earnings performance comparison between quarters.

…..NET INTEREST INCOME AND MARGIN…..The Company’s net interest income represents the amount by which interest income on earning assets exceeds interest paid on interest bearing liabilities. Net interest income is a primary source of the Company’s earnings, and it is affected by interest rate fluctuations as well as changes in the amount and mix of earning assets and interest bearing liabilities.

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The following table compares the Company’s net interest income performance for the first quarter of 2026 to the first quarter of 2025 (in thousands, except percentages):


		Three			Three
		months ended			months ended
		March 31, 2026			March 31, 2025			Change			% Change
Interest income		$	17,502		$	17,022		$	480		2.8	%
Interest expense			6,674			7,091			(417)		(5.9)
Net interest income		$	10,828		$	9,931		$	897		9.0
Net interest margin			3.26	%		3.01	%		0.25	%	8.3

The Company's net interest income in the first quarter of 2026 increased by $897,000, or 9.0%, from the prior year's first quarter while the net interest margin of 3.26% for the first quarter of 2026 represented a 25-basis point improvement from the first quarter of 2025. The increase reflects controlled balance sheet growth, as both total earning assets and total deposits were at higher average levels due to the Company’s 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. In addition, while the U.S. Treasury yield curve was relatively flat on the short end, yields in the mid to long end of the curve were higher and demonstrated a steeper upward slope which favorably impacted earning asset yields. Management believes that the net interest margin will continue to improve throughout 2026 given the Company’s effective execution of strategy.

Total average loans in the first quarter of 2026 declined from the 2025 first quarter average 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 declined in the first quarter of 2026 compared to last year’s first quarter 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, have been 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.

Investment securities, including the available for sale, held to maturity, and trading portfolios, averaged $278.8 million for the first quarter of 2026, which was $32.1 million, or 13.0%, higher than the $246.7 million average for the first quarter of last year. Additionally, overnight short-term investments were higher by $17.0 million in the first quarter of 2026. These increases reflect the higher level of loan prepayment activity as well as the strengthening of the Company’s liquidity position 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. New investment security purchases were also necessary to replace cash flow from maturing securities to maintain appropriate balances for pledging purposes related to public funds deposits. The increased level of average investment securities along with improved yields for new securities purchased caused interest income from investment securities to increase by $438,000, or 18.3%, for the first quarter of 2026 compared to the same period in 2025. Overall, the 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 of $1.242 billion for the first quarter of 2026 were $24.5 million, or 2.0%, higher than the 2025 first quarter average. The increase reflects the Company’s successful business development efforts. Additionally, the Company’s core deposit base continued 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 its customers and community during times of economic volatility.

Total interest expense in the first quarter of 2026 decreased favorably by $417,000, or 5.9%, when compared to the first quarter of 2025. Deposit interest expense decreased by $205,000, or 3.3%, despite total average interest-bearing

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deposits growing by $39.2 million, or 3.8%, compared to the first quarter of last year. 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% in the first quarter of 2026, which was 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 when compared to the first quarter of 2025. The Company’s average utilization of overnight borrowed funds in the first quarter of 2026 was lower than the 2025 first quarter average level 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 due to the strength of the Company’s liquidity position. Therefore, advances from the FHLB averaged $42.7 million for the first quarter of 2026, which was $12.2 million, or 22.2%, lower than the $54.9 million average for the 2025 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 table that follows provides an analysis of net interest income on a tax-equivalent basis (non-GAAP) for the three-month periods ended March 31, 2026 and 2025 setting forth (i) average assets, liabilities, and shareholders’ equity, (ii) interest income earned on interest earning assets and interest expense paid on interest bearing liabilities, (iii) average yields earned on interest earning assets and average rates paid on interest bearing liabilities, (iv) the Company’s interest rate spread (the difference between the average yield earned on interest earning assets and the average rate paid on interest bearing liabilities), and (v) the Company’s net interest margin (net interest income as a percentage of average total interest earning assets). For purposes of this table, loan balances include non-accrual loans and interest income on loans includes loan fees or amortization of such fees which have been deferred. Regulatory stock is included within available for sale investment securities for this analysis. Additionally, a tax rate of 21% was used to compute tax-equivalent interest income and yields (non-GAAP). The tax equivalent adjustments to interest income on loans, municipal securities, and trading securities for the three months ended March 31, 2026 and 2025 was $48,000 and $7,000, respectively, which is reconciled to the corresponding GAAP measure at the bottom of the table. Differences between the net interest spread and margin from a GAAP basis to a tax-equivalent basis were not material.

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Three months ended March 31 (In thousands, except percentages)


		2026								2025
					Interest								Interest
		Average			Income/			Yield/		Average			Income/			Yield/
		Balance			Expense			Rate		Balance			Expense			Rate
Interest earning assets:
Loans and loans held for sale, net of unearned income		$	1,027,165		$	14,445		5.64	%	$	1,064,629		$	14,515		5.46	%
Short-term investments and bank deposits			28,846			258		3.58			11,828			114		3.84
Investment securities – AFS			195,469			2,013		4.12			182,488			1,810		3.97
Investment securities – HTM			76,095			763		4.01			64,194			590		3.68
Total investment securities			271,564			2,776		4.09			246,682			2,400		3.89
Trading securities			7,240			71		3.90			—			—		—
Total interest earning assets/interest income			1,334,815			17,550		5.30			1,323,139			17,029		5.20
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		$	1,459		1.83	%	$	341,608		$	1,852		2.20	%
Savings			124,044			30		0.10			121,122			29		0.10
Money markets			250,933			1,229		1.99			237,760			1,188		2.03
Time deposits			377,195			3,201		3.44			336,504			3,055		3.68
Total interest bearing deposits			1,076,150			5,919		2.23			1,036,994			6,124		2.40
Short-term borrowings			851			9		4.23			6,421			76		4.73
Advances from Federal Home Loan Bank			42,700			459		4.30			54,906			602		4.39
Subordinated debt			27,000			263		3.90			27,000			263		3.90
Lease liabilities			3,869			24		2.47			4,207			26		2.45
Total interest bearing liabilities/interest expense			1,150,570			6,674		2.35			1,129,528			7,091		2.54
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
Interest rate spread								2.95								2.66
Net interest income/ Net interest margin (non-GAAP)						10,876		3.26	%					9,938		3.01	%
Tax-equivalent adjustment						(48)								(7)
Net Interest Income (GAAP)					$	10,828							$	9,931

…..PROVISION FOR CREDIT LOSSES…..The Company recorded a $217,000 provision for credit losses in the first quarter of 2026 after recording a provision recovery of $97,000 in the first quarter of 2025, resulting in an increase in expense of $314,000. The provision for credit losses in the first quarter of 2026 reflected a $284,000 provision for credit losses on loans resulting from updates to both historical loss rates and qualitative adjustments. In addition, $27,000 of provision expense was recognized for the investment securities portfolio primarily related to the creation of a partial reserve for a senior debt corporate bond within the available for sale portfolio. Both of these items were partially offset by a $94,000 provision recovery for unfunded commitments due to a decline in outstanding loan commitments.

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…..NON-INTEREST INCOME…..Non-interest income for the first quarter of 2026 totaled $4.0 million and decreased by $154,000, or 3.7%, from the first quarter of 2025 performance. Factors contributing to the lower level of non-interest income for the quarter included:

●

a $110,000, or 15.9%, decrease in other income 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;

●

the Company recognized a $63,000 loss on trading securities from a $7.2 million trading account that did not exist in the first quarter of 2025; and

●

wealth management fees were relatively consistent between periods, decreasing by $4,000, or 0.1%. 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.

…..NON-INTEREST EXPENSE…..Non-interest expense for the first quarter of 2026 totaled $12.4 million and increased by $595,000, or 5.1%, from the prior year’s first quarter. Factors contributing to the higher level of non-interest expense for the quarter included:

●

a $480,000, or 70.1%, increase in professional fees due to additional expenses related to the expanded consulting relationship with SB Value Partners. Details of this amended and restated consulting agreement were provided in the Company’s Current 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;

●

a $74,000, or 12.1%, increase in other expense due primarily to the recognition of workout expenses related to a loan relationship secured by an owner-occupied CRE property; and

●

a $30,000, or 12.5%, decrease in FDIC deposit insurance expense due to a reduction in the assessment rate which more than offset an increase in the asset assessment base.

…..INCOME TAX EXPENSE…..The Company recorded income tax expense of $426,000, or an effective tax rate of 19.2%, in the first quarter of 2026. This compares to income tax expense of $478,000, or an effective tax rate of 20.0%, for the first quarter of 2025.

…..BALANCE SHEET…..The Company’s total consolidated assets were $1.5 billion at March 31, 2026, which increased by $18.8 million, or 1.3%, from the December 31, 2025 asset level. This change was related primarily to higher levels of cash and cash equivalents, investment securities, and other assets. Investment securities, including held to maturity, available for sale and trading, increased by $14.5 million, or 5.7%, as the Company’s liquidity position strengthened during the first three months of 2026 allowing more funds to be available to invest in the securities portfolio. The increased liquidity also resulted in cash and cash equivalents increasing by $3.2 million, or 6.3%. Other assets increased $2.3 million, or 5.1%, due to changes in the accrued pension obligation and prepaid expenses.

Total deposits increased by $21.8 million, or 1.7%, in the first three months of 2026. Management believes this demonstrates customer confidence as well as the strength and loyalty of the Company’s core deposit base. As of March 31, 2026, the 25 largest depositors represented 28.7% of total deposits, which increased slightly from December 31, 2025 when it was 28.5%. As of March 31, 2026 and December 31, 2025, the estimated amount of uninsured deposits was $495.1 million and $476.2 million, respectively. The estimate of uninsured deposits was done at the single account level and does not take into account total customer balances in the Bank. It should be noted that approximately 60% of these uninsured deposits relate to public funds from municipalities, government entities, and school districts which by law are required to be collateralized by investment securities or FHLB letters of credit to protect these depositor funds. FHLB term advances were reduced by $3.7 million, or 8.3%, since year-end 2025 as a result of the higher level of deposits.

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The Company’s total shareholders’ equity increased by $1.4 million, or 1.2%, during the first quarter of 2026. The increase in capital was the result of the Company’s earnings performance during the first three months of 2026 more than offsetting its common stock dividend payment to shareholders along with the positive impact on accumulated other comprehensive loss from the revaluation of the pension obligation. In addition, capital was increased as a result of the issuance of common stock under the amended and restated consulting agreement with SB Value Partners (as disclosed in the Company’s Current Report on Form 8-K filed on January 6, 2026). These increases were partially offset by the decline in the market value of the available for sale investment securities portfolio which had an unfavorable impact on accumulated other comprehensive loss.

The Bank continues to be considered well capitalized for regulatory purposes with a total risk based capital ratio of 12.98% and an asset leverage ratio of 9.45% at March 31, 2026. See the discussion of the Basel III capital requirements under the Capital Resources section below. As of March 31, 2026, the Company’s book value per common share was $7.12 and its tangible book value per common share was $6.31⁽¹⁾. In addition, the Company’s equity to asset ratio was 8.20% and its tangible common equity to tangible assets ratio was 7.34%⁽¹⁾ at March 31, 2026. The tangible common equity ratio remained unchanged from December 31, 2025.

⁽¹⁾ Non-GAAP financial information, see “Reconciliation of Non-GAAP Financial Measures” later in this MD&A.

…..LOAN QUALITY…..The following table sets forth information concerning the Company’s loan delinquency, non-performing loans, and classified loans (in thousands, except percentages):


		March 31,			December 31,			March 31,
		2026			2025			2025
Total accruing loan delinquency		$	2,119		$	2,329		$	6,003
Total non-accrual loans			7,875			8,292			13,662
Total non-performing loans⁽¹⁾			8,006			8,302			13,674
Accruing loan delinquency, as a percentage of total loans, net of unearned income			0.21	%		0.23	%		0.57	%
Non-accrual loans, as a percentage of total loans, net of unearned income			0.76			0.80			1.29
Non-performing loans, as a percentage of total loans, net of unearned income⁽¹⁾			0.78			0.80			1.29
Non-performing loans as a percentage of total assets⁽¹⁾			0.54			0.57			0.96
As a percent of average loans, net of unearned income:
Annualized net charge-offs			0.08			0.46			0.02
Annualized provision (recovery) for credit losses - loans			0.11			0.39			(0.01)
Total classified loans (loans rated substandard or doubtful)⁽²⁾		$	9,766		$	11,305		$	23,154

⁽¹⁾	Non-performing loans are comprised of loans that are on a non-accrual basis and loans that are contractually past due 90 days or more as to interest and principal payments.

⁽²⁾	Total classified loans include non-performing residential mortgage and consumer loans.

The slight decrease in accruing loan delinquency since year-end 2025 was attributable to a lower level of delinquency within the commercial & industrial loan class which was partially offset by an increase in residential mortgage and consumer loan delinquency. Non-performing loans decreased from $8.3 million at December 31, 2025 to $8.0 million at March 31, 2026 due to the partial charge-down of a non-accrual CRE loan secured by retail property. Risk rating upgrade activity and, to a lesser extent, the aforementioned charge-down contributed to the decrease in classified loans. Specifically, classified loans decreased $1.5 million, or 13.6%, from December 31, 2025 and totaled $9.8 million at March 31, 2026.

Non-performing loans represented 0.78% of total loans as of March 31, 2026. 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.

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We also continue to closely monitor the loan portfolio given the number of relatively large-sized commercial and commercial real estate loans within the portfolio. As of March 31, 2026, the 25 largest credits represented 25.8% of total loans outstanding, which increased from December 31, 2025 when it was 24.6%.

Commercial Real Estate Loan Exposure

A significant portion of the Company's loan portfolio consists of commercial real estate loans, including owner occupied properties, non-owner-occupied properties, and other commercial properties. These types of loans are generally viewed as having more risk of default than residential real estate loans and depend on cash flows from the owner’s business or the property’s tenants to service the debt. The borrower’s cash flows may be affected significantly by general economic conditions, a downturn in the local economy or in occupancy rates in the market where the property is located, any of which could increase the likelihood of default. Commercial real estate loans also typically have larger loan balances, and therefore, the deterioration of one or a few of these loans could cause a significant increase in the percentage of the Company's non-performing loans. An increase in non-performing loans could result in a loss of earnings from these loans, an increase in the provision for credit losses for loans, and an increase in charge-offs, all of which could have a material adverse effect on the Company's business, financial condition, and results of operations.

The banking regulatory agencies have expressed concerns about weaknesses in certain sectors of the current commercial real estate market. Banking regulators generally give commercial real estate lending greater scrutiny and may require banks with higher levels of commercial real estate loans to implement enhanced risk management practices, including stricter underwriting, internal controls, risk management policies, more granular reporting, and portfolio stress testing, as well as possibly higher levels of allowances for credit losses and capital levels as a result of commercial real estate lending growth and exposures. If the Company's banking regulators determine that our commercial real estate lending activities are particularly risky and are subject to such heightened scrutiny, the Company may incur significant additional costs or be required to restrict certain of our commercial real estate lending activities. Furthermore, failures in the Company's risk management policies, procedures and controls could adversely affect our ability to manage this portfolio going forward and could result in an increased rate of delinquencies in, and increased losses from, this portfolio, which could have a material adverse effect on the Company's business, financial condition, and results of operations.

There is a particular regulatory emphasis on ensuring that a subsidiary bank has appropriate levels of capital to support its non-owner occupied commercial real estate loan concentration, which for the Bank stood at 352% as of March 31, 2026. It should be noted that this ratio remained unchanged from December 31, 2025 due to the growth of the outstanding balance of non-owner occupied commercial real estate loans offsetting the growth in total regulatory capital during the first three months of 2026. Further, non-owner occupied commercial real estate loans represented 50.8% and 50.4% of total loans as of March 31, 2026 and December 31, 2025, respectively.

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The commercial real estate loan segment includes the non-owner occupied commercial real estate loan classes of retail, multi-family, and other. The following table presents the Company’s non-owner occupied commercial real estate loan portfolio by property type.

March 31, 2026

Commercial

Real Estate

Other Commercial

(Non-Owner Occupied) -

Real Estate

Retail

Multi-Family

(Non-Owner Occupied)

Total

(In thousands)

1-4 unit residential

—

23,851

Multi-family

—

110,280

—

110,280

Mixed use - apartments & retail/office

—

16,142

—

16,142

Retail strip plaza

62,731

—

62,731

Mall

3,125

—

3,125

Major shopping center with anchor tenants

30,004

—

30,004

Commercial office - urban

—

14,852

Commercial office - suburban

—

19,025

Hotel/motel

—

35,546

Retail/service shops

77,802

—

77,802

Personal care/hospital/medical office

—

24,369

Manufacturing/warehouse

—

87,022

Other

—

1,029

Land acquisition and development

—

18,279

Total

173,662

126,422

223,973

524,057

…..ALLOWANCE FOR CREDIT LOSSES…..The following table sets forth the allowance for credit losses and certain ratios for the periods ended (in thousands, except percentages):


		March 31,			December 31,			March 31,
		2026			2025			2025
Allowance for credit losses - loans		$	13,206		$	13,128		$	13,812
Allowance for credit losses - loans as a percentage of each of the following:
total loans, net of unearned income			1.28	%		1.27	%		1.30	%
total non-accrual loans			167.70			158.32			101.10
total non-performing loans			164.95			158.13			101.01
Allowance for credit losses - securities		$	117		$	90		$	1,096
Allowance for credit losses - unfunded loan commitments			243			337			257

The allowance for loan credit losses increased since December 31, 2025 by $78,000, or 0.6%, to $13.2 million at March 31, 2026. Despite the slight contraction in loan balances since year-end 2025, the allowance balance grew as a result of updates to both the historical loss rates and qualitative adjustments. Overall, the Company continues to maintain solid coverage of total loans as the allowance for loan credit losses provided 1.28% coverage of total loans at March 31, 2026. Additionally, at March 31, 2026, the allowance for loan credit losses provided 165% coverage of non-performing loans.

The allowance for credit losses on the investment securities portfolio was comprised of $34,000 on AFS securities and $83,000 on held to maturity securities as of March 31, 2026. This compares to no reserve on available for sale securities and $90,000 on held to maturity securities as of December 31, 2025. The increase in the reserve on AFS securities reflects a partial reserve established for a senior debt corporate bond that was deemed to be credit impaired during the first quarter of 2026. The decrease in the allowance for credit losses on unfunded commitments since year-end 2025 resulted primarily from a decline in outstanding loan commitments.

…..LIQUIDITY…..The Company’s liquidity position continued to strengthen during the first three months of 2026 due to loan prepayment activity as well as deposit growth. Specifically, total average deposits were $24.5 million, or 2.0%, higher when compared to the 2025 first quarter average. The increase reflects the Company’s successful business

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development efforts. The Company’s core deposit base continued to demonstrate the strength and stability that it has had for many years. As of March 31, 2026, total deposits grew by $21.8 million, or 1.7%, since December 31, 2025, demonstrating customer loyalty and confidence in AmeriServ Financial Bank. In addition to its loyal core deposit base, the Company has several other sources of liquidity, including a significant unused borrowing capacity at the Federal Home Loan Bank (FHLB), overnight lines of credit at correspondent banks and access to the Federal Reserve Discount Window. The Company does not utilize brokered deposits as a funding source. Overall, deposit volumes continue to remain at a high level. The core deposit base is adequate to fund the Company’s operations. Cash flow from maturities, prepayments and amortization of securities can also be used to help fund loan growth.

Further demonstrating the strength of the Company’s liquidity position, average short-term investments grew in the first three months of 2026 compared to the first three months of last year, increasing by $17.0 million. Advances from the FHLB averaged $42.7 million in the first quarter of 2026 which was $12.2 million, or 22.2%, lower than the $54.9 million average in the first quarter of 2025. Management continues to monitor the changing economic conditions and adjust pricing strategies accordingly which largely determines customer behavior and the level of total deposits as well as shifts within the total deposit mix. Also, diligent monitoring and management of our short-term investment position and our level of overnight borrowed funds remains a priority. Given the high cost of overnight borrowed funds, management has been effectively controlling the usage of this funding source. The Company’s utilization of overnight borrowed funds in the first quarter of 2026 was lower than the 2025 first quarter level. Total short-term borrowings averaged $851,000 for the first three months of 2026 after averaging $6.4 million for the first three months of 2025. Loan growth and prudent investment in securities are critical to achieve the best return on the normal level of earning asset cash flow that occurs each month. Due to the Company’s strengthened liquidity position, more funds were available to invest in the securities portfolio during a time when security yields improved, making purchases so far in 2026 more attractive. In addition, loan pipelines are currently at a typical level. Total average loans in the first quarter of 2026 were lower than the 2025 first quarter average by $37.5 million, or 3.5%. We strive to operate our loan to deposit ratio in a range of 80% to 100%. The Company’s 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 its customers and community during times of economic volatility. We are also strongly positioned to service the existing loan pipeline and grow the loan to deposit ratio while remaining within the guideline parameters.

Liquidity can also be analyzed by utilizing the Consolidated Statements of Cash Flows. Cash and cash equivalents increased by $3.2 million from December 31, 2025, to $54.1 million at March 31, 2026, due to $17.6 million of net cash provided by financing activities and $356,000 of net cash provided by operating activities which more than offset $14.7 million of net cash used in investing activities. Within investing activities, cash advanced for new loans originated totaled $32.7 million while cash received from loan principal payments was $34.2 million leading to a net decrease in loans of $1.5 million. Additionally, investment security purchases exceeded maturities resulting in a net increase in securities of $15.9 million. Within financing activities, total borrowings on advances from FHLB decreased by $3.7 million while total deposits increased by $21.8 million.

The holding company had $5.6 million of cash, short-term investments, and investment securities at March 31, 2026, which represented a $167,000 increase in the holding company’s cash position since December 31, 2025. Dividend payments from our subsidiary provide ongoing cash to the holding company. At March 31, 2026, our subsidiary Bank had $8.7 million of cash available for immediate dividends to the holding company under applicable regulatory formulas. Additionally, the holding company has a $3 million line of credit with an unrelated financial institution which can be used for general corporate purposes. There were no borrowings under the line at March 31, 2026. Overall, we believe that the holding company has sufficient liquidity to meet its subordinated debt interest payments and its dividend payments on its common stock.

Financial institutions must maintain liquidity to meet the day-to-day requirements of depositors and borrowers, take advantage of market opportunities, and provide a cushion against unforeseen needs. Liquidity needs can be met by either reducing assets or increasing liabilities. Sources of asset liquidity are provided by short-term investments, interest bearing deposits with banks, and federal funds sold. These assets totaled $54.1 million and $50.9 million at March 31, 2026 and December 31, 2025, respectively. Maturing and repaying loans, as well as the monthly cash flow associated with mortgage-backed securities and security maturities are other significant sources of asset liquidity for the Company.

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Liability liquidity can be met by attracting deposits with competitive rates, using repurchase agreements, buying federal funds, or utilizing the facilities of the Federal Reserve or the FHLB systems. The Company utilizes a variety of these methods of liability liquidity. Additionally, the Company’s subsidiary bank is a member of the FHLB, which provides the opportunity to obtain short-term to longer-term advances based upon the Company’s investment in certain residential mortgage, commercial real estate, and commercial and industrial loans. At March 31, 2026, the Company had $288 million of overnight borrowing availability at the FHLB, $45 million of short-term borrowing availability at the Federal Reserve Bank and $35 million of unsecured federal funds lines with correspondent banks. The Company believes it has ample liquidity available to fund outstanding loan commitments if they were fully drawn upon.

…..CAPITAL RESOURCES…..The Bank exceeds all regulatory capital ratios for each of the periods presented and is considered well capitalized. The Bank’s common equity tier 1 capital ratio was 11.80%, the tier 1 capital ratio was 11.80%, and the total capital ratio was 12.98% at March 31, 2026. The Bank’s tier 1 leverage ratio was 9.45% at March 31, 2026. We anticipate that we will maintain our strong capital ratios throughout the remainder of 2026.

The Basel III capital standards establish the minimum capital levels in addition to the well capitalized requirements under the federal banking regulations prompt corrective action. The capital rules also impose a 2.5% capital conservation buffer (CCB) on top of the three minimum risk-weighted asset ratios. Banking institutions that fail to meet the effective minimum ratios once the CCB is taken into account will be subject to constraints on capital distributions, including dividends and share repurchases, and certain discretionary executive compensation. The severity of the constraints depends on the amount of the shortfall and the institution’s “eligible retained income” (four quarter trailing net income, net of distributions and tax effects not reflected in net income). The Company and the Bank meet all capital requirements, including the CCB, and continue to be committed to maintaining strong capital levels that exceed regulatory requirements while also supporting balance sheet growth and providing a return to our shareholders.

Under the Basel III capital standards, the minimum capital ratios are:


			Minimum Capital Ratio
	Minimum		Plus Capital
	Capital Ratio		Conservation Buffer
Common equity tier 1 capital to risk-weighted assets	4.5	%	7.0	%
Tier 1 capital to risk-weighted assets	6.0		8.5
Total capital to risk-weighted assets	8.0		10.5
Tier 1 capital to total average consolidated assets	4.0		N/A

Our focus is on preserving capital to support customer lending and allow the Company to take advantage of business opportunities as they arise. We currently believe that we have sufficient capital and earnings power to continue to pay our common stock cash dividend at its current rate of $0.03 per quarter. The Company had 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. In addition, our common equity ratio was 8.20% and our tangible common equity ratio was 7.34%⁽¹⁾. At March 31, 2026, the Company had approximately 17.0 million common shares outstanding.

⁽¹⁾ Non-GAAP financial information, see “Reconciliation of Non-GAAP Financial Measures” later in this MD&A.

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…..INTEREST RATE SENSITIVITY…..The following table presents an analysis of the sensitivity inherent in the Company’s net interest income and market value of portfolio equity. The interest rate scenarios in the table compare the Company’s base forecast, which was prepared using a flat interest rate scenario, to scenarios that reflect immediate interest rate changes of 100 and 200 basis points. Each rate scenario contains unique prepayment and repricing assumptions that are applied to the Company’s existing balance sheet that was developed under the flat interest rate scenario.


Interest Rate Scenario		Variability of Net Interest Income		Change in Market Value of Portfolio Equity
200 bp increase		(1.6)	%	8.5	%
100 bp increase		(0.7)		4.9
100 bp decrease		(0.1)		(7.4)
200 bp decrease		(1.4)		(18.6)

The Company believes that its overall interest rate risk position is well controlled. The fed funds rate was unchanged from year-end 2025 as the Federal Reserve has not taken further action to change interest rates so far in 2026. As of March 31, 2026, the fed funds rate was at a targeted range of 3.50% to 3.75%.

The variability of net interest income was slightly negative in the upward rate scenarios as the Company was marginally more exposed to liabilities repricing upward to a greater extent than assets. Specifically, the cost of funds was immediately impacted when short-term national interest rates increase because certain deposit products and overnight borrowed funds move with the market. This was partially offset by the Company’s investment securities portfolio and the scheduled repricing of loans tied to an index, such as SOFR or prime. In addition, the Company has effectively utilized interest rate swaps and hedges for interest rate risk management purposes. The interest rate swaps allow our customers to lock in fixed interest rates while the Company retains the benefit of interest rates moving with the market. The interest rate hedges fix the cost of certain deposits that are indexed and move with short-term interest rates which reduces the Company’s negative variability of net interest income in a rising interest rate environment. Regarding interest bearing liabilities, the Company will continue its disciplined approach to price its core deposit accounts in a controlled but competitive manner and control the amount of overnight borrowed funds. The variability of net interest income is negative in the downward rate scenarios as the Company has more exposure to assets repricing downward to a greater extent than liabilities.

The market value of portfolio equity increases in the upward rate shocks due to the improved value of the Company’s core deposit base. Negative variability of market value of portfolio equity occurs in the downward rate shocks due to a reduced value for core deposits.

…..OFF BALANCE SHEET ARRANGEMENTS…..The Company incurs off-balance sheet risks in the normal course of business in order to meet the financing needs of its customers. These risks derive from commitments to extend credit and standby letters of credit. Such commitments and standby letters of credit involve, to varying degrees, elements of credit risk. The Company had various outstanding commitments to extend credit approximating $226.1 million and standby letters of credit of $8.8 million as of March 31, 2026. The Company’s exposure to credit loss in the event of nonperformance by the other party to these commitments to extend credit and standby letters of credit is represented by their contractual amounts. The Company uses the same credit and collateral policies in making commitments and conditional obligations as for all other lending.

…..RECONCILIATION OF NON-GAAP FINANCIAL MEASURES…..This document contains certain financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (GAAP). The tangible common equity ratio and tangible book value per share are considered to be non-GAAP measures and are calculated by dividing tangible common equity by tangible assets or shares outstanding. The Company believes that these non-GAAP financial measures provide information to investors that is useful in understanding its financial condition. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures, and, because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies.

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The following table sets forth the calculation of the Company’s tangible common equity ratio and tangible book value per share at March 31, 2026 and December 31, 2025 (in thousands, except share and ratio data):


	March 31,			December 31,
	2026			2025
Total shareholders’ equity	$	120,703		$	119,312
Less: Intangible assets		13,662			13,667
Tangible common equity		107,041			105,645
Total assets		1,472,654			1,453,813
Less: Intangible assets		13,662			13,667
Tangible assets		1,458,992			1,440,146
Tangible common equity ratio (non-GAAP)		7.34	%		7.34	%
Total shares outstanding		16,964,267			16,522,267
Tangible book value per share (non-GAAP)	$	6.31		$	6.39

…..CRITICAL ACCOUNTING POLICIES AND ESTIMATES…..The accounting and reporting policies of the Company are in accordance with Generally Accepted Accounting Principles (GAAP) and conform to general practices within the banking industry. Accounting and reporting policies for the pension liability, allowance for credit losses (related to investment securities, loans, and unfunded commitments), and derivatives (interest rate swaps/hedges) are deemed critical because they involve the use of estimates and require significant management judgments. Application of assumptions different than those used by the Company could result in material changes in the Company’s financial position or results of operation.

ACCOUNT — Pension liability

BALANCE SHEET REFERENCE — Other assets

INCOME STATEMENT REFERENCE — Salaries and employee benefits and Other expense

DESCRIPTION

Pension costs and liabilities are dependent on assumptions used in calculating such amounts. These assumptions include discount rates, benefits earned, interest costs, expected return on plan assets, mortality rates, and other factors. In accordance with GAAP, actual results that differ from the assumptions are accumulated and amortized over future periods and, therefore, generally affect recognized expense and the recorded obligation of future periods. While management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the Company’s pension obligations and future expense. Additionally, pension expense can also be impacted by settlement accounting charges if the amount of employee selected lump sum distributions exceed the total amount of service and interest component costs of the net periodic pension cost in a particular year. Our pension benefits are described further in Note 15 of the Notes to Unaudited Consolidated Financial Statements.

ACCOUNT — Allowance for Credit Losses

BALANCE SHEET REFERENCE — Investment securities, net of allowance for credit losses, Allowance for credit losses – loans, Other liabilities

INCOME STATEMENT REFERENCE — Provision (recovery) for credit losses

DESCRIPTION

The Company measures the current expected credit losses (CECL) on financial assets measured at amortized cost, including loans and held to maturity (HTM) securities, and off-balance sheet credit exposures such as unfunded commitments. In addition, ASC 326 requires credit losses on available for sale (AFS) debt securities to be presented as an allowance rather than as a write-down when management does not intend to sell or believes that it is not more likely than not, they will be required to sell the security.

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losses on the municipal, corporate, and other bonds within the held to maturity securities portfolio is calculated using the PD/LGD method. The calculation is completed on a quarterly basis using the default studies provided by an industry leading source.

The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, which considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans.

The allowance for credit losses is calculated with the objective of maintaining reserve levels believed by management to be sufficient to absorb current expected credit losses. Management’s determination of the adequacy of the allowance is based on periodic evaluations of the credit portfolio and other relevant factors. However, this quarterly evaluation is inherently subjective as it requires material estimates. This process also considers economic conditions, for a reasonable and supportable forecast period of two years. All of these factors may be susceptible to significant change. To the extent actual outcomes differ from management estimates, additional provision for credit losses may be required that would adversely impact earnings in future periods.

The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

ACCOUNT — Derivatives (interest rate swaps/hedges)

BALANCE SHEET REFERENCE — Other assets and Other liabilities

INCOME STATEMENT REFERENCE — Other income

DESCRIPTION

The Company periodically enters into derivative instruments to meet the financing, interest rate and equity risk management needs of its customers or the Bank.

The Company recognizes all derivatives as either assets or liabilities on the Consolidated Balance Sheets and measures those instruments at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and hedged item related to the hedged risk are recognized in earnings. Changes in fair value of derivatives designated and accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive loss, net of deferred taxes and are subsequently reclassified to earnings when the hedged transaction

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affects earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item.

…..FORWARD LOOKING STATEMENT…..

THE STRATEGIC FOCUS:

AmeriServ Financial is committed to improving shareholder value by striving for consistently improving financial performance; providing our customers with products and exceptional service for every step in their lifetime financial journey; cultivating an employee atmosphere rooted in trust, empowerment and growth; and serving our communities through employee involvement and a philanthropic spirit. We will strive to provide our shareholders with consistently improved financial performance; the products, services and know-how needed to forge lasting banking for life customer relationships; a work environment that challenges and rewards staff; and the manpower and financial resources needed to make a difference in the communities we serve. Our strategic initiatives will focus on these four key constituencies:

●

Shareholders — We strive to increase earnings per share; identifying and managing revenue growth and expense control; and managing risk. Our goal is to increase value for AmeriServ shareholders by growing earnings per share and narrowing the financial performance gap between AmeriServ and its peer banks. We try to return earnings to shareholders through a combination of dividends and share repurchases (though none are currently authorized) subject to maintaining sufficient capital to support balance sheet growth and economic uncertainty. We strive to educate our employee base as to the meaning/importance of earnings per share as a performance measure. Our goal is to develop a value added combination for increasing revenue and controlling expenses that is rooted in developing and offering high-quality financial products and services; an existing branch network; electronic banking capabilities with 24/7 convenience; and providing truly exceptional customer service. We expect to further leverage union affiliated revenue streams, prudently manage the Company’s risk profile to improve asset yields and increase profitability and continue to identify and implement technological opportunities and advancements to drive efficiency for the Company. Additionally, under a previously disclosed consulting agreement, we are working closely with SB Value to further improve the profitability of our Wealth Management division.

●

Customers — The Company expects to provide exceptional customer service, identifying opportunities to enhance the Banking for Life philosophy by providing products and services to meet the financial needs in every step through a customer’s life cycle, and further defining the role technology plays in anticipating and satisfying customer needs. We anticipate providing leading banking systems and solutions to improve and enhance customers’ Banking for Life experience. We will provide customers with a comprehensive offering of financial solutions including retail and business banking, home mortgages and wealth management at one location. We have upgraded and modernized select branches to be more inviting and technologically savvy to meet the needs of the next generation of AmeriServ customers without abandoning the needs of our existing demographic.

●

Staff — We are committed to developing high-performing employees, establishing and maintaining a culture of trust and effectively and efficiently managing staff attrition. We will employ a work force succession plan to manage anticipated staff attrition while identifying and grooming high performing staff members to assume positions with greater responsibility within the organization. We will employ technological systems and solutions to provide staff with the tools they need to perform more efficiently and effectively.

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●

Communities — We will continue to promote and encourage employee community involvement and leadership while fostering a positive corporate image. This will be accomplished by demonstrating our commitment to the communities we serve through assistance in providing affordable housing programs for low-to-moderate-income families; donations to qualified charities; and the time and talent contributions of AmeriServ staff to a wide-range of charitable and civic organizations.

This Form 10-Q contains various forward-looking statements and includes assumptions concerning the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates, intentions, operations, future results, and prospects, including statements that include the words “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan” or similar expressions. These forward-looking statements are based upon current expectations, are subject to risk and uncertainties and are applicable only as of the dates of such statements. Forward-looking statements involve risks, uncertainties and assumptions. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. You should not put undue reliance on any forward-looking statements. These statements speak only as of the date of this Form 10-Q, even if subsequently made available on our website or otherwise, and we undertake no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this Form 10-Q. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company provides the following cautionary statement identifying important factors (some of which are beyond the Company’s control) which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions.

Such factors include the following: (i) the effect of changing regional and national economic conditions; (ii) the effects of trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve; (iii) significant changes in interest rates and prepayment speeds; (iv) inflation, stock and bond market, and monetary fluctuations; (v) credit risks of commercial, real estate, consumer, and other lending activities; (vi) changes in federal and state banking and financial services laws and regulations and supervisory actions by such regulators, including bank failures; (vii) the presence in the Company’s market area of competitors with greater financial resources than the Company; (viii) the timely development of competitive new products and services by the Company and the acceptance of those products and services by customers and regulators (when required); (ix) the willingness of customers to substitute competitors’ products and services for those of the Company and vice versa; (x) changes in consumer spending and savings habits; (xi) unanticipated regulatory or judicial proceedings; (xii) the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; (xiii) the ability to generate future revenue growth or to control future growth in non-interest expense, including, but not limited to, those related to technological changes, including changes regarding artificial intelligence and cybersecurity, changes affecting oversight of the financial services industry, and changes intended to manage or mitigate climate and related environmental risks; (xiv) the impact of failure in, or breach of, our operational or security systems or those of third parties with whom we do business, including as a result of cyberattacks or an increase in the incidence of fraud, illegal payments, security breaches or other illegal acts impacting us or our customers; (xv) unanticipated effects to our banking platform, including risks and unanticipated costs related to a core system migration; and (xvi) other external developments which could materially impact the Company’s operational and financial performance.

The foregoing list of important factors is not exclusive, and neither such list nor any forward-looking statement takes into account the impact that any future acquisition may have on the Company and on any such forward-looking statement.

Item 3…..QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK…..

The Company manages market risk, which for the Company is primarily interest rate risk, through its asset liability management process and committee, see further discussion in the Interest Rate Sensitivity section of the MD&A.

Item 4…..CONTROLS AND PROCEDURES…..

(a) Evaluation of Disclosure Controls and Procedures. The Company’s management carried out an evaluation, under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and the operation of the Company’s disclosure controls and procedures (as such term is

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defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2026, pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, the Chief Executive Officer along with the Chief Financial Officer concluded that the Company’s disclosure controls and procedures as of March 31, 2026 are effective.

(b) Changes in Internal Controls. There have been no changes in AmeriServ Financial, Inc.’s internal controls over financial reporting (as defined in Rule 13a-15(f)) that occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II Other Information

Item 1. Legal Proceedings

The Company is subject to various types of lawsuits and claims arising in the ordinary course of business. In the opinion of management, after review and consultation with counsel, there are no material legal proceedings currently pending to which the Company or any of its subsidiaries is a party or of which any of their property is the subject.

Item 1A. Risk Factors

Not applicable

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

Rule 10b5-1 Trading Plans

During the quarter ended March 31, 2026, no officer or director of the Company adopted or terminated any contract, instruction, or written plan for the purchase or sale of securities of the Company’s common stock that is intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement as defined in 17 CFR § 229.408(c).

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Item 6. Exhibits


3.1	Amended and Restated Articles of Incorporation as amended through August 22, 2024 (Incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on August 26, 2024).
3.2	Bylaws, as amended and restated on September 19, 2024 (Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on September 23, 2024).
10.1	Amended and Restated Consulting Agreement, dated January 6, 2026, between AmeriServ Financial, Inc. and SB Value Partners, L.P. (Incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on January 7, 2026).
15.1	Report of S.R. Snodgrass, P.C. regarding unaudited interim financial statement information.
15.2	Awareness Letter of S.R. Snodgrass, P.C.
31.1	Certification pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
101	Includes the following financial and related information from AMERISERV FINANCIAL, INC.’s Quarterly Report on Form 10-Q as of and for the quarter ended March 31, 2026, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Income (unaudited), (iv) Consolidated Statements of Changes in Shareholders’ Equity (unaudited), (v) Consolidated Statements of Cash Flows (unaudited), and (vi) Notes to the Unaudited Consolidated Financial Statements.
104	The cover page from this Quarterly Report on Form 10-Q formatted in Inline XBRL.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	AmeriServ Financial, Inc.
	Registrant

Date: May 14, 2026	/s/ Jeffrey A. Stopko
	Jeffrey A. Stopko
	President and Chief Executive Officer

Date: May 14, 2026	/s/ Michael D. Lynch
	Michael D. Lynch
	Executive Vice President and Chief Financial Officer