Ameriserv Financial saw its profits grow by more than 60% in 2025, despite its mortgage business taking a hit.
The company reported net income of $5.6 million for the year ended Dec. 31, up 61.9% from the year prior, while mortgage banking revenue decreased by $120,000, or 39.5%, resulting from diminished residential mortgage production, according to a company press release.
JPMorgan Chase was the first major bank to report earnings in the current cycle and saw its
"Ameriserv Financial's improved financial performance in 2025 was driven by increased revenue which caused us to achieve earnings growth while absorbing a higher provision for credit losses which was needed to bring final resolution to our largest nonperforming loan," President and CEO Jeffrey Stopko said in the release Tuesday.
In the fourth quarter specifically, the company's profits totaled $1.4 million, or $0.09 per diluted common share, a $553,000, or 62.2%, improvement from the fourth quarter of 2024.
Ameriserv recorded a $724,000 provision for credit losses in the fourth quarter after posting a $1.1 million provision the same quarter a year prior, resulting in a decrease in provision expense of $334,000, or 31.6%. But the company saw an increase of $3.2 million to $4.1 million for the full year. The rise was primarily related to a $3.1 million charge-off in 2025 that was necessary to resolve Ameriserv's largest problem commercial real estate loan, the release said.
"The increase in total revenue was caused by meaningful improvement in our net interest income for both the fourth quarter and full year of 2025 because of effective balance sheet management," Stopko said.
The net interest margin increased by 34 basis points in 2025, leading to a $6.2 million increase in net interest income, which is important since this category represents approximately 70% of the company's total revenue, he added. Net interest income also rose by $1.4 million, or 14.6%, in the fourth quarter.
Along with the net interest margin performance, the increased income also reflects Ameriserv's controlled balanced sheet growth, as both total earning assets and total deposits posted higher average levels due to balance sheet management and business development strategies, according to the release.
The company also gave credit to the
Although economists expect the Fed to cut rates by just
"We will continue to diligently focus on both revenue growth and expense control to further improve the Company's operating efficiency in 2026," Stopko said.
