AMERISERV FINANCIAL INC /PA/

Previous wording

The following table compares the Company’s net interest income performance for the third quarter of 2025 to the third quarter of 2024 (in thousands, except percentages):

Current wording

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):

Previous wording

The Company's net interest income in the third quarter of 2025 increased by $2.1 million, or 23.9%, from the prior year's third quarter while the net interest margin of 3.27% for the third quarter of 2025 represented a 56-basis point improvement from the third quarter of 2024. The increase reflects controlled balance sheet growth, as both total loans and total deposits were at higher levels due to the Company’s effective 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 latter portion of 2024 favorably impacted total interest-bearing deposits and borrowings costs. In addition, while the U.S. Treasury yield curve remained modestly inverted on the short end, the mid to long end of the curve demonstrated higher yields and a steeper upward slope which favorably impacted earning asset yields. Management believes that the Company’s balance sheet is well positioned for further quarterly net interest income growth and net interest margin improvement.

Current wording

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.

Previous wording

Total average loans in the third quarter of 2025 were higher than the 2024 third quarter average by $33.4 million, or 3.2%, due to consistent new loan funding opportunities throughout 2024. However, during the third quarter of 2025, payoff activity exceeded new loan originations and resulted in total loan volumes, on an end of period basis, decreasing since June 30, 2025. Overall, total loans continue to be well above the $1.0 billion threshold, averaging $1.067 billion for the third quarter of 2025. Total loan interest income improved in the third quarter of 2025 compared to last year’s third quarter due to the increased level of average total loans outstanding, and a portion of commercial real estate (CRE) loans, that were booked at the onset of the COVID pandemic when interest rates were low, have been repricing upward during 2025. Also favorably impacting loan interest income was a higher level of loan fee income primarily due to prepayment fees collected on the increased early payoff activity experienced during the quarter. These favorable items resulted in total loan interest income improving by $1.4 million, or 9.7%, when the 2025 third quarter is compared to 2024.

Current wording

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.

Previous wording

Investment securities, including the available for sale, held to maturity, and trading portfolios, averaged $247.6 million for the third quarter of 2025, which was $9.1 million, or 3.8%, higher than the $238.5 million average for the third quarter of last year. The increase reflects the higher level of loan prepayment activity, as well as the strengthening of the Company’s liquidity position during 2025 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 investments to increase by $299,000, or 12.7%, for the third quarter of 2025 compared to the same period in 2024. Overall, the average balance of total interest earning assets increased from last year’s third quarter average by $51.8 million, or 4.1%, while total interest income increased by $1.8 million, or 10.6%, from the third quarter of 2024.

Current wording

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.

Previous wording

On the liability side of the balance sheet, total average deposits of $1.238 billion for the third quarter of 2025 were $72.8 million, or 6.3%, higher than the 2024 third 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 86.2% in the third quarter of

Current wording

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.

Previous wording

Total borrowings interest expense decreased by $379,000, or 29.0%, for the third quarter of 2025 when compared to the third quarter of 2024. The Company’s average utilization of overnight borrowed funds in the third quarter of 2025 was significantly lower than the 2024 third quarter average level by $19.5 million, or 68.0%, due to the higher level of total average deposits. The decrease in borrowings interest expense also reflects the Federal Reserve’s 2024 action to ease monetary policy by 100 basis points which had an immediate and favorable impact on the cost of overnight borrowed funds. Additionally, advances from the Federal Home Loan Bank averaged $47.7 million for the third quarter of 2025, which was $5.7 million, or 10.7%, lower than the $53.4 million average for the 2024 third quarter.

Current wording

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.

Previous wording

The table that follows provides an analysis of net interest income on a tax-equivalent basis (non-GAAP) for the three-month periods ended September 30, 2025 and 2024 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 and trading securities for the three months ended September 30, 2025 and 2024 was $19,000 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.

Current wording

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.

Previous wording

**…..NON-INTEREST INCOME…..**Non-interest income for the third quarter of 2025 totaled $4.4 million and increased by $198,000, or 4.7%, from the third quarter of 2024 performance. Factors contributing to the higher level of non-interest income for the quarter included:

Current wording

**…..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:

Previous wording

**…..NON-INTEREST EXPENSE…..**Non-interest expense for the third quarter of 2025 totaled $12.0 million and increased by $243,000, or 2.1%, from the prior year’s third quarter. Factors contributing to the higher level of non-interest expense for the quarter included:

Current wording

**…..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:

Previous wording

**…..INCOME TAX EXPENSE…..**The Company recorded income tax expense of $540,000, or an effective tax rate of 17.5%, in the third quarter of 2025. This compares to income tax expense of $237,000, or an effective tax rate of 16.7%, for the third quarter of 2024.

Current wording

**…..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.

Previous wording

**…..BALANCE SHEET…..**The Company’s total consolidated assets were $1.5 billion at September 30, 2025, which increased by $39.1 million, or 2.8%, from the December 31, 2024 asset level. This change was related primarily to higher levels of cash and cash equivalents and investment securities which were partially offset by reduced levels of loans and loans held for sale and other real estate owned (OREO) and repossessed assets. Investment securities, including held to maturity, available for sale and trading, increased by $21.7 million, or 9.9%, as the Company’s liquidity position strengthened during the first nine months of 2025 allowing more funds to be available to invest in the securities portfolio. Further, during the second quarter of 2025, the Company established an investment trading account which holds primarily U.S. Treasury and municipal (taxable and tax-exempt) securities. The increased liquidity also resulted in cash and cash equivalents increasing by $36.0 million, or 203.0%. Loans and loans held for sale decreased by $12.7 million, or 1.2%, since year-end due to payoff activity exceeding new loan originations. OREO and repossessed assets decreased $1.5 million, or 86.1%, due primarily to the sale of a foreclosed office property during the first quarter of 2025.

Current wording

**…..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.

Previous wording

Total deposits increased by $57.6 million, or 4.8%, in the first nine months of 2025. Management believes this demonstrates customer confidence as well as the strength and loyalty of the Company’s core deposit base. As of September 30, 2025, the 25 largest depositors represented 29.8% of total deposits, which increased from December 31, 2024 when it was 27.6%. As of September 30, 2025 and December 31, 2024, the estimated amount of uninsured deposits was $490.8 million and $435.7 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. Total short-term and FHLB borrowings were reduced by $22.7 million, or 32.1%, since year-end 2024 as a result of the higher level of deposits. Specifically, short-term borrowings decreased by $14.6 million, while FHLB term advances decreased $8.0 million, or 14.3%, in the first nine months of 2025.

Current wording

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.

Previous wording

The Company’s total shareholders’ equity increased by $7.3 million, or 6.8%, during the first nine months of 2025. The increase in capital was the result of the Company’s earnings performance during the first nine months of 2025 more than offsetting its common stock dividend payments to shareholders. In addition, the improved market value of the available for sale investment securities portfolio had a positive impact on accumulated other comprehensive loss.

Current wording

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.

Previous wording

The Bank continues to be considered well capitalized for regulatory purposes with a total capital ratio of 12.60% and a common equity tier 1 capital ratio of 11.35% at September 30, 2025. See the discussion of the Basel III capital requirements under the Capital Resources section below. As of September 30, 2025, the Company’s book value per common share was $6.94 and its tangible book value per common share was $6.11(1). Book value per common share increased by $0.39, or 6.0%, and tangible book value per common share increased by $0.39, or 6.8%, since September 30, 2024, due to a favorable adjustment for both the unrealized loss on available for sale securities and the Company’s defined benefit pension plan along with the Company’s improved earnings. In addition, the Company’s equity to asset ratio was 7.84% and its tangible common equity to tangible assets ratio was 6.97%(1) at September 30, 2025. The tangible common equity ratio increased by 33-basis points when compared to December 31, 2024.

Current wording

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.

Previous wording

The decrease in accruing loan delinquency since year-end 2024 was attributable to a lower level of delinquency within all segments of the loan portfolio. Specifically, two delinquent commercial loans from one borrower relationship were transferred to non-accrual status during 2025 which significantly contributed to the decrease in accruing loan delinquency. Non-performing loans increased from $10.9 million at December 31, 2024 to $14.7 million at September 30, 2025 due to the transfer of two CRE loans and three C&I loans from one borrower relationship and one additional CRE loan into non-accrual status which more than offset the charge-down of a CRE loan secured by a mixed use commercial real estate property. The aforementioned charge-down of a CRE loan contributed to the decrease in classified loans. Specifically, classified loans decreased $3.4 million, or 14.3%, from December 31, 2024 and totaled $20.2 million at September 30, 2025.

Current wording

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.

Previous wording

Non-performing loans represented 1.39% of total loans as of September 30, 2025. The Company recognized net loan charge-offs of $2.9 million, or 0.37% of total average loans, in the first nine months of 2025 compared to net loan charge-offs of $488,000, or 0.06% of total average loans, in the first nine months of 2024.

Current wording

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.

Previous wording

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 September 30, 2025, the 25 largest credits represented 24.2% of total loans outstanding, which is relatively consistent with December 31, 2024 when it was 24.0%.

Current wording

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%.

Previous wording

The banking regulatory agencies have recently expressed concerns about weaknesses in 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.

Current wording

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.

Previous wording

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 366% as of September 30, 2025. It should be noted that this ratio improved from 379% at December 31, 2024 due to the growth of total regulatory capital in the first nine months of 2025 combined with a decrease in the outstanding balance of non-owner occupied commercial real estate loans. Further, non-owner occupied commercial real estate loans represented 51.4% and 51.3% of total loans as of September 30, 2025 and December 31, 2024, respectively.

Current wording

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.

Previous wording

The allowance for loan credit losses increased since December 31, 2024 by $496,000, or 3.6%, to $14.4 million at September 30, 2025. The allowance balance grew as a result of increased specific reserve allocations on certain individually evaluated loans which were tempered by a decrease in outstanding loan balances since year-end 2024. Overall, the Company continues to maintain solid coverage of total loans as the allowance for loan credit losses provided 1.36% coverage of total loans at September 30, 2025. Additionally, the allowance for loan credit losses provided 98% coverage of non-performing loans at September 30, 2025.

Current wording

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.

Previous wording

The allowance for credit losses on the investment securities portfolio was comprised of no reserve on AFS securities and $94,000 on held to maturity securities as of September 30, 2025. This compares to $360,000 on available for sale securities and $89,000 on held to maturity securities as of December 31, 2024. The decrease reflects the charge-off of an impaired corporate security within the available for sale portfolio during the third quarter of 2025 for which a reserve was previously established. The decrease in the allowance for credit losses on unfunded commitments since year-end 2024 resulted primarily from an independent third-party validation recommendation to adjust the utilization rates used to calculate the allowance.

Current wording

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.

Previous wording

**…..LIQUIDITY…..**The Company’s liquidity position strengthened during the first nine months of 2025 due to a higher level of loan prepayment activity as well as deposit growth. Specifically, total average deposits were $69.5 million, or 6.0%, higher when compared to the 2024 first nine-month average. The increase reflects the Company’s successful business development efforts. The Company’s core deposit base continued to demonstrate the strength and stability that it has had for many years. As of September 30, 2025, total deposits grew by $57.6 million, or 4.8%, since December 31, 2024, 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.

Current wording

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.

Previous wording

Further demonstrating the strength of the Company’s liquidity position, average short-term investments grew in the first nine months of 2025 compared to the first nine months of last year by $8.0 million, or 208.9%. Advances from the FHLB averaged $51.1 million in the first nine months of 2025 which was $471,000, or 0.9%, higher than the $50.7 million average in the first nine months of 2024. Management’s strategy to increase term advances to lock in lower rates than overnight borrowings due to the inversion in the short end of the yield curve has favorably impacted net interest income. 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 so far in 2025 has been lower than the 2024 level. Total short-term borrowings averaged $6.4 million for the first nine months of 2025 after averaging $30.2 million for the first nine months of 2024. Continued 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

Current wording

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.

Previous wording

Liquidity can also be analyzed by utilizing the Consolidated Statements of Cash Flows. Cash and cash equivalents increased by $36.0 million from December 31, 2024, to $53.8 million at September 30, 2025, due to $33.3 million of net cash provided by financing activities, $1.9 million of net cash provided by operating activities, and $786,000 of net cash provided by investing activities. Within investing activities, cash advanced for new loans originated totaled $103.4 million while cash received from loan principal payments was $112.8 million leading to a net decrease in loans of $9.4 million. Within financing activities, total short-term borrowings decreased by $14.6 million, total borrowings on advances from FHLB decreased by $8.0 million while total deposits increased by $57.6 million.

Current wording

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.

Previous wording

The holding company had $4.6 million of cash, short-term investments, and investment securities at September 30, 2025, which represented a $2.3 million decrease from the holding company’s cash position since December 31, 2024. Dividend payments from our subsidiary provide ongoing cash to the holding company. At September 30, 2025, our subsidiary Bank had $3.0 million of cash available for immediate dividends to the holding company under applicable regulatory formulas. Additionally, during the first quarter of 2025, the holding company established 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 September 30, 2025. 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.

Current wording

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.

Previous wording

Financial institutions must maintain liquidity to meet 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 $53.8 million and $17.7 million at September 30, 2025 and December 31, 2024, 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.

Current wording

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.

Previous wording

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 September 30, 2025, the Company had $299 million of overnight borrowing availability at the FHLB, $43 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.

Current wording

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.

Previous wording

**…..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 11.35%, the tier 1 capital ratio was 11.35%, and the total capital ratio was 12.60% at September 30, 2025. The Bank’s tier 1 leverage ratio was 9.26% at September 30, 2025. We anticipate that we will maintain our strong capital ratios throughout the remainder of 2025.

Current wording

**…..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.

Previous wording

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

Current wording

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.

Previous wording

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 $6.94 per common share and a tangible book value of $6.11(1) per common share on September 30, 2025. In addition, our common equity ratio was 7.84% and our tangible common equity ratio was 6.97%(1). At September 30, 2025, the Company had approximately 16.5 million common shares outstanding.

Current wording

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.

Previous wording

The Company believes that its overall interest rate risk position is well controlled. The execution of $70 million of interest rate hedges during 2023, in order to fix the cost of certain deposits that are indexed and move with short-term interest rates, reduced the Company’s negative variability of net interest income in a rising interest rate environment and helped slow net interest margin compression while interest rates were rising. As of September 30, 2025, the fed funds rate was at a targeted range of 4.00% to 4.25%. The Federal Reserve took action in September 2025 to ease monetary policy and decreased the target fed funds rate by 25-basis points.

Current wording

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%.

Previous wording

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 to the interest rate hedges discussed above, the Company has effectively utilized interest rate swaps 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. 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

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

**…..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 $243.9 million and standby letters of credit of $7.8 million as of September 30, 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.

Current wording

**…..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.

Previous wording

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.

Current wording

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.

Previous wording

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 taxable 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 taxable 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.

Current wording

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

Previous wording

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

Current wording

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.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

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.