Ameriserv Financial Inc. · NASDAQ:ASRV

Ameriserv Financial — Debt Investor Presentation (August 2021)

21 slides from Ameriserv Financial's debt investor presentation, Aug 30, 2021

  1. Slide 1: Subordinated Notes Offering

    Subordinated Notes Offering AmeriServ Financial, Inc. August 16, 2021

  2. Slide 2: Legal Disclaimer

    Legal Disclaimer 1 AmeriServ Financial, Inc. (the “Company,” the “holding company,” “we” or “our” together with its wholly-owned bank subsidiary, AmeriServ Financial Bank, the “Bank”) has prepared this confidential presentation (the “Presentation”) and is furnishing it solely for general information

  3. Slide 3: Legal Disclaimer

    Legal Disclaimer 2 (v) changes in the banking and other financial services regulatory environment; (vi) competition with national, regional and community financial institutions; (vii) failures of or interruptions in the communications and information systems on which we rely to conduct business; (vi

  4. Slide 4: Notice to Investors

    Notice to Investors 3 The notes have not been and will not be registered with the SEC under the Securities Act, or with any state or other jurisdiction. The notes are being offered and sold pursuant to an exemption from the registration requirements of the Securities Act provided by Section 4(a)(2)

  5. Slide 5: Terms of the Proposed Offering

    Terms of the Proposed Offering 4 Issuer Amount Rating Structure Issuance Type Term No Call Period Use of Proceeds Joint Placement Agents AmeriServ Financial, Inc. (the “Company”), the registered bank holding company of AmeriServ Financial Bank (the “Bank”) Up to $25.0 million Unrated Unsecured Subor

  6. Slide 6: AmeriServ Investment Opportunity

    AmeriServ Investment Opportunity 5 ▪ Longstanding community bank in western Pennsylvania − Headquartered in Johnstown, approximately 70 miles east of Pittsburgh ▪ Management team with decades of experience and long history with AmeriServ ▪ Conservative credit culture with strong asset quality and pr

  7. Slide 7: Business Highlights

    Business Highlights AmeriServ Financial, Inc. Overview ▪ Trusted banking partner since 1901 ▪ 17 retail branch locations positioned primarily across western Pennsylvania with two additional loan production offices ▪ Company: AmeriServ Financial, Inc. − Bank: AmeriServ Financial Bank − Wealth Managem

  8. Slide 8: Executive Management

    Executive Management Experienced Management Team Name Position Years at ASRV Years in Fin. Serv. Jeffrey A. Stopko President & Chief Executive Officer 33 37 Michael D. Lynch EVP, Chief Financial Officer, Chief Risk Officer & Chief Investment Officer 38 38 James Huerth President & Chief Executive Off

  9. Slide 9: AmeriServ Financial Highlights

    AmeriServ Financial Highlights Balance Sheet ($millions) 2018 2019 2020 2021 YTD Cash & Securities 229 210 227 280 Total Loans & Leases 863 888 980 994 Intangibles & Other Assets 69 73 73 87 Total Assets $1,161 $1,171 $1,280 $1,361 Deposits 949 961 1,055 1,169 Other Liabilities 114 112 120 81 Total

  10. Slide 10: Addressing the COVID-19 Pandemic

    Addressing the COVID-19 Pandemic ▪ AmeriServ’s customer-focused business model enabled the Company to successfully address the unexpected challenges resulting from the COVID-19 pandemic. ▪ AmeriServ remains committed to working with and supporting borrowers that have been hardest hit by the pandemic

  11. Slide 11: Historical Balance Sheet

    Historical Balance Sheet Total Assets Total Loans 10 Source: S&P Global Market Intelligence. Metrics are for the Company. 2Q’21 values are for the period ended June 30, 2021. $ in millions Total Equity Total Deposits $1,161 $1,171 $1,280 $1,361 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 2018Y 2019

  12. Slide 12: Loan Composition

    Loan Composition 11 Source: S&P Global Market Intelligence and Company documents. Yield data as of or for the six months ended June 30, 2021. Metrics are for the Bank. 1C&I figures include PPP loans outstanding of $59.1 million as of December 31, 2020 and $48.1 million as of June 30, 2021 As of June

  13. Slide 13: Commercial Loan Portfolio

    Commercial Loan Portfolio 12 Source: Company documents. As of June 30, 2021 Commercial Loan Portfolio Composition ($000) C&I PPP Commercial – Owner Occupied Commercial – Non-Owner Occupied Total 1-4 unit residential $ 1,323 $ - $ 100 $ 5,992 $ 7,415 Multifamily --- 75,510 75,510 Office 33,866 2,055

  14. Slide 14: Securities Portfolio

    Securities Portfolio ▪ Vast majority (76%) of the investment securities portfolio is classified as Available for Sale, with 24% as Held to Maturity ▪ Effective duration of the investment securities portfolio is 3.25 years, which increases to 4.17 years in a 200 basis point upward rate shock ▪ Approx

  15. Slide 15: Deposit Composition

    Deposit Composition 14 Source: S&P Global Market Intelligence. Deposit data as of or for the three months ended June 30, 2021. Metrics are for the Bank. As of June 30, 2021 Deposit Composition Historical Cost of Deposits Deposit Composition Trends (As of December 31 unless noted) ($000) 2017 2018 20

  16. Slide 16: Historical Earnings & Profitability

    Historical Earnings & Profitability NIM & Revenue Breakdown ROAA 15 Source: S&P Global Market Intelligence. Metrics are for the Company. 2Q’21 values are for the six months ended June 30, 2021 annualized. $ in thousands ROAE 3.31% 3.28% 3.18% 3.18% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% $- $10,000 $20,

  17. Slide 17: Historical Asset Quality

    Historical Asset Quality NPLs & NPLs to Loans 16 Source: S&P Global Market Intelligence. Metrics are for the Company. 2Q’21 values are for the three months ended June 30, 2021. 1Increase in criticized and classified since December 31, 2019 is primarily driven by COVID-related loan modifications whic

  18. Slide 18: Somerset County Branch Acquisition

    Somerset County Branch Acquisition ▪ Completed acquisition of two branches in the second quarter 2021, acquiring $43 million in deposits in Somerset County − Meyersdale branch ($36 million of deposits) will continue operations as an AmeriServ branch − Somerset branch ($7 million of deposits) was con

  19. Slide 19: Revenue Diversification Promotes Positive Operating Leverage

    Revenue Diversification Promotes Positive Operating Leverage ▪ Scalable business model; well positioned for further growth ▪ Diversification of business lines within Wealth Management: − Retirement Services, Personal Trust, Investment Management, ERECT Fund & Diversified Services − Unique ERECT Fund

  20. Slide 20: Historical Capital Ratios

    Historical Capital Ratios 19 Source: S&P Global Market Intelligence. 2Q’21 values are for the period ended June 30, 2021. As of June 30, 2021 AmeriServ Financial, Inc. Capital 13.53% 13.49% 12.93% 12.79% 11.74% 11.68% 11.20% 11.05% 9.71% 9.87% 9.29% 8.89% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

  21. Slide 21: AmeriServ Financial, Inc. Pro Forma

    AmeriServ Financial, Inc. Pro Forma 20 Source: S&P Global Market Intelligence. Pre-tax earnings based on annualized earnings for the six months ended June 30, 2021 Company Leverage & Coverage Ratios Company Debt / Equity ($000s) Q2’21 Refinance New Issuance Pro Forma Total Debt $20,735 ($20,735) $25

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