Ameriserv Financial Inc. · NASDAQ:ASRV
Ameriserv Financial — New York Society of Security Analysts presentation, November 2006
32 slides from Ameriserv Financial's conference presentation, Nov 14, 2006
Slide 1: Presentation to New York Society of Security Analysts
wy AMERI FINANCIAL Presentation to New York Society of Security Analysts November 2006
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements in this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to the financial results and plans for future business developm
Slide 3: Presentation Team
Presentation Team Allan Dennison: President & Chief Executive Officer Jeffrey Stopko: Senior Vice President & Chief Financial Officer
Slide 4: Corporate Profile
Corporate Profile Symbol: Shares: Market Cap: Ownership: ASRV (NASDAQ) 22.1 Million $100 Million Approx. 52% Institutional Approx. 48% Retail
Slide 5: Investment Highlights
Investment Highlights ¢ First phase of turnaround successfully completed * Significant balance sheet restructuring + Return to traditional community bank balance sheet + Reduced risk profile through retirement of high cost debt + Infusion of capital from quality institutional investors ¢ Regulatory
Slide 6: The AmeriServ Overview
The AmeriServ Overview! = Ranked #1 in Johnstown, PA with 24.4% market share ? = 100 Mile Lending Radius = 21 Branches OH + 364 FTE Employees ce as = Total Assets: $883 mm Tehnsto = Total Deposits: 744 = Total Trust uh a 1,702
Slide 7: Company History
Company History Founded in 1901 - As United States National Bank November 1973 - Bank unionized (United Steelworkers of America) December 1999 - $2.5 bn in assets (2—bank holding company) April 2000 - Spin-off of Three Rivers Bank ($1.0 bn in assets) - Oversized leverage and trust preferred portfoli
Slide 8: Recent Company History
Recent Company History FY 2002 - Recorded net loss of $5.2 mm with $9.3 mm in credit losses; turnaround of the Company initiated December 2002 - Craig Ford named Chairman, President & CEO January 2004 - Allan Dennison named President & CEO October 2004 / September 2005 - Two separate equity issues t
Slide 9: The AmeriServ Turnaround
The AmeriServ Turnaround « Hire new management team + Restructure commercial lending business = Close the mortgage servicing company « Significantly restructure balance sheet = Close AmeriServ Associates
Slide 10: The AmeriServ Strategy
The AmeriServ Strategy + Retail Banking = Small Business Banking + Commercial Banking
Slide 11: Improvements in Core Banking Business
Improvements in Core Banking Business « Return to core business growth * Over the last 27 months, the Company reported: - Net loan growth of 16.0% vs. 17.8% decline between Q2 2002 and Q2 2004 - Deposit growth of 10.9% vs. 4.9% decline between Q2 2002 and Q2 2004 - Trust Company’s assets increased f
Slide 12: Retail Bank
Retail Bank « Historically under managed branch system + Establish disciplined sales management process + Reconfigure delivery system + Better leverage and grow core deposits « Small business banking expansion + Focus on local market (Cambria, Somerset & Centre Counties) * Source of lower cost depos
Slide 13: Deposit Concentration
Deposit Concentration Total Deposits... -$744 Million OOCD's & IRA's ODDA, Savings & Money Mkt As of September 30, 2006 12 AMER
Slide 14: Commercial Lending
Commercial Lending « Targeted geographic market ~100 miles from Johnstown + Migrate from real estate to commercial/industrial + Enhance cross selling of Trust and cash management services + Goal is to originate $100 mm in new loans per year Pa. a
Slide 15: Loan Concentration
Loan Concentration ...$581 Million — Total Loans... .. 1 Commercial Commercial Real Estate Residential Real Estate @ Consumer & Home Equity As of September 30, 2006 Ea Hu
Slide 16: Trust Company
Trust Company = Consists of two business lines: traditional Trust services and non-traditional services (union-related) = $1.7 billion in Trust Assets (up 14.5% since 9/05) + Net income contribution of $1,184,000 YTD 2006 (up 38.2%) « Solid investment performance = Union pension funds — significant
Slide 17: Trust Company
Trust Company Net Income vs Pre-Tax Contribution Margin iNet Income --Pre-Tax Contribution Margin 2002 2003 2005 9/30/2006 40% 20% 10% + 0% e ssaeeaaiil 16
Slide 18: Equity Offerings: Overview
Equity Offerings: Overview Fourth quarter 2004 and third quarter 2005, AmeriServ placed a total of $36.1 mm in common equity through PIPE offerings + The offerings attracted a strong group of fundamental institutional investors: - Financial Stocks Capital Partners - Wellington Management Company - C
Slide 19: Equity Offerings: Use of Proceeds
Equity Offerings: Use of Proceeds Proceeds were used to support the Company’s turnaround initiatives: Retirement of Trust Preferred $22.5 mm Cash Retained at the Holding Company 3.2 mm Cash Downstreamed to the Bank (to support balance sheet restructuring) 5.0 mm Cash Downstreamed to the Trust Compan
Slide 20: Improving Earnings Performance
Improving Earnings Performance a $2,000 $0 (62,000) (64,000) 66,000) "| (5,152) (68,000) (610,000) (9,719) (9,141) 612,000) 2002 2003 2004 2005 9/30/06 = ° =
Slide 21: Improving Core Earnings Performance
Improving Core Earnings Performance Adjusted Quarterly Pre-Tax Income © $1 782 000 a ee ($2,000) ($3,000) 1Q4 2Q 3Q 4Q 1Q905 2Q 3Q 4Q 1906 2Q 3Q 1 Bre merging MSR eo inpament charg nk FL prs ea ot. [eee | 2 wi
Slide 22: Average Assets
Average Assets — (itionsy $1,200 777 1301,1461,141 $600 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q "04 "05 "06 = zi =
Slide 23: Average Securities
Average Securities — (itions) $6007 547 560 S66 $500 $400 $300 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q "04 "05 "06 = 2 =
Slide 24: Average Borrowings
Average Borrowings — nitions) $600 Borrow! 200 2001 2002 2003 1994 2Q 3Q 42 10% 2Q 3 4Q 19% 2Q 3Q Assets 404% 37.695 31.7% 349% 315% 317% 308% 264% 209% 170% IT.6W G5 57% 35% 3.1 2B
Slide 25: Average Loans
Average Loans — ¢nitions) $600 $500 $400 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q "04 "05 06 Ea a 5
Slide 26: Average Deposits
Average Deposits — (nitions $750. $650 $550 1Q'04 2Q 3Q 4Q 1Q'0 2Q 3Q 4Q 1Q'06 2Q 3Q = 3 =
Slide 27: Significantly Improved Credit Trends
Significantly Improved Credit Trends Non Performing Assets $15,000 $10,000 $5,000 12 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q "04 ‘05 "06 S :_
Slide 28: Significantly Improved Credit Trends
Significantly Improved Credit Trends Loan Loss Reserve vs Non Performing Assets MiLoan Loss Reserve Mi Non Performing Assets $14,000 $11,900 $8,000 $5,000 19% 2Q 3Q 4Q 1905 2Q 3Q 4Q 1906 29
Slide 29: Operating Expense
Operating Expense Excludes Impairment Charges & Restructuring Costs $10,500 AND? 10,013 $8,500 1Q'04 2Q 3Q 4Q 1Q5 2Q 3Q 4Q 195 2Q 3Q = 8 =
Slide 30: Capital Adequacy
Capital Adequacy Well Capitalized 18% 15.62% 14.37% 12% 6% Tier One As of September 30, 2006 29
Slide 31: Investment Highlights - Why Now?
Investment Highlights - Why Now? ¢ Pure community bank with simplified earnings model + Significant balance sheet restructuring completed + Reduced risk profile ¢ Regulatory Memorandum of Understanding (MOU) terminated * Company positioned for meaningful non-interest expense savings + Our energies a
Slide 32: AmeriServ Financial
[LOGO OF AMERISERV FINANCIAL] Presentation to New York Society of Security Analysts November 2006 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements in this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
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