<SEC-DOCUMENT>0000707605-14-000077.txt : 20140715
<SEC-HEADER>0000707605-14-000077.hdr.sgml : 20140715
<ACCEPTANCE-DATETIME>20140715080248
ACCESSION NUMBER:		0000707605-14-000077
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20140715
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20140715
DATE AS OF CHANGE:		20140715

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERISERV FINANCIAL INC /PA/
		CENTRAL INDEX KEY:			0000707605
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				251424278
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11204
		FILM NUMBER:		14974677

	BUSINESS ADDRESS:	
		STREET 1:		MAIN & FRANKLIN STS
		STREET 2:		PO BOX 430
		CITY:			JOHNSTOWN
		STATE:			PA
		ZIP:			15907
		BUSINESS PHONE:		8145335300

	MAIL ADDRESS:	
		STREET 1:		MAIN & FRANKLIN STS
		STREET 2:		PO BOX 430
		CITY:			JOHNSTOWN
		STATE:			PA
		ZIP:			15907
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>jun148k.htm
<DESCRIPTION>PRESS RELEASE ANNOUNCING EARNING FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF 2014
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<P style="margin:0px; font-family:Courier New">SECURITIES AND EXCHANGE COMMISSION</P>
<P style="margin:0px; font-family:Courier New">Washington, D.C. &nbsp;20549</P>
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<P style="margin:0px; font-family:Courier New">Form 8-K</P>
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<P style="margin:0px; font-family:Courier New">Current Report </P>
<P style="margin:0px; font-family:Courier New">Pursuant to Section 13 or 15(d) of the Securities Act of 1934</P>
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<P style="margin:0px; font-family:Courier New">Date of Report (Date of earliest event reported) July 15<A NAME="QuickMark"></A>, 2014</P>
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<P style="margin:0px; font-family:Courier New">AMERISERV FINANCIAL, Inc.</P>
<P style="margin:0px; font-family:Courier New">(exact name of registrant as specified in its charter)</P>
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<P style="margin:0px; font-family:Courier New">Pennsylvania &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-11204 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25-1424278</P>
<P style="margin:0px; font-family:Courier New">(State or other &nbsp;&nbsp;&nbsp;&nbsp;(commission &nbsp;&nbsp;&nbsp;(I.R.S. Employer</P>
<P style="margin:0px; font-family:Courier New">jurisdiction &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;File Number) &nbsp;&nbsp;Identification No.)</P>
<P style="margin:0px; font-family:Courier New">of Incorporation)</P>
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<P style="margin:0px; font-family:Courier New">Main and Franklin Streets, Johnstown, Pa. &nbsp;15901</P>
<P style="margin:0px; font-family:Courier New">(address or principal executive offices) &nbsp;&nbsp;(Zip Code)</P>
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<P style="margin:0px; font-family:Courier New">Registrant's telephone number, including area code: 814-533-5300</P>
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<P style="margin:0px; font-family:Courier New">N/A</P>
<P style="margin:0px; font-family:Courier New" align=justify>(Former name or former address, if changed since last report.)</P>
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<P style="margin:0px; font-family:Courier New" align=justify>Check the appropriate box below if the Form 8-K filing is intended to </P>
<P style="margin:0px; font-family:Courier New" align=justify>simultaneously satisfy the filing obligation of the registrant under</P>
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<P style="margin:0px; font-family:Courier New" align=justify>( ) Written communications pursuant to Rule 425 under the Securities </P>
<P style="margin:0px; font-family:Courier New" align=justify>Act (17 CFR 230.425)</P>
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<P style="margin:0px; font-family:Courier New" align=justify>( ) Soliciting material pursuant to Rule 14a-12 under the Exchange</P>
<P style="margin:0px; font-family:Courier New" align=justify>Act (17 CFR 240.14a-12)</P>
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<P style="margin:0px; font-family:Courier New" align=justify>( ) Pre-commencement communications pursuant to Rule 14d-2(b) under the</P>
<P style="margin:0px; font-family:Courier New" align=justify>Exchange Act (17 CFR 240.14d-2(b))</P>
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<P style="margin:0px; font-family:Courier New" align=justify>( ) Pre-commencement communications pursuant to Rule 13e-4(c) under the </P>
<P style="margin:0px; font-family:Courier New" align=justify>Exchange Act (17 CFR 240.13e-4c))</P>
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<P style="margin:0px; text-indent:280px; font-family:Courier New" align=justify>Form 8-K</P>
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<P style="margin:0px; font-family:Courier New" align=justify>Item 2.02 Results of operation and financial condition.</P>
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<P style="margin:0px; text-indent:48px; font-family:Courier New" align=justify>AMERISERV FINANCIAL Inc. (the &quot;Registrant&quot;) announced second quarter and first six months 2014 results through June 30, 2014. &nbsp;For a more detailed description of the announcement see the press release attached as Exhibit #99.1. &nbsp;</P>
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<P style="margin:0px; font-family:Courier New" align=justify>Exhibits</P>
<P style="margin:0px; font-family:Courier New" align=justify>--------</P>
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<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; text-indent:-144px; font-family:Courier New" align=justify>Exhibit 99.1</P>
<P style="margin:0px; padding-left:144px; font-family:Courier New" align=justify>Press release dated July 15, 2014, announcing the second quarter and first six months 2014 results through June 30, 2014. </P>
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<P style="margin:0px; text-indent:48px; font-family:Courier New" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
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<P style="margin:0px; font-family:Courier New" align=justify>AMERISERV FINANCIAL, Inc.</P>
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<P style="margin:0px; font-family:Courier New" align=justify>By /s/Jeffrey A. Stopko</P>
<P style="margin:0px; font-family:Courier New" align=justify>Jeffrey A. Stopko</P>
<P style="margin:0px; font-family:Courier New" align=justify>Executive Vice President</P>
<P style="margin:0px; font-family:Courier New" align=justify>&amp; CFO</P>
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<P style="margin:0px; font-family:Courier New" align=justify>Date: July 15, 2014 </P>
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<P style="line-height:14pt; margin:0px; font-size:12pt">Exhibit 99.1</P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px"><B>AMERISERV FINANCIAL REPORTS EARNINGS FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF 2014 &nbsp;&nbsp;</B></P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px" align=justify>JOHNSTOWN, PA &#150; AmeriServ Financial, Inc. (NASDAQ: ASRV) reported second quarter 2014 net income available to common shareholders of $927,000, or $0.05 per diluted common share. &nbsp;This compares to net income available to common shareholders of $1,018,000, or $0.05 per diluted common share, reported for the second quarter of 2013. &nbsp;For the six month period ended June 30, 2014, the Company reported net income available to common shareholders of $1,804,000, or $0.10 per diluted share. &nbsp;When compared to the first six months of 2013, net income available to common shareholders was down by $218,000 or 10.8% while diluted earnings per share declined by a lesser amount of $0.01, or 9.1%, as total shares outstanding were lower in 2014 due to the success of the Company&#146;s common stock repurchase program which was completed in the second quarter of 2013. &nbsp;The following table highlights the Company&#146;s financial performance for both the three and six month periods ended June 30, 2014 and 2013: </P>
<P style="margin:0px; padding-left:48px; padding-right:19.2px" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR style="font-size:0"><TD width=187.467></TD><TD width=120.267></TD><TD width=115.533></TD><TD width=17.733></TD><TD width=137.467></TD><TD width=143></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=187.467><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=120.267><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>Second Quarter 2014</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.533><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>Second Quarter 2013</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=17.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=137.467><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>Six Months Ended</P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=center>June 30, 2014</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=143><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>Six Months Ended</P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=center>June 30, 2013 </P>
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<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=187.467><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=120.267><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.533><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=17.733><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=137.467><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=143><P>&nbsp;</P></TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=187.467><P style="line-height:11pt; margin:0px; font-size:9pt">Net income </P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=120.267><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$979,000 </P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.533><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,070,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=17.733><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=137.467><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,909,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=143><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$2,126,000</P>
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<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=187.467><P style="line-height:11pt; margin:0px; font-size:9pt">Net income available to common </P>
<P style="line-height:11pt; margin:0px; font-size:9pt">shareholders</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=120.267><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$927,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.533><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,018,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=17.733><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=137.467><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,804,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=143><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$2,022,000</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=187.467><P style="line-height:11pt; margin:0px; font-size:9pt">Diluted earnings per share</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=120.267><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$ 0.05</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.533><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$ 0.05</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=17.733><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=137.467><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$ 0.10</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=143><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.11</P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" align=justify>Glenn L. Wilson, President and Chief Executive Officer, commented on the second quarter 2014 financial results: &#147;Our strategic focus on growing our loan portfolio while maintaining strong asset quality continues to show favorable results. &nbsp;Over the past twelve months, we have increased total loans by $53 million, or 7.10%, to a record level of $805 million. &nbsp;This has been an important factor contributing to the growth in net interest income that AmeriServ Financial has achieved so far in 2014. &nbsp;Additionally, our asset quality metrics continue to be outstanding as non-performing assets are only 0.56% of total loans and our allowance for loan losses provided 256% coverage of non-performing loans at June 30, 2014.&#148; &nbsp;</P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px" align=justify>The Company&#146;s net interest income in the second quarter of 2014 increased by $363,000, or 4.5%, from the prior year&#146;s second quarter and for the first six months of 2014 increased by $846,000, or 5.3%, when compared to the first six months of 2013. &nbsp;The Company&#146;s net interest margin of 3.52% for the first six months of 2014 was two basis points lower than the net interest margin of 3.54% for the first half of 2013. &nbsp;There was a similar net interest margin decline of three basis points when the second quarter of 2014 is compared to the prior year second quarter. &nbsp;We believe that this performance demonstrates that the recent pace of net interest margin contraction has slowed from the pace of margin decline experienced over the previous two years. &nbsp;The Company has been able to mitigate this net interest margin pressure and to increase net interest income by both growing its earning assets and reducing its cost of funds. Specifically, the earning asset growth has occurred in the loan portfolio as total loans averaged $791 million in the first half of 2014 which is $63 million, or 8.7%, higher than the $728 million average for the first half of 2013. &nbsp;This loan growth reflects the successful results of the Company&#146;s more intensive sales calling efforts, with an emphasis on generating commercial loans and owner occupied commercial real estate loans, which qualify as Small Business Lending Fund (SBLF) loans, particularly through its loan production offices. &nbsp;As a result of this growth in SBLF qualified loans, the Company has locked in the lowest preferred dividend rate available under the program of 1% until the first quarter of 2016. &nbsp;Interest income in 2014 has also benefitted from reduced premium amortization on mortgage backed securities due to slower mortgage prepayment speeds. &nbsp;Total interest expense for the first six months of 2014 declined by $97,000 from the first six months of 2013 due to the Company&#146;s proactive efforts to reduce deposit costs. &nbsp;Even with this reduction in deposit costs, the Company still experienced growth in deposits which reflects the loyalty of our core deposit base and ongoing efforts to cross sell new loan customers into deposit products. &nbsp;Specifically, total deposits averaged a record level of $866 million for the first half of 2014 which is $28 million, or 3.3%, higher than the $839 million average in the first half of 2013. &nbsp;&nbsp;&nbsp;</P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px" align=justify>The Company did not record a provision for loan losses in the second quarter of 2014 as compared to a $150,000 provision recorded in the second quarter of 2013. &nbsp;For the six month period in 2014, the Company also did not record a provision for loan losses compared to a $100,000 negative provision in the first six months of 2013. &nbsp;The Company continued to maintain outstanding asset quality in the first half of 2014. &nbsp;At June 30, 2014, non-performing assets totaled $4.5 million, or 0.56%, of total loans which is comparable with the level they have averaged for the past six quarters. &nbsp;The Company experienced net loan recoveries in both the second quarter of 2014 and 2013. &nbsp;For the six month periods, there were modest net loan recoveries of $46,000, or 0.01%, of total loans in 2014 compared to net loan charge-offs of $1.3 million, or 0.37% of total loans in 2013. &nbsp;When determining the provision for loan losses, the Company considers a number of factors, some of which include periodic credit reviews, non-performing assets, loan delinquency and charge-off trends, concentrations of credit, loan volume trends and broader local and national economic trends. &nbsp;In summary, the allowance for loan losses provided a strong 256% coverage of non-performing loans, and was 1.26% of total loans at June 30, 2014, compared to 327% of non-performing loans, and 1.29% of total loans, at December 31, 2013. </P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" align=justify>Total non-interest income in the second quarter of 2014 decreased by $437,000, or 10.7%, from the prior year&#146;s second quarter and for the first six months of 2014 decreased by $721,000, or 9.1%, when compared to the first six months of 2013. &nbsp;The 2014 declines reflect reduced revenue from residential mortgage banking activities due to lower refinance activity as a result of higher mortgage rates and reduced purchase activity particularly in the first quarter of 2014. &nbsp;This caused gains realized on residential mortgage loan sales into the secondary market and other mortgage related fees to decrease by a total of $138,000 for the second quarter and $507,000 for the first six months of 2014. &nbsp;Other factors contributing to the non-interest income decline in the second quarter of 2014 included a $203,000 decrease in bank owned life insurance revenue due to the receipt of a death claim in the prior year and a $78,000 loss realized on the sale of an other real estate owned property which contributed to the decline in other income in the second quarter of 2014. &nbsp;For the six month period, these negative items were partially offset by increased fees from our trust and wealth management businesses and increased gains realized on the sale of investment securities. &nbsp;Specifically, trust and investment advisory fees increased by $100,000, or 2.6%, for first half of 2014 due to increased assets under management which reflects both successful new business development activities and market appreciation of existing assets. &nbsp;Gains realized on the sale of investment securities increased by $106,000 for the first six months of 2014 as the Company took advantage of market opportunities to sell certain rapidly prepaying mortgage backed securities. &nbsp;At June 30, 2014, the Company&#146;s available for sale investment securities portfolio still had a market value that exceeded its book value by approximately $3.0 million.</P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" align=justify>Total non-interest expense in the second quarter of 2014 increased by $178,000, or 1.7%, from the prior year&#146;s second quarter and for the first six months of 2014 increased by $294,000, or 1.4%, when compared to the first six months of 2013. &nbsp;Salaries and employee benefits were down modestly between periods as the benefits of lower pension expense and incentive compensation expense were partially offset by increased health insurance premiums. &nbsp;Professional fees increased by $314,000 in the second quarter of 2014 and $587,000 for the six month period due to higher legal costs and new recurring costs related to outsourcing our computer operations and statement processing to a third party vendor. &nbsp;The overall cost savings benefit from outsourcing these services is captured in lower personnel costs in these departments and reduced software expense which is a key factor contributing to the decline in other expenses of $75,000 for the second quarter and $322,000 for the six month period in 2014. &nbsp;Finally, the Company recorded an income tax expense of $812,000, or an effective tax rate of 29.8%, in the first half of 2014 compared to income tax expense of $864,000, or an effective tax rate of 28.9%, for the first half of 2013. &nbsp;The effective tax rate was modestly lower in 2013 due to an increased level of tax free earnings from bank owned life insurance.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" align=justify>The Company had total assets of $1.06 billion, shareholders&#146; equity of $116 million, a book value of $5.05 per common share and a tangible book value of $4.38 per common share at June 30, 2014. &nbsp;The Company has increased its tangible book value per share by 8.7% over the past twelve months. &nbsp;The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status with a risk based capital ratio of 15.23%, an asset leverage ratio of 11.56% and a tangible common equity to tangible assets ratio of 7.83% at June 30, 2014.</P>
<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" align=justify><B><U>&nbsp;</U></B></P>
<P style="margin:0px; padding-left:48px; padding-right:19.2px" align=justify>This news release may contain forward-looking statements that involve risks and uncertainties, as defined in the Private Securities Litigation Reform Act of 1995, including the risks detailed in the Company's Annual Report and Form 10-K to the Securities and Exchange Commission. &nbsp;Actual results may differ materially. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>Nasdaq: ASRV</P>
<P style="margin:0px" align=center>SUPPLEMENTAL FINANCIAL PERFORMANCE DATA </P>
<P style="margin:0px" align=center>June 30, 2014</P>
<P style="margin:0px" align=center>(In thousands, except per share and ratio data)</P>
<P style="margin:0px" align=center>(Unaudited)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; padding-left:38.4px; text-indent:276.933px">2014</P>
<TABLE style="font-size:10pt" cellspacing=0><TR style="font-size:0"><TD width=258></TD><TD width=72></TD><TD width=78></TD><TD width=78></TD></TR>
<TR><TD valign=top width=258><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>1QTR</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>2QTR</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>YEAR</P>
</TD></TR>
<TR><TD valign=top width=258><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>TO DATE</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">PERFORMANCE DATA FOR THE PERIOD:</P>
</TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Net income </P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$930</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$979</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,909</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Net income available to common shareholders </P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>877</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>927</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,804</P>
</TD></TR>
<TR><TD valign=top width=258><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">PERFORMANCE PERCENTAGES (annualized):</P>
</TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Return on average assets</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.36%</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.37%</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.37%</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Return on average equity</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.30</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.41</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.35</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Net interest margin</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.56</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.47</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.52</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Net charge-offs (recoveries) as a percentage</P>
<P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;of average loans</P>
</TD><TD valign=top width=72><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>-</P>
</TD><TD valign=top width=78><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(0.02)</P>
</TD><TD valign=top width=78><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(0.01)</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Loan loss provision (credit) as a percentage of </P>
<P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;average loans</P>
</TD><TD valign=top width=72><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>-</P>
</TD><TD valign=top width=78><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>-</P>
</TD><TD valign=top width=78><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Efficiency ratio</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>89.02</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>88.29</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>88.66</P>
</TD></TR>
<TR><TD valign=top width=258><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">PER COMMON SHARE: </P>
</TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Net income:</P>
</TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Basic</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.05</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.05</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.10</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Average number of common shares outstanding</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,786</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,795</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,790</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Diluted</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.05</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.05</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.10</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Average number of common shares outstanding</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,904</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,936</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,920</P>
</TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Cash dividends declared</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.01</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.01</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.02</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:36px; text-indent:282px">2013</P>
<TABLE style="font-size:10pt" cellspacing=0><TR style="font-size:0"><TD width=264></TD><TD width=64.8></TD><TD width=81.6></TD><TD width=75.6></TD></TR>
<TR><TD valign=top width=264><P>&nbsp;</P></TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>1QTR</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>2QTR</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>YEAR</P>
</TD></TR>
<TR><TD valign=top width=264><P>&nbsp;</P></TD><TD valign=top width=64.8><P>&nbsp;</P></TD><TD valign=top width=81.6><P>&nbsp;</P></TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>TO DATE</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">PERFORMANCE DATA FOR THE PERIOD:</P>
</TD><TD valign=top width=64.8><P>&nbsp;</P></TD><TD valign=top width=81.6><P>&nbsp;</P></TD><TD valign=top width=75.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Net income</P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,056</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,070</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$2,126</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Net income available to common shareholders </P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,004</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,018</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,022</P>
</TD></TR>
<TR><TD valign=top width=264><P>&nbsp;</P></TD><TD valign=top width=64.8><P>&nbsp;</P></TD><TD valign=top width=81.6><P>&nbsp;</P></TD><TD valign=top width=75.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">PERFORMANCE PERCENTAGES (annualized):</P>
</TD><TD valign=top width=64.8><P>&nbsp;</P></TD><TD valign=top width=81.6><P>&nbsp;</P></TD><TD valign=top width=75.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Return on average assets</P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.43%</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.43%</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.43%</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Return on average equity</P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.86</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.86</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.86</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Net interest margin</P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.59</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.50</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.54</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Net charge-offs (recoveries) as a percentage</P>
<P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;of average loans</P>
</TD><TD valign=top width=64.8><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.76</P>
</TD><TD valign=top width=81.6><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(0.02)</P>
</TD><TD valign=top width=75.6><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.37</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Loan loss provision (credit) as a percentage of </P>
<P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;average loans</P>
</TD><TD valign=top width=64.8><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(0.14)</P>
</TD><TD valign=top width=81.6><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.08</P>
</TD><TD valign=top width=75.6><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(0.03)</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Efficiency ratio</P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>89.52</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>86.28</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>87.89</P>
</TD></TR>
<TR><TD valign=top width=264><P>&nbsp;</P></TD><TD valign=top width=64.8><P>&nbsp;</P></TD><TD valign=top width=81.6><P>&nbsp;</P></TD><TD valign=top width=75.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">PER COMMON SHARE: </P>
</TD><TD valign=top width=64.8><P>&nbsp;</P></TD><TD valign=top width=81.6><P>&nbsp;</P></TD><TD valign=top width=75.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Net income:</P>
</TD><TD valign=top width=64.8><P>&nbsp;</P></TD><TD valign=top width=81.6><P>&nbsp;</P></TD><TD valign=top width=75.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Basic</P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.05</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.05</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.11</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Average number of common shares outstanding</P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>19,168</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>19,039</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>19,103</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Diluted</P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.05</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.05</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.11</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Average number of common shares outstanding</P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>19,257</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>19,128</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>19,192</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Cash dividends declared</P>
</TD><TD valign=top width=64.8><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.00</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.01</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.01</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>AMERISERV FINANCIAL, INC.</P>
<P style="margin:0px" align=center>(In thousands, except per share, statistical, and ratio data)</P>
<P style="margin:0px" align=center>(Unaudited)</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:291.333px">2014</P>
<TABLE style="font-size:10pt" cellspacing=0><TR style="font-size:0"><TD width=208.133></TD><TD width=85.867></TD><TD width=84></TD><TD width=84></TD><TD width=84></TD></TR>
<TR><TD valign=top width=208.133><P>&nbsp;</P></TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>1QTR</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>2QTR</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">FINANCIAL CONDITION &nbsp;DATA AT PERIOD END</P>
</TD><TD valign=top width=85.867><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Assets</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,051,108</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,063,717</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Short-term investments/overnight funds</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,019</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,013</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Investment securities</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>154,754</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>153,603</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Loans and loans held for sale </P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>789,620</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>804,675</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Allowance for loan losses</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,109</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,150</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Goodwill </P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,613</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,613</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Deposits</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>875,333</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>873,908</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">FHLB borrowings</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>40,483</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>52,677</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Shareholders&#146; equity</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>114,590</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>115,946</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Non-performing assets </P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,274</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4,469</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Asset leverage ratio</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11.50%</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11.56%</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Tangible common equity ratio</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7.80</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7.83</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">PER COMMON SHARE:</P>
</TD><TD valign=top width=85.867><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Book value (A)</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$4.97</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$5.05</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Tangible book value (A) </P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.31</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.38</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Market value</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.85</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.48</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Trust assets &#150; fair market value (B)</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,692,663</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,873,996</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P>&nbsp;</P></TD><TD valign=top width=85.867><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">STATISTICAL DATA AT PERIOD END:</P>
</TD><TD valign=top width=85.867><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Full-time equivalent employees</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>347</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>345</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Branch locations</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>17</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Common shares outstanding</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,793,388</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,794,888</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:38.4px; text-indent:249.6px">2013</P>
<TABLE style="font-size:10pt" cellspacing=0><TR style="font-size:0"><TD width=208.133></TD><TD width=86.4></TD><TD width=86.4></TD><TD width=86.4></TD><TD width=86.4></TD></TR>
<TR><TD valign=top width=208.133><P>&nbsp;</P></TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>1QTR</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>2QTR</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>3QTR</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>4QTR</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">FINANCIAL CONDITION &nbsp;DATA AT PERIOD END</P>
</TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Assets</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$999,718</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,025,084</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,038,144</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,056,036</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Short-term investments/overnight funds</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>23,995</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,291</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,646</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,778</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Investment securities </P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>162,866</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>168,284</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>167,110</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>160,165</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Loans and loans held for sale </P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>717,852</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>751,522</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>763,681</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>786,748</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Allowance for loan losses</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,960</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11,145</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11,183</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,104</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Goodwill </P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,613</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,613</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,613</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,613</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Deposits</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>847,189</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>840,272</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>852,211</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>854,522</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">FHLB borrowings</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>16,000</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>50,292</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>52,096</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>66,555</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Shareholders&#146; equity</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>111,445</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>109,282</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>110,370</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>113,307</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Non-performing assets </P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4,387</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>5,027</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>5,037</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4,109</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Asset leverage ratio</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11.58%</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11.52%</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11.44%</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11.45%</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Tangible common equity ratio</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7.88</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7.47</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7.48</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7.64</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">PER COMMON SHARE: </P>
</TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Book value (A)</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$4.72</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$4.70</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$4.76</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$4.91</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Tangible book value (A) </P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.06</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.03</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.09</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.24</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Market value</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.13</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2.74</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.15</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.03</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Trust assets &#150; fair market value (B)</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,566,236</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,562,366</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,599,402</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,668,654</P>
</TD></TR>
<TR><TD valign=top width=208.133><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">STATISTICAL DATA AT PERIOD END:</P>
</TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD><TD valign=top width=86.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Full-time equivalent employees</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>357</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>360</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>358</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>352</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Branch locations</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18</P>
</TD></TR>
<TR><TD valign=top width=208.133><P style="line-height:11pt; margin:0px; font-size:9pt">Common shares outstanding</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>19,168,188</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,784,188</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,784,188</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,784,188</P>
</TD></TR>
</TABLE>
<P style="line-height:11pt; margin:0px; font-size:9pt">NOTES:</P>
<P style="line-height:11pt; margin-top:0px; margin-bottom:-14.667px; padding-left:50px; text-indent:-24px; font-size:9pt">(A)</P>
<P style="line-height:11pt; margin:0px; padding-left:50px; font-size:9pt">Preferred stock of $21 million received through the Small Business Lending Fund is excluded from the book value per</P>
<P style="line-height:11pt; margin:0px; padding-left:50px; font-size:9pt">common share and tangible book value per common share calculations.</P>
<P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Not recognized on the consolidated balance sheets.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>AMERISERV FINANCIAL, INC.</P>
<P style="margin:0px" align=center>CONSOLIDATED STATEMENT OF INCOME</P>
<P style="margin:0px" align=center>(In thousands)</P>
<P style="margin:0px" align=center>(Unaudited)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; padding-left:38.4px; text-indent:270.933px">2014</P>
<TABLE style="font-size:10pt" cellspacing=0><TR style="font-size:0"><TD width=232.8></TD><TD width=64.4></TD><TD width=64.4></TD><TD width=64.4></TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>1QTR</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>2QTR</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>YEAR</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">INTEREST INCOME</P>
</TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>TO DATE</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Interest and fees on loans</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$9,032</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$8,939</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$17,971</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Interest on investments</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,063</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,044</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,107</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Total Interest Income</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,095</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,983</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>20,078</P>
</TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">INTEREST EXPENSE</P>
</TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Deposits</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,211</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,240</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,451</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">All borrowings</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>359</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>359</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>718</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Total Interest Expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,570</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,599</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,169</P>
</TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NET INTEREST INCOME</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,525</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,384</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>16,909</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Provision (credit) for loan losses</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>-</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>-</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NET INTEREST INCOME AFTER</P>
<P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;&nbsp;PROVISION (CREDIT) FOR LOAN </P>
<P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;&nbsp;LOSSES</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><BR></P>
<P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,525</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><BR></P>
<P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,384</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><BR></P>
<P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>16,909</P>
</TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NON-INTEREST INCOME</P>
</TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Trust and investment advisory fees</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,032</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,948</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,980</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Service charges on deposit accounts</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>478</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>501</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>979</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Net realized gains on loans held for sale</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>101</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>171</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>272</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Mortgage related fees</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>117</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>160</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>277</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Net realized gains on investment securities</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>57</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>120</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>177</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Bank owned life insurance</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>187</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>185</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>372</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Other income</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>560</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>553</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,113</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Total Non-Interest Income</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,532</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,638</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7,170</P>
</TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NON-INTEREST EXPENSE</P>
</TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Salaries and employee benefits</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>6,314</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>6,107</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,421</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Net occupancy expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>839</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>717</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,556</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Equipment expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>470</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>494</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>964</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Professional fees</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,308</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,464</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,772</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">FDIC deposit insurance expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>160</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>154</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>314</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Other expenses</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,647</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,684</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,331</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Total Non-Interest Expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,738</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,620</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>21,358</P>
</TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">PRETAX INCOME </P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,319</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,402</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,721</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Income tax expense </P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>389</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>423</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>812</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NET INCOME</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>930</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>979</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,909</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Preferred stock dividends </P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>53</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>52</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>105</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NET INCOME AVAILABLE TO COMMON SHAREHOLDERS</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$877</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$927</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,804</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:11pt; margin:0px; padding-left:38.4px; text-indent:267.6px; font-size:9pt">2013</P>
<TABLE style="font-size:10pt" cellspacing=0><TR style="font-size:0"><TD width=232.8></TD><TD width=64.4></TD><TD width=64.4></TD><TD width=76.4></TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>1QTR</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>2QTR</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>YEAR</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">INTEREST INCOME</P>
</TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>TO DATE</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Interest and fees on loans</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$8,628</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$8,590</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$17,218</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Interest on investments</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,074</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,037</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,111</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Total Interest Income</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,702</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,627</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>19,329</P>
</TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=76.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">INTEREST EXPENSE</P>
</TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=76.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Deposits</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,350</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,288</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,638</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">All borrowings</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>310</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>318</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>628</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Total Interest Expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,660</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,606</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,266</P>
</TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=76.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NET INTEREST INCOME</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,042</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,021</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>16,063</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Provision (credit) for loan losses</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(250)</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>150</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(100)</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NET INTEREST INCOME AFTER</P>
<P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;&nbsp;PROVISION (CREDIT) FOR LOAN </P>
<P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;&nbsp;LOSSES</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><BR></P>
<P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,292</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><BR></P>
<P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7,871</P>
</TD><TD valign=top width=76.4><P style="margin:0px" align=right><BR></P>
<P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>16,163</P>
</TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=76.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NON-INTEREST INCOME</P>
</TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=76.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Trust and investment advisory fees</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,881</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,999</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,880</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Service charges on deposit accounts</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>511</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>538</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,049</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Net realized gains on loans held for sale</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>386</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>241</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>627</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Mortgage related fees</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>201</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>228</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>429</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Net realized gains on investment securities</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>71</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>-</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>71</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Bank owned life insurance</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>201</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>388</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>589</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Other income</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>565</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>681</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,246</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Total Non-Interest Income</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,816</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4,075</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7,891</P>
</TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=76.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NON-INTEREST EXPENSE</P>
</TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=76.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Salaries and employee benefits</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>6,331</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>6,176</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,507</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Net occupancy expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>773</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>751</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,524</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Equipment expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>455</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>455</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>910</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Professional fees</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,035</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,150</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,185</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">FDIC deposit insurance expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>134</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>151</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>285</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Other expenses </P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,894</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,759</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,653</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Total Non-Interest Expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,622</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,442</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>21,064</P>
</TD></TR>
<TR><TD valign=top width=232.8><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=64.4><P>&nbsp;</P></TD><TD valign=top width=76.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">PRETAX INCOME</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,486</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,504</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,990</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Income tax expense </P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>430</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>434</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>864</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NET INCOME </P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,056</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,070</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,126</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Preferred stock dividends </P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>52</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>52</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>104</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">NET INCOME AVAILABLE TO COMMON SHAREHOLDERS</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,004</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,018</P>
</TD><TD valign=top width=76.4><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$2,022</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>AMERISERV FINANCIAL, INC.</P>
<P style="margin:0px" align=center>Nasdaq: ASRV</P>
<P style="margin:0px" align=center>Average Balance Sheet Data (In thousands)</P>
<P style="margin:0px" align=center>(Unaudited)</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:36px; padding-right:-43.2px; text-indent:376.667px">2014</P>
<P style="margin:0px; padding-left:36px; padding-right:-43.2px; text-indent:526.667px">2013</P>
<TABLE style="font-size:10pt" cellspacing=0><TR style="font-size:0"><TD width=324></TD><TD width=78></TD><TD width=78></TD><TD width=72></TD><TD width=84></TD></TR>
<TR><TD valign=top width=324><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>SIX</P>
</TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>SIX</P>
</TD></TR>
<TR><TD valign=top width=324><P>&nbsp;</P></TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2QTR</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>MONTHS</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2QTR</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>MONTHS</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Interest earning assets:</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Loans and loans held for sale, net of unearned income</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$795,233</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$791,270</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$728,189</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$727,846</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Deposits with banks</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7,512</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>6,749</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,511</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,324</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Short-term investment in money market funds</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,296</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,231</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>5,702</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>5,057</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Total investment securities</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>157,348</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>160,069</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>169,482</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>166,559</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Total interest earning assets</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>962,389</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>961,319</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>912,884</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>907,786</P>
</TD></TR>
<TR><TD valign=top width=324><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Non-interest earning assets:</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Cash and due from banks</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>15,267</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>15,618</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>16,470</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>16,845</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Premises and equipment</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>13,194</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>13,171</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,799</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,475</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Other assets</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>69,538</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>69,689</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>75,924</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>78,961</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Allowance for loan losses</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(10,122)</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(10,132)</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(10,989)</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(11,768)</P>
</TD></TR>
<TR><TD valign=top width=324><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Total assets</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,050,266</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,049,665</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,007,088</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,004,299</P>
</TD></TR>
<TR><TD valign=top width=324><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Interest bearing liabilities:</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Interest bearing deposits:</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Interest bearing demand</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$100,249</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$91,433</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$74,721</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$68,850</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Savings</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>89,871</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>89,202</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>88,919</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>88,058</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Money market</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>229,626</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>229,170</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>208,050</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>210,626</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Other time</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>304,022</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>303,583</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>309,318</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>311,667</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Total interest bearing deposits</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>723,768</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>713,388</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>681,008</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>679,201</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Borrowings:</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Federal funds purchased and other short-term borrowings</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7,249</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,441</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,067</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,966</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Advances from Federal Home Loan Bank</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>30,378</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>28,544</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>16,000</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>15,774</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Guaranteed junior subordinated deferrable interest debentures</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>13,085</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>13,085</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>13,085</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>13,085</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Total interest bearing liabilities</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>774,480</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>773,458</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>722,160</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>718,026</P>
</TD></TR>
<TR><TD valign=top width=324><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Non-interest bearing liabilities:</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P>&nbsp;</P></TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;Demand deposits</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>152,976</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>152,894</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>160,773</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>159,512</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;Other liabilities</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7,582</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,519</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,860</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>15,634</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Shareholders&#146; equity</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>115,228</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>114,794</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>111,295</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>111,127</P>
</TD></TR>
<TR><TD valign=top width=324><P style="line-height:11pt; margin:0px; font-size:9pt">Total liabilities and shareholders&#146; equity</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,050,266</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,049,665</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,007,088</P>
</TD><TD valign=top width=84><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,004,299</P>
</TD></TR>
</TABLE>
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