<SEC-DOCUMENT>0000707605-15-000052.txt : 20150414
<SEC-HEADER>0000707605-15-000052.hdr.sgml : 20150414
<ACCEPTANCE-DATETIME>20150414080021
ACCESSION NUMBER:		0000707605-15-000052
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20150414
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20150414
DATE AS OF CHANGE:		20150414

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:		15767997

	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>mar158k.htm
<DESCRIPTION>1ST QTR 2015 PRESS RELEASE
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<TITLE>SECURITIES AND EXCHANGE COMMISSION</TITLE>
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<META NAME="date" CONTENT="04/13/2015">
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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) April 14<A NAME="QuickMark"></A>, 2015</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 first quarter 2015 results through March 31, 2015. &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 April 14, 2015, announcing the first quarter 2015 results through March 31, 2015. </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>President &amp; CEO</P>
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<P style="margin:0px; font-family:Courier New" align=justify>Date: April 14, 2015 </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="line-height:16pt; margin:0px; padding-left:48px; padding-right:19.2px; font-size:14pt"><B>AMERISERV FINANCIAL REPORTS EARNINGS FOR THE FIRST QUARTER OF 2015 &nbsp;&nbsp;</B></P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px; font-family:Courier New" align=justify>JOHNSTOWN, PA &#150; AmeriServ Financial, Inc. (NASDAQ: ASRV) reported first quarter 2015 net income available to common shareholders of $1,316,000, or $0.07 per diluted common share. &nbsp;This represented a 40% increase in earnings per share from the first quarter of 2014 where net income available to common shareholders totaled $877,000 or $0.05 per diluted common share. &nbsp;The following table highlights the Company&#146;s financial performance for the quarters ended March 31, 2015 and 2014: &nbsp;</P>
<P style="line-height:14pt; margin:0px; padding-left:48px; padding-right:19.2px; font-family:Courier New; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR style="font-size:0"><TD width=192></TD><TD width=132></TD><TD width=126></TD><TD width=102></TD><TD width=108></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=192><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=132><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>First Quarter 2015</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=126><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>First Quarter 2014</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=102><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>$ Change</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=108><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>% Change</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=192><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=132><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=126><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=102><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=108><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=192><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=132><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,369,000 </P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=126><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$930,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=102><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$439,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=108><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>47.2%</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=192><P style="line-height:11pt; margin:0px; font-size:9pt">Net income available to common shareholders</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=132><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,316,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=126><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$877,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=102><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$439,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>50.1%</P>
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<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=192><P style="line-height:11pt; margin:0px; font-size:9pt">Diluted earnings per share</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=132><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$ 0.07</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=126><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=102><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$ 0.02</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=108><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>40.0%</P>
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<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" align=justify>Jeffrey A. Stopko, President and Chief Executive Officer, commented on the first quarter 2015 financial results: &#147;Our improved financial performance in the first quarter of 2015 resulted from a combination of revenue growth and non-interest expense reduction. &nbsp;Specifically, solid loan and deposit growth in our community banking business contributed to an increase of $409,000, or 4.8%, in net interest income. &nbsp;Non-interest expense in the first quarter of 2015 declined as expected by $328,000 or 3.1% as we are realizing the savings from several profitability improvement initiatives that were implemented in late 2014. &nbsp;We will focus on successfully executing our business plans to further improve profitability in 2015 while continuing to maintain excellent asset quality.&#148;</P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" align=justify>The Company&#146;s net interest income in the first quarter of 2015 increased by $409,000, or 4.8%, when compared to the first quarter of 2014. &nbsp;The Company&#146;s net interest margin of 3.57% for the first quarter of 2015 was comparable with the net interest margin of 3.56% for the first quarter 2014 and eight basis points better than the 3.49% margin reported for the more recently reported fourth quarter 2014 performance. &nbsp;The Company has been able to increase net interest income and modestly improve its net interest margin by both growing its earning assets and controlling its cost of funds through disciplined deposit pricing. Specifically, the earning asset growth has occurred in the loan portfolio as total loans averaged $842 million in the first quarter of 2015 which is $54 million, or 6.9%, higher than the $787 million average for the first quarter of 2014. &nbsp;This loan growth reflects the successful results of the Company&#146;s sales calling efforts, with an emphasis on generating commercial loans and owner occupied commercial real estate loans particularly through its loan production offices. &nbsp;Interest income in 2015 has also benefitted from an increased dividend from the FHLB of Pittsburgh and reduced premium amortization on mortgage backed securities due to slower mortgage prepayment speeds. &nbsp;Overall, total interest income has increased by $428,000, or 4.2%, in the first quarter of 2015. &nbsp;Total interest expense for the first quarter of 2015 has been well controlled as it increased by only $19,000, or 1.2%, 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 we believe 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 $897 million for the first quarter of 2015 which is $41 million, or 4.8%, higher than the $856 million average for the first quarter of 2014. &nbsp;The Company is pleased that a meaningful portion of this deposit growth occurred in non-interest bearing demand deposit accounts. &nbsp;This decreased interest expense for deposits has been offset by a $56,000 increase in the interest cost for borrowings as the Company has utilized more FHLB term advances to extend borrowings and provide protection against rising interest rates.</P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" align=justify>The Company recorded a $250,000 provision for loan losses in the first quarter of 2015 compared to no provision for loan losses in the first quarter of 2014. &nbsp;This provision in the first quarter of 2015 was needed to support the continuing growth of the loan portfolio and cover net loan charge-offs. &nbsp;The Company experienced net loan charge-offs of $184,000, or 0.09% of total loans, in the first quarter of 2015 compared to modest net loan recoveries of $5,000 in the first quarter of 2014. &nbsp;Overall, the Company continued to maintain outstanding asset quality in the first quarter of 2015. &nbsp;At March 31, 2015, non-performing assets totaled $3.0 million, or only 0.36% of total loans. &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 390% coverage of non-performing loans, and 1.14% of total loans, at March 31, 2015, compared to 400% coverage of non-performing loans, and 1.16% of total loans, at December 31, 2014.</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 first quarter of 2015 increased by $180,000, or 5.1%, from the first quarter of 2014. &nbsp;Increased revenue from bank owned life insurance, mortgage loan sales, and trust and investment advisory fees were the main factors causing the increase. &nbsp;Specifically, revenue from bank owned life insurance increased by $176,000 due to the receipt of a death claim while gains realized on residential mortgage loan sales into the secondary market increased by $90,000 due to increased refinance activity. &nbsp;Trust and investment advisory fees increased by $24,000 due to successful new business development efforts. &nbsp;These positive items were partially offset by a $59,000 reduction in deposit service charges due to fewer overdraft fees and a $57,000 decrease in gains realized on investment security transactions as the Company did not execute any sale transactions in the first quarter of 2015.</P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" align=justify>The Company&#146;s total non-interest expense in the first quarter of 2015 decreased by $328,000, or 3.1%, when compared to the first quarter of 2014. &nbsp;Salaries and employee benefits were down by $241,000, or 3.8%, due to 29 fewer full time equivalent employees as certain employees who elected to participate in an early retirement program in late 2014 were not replaced in order to achieve efficiencies identified as part of a profitability improvement program. &nbsp;Professional fees also declined by $97,000 due to lower legal fees and recruitment costs in the first quarter of 2015. &nbsp;The remainder of the key non-interest expense categories were relatively consistent between years reflecting the Company&#146;s focus on reducing and controlling costs. &nbsp;Finally, the Company recorded an income tax expense of $617,000, or an effective tax rate of 31.1%, in the first quarter of 2015 which is higher when compared to the income tax expense of $389,000, or an effective tax rate of 29.5%, for the first quarter of 2014. &nbsp;The higher income tax expense and effective tax rate is due to the Company&#146;s increased earnings in the first quarter of 2015.</P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" align=justify>The Company had total assets of $1.1 billion, shareholders&#146; equity of $116 million, a book value of $5.06 per common share and a tangible book value of $4.42 per common share at March 31, 2015. &nbsp;The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status and had a tangible common equity to tangible assets ratio of 7.64% at March 31, 2015.</P>
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<P style="margin:0px; padding-left:48px; padding-right:19.2px; text-indent:48px" 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.</P>
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<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>March 31, 2015</P>
<P style="margin:0px" align=center>(In thousands, except per share and ratio data)</P>
<P style="margin:0px" align=center>(Unaudited)</P>
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<P style="margin:0px; padding-left:38.4px; text-indent:276.933px">2015</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><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>&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=78><P>&nbsp;</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><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 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><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>$1,369</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</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>1,316</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</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><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><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>0.51%</P>
</TD><TD valign=top width=78><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=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 equity</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.80</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</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>3.57</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Net charge-offs as a percentage of average loans</P>
</TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.09</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=258><P style="line-height:11pt; margin:0px; font-size:9pt">Loan loss provision 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>0.12</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</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>82.29</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</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><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><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><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>$0.07</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</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>18,851</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</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>0.07</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</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>18,909</P>
</TD><TD valign=top width=78><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=78><P>&nbsp;</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>&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=78><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:11pt; margin:0px; padding-left:36px; text-indent:282px; font-size:9pt">2014</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><TD width=75.6></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>3QTR</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>4QTR</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>&nbsp;</P></TD><TD valign=top width=75.6><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><TD valign=top width=75.6><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>$930</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$979</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$365</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$749</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$3,023</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>877</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>927</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>312</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>697</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,813</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><TD valign=top width=75.6><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><TD valign=top width=75.6><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>0.36%</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.37%</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.14%</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.28%</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.29%</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>3.30</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.41</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1.25</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2.54</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2.61</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>3.56</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.47</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.42</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.49</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.52</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>-</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>0.28</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>0.16</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>0.11</P>
</TD></TR>
<TR><TD valign=top width=264><P style="line-height:11pt; margin:0px; font-size:9pt">Loan loss provision 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>-</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>-</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>-</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>0.18</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>0.05</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>89.02</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>88.29</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>93.68</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>87.58</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>89.63</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><TD valign=top width=75.6><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><TD valign=top width=75.6><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><TD valign=top width=75.6><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>$0.02</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.04</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$0.15</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>18,786</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,795</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,795</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,795</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,793</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>0.02</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.04</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>0.15</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>18,904</P>
</TD><TD valign=top width=81.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,936</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,908</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,887</P>
</TD><TD valign=top width=75.6><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,908</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>$0.01</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><TD valign=top width=75.6><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>$0.04</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></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>(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">2015</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>&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">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>$1,103,416</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">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>10,127</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">Investment securities</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>142,010</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">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>853,972</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">Allowance for loan losses</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,689</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">Goodwill </P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11,944</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">Deposits</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>892,676</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">FHLB borrowings</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>71,219</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">Shareholders&#146; equity</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>116,328</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">Non-performing assets </P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,046</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">Tangible common equity ratio</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7.64</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">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>$5.06</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">Tangible book value (A) </P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.42</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">Market value</P>
</TD><TD valign=top width=85.867><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2.98</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">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>$1,932,894</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>&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>318</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">Branch locations</P>
</TD><TD valign=top width=85.867><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><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>18,855,021</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>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:11pt; margin:0px; padding-left:38.4px; text-indent:249.6px; font-size:9pt">2014</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>$1,051,108</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,063,717</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,070,431</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,089,263</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>9,019</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,013</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>6,662</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,092</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>154,754</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>153,603</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>150,471</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>146,950</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>789,620</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>804,675</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>817,887</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>832,131</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>10,109</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,150</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,582</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,623</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>11,944</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11,944</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>875,333</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>873,908</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>872,170</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>869,881</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>40,483</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>52,677</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>63,438</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>80,880</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>114,590</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>115,946</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>116,146</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>114,407</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>3,274</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4,469</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,897</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,917</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>7.80</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7.83</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7.86</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7.56</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>$4.97</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$5.05</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$5.06</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$4.97</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>4.31</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.38</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.43</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4.33</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>3.85</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.48</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.30</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3.13</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>$1,692,663</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,778,522</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,774,988</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,784,278</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>347</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>345</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>341</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>314</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>17</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>17</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>17</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>18,793,388</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,794,888</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,794,888</P>
</TD><TD valign=top width=86.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>18,794,888</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><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">2015</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><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>&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 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><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 and fees on loans</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$9,456</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><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 on investments</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,067</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><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">Total Interest Income</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,523</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><TD valign=top width=64.4><P>&nbsp;</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><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><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>1,174</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><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">All borrowings</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>415</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><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">Total Interest Expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,589</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><TD valign=top width=64.4><P>&nbsp;</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><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>8,934</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><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">Provision 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>&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 AFTER</P>
<P style="line-height:11pt; margin:0px; font-size:9pt">&nbsp;&nbsp;&nbsp;PROVISION FOR LOAN LOSSES</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>8,684</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><TD valign=top width=64.4><P>&nbsp;</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><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><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>2,056</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><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">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>419</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><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 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>191</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><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">Mortgage related fees</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>115</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><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 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>-</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><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">Bank owned life insurance</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>363</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><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">Other income</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>568</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><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">Total Non-Interest Income</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,712</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><TD valign=top width=64.4><P>&nbsp;</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><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><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>6,073</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><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 occupancy expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>841</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><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">Equipment expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>466</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><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">Professional fees</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>&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">FDIC deposit insurance expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>167</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><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">Other expenses</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,652</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><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">Total Non-Interest Expense</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,410</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><TD valign=top width=64.4><P>&nbsp;</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><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>1,986</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><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">Income tax expense </P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>617</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><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 INCOME</P>
</TD><TD valign=top width=64.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,369</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><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">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>&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 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>$1,316</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><TD valign=top width=64.4><P>&nbsp;</P></TD></TR>
</TABLE>
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<P style="line-height:11pt; margin:0px; padding-left:38.4px; text-indent:267.6px; font-size:9pt">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=76.4></TD><TD width=76.4></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>3QTR</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=center>4QTR</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>&nbsp;</P></TD><TD valign=top width=76.4><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>$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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$9,019</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$9,352</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$36,342</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,000</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>992</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4,099</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,019</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,344</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>40,441</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><TD valign=top width=76.4><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><TD valign=top width=76.4><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>1,211</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,237</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,201</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4,889</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>379</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>411</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,508</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,616</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,612</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>6,397</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><TD valign=top width=76.4><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>8,525</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,403</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>8,732</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>34,044</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Provision 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=76.4><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>375</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>375</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 &nbsp;FOR LOAN LOSSES</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>8,525</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>8,384</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>8,403</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>8,357</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>33,669</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><TD valign=top width=76.4><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><TD valign=top width=76.4><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>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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,807</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,978</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>7,765</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>507</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>471</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,957</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>275</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>201</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>748</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>190</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>123</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>590</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=76.4><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>-</P>
</TD><TD valign=top width=76.4><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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>188</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>189</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>749</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>626</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>598</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,337</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,593</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,560</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>14,323</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><TD valign=top width=76.4><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><TD valign=top width=76.4><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>6,314</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>6,139</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>6,400</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>24,960</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>709</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>699</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>2,964</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>468</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>460</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,892</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,360</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,277</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>5,409</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>159</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>163</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>636</P>
</TD></TR>
<TR><TD valign=top width=232.8><P style="line-height:11pt; margin:0px; font-size:9pt">Goodwill impairment charge</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>669</P>
</TD><TD valign=top width=76.4><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>669</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,739</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,771</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>6,841</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11,243</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>10,770</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>43,371</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><TD valign=top width=76.4><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>1,319</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>753</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,147</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4,621</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=76.4><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>398</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,598</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>365</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>749</P>
</TD><TD valign=top width=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>3,023</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=76.4><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>53</P>
</TD><TD valign=top width=76.4><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>210</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=76.4><P style="margin:0px" align=right><BR></P>
<P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$312</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>$697</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>$2,813</P>
</TD></TR>
</TABLE>
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<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">2015</P>
<P style="margin:0px; padding-left:36px; padding-right:-43.2px; text-indent:526.667px">2014</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>&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>&nbsp;</P></TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1QTR</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1QTR</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 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>$841,612</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$787,306</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">Deposits with banks</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11,296</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>5,881</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">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>2,017</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>4,272</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 investment securities</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>147,652</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>162,789</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 interest earning assets</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>1,002,577</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>960,248</P>
</TD><TD valign=top width=84><P>&nbsp;</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>17,293</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>15,970</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">Premises and equipment</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>12,953</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>13,149</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">Other assets</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>70,301</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>69,840</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">Allowance for loan losses</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(9,673)</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>(10,142)</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>$1,093,451</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,049,065</P>
</TD><TD valign=top width=84><P>&nbsp;</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>$92,926</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$82,617</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">Savings</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>92,490</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>88,535</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">Money market</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>232,542</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>228,715</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">Other time</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>306,050</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>303,140</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 interest bearing deposits</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>724,008</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>703,007</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">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>13,484</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>29,633</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">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>43,581</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>26,710</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">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>&nbsp;</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>&nbsp;</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>794,158</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>772,435</P>
</TD><TD valign=top width=84><P>&nbsp;</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>172,559</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>152,811</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;Other liabilities</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>11,052</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>9,459</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">Shareholders&#146; equity</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>115,682</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>114,360</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 liabilities and shareholders&#146; equity</P>
</TD><TD valign=top width=78><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,093,451</P>
</TD><TD valign=top width=78><P>&nbsp;</P></TD><TD valign=top width=72><P style="line-height:11pt; margin:0px; font-size:9pt" align=right>$1,049,065</P>
</TD><TD valign=top width=84><P>&nbsp;</P></TD></TR>
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