AmeriServ Financial, Inc. (ASRV) reported a decline in borrowed funds to $75.3 million from $101.7 million in 2024, with average short-term borrowings dropping to $5.6 million from $28.0 million. As of year-end 2025, classified loans fell by 52% to $11.3 million. This strategic shift towards a lower-cost funding base aims to enhance net interest margin (NIM) and earnings per share (EPS) in 2026, despite ongoing risks related to commercial real estate, which accounted for 352% of regulatory capital.
Security Federal Corporation (SFDL) also reduced its reliance on higher-cost funding, with borrowings decreasing to $35.3 million as of December 31, 2025, down from $93.0 million a year earlier. At that same date, commercial real estate loans totaled $295.3 million, representing 43.0% of the total loan portfolio, while non-accrual loans improved to 0.84% of total loans. The stock currently trades at 0.96 times book value, having seen highs of 1.26 times over the past five years.
