10-Q

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 10-Q

 

x	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the period ended March 31, 2015

o	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from            to           

Commission File Number 0-11204

 

AmeriServ Financial, Inc.

(Exact name of registrant as specified in its charter)

 

Pennsylvania	25-1424278
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Main & Franklin Streets, P.O. Box 430, Johnstown, PA	15907-0430
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (814) 533-5300

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, accelerated filer, non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o	Non-accelerated filer o	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).Yes o No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at May 1, 2015
Common Stock, par value $0.01	18,855,021

 

AmeriServ Financial, Inc.
 
INDEX

	Page No.
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements		1
Consolidated Balance Sheets (Unaudited) — March 31, 2015 and December 31, 2014		1
Consolidated Statements of Operations (Unaudited) — Three months ended March 31, 2015 and 2014		2
Consolidated Statements of Comprehensive Income (Unaudited) — Three months ended March 31, 2015 and 2014		4
Consolidated Statements of Cash Flows (Unaudited) — Three months ended March 31, 2015 and 2014		5
Notes to Unaudited Consolidated Financial Statements		7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		29
Item 3. Quantitative and Qualitative Disclosure About Market Risk		39
Item 4. Controls and Procedures		39
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		40
Item 1A. Risk Factors		40
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		40
Item 3. Defaults Upon Senior Securities		40
Item 4. Mine Safety Disclosures		40
Item 5. Other Information		40
Item 6. Exhibits		40

i

Item 1. Financial Statements

AmeriServ Financial, Inc.

CONSOLIDATED BALANCE SHEETS
(In thousands except shares)
(Unaudited)

	March 31, 2015			December 31, 2014
ASSETS
Cash and due from depository institutions	$	20,591		$	23,780
Interest bearing deposits		2,969			2,952
Short-term investments in money market funds		7,158			6,140
Total cash and cash equivalents		30,718			32,872
Investment securities:
Available for sale		122,533			127,110
Held to maturity (fair value $20,013 on March 31, 2015 and $20,213 on December 31, 2014)		19,477			19,840
Loans held for sale		3,575			5,051
Loans		850,979			827,634
Less: Unearned income		582			554
Allowance for loan losses		9,689			9,623
Net loans		840,708			817,457
Premises and equipment, net		12,781			13,012
Accrued interest income receivable		3,300			3,127
Goodwill		11,944			11,944
Bank owned life insurance		37,388			37,417
Net deferred tax asset		8,938			9,548
Federal Home Loan Bank stock		3,501			4,048
Federal Reserve Bank stock		2,125			2,125
Other assets		6,428			5,712
TOTAL ASSETS	$	1,103,416		$	1,089,263
LIABILITIES
Non-interest bearing deposits	$	171,074		$	167,551
Interest bearing deposits		721,602			702,330
Total deposits		892,676			869,881
Short-term borrowings		27,219			38,880
Advances from Federal Home Loan Bank		44,000			42,000
Guaranteed junior subordinated deferrable interest debentures		13,085			13,085
Total borrowed funds		84,304			93,965
Other liabilities		10,108			11,010
TOTAL LIABILITIES		987,088			974,856
SHAREHOLDERS’ EQUITY
Preferred stock, no par value; $1,000 per share liquidation preference; 2,000,000 shares authorized; 21,000 shares issued and outstanding on March 31, 2015 and December 31, 2014		21,000			21,000
Common stock, par value $0.01 per share; 30,000,000 shares authorized; 26,472,840 shares issued and 18,855,021 outstanding on March 31, 2015; 26,402,707 shares issued and 18,784,888 outstanding on December 31, 2014		265			264
Treasury stock at cost, 7,617,819 shares on March 31, 2015 and December 31, 2014		(74,829	)		(74,829	)
Capital surplus		145,387			145,256
Retained earnings		30,746			29,618
Accumulated other comprehensive loss, net		(6,241	)		(6,902	)
TOTAL SHAREHOLDERS’ EQUITY		116,328			114,407
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,103,416		$	1,089,263

 
 
See accompanying notes to unaudited consolidated financial statements.

1

AmeriServ Financial, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

	Three months ended March 31,
	2015		2014
INTEREST INCOME
Interest and fees on loans	$	9,456	$	9,032
Interest bearing deposits		2		1
Short-term investments in money market funds		2		2
Investment securities:
Available for sale		913		924
Held to maturity		150		136
Total Interest Income		10,523		10,095
INTEREST EXPENSE
Deposits		1,174		1,211
Short-term borrowings		10		19
Advances from Federal Home Loan Bank		125		60
Guaranteed junior subordinated deferrable interest debentures		280		280
Total Interest Expense		1,589		1,570
NET INTEREST INCOME		8,934		8,525
Provision for loan losses		250		—
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		8,684		8,525
NON-INTEREST INCOME
Trust and investment advisory fees		2,056		2,032
Service charges on deposit accounts		419		478
Net gains on sale of loans		191		101
Mortgage related fees		115		117
Net realized gains on investment securities		—		57
Bank owned life insurance		363		187
Other income		568		560
Total Non-Interest Income		3,712		3,532
NON-INTEREST EXPENSE
Salaries and employee benefits		6,073		6,314
Net occupancy expense		841		839
Equipment expense		466		470
Professional fees		1,211		1,308
Supplies, postage and freight		178		183
Miscellaneous taxes and insurance		297		296
Federal deposit insurance expense		167		160
Other expense		1,177		1,168
Total Non-Interest Expense		10,410		10,738

 
 
See accompanying notes to unaudited consolidated financial statements.

2

AmeriServ Financial, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS – (continued)
(In thousands, except per share data)
(Unaudited)

	Three months ended March 31,
	2015		2014
PRETAX INCOME	$	1,986	$	1,319
Provision for income tax expense		617		389
NET INCOME		1,369		930
Preferred stock dividends		53		53
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	1,316	$	877
PER COMMON SHARE DATA:
Basic:
Net income	$	0.07	$	0.05
Average number of shares outstanding		18,851		18,786
Diluted:
Net income	$	0.07	$	0.05
Average number of shares outstanding		18,909		18,904
Cash dividends declared	$	0.01	$	0.01

 
 
See accompanying notes to unaudited consolidated financial statements.

3

AmeriServ Financial, Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)

	Three Months Ended March 31,
	2015			2014
COMPREHENSIVE INCOME
Net income	$	1,369		$	930
Other comprehensive income, before tax:
Pension obligation change for defined benefit plan		655			392
Income tax effect		(223	)		(133	)
Unrealized holding gains on available for sale securities arising during period		346			514
Income tax effect		(117	)		(175	)
Reclassification adjustment for gains on available for sale securities included in net income		—			(57	)
Income tax effect		—			20
Other comprehensive income		661			561
Comprehensive income	$	2,030		$	1,491

 
 
See accompanying notes to unaudited consolidated financial statements.

4

AmeriServ Financial, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Three months ended March 31,
	2015			2014
OPERATING ACTIVITIES
Net income	$	1,369		$	930
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		250			—
Depreciation expense		456			457
Net amortization of investment securities		85			96
Net realized gains on investment securities available for sale		—			(57	)
Net gains on loans held for sale		(191	)		(101	)
Amortization of deferred loan fees		(67	)		(75	)
Origination of mortgage loans held for sale		(11,764	)		(6,109	)
Sales of mortgage loans held for sale		13,431			6,804
Increase in accrued interest income receivable		(173	)		(291	)
Decrease in accrued interest payable		(161	)		(186	)
Earnings on bank owned life insurance		(171	)		(187	)
Deferred income taxes		285			141
Stock based compensation expense		132			32
Other, net		(696	)		699
Net cash provided by operating activities		2,785			2,153
INVESTING ACTIVITIES
Purchases of investment securities – available for sale		—			(2,520	)
Purchases of investment securities – held to maturity		—			(151	)
Proceeds from sales of investment securities – available for sale		—			2,753
Proceeds from maturities of investment securities – available for sale		4,852			5,428
Proceeds from maturities of investment securities – held to maturity		350			321
Purchases of regulatory stock		(3,878	)		(1,830	)
Proceeds from redemption of regulatory stock		4,425			2,973
Long-term loans originated		(68,544	)		(37,426	)
Principal collected on long-term loans		41,248			34,040
Loans purchased or participated		(4,000	)		—
Loans sold or participated		7,755			—
Proceeds from sale of other real estate owned		53			—
Proceeds from life insurance policy		200			—
Purchases of premises and equipment		(220	)		(389	)
Net cash (used in) provided by investing activities		(17,759	)		3,199

 
 
See accompanying notes to unaudited consolidated financial statements.

5

AmeriServ Financial, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS – (continued)
(In thousands)
(Unaudited)

	Three months ended March 31,
	2015			2014
FINANCING ACTIVITIES
Net increase in deposit balances	$	22,722		$	20,763
Net decrease in other short-term borrowings		(11,661	)		(29,072	)
Principal borrowings on advances from Federal Home Loan Bank		2,000			3,000
Common stock dividends		(188	)		(187	)
Preferred stock dividends		(53	)		(53	)
Net cash provided by (used in) financing activities		12,820			(5,549	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(2,154	)		(197	)
CASH AND CASH EQUIVALENTS AT JANUARY 1		32,872			30,066
CASH AND CASH EQUIVALENTS AT MARCH 31	$	30,718		$	29,869

 
 
See accompanying notes to unaudited consolidated financial statements.

6

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Principles of Consolidation

The accompanying consolidated financial statements include the accounts of AmeriServ Financial, Inc. (the Company) and its wholly-owned subsidiaries, AmeriServ Financial Bank (the Bank), AmeriServ Trust and Financial Services Company (the Trust Company), and AmeriServ Life Insurance Company (AmeriServ Life). The Bank is a Pennsylvania state-chartered full service bank with 17 locations in Pennsylvania. The Trust Company offers a complete range of trust and financial services and administers assets valued at $1.9 billion that are not reported on the Company’s balance sheet at March 31, 2015. AmeriServ Life is a captive insurance company that engages in underwriting as a reinsurer of credit life and disability insurance.

In addition, the Parent Company is an administrative group that provides support in such areas as audit, finance, investments, loan review, general services, and marketing. Significant intercompany accounts and transactions have been eliminated in preparing the consolidated financial statements.

2. Basis of Preparation

The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. In the opinion of management, all adjustments consisting of normal recurring entries considered necessary for a fair presentation have been included. They are not, however, necessarily indicative of the results of consolidated operations for a full-year.

For further information, refer to the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

3. Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update.

4. Earnings Per Common Share

Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are treated as retired for earnings per share purposes. Options to purchase 198,888 common shares, at exercise prices ranging from $2.98 to $4.70, and 8,625 common shares, at exercise prices ranging from $4.60 to $5.75, were outstanding as of March 31, 2015 and 2014, respectively, but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. Dividends on preferred shares are deducted from net income in the calculation of earnings per common share.

	Three months ended March 31,
	2015		2014
	(In thousands, except per share data)
Numerator:
Net income	$	1,369	$	930
Preferred stock dividends		53		53
Net income available to common shareholders	$	1,316	$	877

7

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

4. Earnings Per Common Share  – (continued)

	Three months ended March 31,
	2015		2014
	(In thousands, except per share data)
Denominator:
Weighted average common shares outstanding (basic)	$	18,851	$	18,786
Effect of stock options		58		118
Weighted average common shares outstanding (diluted)		18,909		18,904
Earnings per common share:
Basic	$	0.07	$	0.05
Diluted		0.07		0.05

5. Consolidated Statement of Cash Flows

On a consolidated basis, cash and cash equivalents include cash and due from depository institutions, interest-bearing deposits and short-term investments in money market funds. The Company made $331,000 in income tax payments in the first three months of 2015 as compared to $254,000 for the first three months of 2014. The Company made total interest payments of $1,750,000 in the first three months of 2015 compared to $1,756,000 in the same 2014 period. The Company had $107,000 non-cash transfers to other real estate owned (OREO) in the first three months of 2015 compared to no non-cash transfers in the same 2014 period.

6. Investment Securities

The cost basis and fair values of investment securities are summarized as follows (in thousands):

Investment securities available for sale (AFS):

	March 31, 2015
	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
US Agency	$	5,932	$	29	$	(13	)	$	5,948
US Agency mortgage-backed securities		97,964		3,385		(203	)		101,146
Corporate bonds		15,497		79		(137	)		15,439
Total	$	119,393	$	3,493	$	(353	)	$	122,533

Investment securities held to maturity (HTM):

	March 31, 2015
	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
US Agency mortgage-backed securities	$	12,120	$	449	$	(15	)	$	12,554
Taxable municipal		3,362		116		—			3,478
Corporate bonds and other securities		3,995		4		(18	)		3,981
Total	$	19,477	$	569	$	(33	)	$	20,013

8

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

6. Investment Securities  – (continued)

Investment securities available for sale (AFS):

	December 31, 2014
	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
US Agency	$	5,931	$	21	$	(46	)	$	5,906
US Agency mortgage-backed securities		102,888		3,197		(317	)		105,768
Corporate bonds		15,497		61		(122	)		15,436
Total	$	124,316	$	3,279	$	(485	)	$	127,110

Investment securities held to maturity (HTM):

	December 31, 2014
	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
US Agency mortgage-backed securities	$	12,481	$	395	$	(50	)	$	12,826
Taxable municipal		3,364		74		(24	)		3,414
Corporate bonds and other securities		3,995		6		(28	)		3,973
Total	$	19,840	$	475	$	(102	)	$	20,213

Maintaining investment quality is a primary objective of the Company’s investment policy which, subject to certain limited exceptions, prohibits the purchase of any investment security below a Moody’s Investor’s Service or Standard & Poor’s rating of “A.” At March 31, 2015, 83.5% of the portfolio was rated “AAA” as compared to 84.1% at December 31, 2014. 4.0% of the portfolio was either rated below “A” or unrated at March 31, 2015. The Company has no exposure to subprime mortgage loans in the investment portfolio. At March 31, 2015, the Company’s consolidated investment securities portfolio had an effective duration of approximately 2.22 years.

The Company sold no AFS securities for the first three months of 2015. Total proceeds from the sale of AFS securities for the first three months of 2014 were $2.8 million resulting in $62,000 of gross investment security gains and $5,000 of gross security losses.

The book value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits, and certain Federal Home Loan Bank borrowings was $106,810,000 at March 31, 2015 and $104,780,000 at December 31, 2014.

The following tables present information concerning investments with unrealized losses as of March 31, 2015 and December 31, 2014 (in thousands):

Total investment securities:

	March 31, 2015
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
US Agency	$	—	$	—		$	2,887	$	(13	)	$	2,887	$	(13	)
US Agency mortgage-backed securities		2,347		(4	)		12,934		(214	)		15,281		(218	)
Corporate bonds and other securities		1,970		(27	)		9,870		(128	)		11,840		(155	)
Total	$	4,317	$	(31	)	$	25,691	$	(355	)	$	30,008	$	(386	)

9

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

6. Investment Securities  – (continued)

Total investment securities:

	December 31, 2014
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
US Agency	$	996	$	(4	)	$	2,858	$	(42	)	$	3,854	$	(46	)
US Agency mortgage-backed securities		2,826		(13	)		20,408		(354	)		23,234		(367	)
Taxable municipal		150		(1	)		988		(23	)		1,138		(24	)
Corporate bonds and other securities		2,960		(43	)		8,891		(107	)		11,851		(150	)
Total	$	6,932	$	(61	)	$	33,145	$	(526	)	$	40,077	$	(587	)

The unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. There are 29 positions that are considered temporarily impaired at March 31, 2015. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value.

Contractual maturities of securities at March 31, 2015 are shown below (in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties.

Total investment securities:

	March 31, 2015
	Available for sale				Held to maturity
	Cost Basis		Fair Value		Cost Basis		Fair Value
Within 1 year	$	2,000	$	2,013	$	2,000	$	1,995
After 1 year but within 5 years		13,456		13,545		1,000		986
After 5 years but within 10 years		18,833		19,198		3,794		3,866
After 10 years but within 15 years		53,023		54,550		1,162		1,168
Over 15 years		32,081		33,227		11,521		11,998
Total	$	119,393	$	122,533	$	19,477	$	20,013

7. Loans

The loan portfolio of the Company consists of the following (in thousands):

	March 31, 2015		December 31, 2014
Commercial	$	151,293	$	139,126
Commercial loans secured by real estate		420,077		410,329
Real estate-mortgage		259,884		258,616
Consumer		19,143		19,009
Loans, net of unearned income	$	850,397	$	827,080

10

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

7. Loans  – (continued)

Loan balances at March 31, 2015 and December 31, 2014 are net of unearned income of $582,000 and $554,000, respectively. Real estate-construction loans comprised 3.2% and 3.5% of total loans, net of unearned income at March 31, 2015 and December 31, 2014, respectively.

8. Allowance for Loan Losses

The following tables summarize the rollforward of the allowance for loan losses by portfolio segment for the three month periods ending March 31, 2015 and 2014 (in thousands).

	Three months ended March 31, 2015,
	Balance at December 31, 2014		Charge-Offs			Recoveries		Provision (Credit)			Balance at March 31, 2015
Commercial	$	3,262	$	(121	)	$	6	$	10		$	3,157
Commercial loans secured by real estate		3,902		—			42		143			4,087
Real estate-mortgage		1,310		(103	)		30		67			1,304
Consumer		190		(47	)		9		39			191
Allocation for general risk		959		—			—		(9	)		950
Total	$	9,623	$	(271	)	$	87	$	250		$	9,689

	Three months ended March 31, 2014,
	Balance at December 31, 2013		Charge-Offs			Recoveries		Provision (Credit)			Balance at March 31, 2014
Commercial	$	2,844	$	(72	)	$	50	$	243		$	3,065
Commercial loans secured by real estate		4,885		(66	)		153		(310	)		4,662
Real estate-mortgage		1,260		(43	)		14		42			1,273
Consumer		136		(36	)		5		34			139
Allocation for general risk		979		—			—		(9	)		970
Total	$	10,104	$	(217	)	$	222	$	—		$	10,109

As a result of successful ongoing problem credit resolution efforts, the Company achieved further asset quality improvements in 2015 and 2014, specifically in the commercial loans secured by real estate category. There was no provision for loan losses in the first quarter of 2014, but the Company recorded a $250,000 provision in the first quarter of 2015 which was needed to support loan growth.

The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio (in thousands).

	At March 31, 2015
	Commercial		Commercial Loans Secured by Real Estate		Real Estate- Mortgage		Consumer		Allocation for General Risk		Total
Loans:
Individually evaluated for impairment	$	204	$	813	$	—	$	—			$	1,017
Collectively evaluated for impairment		151,089		419,264		259,884		19,143				849,380
Total loans	$	151,293	$	420,077	$	259,884	$	19,143			$	850,397
Allowance for loan losses:
Specific reserve allocation	$	31	$	471	$	—	$	—	$	—	$	502
General reserve allocation		3,126		3,616		1,304		191		950		9,187
Total allowance for loan losses	$	3,157	$	4,087	$	1,304	$	191	$	950	$	9,689

11

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8. Allowance for Loan Losses  – (continued)

	At December 31, 2014
	Commercial		Commercial Loans Secured by Real Estate		Real Estate- Mortgage		Consumer		Allocation for General Risk		Total
Loans:
Individually evaluated for impairment	$	—	$	989	$	—	$	—			$	989
Collectively evaluated for impairment		139,126		409,340		258,616		19,009				826,091
Total loans	$	139,126	$	410,329	$	258,616	$	19,009			$	827,080
Allowance for loan losses:
Specific reserve allocation	$	—	$	520	$	—	$	—	$	—	$	520
General reserve allocation		3,262		3,382		1,310		190		959		9,103
Total allowance for loan losses	$	3,262	$	3,902	$	1,310	$	190	$	959	$	9,623

The segments of the Company’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The loan segments used are consistent with the internal reports evaluated by the Company’s management and Board of Directors to monitor risk and performance within various segments of its loan portfolio and therefore, no further disaggregation into classes is necessary. The overall risk profile for the commercial loan segment is impacted by non-owner occupied CRE loans, which include loans secured by non-owner occupied nonfarm nonresidential properties, as a meaningful but declining portion of the commercial portfolio is centered in these types of accounts. The residential mortgage loan segment is comprised of first lien amortizing residential mortgage loans and home equity loans secured by residential real estate. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts.

Management evaluates for possible impairment any individual loan in the commercial or commercial real estate segment with a loan balance in excess of $100,000 that is in nonaccrual status or classified as a Troubled Debt Restructure (TDR). Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loans are part of a larger relationship that is impaired, or are classified as a TDR.

Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs for collateral dependent loans. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition.

12

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8. Allowance for Loan Losses  – (continued)

The need for an updated appraisal on collateral dependent loans is determined on a case-by-case basis. The useful life of an appraisal or evaluation will vary depending upon the circumstances of the property and the economic conditions in the marketplace. A new appraisal is not required if there is an existing appraisal which, along with other information, is sufficient to determine a reasonable value for the property and to support an appropriate and adequate allowance for loan losses. At a minimum, annual documented reevaluation of the property is completed by the Bank’s internal Assigned Risk Department to support the value of the property.

When reviewing an appraisal associated with an existing collateral real estate dependent transaction, the Bank’s internal Assigned Risk Department must determine if there have been material changes to the underlying assumptions in the appraisal which affect the original estimate of value. Some of the factors that could cause material changes to reported values include:

• the passage of time;

• the volatility of the local market;

• the availability of financing;

• natural disasters;

• the inventory of competing properties;

• new improvements to, or lack of maintenance of, the subject property or competing properties upon physical inspection by the Bank;

• changes in underlying economic and market assumptions, such as material changes in current and projected vacancy, absorption rates, capitalization rates, lease terms, rental rates, sales prices, concessions, construction overruns and delays, zoning changes, etc.; and/or

• environmental contamination.

The value of the property is adjusted to appropriately reflect the above listed factors and the value is discounted to reflect the value impact of a forced or distressed sale, any outstanding senior liens, any outstanding unpaid real estate taxes, transfer taxes and closing costs that would occur with sale of the real estate. If the Assigned Risk Department personnel determine that a reasonable value cannot be derived based on available information, a new appraisal is ordered. The determination of the need for a new appraisal, versus completion of a property valuation by the Bank’s Assigned Risk Department personnel rests with the Assigned Risk Department and not the originating account officer.

The following tables present impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary (in thousands).

	March 31, 2015
	Impaired Loans with Specific Allowance				Impaired Loans with no Specific Allowance		Total Impaired Loans
	Recorded Investment		Related Allowance		Recorded Investment		Recorded Investment		Unpaid Principal Balance
Commercial	$	204	$	31	$	—	$	204	$	204
Commercial loans secured by real estate		813		471		—		813		900
Total impaired loans	$	1,017	$	502	$	—	$	1,017	$	1,104

13

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8. Allowance for Loan Losses  – (continued)

	December 31, 2014
	Impaired Loans with Specific Allowance				Impaired Loans with no Specific Allowance		Total Impaired Loans
	Recorded Investment		Related Allowance		Recorded Investment		Recorded Investment		Unpaid Principal Balance
Commercial loans secured by real estate	$	989	$	520	$	—	$	989	$	1,069
Total impaired loans	$	989	$	520	$	—	$	989	$	1,069

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands).

	Three months ended March 31,
	2015		2014
Average loan balance:
Commercial	$	102	$	—
Commercial loans secured by real estate		901		2,623
Average investment in impaired loans	$	1,003	$	2,623
Interest income recognized:
Commercial	$	1	$	—
Commercial loans secured by real estate		6		1
Interest income recognized on a cash basis on impaired loans	$	7	$	1

Management uses a nine point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized. The first five “Pass” categories are aggregated, while the Pass-6, Special Mention, Substandard and Doubtful categories are disaggregated to separate pools. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due, or for which any portion of the loan represents a specific allocation of the allowance for loan losses are placed in Substandard or Doubtful.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process, which dictates that, at a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $250,000 within a 12-month period. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, delinquency, or death occurs to raise awareness of a possible credit event. The Company’s commercial relationship managers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. Risk ratings are assigned by the account officer, but require independent review and rating concurrence from the Company’s internal Loan Review Department. The Loan Review Department is an experienced independent function which reports directly to the Board’s Audit Committee. The scope of commercial portfolio coverage by the Loan Review Department is defined and presented to the Audit Committee for approval on an annual basis. The approved scope of coverage for 2015 required review of a minimum range of 50% to 55% of the commercial loan portfolio.

14

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8. Allowance for Loan Losses  – (continued)

In addition to loan monitoring by the account officer and Loan Review Department, the Company also requires presentation of all credits rated Pass-6 with aggregate balances greater than $1,000,000, all credits rated Special Mention or Substandard with aggregate balances greater than $250,000, and all credits rated Doubtful with aggregate balances greater than $100,000 on an individual basis to the Company’s Loan Loss Reserve Committee on a quarterly basis. Additionally, the Asset Quality Task Force, which is a group comprised of senior level personnel, meets monthly to monitor the status of problem loans.

The following table presents the classes of the commercial loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system (in thousands).

	March 31, 2015
	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	146,481	$	678	$	4,001	$	133	$	151,293
Commercial loans secured by real estate		413,868		2,665		3,271		273		420,077
Total	$	560,349	$	3,343	$	7,272	$	406	$	571,370

	December 31, 2014
	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	132,665	$	161	$	6,164	$	136	$	139,126
Commercial loans secured by real estate		406,195		620		3,238		276		410,329
Total	$	538,860	$	781	$	9,402	$	412	$	549,455

It is generally the policy of the bank that the outstanding balance of any residential mortgage loan that exceeds 90-days past due as to principal and/or interest is transferred to non-accrual status and an evaluation is completed to determine the fair value of the collateral less selling costs, unless the balance is minor. A charge down is recorded for any deficiency balance determined from the collateral evaluation. The remaining non-accrual balance is reported as impaired with no specific allowance. It is the policy of the bank that the outstanding balance of any consumer loan that exceeds 90-days past due as to principal and/or interest is charged off. The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolios (in thousands).

	March 31, 2015
	Performing		Non-Performing
Real estate-mortgage	$	258,010	$	1,874
Consumer		19,143		—
Total	$	277,243	$	1,874

	December 31, 2014
	Performing		Non-Performing
Real estate-mortgage	$	257,199	$	1,417
Consumer		19,009		—
Total	$	276,208	$	1,417

15

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8. Allowance for Loan Losses  – (continued)

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans (in thousands).

	March 31, 2015
	Current		30 – 59 Days Past Due		60 – 89 Days Past Due		90 Days Past Due		Total Past Due		Total Loans		90 Days Past Due and Still Accruing
Commercial	$	151,293	$	—	$	—	$	—	$	—	$	151,293	$	—
Commercial loans secured by real estate		419,483		358		236		—		594		420,077		—
Real estate-mortgage		256,781		1,374		461		1,268		3,103		259,884
Consumer		19,118		23		2		—		25		19,143		—
Total	$	846,675	$	1,755	$	699	$	1,268	$	3,722	$	850,397	$	—

	December 31, 2014
	Current		30 – 59 Days Past Due		60 – 89 Days Past Due		90 Days Past Due		Total Past Due		Total Loans		90 Days Past Due and Still Accruing
Commercial	$	139,126	$	—	$	—	$	—	$	—	$	139,126	$	—
Commercial loans secured by real estate		410,049		280		—		—		280		410,329
Real estate-mortgage		255,021		2,196		332		1,067		3,595		258,616		—
Consumer		18,927		74		8		—		82		19,009		—
Total	$	823,123	$	2,550	$	340	$	1,067	$	3,957	$	827,080	$	—

An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans.

Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are complemented by consideration of other qualitative factors.

Management tracks the historical net charge-off activity at each risk rating grade level for the entire commercial portfolio and at the aggregate level for the consumer, residential mortgage and small business portfolios. A historical charge-off factor is calculated utilizing a rolling 12 consecutive historical quarters for the commercial portfolios. This historical charge-off factor for the consumer, residential mortgage and small business portfolios are based on a three year historical average of actual loss experience.

The Company uses a comprehensive methodology and procedural discipline to maintain an ALL to absorb inherent losses in the loan portfolio. The Company believes this is a critical accounting policy since it involves significant estimates and judgments. The allowance consists of three elements: 1) an allowance established on specifically identified problem loans, 2) formula driven general reserves established for loan categories based upon historical loss experience and other qualitative factors which include delinquency, non-performing and TDR loans, loan trends, economic trends, concentrations of credit, trends in loan volume, experience and depth of management, examination and audit results, effects of any changes in lending policies, and trends in policy, financial information, and documentation exceptions, and 3) a general risk reserve which provides support for variance from our assessment of the previously listed qualitative factors, provides protection against credit risks resulting from other inherent risk factors contained in the Company’s loan portfolio, and recognizes the model and estimation risk associated with the specific and formula driven

16

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8. Allowance for Loan Losses  – (continued)

allowances. The qualitative factors used in the formula driven general reserves are evaluated quarterly (and revised if necessary) by the Company’s management to establish allocations which accommodate each of the listed risk factors.

“Pass” rated credits are segregated from “Criticized” and “Classified” credits for the application of qualitative factors.

Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL.

9. Non-performing Assets Including Troubled Debt Restructurings (TDR)

The following table presents information concerning non-performing assets including TDR (in thousands, except percentages):

	March 31, 2015			December 31, 2014
Non-accrual loans
Commercial loans secured by real estate	$	272		$	778
Real estate-mortgage		1,874			1,417
Total		2,146			2,195
Other real estate owned
Commercial loans secured by real estate		384			384
Real estate-mortgage		179			128
Total		563			512
TDR’s not in non-accrual		337			210
Total non-performing assets including TDR	$	3,046		$	2,917
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned		0.36	%		0.35	%

The Company had no loans past due 90 days or more for the periods presented which were accruing interest.

The following table sets forth, for the periods indicated, (1) the gross interest income that would have been recorded if non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination if held for part of the period, (2) the amount of interest income actually recorded on such loans, and (3) the net reduction in interest income attributable to such loans (in thousands).

	Three months ended March 31,
	2015		2014
Interest income due in accordance with original terms	$	24	$	33
Interest income recorded		—		—
Net reduction in interest income	$	24	$	33

Consistent with accounting and regulatory guidance, the Bank recognizes a TDR when the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Bank’s objective in offering a TDR is to increase the probability of repayment of the borrower’s loan.

17

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

9. Non-performing Assets Including Troubled Debt Restructurings (TDR)  – (continued)

To be considered a TDR, both of the following criteria must be met:

• the borrower must be experiencing financial difficulties; and

• the Bank, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that would not otherwise be considered.

Factors that indicate a borrower is experiencing financial difficulties include, but are not limited to:

• the borrower is currently in default on their loan(s);

• the borrower has filed for bankruptcy;

• the borrower has insufficient cash flows to service their loan(s); and

• the borrower is unable to obtain refinancing from other sources at a market rate similar to rates available to a non-troubled debtor.

Factors that indicate that a concession has been granted include, but are not limited to:

• the borrower is granted an interest rate reduction to a level below market rates for debt with similar risk; or

• the borrower is granted a material maturity date extension, or extension of the amortization plan to provide payment relief. For purposes of this policy, a material maturity date extension will generally include any maturity date extension, or the aggregate of multiple consecutive maturity date extensions, that exceed 120 days. A restructuring that results in an insignificant delay in payment, i.e. 120 days or less, is not necessarily a TDR. Insignificant payment delays occur when the amount of the restructured payments subject to the delay is insignificant relative to the unpaid principal or collateral value, and will result in an insignificant shortfall in the originally scheduled contractual amount due, and/or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the original maturity or the original amortization.

The determination of whether a restructured loan is a TDR requires consideration of all of the facts and circumstances surrounding the modification. No single factor is determinative of whether a restructuring is a TDR. An overall general decline in the economy or some deterioration in a borrower’s financial condition does not automatically mean that the borrower is experiencing financial difficulty. Accordingly, determination of whether a modification is a TDR involves a large degree of judgment.

The following table details the loans modified as TDRs during the three month period ended March 31, 2015 (dollars in thousands).

Loans in accrual status	# of Loans		Current Balance		Concession Granted
Commercial loan		1	$	204		Extension of maturity date

The following table details the loans modified as TDRs during the three month period ended March 31, 2014 (dollars in thousands).

Loans in non-accrual status	# of Loans		Current Balance		Concession Granted
Commercial loan secured by real estate		1	$	265		Extension of maturity date

In all instances where loans have been modified in troubled debt restructurings the pre- and post-modified balances are the same. The specific ALL reserve for loans modified as TDR’s was $502,000 and $365,000 as of March 31, 2015 and 2014, respectively. All TDR’s are individually evaluated for impairment and a related allowance is recorded, as needed.

18

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

9. Non-performing Assets Including Troubled Debt Restructurings (TDR)  – (continued)

Once a loan is classified as a TDR, this classification will remain until documented improvement in the financial position of the borrower supports confidence that all principal and interest will be paid according to terms. Additionally, the customer must have re-established a track record of timely payments according to the restructured contract terms for a minimum of six consecutive months prior to consideration for removing the loan from non-accrual TDR status. However, a loan will continue to be on non-accrual status until, consistent with our policy, the borrower has made a minimum of an additional six consecutive monthly payments in accordance with the terms of the loan.

The Company had no loans that were classified as TDR’s or were subsequently modified during each 12-month period prior to the reporting periods preceding January 1, 2015 and January 1, 2014, respectively, and subsequently defaulted during these reporting periods.

The Company is unaware of any additional loans which are required to either be charged-off or added to the non-performing asset totals disclosed above.

10. Federal Home Loan Bank Borrowings

Total Federal Home Loan Bank (FHLB) borrowings and advances consist of the following (in thousands, except percentages):

	At March 31, 2015
Type	Maturing		Amount		Weighted Average Rate
Open Repo Plus		Overnight	$	27,219		0.33	%
Advances		2015		4,000		0.52
		2016		12,000		0.81
		2017		12,000		1.06
		2018		10,000		1.51
		2019 and over		6,000		1.83
Total advances				44,000		1.15
Total FHLB borrowings			$	71,219		0.84	%

	At December 31, 2014
Type	Maturing		Amount		Weighted Average Rate
Open Repo Plus		Overnight	$	38,880		0.27	%
Advances		2015		4,000		0.52
		2016		12,000		0.81
		2017		12,000		1.06
		2018		10,000		1.51
		2019 and over		4,000		1.88
Total advances				42,000		1.12
Total FHLB borrowings			$	80,880		0.71	%

The rate on Open Repo Plus advances can change daily, while the rates on the advances are fixed until the maturity of the advance.

19

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

11. Preferred Stock

On August 11, 2011, pursuant to the Small Business Lending Fund (SBLF), the Company issued and sold to the US Treasury 21,000 shares of its Senior Non-Cumulative Perpetual Preferred Stock, Series E (Series E Preferred Stock) for the aggregate proceeds of $21 million. The SBLF is a voluntary program sponsored by the US Treasury that encourages small business lending by providing capital to qualified community banks at favorable rates. The Company used the proceeds from the Series E Preferred Stock issued to the US Treasury to repurchase all 21,000 shares of its outstanding preferred shares previously issued to the US Treasury under the TARP Capital Purchase Program.

The Series E Preferred Stock has an aggregate liquidation preference of approximately $21 million and qualifies as Tier 1 Capital for regulatory purposes. The terms of the Series E Preferred Stock provide for the payment of non-cumulative dividends on a quarterly basis. The dividend rate, as a percentage of the liquidation amount, may fluctuate while the Series E Preferred Stock is outstanding based upon changes in the level of “qualified small business lending” (“QSBL”) by the Bank from its average level of QSBL at each of the four quarter ends leading up to June 30, 2010 (the “Baseline”) as follows:

DIVIDEND PERIOD ANNUALIZED		ANNUALIZED DIVIDEND RATE
BEGINNING	ENDING
August 11, 2011	December 31, 2011	5.0%
January 1, 2012	December 31, 2014	1.0% to 5.0%
January 1, 2014	February 7, 2016	1.0% to 7.0%(1)
February 8, 2016	Redemption	9.0%(2)

(1) Between January 1, 2014 and February 7, 2016, the Company’s dividend rate was fixed at 1% based upon the level of percentage change in QSBL between September 30, 2013 and the Baseline.

(2) Beginning on February 8, 2016, the dividend rate will be fixed at nine percent (9%) per annum.

As of September 30, 2013, the Company had increased its QSBL to a level that reduced the dividend rate to 1%. Accordingly, this 1% rate will continue through February 7, 2016.

As long as shares of Series E Preferred Stock remain outstanding, we may not pay dividends to our common shareholders (nor may we repurchase or redeem any shares of our common stock) during any quarter in which we fail to declare and pay dividends on the Series E Preferred Stock and for the next three quarters following such failure. In addition, under the terms of the Series E Preferred Stock, we may only declare and pay dividends on our common stock (or repurchase shares of our common stock), if, after payment of such dividend, the dollar amount of our Tier 1 capital would be at least ninety percent (90%) of Tier 1 capital as of June 30, 2011, excluding any charge-offs and redemptions of the Series E Preferred Stock (the “Tier 1 Dividend Threshold”). The Tier 1 Dividend Threshold is subject to reduction, beginning January 1, 2014, based upon the extent by which, if at all, the QSBL at September 30, 2013 has increased over the Baseline.

We may redeem the Series E Preferred Stock at any time at our option, at a redemption price of 100% of the liquidation amount plus accrued but unpaid dividends, subject to the approval of our federal banking regulator.

20

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

12. Accumulated Other Comprehensive Loss

The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2015 and 2014 (in thousands):

	Three months ended March 31, 2015								Three months ended March 31, 2014
	Net Unrealized Gains and Losses on Investment Securities AFS(1)		Defined Benefit Pension Items(1)			Total(1)			Net Unrealized Gains and Losses on Investment Securities AFS(1)			Defined Benefit Pension Items(1)			Total(1)
Beginning balance	$	1,843	$	(8,745	)	$	(6,902	)	$	1,043		$	(6,918	)	$	(5,875	)
Other comprehensive income before reclassifications		229		432			661			339			256			595
Amounts reclassified from accumulated other comprehensive loss		—		—			—			(37	)		3			(34	)
Net current period other comprehensive income		229		432			661			302			259			561
Ending balance	$	2,072	$	(8,313	)	$	(6,241	)	$	1,345		$	(6,659	)	$	(5,314	)

(1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets.

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the three months ended March 31, 2015 and 2014 (in thousands):

	Amount reclassified from accumulated other comprehensive loss(1)					Affected line item in the statement of operations
Details about accumulated other comprehensive loss components	For the three months ended March 31, 2015		For the three months ended March 31, 2014
Unrealized gains and losses on sale of securities
	$	—	$	(57	)		Net realized gains on investment securities
		—		20			Provision for income tax expense
	$	—	$	(37	)		Net of tax
Amortization of defined benefit items(2)
Amortization of prior year service cost	$	—	$	5			Salaries and employee benefits
		—		(2	)		Provision for income tax expense
	$	—	$	3			Net income
Total reclassifications for the period	$	—	$	(34	)		Net income

(1) Amounts in parentheses indicate credits.

(2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 16 for additional details).

21

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

13. Regulatory Capital

The Company is subject to various capital requirements administered by the federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. For March 31, 2015, the final Basel III rules require the Company to maintain minimum amounts and ratios of common equity Tier I capital (as defined in the regulations) to risk-weighted assets (RWA) (as defined). Additionally under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. For December 31, 2014, regulatory capital ratios were calculated under Basel I rules. As of March 31, 2015, the Company was categorized as “Well Capitalized” under the regulatory framework for prompt corrective action promulgated by the Federal Reserve. The Company believes that no conditions or events have occurred that would change this conclusion as of such date. To be categorized as Well Capitalized, the Company must maintain minimum Total Capital, Common Equity Tier 1 Capital, Tier 1 Capital, and Tier 1 leverage ratios as set forth in the table. Additionally, while not a regulatory capital ratio, the Company’s tangible common equity ratio was 7.64% at March 31, 2015 (in thousands, except ratios).

	At March 31, 2015
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital (To RWA)
Consolidated	$	131,581		14.68	%	$	71,688		8.00	%	$	89,609		10.00	%
AmeriServ Financial Bank		105,692		11.92			70,925		8.00			88,657		10.00
Common Equity Tier 1 Capital (To RWA)
Consolidated		88,966		9.93			40,324		4.50			58,246		6.50
AmeriServ Financial Bank		95,106		10.73			39,896		4.50			57,627		6.50
Tier 1 Capital (To RWA)
Consolidated		120,995		13.50			53,766		6.00			71,688		8.00
AmeriServ Financial Bank		95,106		10.73			53,194		6.00			70,925		8.00
Tier 1 Capital (To Average Assets) leverage Consolidated		120,995		11.24			43,072		4.00			53,839		5.00
AmeriServ Financial Bank		95,106		9.06			41,988		4.00			52,485		5.00

22

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

13. Regulatory Capital  – (continued)

	At December 31, 2014
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital (To RWA)
Consolidated	$	131,497		14.80	%	$	71,066		8.00	%	$	88,833		10.00	%
AmeriServ Financial Bank		106,084		12.07			70,305		8.00			87,881		10.00
Tier 1 Capital (To RWA)
Consolidated		120,992		13.62			35,533		4.00			53,300		6.00
AmeriServ Financial Bank		95,579		10.88			35,153		4.00			52,729		6.00
Tier 1 Capital (To Average Assets)
Consolidated		120,992		11.34			42,662		4.00			53,327		5.00
AmeriServ Financial Bank		95,579		9.19			41,608		4.00			52,010		5.00

On July 2, 2013, the Board of Governors of the Federal Reserve System approved final rules that substantially amend the regulatory risk-based capital rules applicable to the Company and the Bank. The final rules implement the “Basel III” regulatory capital reforms, as well as certain changes required by the Dodd-Frank Act, which will require institutions to, among other things, have more capital and a higher quality of capital by increasing the minimum regulatory capital ratios, and requiring capital buffers. The new rules became effective for the Company and the Bank on January 1, 2015, and have an implementation period that stretches to January 1, 2019. For a more detailed discussion see the Capital Resources section of the MD&A.

14. Segment Results

The financial performance of the Company is also monitored by an internal funds transfer pricing profitability measurement system which produces line of business results and key performance measures. The Company’s major business units include retail banking, commercial banking, trust, and investment/parent. The reported results reflect the underlying economics of the business segments. Expenses for centrally provided services are allocated based upon the cost and estimated usage of those services. The businesses are match-funded and interest rate risk is centrally managed and accounted for within the investment/parent business segment. The key performance measure the Company focuses on for each business segment is net income contribution.

Retail banking includes the deposit-gathering branch franchise and lending to both individuals and small businesses. Lending activities include residential mortgage loans, direct consumer loans, and small business commercial loans. Commercial banking to businesses includes commercial loans, and CRE loans. The trust segment contains our wealth management businesses which include the Trust Company, West Chester Capital Advisors (WCCA), our registered investment advisory firm and financial services. Wealth management includes personal trust products and services such as personal portfolio investment management, estate planning and administration, custodial services and pre-need trusts. Also, institutional trust products and services such as 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts are included in this segment. Financial services include the sale of mutual funds, annuities, and insurance products. The wealth management businesses also includes the union collective investment funds, namely the ERECT and BUILD funds which are designed to use union pension dollars in construction projects that utilize union labor. The investment/parent includes the net results of investment securities and borrowing activities, general corporate expenses not allocated to the business segments, interest expense on guaranteed junior subordinated deferrable interest debentures, and centralized interest rate risk management. Inter-segment revenues were not material.

23

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

14. Segment Results  – (continued)

The contribution of the major business segments to the Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014 were as follows (in thousands):

	Three months ended March 31, 2015						March 31, 2015
	Total revenue			Net income (loss)			Total assets
Retail banking	$	6,524		$	659		$	374,490
Commercial banking		4,738			1,291			586,916
Trust		2,167			380			5,125
Investment/Parent		(783	)		(961	)		136,885
Total	$	12,646		$	1,369		$	1,103,416

	Three months ended March 31, 2014						December 31, 2014
	Total revenue			Net income (loss)			Total assets
Retail banking	$	6,117		$	348		$	376,009
Commercial banking		4,327			1,096			563,690
Trust		2,114			308			5,015
Investment/Parent		(501	)		(822	)		144,549
Total	$	12,057		$	930		$	1,089,263

15. Commitments and Contingent Liabilities

The Company had various outstanding commitments to extend credit approximating $181.5 million and $188.0 million along with standby letters of credit of $7.8 million and $7.2 million as of March 31, 2015 and December 31, 2014, respectively. The Company’s exposure to credit loss in the event of nonperformance by the other party to these commitments to extend credit and standby letters of credit is represented by their contractual amounts. The Bank uses the same credit and collateral policies in making commitments and conditional obligations as for all other lending.

Additionally, the Company is also subject to a number of asserted and unasserted potential claims encountered in the normal course of business. In the opinion of the Company, neither the resolution of these claims nor the funding of these credit commitments will have a material adverse effect on the Company’s consolidated financial position, results of operation or cash flows.

16. Pension Benefits

The Company has a noncontributory defined benefit pension plan covering certain employees who work at least 1,000 hours per year. The participants shall have a vested interest in their accrued benefit after five full years of service. The benefits of the plan are based upon the employee’s years of service and average annual earnings for the highest five consecutive calendar years during the final ten year period of employment. Plan assets are primarily debt securities (including US Treasury and Agency securities, corporate notes and bonds), listed common stocks (including shares of AmeriServ Financial, Inc. common stock which is limited to 10% of the plan’s assets), mutual funds, and short-term cash equivalent instruments. The net periodic pension cost for the three months ended March 31, 2015 and 2014 were as follows (in thousands):

	Three months ended March 31,
	2015		2014
Components of net periodic benefit cost
Service cost	$	400	$	430
Interest cost		325		331

24

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

16. Pension Benefits  – (continued)

	Three months ended March 31,
	2015			2014
Expected return on plan assets	$	(525	)	$	(498	)
Amortization of prior year service cost		—			(5	)
Recognized net actuarial loss		300			272
Net periodic pension cost	$	500		$	530

The Company implemented a soft freeze of its defined benefit pension plan to provide that non-union employees hired on or after January 1, 2013 and union employees hired on or after January 1, 2014 are not eligible to participate in the pension plan. Instead, such employees are eligible to participate in a qualified 401(k) plan. This change was made to help reduce pension costs in future periods.

17. Disclosures about Fair Value Measurements

The following disclosures establish a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined within this hierarchy are as follows:

Level I:  Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level II:  Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.

Level III:  Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

Assets and Liability Measured on a Recurring Basis

Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the US Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.

The following tables present the assets reported on the Consolidated Balance Sheets at their fair value as of March 31, 2015 and December 31, 2014, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Assets and liability measured at fair value on a recurring basis are summarized below (in thousands):

	Fair Value Measurements at March 31, 2015 Using
	Total		(Level 1)		(Level 2)		(Level 3)
US Agency securities	$	5,948	$	—	$	5,948	$	—
US Agency mortgage-backed securities		101,146		—		101,146		—
Corporate bonds		15,439		—		15,439		—

	Fair Value Measurements at December 31, 2014 Using
	Total		(Level 1)		(Level 2)		(Level 3)
US Agency securities	$	5,906	$	—	$	5,906	$	—
US Agency mortgage-backed securities		105,768		—		105,768		—
Corporate bonds		15,436		—		15,436		—

25

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

17. Disclosures about Fair Value Measurements  – (continued)

Assets Measured on a Non-recurring Basis

Loans considered impaired are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. As detailed in the allowance for loan loss footnote, impaired loans are reported at fair value of the underlying collateral if the repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on observable market data which at times are discounted. At March 31, 2015, impaired loans with a carrying value of $1.0 million were reduced by a specific valuation allowance totaling $502,000 resulting in a net fair value of $515,000. At December 31, 2014, impaired loans with a carrying value of $989,000 were reduced by a specific valuation allowance totaling $520,000 million resulting in a net fair value of $469,000.

Other real estate owned is measured at fair value based on appraisals, less cost to sell at the date of foreclosure. Valuations are periodically performed by management. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO.

Assets measured at fair value on a non-recurring basis are summarized below (in thousands, except range data):

	Fair Value Measurements at March 31, 2015 Using
	Total		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	515	$	—	$	—	$	515
Other real estate owned		563		—		—		563

	Fair Value Measurements at December 31, 2014 Using
	Total		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	469	$	—	$	—	$	469
Other real estate owned		512		—		—		512

March 31, 2015	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value Estimate	Valuation Techniques	Unobservable Input	Range (Wgtd Ave)
Impaired loans	$515	Appraisal of collateral(1),(3)	Appraisal adjustments(2) Liquidation expenses	0% to 35% (30%) 1% to 15% (10%)
Other real estate owned	563	Appraisal of collateral(1),(3)	Appraisal adjustments(2) Liquidation expenses	0% to 48% (38%) 1% to 20% (10%)

December 31, 2014	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value Estimate	Valuation Techniques	Unobservable Input	Range (Wgtd Ave)
Impaired loans	$469	Appraisal of collateral(1),(3)	Appraisal adjustments(2) Liquidation expenses	0% to 37% (30%) 1% to 15% (10%)
Other real estate owned	512	Appraisal of collateral(1),(3)	Appraisal adjustments(2) Liquidation expenses	47% to 83% (55%) 1% to 61% (9%)

(1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

26

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

17. Disclosures about Fair Value Measurements  – (continued)

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

For the Company, as for most financial institutions, approximately 90% of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimates and present value calculations were used by the Company for the purpose of this disclosure.

Fair values have been determined by the Company using independent third party valuations that use the best available data (Level 2) and an estimation methodology (Level 3) the Company believes is suitable for each category of financial instruments. Management believes that cash, cash equivalents, and loans and deposits with floating interest rates have estimated fair values which approximate the recorded book balances. The estimation methodologies used, the estimated fair values based on US GAAP measurements, and recorded book balances at March 31, 2015 and December 31, 2014, were as follows (in thousands):

	March 31, 2015
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL ASSETS:
Cash and cash equivalents	$	30,718	$	30,718	$	30,718	$	—	$	—
Investment securities – AFS		122,533		122,533		—		122,533		—
Investment securities – HTM		19,477		20,013		—		17,031		2,982
Regulatory stock		5,626		5,626		5,626		—		—
Loans held for sale		3,575		3,675		3,675		—		—
Loans, net of allowance for loan loss and unearned income		840,708		845,904		—		—		845,904
Accrued interest income receivable		3,300		3,300		3,300		—		—
Bank owned life insurance		37,388		37,388		37,388		—		—
FINANCIAL LIABILITIES:
Deposits with no stated maturities	$	587,825	$	587,825	$	587,825	$	—	$	—
Deposits with stated maturities		304,851		307,634		—		—		307,634
Short-term borrowings		27,219		27,219		27,219		—		—
All other borrowings		57,085		61,695		—		—		61,695
Accrued interest payable		1,545		1,545		1,545		—		—

	December 31, 2014
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL ASSETS:
Cash and cash equivalents	$	32,872	$	32,872	$	32,872	$	—	$	—
Investment securities – AFS		127,110		127,110		—		127,110		—
Investment securities – HTM		19,840		20,213		—		17,241		2,972
Regulatory stock		6,173		6,173		6,173		—		—
Loans held for sale		5,051		5,127		5,127		—		—
Loans, net of allowance for loan loss and unearned income		817,457		819,935		—		—		819,935
Accrued interest income receivable		3,127		3,127		3,127		—		—
Bank owned life insurance		37,417		37,417		37,417		—		—

27

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

17. Disclosures about Fair Value Measurements  – (continued)

	December 31, 2014
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL LIABILITIES:
Deposits with no stated maturities	$	568,625	$	568,625	$	568,625	$	—	$	—
Deposits with stated maturities		301,256		304,744		—		—		304,744
Short-term borrowings		38,880		38,880		38,880		—		—
All other borrowings		55,085		59,256		—		—		59,256
Accrued interest payable		1,706		1,706		1,706		—		—

The fair value of cash and cash equivalents, regulatory stock, accrued interest income receivable, short-term borrowings, and accrued interest payable are equal to the current carrying value.

The fair value of investment securities is equal to the available quoted market price for similar securities. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the US Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The Level 3 securities are valued by discounted cash flows using the US Treasury rate for the remaining term of the securities.

Loans held for sale are priced individually at market rates on the day that the loan is locked for commitment with an investor. All loans in the held for sale account conform to Fannie Mae underwriting guidelines, with the specific intent of the loan being purchased by an investor at the predetermined rate structure. Loans in the held for sale account have specific delivery dates that must be executed to protect the pricing commitment (typically a 30, 45, or 60 day lock period).

The net loan portfolio has been valued using a present value discounted cash flow. The discount rate used in these calculations is based upon the treasury yield curve adjusted for non-interest operating costs, credit loss, current market prices and assumed prepayment risk.

The fair value of bank owned life insurance is based upon the cash surrender value of the underlying policies and matches the book value.

Deposits with stated maturities have been valued using a present value discounted cash flow with a discount rate approximating current market for similar assets and liabilities. Deposits with no stated maturities have an estimated fair value equal to both the amount payable on demand and the recorded book balance.

The fair value of all other borrowings is based on the discounted value of contractual cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities.

Commitments to extend credit and standby letters of credit are financial instruments generally not subject to sale, and fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, is not considered material for disclosure. The contractual amounts of unfunded commitments are presented in Note 15.

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. The Company’s remaining assets and liabilities which are not considered financial instruments have not been valued differently than has been customary under historical cost accounting.

28

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (“M.D. & A.”)

.....2015 FIRST QUARTER SUMMARY OVERVIEW.....AmeriServ Financial, Inc. reported first quarter 2015 net income available to common shareholders of $1,316,000, or $0.07 per diluted common share. 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. Our improved financial performance in the first quarter of 2015 resulted from a combination of revenue growth and non-interest expense reduction. Specifically both loans outstanding and deposits reached franchise records as of March 31, 2015. The AmeriServ Trust and Financial Services subsidiary announced that net income for the first quarter of 2015 had surpassed the first quarter of 2014 by 27.9%.

The goal at AmeriServ has been to not only continue to grow in the market place but to improve our overall productivity so as to benefit our shareholders. This has not been an easy road but during the first quarter of 2015 the growth in the marketplace continued while AmeriServ non-interest expense levels declined by $328,000 or 3.1% from the first quarter of 2014. The challenge now is to maintain and improve further on this level of performance.

On March 24, 2015, the AmeriServ Financial, Inc. Board of Directors appointed the interim management team to permanent positions. Jeffrey A. Stopko is now President and Chief Executive Officer of AmeriServ Financial, Inc. Jeff has served as Chief Financial Officer and Chief Administrative Officer during his over 20 years with AmeriServ. The Board considers the period of transition at an end and is looking forward to working with Jeff and his new team.

AmeriServ was pleased that the first quarter of 2015 showed signs of positive results. That is encouraging to everyone here. But we also understand that one improved quarter is not enough and we are aware that this improved quarter falls short of where we need to be. There will be no complacency rather there will be a determination to use this quarter as a foundation upon which to build a better record in the future. Moving forward, we will focus on successfully executing our business plans to further improve profitability in 2015 while continuing to maintain excellent asset quality.

THREE MONTHS ENDED MARCH 31, 2015 VS. THREE MONTHS ENDED MARCH 31, 2014

.....PERFORMANCE OVERVIEW.....The following table summarizes some of the Company's key performance indicators (in thousands, except per share and ratios).

	Three months ended March 31, 2015			Three months ended March 31, 2014
Net income	$	1,369		$	930
Net income available to common shareholders		1,316			877
Diluted earnings per share		0.07			0.05
Return on average assets (annualized)		0.51	%		0.36	%
Return on average equity (annualized)		4.80	%		3.30	%

The Company reported first quarter 2015 net income available to common shareholders of $1,316,000, or $0.07 per diluted common share. 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. Solid loan and deposit growth in our community banking business contributed to an increase of $409,000 or 4.8% in net interest income. 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.

29

.....NET INTEREST INCOME AND MARGIN.....The Company's net interest income represents the amount by which interest income on average earning assets exceeds interest paid on average interest bearing liabilities. Net interest income is a primary source of the Company's earnings, and it is affected by interest rate fluctuations as well as changes in the amount and mix of average earning assets and average interest bearing liabilities. The following table compares the Company's net interest income performance for the first quarter of 2015 to the first quarter of 2014 (in thousands, except percentages):

	Three months ended March 31, 2015			Three months ended March 31, 2014			$ Change		% Change
Interest income	$	10,523		$	10,095		$	428		4.2	%
Interest expense		1,589			1,570			19		1.2
Net interest income	$	8,934		$	8,525		$	409		4.8
Net interest margin		3.57	%		3.56	%		0.01		N/M

N/M — not meaningful

The Company’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. The Company’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. 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, 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. This loan growth reflects the successful results of the Company’s sales calling efforts, with an emphasis on generating commercial loans and owner occupied commercial real estate loans particularly through its loan production offices. Interest income in 2015 has also benefitted from an increased dividend of $101,000 from the FHLB of Pittsburgh and reduced premium amortization on mortgage backed securities due to slower mortgage prepayment speeds. Overall, total interest income has increased by $428,000 or 4.2% in the first quarter of 2015.

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’s proactive efforts to reduce deposit costs. Even with this reduction in deposit costs, the Company still experienced growth in deposits which reflects the loyalty of our core deposit base and ongoing efforts to cross sell new loan customers into deposit products. 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. The Company is pleased that a meaningful portion of this deposit growth occurred in non-interest bearing demand deposit accounts. 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.

The table that follows provides an analysis of net interest income on a tax-equivalent basis for the three month periods ended March 31, 2015 and March 31, 2014 setting forth (i) average assets, liabilities, and stockholders' equity, (ii) interest income earned on interest earning assets and interest expense paid on interest bearing liabilities, (iii) average yields earned on interest earning assets and average rates paid on interest bearing liabilities, (iv) the Company’s interest rate spread (the difference between the average yield earned on interest earning assets and the average rate paid on interest bearing liabilities), and (v) the Company’s net interest margin (net interest income as a percentage of average total interest earning assets). For purposes of these tables, loan balances do include non-accrual loans, and interest income on loans includes loan fees or amortization of such fees which have been deferred, as well as interest recorded on certain non-accrual loans as cash is received. Additionally, a tax rate of 34% is used to compute tax-equivalent yields.

30

Three months ended March 31 (In thousands, except percentages)

	2015									2014
	Average Balance			Interest Income/ Expense			Yield/Rate			Average Balance			Interest Income/ Expense			Yield/Rate
Interest earning assets:
Loans and loans held for sale, net of unearned income	$	841,612		$	9,461			4.50	%	$	787,306		$	9,038			4.60	%
Interest bearing deposits		11,296			2			0.07			5,881			1			0.05
Short-term investment in money market funds		2,017			2			0.40			4,272			2			0.44
Investment securities – AFS		127,386			913			2.88			144,055			924			2.57
Investment securities – HTM		20,266			150			2.97			18,734			136			2.90
Total investment securities		147,652			1,063			2.89			162,789			1,060			2.60
Total interest earning assets/interest income		1,002,577			10,528			4.22			960,248			10,101			4.23
Non-interest earning assets:
Cash and due from banks		17,293									15,970
Premises and equipment		12,953									13,149
Other assets		70,301									69,840
Allowance for loan losses		(9,673	)								(10,142	)
TOTAL ASSETS	$	1,093,451								$	1,049,065
Interest bearing liabilities:
Interest bearing deposits:
Interest bearing demand	$	92,926		$	44			0.19	%	$	82,617		$	38			0.19	%
Savings		92,490			37			0.16			88,535			35			0.16
Money markets		232,542			180			0.31			228,715			192			0.34
Time deposits		306,050			913			1.21			303,140			946			1.27
Total interest bearing deposits		724,008			1,174			0.66			703,007			1,211			0.70
Short-term borrowings		13,484			10			0.31			29,633			19			0.25
Advances from Federal Home Loan Bank		43,581			125			1.16			26,710			60			0.92
Guaranteed junior subordinated deferrable interest debentures		13,085			280			8.57			13,085			280			8.57
Total interest bearing liabilities/interest expense		794,158			1,589			0.81			772,435			1,570			0.82
Non-interest bearing liabilities:
Demand deposits		172,559									152,811
Other liabilities		11,052									9,459
Shareholders' equity		115,682									114,360
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,093,451								$	1,049,065
Interest rate spread								3.41									3.41
Net interest income/Net interest margin					8,939			3.57	%					8,531			3.56	%
Tax-equivalent adjustment					(5	)								(6	)
Net Interest Income				$	8,934								$	8,525

31

.....PROVISION FOR LOAN LOSSES.....The Company recorded a $250,000 provision for loan losses in the first quarter of 2015 compared to a zero provision for loan losses in the first quarter of 2014. 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. 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. Overall, the Company continued to maintain outstanding asset quality in the first quarter of 2015. At March 31, 2015, non-performing assets totaled $3.0 million, or only 0.36% of total loans. 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. 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.

.....NON-INTEREST INCOME.....Non-interest income for the first quarter of 2015 totaled $3.7 million and increased $180,000, or 5.1%, from the first quarter 2014 performance. Factors contributing to this higher level of non-interest income for the quarter included:

* a $176,000 increase in Bank Owned Life Insurance due to the receipt of a death claim during the quarter;

* a $90,000, or 89.1%, increase in gains on sale of loans held for sale due increased refinance activity; and

* a $57,000 reduction in gains realized on the sale of investment securities in the first quarter of 2015 as the Company took advantage of market opportunities to sell certain rapidly prepaying mortgage backed securities in the first quarter of 2014. The Company sold no securities in the first quarter of 2015.

.....NON-INTEREST EXPENSE.....Non-interest expense for the first quarter of 2015 totaled $10.4 million and decreased by $328,000, or 3.1%, from the prior year’s first quarter. Factors contributing to the lower non-interest expense in the quarter included:

* a $241,000, or 3.8%, decrease 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; and

* a $97,000 decrease in professional fees due to lower legal fees and recruitment costs in the first quarter of 2015.

.....INCOME TAX EXPENSE.....The Company recorded an income tax expense of $617,000, or an effective tax rate of 31.1%, in the first three months of 2015 compared to income tax expense of $389,000, or an effective tax rate of 29.5%, for the first three months of 2014. The higher effective tax rate was primarily due to increased earnings in the first quarter of 2015. The Company’s deferred tax asset was $8.9 million at March 31, 2015 and relates primarily to the allowance for loan losses and AMT carryforwards.

.....SEGMENT RESULTS..... Retail banking’s net income contribution was $659,000 in the first quarter of 2015 and was up by $311,000 from the net income contribution for the same 2014 period. This increase in earnings in 2015 was due to the previously discussed increase in residential mortgage banking related revenues and BOLI income, both of which more than offset a lower level of deposit service charges. In addition to net interest income benefiting from the higher loan balances, this segment was also favorably impacted by a higher level of total deposits which causes the funding benefit for deposits provided by this segment to be higher.

The commercial banking segment reported net income contributions of $1.3 million in the first quarter of 2015 which was $195,000 better than the 2014 results for the same period. This improved net income contribution was due to higher net interest income as a result of the previously discussed strong growth in commercial and commercial real estate loans over the past year. This growth in net interest income more than offset an increased loan loss provision. Additionally, total non-interest expense was also lower due to cost savings achieved from the profitability improvement program implemented last year.

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The trust segment reported a net income of $380,000 for the first quarter of 2015. When compared to the same period in 2014, this represented a $72,000 increase for the quarter. Both trust fee income and financial services income improved due to successful business development efforts. Non-interest revenue for this segment was negatively impacted by client attrition at WCCA. However, non-interest expense was down due to reduced personnel cost at WCCA which mitigated a significant portion of the revenue decline.

The investment/parent segment reported net loss of $961,000 in the first quarter of 2015 which increased by $139,000 from the 2014 quarter comparison. The increase between years reflects the benefit of gains realized on investment security sales in 2014 as no gains were generated in 2015. However, overall this segment has felt the most earnings pressure from the continued low interest rate environment.

.....BALANCE SHEET.....The Company's total consolidated assets were $1.103 billion at March 31, 2015, which grew by $14.2 million, or 1.3%, from the December 31, 2014 asset level. The growth in assets was due to a $23.3 million, or 2.8%, increase in net loans during the first three months of 2015. This loan increase was partially offset by a $4.9 million decrease in investment securities and a $2.2 million decline in cash and cash equivalents as the Company utilized these items to help fund the loan growth.

Total deposits increased by $22.8 million, or 2.6%, in the first three months of 2014. The Company used these deposits to fund loans. Total FHLB borrowings are down by $9.7 million since year-end 2014 and there has also been a shift from short term borrowings to term advances. The FHLB term advances with maturities between three and five years grew by $2 million and now total $44 million as the Company has utilized these advances to help manage interest rate risk in a rising rate environment. The Company’s total shareholders’ equity increased by $1.9 million over the first three months of 2015 due to the Company’s net retention of earnings after dividend payments and a reduction in accumulated other comprehensive loss. The Company continues to be considered well capitalized for regulatory purposes with a total capital ratio of 14.68%, and a common equity tier 1 capital ratio of 9.93% at March 31, 2015. (See the discussion of the new Basel III capital requirements under the “Capital Resources” section.) The Company’s book value per common share was $5.06, its tangible book value per common share was $4.42, and its tangible common equity to tangible assets ratio was 7.64% at March 31, 2015.

.....LOAN QUALITY.....The following table sets forth information concerning the Company’s loan delinquency, non-performing assets, and classified assets (in thousands, except percentages):

	March 31, 2015			December 31, 2014			March 31, 2014
Total accruing loan delinquency (past due 30 to 89 days)	$	1,901		$	2,643		$	2,177
Total non-accrual loans		2,146			2,196			2,179
Total non-performing assets including TDR*		3,046			2,917			3,274
Accruing loan delinquency, as a percentage of total loans, net of unearned income		0.22	%		0.32	%		0.28	%
Non-accrual loans, as a percentage of total loans, net of unearned income		0.25			0.27			0.28
Non-performing assets, as a percentage of total loans, net of unearned income, and other real estate owned		0.36			0.35			0.42
Non-performing assets as a percentage of total assets		0.28			0.27			0.31
As a percent of average loans, net of unearned income:
Annualized net charge-offs		0.09			0.11			(0.01	)
Annualized provision for loan losses		0.12			0.05			—
Total classified loans (loans rated substandard or doubtful)	$	9,143		$	11,229		$	15,819

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* Non-performing assets are comprised of (i) loans that are on a non-accrual basis, (ii) loans that are contractually past due 90 days or more as to interest and principal payments, (iii) performing loans classified as a troubled debt restructuring and (iv) other real estate owned.

The Company continued to maintain strong asset quality in the first three months of 2015 as evidenced by low levels of non-accrual loans, non-performing assets, classified loans, and loan delinquency levels that continue to be well below 1% of total loans. We continue to closely monitor the loan portfolio given the slow recovery in the economy and the number of relatively large-sized commercial and commercial real estate loans within the portfolio. As of March 31, 2015, the 25 largest credits represented 25.2% of total loans outstanding.

.....ALLOWANCE FOR LOAN LOSSES.....The following table sets forth the allowance for loan losses and certain ratios for the periods ended (in thousands, except percentages):

	March 31, 2015			December 31, 2014			March 31, 2014
Allowance for loan losses	$	9,689		$	9,623		$	10,109
Allowance for loan losses as a percentage of each of the following total loans, net of unearned income		1.14	%		1.16	%		1.28	%
total accruing delinquent loans (past due 30 to 89 days)		509.68			364.09			464.35
total non-accrual loans		451.49			438.21			447.90
total non-performing assets		318.09			329.89			308.77

The Company recorded a $250,000 loan loss provision in the first three months of 2015 and had no loan loss provision for the allowance for loan losses into earnings during the same period in 2014 due to the previously discussed sustained improvement in asset quality. The Company did experience a relatively low level of net charge-offs in the first three months of 2014. As a result, the balance in the allowance for loan losses has increased modestly in the first three months of 2015 while the Company has been able to still maintain strong coverage of non-accrual loans and non-performing assets as indicated in the above table.

.....LIQUIDITY.....The Company’s liquidity position has been strong during the last several years. Our core retail deposit base has grown over the past five years and has been more than adequate to fund the Company’s operations. Cash flow from maturities, prepayments and amortization of securities was also used to help fund loan growth over the past few years. We strive to operate our loan to deposit ratio in a range of 85% to 100%. At March 31, 2015, the Company’s loan to deposit ratio was 95.3%. We are optimistic that we can increase the loan to deposit ratio in the future given current commercial loan pipelines, continued growth of our loan production offices and our focus on small business lending.

Liquidity can be analyzed by utilizing the Consolidated Statement of Cash Flows. Cash and cash equivalents decreased by $2.2 million from December 31, 2014 to March 31, 2015, due to $17.8 million of cash used in investing activities. This more than offset the $2.8 million of cash provided by operating activities and $12.8 million of cash provided by financing activities. Within investing activities, cash provided from investment security maturities was $5.2 million. Cash advanced for new loan fundings and purchases (excluding residential mortgages sold in the secondary market) totaled $72.5 million and was $23.5 million higher than the $49.0 million of cash received from loan principal payments and participations. Within financing activities, deposit growth provided $22.7 million of cash. Total borrowings decreased as paydowns of short-term advances exceeded purchases of FHLB term advances by $9.7 million. At March 31, 2015, the Company had immediately available $354 million of overnight borrowing capacity at the FHLB and $39 million of unsecured federal funds lines with correspondent banks.

The holding company had $18.3 million of cash, short-term investments, and investment securities at March 31, 2015. Additionally, dividend payments from our subsidiaries can also provide ongoing cash to the holding company. At March 31, 2015, our subsidiary Bank had $3.1 million of cash available for immediate dividends to the holding company under applicable regulatory formulas. Overall, we believe that the holding company has strong liquidity to meet its trust preferred debt service requirements, preferred stock dividends,

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and its common stock dividends, all of which should approximate $2.1 million over the next twelve months. The most recent $0.01 dividend was announced on April 20, 2015 payable on May 18, 2015 to shareholders of record on May 4, 2015.

.....CAPITAL RESOURCES..... The Company meaningfully exceeds all regulatory capital ratios for each of the periods presented and is considered well capitalized. The common equity tier 1 ratio was 9.93%, the tier 1 capital ratio was 13.50%, and the total capital ratio was 14.68% at March 31, 2015. The Company’s tier 1 leverage was 11.24% at March 31, 2015. We anticipate that we will maintain our strong capital ratios throughout the remainder of 2015. Capital generated from earnings will be utilized to pay the SBLF preferred dividend, common stock cash dividend and will also support anticipated balance sheet growth. Additionally, we plan to retain excess cash to position the Company to redeem all or a portion of the SBLF Preferred stock when the rate increases from 1% to 9% in the first quarter of 2016. Our common dividend payout ratio for the first three months of 2015 was 14.3%.

On January 1, 2015, U.S. federal banking agencies implemented the new Basel III capital standards, which, similar to the previous standards, establish the minimum capital levels to be considered well-capitalized and revise the prompt corrective action requirements under banking regulations. The revisions from the previous standards include a revised definition of capital, the introduction of a minimum Common Equity Tier 1 capital ratio and changed risk weightings for certain assets. The implementation of the new rules will be phased in over a four year period ending January 1, 2019 with minimum capital requirements becoming increasingly more strict each year of the transition. The new minimum capital requirements for each ratio, both, initially on January 1, 2015 and at the end of the transition on January 1, 2019, are as follows: A common equity tier 1 capital ratio of 4.5% initially and 7.0% at January 1, 2019; a tier 1 capital ratio of 6.0% and 8.50%; a total capital ratio of 8.0% and 10.50%; and a tier 1 leverage ratio of 5.00% and 5.00%. Under the new rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer above its minimum risk-based capital requirements, which increases over the transition period, from 0.625% of total risk weighted assets in 2016 to 2.5% in 2019. The Company continues to be committed to maintaining strong capital levels that exceed regulatory requirements while also supporting balance sheet growth and providing a return to our shareholders.

.....INTEREST RATE SENSITIVITY.....The following table presents an analysis of the sensitivity inherent in the Company’s net interest income and market value of portfolio equity. The interest rate scenarios in the table compare the Company’s base forecast, which was prepared using a flat interest rate scenario, to scenarios that reflect immediate interest rate changes of 100 and 200 basis points. Note that we suspended the 200 basis point downward rate shock since it has little value due to the absolute low level of interest rates. Each rate scenario contains unique prepayment and repricing assumptions that are applied to the Company’s existing balance sheet that was developed under the flat interest rate scenario.

Interest Rate Scenario	Variability of Net Interest Income			Change in Market Value of Portfolio Equity
200bp increase		0.6	%		10.6	%
100bp increase		0.5			7.3
100bp decrease		(3.8	)		(14.8	)

The Company believes that its overall interest rate risk position is well controlled. The variability of net interest income is modestly positive in the upward rate shocks due to the Company’s short duration investment securities portfolio and scheduled repricing of loans tied to LIBOR or prime. Also, the Company expects that it will not have to reprice its core deposit accounts up as quickly when interest rates rise. The variability of net interest income is negative in the 100 basis point downward rate scenario as the Company has more exposure to assets repricing downward to a greater extent than liabilities due to the absolute low level of interest rates with the fed funds rate currently at 0.25%. The market value of portfolio equity increases in the upward rate shocks due to the improved value of the Company’s core deposit base. Negative variability of market value of portfolio equity occurs in the downward rate shock due to a reduced value for core deposits.

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.....OFF BALANCE SHEET ARRANGEMENTS.....The Company incurs off-balance sheet risks in the normal course of business in order to meet the financing needs of its customers. These risks derive from commitments to extend credit and standby letters of credit. Such commitments and standby letters of credit involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated financial statements. The Company had various outstanding commitments to extend credit approximating $181.5 million and standby letters of credit of $7.8 million as of March 31, 2015. The Company’s exposure to credit loss in the event of nonperformance by the other party to these commitments to extend credit and standby letters of credit is represented by their contractual amounts. The Company uses the same credit and collateral policies in making commitments and conditional obligations as for all other lending.

.....CRITICAL ACCOUNTING POLICIES AND ESTIMATES.....The accounting and reporting policies of the Company are in accordance with Generally Accepted Accounting Principles and conform to general practices within the banking industry. Accounting and reporting policies for the allowance for loan losses, goodwill, income taxes, and investment securities are deemed critical because they involve the use of estimates and require significant management judgments. Application of assumptions different than those used by the Company could result in material changes in the Company’s financial position or results of operation.

ACCOUNT — Allowance for Loan Losses
BALANCE SHEET REFERENCE — Allowance for loan losses
INCOME STATEMENT REFERENCE — Provision (credit) for loan losses
DESCRIPTION

The allowance for loan losses is calculated with the objective of maintaining reserve levels believed by management to be sufficient to absorb estimated probable credit losses. Management’s determination of the adequacy of the allowance is based on periodic evaluations of the credit portfolio and other relevant factors. However, this quarterly evaluation is inherently subjective as it requires material estimates, including, among others, likelihood of customer default, loss given default, exposure at default, the amounts and timing of expected future cash flows on impaired loans, value of collateral, estimated losses on consumer loans and residential mortgages, and general amounts for historical loss experience. This process also considers economic conditions, uncertainties in estimating losses and inherent risks in the various credit portfolios. All of these factors may be susceptible to significant change. Also, the allocation of the allowance for credit losses to specific loan pools is based on historical loss trends and management’s judgment concerning those trends.

Commercial and commercial real estate loans are the largest category of credits and the most sensitive to changes in assumptions and judgments underlying the determination of the allowance for loan loss. Approximately $7.2 million, or 75%, of the total allowance for loan losses at March 31, 2015 has been allocated to these two loan categories. This allocation also considers other relevant factors such as actual versus estimated losses, economic trends, delinquencies, levels of non-performing and TDR loans, concentrations of credit, trends in loan volume, experience and depth of management, examination and audit results, effects of any changes in lending policies and trends in policy, financial information and documentation exceptions. To the extent actual outcomes differ from management estimates, additional provision for loan losses may be required that would adversely impact earnings in future periods.

ACCOUNT — Goodwill
BALANCE SHEET REFERENCE — Goodwill
INCOME STATEMENT REFERENCE — Goodwill impairment
DESCRIPTION

The Company considers our accounting policies related to goodwill to be critical because the assumptions or judgment used in determining the fair value of assets and liabilities acquired in past acquisitions are subjective and complex. As a result, changes in these assumptions or judgment could have a significant impact on our financial condition or results of operations.

The fair value of acquired assets and liabilities, including the resulting goodwill, was based either on quoted market prices or provided by other third party sources, when available. When third party information was not available, estimates were made in good faith by management primarily through the use of internal cash flow modeling techniques. The assumptions that were used in the cash flow modeling were subjective

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and are susceptible to significant changes. The Company routinely utilizes the services of an independent third party that is regarded within the banking industry as an expert in valuing core deposits to monitor the ongoing value and changes in the Company’s core deposit base. These core deposit valuation updates are based upon specific data provided from statistical analysis of the Company’s own deposit behavior to estimate the duration of these non-maturity deposits combined with market interest rates and other economic factors.

Goodwill arising from business combinations represents the value attributable to unidentifiable intangible elements in the business acquired. The Company’s goodwill relates to value inherent in the banking and wealth management businesses, and the value is dependent upon the Company’s ability to provide quality, cost-effective services in the face of free competition from other market participants on a regional basis. This ability relies upon continuing investments in processing systems, the development of value-added service features and the ease of use of the Company’s services. As such, goodwill value is supported ultimately by revenue that is driven by the volume of business transacted and the loyalty of the Company’s deposit and customer base over a longer time frame. The quality and value of a Company’s assets is also an important factor to consider when performing goodwill impairment testing. A decline in earnings as a result of a lack of growth or the inability to deliver cost-effective value added services over sustained periods can lead to impairment of goodwill.

Goodwill which has an indefinite useful life is tested for impairment at least annually and written down and charged to results of operations only in periods in which the recorded value is more than the estimated fair value.

ACCOUNT — Income Taxes
BALANCE SHEET REFERENCE — Net deferred tax asset
INCOME STATEMENT REFERENCE — Provision for income tax expense
DESCRIPTION

The provision for income taxes is the sum of income taxes both currently payable and deferred. The changes in deferred tax assets and liabilities are determined based upon the changes in differences between the basis of assets and liabilities for financial reporting purposes and the basis of assets and liabilities as measured by the enacted tax rates that management estimates will be in effect when the differences reverse. This income tax review is completed on a quarterly basis.

In relation to recording the provision for income taxes, management must estimate the future tax rates applicable to the reversal of tax differences, make certain assumptions regarding whether tax differences are permanent or temporary and the related timing of the expected reversal. Also, estimates are made as to whether taxable operating income in future periods will be sufficient to fully recognize any gross deferred tax assets. If recovery is not likely, we must increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable. Alternatively, we may make estimates about the potential usage of deferred tax assets that decrease our valuation allowances. As of March 31, 2015, we believe that all of the deferred tax assets recorded on our balance sheet will ultimately be recovered and that no valuation allowances were needed.

In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We record an additional charge in our provision for taxes in the period in which we determine that the recorded tax liability is less than we expect the ultimate assessment to be.

ACCOUNT — Investment Securities
BALANCE SHEET REFERENCE — Investment securities
INCOME STATEMENT REFERENCE — Net realized gains (losses) on investment securities
DESCRIPTION

Available-for-sale and held-to-maturity securities are reviewed quarterly for possible other-than-temporary impairment. The review includes an analysis of the facts and circumstances of each individual investment

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such as the severity of loss, the length of time the fair value has been below cost, the expectation for that security’s performance, the creditworthiness of the issuer and the Company’s intent and ability to hold the security to recovery. A decline in value that is considered to be other-than-temporary is recorded as a loss within non-interest income in the Consolidated Statements of Operations. At March 31, 2015, the unrealized losses in the available-for-sale security portfolio were comprised of securities issued by government agencies or government sponsored agencies and certain high quality corporate securities. The Company believes the unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value.

.....FORWARD LOOKING STATEMENT.....

THE STRATEGIC FOCUS:

The challenge for the future is to improve earnings performance to peer levels through a disciplined focus on community banking and improving the profitability of our Trust Company. In accordance with our strategic plan, the Company will maintain its focus as a community bank delivering banking and trust services to the best of our ability and focus on further growing revenues by leveraging our strong capital base and infrastructure. This Company will not succumb to the lure of quick fixes and fancy financial gimmicks. It is our plan to continue to build the Company into a potent banking force in this region and in this industry. Our focus encompasses the following:

• Customer Service — It is the existing and prospective customer that the Company must satisfy. This means good products and fair prices. But it also means quick response time and professional competence. It means speedy problem resolution and a minimizing of bureaucratic frustrations. The Company is training and motivating its staff to meet these standards while providing customers with more banking options that involve leading technologies such as computers, smartphones, and tablets to conduct business.

• Revenue Growth — It is necessary for the Company to focus on growing revenues. This means loan growth, deposit growth and fee growth. It also means close coordination between all customer service areas so as many revenue producing products as possible can be presented to existing and prospective customers. The Company’s Strategic Plan contains action plans in each of these areas particularly on increasing loans through several loan production offices. There will be a particular focus on small business commercial lending. An examination of the peer bank database provides ample proof that a well-executed community banking business model can generate a reliable and rewarding revenue stream.

• Expense Rationalization — The Company remains focused on trying to reduce and rationalize expenses. This has not been a program of broad based cuts, but has been targeted so the Company stays strong but spends less. It is critical to be certain that future expenditures are directed to areas that are playing a positive role in the drive to improve revenues. The Company engaged a consulting firm that specializes in the areas of expense rationalization and profit improvement for community banks in 2014. This firm completed a thorough analysis of our business operations and practices. As a result of this project, the firm provided the Company with recommendations to reduce expenses and improve future profitability. Many of their recommendations have been evaluated and already implemented with further study being done on other recommendations scheduled throughout 2015. The Company expects that its payback on this project will be significant and presently believes that a minimum of $1 million of annual savings from this project will be realized in 2015.

This Form 10-Q contains various forward-looking statements and includes assumptions concerning the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates, intentions, operations, future results, and prospects, including statements that include the words “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan” or similar expressions. These

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forward-looking statements are based upon current expectations, are subject to risk and uncertainties and are applicable only as of the dates of such statements. Forward-looking statements involve risks, uncertainties and assumptions. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. You should not put undue reliance on any forward-looking statements. These statements speak only as of the date of this Form 10-Q, even if subsequently made available on our website or otherwise, and we undertake no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this Form 10-Q. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company provides the following cautionary statement identifying important factors (some of which are beyond the Company’s control) which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions.

Such factors include the following: (i) the effect of changing regional and national economic conditions; (ii) the effects of trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve; (iii) significant changes in interest rates and prepayment speeds; (iv) inflation, stock and bond market, and monetary fluctuations; (v) credit risks of commercial, real estate, consumer, and other lending activities; (vi) changes in federal and state banking and financial services laws and regulations; (vii) the presence in the Company’s market area of competitors with greater financial resources than the Company; (viii) the timely development of competitive new products and services by the Company and the acceptance of those products and services by customers and regulators (when required); (ix) the willingness of customers to substitute competitors’ products and services for those of the Company and vice versa; (x) changes in consumer spending and savings habits; (xi) unanticipated regulatory or judicial proceedings; (xii) increase in dividend rate on the SBLF Preferred Stock and/or the inability to receive regulatory approval to redeem all or a portion of the SBLF Preferred Stock; and (xiii) other external developments which could materially impact the Company’s operational and financial performance.

The foregoing list of important factors is not exclusive, and neither such list nor any forward-looking statement takes into account the impact that any future acquisition may have on the Company and on any such forward-looking statement.

Item 3.....QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.....The Company manages market risk, which for the Company is primarily interest rate risk, through its asset liability management process and committee, see further discussion in Interest Rate Sensitivity section of the M.D. & A.

Item 4.....CONTROLS AND PROCEDURES.....(a) Evaluation of Disclosure Controls and Procedures. The Company’s management carried out an evaluation, under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and the operation of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2015, pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, the Chief Executive Officer along with the Chief Financial Officer concluded that the Company’s disclosure controls and procedures as of March 31, 2015, are effective.

(b) Changes in Internal Controls. There have been no changes in AmeriServ Financial Inc.’s internal controls over financial reporting that occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Part II Other Information

Item 1. Legal Proceedings

There are no material proceedings to which the Company or any of our subsidiaries are a party or by which, to the Company’s’ knowledge, we, or any of our subsidiaries, are threatened. All legal proceedings presently pending or threatened against the Company or our subsidiaries involve routine litigation incidental to our business or that of the subsidiary involved and are not material in respect to the amount in controversy.

Item 1A. Risk Factors

Not Applicable.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6. Exhibits

3.1	Amended and Restated Articles of Incorporation as amended through August 11, 2011, exhibit 3.1 to the Registration Statement on Form S-8 (File No. 333-176869) filed on September 16, 2011.
3.2	Bylaws, as amended and restated on December 30, 2014, Exhibit 3.2 to the Form 8-K filed on January 2, 2015.
15.1	Report of S.R. Snodgrass, P.C. regarding unaudited interim financial statement information.
15.2	Awareness Letter of S.R. Snodgrass, P.C.
31.1	Certification pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
101	The following information from AMERISERV FINANCIAL, INC.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, formatted in XBRL (eTensible Business Reporting Language): (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Income (unaudited), (iv) Consolidated Statements of Cash Flows (unaudited), and (iv) Notes to the Unaudited Consolidated Financial Statements.

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AmeriServ Financial, Inc. Registrant
Date: May 8, 2015	/s/ Jeffrey A. Stopko Jeffrey A. Stopko President and Chief Executive Officer
Date: May 8, 2015	/s/ Michael D. Lynch Michael D. Lynch Senior Vice President and Chief Financial Officer

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EX-15.1

Exhibit 15.1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Audit Committee
AmeriServ Financial, Inc.

We have reviewed the accompanying consolidated balance sheet of AmeriServ Financial, Inc. and subsidiaries as of March 31, 2015, the related consolidated statements of operations and comprehensive income for the three-month periods ended March 31, 2015 and 2014, and the related consolidated statements of cash flows for the three-month periods ended March 31, 2015 and 2014. These consolidated financial statements are the responsibility of AmeriServ Financial, Inc.’s management.

We conducted our reviews in accordance with standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of AmeriServ Financial, Inc. and subsidiaries as of December 31, 2014, and the related consolidated statements of operations, comprehensive income, changes in stockholders’ equity, and cash flows for the year then ended (not presented herein); and in our report dated March 6, 2015, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2014, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived.

/s/ S.R. Snodgrass, P.C.

Wexford, Pennsylvania
May 8, 2015

EX-15.2

Exhibit 15.2

May 8, 2015

AmeriServ Financial, Inc.
216 Franklin Street
P.O. Box 520
Johnstown, Pennsylvania 15907-0520

We have reviewed, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the unaudited interim financial information of AmeriServ Financial, Inc. and subsidiaries for the three months ended March 31, 2015, as indicated in our report dated May 8, 2015; because we did not perform an audit, we expressed no opinion on that information.

We are aware that our report referred to above, which is included in your Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, is incorporated by reference in the following Registration Statements:

Registration Statement No. 333-176869 on Form S-8
Registration Statement No. 333-67600 on Form S-8
Registration Statement No. 033-53935 on Form S-8
Registration Statement No. 033-55845 on Form S-8
Registration Statement No. 033-55207 on Form S-8
Registration Statement No. 033-55211 on Form S-8
Registration Statement No. 333-129009 on Form S-3
Registration Statement No. 333-121215 on Form S-3
Registration Statement No. 333-120022 on Form S-3
Registration Statement No. 333-50225 on Form S-3
Registration Statement No. 033-56604 on Form S-3

We are also aware that the aforementioned report, pursuant to Rule 436(c) under the Securities Act of 1933, is not considered a part of the Registration Statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of that Act.

Sincerely,

/s/ S.R. Snodgrass, P.C.
Wexford, Pennsylvania

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER
PURSUANT TO RULES 13a-14 AND 15d-14 OF THE SECURITIES EXCHANGE ACT OF
1934 AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jeffrey A. Stopko, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AmeriServ Financial, Inc. (ASF);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of ASF as of, and for, the periods presented in this report;

4. ASF’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for ASF and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to ASF, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of ASF’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in ASF’s internal control over financial reporting that occurred during ASF’s most recent fiscal quarter (ASF’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, ASF’s internal control over financial reporting; and

5. ASF’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to ASF’s auditors and the audit committee of ASF’s board of directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect ASF’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in ASF’s internal control over financial reporting.

Date: May 8, 2015	/s/ Jeffrey A. Stopko Jeffrey A. Stopko President & CEO

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER
PURSUANT TO RULES 13a-14 AND 15d-14 OF THE SECURITIES EXCHANGE ACT OF
1934 AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael D. Lynch, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AmeriServ Financial, Inc. (ASF);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of ASF as of, and for, the periods presented in this report;

4. ASF’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for ASF and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to ASF, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of ASF’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in ASF’s internal control over financial reporting that occurred during ASF’s most recent fiscal quarter (ASF’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, ASF’s internal control over financial reporting; and

5. ASF’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to ASF’s auditors and the audit committee of ASF’s board of directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect ASF’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in ASF’s internal control over financial reporting.

Date: May 8, 2015	/s/ Michael D. Lynch Michael D. Lynch Senior Vice President & CFO

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AmeriServ Financial, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffrey A. Stopko, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

1). The Report fully complies with the requirements of section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

2). The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jeffrey A. Stopko

Jeffrey A. Stopko
President and
Chief Executive Officer

May 8, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AmeriServ Financial, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael D. Lynch, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

1). The Report fully complies with the requirements of section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

2). The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Michael D. Lynch

Michael D. Lynch
Senior Vice President and
Chief Financial Officer

May 8, 2015

XML

Consolidated Statement of Cash Flows (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract]
Income tax payments	$ 331,000	$ 254,000
Total interest payments	1,750,000	1,756,000
Non-cash transfers to other real estate owned	$ 107,000

XML

Non-performing Assets Including Troubled Debt Restructurings (Non-performing Assets Including TDR) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Non-performing assets including TDR
Non-accrual loans	$ 2,146	$ 2,195
Other real estate owned	563	512
TDR's not in non-accrual	337	210
Total non-performing assets including TDR	3,046	2,917
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned	0.36%	0.35%
Commercial loans secured by real estate [Member]
Non-performing assets including TDR
Non-accrual loans	272	778
Other real estate owned	384	384
Real estate-mortgage [Member]
Non-performing assets including TDR
Non-accrual loans	1,874	1,417
Other real estate owned	$ 179	$ 128

XML

Allowance for Loan Losses (Impaired Loans by Class) (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	$ 1,017,000	$ 989,000
Related Allowance	502,000	520,000
Unpaid Principal Balance	1,104,000	1,069,000
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	204,000
Unpaid Principal Balance	204,000
Commercial loans secured by real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	813,000	989,000
Unpaid Principal Balance	900,000	1,069,000
Impaired Loans with Specific Allowance [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	1,017,000	989,000
Related Allowance	502,000	520,000
Impaired Loans with Specific Allowance [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	204,000
Related Allowance	31,000
Impaired Loans with Specific Allowance [Member] | Commercial loans secured by real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	813,000	989,000
Related Allowance	471,000	520,000
Impaired Loans with No Specific Allowance [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment
Impaired Loans with No Specific Allowance [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment
Impaired Loans with No Specific Allowance [Member] | Commercial loans secured by real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment

XML

Disclosures about Fair Value Measurements (Fair Value of Financial Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
FINANCIAL ASSETS: Carrying Value
Cash and cash equivalents	$ 30,718	$ 32,872	$ 29,869	$ 30,066
Investment securities - HTM	19,477	19,840
Regulatory stock	5,626	6,173
Loans held for sale	3,575	5,051
Loans, net of allowance for loan loss and unearned income	840,708	817,457
Accrued interest income receivable	3,300	3,127
Bank owned life insurance	37,388	37,417
Cash and cash equivalents	30,718	32,872
Investment securities - AFS	122,533	127,110
Investment securities - HTM	20,013	20,213
Regulatory stock	5,626	6,173
Loans held for sale	3,675	5,127
Loans, net of allowance for loan loss and unearned income	845,904	819,935
Accrued interest income receivable	3,300	3,127
Bank owned life insurance	37,388	37,417
FINANCIAL LIABILITIES: Carrying Value
Deposits with no stated maturities	587,825	568,625
Deposits with stated maturities	304,851	301,256
Short-term borrowings	27,219	38,880
All other borrowings	57,085	55,085
Accrued interest payable	1,545	1,706
Deposits with no stated maturities	587,825	568,625
Deposits with stated maturities	307,634	304,744
Short-term borrowings	27,219	38,880
All other borrowings	61,695	59,256
Accrued interest payable	1,545	1,706
Level 1 [Member]
FINANCIAL ASSETS: Carrying Value
Cash and cash equivalents	30,718	32,872
Investment securities - AFS
Investment securities - HTM
Regulatory stock	5,626	6,173
Loans held for sale	3,675	5,127
Loans, net of allowance for loan loss and unearned income
Accrued interest income receivable	3,300	3,127
Bank owned life insurance	37,388	37,417
FINANCIAL LIABILITIES: Carrying Value
Deposits with no stated maturities	587,825	568,625
Deposits with stated maturities
Short-term borrowings	27,219	38,880
All other borrowings
Accrued interest payable	1,545	1,706
Level 2 [Member]
FINANCIAL ASSETS: Carrying Value
Cash and cash equivalents
Investment securities - AFS	122,533	127,110
Investment securities - HTM	17,031	17,241
Regulatory stock
Loans held for sale
Loans, net of allowance for loan loss and unearned income
Accrued interest income receivable
Bank owned life insurance
FINANCIAL LIABILITIES: Carrying Value
Deposits with no stated maturities
Deposits with stated maturities
Short-term borrowings
All other borrowings
Accrued interest payable
Level 3 [Member]
FINANCIAL ASSETS: Carrying Value
Cash and cash equivalents
Investment securities - AFS
Investment securities - HTM	2,982	2,972
Regulatory stock
Loans held for sale
Loans, net of allowance for loan loss and unearned income	845,904	819,935
Accrued interest income receivable
Bank owned life insurance
FINANCIAL LIABILITIES: Carrying Value
Deposits with no stated maturities
Deposits with stated maturities	307,634	304,744
Short-term borrowings
All other borrowings	61,695	59,256
Accrued interest payable

XML

Non-performing Assets Including Troubled Debt Restructurings (Schedule of Interest Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Schedule of Interest Income
Interest income due in accordance with original terms	$ 24	$ 33
Interest income recorded
Net reduction in interest income	$ 24	$ 33

XML

Allowance for Loan Losses (Rollforward of the Allowance for Loan Losses by Portfolio Segment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period	$ 9,623	$ 10,104
Charge-offs	(271)	(217)
Recoveries	87	222
Provision (Credit)	250
Balance at end of period	9,689	10,109
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period	3,262	2,844
Charge-offs	(121)	(72)
Recoveries	6	50
Provision (Credit)	10	243
Balance at end of period	3,157	3,065
Commercial loans secured by real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period	3,902	4,885
Charge-offs		(66)
Recoveries	42	153
Provision (Credit)	143	(310)
Balance at end of period	4,087	4,662
Real estate-mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period	1,310	1,260
Charge-offs	(103)	(43)
Recoveries	30	14
Provision (Credit)	67	42
Balance at end of period	1,304	1,273
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period	190	136
Charge-offs	(47)	(36)
Recoveries	9	5
Provision (Credit)	39	34
Balance at end of period	191	139
Allocation for general risk [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period	959	979
Charge-offs
Recoveries
Provision (Credit)	(9)	(9)
Balance at end of period	$ 950	$ 970

XML

Segment Results (Tables)

3 Months Ended

Mar. 31, 2015

Segment Results [Abstract]

Schedule of Segment Results

	Three months ended						March 31,
	March 31, 2015						2015
	Total revenue			Net income (loss)			Total assets
Retail banking	$	6,524		$	659		$	374,490
Commercial banking		4,738			1,291			586,916
Trust		2,167			380			5,125
Investment/Parent		(783	)		(961	)		136,885
Total	$	12,646		$	1,369		$	1,103,416

	Three months ended						December 31,
	March 31, 2014						2014
	Total revenue			Net income (loss)			Total assets
Retail banking	$	6,117		$	348		$	376,009
Commercial banking		4,327			1,096			563,690
Trust		2,114			308			5,015
Investment/Parent		(501	)		(822	)		144,549
Total	$	12,057		$	930		$	1,089,263

XML

Non-performing Assets Including Troubled Debt Restructurings (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Nonperforming Assets Including Troubled Debt Restructurings [Abstract]
Aggregate of multiple consecutive maturity date extensions delay in payment, days	120 days
Timely payments on contract terms for minimum consecutive months prior to consideration for removing loan from TDR status	6 months
Minimum consecutive months payment for removing the loan from non-accrual status	6 months
ALL reserve for TDR's	$ 502,000	$ 365,000

XML

Disclosures about Fair Value Measurements (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Disclosures about Fair Value Measurements [Abstract]
Carrying value of impaired loans	$ 1,017,000	$ 989,000
Specific valuation allowance	502,000	520,000
Net fair value of impaired loans	$ 515,000	$ 469,000
Assets and liabilities considered financial instruments, percentage	90.00%

XML

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2015

Investment Securities [Abstract]

Schedule of Cost Basis and Fair Values of Investment Securities

Investment securities available for sale (AFS):

	March 31, 2015
			Gross		Gross
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
US Agency	$	5,932	$	29	$	(13	)	$	5,948
US Agency mortgage- backed  securities		97,964		3,385		(203	)		101,146
Corporate bonds		15,497		79		(137	)		15,439
Total	$	119,393	$	3,493	$	(353	)	$	122,533

Investment securities held to maturity (HTM):

	March 31, 2015
			Gross		Gross
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
US Agency mortgage- backed securities	$	12,120	$	449	$	(15	)	$	12,554
Taxable municipal		3,362		116		-			3,478
Corporate bonds and other securities		3,995		4		(18	)		3,981
Total	$	19,477	$	569	$	(33	)	$	20,013

Investment securities available for sale (AFS):

	December 31, 2014
			Gross		Gross
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
US Agency	$	5,931	$	21	$	(46	)	$	5,906
US Agency mortgage- backed  securities		102,888		3,197		(317	)		105,768
Corporate bonds		15,497		61		(122	)		15,436
Total	$	124,316	$	3,279	$	(485	)	$	127,110

Investment securities held to maturity (HTM):

	December 31, 2014
			Gross		Gross
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
US Agency mortgage- backed securities	$	12,481	$	395	$	(50	)	$	12,826
Taxable municipal		3,364		74		(24	)		3,414
Corporate bonds and other securities		3,995		6		(28	)		3,973
Total	$	19,840	$	475	$	(102	)	$	20,213

Schedule of Information Concerning Investments with Unrealized Losses

Total investment securities:

	March 31, 2015
	Less than 12 months					12 months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
US Agency	$	-	$	-		$	2,887	$	(13	)	$	2,887	$	(13	)
US Agency mortgage- backed securities		2,347		(4	)		12,934		(214	)		15,281		(218	)
Corporate bonds and other securities		1,970		(27	)		9,870		(128	)		11,840		(155	)
Total	$	4,317	$	(31	)	$	25,691	$	(355	)	$	30,008	$	(386	)

Total investment securities:

	December 31, 2014
	Less than 12 months					12 months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
US Agency	$	996	$	(4	)	$	2,858	$	(42	)	$	3,854	$	(46	)
US Agency mortgage- backed securities		2,826		(13	)		20,408		(354	)		23,234		(367	)
Taxable municipal		150		(1	)		988		(23	)		1,138		(24	)
Corporate bonds and other securities		2,960		(43	)		8,891		(107	)		11,851		(150	)
Total	$	6,932	$	(61	)	$	33,145	$	(526	)	$	40,077	$	(587	)

Schedule of Contractual Maturities of Securities

Total investment securities:

	March 31, 2015
	Available for sale				Held to maturity
	Cost Basis		Fair Value		Cost Basis		Fair Value
Within 1 year	$	2,000	$	2,013	$	2,000	$	1,995
After 1 year but within 5 years		13,456		13,545		1,000		986
After 5 years but within 10 years		18,833		19,198		3,794		3,866
After 10 years but within15 years		53,023		54,550		1,162		1,168
Over 15 years		32,081		33,227		11,521		11,998
Total	$	119,393	$	122,533	$	19,477	$	20,013

XML

Allowance for Loan Losses (Loan Portfolio Summarized by Categories) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	$ 571,370	$ 549,455
Commercial [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	151,293	139,126
Commercial loans secured by real estate [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	420,077	410,329
Pass [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	560,349	538,860
Pass [Member] | Commercial [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	146,481	132,665
Pass [Member] | Commercial loans secured by real estate [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	413,868	406,195
Special Mention [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	3,343	781
Special Mention [Member] | Commercial [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	678	161
Special Mention [Member] | Commercial loans secured by real estate [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	2,665	620
Substandard [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	7,272	9,402
Substandard [Member] | Commercial [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	4,001	6,164
Substandard [Member] | Commercial loans secured by real estate [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	3,271	3,238
Doubtful [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	406	412
Doubtful [Member] | Commercial [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	133	136
Doubtful [Member] | Commercial loans secured by real estate [Member]
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system
Loan portfolio	$ 273	$ 276

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Investment Securities (Contractual Maturities of Securities) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Contractual maturities of securities
Available for Sale, Cost Basis, Within 1 year	$ 2,000
Available for Sale, Cost Basis, After 1 year but within 5 years	13,456
Available for Sale, Cost Basis, After 5 years but within 10 years	18,833
Available for Sale, Cost Basis, After 10 years but within15 years	53,023
Available for Sale, Cost Basis, Over 15 years	32,081
Available for Sale, Cost Basis, Total	119,393
Available for Sale, Fair Value, Within 1 year	2,013
Available for Sale, Fair Value, After 1 year but within 5 years	13,545
Available for Sale, Fair Value, After 5 years but within 10 years	19,198
Available for Sale, Fair Value, After 10 years but within15 years	54,550
Available for Sale, Fair Value, Over 15 years	33,227
Available for Sale, Fair Value, Total	122,533	127,110
Held to Maturity, Cost Basis, Within 1 year	2,000
Held to Maturity, Cost Basis, After 1 year but within 5 years	1,000
Held to Maturity, Cost Basis, After 5 years but within 10 years	3,794
Held to Maturity, Cost Basis, After 10 years but within 15 years	1,162
Held to Maturity, Cost Basis, Over 15 years	11,521
Held to Maturity, Cost Basis, Total	19,477	19,840
Held to Maturity, Fair Value, Within 1 year	1,995
Held to Maturity, Fair Value, After 1 year but within 5 years	986
Held to Maturity, Fair Value, After 5 years but within 10 years	3,866
Held to Maturity, Fair Value, After 10 years but within 15 years	1,168
Held to Maturity, Fair Value, Over 15 years	11,998
Held to Maturity, Fair Value, Total	$ 20,013	$ 20,213

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Earnings Per Common Share (Summary of Earnings Per Common Share) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Numerator:
Net income	$ 1,369	$ 930
Preferred stock dividends	53	53
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$ 1,316	$ 877
Denominator:
Weighted average common shares outstanding (basic)	18,851	18,786
Effect of stock options	58	118
Weighted average common shares outstanding (diluted)	18,909	18,904
Earnings per common share:
Basic	$ 0.07	$ 0.05
Diluted	$ 0.07	$ 0.05

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Allowance for Loan Losses (Classes of Loan Portfolio by Categories) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	$ 846,675	$ 823,123
30-59 Days Past Due	1,755	2,550
60-89 Days Past Due	699	340
90 Days Past Due	1,268	1,067
Total Past Due	3,722	3,957
Total Loans	850,397	827,080
90 Days Past Due and Still Accruing
Commercial [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	151,293	139,126
30-59 Days Past Due
60-89 Days Past Due
90 Days Past Due
Total Past Due
Total Loans	151,293	139,126
90 Days Past Due and Still Accruing
Commercial loans secured by real estate [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	419,483	410,049
30-59 Days Past Due	358	280
60-89 Days Past Due	236
90 Days Past Due
Total Past Due	594	280
Total Loans	420,077	410,329
90 Days Past Due and Still Accruing
Real estate-mortgage [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	256,781	255,021
30-59 Days Past Due	1,374	2,196
60-89 Days Past Due	461	332
90 Days Past Due	1,268	1,067
Total Past Due	3,103	3,595
Total Loans	259,884	258,616
90 Days Past Due and Still Accruing
Consumer [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	19,118	18,927
30-59 Days Past Due	23	74
60-89 Days Past Due	2	8
90 Days Past Due
Total Past Due	25	82
Total Loans	19,143	19,009
90 Days Past Due and Still Accruing

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Pension Benefits (Narrative) (Details) (Pension Plans, Defined Benefit [Member])	3 Months Ended
	Mar. 31, 2015
Pension Plans, Defined Benefit [Member]
Pension Benefits [Line Items]
Minimum number of annual hours	1,000
Vesting term	5 years
Maximum percent of plan assets comprised of AmeriServ Financial, Inc. common stock	10.00%

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Accumulated Other Comprehensive Loss (Changes in Each Component of Accumulated Other Comprehensive Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Accumulated Other Comprehensive Loss [Line Items]
Beginning Balance	$ (6,902)		$ (5,875)
Other comprehensive income before reclassifications	661		595
Amounts reclassified from accumulated other comprehensive loss		[1]	(34)	[1]
Net current period other comprehensive income	661		561
Ending Balance	(6,241)		(5,314)
Net Unrealized Gains and Losses on Investment Securities [Member]
Accumulated Other Comprehensive Loss [Line Items]
Beginning Balance	1,843		1,043
Other comprehensive income before reclassifications	229		339
Amounts reclassified from accumulated other comprehensive loss			(37)
Net current period other comprehensive income	229		302
Ending Balance	2,072		1,345
Defined Benefit Pension Items [Member]
Accumulated Other Comprehensive Loss [Line Items]
Beginning Balance	(8,745)		(6,918)
Other comprehensive income before reclassifications	432		256
Amounts reclassified from accumulated other comprehensive loss			3
Net current period other comprehensive income	432		259
Ending Balance	$ (8,313)		$ (6,659)

[1] These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 16 for additional details).

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Allowance for Loan Losses (Summary of Primary Segments of Loan Portfolio) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 1,017	$ 989
Collectively evaluated for impairment	849,380	826,091
Total Loans	850,397	827,080
Specific reserve allocation	502	520
General reserve allocation	9,187	9,103
Total allowance for loan losses	9,689	9,623	10,109	10,104
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	204
Collectively evaluated for impairment	151,089	139,126
Total Loans	151,293	139,126
Specific reserve allocation	31
General reserve allocation	3,126	3,262
Total allowance for loan losses	3,157	3,262	3,065	2,844
Commercial loans secured by real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	813	989
Collectively evaluated for impairment	419,264	409,340
Total Loans	420,077	410,329
Specific reserve allocation	471	520
General reserve allocation	3,616	3,382
Total allowance for loan losses	4,087	3,902	4,662	4,885
Real estate-mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment
Collectively evaluated for impairment	259,884	258,616
Total Loans	259,884	258,616
Specific reserve allocation
General reserve allocation	1,304	1,310
Total allowance for loan losses	1,304	1,310	1,273	1,260
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment
Collectively evaluated for impairment	19,143	19,009
Total Loans	19,143	19,009
Specific reserve allocation
General reserve allocation	191	190
Total allowance for loan losses	191	190	139	136
Allocation for general risk [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Specific reserve allocation
General reserve allocation	950	959
Total allowance for loan losses	$ 950	$ 959	$ 970	$ 979

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2015

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update's core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update.

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Accumulated Other Comprehensive Loss (Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Unrealized gains and losses on sale of securities:
Net realized gains on available for sale securities			$ (57)
Provision for income tax expense			20
Net of tax			(37)
Amortization of defined benefit items
Amortization of prior year service cost		[1]	5	[1]
Provision for income tax expense		[1]	(2)	[1]
Net of tax		[1]	3	[1]
Total reclassifications for the period		[1]	$ (34)	[1]

[1] These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 16 for additional details).

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Investment Securities (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Investment [Line Items]
Gross investment gains		$ 62,000
Gross investment losses		5,000
Investment Securities:
Consolidated investment securities portfolio modified, years	2 years 2 months 19 days
Proceeds from sales of investment securities - available for sale		2,753,000
Book value of securities available for sale and held to maturity	$ 106,810,000		$ 104,780,000
Positions considered temporarily impaired	29
Standard & Poor's, AAA Rating [Member]
Investment [Line Items]
Portfolio rated	83.50%		84.10%
Standard & Poor's, A Rating [Member]
Investment [Line Items]
Portfolio rated	4.00%

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Federal Home Loan Bank Borrowings (Tables)

3 Months Ended

Mar. 31, 2015

Federal Home Loan Bank Borrowings [Abstract]

Federal Home Loan Bank (FHLB) Borrowings and Advances

	At March 31, 2015
				Weighted
Type	Maturing	Amount		Average Rate
Open Repo Plus	Overnight	$	27,219		0.33	%
Advances	2015		4,000		0.52
	2016		12,000		0.81
	2017		12,000		1.06
	2018		10,000		1.51
	2019 and over		6,000		1.83
Total advances			44,000		1.15
Total FHLB borrowings		$	71,219		0.84	%

	At December 31, 2014
					Weighted
Type	Maturing	Amount		Average Rate
Open Repo Plus	Overnight	$	38,880		0.27	%
Advances	2015		4,000		0.52
	2016		12,000		0.81
	2017		12,000		1.06
	2018		10,000		1.51
	2019 and over		4,000		1.88
Total advances			42,000		1.12
Total FHLB borrowings		$	80,880		0.71	%

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Non-performing Assets Including Troubled Debt Restructurings (TDR) (Tables)

3 Months Ended

Mar. 31, 2015

Nonperforming Assets Including Troubled Debt Restructurings [Abstract]

Non-performing Assets Including TDR

	March 31, 2015			December 31, 2014
Non-accrual loans
Commercial loans secured by real estate	$	272		$	778
Real estate-mortgage		1,874			1,417
Total		2,146			2,195
Other real estate owned
Commercial loans secured by real estate		384			384
Real estate-mortgage		179			128
Total		563			512
TDR's not in non-accrual		337			210
Total non-performing assets including TDR	$	3,046		$	2,917
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned		0.36	%		0.35	%

Schedule of Interest Income

	Three months ended
	March 31,
	2015		2014
Interest income due in accordance with original terms	$	24	$	33
Interest income recorded		-		-
Net reduction in interest income	$	24	$	33

Schedule of TDRs

Loans in accrual status	# of Loans		Current Balance		Concession Granted
Commercial loan		1	$	204	Extension of maturity date

Loans in non-accrual status	# of Loans		Current Balance		Concession Granted
Commercial loan secured by real estate		1	$	265	Extension of maturity date

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Non-performing Assets Including Troubled Debt Restructurings (Schedule of TDRs) (Details) (USD $)
In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2015

Loans in accrual status [Member] | Commercial [Member]

Schedule of TDRs

Number of loans

1

Current Balance

$ 204

Concession Granted

Extension of maturity date

Loans in non-accrual status [Member] | Commercial loans secured by real estate [Member]

Schedule of TDRs

Number of loans

1

Current Balance

$ 265

Concession Granted

Extension of maturity date

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Loans (Summary of Loan Portfolio) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	$ 850,397	$ 827,080
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	151,293	139,126
Commercial loans secured by real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	420,077	410,329
Real estate-mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	259,884	258,616
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	$ 19,143	$ 19,009

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Preferred Stock (Tables)

3 Months Ended

Mar. 31, 2015

Preferred Stock [Abstract]

Preferred Dividend Stock Period Annualized

DIVIDEND PERIOD ANNUALIZED		ANNUALIZED
BEGINNING	ENDING		DIVIDEND RATE
August 11, 2011	December 31, 2011		5.0%
January 1, 2012	December 31, 2014		1.0% to 5.0%
January 1, 2014	February 7, 2016		1.0% to 7.0%(1)
February 8, 2016	Redemption		9.0%(2)

(1) Between January 1, 2014 and February 7, 2016, the Company's dividend rate was fixed at 1% based upon the level of percentage change in QSBL between September 30, 2013 and the Baseline.

(2) Beginning on February 8, 2016, the dividend rate will be fixed at nine percent (9%) per annum.

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2015

Accumulated Comprehensive Loss [Abstract]

Changes in Each Component of Accumulated Other Comprehensive Loss

	Three months ended March 31, 2015								Three months ended March 31, 2014
	Net Unrealized Gains and Losses on Investment Securities AFS (1)		Defined Benefit Pension Items (1)			Total(1)			Net Unrealized Gains and Losses on Investment Securities AFS (1)			Defined Benefit Pension Items (1)			Total(1)
Beginning balance	$	1,843	$	(8,745	)	$	(6,902	)	$	1,043		$	(6,918	)	$	(5,875	)
Other comprehensive income  before reclassifications		229		432			661			339			256			595
Amounts reclassified from accumulated other comprehensive loss		-		-			-			(37	)		3			(34	)
Net current period other comprehensive income		229		432			661			302			259			561
Ending balance	$	2,072	$	(8,313	)	$	(6,241	)	$	1,345		$	(6,659	)	$	(5,314	)

(1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets.

Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Loss

	Amount reclassified from accumulated other comprehensive loss (1)
Details about accumulated other comprehensive loss components	For the three months ended March 31, 2015		For the three months ended March 31, 2014			Affected line item in the statement of operations
Unrealized gains and losses on sale of securities
	$	-	$	(57	)	Net realized gains on investment securities
		-		20		Provision for income tax expense
	$	-	$	(37	)	Net of tax
Amortization of defined benefit items (2)
Amortization of prior year service cost	$	-		5		Salaries and employee benefits
		-		(2	)	Provision for income tax expense
	$	-	$	3		Net income
Total reclassifications for the period	$	-	$	(34	)	Net income

(1) Amounts in parentheses indicate credits.

(2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 16 for additional details).

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Basis of Preparation

3 Months Ended

Mar. 31, 2015

Basis of Preparation [Abstract]

Basis of Preparation

2. Basis of Preparation

The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. In the opinion of management, all adjustments consisting of normal recurring entries considered necessary for a fair presentation have been included. They are not, however, necessarily indicative of the results of consolidated operations for a full-year.

For further information, refer to the consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.

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Regulatory Capital (Tables)

3 Months Ended

Mar. 31, 2015

Regulatory Capital [Abstract]

Summarized Regulatory Capital Ratio

	At March 31, 2015
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital (To RWA) Consolidated	$	131,581		14.68	%	$	71,688		8.00	%	$	89,609		10.00	%
AmeriServ Financial Bank		105,692		11.92			70,925		8.00			88,657		10.00
Common Equity Tier 1 Capital (To RWA) Consolidated		88,966		9.93			40,324		4.50			58,246		6.50
AmeriServ Financial Bank		95,106		10.73			39,896		4.50			57,627		6.50
Tier 1 Capital (To RWA) Consolidated		120,995		13.50			53,766		6.00			71,688		8.00
AmeriServ Financial Bank		95,106		10.73			53,194		6.00			70,925		8.00
Tier 1 Capital (To Average Assets) leverage Consolidated		120,995		11.24			43,072		4.00			53,839		5.00
AmeriServ Financial Bank		95,106		9.06			41,988		4.00			52,485		5.00

	At December 31, 2014
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital (To RWA) Consolidated	$	131,497		14.80	%	$	71,066		8.00	%	$	88,833		10.00	%
AmeriServ Financial Bank		106,084		12.07			70,305		8.00			87,881		10.00
Tier 1 Capital (To RWA) Consolidated		120,992		13.62			35,533		4.00			53,300		6.00
AmeriServ Financial Bank		95,579		10.88			35,153		4.00			52,729		6.00
Tier 1 Capital (To Average Assets) Consolidated		120,992		11.34			42,662		4.00			53,327		5.00
AmeriServ Financial Bank		95,579		9.19			41,608		4.00			52,010		5.00

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Investment Securities (Summary of Cost Basis and Fair Values of Investment Securities) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Available-For-Sale-Securities-And-Held-To-Maturity-Securities
Investment securities available for sale, Cost Basis	$ 119,393	$ 124,316
Investment securities available for sale, Gross Unrealized Gains	3,493	3,279
Investment securities available for sale, Gross Unrealized Losses	(353)	(485)
Available for Sale, Fair Value, Total	122,533	127,110
Investment securities held to maturity, Cost Basis	19,477	19,840
Investment securities held to maturity, Gross Unrealized Gains	569	475
Investment securities held to maturity, Gross Unrealized Losses	(33)	(102)
Held to Maturity, Fair Value, Total	20,013	20,213
U.S. Agency [Member]
Available-For-Sale-Securities-And-Held-To-Maturity-Securities
Investment securities available for sale, Cost Basis	5,932	5,931
Investment securities available for sale, Gross Unrealized Gains	29	21
Investment securities available for sale, Gross Unrealized Losses	(13)	(46)
Available for Sale, Fair Value, Total	5,948	5,906
U.S. Agency mortgage-backed securities [Member]
Available-For-Sale-Securities-And-Held-To-Maturity-Securities
Investment securities available for sale, Cost Basis	97,964	102,888
Investment securities available for sale, Gross Unrealized Gains	3,385	3,197
Investment securities available for sale, Gross Unrealized Losses	(203)	(317)
Available for Sale, Fair Value, Total	101,146	105,768
Investment securities held to maturity, Cost Basis	12,120	12,481
Investment securities held to maturity, Gross Unrealized Gains	449	395
Investment securities held to maturity, Gross Unrealized Losses	(15)	(50)
Held to Maturity, Fair Value, Total	12,554	12,826
Corporate bonds [Member]
Available-For-Sale-Securities-And-Held-To-Maturity-Securities
Investment securities available for sale, Cost Basis	15,497	15,497
Investment securities available for sale, Gross Unrealized Gains	79	61
Investment securities available for sale, Gross Unrealized Losses	(137)	(122)
Available for Sale, Fair Value, Total	15,439	15,436
Taxable Municipal [Member]
Available-For-Sale-Securities-And-Held-To-Maturity-Securities
Investment securities held to maturity, Cost Basis	3,362	3,364
Investment securities held to maturity, Gross Unrealized Gains	116	74
Investment securities held to maturity, Gross Unrealized Losses		(24)
Held to Maturity, Fair Value, Total	3,478	3,414
Corporate bonds and other securities [Member]
Available-For-Sale-Securities-And-Held-To-Maturity-Securities
Investment securities held to maturity, Cost Basis	3,995	3,995
Investment securities held to maturity, Gross Unrealized Gains	4	6
Investment securities held to maturity, Gross Unrealized Losses	(18)	(28)
Held to Maturity, Fair Value, Total	$ 3,981	$ 3,973

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Allowance for Loan Losses (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individual loan balance is classified as nonaccrual status or troubled debt restructure	$ 100,000
Loans past due as to maturity, days	90 days
Provision for loan losses	(250,000)
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold for individually evaluating loans	250,000
Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum individual loan balance requiring quarterly review	1,000,000
Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum individual loan balance requiring quarterly review	250,000
Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum individual loan balance requiring quarterly review	$ 100,000
Minimum [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum percent of portfolio to be reviewed	50.00%
Maximum [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum percent of portfolio to be reviewed	55.00%

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Cash and due from depository institutions	$ 20,591	$ 23,780
Interest bearing deposits	2,969	2,952
Short-term investments in money market funds	7,158	6,140
Total cash and cash equivalents	30,718	32,872
Investment securities:
Available for sale	122,533	127,110
Held to maturity (fair value $20,013 on March 31, 2015 and $20,213 on December 31, 2014)	19,477	19,840
Loans held for sale	3,575	5,051
Loans	850,979	827,634
Less: Unearned income	582	554
Allowance for loan losses	9,689	9,623
Net loans	840,708	817,457
Premises and equipment, net	12,781	13,012
Accrued interest income receivable	3,300	3,127
Goodwill	11,944	11,944
Bank owned life insurance	37,388	37,417
Net deferred tax asset	8,938	9,548
Federal Home Loan Bank stock	3,501	4,048
Federal Reserve Bank stock	2,125	2,125
Other assets	6,428	5,712
TOTAL ASSETS	1,103,416	1,089,263
LIABILITIES
Non-interest bearing deposits	171,074	167,551
Interest bearing deposits	721,602	702,330
Total deposits	892,676	869,881
Short-term borrowings	27,219	38,880
Advances from Federal Home Loan Bank	44,000	42,000
Guaranteed junior subordinated deferrable interest debentures	13,085	13,085
Total borrowed funds	84,304	93,965
Other liabilities	10,108	11,010
TOTAL LIABILITIES	987,088	974,856
SHAREHOLDERS' EQUITY
Preferred stock, no par value; $1,000 per share liquidation preference; 2,000,000 shares authorized; 21,000 shares issued and outstanding on March 31, 2015 and December 31, 2014	21,000	21,000
Common stock, par value $0.01 per share; 30,000,000 shares authorized; 26,472,840 shares issued and 18,855,021 outstanding on March 31, 2015; 26,402,707 shares issued and 18,784,888 outstanding on December 31, 2014	265	264
Treasury stock at cost, 7,617,819 shares on March 31, 2015 and December 31, 2014	(74,829)	(74,829)
Capital surplus	145,387	145,256
Retained earnings	30,746	29,618
Accumulated other comprehensive loss, net	(6,241)	(6,902)
TOTAL SHAREHOLDERS' EQUITY	116,328	114,407
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,103,416	$ 1,089,263

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Loans (Narative) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Loans [Abstract]
Real estate-construction loans, percentage	3.20%	3.50%
Loan balances net of unearned income	$ 582	$ 554

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
OPERATING ACTIVITIES
Net income	$ 1,369	$ 930
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	250
Depreciation expense	456	457
Net amortization of investment securities	85	96
Net realized gains on investment securities available for sale		(57)
Net gains on loans held for sale	(191)	(101)
Amortization of deferred loan fees	(67)	(75)
Origination of mortgage loans held for sale	(11,764)	(6,109)
Sales of mortgage loans held for sale	13,431	6,804
Increase in accrued interest income receivable	(173)	(291)
Decrease in accrued interest payable	(161)	(186)
Earnings on bank owned life insurance	(171)	(187)
Deferred income taxes	285	141
Stock based compensation expense	132	32
Other, net	(696)	699
Net cash provided by operating activities	2,785	2,153
INVESTING ACTIVITIES
Purchases of investment securities - available for sale		(2,520)
Purchases of investment securities - held to maturity		(151)
Proceeds from sales of investment securities - available for sale		2,753
Proceeds from maturities of investment securities - available for sale	4,852	5,428
Proceeds from maturities of investment securities - held to maturity	350	321
Purchases of regulatory stock	(3,878)	(1,830)
Proceeds from redemption of regulatory stock	4,425	2,973
Long-term loans originated	(68,544)	(37,426)
Principal collected on long-term loans	41,248	34,040
Loans purchased or participated	(4,000)
Loans sold or participated	7,755
Proceeds from sale of other real estate owned	53
Proceeds from life insurance policy	200
Purchases of premises and equipment	(220)	(389)
Net cash (used in) provided by investing activities	(17,759)	3,199
FINANCING ACTIVITIES
Net increase in deposit balances	22,722	20,763
Net decrease in other short-term borrowings	(11,661)	(29,072)
Principal borrowings on advances from Federal Home Loan Bank	2,000	3,000
Common stock dividends	(188)	(187)
Preferred stock dividends	(53)	(53)
Net cash provided by (used in) financing activities	12,820	(5,549)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(2,154)	(197)
CASH AND CASH EQUIVALENTS AT JANUARY 1	32,872	30,066
CASH AND CASH EQUIVALENTS AT MARCH 31	$ 30,718	$ 29,869

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Preferred Stock (Preferred Dividend Stock Period Annualized) (Details) (Series E Preferred Stock [Member])	3 Months Ended
	Mar. 31, 2015
Preferred Stock [Line Items]
Annualized Dividend Rate	9.00%
Term 1 [Member]
Preferred Stock [Line Items]
Annualized Dividend Rate	5.00%
Term 4 [Member]
Preferred Stock [Line Items]
Annualized Dividend Rate	9.00%	[1]
Minimum [Member] | Term 1 [Member]
Preferred Stock [Line Items]
Dividend Annualized Period	Aug. 11, 2011
Minimum [Member] | Term 2 [Member]
Preferred Stock [Line Items]
Annualized Dividend Rate	1.00%
Dividend Annualized Period	Jan. 01, 2012
Minimum [Member] | Term 3 [Member]
Preferred Stock [Line Items]
Annualized Dividend Rate	1.00%	[2]
Dividend Annualized Period	Jan. 01, 2014
Minimum [Member] | Term 4 [Member]
Preferred Stock [Line Items]
Dividend Annualized Period	Feb. 08, 2016
Maximum [Member] | Term 1 [Member]
Preferred Stock [Line Items]
Dividend Annualized Period	Dec. 31, 2011
Maximum [Member] | Term 2 [Member]
Preferred Stock [Line Items]
Annualized Dividend Rate	5.00%
Dividend Annualized Period	Dec. 31, 2014
Maximum [Member] | Term 3 [Member]
Preferred Stock [Line Items]
Annualized Dividend Rate	7.00%	[2]
Dividend Annualized Period	Feb. 07, 2016

[1] Beginning on February 8, 2016, the dividend rate will be fixed at nine percent (9%) per annum.

[2] Between January 1, 2014 and February 7, 2016, the Company's dividend rate was fixed at 1% based upon the level of percentage change in QSBL between September 30, 2013 and the Baseline.

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Disclosures about Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Disclosures about Fair Value Measurements [Abstract]

Schedule of Assets and Liabilities Measured on Recurring Basis

	Fair Value Measurements at March 31, 2015 Using
	Total		(Level 1)		(Level 2)		(Level 3)
US Agency securities	$	5,948	$	-	$	5,948	$	-
US Agency mortgage-backed securities		101,146		-		101,146		-
Corporate bonds		15,439		-		15,439		-

	Fair Value Measurements at December 31, 2014 Using
	Total		(Level 1)		(Level 2)		(Level 3)
US Agency securities	$	5,906	$	-	$	5,906	$	-
US Agency mortgage-backed securities		105,768		-		105,768		-
Corporate bonds		15,436		-		15,436		-

Schedule of Assets Measured at Fair Value on Non-Recurring Basis

	Fair Value Measurements at March 31, 2015 Using
	Total		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	515	$	-	$	-	$	515
Other real estate owned		563		-		-		563

	Fair Value Measurements at December 31, 2014 Using
	Total		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	469	$	-	$	-	$	469
Other real estate owned		512		-		-		512

March 31, 2015	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range(Wgtd Ave)
	$			Appraisal adjustments(2)	0% to 35%(30%)
Impaired loans		515	Appraisal of collateral(1), (3)	Liquidation expenses	1% to 15%(10%)
				Appraisal adjustments(2)	0% to 48%(38%)
Other real estate owned		563	Appraisal of collateral (1),(3)	Liquidation expenses	1% to 20%(10%)

December 31, 2014	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range(Wgtd Ave)
	$			Appraisal adjustments(2)	0% to 37%(30%)
Impaired loans		469	Appraisal of collateral(1),(3)	Liquidation expenses	1% to 15%(10%)
				Appraisal adjustments(2)	47% to 83%(55%)
Other real estate owned		512	Appraisal of collateral (1),(3)	Liquidation expenses	1% to 61%(9%)

(1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

Schedule of Financial Instruments

	March 31, 2015
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL ASSETS:
Cash and cash equivalents	$	30,718	$	30,718	$	30,718	$	-	$	-
Investment securities - AFS		122,533		122,533		-		122,533		-
Investment securities – HTM		19,477		20,013		-		17,031		2,982
Regulatory stock		5,626		5,626		5,626		-		-
Loans held for sale		3,575		3,675		3,675		-		-
Loans, net of allowance for loan loss and unearned income		840,708		845,904		-		-		845,904
Accrued interest income receivable		3,300		3,300		3,300		-		-
Bank owned life insurance		37,388		37,388		37,388		-		-
FINANCIAL LIABILITIES:
Deposits with no stated maturities	$	587,825	$	587,825	$	587,825	$	-	$	-
Deposits with stated maturities		304,851		307,634		-		-		307,634
Short-term borrowings		27,219		27,219		27,219		-		-
All other borrowings		57,085		61,695		-		-		61,695
Accrued interest payable		1,545		1,545		1,545		-		-

	December 31, 2014
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL ASSETS:
Cash and cash equivalents	$	32,872	$	32,872	$	32,872	$	-	$	-
Investment securities - AFS		127,110		127,110		-		127,110		-
Investment securities – HTM		19,840		20,213		-		17,241		2,972
Regulatory stock		6,173		6,173		6,173		-		-
Loans held for sale		5,051		5,127		5,127		-		-
Loans, net of allowance for loan loss and unearned income		817,457		819,935		-		-		819,935
Accrued interest income receivable		3,127		3,127		3,127		-		-
Bank owned life insurance		37,417		37,417		37,417		-		-
FINANCIAL LIABILITIES:
Deposits with no stated maturities	$	568,625	$	568,625	$	568,625	$	-	$	-
Deposits with stated maturities		301,256		304,744		-		-		304,744
Short-term borrowings		38,880		38,880		38,880		-		-
All other borrowings		55,085		59,256		-		-		59,256
Accrued interest payable		1,706		1,706		1,706		-		-

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Commitments and Contingent Liabilities (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Commitments to extend credit [Member]
Loss Contingencies [Line Items]
Amount of commitment	$ 181.5	$ 188.0
Standby letters of credit [Member]
Loss Contingencies [Line Items]
Amount of commitment	$ 7.8	$ 7.2

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Pension Benefits

3 Months Ended

Mar. 31, 2015

Pension Benefits [Abstract]

Pension Benefits

16. Pension Benefits

The Company has a noncontributory defined benefit pension plan covering certain employees who work at least 1,000 hours per year. The participants shall have a vested interest in their accrued benefit after five full years of service. The benefits of the plan are based upon the employee's years of service and average annual earnings for the highest five consecutive calendar years during the final ten year period of employment. Plan assets are primarily debt securities (including US Treasury and Agency securities, corporate notes and bonds), listed common stocks (including shares of AmeriServ Financial, Inc. common stock which is limited to 10% of the plan's assets), mutual funds, and short-term cash equivalent instruments. The net periodic pension cost for the three months ended March 31, 2015 and 2014 were as follows (in thousands):

	Three months ended
	March 31,
	2015			2014
Components of net periodic benefit cost
Service cost	$	400		$	430
Interest cost		325			331
Expected return on plan assets		(525	)		(498	)
Amortization of prior year service cost		-			(5	)
Recognized net actuarial loss		300			272
Net periodic pension cost	$	500		$	530

The Company implemented a soft freeze of its defined benefit pension plan to provide that non-union employees hired on or after January 1, 2013 and union employees hired on or after January 1, 2014 are not eligible to participate in the pension plan. Instead, such employees are eligible to participate in a qualified 401(k) plan. This change was made to help reduce pension costs in future periods.

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Principles of Consolidation (Details) (USD $) In Billions, unless otherwise specified	Mar. 31, 2015
Principles of Consolidation [Abstract]
Number of locations	17
Trust and financial services and administers assets	$ 1.9

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Common Share [Abstract]

Summary of Earnings Per Common Share

	Three months ended March 31,
	2015		2014
	(In thousands, except per share data)
Numerator:
Net income	$	1,369	$	930
Preferred stock dividends		53		53
Net income available to common shareholders	$	1,316	$	877
Denominator:
Weighted average common shares  outstanding (basic)		18,851		18,786
Effect of stock options		58		118
Weighted average common shares outstanding (diluted)		18,909		18,904
Earnings per common share:
Basic	$	0.07	$	0.05
Diluted		0.07		0.05

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Disclosures about Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	$ 122,533	$ 127,110
U.S. Agency Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	5,948	5,906
U.S. Agency mortgage-backed securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	101,146	105,768
Corporate Bond Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	15,439	15,436
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	122,533	127,110
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale
Fair Value Measurements, Recurring Basis [Member] | U.S. Agency Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	5,948	5,906
Fair Value Measurements, Recurring Basis [Member] | U.S. Agency mortgage-backed securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	101,146	105,768
Fair Value Measurements, Recurring Basis [Member] | Corporate Bond Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	15,439	15,436
Fair Value Measurements, Recurring Basis [Member] | Level 1 [Member] | U.S. Agency Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale
Fair Value Measurements, Recurring Basis [Member] | Level 1 [Member] | U.S. Agency mortgage-backed securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale
Fair Value Measurements, Recurring Basis [Member] | Level 1 [Member] | Corporate Bond Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale
Fair Value Measurements, Recurring Basis [Member] | Level 2 [Member] | U.S. Agency Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	5,948	5,906
Fair Value Measurements, Recurring Basis [Member] | Level 2 [Member] | U.S. Agency mortgage-backed securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	101,146	105,768
Fair Value Measurements, Recurring Basis [Member] | Level 2 [Member] | Corporate Bond Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale	15,439	15,436
Fair Value Measurements, Recurring Basis [Member] | Level 3 [Member] | U.S. Agency Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale
Fair Value Measurements, Recurring Basis [Member] | Level 3 [Member] | U.S. Agency mortgage-backed securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale
Fair Value Measurements, Recurring Basis [Member] | Level 3 [Member] | Corporate Bond Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available for sale

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Principles of Consolidation

3 Months Ended

Mar. 31, 2015

Principles of Consolidation [Abstract]

Principles of Consolidation

1. Principles of Consolidation

The accompanying consolidated financial statements include the accounts of AmeriServ Financial, Inc. (the Company) and its wholly-owned subsidiaries, AmeriServ Financial Bank (the Bank), AmeriServ Trust and Financial Services Company (the Trust Company), and AmeriServ Life Insurance Company (AmeriServ Life). The Bank is a Pennsylvania state-chartered full service bank with 17 locations in Pennsylvania. The Trust Company offers a complete range of trust and financial services and administers assets valued at $1.9 billion that are not reported on the Company's balance sheet at March 31, 2015. AmeriServ Life is a captive insurance company that engages in underwriting as a reinsurer of credit life and disability insurance.

In addition, the Parent Company is an administrative group that provides support in such areas as audit, finance, investments, loan review, general services, and marketing. Significant intercompany accounts and transactions have been eliminated in preparing the consolidated financial statements.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS [Abstract]
Held to maturity securities, fair value	$ 20,013	$ 20,213
Preferred stock, par value	$ 0	$ 0
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	21,000	21,000
Preferred stock, shares outstanding	21,000	21,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	26,472,840	26,402,707
Common stock, shares outstanding	18,855,021	18,784,888
Treasury stock, shares	7,617,819	7,617,819

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Preferred Stock

3 Months Ended

Mar. 31, 2015

Preferred Stock [Abstract]

Preferred Stock

11. Preferred Stock

On August 11, 2011, pursuant to the Small Business Lending Fund (SBLF), the Company issued and sold to the US Treasury 21,000 shares of its Senior Non-Cumulative Perpetual Preferred Stock, Series E (Series E Preferred Stock) for the aggregate proceeds of $21 million. The SBLF is a voluntary program sponsored by the US Treasury that encourages small business lending by providing capital to qualified community banks at favorable rates. The Company used the proceeds from the Series E Preferred Stock issued to the US Treasury to repurchase all 21,000 shares of its outstanding preferred shares previously issued to the US Treasury under the TARP Capital Purchase Program.

The Series E Preferred Stock has an aggregate liquidation preference of approximately $21 million and qualifies as Tier 1 Capital for regulatory purposes. The terms of the Series E Preferred Stock provide for the payment of non-cumulative dividends on a quarterly basis. The dividend rate, as a percentage of the liquidation amount, may fluctuate while the Series E Preferred Stock is outstanding based upon changes in the level of “qualified small business lending” (“QSBL”) by the Bank from its average level of QSBL at each of the four quarter ends leading up to June 30, 2010 (the “Baseline”) as follows:

DIVIDEND PERIOD ANNUALIZED		ANNUALIZED
BEGINNING	ENDING		DIVIDEND RATE
August 11, 2011	December 31, 2011		5.0%
January 1, 2012	December 31, 2014		1.0% to 5.0%
January 1, 2014	February 7, 2016		1.0% to 7.0%(1)
February 8, 2016	Redemption		9.0%(2)

(1) Between January 1, 2014 and February 7, 2016, the Company's dividend rate was fixed at 1% based upon the level of percentage change in QSBL between September 30, 2013 and the Baseline.

(2) Beginning on February 8, 2016, the dividend rate will be fixed at nine percent (9%) per annum.

As of September 30, 2013, the Company had increased its QSBL to a level that reduced the dividend rate to 1%. Accordingly, this 1% rate will continue through February 7, 2016.

As long as shares of Series E Preferred Stock remain outstanding, we may not pay dividends to our common shareholders (nor may we repurchase or redeem any shares of our common stock) during any quarter in which we fail to declare and pay dividends on the Series E Preferred Stock and for the next three quarters following such failure. In addition, under the terms of the Series E Preferred Stock, we may only declare and pay dividends on our common stock (or repurchase shares of our common stock), if, after payment of such dividend, the dollar amount of our Tier 1 capital would be at least ninety percent (90%) of Tier 1 capital as of June 30, 2011, excluding any charge-offs and redemptions of the Series E Preferred Stock (the “Tier 1 Dividend Threshold”). The Tier 1 Dividend Threshold is subject to reduction, beginning January 1, 2014, based upon the extent by which, if at all, the QSBL at September 30, 2013 has increased over the Baseline.

We may redeem the Series E Preferred Stock at any time at our option, at a redemption price of 100% of the liquidation amount plus accrued but unpaid dividends, subject to the approval of our federal banking regulator.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 01, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	AMERISERV FINANCIAL INC /PA/
Entity Central Index Key	0000707605
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		18,855,021

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Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2015

Accumulated Comprehensive Loss [Abstract]

Accumulated Other Comprehensive Loss

12. Accumulated Other Comprehensive Loss

The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2015 and 2014 (in thousands):

	Three months ended March 31, 2015								Three months ended March 31, 2014
	Net Unrealized Gains and Losses on Investment Securities AFS (1)		Defined Benefit Pension Items (1)			Total(1)			Net Unrealized Gains and Losses on Investment Securities AFS (1)			Defined Benefit Pension Items (1)			Total(1)
Beginning balance	$	1,843	$	(8,745	)	$	(6,902	)	$	1,043		$	(6,918	)	$	(5,875	)
Other comprehensive income  before reclassifications		229		432			661			339			256			595
Amounts reclassified from accumulated other comprehensive loss		-		-			-			(37	)		3			(34	)
Net current period other comprehensive income		229		432			661			302			259			561
Ending balance	$	2,072	$	(8,313	)	$	(6,241	)	$	1,345		$	(6,659	)	$	(5,314	)

(1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets.

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the three months ended March 31, 2015 and 2014 (in thousands):

	Amount reclassified from accumulated other comprehensive loss (1)
Details about accumulated other comprehensive loss components	For the three months ended March 31, 2015		For the three months ended March 31, 2014			Affected line item in the statement of operations
Unrealized gains and losses on sale of securities
	$	-	$	(57	)	Net realized gains on investment securities
		-		20		Provision for income tax expense
	$	-	$	(37	)	Net of tax
Amortization of defined benefit items (2)
Amortization of prior year service cost	$	-		5		Salaries and employee benefits
		-		(2	)	Provision for income tax expense
	$	-	$	3		Net income
Total reclassifications for the period	$	-	$	(34	)	Net income

(1) Amounts in parentheses indicate credits.

(2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 16 for additional details).

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
INTEREST INCOME
Interest and fees on loans	$ 9,456	$ 9,032
Interest bearing deposits	2	1
Short-term investments in money market funds	2	2
Investment securities:
Available for sale	913	924
Held to maturity	150	136
Total Interest Income	10,523	10,095
INTEREST EXPENSE
Deposits	1,174	1,211
Short-term borrowings	10	19
Advances from Federal Home Loan Bank	125	60
Guaranteed junior subordinated deferrable interest debentures	280	280
Total Interest Expense	1,589	1,570
NET INTEREST INCOME	8,934	8,525
Provision for loan losses	250
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	8,684	8,525
NON-INTEREST INCOME
Trust and investment advisory fees	2,056	2,032
Service charges on deposit accounts	419	478
Net gains on sale of loans	191	101
Mortgage related fees	115	117
Net realized gains on investment securities		57
Bank owned life insurance	363	187
Other income	568	560
Total Non-Interest Income	3,712	3,532
NON-INTEREST EXPENSE
Salaries and employee benefits	6,073	6,314
Net occupancy expense	841	839
Equipment expense	466	470
Professional fees	1,211	1,308
Supplies, postage and freight	178	183
Miscellaneous taxes and insurance	297	296
Federal deposit insurance expense	167	160
Other expense	1,177	1,168
Total Non-Interest Expense	10,410	10,738
PRETAX INCOME	1,986	1,319
Provision for income tax expense	617	389
NET INCOME	1,369	930
Preferred stock dividends	53	53
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$ 1,316	$ 877
Basic:
Net income	$ 0.07	$ 0.05
Average number of shares outstanding	18,851	18,786
Diluted:
Net income	$ 0.07	$ 0.05
Average number of shares outstanding	18,909	18,904
Cash dividends declared	$ 0.01	$ 0.01

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Investment Securities

3 Months Ended

Mar. 31, 2015

Investment Securities [Abstract]

Investment Securities

6. Investment Securities

The cost basis and fair values of investment securities are summarized as follows (in thousands):

Investment securities available for sale (AFS):

	March 31, 2015
			Gross		Gross
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
US Agency	$	5,932	$	29	$	(13	)	$	5,948
US Agency mortgage- backed  securities		97,964		3,385		(203	)		101,146
Corporate bonds		15,497		79		(137	)		15,439
Total	$	119,393	$	3,493	$	(353	)	$	122,533

Investment securities held to maturity (HTM):

	March 31, 2015
			Gross		Gross
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
US Agency mortgage- backed securities	$	12,120	$	449	$	(15	)	$	12,554
Taxable municipal		3,362		116		-			3,478
Corporate bonds and other securities		3,995		4		(18	)		3,981
Total	$	19,477	$	569	$	(33	)	$	20,013

Investment securities available for sale (AFS):

	December 31, 2014
			Gross		Gross
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
US Agency	$	5,931	$	21	$	(46	)	$	5,906
US Agency mortgage- backed  securities		102,888		3,197		(317	)		105,768
Corporate bonds		15,497		61		(122	)		15,436
Total	$	124,316	$	3,279	$	(485	)	$	127,110

Investment securities held to maturity (HTM):

	December 31, 2014
			Gross		Gross
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
US Agency mortgage- backed securities	$	12,481	$	395	$	(50	)	$	12,826
Taxable municipal		3,364		74		(24	)		3,414
Corporate bonds and other securities		3,995		6		(28	)		3,973
Total	$	19,840	$	475	$	(102	)	$	20,213

Maintaining investment quality is a primary objective of the Company's investment policy which, subject to certain limited exceptions, prohibits the purchase of any investment security below a Moody's Investor's Service or Standard & Poor's rating of "A." At March 31, 2015, 83.5% of the portfolio was rated "AAA” as compared to 84.1% at December 31, 2014. 4.0% of the portfolio was either rated below “A” or unrated at March 31, 2015. The Company has no exposure to subprime mortgage loans in the investment portfolio. At March 31, 2015, the Company's consolidated investment securities portfolio had an effective duration of approximately 2.22 years.

The Company sold no AFS securities for the first three months of 2015. Total proceeds from the sale of AFS securities for the first three months of 2014 were $2.8 million resulting in $62,000 of gross investment security gains and $5,000 of gross security losses.

The book value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits, and certain Federal Home Loan Bank borrowings was $106,810,000 at March 31, 2015 and $104,780,000 at December 31, 2014.

The following tables present information concerning investments with unrealized losses as of March 31, 2015 and December 31, 2014 (in thousands):

Total investment securities:

	March 31, 2015
	Less than 12 months					12 months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
US Agency	$	-	$	-		$	2,887	$	(13	)	$	2,887	$	(13	)
US Agency mortgage- backed securities		2,347		(4	)		12,934		(214	)		15,281		(218	)
Corporate bonds and other securities		1,970		(27	)		9,870		(128	)		11,840		(155	)
Total	$	4,317	$	(31	)	$	25,691	$	(355	)	$	30,008	$	(386	)

Total investment securities:

	December 31, 2014
	Less than 12 months					12 months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
US Agency	$	996	$	(4	)	$	2,858	$	(42	)	$	3,854	$	(46	)
US Agency mortgage- backed securities		2,826		(13	)		20,408		(354	)		23,234		(367	)
Taxable municipal		150		(1	)		988		(23	)		1,138		(24	)
Corporate bonds and other securities		2,960		(43	)		8,891		(107	)		11,851		(150	)
Total	$	6,932	$	(61	)	$	33,145	$	(526	)	$	40,077	$	(587	)

The unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. There are 29 positions that are considered temporarily impaired at March 31, 2015. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value.

Contractual maturities of securities at March 31, 2015 are shown below (in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties.

Total investment securities:

	March 31, 2015
	Available for sale				Held to maturity
	Cost Basis		Fair Value		Cost Basis		Fair Value
Within 1 year	$	2,000	$	2,013	$	2,000	$	1,995
After 1 year but within 5 years		13,456		13,545		1,000		986
After 5 years but within 10 years		18,833		19,198		3,794		3,866
After 10 years but within15 years		53,023		54,550		1,162		1,168
Over 15 years		32,081		33,227		11,521		11,998
Total	$	119,393	$	122,533	$	19,477	$	20,013

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Consolidated Statement of Cash Flows

3 Months Ended

Mar. 31, 2015

CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract]

Consolidated Statement of Cash Flows

5. Consolidated Statement of Cash Flows

On a consolidated basis, cash and cash equivalents include cash and due from depository institutions, interest-bearing deposits and short-term investments in money market funds. The Company made $331,000 in income tax payments in the first three months of 2015 as compared to $254,000 for the first three months of 2014. The Company made total interest payments of $1,750,000 in the first three months of 2015 compared to $1,756,000 in the same 2014 period. The Company had $107,000 non-cash transfers to other real estate owned (OREO) in the first three months of 2015 compared to no non-cash transfers in the same 2014 period.

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Disclosures about Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Disclosures about Fair Value Measurements [Abstract]

Disclosures about Fair Value Measurements

17. Disclosures about Fair Value Measurements

The following disclosures establish a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined within this hierarchy are as follows:

Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.

Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

Assets and Liability Measured on a Recurring Basis

Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the US Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things.

The following tables present the assets reported on the Consolidated Balance Sheets at their fair value as of March 31, 2015 and December 31, 2014, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Assets and liability measured at fair value on a recurring basis are summarized below (in thousands):

	Fair Value Measurements at March 31, 2015 Using
	Total		(Level 1)		(Level 2)		(Level 3)
US Agency securities	$	5,948	$	-	$	5,948	$	-
US Agency mortgage-backed securities		101,146		-		101,146		-
Corporate bonds		15,439		-		15,439		-

	Fair Value Measurements at December 31, 2014 Using
	Total		(Level 1)		(Level 2)		(Level 3)
US Agency securities	$	5,906	$	-	$	5,906	$	-
US Agency mortgage-backed securities		105,768		-		105,768		-
Corporate bonds		15,436		-		15,436		-

Assets Measured on a Non-recurring Basis

Loans considered impaired are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. As detailed in the allowance for loan loss footnote, impaired loans are reported at fair value of the underlying collateral if the repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on observable market data which at times are discounted. At March 31, 2015, impaired loans with a carrying value of $1.0 million were reduced by a specific valuation allowance totaling $502,000 resulting in a net fair value of $515,000. At December 31, 2014, impaired loans with a carrying value of $989,000 were reduced by a specific valuation allowance totaling $520,000 million resulting in a net fair value of $469,000.

Other real estate owned is measured at fair value based on appraisals, less cost to sell at the date of foreclosure. Valuations are periodically performed by management. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO.

Assets measured at fair value on a non-recurring basis are summarized below (in thousands, except range data):

	Fair Value Measurements at March 31, 2015 Using
	Total		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	515	$	-	$	-	$	515
Other real estate owned		563		-		-		563

	Fair Value Measurements at December 31, 2014 Using
	Total		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	469	$	-	$	-	$	469
Other real estate owned		512		-		-		512

March 31, 2015	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range(Wgtd Ave)
	$			Appraisal adjustments(2)	0% to 35%(30%)
Impaired loans		515	Appraisal of collateral(1), (3)	Liquidation expenses	1% to 15%(10%)
				Appraisal adjustments(2)	0% to 48%(38%)
Other real estate owned		563	Appraisal of collateral (1),(3)	Liquidation expenses	1% to 20%(10%)

December 31, 2014	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range(Wgtd Ave)
	$			Appraisal adjustments(2)	0% to 37%(30%)
Impaired loans		469	Appraisal of collateral(1),(3)	Liquidation expenses	1% to 15%(10%)
				Appraisal adjustments(2)	47% to 83%(55%)
Other real estate owned		512	Appraisal of collateral (1),(3)	Liquidation expenses	1% to 61%(9%)

(1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

For the Company, as for most financial institutions, approximately 90% of its assets and liabilities are considered financial instruments. Many of the Company's financial instruments, however, lack an available trading market characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimates and present value calculations were used by the Company for the purpose of this disclosure.

Fair values have been determined by the Company using independent third party valuations that use the best available data (Level 2) and an estimation methodology (Level 3) the Company believes is suitable for each category of financial instruments. Management believes that cash, cash equivalents, and loans and deposits with floating interest rates have estimated fair values which approximate the recorded book balances. The estimation methodologies used, the estimated fair values based on US GAAP measurements, and recorded book balances at March 31, 2015 and December 31, 2014, were as follows (in thousands):

	March 31, 2015
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL ASSETS:
Cash and cash equivalents	$	30,718	$	30,718	$	30,718	$	-	$	-
Investment securities - AFS		122,533		122,533		-		122,533		-
Investment securities – HTM		19,477		20,013		-		17,031		2,982
Regulatory stock		5,626		5,626		5,626		-		-
Loans held for sale		3,575		3,675		3,675		-		-
Loans, net of allowance for loan loss and unearned income		840,708		845,904		-		-		845,904
Accrued interest income receivable		3,300		3,300		3,300		-		-
Bank owned life insurance		37,388		37,388		37,388		-		-
FINANCIAL LIABILITIES:
Deposits with no stated maturities	$	587,825	$	587,825	$	587,825	$	-	$	-
Deposits with stated maturities		304,851		307,634		-		-		307,634
Short-term borrowings		27,219		27,219		27,219		-		-
All other borrowings		57,085		61,695		-		-		61,695
Accrued interest payable		1,545		1,545		1,545		-		-

	December 31, 2014
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL ASSETS:
Cash and cash equivalents	$	32,872	$	32,872	$	32,872	$	-	$	-
Investment securities - AFS		127,110		127,110		-		127,110		-
Investment securities – HTM		19,840		20,213		-		17,241		2,972
Regulatory stock		6,173		6,173		6,173		-		-
Loans held for sale		5,051		5,127		5,127		-		-
Loans, net of allowance for loan loss and unearned income		817,457		819,935		-		-		819,935
Accrued interest income receivable		3,127		3,127		3,127		-		-
Bank owned life insurance		37,417		37,417		37,417		-		-
FINANCIAL LIABILITIES:
Deposits with no stated maturities	$	568,625	$	568,625	$	568,625	$	-	$	-
Deposits with stated maturities		301,256		304,744		-		-		304,744
Short-term borrowings		38,880		38,880		38,880		-		-
All other borrowings		55,085		59,256		-		-		59,256
Accrued interest payable		1,706		1,706		1,706		-		-

The fair value of cash and cash equivalents, regulatory stock, accrued interest income receivable, short-term borrowings, and accrued interest payable are equal to the current carrying value.

The fair value of investment securities is equal to the available quoted market price for similar securities. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the US Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things. The Level 3 securities are valued by discounted cash flows using the US Treasury rate for the remaining term of the securities.

Loans held for sale are priced individually at market rates on the day that the loan is locked for commitment with an investor. All loans in the held for sale account conform to Fannie Mae underwriting guidelines, with the specific intent of the loan being purchased by an investor at the predetermined rate structure. Loans in the held for sale account have specific delivery dates that must be executed to protect the pricing commitment (typically a 30, 45, or 60 day lock period).

The net loan portfolio has been valued using a present value discounted cash flow. The discount rate used in these calculations is based upon the treasury yield curve adjusted for non-interest operating costs, credit loss, current market prices and assumed prepayment risk.

The fair value of bank owned life insurance is based upon the cash surrender value of the underlying policies and matches the book value.

Deposits with stated maturities have been valued using a present value discounted cash flow with a discount rate approximating current market for similar assets and liabilities. Deposits with no stated maturities have an estimated fair value equal to both the amount payable on demand and the recorded book balance.

The fair value of all other borrowings is based on the discounted value of contractual cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities.

Commitments to extend credit and standby letters of credit are financial instruments generally not subject to sale, and fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, is not considered material for disclosure. The contractual amounts of unfunded commitments are presented in Note 15.

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. The Company's remaining assets and liabilities which are not considered financial instruments have not been valued differently than has been customary under historical cost accounting.

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Regulatory Capital

3 Months Ended

Mar. 31, 2015

Regulatory Capital [Abstract]

Regulatory Capital

13. Regulatory Capital

The Company is subject to various capital requirements administered by the federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. For March 31, 2015, the final Basel III rules require the Company to maintain minimum amounts and ratios of common equity Tier I capital (as defined in the regulations) to risk-weighted assets (RWA) (as defined). Additionally under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. For December 31, 2014, regulatory capital ratios were calculated under Basel I rules. As of March 31, 2015, the Company was categorized as “Well Capitalized” under the regulatory framework for prompt corrective action promulgated by the Federal Reserve. The Company believes that no conditions or events have occurred that would change this conclusion as of such date. To be categorized as Well Capitalized, the Company must maintain minimum Total Capital, Common Equity Tier 1 Capital, Tier 1 Capital, and Tier 1 leverage ratios as set forth in the table. Additionally, while not a regulatory capital ratio, the Company's tangible common equity ratio was 7.64% at March 31, 2015 (in thousands, except ratios).

	At March 31, 2015
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital (To RWA) Consolidated	$	131,581		14.68	%	$	71,688		8.00	%	$	89,609		10.00	%
AmeriServ Financial Bank		105,692		11.92			70,925		8.00			88,657		10.00
Common Equity Tier 1 Capital (To RWA) Consolidated		88,966		9.93			40,324		4.50			58,246		6.50
AmeriServ Financial Bank		95,106		10.73			39,896		4.50			57,627		6.50
Tier 1 Capital (To RWA) Consolidated		120,995		13.50			53,766		6.00			71,688		8.00
AmeriServ Financial Bank		95,106		10.73			53,194		6.00			70,925		8.00
Tier 1 Capital (To Average Assets) leverage Consolidated		120,995		11.24			43,072		4.00			53,839		5.00
AmeriServ Financial Bank		95,106		9.06			41,988		4.00			52,485		5.00

	At December 31, 2014
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital (To RWA) Consolidated	$	131,497		14.80	%	$	71,066		8.00	%	$	88,833		10.00	%
AmeriServ Financial Bank		106,084		12.07			70,305		8.00			87,881		10.00
Tier 1 Capital (To RWA) Consolidated		120,992		13.62			35,533		4.00			53,300		6.00
AmeriServ Financial Bank		95,579		10.88			35,153		4.00			52,729		6.00
Tier 1 Capital (To Average Assets) Consolidated		120,992		11.34			42,662		4.00			53,327		5.00
AmeriServ Financial Bank		95,579		9.19			41,608		4.00			52,010		5.00

On July 2, 2013, the Board of Governors of the Federal Reserve System approved final rules that substantially amend the regulatory risk-based capital rules applicable to the Company and the Bank. The final rules implement the “Basel III” regulatory capital reforms, as well as certain changes required by the Dodd-Frank Act, which will require institutions to, among other things, have more capital and a higher quality of capital by increasing the minimum regulatory capital ratios, and requiring capital buffers. The new rules became effective for the Company and the Bank on January 1, 2015, and have an implementation period that stretches to January 1, 2019. For a more detailed discussion see the Capital Resources section of the MD&A.

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Non-performing Assets Including Troubled Debt Restructurings (TDR)

3 Months Ended

Mar. 31, 2015

Nonperforming Assets Including Troubled Debt Restructurings [Abstract]

Non-performing Assets Including Troubled Debt Restructurings (TDR)

9. Non-performing Assets Including Troubled Debt Restructurings (TDR)

The following table presents information concerning non-performing assets including TDR (in thousands, except percentages):

	March 31, 2015			December 31, 2014
Non-accrual loans
Commercial loans secured by real estate	$	272		$	778
Real estate-mortgage		1,874			1,417
Total		2,146			2,195
Other real estate owned
Commercial loans secured by real estate		384			384
Real estate-mortgage		179			128
Total		563			512
TDR's not in non-accrual		337			210
Total non-performing assets including TDR	$	3,046		$	2,917
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned		0.36	%		0.35	%

The Company had no loans past due 90 days or more for the periods presented which were accruing interest.

The following table sets forth, for the periods indicated, (1) the gross interest income that would have been recorded if non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination if held for part of the period, (2) the amount of interest income actually recorded on such loans, and (3) the net reduction in interest income attributable to such loans (in thousands).

	Three months ended
	March 31,
	2015		2014
Interest income due in accordance with original terms	$	24	$	33
Interest income recorded		-		-
Net reduction in interest income	$	24	$	33

Consistent with accounting and regulatory guidance, the Bank recognizes a TDR when the Bank, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Bank's objective in offering a TDR is to increase the probability of repayment of the borrower's loan.

To be considered a TDR, both of the following criteria must be met:

• the borrower must be experiencing financial difficulties; and

• the Bank, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would not otherwise be considered.

Factors that indicate a borrower is experiencing financial difficulties include, but are not limited to:

• the borrower is currently in default on their loan(s);

• the borrower has filed for bankruptcy;

• the borrower has insufficient cash flows to service their loan(s); and

• the borrower is unable to obtain refinancing from other sources at a market rate similar to rates available to a non-troubled debtor.

Factors that indicate that a concession has been granted include, but are not limited to:

• the borrower is granted an interest rate reduction to a level below market rates for debt with similar risk; or

• the borrower is granted a material maturity date extension, or extension of the amortization plan to provide payment relief. For purposes of this policy, a material maturity date extension will generally include any maturity date extension, or the aggregate of multiple consecutive maturity date extensions, that exceed 120 days. A restructuring that results in an insignificant delay in payment, i.e. 120 days or less, is not necessarily a TDR. Insignificant payment delays occur when the amount of the restructured payments subject to the delay is insignificant relative to the unpaid principal or collateral value, and will result in an insignificant shortfall in the originally scheduled contractual amount due, and/or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the original maturity or the original amortization.

The determination of whether a restructured loan is a TDR requires consideration of all of the facts and circumstances surrounding the modification. No single factor is determinative of whether a restructuring is a TDR. An overall general decline in the economy or some deterioration in a borrower's financial condition does not automatically mean that the borrower is experiencing financial difficulty. Accordingly, determination of whether a modification is a TDR involves a large degree of judgment.

The following table details the loans modified as TDRs during the three month period ended March 31, 2015 (dollars in thousands).

Loans in accrual status	# of Loans		Current Balance		Concession Granted
Commercial loan		1	$	204	Extension of maturity date

The following table details the loans modified as TDRs during the three month period ended March 31, 2014 (dollars in thousands).

Loans in non-accrual status	# of Loans		Current Balance		Concession Granted
Commercial loan secured by real estate		1	$	265	Extension of maturity date

In all instances where loans have been modified in troubled debt restructurings the pre- and post-modified balances are the same. The specific ALL reserve for loans modified as TDR's was $502,000 and $365,000 as of March 31, 2015 and 2014, respectively. All TDR's are individually evaluated for impairment and a related allowance is recorded, as needed.

Once a loan is classified as a TDR, this classification will remain until documented improvement in the financial position of the borrower supports confidence that all principal and interest will be paid according to terms. Additionally, the customer must have re-established a track record of timely payments according to the restructured contract terms for a minimum of six consecutive months prior to consideration for removing the loan from non-accrual TDR status. However, a loan will continue to be on non-accrual status until, consistent with our policy, the borrower has made a minimum of an additional six consecutive monthly payments in accordance with the terms of the loan.

The Company had no loans that were classified as TDR's or were subsequently modified during each 12-month period prior to the reporting periods preceding January 1, 2015 and January 1, 2014, respectively, and subsequently defaulted during these reporting periods.

The Company is unaware of any additional loans which are required to either be charged-off or added to the non-performing asset totals disclosed above.

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Preferred Stock (Narrative) (Details) (Series E Preferred Stock [Member], USD $)	1 Months Ended	3 Months Ended
	Aug. 11, 2011	Mar. 31, 2015
Series E Preferred Stock [Member]
Temporary Equity [Line Items]
Shares of stock issued	21,000
Value of stock issued	$ 21,000,000
Dividend rate		9.00%
Shares of stock repurchased		$ 21,000,000
Minimum Tier 1 capital required to pay dividends		90.00%
Redemption price, percent of liquidation amount		100.00%

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Loans

3 Months Ended

Mar. 31, 2015

Loans [Abstract]

Loans

7. Loans

The loan portfolio of the Company consists of the following (in thousands):

	March 31, 2015		December 31, 2014
Commercial	$	151,293	$	139,126
Commercial loans secured by real estate		420,077		410,329
Real estate – mortgage		259,884		258,616
Consumer		19,143		19,009
Loans, net of unearned income	$	850,397	$	827,080

Loan balances at March 31, 2015 and December 31, 2014 are net of unearned income of $582,000 and $554,000, respectively. Real estate-construction loans comprised 3.2% and 3.5% of total loans, net of unearned income at March 31, 2015 and December 31, 2014, respectively.

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Allowance for Loan Losses

3 Months Ended

Mar. 31, 2015

Allowance for Loan Losses [Abstract]

Allowance for Loan Losses

8. Allowance for Loan Losses

The following tables summarize the rollforward of the allowance for loan losses by portfolio segment for the three month periods ending March 31, 2015 and 2014 (in thousands).

	Three months ended March 31, 2015,
	Balance at December 31, 2014		Charge- Offs			Recoveries		Provision (Credit)			Balance at March 31, 2015
Commercial	$	3,262	$	(121	)	$	6	$	10		$	3,157
Commercial loans secured by real estate		3,902		-			42		143			4,087
Real estate-mortgage		1,310		(103	)		30		67			1,304
Consumer		190		(47	)		9		39			191
Allocation for general risk		959		-			-		(9	)		950
Total	$	9,623	$	(271	)	$	87	$	250		$	9,689

	Three months ended March 31, 2014,
	Balance at December 31, 2013		Charge- Offs			Recoveries		Provision (Credit)			Balance at March 31, 2014
Commercial	$	2,844	$	(72	)	$	50	$	243		$	3,065
Commercial loans secured by real estate		4,885		(66	)		153		(310	)		4,662
Real estate-mortgage		1,260		(43	)		14		42			1,273
Consumer		136		(36	)		5		34			139
Allocation for general risk		979		-			-		(9	)		970
Total	$	10,104	$	(217	)	$	222	$	-		$	10,109

As a result of successful ongoing problem credit resolution efforts, the Company achieved further asset quality improvements in 2015 and 2014, specifically in the commercial loans secured by real estate category. There was no provision for loan losses in the first quarter of 2014, but the Company recorded a $250,000 provision in the first quarter of 2015 which was needed to support loan growth.

The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio (in thousands).

	At March 31, 2015
	Commercial		Commercial Loans Secured by Real Estate		Real Estate- Mortgage		Consumer		Allocation for General Risk		Total
Loans:
Individually evaluated for impairment	$	204	$	813	$	—	$	—			$	1,017
Collectively evaluated for impairment		151,089		419,264		259,884		19,143				849,380
Total loans	$	151,293	$	420,077	$	259,884	$	19,143			$	850,397
Allowance for loan losses:
Specific reserve allocation	$	31	$	471	$	—	$	—	$	—	$	502
General reserve allocation		3,126		3,616		1,304		191		950		9,187
Total allowance for loan losses	$	3,157	$	4,087	$	1,304	$	191	$	950	$	9,689

	At December 31, 2014
	Commercial		Commercial Loans Secured by Real Estate		Real Estate- Mortgage		Consumer		Allocation for General Risk		Total
Loans:
Individually evaluated for impairment	$	—	$	989	$	—	$	—			$	989
Collectively evaluated for impairment		139,126		409,340		258,616		19,009				826,091
Total loans	$	139,126	$	410,329	$	258,616	$	19,009			$	827,080
Allowance for loan losses:
Specific reserve allocation	$	—	$	520	$	—	$	-	$	—	$	520
General reserve allocation		3,262		3,382		1,310		190		959		9,103
Total allowance for loan losses	$	3,262	$	3,902	$	1,310	$	190	$	959	$	9,623

The segments of the Company's loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The loan segments used are consistent with the internal reports evaluated by the Company's management and Board of Directors to monitor risk and performance within various segments of its loan portfolio and therefore, no further disaggregation into classes is necessary. The overall risk profile for the commercial loan segment is impacted by non-owner occupied CRE loans, which include loans secured by non-owner occupied nonfarm nonresidential properties, as a meaningful but declining portion of the commercial portfolio is centered in these types of accounts. The residential mortgage loan segment is comprised of first lien amortizing residential mortgage loans and home equity loans secured by residential real estate. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts.

Management evaluates for possible impairment any individual loan in the commercial or commercial real estate segment with a loan balance in excess of $100,000 that is in nonaccrual status or classified as a Troubled Debt Restructure (TDR). Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loans are part of a larger relationship that is impaired, or are classified as a TDR.

Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods:  (a) the present value of expected future cash flows discounted at the loan's effective interest rate; (b) the loan's observable market price; or (c) the fair value of the collateral less selling costs for collateral dependent loans. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company's policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition.

The need for an updated appraisal on collateral dependent loans is determined on a case-by-case basis. The useful life of an appraisal or evaluation will vary depending upon the circumstances of the property and the economic conditions in the marketplace. A new appraisal is not required if there is an existing appraisal which, along with other information, is sufficient to determine a reasonable value for the property and to support an appropriate and adequate allowance for loan losses. At a minimum, annual documented reevaluation of the property is completed by the Bank's internal Assigned Risk Department to support the value of the property.

When reviewing an appraisal associated with an existing collateral real estate dependent transaction, the Bank's internal Assigned Risk Department must determine if there have been material changes to the underlying assumptions in the appraisal which affect the original estimate of value. Some of the factors that could cause material changes to reported values include:

§ the passage of time;

§ the volatility of the local market;

§ the availability of financing;

§ natural disasters;

§ the inventory of competing properties;

§ new improvements to, or lack of maintenance of, the subject property or competing properties upon physical inspection by the Bank;

§ changes in underlying economic and market assumptions, such as material changes in current and projected vacancy, absorption rates, capitalization rates, lease terms, rental rates, sales prices, concessions, construction overruns and delays, zoning changes, etc.; and/or

§ environmental contamination.

The value of the property is adjusted to appropriately reflect the above listed factors and the value is discounted to reflect the value impact of a forced or distressed sale, any outstanding senior liens, any outstanding unpaid real estate taxes, transfer taxes and closing costs that would occur with sale of the real estate. If the Assigned Risk Department personnel determine that a reasonable value cannot be derived based on available information, a new appraisal is ordered. The determination of the need for a new appraisal, versus completion of a property valuation by the Bank's Assigned Risk Department personnel rests with the Assigned Risk Department and not the originating account officer.

The following tables present impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary (in thousands).

	March 31, 2015
	Impaired Loans with Specific Allowance				Impaired Loans with no Specific Allowance		Total Impaired Loans
	Recorded Investment		Related Allowance		Recorded Investment		Recorded Investment		Unpaid  Principal Balance
Commercial	$	204	$	31	$	-	$	204	$	204
Commercial loans secured by real estate		813		471		-		813		900
Total impaired loans	$	1,017	$	502	$	-	$	1,017	$	1,104

	December 31, 2014
	Impaired Loans with Specific Allowance				Impaired  Loans with no Specific Allowance		Total Impaired Loans
	Recorded Investment		Related Allowance		Recorded Investment		Recorded Investment		Unpaid  Principal Balance
Commercial loans secured by real estate	$	989	$	520	$	-	$	989	$	1,069
Total impaired loans	$	989	$	520	$	-	$	989	$	1,069

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands).

	Three months ended March 31,
	2015		2014
Average loan balance:
Commercial	$	102	$	-
Commercial loans secured by real estate		901		2,623
Average investment in impaired loans	$	1,003	$	2,623
Interest income recognized:
Commercial	$	1	$	-
Commercial loans secured by real estate		6		1
Interest income recognized on a cash basis on impaired loans	$	7	$	1

Management uses a nine point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized. The first five “Pass” categories are aggregated, while the Pass-6, Special Mention, Substandard and Doubtful categories are disaggregated to separate pools. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due, or for which any portion of the loan represents a specific allocation of the allowance for loan losses are placed in Substandard or Doubtful.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process, which dictates that, at a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $250,000 within a 12-month period. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, delinquency, or death occurs to raise awareness of a possible credit event. The Company's commercial relationship managers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. Risk ratings are assigned by the account officer, but require independent review and rating concurrence from the Company's internal Loan Review Department. The Loan Review Department is an experienced independent function which reports directly to the Board's Audit Committee. The scope of commercial portfolio coverage by the Loan Review Department is defined and presented to the Audit Committee for approval on an annual basis. The approved scope of coverage for 2015 required review of a minimum range of 50% to 55% of the commercial loan portfolio.

In addition to loan monitoring by the account officer and Loan Review Department, the Company also requires presentation of all credits rated Pass-6 with aggregate balances greater than $1,000,000, all credits rated Special Mention or Substandard with aggregate balances greater than $250,000, and all credits rated Doubtful with aggregate balances greater than $100,000 on an individual basis to the Company's Loan Loss Reserve Committee on a quarterly basis. Additionally, the Asset Quality Task Force, which is a group comprised of senior level personnel, meets monthly to monitor the status of problem loans.

The following table presents the classes of the commercial loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system (in thousands).

	March 31, 2015
	Pass		Special Mention		Substandard			Doubtful	Total
Commercial	$	146,481	$	678	$	4,001	$	133	$	151,293
Commercial loans secured by real estate		413,868		2,665		3,271		273		420,077
Total	$	560,349	$	3,343	$	7,272	$	406	$	571,370

	December 31, 2014
	Pass		Special Mention		Substandard			Doubtful	Total
Commercial	$	132,665	$	161	$	6,164	$	136	$	139,126
Commercial loans secured by real estate		406,195		620		3,238		276		410,329
Total	$	538,860	$	781	$	9,402	$	412	$	549,455

It is generally the policy of the bank that the outstanding balance of any residential mortgage loan that exceeds 90-days past due as to principal and/or interest is transferred to non-accrual status and an evaluation is completed to determine the fair value of the collateral less selling costs, unless the balance is minor. A charge down is recorded for any deficiency balance determined from the collateral evaluation. The remaining non-accrual balance is reported as impaired with no specific allowance. It is the policy of the bank that the outstanding balance of any consumer loan that exceeds 90-days past due as to principal and/or interest is charged off. The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolios (in thousands).

	March 31, 2015
	Performing		Non-Performing
Real estate- mortgage	$	258,010	$	1,874
Consumer		19,143		-
Total	$	277,243	$	1,874

	December 31, 2014
	Performing		Non-Performing
Real estate- mortgage	$	257,199	$	1,417
Consumer		19,009		-
Total	$	276,208	$	1,417

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans (in thousands).

	March 31, 2015
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Total Loans		90 Days Past Due and Still Accruing
Commercial	$	151,293	$	—	$	—	$	—	$	—	$	151,293	$	—
Commercial loans secured by real estate		419,483		358		236		—		594		420,077		—
Real estate- mortgage		256,781		1,374		461		1,268		3,103		259,884		—
Consumer		19,118		23		2		—		25		19,143		—
Total	$	846,675	$	1,755	$	699	$	1,268	$	3,722	$	850,397	$	—

	December 31, 2014
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Total Loans		90 Days Past Due and Still Accruing
Commercial	$	139,126	$	—	$	—	$	—	$	—	$	139,126	$	—
Commercial loans secured by real estate		410,049		280		—		—		280		410,329		—
Real estate- mortgage		255,021		2,196		332		1,067		3,595		258,616		—
Consumer		18,927		74		8		—		82		19,009		—
Total	$	823,123	$	2,550	$	340	$	1,067	$	3,957	$	827,080	$	—

An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management's continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans.

Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are complemented by consideration of other qualitative factors.

Management tracks the historical net charge-off activity at each risk rating grade level for the entire commercial portfolio and at the aggregate level for the consumer, residential mortgage and small business portfolios. A historical charge-off factor is calculated utilizing a rolling 12 consecutive historical quarters for the commercial portfolios. This historical charge-off factor for the consumer, residential mortgage and small business portfolios are based on a three year historical average of actual loss experience.

The Company uses a comprehensive methodology and procedural discipline to maintain an ALL to absorb inherent losses in the loan portfolio. The Company believes this is a critical accounting policy since it involves significant estimates and judgments. The allowance consists of three elements: 1) an allowance established on specifically identified problem loans, 2) formula driven general reserves established for loan categories based upon historical loss experience and other qualitative factors which include delinquency, non-performing and TDR loans, loan trends, economic trends, concentrations of credit, trends in loan volume, experience and depth of management, examination and audit results, effects of any changes in lending policies, and trends in policy, financial information, and documentation exceptions, and 3) a general risk reserve which provides support for variance from our assessment of the previously listed qualitative factors, provides protection against credit risks resulting from other inherent risk factors contained in the Company's loan portfolio, and recognizes the model and estimation risk associated with the specific and formula driven allowances. The qualitative factors used in the formula driven general reserves are evaluated quarterly (and revised if necessary) by the Company's management to establish allocations which accommodate each of the listed risk factors.

“Pass” rated credits are segregated from “Criticized” and “Classified” credits for the application of qualitative factors.

Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL.

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Federal Home Loan Bank Borrowings

3 Months Ended

Mar. 31, 2015

Federal Home Loan Bank Borrowings [Abstract]

Federal Home Loan Bank Borrowings

10. Federal Home Loan Bank Borrowings

Total Federal Home Loan Bank (FHLB) borrowings and advances consist of the following (in thousands, except percentages):

	At March 31, 2015
				Weighted
Type	Maturing	Amount		Average Rate
Open Repo Plus	Overnight	$	27,219		0.33	%
Advances	2015		4,000		0.52
	2016		12,000		0.81
	2017		12,000		1.06
	2018		10,000		1.51
	2019 and over		6,000		1.83
Total advances			44,000		1.15
Total FHLB borrowings		$	71,219		0.84	%

	At December 31, 2014
					Weighted
Type	Maturing	Amount		Average Rate
Open Repo Plus	Overnight	$	38,880		0.27	%
Advances	2015		4,000		0.52
	2016		12,000		0.81
	2017		12,000		1.06
	2018		10,000		1.51
	2019 and over		4,000		1.88
Total advances			42,000		1.12
Total FHLB borrowings		$	80,880		0.71	%

The rate on Open Repo Plus advances can change daily, while the rates on the advances are fixed until the maturity of the advance.

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Segment Results (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Contribution of segments to the consolidated results of operations
Total revenue	$ 12,646	$ 12,057
Net income	1,369	930
Total assets	1,103,416		1,089,263
Retail Banking [Member]
Contribution of segments to the consolidated results of operations
Total revenue	6,524	6,117
Net income	659	348
Total assets	374,490		376,009
Commercial Banking [Member]
Contribution of segments to the consolidated results of operations
Total revenue	4,738	4,327
Net income	1,291	1,096
Total assets	586,916		563,690
Trust [Member]
Contribution of segments to the consolidated results of operations
Total revenue	2,167	2,114
Net income	380	308
Total assets	5,125		5,015
Investment/ Parent [Member]
Contribution of segments to the consolidated results of operations
Total revenue	(783)	(501)
Net income	(961)	(822)
Total assets	$ 136,885		$ 144,549

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Pension Benefits (Net Periodic Pension Cost) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net periodic pension cost
Service cost	$ 400	$ 430
Interest cost	325	331
Expected return on plan assets	(525)	(498)
Amortization of prior year service cost		(5)
Recognized net actuarial loss	300	272
Net periodic pension cost	$ 500	$ 530

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Regulatory Capital (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Summarized regulatory capital ratio of company
Tangible common equity ratio	7.64%
Consolidated [Member]
Summarized regulatory capital ratio of company
Total Capital (To RWA), Actual Amount	$ 131,581	$ 131,497
Total Capital (To RWA), Actual Ratio	14.68%	14.80%
Total Capital (To RWA), For Capital Adequacy Purposes Amount	71,688	71,066
Total Capital (To RWA), For Capital Adequacy Purposes Ratio	8.00%	8.00%
Total Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	89,609	88,833
Total Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	10.00%	10.00%
Common Equity Tier 1 Capital (To RWA), Actual Amount	88,966
Common Equity Tier 1 Capital (To RWA), Actual Ratio	9.93%
Common Equity Tier 1 Capital (To RWA), For Capital Adequacy Purposes Amount	40,324
Common Equity Tier 1 Capital (To RWA), For Capital Adequacy Purposes Ratio	4.50%
Common Equity Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	58,246
Common Equity Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	6.50%
Tier 1 Capital (To RWA), Actual Amount	120,995	120,992
Tier 1 Capital (To RWA), Actual Ratio	13.50%	13.62%
Tier 1 Capital (To RWA), For Capital Adequacy Purposes Amount	53,766	35,533
Tier 1 Capital (To RWA), For Capital Adequacy Purposes Ratio	6.00%	4.00%
Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	71,688	53,300
Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	8.00%	6.00%
Tier 1 Capital (To Average Assets), Actual Amount	120,995	120,992
Tier 1 Capital (To Average Assets), Actual Ratio	11.24%	11.34%
Tier 1 Capital (To Average Assets), For Capital Adequacy Purposes Amount	43,072	42,662
Tier 1 Capital (To Average Assets), For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 Capital (To Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	53,839	53,327
Tier 1 Capital (To Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	5.00%	5.00%
AmeriServ Financial Bank [Member]
Summarized regulatory capital ratio of company
Total Capital (To RWA), Actual Amount	105,692	106,084
Total Capital (To RWA), Actual Ratio	11.92%	12.07%
Total Capital (To RWA), For Capital Adequacy Purposes Amount	70,925	70,305
Total Capital (To RWA), For Capital Adequacy Purposes Ratio	8.00%	8.00%
Total Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	88,657	87,881
Total Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	10.00%	10.00%
Common Equity Tier 1 Capital (To RWA), Actual Amount	95,106
Common Equity Tier 1 Capital (To RWA), Actual Ratio	10.73%
Common Equity Tier 1 Capital (To RWA), For Capital Adequacy Purposes Amount	39,896
Common Equity Tier 1 Capital (To RWA), For Capital Adequacy Purposes Ratio	4.50%
Common Equity Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	57,627
Common Equity Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	6.50%
Tier 1 Capital (To RWA), Actual Amount	95,106	95,579
Tier 1 Capital (To RWA), Actual Ratio	10.73%	10.88%
Tier 1 Capital (To RWA), For Capital Adequacy Purposes Amount	53,194	35,153
Tier 1 Capital (To RWA), For Capital Adequacy Purposes Ratio	6.00%	4.00%
Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	70,925	52,729
Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	8.00%	6.00%
Tier 1 Capital (To Average Assets), Actual Amount	95,106	95,579
Tier 1 Capital (To Average Assets), Actual Ratio	9.06%	9.19%
Tier 1 Capital (To Average Assets), For Capital Adequacy Purposes Amount	41,988	41,608
Tier 1 Capital (To Average Assets), For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 Capital (To Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 52,485	$ 52,010
Tier 1 Capital (To Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	5.00%	5.00%

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Pension Benefits (Tables)

3 Months Ended

Mar. 31, 2015

Pension Benefits [Abstract]

Schedule of Components of Net Periodic Benefit Cost

	Three months ended
	March 31,
	2015			2014
Components of net periodic benefit cost
Service cost	$	400		$	430
Interest cost		325			331
Expected return on plan assets		(525	)		(498	)
Amortization of prior year service cost		-			(5	)
Recognized net actuarial loss		300			272
Net periodic pension cost	$	500		$	530

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Allowance for Loan Losses (Performing and Non-performing Outstanding Balances) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Performing [Member]
Performing and non-performing outstanding balances of the residential and consumer portfolios
Outstanding balance of consumer loan	$ 277,243	$ 276,208
Performing [Member] | Real estate-mortgage [Member]
Performing and non-performing outstanding balances of the residential and consumer portfolios
Outstanding balance of consumer loan	258,010	257,199
Performing [Member] | Consumer [Member]
Performing and non-performing outstanding balances of the residential and consumer portfolios
Outstanding balance of consumer loan	19,143	19,009
Non-Performing [Member]
Performing and non-performing outstanding balances of the residential and consumer portfolios
Outstanding balance of consumer loan	1,874	1,417
Non-Performing [Member] | Real estate-mortgage [Member]
Performing and non-performing outstanding balances of the residential and consumer portfolios
Outstanding balance of consumer loan	1,874	1,417
Non-Performing [Member] | Consumer [Member]
Performing and non-performing outstanding balances of the residential and consumer portfolios
Outstanding balance of consumer loan

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Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2015

Commitments and Contingent Liabilities [Abstract]

Commitments and Contingent Liabilities

15. Commitments and Contingent Liabilities

The Company had various outstanding commitments to extend credit approximating $181.5 million and $188.0 million along with standby letters of credit of $7.8 million and $7.2 million as of March 31, 2015 and December 31, 2014, respectively. The Company's exposure to credit loss in the event of nonperformance by the other party to these commitments to extend credit and standby letters of credit is represented by their contractual amounts. The Bank uses the same credit and collateral policies in making commitments and conditional obligations as for all other lending.

Additionally, the Company is also subject to a number of asserted and unasserted potential claims encountered in the normal course of business. In the opinion of the Company, neither the resolution of these claims nor the funding of these credit commitments will have a material adverse effect on the Company's consolidated financial position, results of operation or cash flows.

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Loans (Tables)

3 Months Ended

Mar. 31, 2015

Loans [Abstract]

Summary of Loan Portfolio

	March 31, 2015		December 31, 2014
Commercial	$	151,293	$	139,126
Commercial loans secured by real estate		420,077		410,329
Real estate – mortgage		259,884		258,616
Consumer		19,143		19,009
Loans, net of unearned income	$	850,397	$	827,080

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Allowance for Loan Losses (Average Recorded Investment in Impaired Loans and Related Interest Income Recognized) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	$ 1,003	$ 2,623
Interest income recognized:
Interest income recognized on a cash basis on impaired loans	7	1
Commercial [Member]
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	102
Interest income recognized:
Interest income recognized on a cash basis on impaired loans	1
Commercial loans secured by real estate [Member]
Average recorded investment in impaired loans and related interest income recognized
Average investment in impaired loans	901	2,623
Interest income recognized:
Interest income recognized on a cash basis on impaired loans	$ 6	$ 1

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Investment Securities (Information Concerning Investments with Unrealized Losses) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Information concerning investments with unrealized losses
Investment securities available for sale, Less than 12 months, Fair Value	$ 4,317	$ 6,932
Investment securities available for sale, Less than 12 months, Unrealized Losses	(31)	(61)
Investment securities available for sale, 12 months or longer, Fair Value	25,691	33,145
Investment securities available for sale, 12 months or longer, Unrealized Losses	(355)	(526)
Investment securities available for sale, Total, Fair Value	30,008	40,077
Investment securities available for sale, Gross Unrealized Losses	(386)	(587)
U.S. Agency [Member]
Information concerning investments with unrealized losses
Investment securities available for sale, Less than 12 months, Fair Value		996
Investment securities available for sale, Less than 12 months, Unrealized Losses		(4)
Investment securities available for sale, 12 months or longer, Fair Value	2,887	2,858
Investment securities available for sale, 12 months or longer, Unrealized Losses	(13)	(42)
Investment securities available for sale, Total, Fair Value	2,887	3,854
Investment securities available for sale, Gross Unrealized Losses	(13)	(46)
U.S. Agency mortgage-backed securities [Member]
Information concerning investments with unrealized losses
Investment securities available for sale, Less than 12 months, Fair Value	2,347	2,826
Investment securities available for sale, Less than 12 months, Unrealized Losses	(4)	(13)
Investment securities available for sale, 12 months or longer, Fair Value	12,934	20,408
Investment securities available for sale, 12 months or longer, Unrealized Losses	(214)	(354)
Investment securities available for sale, Total, Fair Value	15,281	23,234
Investment securities available for sale, Gross Unrealized Losses	(218)	(367)
Taxable Municipal [Member]
Information concerning investments with unrealized losses
Investment securities available for sale, Less than 12 months, Fair Value		150
Investment securities available for sale, Less than 12 months, Unrealized Losses		(1)
Investment securities available for sale, 12 months or longer, Fair Value		988
Investment securities available for sale, 12 months or longer, Unrealized Losses		(23)
Investment securities available for sale, Total, Fair Value		1,138
Investment securities available for sale, Gross Unrealized Losses		(24)
Corporate bonds and other securities [Member]
Information concerning investments with unrealized losses
Investment securities available for sale, Less than 12 months, Fair Value	1,970	2,960
Investment securities available for sale, Less than 12 months, Unrealized Losses	(27)	(43)
Investment securities available for sale, 12 months or longer, Fair Value	9,870	8,891
Investment securities available for sale, 12 months or longer, Unrealized Losses	(128)	(107)
Investment securities available for sale, Total, Fair Value	11,840	11,851
Investment securities available for sale, Gross Unrealized Losses	$ (155)	$ (150)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
COMPREHENSIVE INCOME
Net income	$ 1,369	$ 930
Other comprehensive income, before tax:
Pension obligation change for defined benefit plan	655	392
Income tax effect	(223)	(133)
Unrealized holding gains on available for sale securities arising during period	346	514
Income tax effect	(117)	(175)
Reclassification adjustment for gains on available for sale securities included in net income		(57)
Income tax effect		20
Other comprehensive income	661	561
Comprehensive income	$ 2,030	$ 1,491

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2015

Earnings Per Common Share [Abstract]

Earnings Per Common Share

4. Earnings Per Common Share

Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are treated as retired for earnings per share purposes. Options to purchase 198,888 common shares, at exercise prices ranging from $2.98 to $4.70, and 8,625 common shares, at exercise prices ranging from $4.60 to $5.75, were outstanding as of March 31, 2015 and 2014, respectively, but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. Dividends on preferred shares are deducted from net income in the calculation of earnings per common share.

	Three months ended March 31,
	2015		2014
	(In thousands, except per share data)
Numerator:
Net income	$	1,369	$	930
Preferred stock dividends		53		53
Net income available to common shareholders	$	1,316	$	877
Denominator:
Weighted average common shares  outstanding (basic)		18,851		18,786
Effect of stock options		58		118
Weighted average common shares outstanding (diluted)		18,909		18,904
Earnings per common share:
Basic	$	0.07	$	0.05
Diluted		0.07		0.05

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Federal Home Loan Bank Borrowings (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Federal Home Loan Bank (FHLB) borrowings and advances
Open Repo Plus, Maturing Overnight, Amount	$ 27,219	$ 38,880
Advances, Maturing 2015, Amount	4,000	4,000
Advances, Maturing 2016, Amount	12,000	12,000
Advances, Maturing 2017, Amount	12,000	12,000
Advances, Maturing 2018, Amount	10,000	10,000
Advances, Maturing 2019 and over, Amount	6,000	4,000
Advances from Federal Home Loan Bank	44,000	42,000
Total FHLB borrowings, Amount	$ 71,219	$ 80,880
Open Repo Plus Maturity Overnight, Weighted Average Rate	0.33%	0.27%
Advances Maturing 2015, Weighted Average Rate	0.52%	0.52%
Advances Maturing 2016, Weighted Average Rate	0.81%	0.81%
Advances Maturing 2017, Weighted Average Rate	1.06%	1.06%
Advances Maturing 2018, Weighted Average Rate	1.51%	1.51%
Advances Maturing 2019 and over, Weighted Average Rate	1.83%	1.88%
Total advances, Weighted Average Rate	1.15%	1.12%
Aggregate FHLB borrowings, Weighted Average Rate	0.84%	0.71%

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Disclosures about Fair Value Measurements (Assets Measured at Fair Value on Non-Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified

3 Months Ended

12 Months Ended

Mar. 31, 2015

Dec. 31, 2014

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Carrying value of impaired loans

1,017

989

Fair Value Measurements, Nonrecurring Basis [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Other real estate owned

563

512

Carrying value of impaired loans

515

469

Fair Value Measurements, Nonrecurring Basis [Member] | Impaired Loans [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Liquidation expenses

10.00%

10.00%

Valuation Techniques

Appraisal of collateral

^[1],[2]

Appraisal of collateral

^[1],[2]

Appraisal of Adjustment

30.00%

30.00%

Fair Value Measurements, Nonrecurring Basis [Member] | Other Real Estate Owned [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Liquidation expenses

10.00%

9.00%

Valuation Techniques

Appraisal of collateral

^[1],[2]

Appraisal of collateral

^[1],[2]

Appraisal of Adjustment

38.00%

55.00%

Fair Value Measurements, Nonrecurring Basis [Member] | Minimum [Member] | Impaired Loans [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Liquidation expenses

1.00%

1.00%

Appraisal of Adjustment

0.00%

0.00%

Fair Value Measurements, Nonrecurring Basis [Member] | Minimum [Member] | Other Real Estate Owned [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Liquidation expenses

1.00%

1.00%

Appraisal of Adjustment

0.00%

47.00%

Fair Value Measurements, Nonrecurring Basis [Member] | Maximum [Member] | Impaired Loans [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Liquidation expenses

15.00%

15.00%

Appraisal of Adjustment

35.00%

37.00%

Fair Value Measurements, Nonrecurring Basis [Member] | Maximum [Member] | Other Real Estate Owned [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Liquidation expenses

20.00%

61.00%

Appraisal of Adjustment

48.00%

83.00%

Fair Value Measurements, Nonrecurring Basis [Member] | Level 1 [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Other real estate owned

Carrying value of impaired loans

Fair Value Measurements, Nonrecurring Basis [Member] | Level 2 [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Other real estate owned

Carrying value of impaired loans

Fair Value Measurements, Nonrecurring Basis [Member] | Level 3 [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Other real estate owned

563

512

Carrying value of impaired loans

515

469

[1] Includes qualitative adjustments by management and estimated liquidation expenses.

[2] Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

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Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2015

Allowance for Loan Losses [Abstract]

Rollforward of the Allowance for Loan Losses by Portfolio Segment

	Three months ended March 31, 2015,
	Balance at December 31, 2014		Charge- Offs			Recoveries		Provision (Credit)			Balance at March 31, 2015
Commercial	$	3,262	$	(121	)	$	6	$	10		$	3,157
Commercial loans secured by real estate		3,902		-			42		143			4,087
Real estate-mortgage		1,310		(103	)		30		67			1,304
Consumer		190		(47	)		9		39			191
Allocation for general risk		959		-			-		(9	)		950
Total	$	9,623	$	(271	)	$	87	$	250		$	9,689

	Three months ended March 31, 2014,
	Balance at December 31, 2013		Charge- Offs			Recoveries		Provision (Credit)			Balance at March 31, 2014
Commercial	$	2,844	$	(72	)	$	50	$	243		$	3,065
Commercial loans secured by real estate		4,885		(66	)		153		(310	)		4,662
Real estate-mortgage		1,260		(43	)		14		42			1,273
Consumer		136		(36	)		5		34			139
Allocation for general risk		979		-			-		(9	)		970
Total	$	10,104	$	(217	)	$	222	$	-		$	10,109

Summary of Primary Segments of Loan Portfolio

	At March 31, 2015
	Commercial		Commercial Loans Secured by Real Estate		Real Estate- Mortgage		Consumer		Allocation for General Risk		Total
Loans:
Individually evaluated for impairment	$	204	$	813	$	—	$	—			$	1,017
Collectively evaluated for impairment		151,089		419,264		259,884		19,143				849,380
Total loans	$	151,293	$	420,077	$	259,884	$	19,143			$	850,397
Allowance for loan losses:
Specific reserve allocation	$	31	$	471	$	—	$	—	$	—	$	502
General reserve allocation		3,126		3,616		1,304		191		950		9,187
Total allowance for loan losses	$	3,157	$	4,087	$	1,304	$	191	$	950	$	9,689

	At December 31, 2014
	Commercial		Commercial Loans Secured by Real Estate		Real Estate- Mortgage		Consumer		Allocation for General Risk		Total
Loans:
Individually evaluated for impairment	$	—	$	989	$	—	$	—			$	989
Collectively evaluated for impairment		139,126		409,340		258,616		19,009				826,091
Total loans	$	139,126	$	410,329	$	258,616	$	19,009			$	827,080
Allowance for loan losses:
Specific reserve allocation	$	—	$	520	$	—	$	-	$	—	$	520
General reserve allocation		3,262		3,382		1,310		190		959		9,103
Total allowance for loan losses	$	3,262	$	3,902	$	1,310	$	190	$	959	$	9,623

Impaired Loans by Class

	March 31, 2015
	Impaired Loans with Specific Allowance				Impaired Loans with no Specific Allowance		Total Impaired Loans
	Recorded Investment		Related Allowance		Recorded Investment		Recorded Investment		Unpaid  Principal Balance
Commercial	$	204	$	31	$	-	$	204	$	204
Commercial loans secured by real estate		813		471		-		813		900
Total impaired loans	$	1,017	$	502	$	-	$	1,017	$	1,104

	December 31, 2014
	Impaired Loans with Specific Allowance				Impaired  Loans with no Specific Allowance		Total Impaired Loans
	Recorded Investment		Related Allowance		Recorded Investment		Recorded Investment		Unpaid  Principal Balance
Commercial loans secured by real estate	$	989	$	520	$	-	$	989	$	1,069
Total impaired loans	$	989	$	520	$	-	$	989	$	1,069

Average Recorded Investment in Impaired Loans and Related Interest Income Recognized

	Three months ended March 31,
	2015		2014
Average loan balance:
Commercial	$	102	$	-
Commercial loans secured by real estate		901		2,623
Average investment in impaired loans	$	1,003	$	2,623
Interest income recognized:
Commercial	$	1	$	-
Commercial loans secured by real estate		6		1
Interest income recognized on a cash basis on impaired loans	$	7	$	1

Loan Portfolio Summarized by Categories

	March 31, 2015
	Pass		Special Mention		Substandard			Doubtful	Total
Commercial	$	146,481	$	678	$	4,001	$	133	$	151,293
Commercial loans secured by real estate		413,868		2,665		3,271		273		420,077
Total	$	560,349	$	3,343	$	7,272	$	406	$	571,370

	December 31, 2014
	Pass		Special Mention		Substandard			Doubtful	Total
Commercial	$	132,665	$	161	$	6,164	$	136	$	139,126
Commercial loans secured by real estate		406,195		620		3,238		276		410,329
Total	$	538,860	$	781	$	9,402	$	412	$	549,455

Performing and Non-performing Outstanding Balances

	March 31, 2015
	Performing		Non-Performing
Real estate- mortgage	$	258,010	$	1,874
Consumer		19,143		-
Total	$	277,243	$	1,874

	December 31, 2014
	Performing		Non-Performing
Real estate- mortgage	$	257,199	$	1,417
Consumer		19,009		-
Total	$	276,208	$	1,417

Classes of Loan Portfolio by Categories

	March 31, 2015
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Total Loans		90 Days Past Due and Still Accruing
Commercial	$	151,293	$	—	$	—	$	—	$	—	$	151,293	$	—
Commercial loans secured by real estate		419,483		358		236		—		594		420,077		—
Real estate- mortgage		256,781		1,374		461		1,268		3,103		259,884		—
Consumer		19,118		23		2		—		25		19,143		—
Total	$	846,675	$	1,755	$	699	$	1,268	$	3,722	$	850,397	$	—

	December 31, 2014
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Total Loans		90 Days Past Due and Still Accruing
Commercial	$	139,126	$	—	$	—	$	—	$	—	$	139,126	$	—
Commercial loans secured by real estate		410,049		280		—		—		280		410,329		—
Real estate- mortgage		255,021		2,196		332		1,067		3,595		258,616		—
Consumer		18,927		74		8		—		82		19,009		—
Total	$	823,123	$	2,550	$	340	$	1,067	$	3,957	$	827,080	$	—

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Earnings Per Common Share (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares not included in computation of earnings per common share	198,888	8,625
Minimum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price of common shares	2.98	4.60
Maximum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price of common shares	4.70	5.75

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Segment Results

3 Months Ended

Mar. 31, 2015

Segment Results [Abstract]

Segment Results

14. Segment Results

The financial performance of the Company is also monitored by an internal funds transfer pricing profitability measurement system which produces line of business results and key performance measures. The Company's major business units include retail banking, commercial banking, trust, and investment/parent. The reported results reflect the underlying economics of the business segments. Expenses for centrally provided services are allocated based upon the cost and estimated usage of those services. The businesses are match-funded and interest rate risk is centrally managed and accounted for within the investment/parent business segment. The key performance measure the Company focuses on for each business segment is net income contribution.

Retail banking includes the deposit-gathering branch franchise and lending to both individuals and small businesses. Lending activities include residential mortgage loans, direct consumer loans, and small business commercial loans. Commercial banking to businesses includes commercial loans, and CRE loans. The trust segment contains our wealth management businesses which include the Trust Company, West Chester Capital Advisors (WCCA), our registered investment advisory firm and financial services. Wealth management includes personal trust products and services such as personal portfolio investment management, estate planning and administration, custodial services and pre-need trusts. Also, institutional trust products and services such as 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts are included in this segment. Financial services include the sale of mutual funds, annuities, and insurance products. The wealth management businesses also includes the union collective investment funds, namely the ERECT and BUILD funds which are designed to use union pension dollars in construction projects that utilize union labor. The investment/parent includes the net results of investment securities and borrowing activities, general corporate expenses not allocated to the business segments, interest expense on guaranteed junior subordinated deferrable interest debentures, and centralized interest rate risk management. Inter-segment revenues were not material.

The contribution of the major business segments to the Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014 were as follows (in thousands):

	Three months ended						March 31,
	March 31, 2015						2015
	Total revenue			Net income (loss)			Total assets
Retail banking	$	6,524		$	659		$	374,490
Commercial banking		4,738			1,291			586,916
Trust		2,167			380			5,125
Investment/Parent		(783	)		(961	)		136,885
Total	$	12,646		$	1,369		$	1,103,416

	Three months ended						December 31,
	March 31, 2014						2014
	Total revenue			Net income (loss)			Total assets
Retail banking	$	6,117		$	348		$	376,009
Commercial banking		4,327			1,096			563,690
Trust		2,114			308			5,015
Investment/Parent		(501	)		(822	)		144,549
Total	$	12,057		$	930		$	1,089,263