STOCK COMPENSATION PLANS

12 Months Ended

Dec. 31, 2025

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS

17. STOCK COMPENSATION PLANS

The Company uses the modified prospective method for accounting for stock-based compensation and recognized no stock compensation expense for 2025 compared to $8,000 of stock compensation expense in 2024.

During 2021, the Company’s Board adopted, and its shareholders approved, the AmeriServ Financial, Inc. 2021 Equity Incentive Plan (the Plan) authorizing the grant of options or restricted stock covering 600,000 shares of common stock. This Plan replaced the expired 2011 Stock Incentive Plan. Under the Plan, options or restricted stock can be granted (the Grant Date) to directors, officers, and employees that provide services to the Company and its affiliates, as selected by the Compensation/Human Resources Committee of the Board. The option price at which a granted stock option may be exercised will not be less than 100% of the fair market value per share of common stock on the Grant Date. The maximum term of any option granted under the Plan cannot exceed 10 years. Generally, options vest over a three-year period and become exercisable in equal installments over the vesting period. At times, options with a one-year vesting period may also be issued.

A summary of the status of the Company’s Equity Incentive Plan at December 31, 2025 and 2024, and changes during the years then ended are presented in the table and narrative following:

	YEAR ENDED DECEMBER 31,
	2025			2024
		WEIGHTED			WEIGHTED
		AVERAGE			AVERAGE
	SHARES	EXERCISE PRICE		SHARES	EXERCISE PRICE
Outstanding at beginning of year	194,000	$	3.72	245,000	$	3.64
Granted	—		—	—		—
Exercised	(3,000)		2.96	—		—
Forfeited	(25,000)		3.38	(51,000)		3.31
Outstanding at end of year	166,000		3.79	194,000		3.72
Exercisable at end of year	166,000		3.79	194,000		3.72
Weighted average fair value of options granted in current year		$	—		$	—

All of the 166,000 options outstanding at December 31, 2025 were exercisable and had exercise prices between $2.96 and $4.22, with a weighted average exercise price of $3.79 and a weighted average remaining contractual life of 4.45 years. The fair value of each option grant is estimated on the date of grant using the Binomial or Black-Scholes option pricing model. No stock options or restricted stock were granted during 2025 and 2024.

The intrinsic value of stock options exercised was $480 in 2025. There were no stock options exercised during 2024.