2008 THIRD QUARTER SUMMARY OVERVIEW…..

On October 14th, AmeriServ announced third quarter 2008 net income of $1,149,000 or $0.05 per share. This represents an increase of $275,000, or a 31% improvement over the third quarter 2007 results of $874,000 or $0.04 per share. For the nine months of 2008, AmeriServ has reported net income of $3,894,000 or $0.18 per share as compared with $2,110,000 or $0.10 per share through nine months of 2007. These gains have resulted from increases in loans outstanding and an improvement in the net interest margin as AmeriServ managed its balance sheet to benefit from the Federal Reserve reduction in interest rates. We view this performance as a continuation of the Turnaround process that is so important for the future of AmeriServ. But there are serious challenges in the larger economy.

We are concerned about this continuing decline of the national economy and we are exercising due diligence to monitor the impact on AmeriServ. We strengthened the allowance for loan losses, this action means that the allowance provides coverage of 198% of non performing loans which, as of September 30, amounted to less than 1% of total loans. Concurrently, AmeriServ is experiencing strong loan demand as the conservative balance sheet of the Company is attracting qualified borrowers. Banking is a dynamic business with many moving parts. However, our loan demand is strong, core deposits are stable, the net interest margin has improved by 43 basis points since December 31, 2007, and operating expenses remain essentially flat and are actually $151,000 below the level of the second quarter of 2008. Still, we continue to be alert for any significant impact on AmeriServ because of the economic slow down.

It is our opinion that AmeriServ is stronger at this time than at any time since the spin off of Three Rivers Bank in 2000. But we also understand that no bank is an island. The news reports of the last few months tell the story of the spreading turmoil in financial markets. Lehman Brothers, who guided our successful capital offerings in 2004 and 2005, has declared bankruptcy. We were pleased that the Congress increased the limits of our FDIC deposit insurance, but we were dismayed that it only occurred as part of the response to the financial turmoil.

We continue to emphasize that AmeriServ has no sub prime mortgages on our balance sheet, AmeriServ has never sold a sub prime mortgage and AmeriServ holds no securities for which the collateral is sub prime mortgages. Further, AmeriServ's borrowings amount to only approximately 10% of total assets, are entirely on a short- term basis, and are only from the Federal Home Loan Bank of Pittsburgh. We are managing a conservative balance sheet reflecting the lessons we learned in the early part of this decade.

Our strategic direction is to continue to strengthen our community banking activities at AmeriServ Financial Bank, and to continue to pursue the many opportunities in the Trust Company. This strategic course of action allows us to press ahead on the path that we laid out at the beginning of the Turnaround. That path has successfully lifted us from the large losses of 2004 and 2005, to our current position where we are now reporting our best performance since the Turnaround began in the very midst of the troubles of the banking industry.

We do hope that our government and regulatory leaders can successfully contain this economic decline. But, meanwhile, we will maintain the strict vigilance appropriate for these troubled times. It is our plan that when the troubles pass
- as they will - AmeriServ will be well positioned to participate in the recovery.

THREE MONTHS ENDED SEPTEMBER 30, 2008 VS. THREE MONTHS ENDED SEPTEMBER 30, 2007


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



                                         Three months ended  Three months ended
                                         September 30, 2008  September 30, 2007

  Net income                                     $    1,149            $    874
  Diluted earnings per share                           0.05                0.04
  Return on average assets (annualized)               0.52%               0.39%
  Return on average equity (annualized)               4.93%               4.00%

The Company reported net income of $1.1 million or $0.05 per diluted share for the third quarter of 2008. This represents an increase of $275,000 or 31% over the third quarter 2007 net income of $874,000 or $0.04 per diluted share. Our conservative balance sheet positioning allowed AmeriServ Financial to report improved financial performance during a historic period of turmoil and crisis within the financial markets. The Company has no direct exposure to subprime mortgages, Fannie Mae or Freddie Mac preferred stock, or credit exposure to any of the large financial firms that have recently failed or been taken over. The growth in earnings was driven by increased net interest income and stable non-interest expenses which more than offset an increased provision for loan losses and lower non-interest revenue.

.....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; 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 third quarter of 2008 to the third quarter of 2007 (in thousands, except percentages):

Three months ended Three months ended Change % Change September 30, 2008 September 30, 2007

Interest income               $ 11,732           $ 12,454 $  (722)    (5.8)%
Interest expense                 4,501              6,432  (1,931)    (30.0)
Net interest income           $  7,231           $  6,022  $ 1,209      20.1

Net interest margin              3.59%              3.00%     0.59       N/M

N/M - not meaningful

The Company's net interest income in the third quarter of 2008 increased by $1.2 million or 20.1% from the prior year's third quarter and the net interest margin rose by 59 basis points over the same comparative period. The Company's balance sheet positioning allowed it to benefit from the significant Federal Reserve reductions in short-term interest rates and the return to a more traditional positively sloped yield curve. As a result of these changes, the Company's interest expense on deposits and borrowings declined at a faster rate than the interest income on loans and investment securities. Additionally, an improved earning asset mix with fewer investment securities and more loans outstanding also contributed to the increased net interest income and margin in 2008. Total loans averaged $635 million in the third quarter of 2008, an increase of $22 million or 3.7% over the third quarter of 2007. Overall, net interest income has now increased for seven consecutive quarters and the Company believes its balance sheet is well positioned for further reductions in short-term interest rates recently announced by the Federal Reserve.

.....COMPONENT CHANGES IN NET INTEREST INCOME..…Regarding the separate components of net interest income, the Company's total interest income for the third quarter of 2008 decreased by $722,000 when compared to the same 2007 quarter. This decrease was due to a 38 basis point decrease in the earning asset yield to 5.84%. Within the earning asset base, the yield on the total loan portfolio decreased by 54 basis points to 6.25% and reflects the lower interest rate environment in 2008 as the Federal Reserve has reduced the federal funds rate by over 300 basis points since last year's third quarter. The total investment securities yield, however, has increased by 14 basis points to 4.28%.
The Company took advantage of the positively sloped yield curve in the second quarter of 2008 to position the investment portfolio for better future earnings by selling some of the lower yielding securities in the portfolio at a loss and replacing them with higher yielding securities with a modestly longer duration.
The investment portfolio yield reflected the full benefit of this strategy in the third quarter of 2008.

The $3.9 million increase in the volume of average earning assets was due to a $22.4 million or 3.7% increase in average loans partially offset by a $16.0 million or 9.1% decrease in average investment securities. This loan growth was driven by increased commercial real estate loans as a result of successful new business development efforts particularly in the suburban Pittsburgh market. The Company has found increased commercial lending opportunities in the Pittsburgh market in 2008 due to the retrenchment of several larger competitors as a result of the turmoil in the financial markets. The decline in investment securities was caused by the call of certain agency securities and ongoing cash flow from mortgage-backed securities. The Company has elected to utilize this cash from lower yielding investment securities to fund higher yielding loans in an effort to increase the Company's earning asset yield.

The Company's total interest expense for the third quarter of 2008 decreased by $1.9 million or 30.0% when compared to the same 2007 quarter. This decrease in interest expense was due to a lower cost of funds as the cost of both deposits and borrowings dropped. The total cost of funds for the third quarter of 2008 declined by 109 basis points to 2.67% and was driven down by lower short-term interest rates and a more favorable funding mix in the third quarter of 2008.
Specifically, total average interest bearing deposits decreased by $67.0 million or 10.2% due almost entirely to a decline in Trust Company specialty deposits related to the Erect and Build Funds as wholesale borrowings provided the Company with a lower cost funding source than these deposits in the third quarter of 2008. Additionally, the Company's funding mix also benefited from a $5.1 million increase in non-interest bearing demand deposits.

The table that follows provides an analysis of net interest income on a tax-equivalent basis for the three month periods ended September 30, 2008 and September 30, 2007 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) AmeriServ Financial'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) AmeriServ Financial's net interest margin (net interest income as a percentage of average total interest earning assets). For purposes of these tables, loan balances do not include non-accrual loans, but interest income on loans includes loan fees or amortization of such fees which have been deferred, as well as, interest recorded on non-accrual loans as cash is received. Additionally, a tax rate of 34% is used to compute tax-equivalent yields.

Three months ended September 30 (In thousands, except percentages)

                                           2008                           2007
                                       Interest                       Interest
                              Average   Income/ Yield/       Average   Income/ Yield/
                              Balance   Expense Rate         Balance   Expense   Rate
Interest earning assets:
Loans and loans held for     $634,807 $  10,033   6.25   %  $612,424  $ 10,614   6.79 %
sale,
 net of unearned income
Deposits with banks               399         2   1.95           616         6   3.83
Federal funds sold                 32         -      -         2,249        30   5.18
Investment securities -       143,081     1,477   4.13       156,299     1,569   4.02
AFS
Investment securities -        17,378       240   5.52        20,175       258   5.12
HTM
Total investment              160,459     1,717   4.28       176,474     1,827   4.14
securities
Total interest earning        795,697    11,752   5.84       791,763    12,477   6.22
  assets/interest income
Non-interest earning
assets:
Cash and due from banks        16,574                         18,673
Premises and equipment          9,593                          8,607
Other assets                   71,647                         71,506
Allowance for loan losses     (8,088)                        (7,808)
TOTAL ASSETS                 $885,423                       $882,741

Interest bearing
liabilities:
Interest bearing
deposits:
  Interest bearing demand   $  65,704    $  151   0.91   % $  55,151   $   177   1.27 %
  Savings                      71,520       136   0.75        71,503       138   0.77
  Money markets               108,181       572   2.10       173,844     1,731   3.95
  Other time                  341,455     2,915   3.39       353,331     3,948   4.43
Total interest bearing        586,860     3,774   2.56       653,829     5,994   3.64
deposits
Short-term borrowings:
Federal funds purchased,       60,635       345   2.23         6,760        87   5.00

  securities sold under

  agreements to
repurchase and   other
short-term borrowings
Advances from Federal          10,258       102   3.94         5,499        71   5.16
  Home Loan Bank
Guaranteed junior              13,085       280   8.57        13,085       280   8.57
subordinated   deferrable
interest debentures
Total interest bearing        670,838     4,501   2.67       679,173     6,432   3.76
  liabilities/interest
expense
Non-interest bearing
liabilities:
Demand deposits               111,136                        106,055
Other liabilities              10,763                         10,768
Stockholders' equity           92,686                         86,745
TOTAL LIABILITIES AND        $885,423                       $882,741
  STOCKHOLDERS' EQUITY
Interest rate spread                              3.17                           2.46
Net interest income/                      7,251   3.59   %               6,045   3.00 %
  Net interest margin
Tax-equivalent adjustment                  (20)                           (23)
Net Interest Income                    $  7,231                       $  6,022

…..PROVISION FOR LOAN LOSSES..... The Company recorded a $775,000 provision for loan losses in the third quarter of 2008 compared to $150,000 provision in the third quarter of 2007, an increase of $625,000. When determining the provision for loan losses, the Company considers a number of factors some of which include periodic credit reviews, delinquency and charge-off trends, concentrations of credit, loan volume trends and broader local and national economic trends. The higher loan loss provision in 2008 was caused by the Company's decision to strengthen its allowance for loan losses due to the downgrade of the rating classification of several specific performing commercial loans and uncertainties in the local and national economies.

Net charge-offs in the third quarter of 2008 amounted to $61,000 or 0.04% of total loans compared to net charge-offs of $942,000 or 0.61% of total loans in the third quarter of 2007. Charge-offs in the 2007 third quarter were significantly impacted by the complete charge-off of an $875,000 commercial loan that resulted from fraud committed by the borrower. Non-performing assets increased since the second quarter of 2008 but are still lower than the year-end 2007 level. Non-performing assets totaled $4.4 million or 0.66% of total loans at September 30, 2008 compared to $5.3 million or 0.83% of total loans at December 31, 2007. Overall, the allowance for loan losses provided 198% coverage of non-performing assets and was 1.31% of total loans at September 30, 2008 compared to 137% of non-performing assets and 1.14% of total loans at December 31, 2007.

.....NON-INTEREST INCOME.....Non-interest income for the third quarter of 2008 totaled $3.8 million; a decrease of $255,000 or 6.3% from the third quarter 2007 performance. Factors contributing to this decreased level of non-interest income in 2008 included:

* a $219,000 decrease in revenue from bank owned life insurance as the Company benefitted from the payment of a death claim in the third quarter of 2007.

* a $100,000 or 14.9% increase in deposit service charges due to increased overdraft fees and greater service charge revenue that resulted from a realignment of the bank's checking accounts to include more fee based products.

* a $90,000 decrease in investment advisory fees as a result of a drop in assets under management due to the declines experienced in the equity markets in 2008.

.....NON-INTEREST EXPENSE.....Non-interest expense for the third quarter of 2008 totaled $8.8 million and was essentially flat with the third quarter 2007.
Increased levels of professional fees and other expenses were essentially offset by reduced salaries /employee benefit costs and lower equipment and occupancy costs due to the Company's successful efforts in reconfiguring its retail branch network to make it more efficient.

NINE MONTHS ENDED SEPTEMBER 30, 2008 VS. NINE MONTHS ENDED SEPTEMBER 30, 2007


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



                                         Nine months ended  Nine months ended
                                        September 30, 2008 September 30, 2007

  Net income                                    $    3,894         $    2,110
  Diluted earnings per share                          0.18               0.10
  Return on average assets (annualized)              0.59%              0.32%
  Return on average equity (annualized)              5.66%              3.30%

The Company reported net income of $3.9 million or $0.18 per diluted share for the first nine months of 2008. This represents an increase of $1.8 million or 85% over the first nine months 2007 net income of $2.1 million or $0.10 per diluted share. The Company's return on assets improved to 0.59% in 2008 compared to 0.32% in 2007. The growth in earnings was driven by increased net interest income and higher non-interest revenue which more than offset an increased provision for loan losses and higher non-interest expenses.

.....NET INTEREST INCOME AND MARGIN..... The following table compares the Company's net interest income performance for the first nine months of 2008 to the first nine months of 2007 (in thousands, except percentages):

Nine months ended Nine months ended Change % Change September 30, 2008 September 30, 2007

Interest income               $ 35,464           $ 36,937 $   (1,473)    (4.0)%
Interest expense                14,532             18,947     (4,415)    (23.3)
Net interest income           $ 20,932           $ 17,990    $  2,942      16.4

Net interest margin              3.49%              3.00%        0.49       N/M

N/M - not meaningful

The Company's net interest income in the first nine months of 2008 increased by $2.9 million or 16.4% from the prior year's first nine months and the net interest margin was up by 49 basis points over the same comparative period. The Company's balance sheet positioning allowed it to benefit from the significant Federal Reserve reductions in short-term interest rates and the return to a more traditional positively sloped yield curve. This factor, combined with the benefits of solid loan growth experienced over the past 12 months, caused the increased net interest income and margin in the first nine months of 2008.
Total loans averaged $629 million in the first nine months of 2008, an increase of $27 million or 4.5% over the first nine months of 2007. The favorable decline in interest expense was caused by the downward repricing of both deposits and Federal Home Loan Bank borrowings due to the market decline in short-term interest rates in 2008.

.....COMPONENT CHANGES IN NET INTEREST INCOME..…Regarding the separate components of net interest income, the Company's total interest income for the first nine months of 2008 decreased by $1.5 million when compared to the same 2007 period. This decrease was due to a 25 basis point decrease in the earning asset yield to 5.94% and a modest $1.8 million decrease in earning assets.
Within the earning asset base, the yield on the total loan portfolio decreased by 44 basis points to 6.36% and reflects the lower interest rate environment in 2008. The yield on the total investment securities portfolio increased by eight basis points to 4.16% as the Company took advantage of the positively sloped yield curve to position the investment portfolio for better future earnings by selling some of the lower yielding securities in the portfolio and replacing them with higher yielding securities with a modestly longer duration.

The $1.8 million decrease in the volume of average earning assets was due to a $26.1 million or 13.9% decrease in average investment securities which was basically offset by a $27.3 million or 4.5% increase in average loans. This favorable asset mix shift benefitted the net interest margin. The loan growth was driven by increased commercial real estate loans as a result of successful new business development efforts in the suburban Pittsburgh market. The Company has found increased commercial lending opportunities in the Pittsburgh market in 2008 due to the retrenchment of several larger competitors as a result of the turmoil in the financial markets.

The Company's total interest expense for the first nine months of 2008 decreased by $4.4 million or 23.3% when compared to the same 2007 period. This decrease in interest expense was due to a lower cost of funds. The total cost of funds for the first nine months of 2008 declined by 83 basis points to 2.89% and was driven down by lower short-term interest rates and a more favorable funding mix in the first nine months of 2008. Specifically, total average interest bearing deposits decreased by $68.3 million or 10.4% due entirely to a decline in Trust Company specialty deposits as wholesale borrowings provided the Company with a lower cost funding source than these deposits in the first nine months of 2008.
Additionally, the Company's funding mix also benefited from a $6.0 million increase in non-interest bearing demand deposits and an increase in retail money market deposits as customers have opted for short-term liquidity during this period of volatility and decline in the equity markets.

The table that follows provides an analysis of net interest income on a tax-equivalent basis for the nine month periods ended September 30, 2008 and September 30, 2007. For a detailed discussion of the components and assumptions included in the table, see the paragraph before the quarterly table on page 20.

Nine months ended September 30 (In thousands, except percentages)

                                           2008                           2007
                                       Interest                       Interest
                              Average   Income/ Yield/       Average   Income/ Yield/
                              Balance   Expense Rate         Balance   Expense   Rate
Interest earning assets:
Loans and loans held for   $  628,928 $  30,399   6.36   % $ 601,592 $  31,023   6.80 %
sale,
 net of unearned income
Deposits with banks               403        10   3.31           525        18   4.58
Federal funds sold                152         4   3.39         3,009       120   5.21
Investment securities -       143,747     4,429   4.04       166,808     5,050   3.96
AFS
Investment securities -        17,517       684   5.21        20,590       794   5.06
HTM
Total investment              161,264     5,113   4.16       187,398     5,844   4.08
securities
Total interest earning        790,747    35,526   5.94       792,524    37,005   6.19
  assets/interest income
Non-interest earning
assets:
Cash and due from banks        17,188                         17,734
Premises and equipment          9,193                          8,722
Other assets                   72,402                         69,550
Allowance for loan losses     (7,582)                        (7,947)
TOTAL ASSETS                $ 881,948                      $ 880,583

Interest bearing
liabilities:
Interest bearing
deposits:
  Interest bearing demand   $  65,169    $  527   1.08   % $  56,559   $   517   1.22 %
  Savings                      70,388       401   0.76        73,112       417   0.76
  Money markets                92,907     1,817   2.61       182,215     5,381   3.95
  Other time                  359,255     9,388   3.48       344,153    11,309   4.39
Total interest bearing        587,719    12,133   2.76       656,039    17,624   3.59
deposits
Short-term borrowings:
Federal funds purchased,       57,818     1,186   2.69         8,441       339   5.29

  securities sold under

  agreements to
repurchase and   other
short-term borrowings
Advances from Federal          11,266       373   4.42         3,607       144   5.26
  Home Loan Bank
Guaranteed junior              13,085       840   8.57        13,085       840   8.57
subordinated   deferrable
interest debentures
Total interest bearing        669,888    14,532   2.89       681,172    18,947   3.72
  liabilities/interest
expense
Non-interest bearing
liabilities:
Demand deposits               110,366                        104,336
Other liabilities               9,836                          9,477
Stockholders' equity           91,858                         85,598
TOTAL LIABILITIES AND       $ 881,948                      $ 880,583
  STOCKHOLDERS' EQUITY
Interest rate spread                              3.05                           2.47
Net interest income/                     20,994   3.49   %              18,058   3.00 %
  Net interest margin
Tax-equivalent adjustment                  (62)                           (68)
Net Interest Income                    $ 20,932                       $ 17,990

…..PROVISION FOR LOAN LOSSES..... The Company recorded a $2.3 million loan loss provision for the nine month period ended September 30, 2008 compared to $150,000 loan loss provision for the same period in 2007. The higher loan provision in 2008 was caused by the Company's decision to strengthen its allowance for loan losses due to the downgrade of the rating classification of several specific performing commercial loans and uncertainties in the local and national economies. Overall net charge-offs are down modestly in 2008 when compared to 2007. Specifically, for the nine month period ended September 30, 2008, net charge-offs have amounted to $875,000 or 0.18% of total loans compared to net charge-offs of $1.1 million or 0.25% of total loans for the same nine month period in 2007. Overall, the allowance for loan losses provided 198% coverage of non-performing assets and was 1.31% of total loans at September 30, 2008 compared to 137% of non-performing assets and 1.14% of total loans at December 31, 2007. Note also that the Company has no direct exposure to sub-prime mortgage loans in either the loan or investment portfolios.

.....NON-INTEREST INCOME.....Non-interest income for the first nine months of 2008 totaled $12.9 million; an increase of $2.1 million or 19.4% from the first nine months 2007 performance. Factors contributing to this increased level of non-interest income in 2008 included:

* a $1.4 million increase in revenue from bank owned life insurance due to increased payments of death claims in 2008.

* a $148,000 or 2.9% increase in Trust fees due to continued successful new business development efforts in 2008 which has helped offset overall declines resulting from the equity market volatility.

* a $128,000 increase in gains on loans held for sale due to increased residential mortgage loan sales into the secondary market in 2008. There were $30.4 million of residential mortgage loans sold into the secondary market in . . .