AmeriServ Financial has struck a deal with one of its largest shareholders, SB Value Partners, to help grow and streamline the Johnstown, Pa., company’s wealth management division.
As part of a four-year agreement, SB Value Partners — which owns about 8.2% of AmeriServ’s stock — will provide advice on how the banking company can improve operations and increase assets under management in its wealth business. In return, SB Value could earn up to 350,000 AmeriServ shares — but only if certain performance targets are met.
Those targets include either the company’s stock price hitting $5 or more at any point before April 15, 2029, or a change in control of AmeriServ, such as a merger or acquisition.
If neither event happens by that date, SB Value won’t receive the extra shares.
AmeriServ will also reimburse SB Value for reasonable expenses tied to the advisory work. The agreement can be terminated early if either party doesn’t hold up their end of the deal.
In a separate move, AmeriServ and SB Value amended a prior agreement to allow the investor to increase its ownership stake — raising the cap from 9.9% to 14.9%. They also extended the timeline of that agreement to align with the new consulting deal.