1st Summit Bancorp of Johnstown Reports Fourth Quarter 2025 Results

Consistent earnings, strong organic loan and deposit growth, disciplined credit performance, and solid capital position support continued execution

JOHNSTOWN, Pa.--(BUSINESS WIRE)--1ST SUMMIT BANCORP OF JOHNSTOWN today announced financial results for the quarter ended December 31, 2025.

Net income for the fourth quarter totaled $1.7 million, consistent with the prior quarter, as the Company took steps to intentionally control growth while further strengthening its core earnings profile. Results for the quarter reflect stability across key performance metrics, including net income, following the balance sheet repositioning that occurred earlier in 2025.

Organic loan growth remained a key highlight for the quarter, with loans increasing 14.1% on an annualized basis compared to 7.3% in the third quarter of 2025. Growth was driven by continued demand across core commercial relationships. While we anticipate that loan demand may increase due to lower benchmark interest rates, we do not intend to change underwriting guidelines or originate loans outside of our risk appetite.

With respect to deposits, despite a declining rate environment and heightened competitive pricing pressure, total deposits grew 2.3% annualized compared to 4.3% annualized growth in the third quarter of 2025, reflecting continued success in retaining and expanding the deposit base through disciplined pricing, relationship banking, and customer engagement. Growing core deposits will be a significant focus in 2026 and beyond as we look to increase market share in our existing footprint by strengthening the tools and products available to our consumer and business customers.

Net interest margin expanded an additional 4 basis points during the quarter to 2.38%, primarily due to disciplined funding strategies and continued improvement in balance sheet mix. The loan-to-deposit ratio increased to 73.2%, reflecting our efforts to continue to efficiently deploy funds while maintaining sufficient liquidity. Return on average assets improved to 0.45%, and return on average equity increased to 6.33% for the quarter.

Credit Quality Remains Strong

Credit quality remained strong during the fourth quarter. The Company did not experience a meaningful increase in problem or non-accrual loans, and there were no significant charge-offs during the period. The quality of our loan portfolio continues to reflect conservative underwriting standards and strong collateral positions across loan categories.

Management continues to take a cautious and forward-looking approach to credit. Underwriting decisions remain focused not only on current loan demand, but also on the underlying financial strength of borrowers, collateral protection, and broader economic conditions within the Bank’s markets. As economic conditions evolve, the Company will remain diligent in monitoring credit trends and adjusting underwriting practices, as appropriate, in an effort to preserve asset quality.

Liquidity and Capital Position

The Company ended the quarter with a strong liquidity and capital position, providing meaningful flexibility as it enters 2026. Core funding remains stable, with diversified deposit sources and manageable loan-to-deposit levels supporting ongoing balance sheet activity. Capital ratios remain comfortably above regulatory requirements, positioning the Company to pursue measured, high-quality growth while continuing to absorb normal market and economic variability.

Management expects to selectively deploy excess liquidity through organic loan growth and the reinvestment of securities portfolio paydowns and maturities, while maintaining balance sheet resilience and disciplined risk management.

“Our fourth quarter results reflect the changes in business strategy and balance sheet restructuring that we implemented earlier in 2025,” said Allison Johnson, President and Chief Executive Officer. “After two quarters of rapid improvement in profitability and balance sheet positioning, we are pleased to report stabilized earnings for the second half of the year.”

Johnson continued, “Our first objective was to establish a reliable core earnings run rate supported by quality assets and disciplined funding. With that goal achieved, we now turn our attention to the next phase, process improvement, cost control, and continued optimization of asset mix. As securities cash flows turn over, we intend to redeploy paydowns and maturities into high-quality loan opportunities as market conditions allow.”

“Recent rate cuts provide a constructive backdrop,” Johnson added. “We expect any declining funding costs to act as a tailwind in the coming quarters, but we will remain selective. Growth for its own sake is not the objective. Margin preservation, efficiency gains, and credit quality will continue to guide our decisions.”

Johnson concluded, “Consistent results should not be mistaken for a lack of ambition or momentum, these results reflect discipline. As we enter the year ahead, we intend to continue to focus on enhanced liquidity, capital strength and creating value for our shareholders.”

About 1st Summit Bancorp of Johnstown, Inc.

1st Summit, through its wholly owned subsidiary, 1st Summit Bank (the “Bank”), is a community oriented financial institution that primarily focuses on relationship banking for both consumers and businesses. From 17 full-service community offices and one loan production office, the Bank provides a full-array of personal and business banking solutions, investment management and trust services. The Bank serves communities throughout the counties of Cambria, Westmoreland, Blair, Somerset, and Indiana in southwestern PA. Please visit https://www.1stsummit.bank for more information.

Cautionary Statement Regarding Forward Looking Statements

Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended. Any statements about our expectations, beliefs, plans, predictions, protections, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements are typically, but not exclusively, identified by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will,” “should,” “seeks,” “likely,” “intends” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Factors that could cause our actual results to differ materially from those described in the forward-looking statements include, among others:(i) changes in general business and our ability to successfully implement our strategic plan, (ii) changes in interest rates or in the quality or composition of our loan and investment portfolios; (iii) adequacy of loan loss reserves; (iv) increased competition; (v) loss of certain key officers; (vi) continued relationships with major customers; (vii) deposit attrition; (viii) rapidly changing technology; (ix) unanticipated regulatory or judicial proceedings and liabilities and other costs; (x) changes in the cost of funds, demand for loan products, or demand for financial services; (xi) other economic, competitive, governmental, or technological factors affecting our operations, markets, products, services, and prices; and (xii) our success at managing the foregoing items. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our most recent Annual Report on our website at https://www.1stsummit.bank/home/about-us/meet-1st-summit/investor-information/.

While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those contemplated, expressed in or implied by the particular forward-looking statement due to additional risks and uncertainties of which the Company is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, we can give no assurance that the results contemplated in the forward-looking statements will be realized and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Consolidated Statements of Income
(Unaudited)
	For the Three Months Ended
	December 31, 2025		September 30, 2025		June 30, 2025			March 31, 2025			December 31, 2024
	(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans	$	11,725	$	11,360	$	10,643		$	10,104		$	10,117
Interest and dividends on investment securities		4,340		4,542		4,026			4,186			3,594
Other interest income		96		189		161			86			232
Total interest income		16,161		16,091		14,830			14,376			13,943
Interest expense:
Interest on deposits		5,982		6,251		5,973			6,402			7,139
Interest on FHLB advances and other borrowings		1,937		1,827		1,570			1,346			828
Total interest expense		7,919		8,078		7,543			7,748			7,967
Net interest income		8,242		8,013		7,287			6,628			5,976
Provision for loan losses		251		250		125			125			86
Net interest income after provision for loan losses		7,991		7,763		7,162			6,503			5,890
Noninterest income:
Service charges and fees		702		628		657			642			621
Wealth management income		649		604		583			577			566
Earnings on bank-owned life insurance		196		194		192			175			253
Interchange income		561		524		712			482			489
Gain (loss) on sales of investment securities		-		-		142			-			(24	)
Change in fair value of equity securities		4		22		4			6			(19	)
Gain on sale leaseback		-		-		-			-			3,269
Other noninterest income		52		26		30			31			584
Total noninterest income		2,164		1,998		2,320			1,913			5,739
Noninterest expense:
Salaries and employee benefits		4,225		4,333		4,357			4,333			4,423
Occupancy and equipment expenses		1,066		999		1,071			1,040			966
Professional services		374		344		334			447			324
Data processing and network		997		867		1,078			739			861
Regulatory assessments and insurance		171		171		165			165			171
Shares tax expense		219		219		219			219			229
Other operating expenses		1,165		1,030		1,090			826			1,003
Total noninterest expense		8,217		7,963		8,314			7,769			7,977
Income before income tax expense		1,938		1,798		1,168			647			3,652
Income tax expense		247		95		(1	)		(128	)		464
Net income	$	1,691	$	1,703	$	1,169		$	775		$	3,188
Earnings per Common Share
Basic	$	0.80	$	0.80	$	0.55		$	0.36		$	1.48
Diluted		0.80		0.80		0.55			0.36			1.48

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Consolidated Balance Sheets
(Unaudited)
	As of
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
	(Dollars in thousands)
Assets:
Cash and due from banks	$	9,196		$	10,191		$	13,637		$	16,526		$	10,666
Interest-bearing deposits in other banks		5,420			6,299			10,736			8,006			7,310
Total cash and cash equivalents		14,616			16,490			24,373			24,532			17,976
Investment securities:
Equity securities		690			687			665			661			655
Available for sale securities, at fair value		348,406			343,411			327,167			332,319			329,949
Held to maturity securities, at amortized cost		196,188			200,559			207,257			212,111			216,894
Total investment securities		545,284			544,657			535,089			545,091			547,498
Loans:
Loans held for investment		881,272			851,114			813,960			790,642			782,768
Less: allowance for loan and lease losses		(6,793	)		(6,536	)		(6,250	)		(6,146	)		(7,160	)
Loans, net		874,479			844,578			807,710			784,496			775,608
Operating lease right-of-use assets		8,537			8,553			8,767			8,968			9,202
Premises and equipment, net		17,911			11,411			11,569			11,940			11,919
Accrued interest receivable		5,322			5,305			5,161			5,058			5,126
Goodwill		339			339			339			339			339
Deferred tax asset, net		7,391			7,988			9,742			10,030			10,888
Bank-owned life insurance		27,750			27,555			27,360			27,168			24,678
Federal Home Loan Bank and other bank stock, at cost		8,162			6,915			6,220			6,079			4,665
Other assets		7,409			7,385			7,811			7,749			7,264
Total assets	$	1,517,200		$	1,481,176		$	1,444,141		$	1,431,450		$	1,415,163
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing	$	120,899		$	118,126		$	120,075		$	122,764		$	114,898
Interest-bearing		652,290			635,855			642,834			643,719			649,837
Total transaction accounts		773,189			753,981			762,909			766,483			764,735
Time deposits		430,462			442,849			420,990			420,496			439,378
Total deposits		1,203,651			1,196,830			1,183,899			1,186,979			1,204,113
Accrued interest payable		4,378			4,328			4,059			4,188			4,528
Short-term borrowings		17,056			6,326			-			30,000			30,000
Long-term borrowings		166,186			151,186			141,186			96,186			66,186
Operating lease liability		8,861			8,832			9,028			9,211			9,428
Other liabilities		8,383			7,934			7,649			7,493			6,947
Total liabilities		1,408,515			1,375,436			1,345,821			1,334,057			1,321,202
Stockholders' Equity:
Common stock		11,008			11,008			11,015			11,015			11,015
Capital surplus		5,781			5,781			5,825			5,825			5,825
Retained earnings		114,911			114,130			113,338			113,080			113,223
Accumulated other comprehensive income (loss)		(19,174	)		(21,338	)		(27,970	)		(29,250	)		(32,825	)
Treasury stock		(3,841	)		(3,841	)		(3,888	)		(3,277	)		(3,277	)
Total stockholders' equity		108,685			105,740			98,320			97,393			93,961
Total liabilities and stockholders' equity	$	1,517,200		$	1,481,176		$	1,444,141		$	1,431,450		$	1,415,163

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Loan Composition
(Unaudited)
	As of
	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
	(Dollars in thousands)
Loans:
Commercial and industrial loans	$	129,389	$	140,272	$	137,474	$	138,038	$	138,555
Real estate:
1-4 single family residential loans		430,427		427,072		400,722		401,588		401,246
Construction, land and development loans		31,543		27,805		24,013		17,043		16,878
Commercial real estate loans (including multifamily)		274,906		240,283		235,884		217,163		207,393
Consumer loans and leases		15,007		15,682		15,867		16,810		18,696
Total loans held in portfolio	$	881,272	$	851,114	$	813,960	$	790,642	$	782,768

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Deposit Composition
(Unaudited)
			As of
	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
	(Dollars in thousands)
Deposits:
Noninterest-bearing demand deposits	$	120,899	$	118,126	$	120,075	$	122,764	$	114,898
Interest-bearing demand deposits		274,116		259,182		260,554		260,874		303,631
Savings and money market accounts		378,174		376,673		382,280		382,845		346,206
Time deposits		430,462		442,849		420,990		420,496		439,378
Total deposits	$	1,203,651	$	1,196,830	$	1,183,899	$	1,186,979	$	1,204,113

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Average Balances and Yields
(Unaudited)
	Three Months Ended
	December 31, 2025						December 31, 2024
	Average Balance (1)		Interest/ Expense		Annualized Yield/Rate		Average Balance (1)		Interest/ Expense		Annualized Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks	$	8,972	$	96	4.25	%	$	15,721	$	232	5.85	%
Loans(2)		857,187		11,725	5.43	%		772,663		10,117	5.19	%
Investment securities and other		544,426		4,340	3.16	%		511,726		3,594	2.79	%
Total interest-earning assets		1,410,585		16,161	4.55	%		1,300,110		13,943	4.25	%
Noninterest-earning assets		81,167						70,787
Total assets	$	1,491,752					$	1,370,897
Interest-bearing liabilities:
Interest-bearing demand deposits	$	254,597	$	367	0.57	%	$	284,010	$	615	0.86	%
Savings and money market accounts		370,591		1,980	2.12	%		354,686		2,172	2.43	%
Time deposits		438,477		3,635	3.29	%		443,999		4,352	3.89	%
FHLB advances and other borrowings		173,750		1,937	4.42	%		59,117		828	5.56	%
Total interest-bearing liabilities		1,237,415		7,919	2.54	%		1,141,812		7,967	2.77	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		126,500						120,768
Other liabilities		21,779						11,141
Stockholders' equity		106,058						97,176
Total liabilities and stockholders' equity	$	1,491,752					$	1,370,897
Net interest rate spread					2.01	%					1.49	%
Net interest income and margin			$	8,242	2.32	%			$	5,976	1.82	%
Net interest income and margin (tax equivalent)(3)			$	8,449	2.38	%			$	6,264	1.91	%
(1) Average balances presented are derived from daily average balances.
(2) Includes loans on nonaccrual status.
(3) In order to make pretax income and resultant yields on tax-exempt loans comparable to those on taxable loans, a tax-equivalent adjustment has been computed using a federal tax rate of 21% for the three months ended December 31, 2025 and December 31, 2024, respectively.

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Average Balances and Yields
(Unaudited)
	Three Months Ended
	December 31, 2025						September 30, 2025
	Average Balance (1)		Interest/ Expense		Annualized Yield/Rate		Average Balance (1)		Interest/ Expense		Annualized Yield/Rate
	(Dollars in thousands)						(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks		8,972	$	96	4.25	%	$	16,847	$	189	4.45	%
Loans(2)		857,187		11,725	5.43	%		837,288		11,360	5.38	%
Investment securities and other		544,426		4,340	3.16	%		540,412		4,542	3.33	%
Total interest-earning assets		1,410,585		16,161	4.55	%		1,394,547		16,091	4.58	%
Noninterest-earning assets		81,167						83,711
Total assets	$	1,491,752					$	1,478,258
Interest-bearing liabilities:
Interest-bearing demand deposits	$	254,597	$	367	0.57	%	$	254,822	$	376	0.59	%
Savings and money market accounts		370,591		1,980	2.12	%		373,930		2,057	2.18	%
Time deposits		438,477		3,635	3.29	%		445,011		3,818	3.40	%
FHLB advances and other borrowings		173,750		1,937	4.42	%		154,632		1,827	4.69	%
Total interest-bearing liabilities		1,237,415		7,919	2.54	%		1,228,395		8,078	2.61	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		126,500						122,871
Other liabilities		21,779						27,685
Stockholders' equity		106,058						99,307
Total liabilities and stockholders' equity	$	1,491,752					$	1,478,258
Net interest rate spread					2.01	%					1.97	%
Net interest income and margin			$	8,242	2.32	%			$	8,013	2.28	%
Net interest income and margin (tax equivalent)(3)			$	8,449	2.38	%			$	8,215	2.34	%
(1) Average balances presented are derived from daily average balances.
(2) Includes loans on nonaccrual status.
(3) In order to make pretax income and resultant yields on tax-exempt loans comparable to those on taxable loans, a tax-equivalent adjustment has been computed using a federal tax rate of 21% for the three months ended December 31, 2025 and September 30, 2025, respectively.

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Net Interest Margin on a Fully Taxable Equivalent Basis
(Unaudited)
	As of or for the Three Months Ended
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
	(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income	$	8,242		$	8,013		$	7,287		$	6,628		$	5,976
Average interest-earning assets		1,410,585			1,394,547			1,342,466			1,333,932			1,300,110
Net interest margin		2.32	%		2.28	%		2.18	%		2.02	%		1.82	%
Net interest margin - Non-GAAP basis:
Net interest income	$	8,242		$	8,013		$	7,287		$	6,628		$	5,976
Plus:
Impact of fully taxable equivalent adjustment		207			202			286			246			288
Net interest income on a fully taxable equivalent basis	$	8,449		$	8,215		$	7,573		$	6,874		$	6,264
Average interest-earning assets		1,410,585			1,394,547			1,342,466			1,333,932			1,300,110
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis		2.38	%		2.34	%		2.26	%		2.09	%		1.91	%

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share
(Unaudited)
	As of
	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
	(Dollars in thousands, except per share data)
Total stockholders' equity	$	108,685	$	105,740	$	98,320	$	97,393	$	93,961
Less:
Goodwill and other intangible assets		339		339		339		339		339
Tangible stockholders' equity	$	108,346	$	105,401	$	97,981	$	97,054	$	93,622
Shares outstanding		2,118,389		2,118,389		2,117,035		2,135,540		2,135,540
Book value per share	$	51.31	$	49.92	$	46.44	$	45.61	$	44.00
Less:
Goodwill and other intangible assets per share	$	0.16	$	0.16	$	0.16	$	0.16	$	0.16
Tangible book value per share	$	51.15	$	49.76	$	46.28	$	45.45	$	43.84

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Tangible Equity to Tangible Assets
(Unaudited)
	As of
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
	(Dollars in thousands)
Total stockholders' equity to total assets - GAAP basis:
Total stockholders' equity (numerator)	$	108,685		$	105,740		$	98,320		$	97,393		$	93,961
Total assets (denominator)		1,517,200			1,481,176			1,444,141			1,431,450			1,415,163
Total stockholders' equity to total assets		7.16	%		7.14	%		6.81	%		6.80	%		6.64	%
Tangible equity to tangible assets - Non-GAAP basis:
Tangible equity:
Total stockholders' equity	$	108,685		$	105,740		$	98,320		$	97,393		$	93,961
Less:
Goodwill and other intangible assets		339			339			339			339			339
Total tangible common equity (numerator)	$	108,346		$	105,401		$	97,981		$	97,054		$	93,622
Tangible assets:
Total assets		1,517,200			1,481,176			1,444,141			1,431,450			1,415,163
Less:
Goodwill and other intangible assets		339			339			339			339			339
Total tangible assets (denominator)	$	1,516,861		$	1,480,837		$	1,443,802		$	1,431,111		$	1,414,824
Tangible equity to tangible assets		7.14	%		7.12	%		6.79	%		6.78	%		6.62	%