1st Summit Bancorp of Johnstown Announces First Quarter 2026 Results

JOHNSTOWN, Pa.--(BUSINESS WIRE)--1st Summit Bancorp of Johnstown, Inc. (“1st Summit” or the “Company”) reported net income of $2.3 million for the first quarter of 2026, an increase of 34.7% compared to the fourth quarter of 2025.

Results for the quarter included a $446 thousand gain on the sale of approximately $17 million of longer-duration securities. Excluding this item, adjusted net income was $1.9 million, representing a 13.4% increase over the prior quarter.

The first quarter reflects continued strengthening of the Company’s earnings profile, driven by margin expansion, steady loan growth, and disciplined expense management.

Management Commentary

“Our first quarter results demonstrate the effectiveness of our recent business strategies and support our belief that we have deployed a solid operating model built on the right fundamentals,” said Allison Johnson, President and Chief Executive Officer. “During the first quarter, we saw meaningful margin expansion, controlled expense growth, and continued strength in credit quality, all while maintaining a disciplined approach to earning asset growth.”

Johnson continued, “The securities repositioning this quarter was intentional. We took advantage of an opportunity to improve the structure of the balance sheet, realize a gain, and better position the Company for the rate environment ahead. More importantly, even without that gain, earnings increased at a healthy pace.”

“We believe the Company is well positioned to continue expanding earnings in the coming quarters, not through one-time events, but through steady improvement in the core drivers of the business. Loan growth remains measured and focused on quality. Credit performance continues to be stable. Expenses are well managed. And margin is moving in the right direction. When those elements come together, earnings expansion becomes less about timing and more about execution.”

Balance Sheet and Loan Growth

Total loans were $898.5 million at March 31, 2026, representing an increase of 7.9% annualized from the prior quarter. Growth remained centered on high-quality lending opportunities consistent with the Company’s underwriting standards.

Management continues to prioritize balance sheet optimization alongside growth, with a focus on improving asset mix, duration, and overall yield.

Net Interest Income and Margin

Net interest margin expanded to 2.45% for the first quarter of 2026, compared to 2.32% in the prior quarter, an increase of 13 basis points.

The improvement reflects continued execution of funding strategies and asset repricing initiatives. The Company remains focused on further margin expansion through disciplined pricing and liability management.

Credit Quality

Credit quality remained a source of strength during the quarter:

• Net charge-offs totaled $28 thousand
• Nonaccrual loans to total loans were 0.40%
• Provision for credit losses was $200 thousand, primarily driven by new loan production

The Company continues to benefit from strong collateral coverage and conservative underwriting practices. Management remains attentive to evolving economic conditions while maintaining a consistent credit philosophy.

Non-interest Income and Expense

Noninterest income included a $446 thousand gain on the sale of securities, reflecting proactive balance sheet management. Approximately $17 million of longer duration securities were sold when a market opportunity arose to sell the securities at a gain. The proceeds were used to partially fund loan growth for the quarter. Management reviews market rates and spreads daily to identify opportunities to shorten the overall duration of the securities portfolio.

Noninterest expense totaled $8.3 million for the first quarter of 2026, an increase of 0.73% compared to the prior quarter. Management continues to focus on cost containment making necessary investments to support growth.

Profitability

Profitability metrics improved meaningfully during the quarter:

• Return on average assets (ROAA) was 0.61% for the first quarter of 2026, compared to 0.45% in the prior quarter
• Return on average equity (ROAE) was 8.39% for the first quarter of 2026, compared to 6.33% in the prior quarter

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 Home | 1st Summit 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, including the success of our 2025 balance sheet repositioning strategy (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: Investor Information | 1st Summit Bank.

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
	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025			March 31, 2025
	(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans	$	11,761	$	11,725	$	11,360	$	10,643		$	10,104
Interest and dividends on investment securities		4,256		4,340		4,542		4,026			4,186
Other interest income		69		96		189		161			86
Total interest income		16,086		16,161		16,091		14,830			14,376
Interest expense:
Interest on deposits		5,476		5,982		6,251		5,973			6,402
Interest on FHLB advances and other borrowings		1,997		1,937		1,827		1,570			1,346
Total interest expense		7,473		7,919		8,078		7,543			7,748
Net interest income		8,613		8,242		8,013		7,287			6,628
Provision for credit losses		200		251		250		125			125
Net interest income after provision for credit losses		8,413		7,991		7,763		7,162			6,503
Noninterest income:
Service charges and fees		621		702		628		657			642
Wealth management income		602		649		604		583			577
Earnings on bank-owned life insurance		192		196		194		192			175
Interchange income		522		561		524		712			482
Gain (loss) on sales of investment securities		446		-		-		142			-
Change in fair value of equity securities		4		4		22		4			6
Gain on sale leaseback		-		-		-		-			-
Other noninterest income		13		52		26		30			31
Total noninterest income		2,400		2,164		1,998		2,320			1,913
Noninterest expense:
Salaries and employee benefits		4,297		4,225		4,333		4,357			4,333
Occupancy and equipment expenses		1,092		1,066		999		1,071			1,040
Professional services		350		374		344		334			447
Data processing and network		1,072		997		867		1,078			739
Regulatory assessments and insurance		165		171		171		165			165
Shares tax expense		219		219		219		219			219
Other operating expenses		1,082		1,165		1,030		1,090			826
Total noninterest expense		8,277		8,217		7,963		8,314			7,769
Income before income tax expense		2,536		1,938		1,798		1,168			647
Income tax expense		259		247		95		(1	)		(128	)
Net income	$	2,277	$	1,691	$	1,703	$	1,169		$	775
Earnings per Common Share
Basic	$	1.07	$	0.80	$	0.80	$	0.55		$	0.36
Diluted		1.07		0.80		0.80		0.55			0.36

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Consolidated Balance Sheets
(Unaudited)
	As of
	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
	(Dollars in thousands)
Assets:
Cash and due from banks	$	10,160		$	9,196		$	10,191		$	13,637		$	16,526
Interest-bearing deposits in other banks		5,234			5,420			6,299			10,736			8,006
Total cash and cash equivalents		15,394			14,616			16,490			24,373			24,532
Investment securities:
Equity securities		695			690			687			665			661
Available for sale securities, at fair value		332,944			348,406			343,411			327,167			332,319
Held to maturity securities, at amortized cost		191,815			196,188			200,559			207,257			212,111
Total investment securities		525,454			545,284			544,657			535,089			545,091
Loans:
Loans held for investment		898,547			881,272			851,114			813,960			790,642
Less: allowance for credit losses		(6,965	)		(6,793	)		(6,536	)		(6,250	)		(6,146	)
Loans, net		891,582			874,479			844,578			807,710			784,496
Operating lease right-of-use assets		8,324			8,537			8,553			8,767			8,968
Premises and equipment, net		17,884			17,911			11,411			11,569			11,940
Accrued interest receivable		5,297			5,322			5,305			5,161			5,058
Goodwill		339			339			339			339			339
Deferred tax asset, net		8,454			7,391			7,988			9,742			10,030
Bank-owned life insurance		27,942			27,750			27,555			27,360			27,168
Federal Home Loan Bank and other bank stock, at cost		8,577			8,162			6,915			6,220			6,079
Other assets		8,070			7,409			7,385			7,811			7,749
Total assets	$	1,517,317		$	1,517,200		$	1,481,176		$	1,444,141		$	1,431,450
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing	$	127,886		$	120,899		$	118,126		$	120,075		$	122,764
Interest-bearing		649,821			652,290			635,855			642,834			643,719
Total transaction accounts		777,707			773,189			753,981			762,909			766,483
Time deposits		412,959			430,462			442,849			420,990			420,496
Total deposits		1,190,666			1,203,651			1,196,830			1,183,899			1,186,979
Accrued interest payable		4,056			4,378			4,328			4,059			4,188
Short-term borrowings		19,573			17,056			6,326			-			30,000
Long-term borrowings		181,186			166,186			151,186			141,186			96,186
Operating lease liability		8,662			8,861			8,832			9,028			9,211
Other liabilities		7,328			8,383			7,934			7,649			7,493
Total liabilities		1,411,471			1,408,515			1,375,436			1,345,821			1,334,057
Stockholders' Equity:
Common stock		11,008			11,008			11,008			11,015			11,015
Capital surplus		5,781			5,781			5,781			5,825			5,825
Retained earnings		116,277			114,911			114,130			113,338			113,080
Accumulated other comprehensive income (loss)		(23,379	)		(19,174	)		(21,338	)		(27,970	)		(29,250	)
Treasury stock		(3,841	)		(3,841	)		(3,841	)		(3,888	)		(3,277	)
Total stockholders' equity		105,846			108,685			105,740			98,320			97,393
Total liabilities and stockholders' equity	$	1,517,317		$	1,517,200		$	1,481,176		$	1,444,141		$	1,431,450

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Loan Composition
(Unaudited)
	As of
	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
	(Dollars in thousands)
Loans:
Commercial and industrial loans	$	130,279	$	129,389	$	140,272	$	137,474	$	138,038
Real estate:
1-4 single family residential loans		424,968		430,427		427,072		400,722		401,588
Construction, land and development loans		48,403		31,543		27,805		24,013		17,043
Commercial real estate loans (including multifamily)		281,027		274,906		240,283		235,884		217,163
Consumer loans and leases		13,870		15,007		15,682		15,867		16,810
Total loans held in portfolio	$	898,547	$	881,272	$	851,114	$	813,960	$	790,642

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Deposit Composition
(Unaudited)
	As of
	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
	(Dollars in thousands)
Deposits:
Noninterest-bearing demand deposits	$	127,886	$	120,899	$	118,126	$	120,075	$	122,764
Interest-bearing demand deposits		269,239		274,116		259,182		260,554		260,874
Savings and money market accounts		380,582		378,174		376,673		382,280		382,845
Time deposits		412,959		430,462		442,849		420,990		420,496
Total deposits	$	1,190,666	$	1,203,651	$	1,196,830	$	1,183,899	$	1,186,979

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Average Balances and Yields
(Unaudited)
	Three Months Ended
	March 31, 2026						March 31, 2025
	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	$	8,430	$	69	3.32	%	$	6,983	$	86	4.99	%
Loans(2)		886,003		11,761	5.38	%		785,050		10,104	5.22	%
Investment securities and other		531,771		4,256	3.25	%		541,899		4,186	3.13	%
Total interest-earning assets		1,426,204		16,086	4.57	%		1,333,932		14,376	4.37	%
Noninterest-earning assets		85,466						81,647
Total assets	$	1,511,670					$	1,415,579
Interest-bearing liabilities:
Interest-bearing demand deposits	$	267,617	$	311	0.47	%	$	267,559	$	395	0.60	%
Savings and money market accounts		377,541		1,777	1.91	%		375,110		2,083	2.25	%
Time deposits		420,376		3,388	3.27	%		430,448		3,924	3.70	%
FHLB advances and other borrowings		189,641		1,997	4.27	%		111,359		1,346	4.90	%
Total interest-bearing liabilities		1,255,175		7,473	2.41	%		1,184,476		7,748	2.65	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		126,452						119,095
Other liabilities		19,994						16,555
Stockholders' equity		110,049						95,453
Total liabilities and stockholders' equity	$	1,511,670					$	1,415,579
Net interest rate spread					2.16	%					1.72	%
Net interest income and margin			$	8,613	2.45	%			$	6,628	2.02	%
Net interest income and margin (tax equivalent)(3)			$	8,866	2.52	%			$	6,874	2.09	%
(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 March 31, 2026 and March 31, 2025, respectively.

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Average Balances and Yields
(Unaudited)
	Three Months Ended
	March 31, 2026						December 31, 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		8,430	$	69	3.32	%	$	8,972	$	96	4.25	%
Loans(2)		886,003		11,761	5.38	%		857,187		11,725	5.43	%
Investment securities and other		531,771		4,256	3.25	%		544,426		4,340	3.16	%
Total interest-earning assets		1,426,204		16,086	4.57	%		1,410,585		16,161	4.55	%
Noninterest-earning assets		85,466						81,167
Total assets	$	1,511,670					$	1,491,752
Interest-bearing liabilities:
Interest-bearing demand deposits	$	267,617	$	311	0.47	%	$	254,597	$	367	0.57	%
Savings and money market accounts		377,541		1,777	1.91	%		370,591		1,980	2.12	%
Time deposits		420,376		3,388	3.27	%		438,477		3,635	3.29	%
FHLB advances and other borrowings		189,641		1,997	4.27	%		173,750		1,937	4.42	%
Total interest-bearing liabilities		1,255,175		7,473	2.41	%		1,237,415		7,919	2.54	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		126,452						126,500
Other liabilities		19,994						21,779
Stockholders' equity		110,049						106,058
Total liabilities and stockholders' equity	$	1,511,670					$	1,491,752
Net interest rate spread					2.16	%					2.01	%
Net interest income and margin			$	8,613	2.45	%			$	8,242	2.32	%
Net interest income and margin (tax equivalent)(3)			$	8,866	2.52	%			$	8,449	2.38	%
(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 March 31, 2026 and December 31, 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
	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
	(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income	$	8,613		$	8,242		$	8,013		$	7,287		$	6,628
Average interst-earning assets		1,426,204			1,410,585			1,394,547			1,342,466			1,333,932
Net interest margin		2.45	%		2.32	%		2.28	%		2.18	%		2.02	%
Net interest margin - Non-GAAP basis:
Net interest income	$	8,613		$	8,242		$	8,013		$	7,287		$	6,628
Plus:
Impact of fully taxable equivalent adjustment		253			207			202			286			246
Net interest income on a fully taxable equivalent basis	$	8,866		$	8,449		$	8,215		$	7,573		$	6,874
Average interst-earning assets		1,426,204			1,410,585			1,394,547			1,342,466			1,333,932
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis		2.52	%		2.38	%		2.34	%		2.26	%		2.09	%

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share
(Unaudited)
	As of
	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
	(Dollars in thousands, except per share data)
Total stockholders' equity	$	105,846	$	108,685	$	105,740	$	98,320	$	97,393
Less:
Goodwill and other intangible assets		339		339		339		339		339
Tangible stockholders' equity	$	105,507	$	108,346	$	105,401	$	97,981	$	97,054
Shares outstanding		2,118,389		2,118,389		2,118,389		2,117,035		2,135,540
Book value per share	$	49.97	$	51.31	$	49.92	$	46.44	$	45.61
Less:
Goodwill and other intangible assets per share	$	0.16	$	0.16	$	0.16	$	0.16	$	0.16
Tangible book value per share	$	49.81	$	51.15	$	49.76	$	46.28	$	45.45

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Tangible Equity to Tangible Assets
(Unaudited)
	As of
	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
	(Dollars in thousands)
Total stockholders' equity to total assets - GAAP basis:
Total stockholders' equity (numerator)	$	105,846		$	108,685		$	105,740		$	98,320		$	97,393
Total assets (denominator)		1,517,317			1,517,200			1,481,176			1,444,141			1,431,450
Total stockholders' equity to total assets		6.98	%		7.16	%		7.14	%		6.81	%		6.80	%
Tangible equity to tangible assets - Non-GAAP basis:
Tangible equity:
Total stockholders' equity	$	105,846		$	108,685		$	105,740		$	98,320		$	97,393
Less:
Goodwill and other intangible assets		339			339			339			339			339
Total tangible common equity (numerator)	$	105,507		$	108,346		$	105,401		$	97,981		$	97,054
Tangible assets:
Total assets		1,517,317			1,517,200			1,481,176			1,444,141			1,431,450
Less:
Goodwill and other intangible assets		339			339			339			339			339
Total tangible assets (denominator)	$	1,516,978		$	1,516,861		$	1,480,837		$	1,443,802		$	1,431,111
Tangible equity to tangible assets		6.96	%		7.14	%		7.12	%		6.79	%		6.78	%