1st Summit Bancorp of Johnstown Announces Second Quarter 2026 Results

1st Summit Reports More Than 29% Growth in Core Earnings as Strategic Initiatives Continue to Drive Profitability

JOHNSTOWN, Pa.--(BUSINESS WIRE)--1st Summit Bancorp of Johnstown, Inc. (OTCID: FSMK) (the “Company”), parent company of 1st Summit Bank, today announced net income of $2.5 million for the second quarter ended June 30, 2026.

Reported net income increased 9.4% compared to the first quarter of 2026. Excluding a $350 thousand after tax gain on the sale of securities recognized during the first quarter, core net income increased by more than 29% quarter over quarter, reflecting continued improvement in the Company's underlying earnings profile. The quarter also marked continued expansion in net interest margin, strong loan growth, improved operating efficiency, excellent credit quality, and higher returns on both assets and equity.

"Our second quarter results represent another meaningful milestone in the transformation of 1st Summit," said Allison Johnson, Chief Executive Officer of 1st Summit Bancorp. "For more than a year we have remained focused on improving the fundamental earnings power of the Company by repositioning the balance sheet, growing high-quality loans, improving our funding mix, and operating with greater discipline. Those efforts are now translating into measurable financial results. Core earnings increased more than 29% from the prior quarter, net interest margin expanded for the fifth consecutive quarter, profitability continued to improve, and credit quality remained exceptionally strong. Perhaps most importantly, every dollar of earnings this quarter was generated through our core banking franchise rather than one-time gains or non-recurring items."

She continued, "While we are encouraged by the progress we have made, we believe there remains considerable opportunity ahead. The investments we are making today in our people, technology, customer experience, and communities are designed to create a stronger franchise that we believe will be capable of delivering sustainable long-term value for our shareholders while continuing to serve our customers and communities at the highest level."

Balance Sheet Growth

Gross loans increased to approximately $917 million at June 30, 2026, representing 8.38% annualized loan growth during the quarter. Loan production remained broad-based across the Company's lending portfolio and reflects continued demand throughout its market area.

Consistent with management's previously communicated strategy, principal cash flows from the securities portfolio continued to be redeployed into higher-yielding loans. As a result, the Company's loan-to-deposit ratio increased to 78% at June 30, 2026, compared to 75% at March 31, 2026, reflecting continued progress toward optimizing the balance sheet and increasing earning asset utilization.

Management believes strengthening the loan portfolio while improving the overall funding mix remains one of the most significant drivers of future earnings growth.

Net Interest Margin and Profitability

Net interest margin expanded to 2.57% during the second quarter from 2.45% in the first quarter of 2026. Margin expansion was driven by continued loan growth, balance sheet optimization, and disciplined funding management.

Operating efficiency also continued to improve as the Company's efficiency ratio declined to 73.6% for the quarter ended June 30, 2026, compared to 75.2% during the prior quarter.

The improvement in operating performance resulted in stronger profitability across every major performance metric.

• Net income totaled $2.5 million at June 30, 2026.
• Core net income increased more than 29% for the second quarter of 2026 compared to the first quarter after excluding the prior quarter's gain on the sale of securities.
• Return on average assets increased to 0.65% for the second quarter of 2026, compared to 0.61% during the first quarter.
• Return on average equity increased to 9.27% for the second quarter of 2026, compared to 8.39% in the prior quarter.

Management believes these results demonstrate continued progress toward restoring profitability levels more consistent with the Company's long-term strategic objectives.

Credit Quality Remains Strong

Credit quality remained a hallmark of the Company's performance during the quarter.

The allowance for credit losses increased to 0.79% of gross loans at June 30, 2026, primarily reflecting continued loan growth.

The Company recorded net recoveries during the quarter, while both nonaccrual loans and delinquent loans remained relatively stable. Management believes these results reflect the disciplined underwriting standards and proactive portfolio management that continue to characterize the Company's lending practices.

Investing in the Future

In May, the Company announced ASCEND 250, a first-of-its-kind apprenticeship program that will launch in 2027. The initiative is designed to identify, educate, and develop the next generation of community bankers while creating meaningful career opportunities for local students.

The program reflects 1st Summit's long-standing commitment to investing not only in its institution, but also in the long-term economic vitality of the communities it serves. By developing future banking professionals locally, the Company believes it can help address workforce challenges while creating opportunities that encourage talented young people to build their careers within the region.

The Company also continues to make significant investments in technology. During the second half of 2026, 1st Summit expects to launch a best-in-class digital banking platform that will provide customers with the modern online and mobile banking capabilities they increasingly expect while enhancing convenience, security, and overall customer experience.

Management expects these strategic investments, together with continued emphasis on growing relationship deposits and expanding market share throughout the Company's footprint, to further strengthen the funding mix, support continued loan growth, and enhance long-term shareholder value.

Looking Forward

"Our strategy has never been focused on producing one exceptional quarter," Allison Johnson concluded. "It has been about methodically building a stronger bank with a more resilient earnings stream. Over the last five quarters we have steadily improved our balance sheet, expanded our net interest margin, increased profitability, and demonstrated that we can grow while maintaining excellent credit quality. We believe the momentum we are seeing today is the result of deliberate strategic decisions, and that continuing to execute those strategies will allow us to deliver increasing value for our shareholders, customers, employees, and the communities we proudly serve."

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

This press release includes forward-looking statements within the meaning of the Private Securities 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 and our future investments in technology (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 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
	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
	(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans	$	12,499	$	11,761	$	11,725	$	11,360	$	10,643
Interest and dividends on investment securities		4,256		4,256		4,340		4,542		4,026
Other interest income		86		69		96		189		161
Total interest income		16,841		16,086		16,161		16,091		14,830
Interest expense:
Interest on deposits		5,326		5,476		5,982		6,251		5,973
Interest on FHLB advances and other borrowings		2,289		1,997		1,937		1,827		1,570
Total interest expense		7,615		7,473		7,919		8,078		7,543
Net interest income		9,226		8,613		8,242		8,013		7,287
Provision for credit losses		200		200		251		250		125
Net interest income after provision for credit losses		9,026		8,413		7,991		7,763		7,162
Noninterest income:
Service charges and fees		674		621		702		628		657
Wealth management income		683		602		649		604		583
Earnings on bank-owned life insurance		194		192		196		194		192
Interchange income		709		522		561		524		712
Gain (loss) on sales of investment securities		-		446		-		-		142
Change in fair value of equity securities		6		4		4		22		4
Other noninterest income		41		13		52		26		30
Total noninterest income		2,307		2,400		2,164		1,998		2,320
Noninterest expense:
Salaries and employee benefits		4,277		4,297		4,225		4,333		4,357
Occupancy and equipment expenses		1,122		1,092		1,066		999		1,071
Professional services		540		350		374		344		334
Data processing and network		1,085		1,072		997		867		1,078
Regulatory assessments and insurance		165		165		171		171		165
Shares tax expense		221		219		219		219		219
Other operating expenses		1,080		1,082		1,165		1,030		1,090
Total noninterest expense		8,490		8,277		8,217		7,963		8,314
Income before income tax expense		2,843		2,536		1,938		1,798		1,168
Income tax expense		352		259		247		95		(1	)
Net income	$	2,491	$	2,277	$	1,691	$	1,703	$	1,169
Earnings per Common Share
Basic	$	1.18	$	1.07	$	0.80	$	0.80	$	0.55
Diluted		1.18		1.07		0.80		0.80		0.55

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Consolidated Balance Sheets
(Unaudited)
	As of
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
	(Dollars in thousands)
Assets:
Cash and due from banks	$	10,629		$	10,160		$	9,196		$	10,191		$	13,637
Interest-bearing deposits in other banks		9,000			5,234			5,420			6,299			10,736
Total cash and cash equivalents		19,629			15,394			14,616			16,490			24,373
Investment securities:
Equity securities		700			695			690			687			665
Available for sale securities, at fair value		322,686			332,944			348,406			343,411			327,167
Held to maturity securities, at amortized cost		186,428			191,815			196,188			200,559			207,257
Total investment securities		509,814			525,454			545,284			544,657			535,089
Loans:
Loans held for investment		917,309			898,547			881,272			851,114			813,960
Less: allowance for credit losses		(7,242	)		(6,965	)		(6,793	)		(6,536	)		(6,250	)
Loans, net		910,067			891,582			874,479			844,578			807,710
Operating lease right-of-use assets		8,144			8,324			8,537			8,553			8,767
Premises and equipment, net		17,698			17,884			17,911			11,411			11,569
Accrued interest receivable		5,392			5,297			5,322			5,305			5,161
Goodwill		339			339			339			339			339
Deferred tax asset, net		7,759			8,454			7,391			7,988			9,742
Bank-owned life insurance		28,137			27,942			27,750			27,555			27,360
Federal Home Loan Bank and other bank stock, at cost		11,116			8,577			8,162			6,915			6,220
Other assets		7,577			8,070			7,409			7,385			7,811
Total assets	$	1,525,672		$	1,517,317		$	1,517,200		$	1,481,176		$	1,444,141
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing	$	127,323		$	127,886		$	120,899		$	118,126		$	120,075
Interest-bearing		643,336			649,821			652,290			635,855			642,834
Total transaction accounts		770,659			777,707			773,189			753,981			762,909
Time deposits		405,561			412,959			430,462			442,849			420,990
Total deposits		1,176,220			1,190,666			1,203,651			1,196,830			1,183,899
Accrued interest payable		4,043			4,056			4,378			4,328			4,059
Short-term borrowings		139,300			79,573			37,056			26,326			20,000
Long-term borrowings		81,186			121,186			146,186			131,186			121,186
Operating lease liability		8,491			8,662			8,861			8,832			9,028
Other liabilities		6,535			7,328			8,383			7,934			7,649
Total liabilities		1,415,775			1,411,471			1,408,515			1,375,436			1,345,821
Stockholders' Equity:
Common stock		11,008			11,008			11,008			11,008			11,015
Capital surplus		5,781			5,781			5,781			5,781			5,825
Retained earnings		117,857			116,277			114,911			114,130			113,338
Accumulated other comprehensive income (loss)		(20,908	)		(23,379	)		(19,174	)		(21,338	)		(27,970	)
Treasury stock		(3,841	)		(3,841	)		(3,841	)		(3,841	)		(3,888	)
Total stockholders' equity		109,897			105,846			108,685			105,740			98,320
Total liabilities and stockholders' equity	$	1,525,672		$	1,517,317		$	1,517,200		$	1,481,176		$	1,444,141

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Loan Composition
(Unaudited)
	As of
	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
	(Dollars in thousands)
Loans:
Commercial and industrial loans	$	132,512	$	130,279	$	129,389	$	140,272	$	137,474
Real estate:
1-4 single family residential loans		434,645		424,968		430,427		427,072		400,722
Construction, land and development loans		37,334		48,403		31,543		27,805		24,013
Commercial real estate loans (including multifamily)		299,440		281,027		274,906		240,283		235,884
Consumer loans and leases		13,378		13,870		15,007		15,682		15,867
Total loans held in portfolio	$	917,309	$	898,547	$	881,272	$	851,114	$	813,960

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Deposit Composition
(Unaudited)
			As of
	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
	(Dollars in thousands)
Deposits:
Noninterest-bearing demand deposits	$	127,323	$	127,886	$	120,899	$	118,126	$	120,075
Interest-bearing demand deposits		263,670		269,239		274,116		259,182		260,554
Savings and money market accounts		379,666		380,582		378,174		376,673		382,280
Time deposits		405,561		412,959		430,462		442,849		420,990
Total deposits	$	1,176,220	$	1,190,666	$	1,203,651	$	1,196,830	$	1,183,899

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Average Balances and Yields
(Unaudited)
	Three Months Ended
	June 30, 2026						June 30, 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	$	8,543	$	86	4.04	%	$	14,503	$	161	4.45	%
Loans(2)		909,972		12,499	5.51	%		804,978		10,643	5.30	%
Investment securities and other		519,165		4,256	3.29	%		522,985		4,026	3.09	%
Total interest-earning assets		1,437,680		16,841	4.70	%		1,342,466		14,830	4.43	%
Noninterest-earning assets		88,105						81,514
Total assets	$	1,525,785					$	1,423,980
Interest-bearing liabilities:
Interest-bearing demand deposits	$	265,227	$	289	0.44	%	$	258,256	$	407	0.63	%
Savings and money market accounts		378,521		1,813	1.92	%		382,050		1,918	2.01	%
Time deposits		408,438		3,224	3.17	%		415,073		3,648	3.53	%
FHLB advances and other borrowings		217,344		2,289	4.22	%		133,366		1,570	4.72	%
Total interest-bearing liabilities		1,269,530		7,615	2.41	%		1,188,745		7,543	2.55	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		130,154						120,936
Other liabilities		18,356						19,078
Stockholders' equity		107,745						95,221
Total liabilities and stockholders' equity	$	1,525,785					$	1,423,980
Net interest rate spread					2.29	%					1.89	%
Net interest income and margin			$	9,226	2.57	%			$	7,287	2.18	%
Net interest income and margin (tax equivalent)(3)			$	9,453	2.64	%			$	7,573	2.26	%
(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 June 30, 2026 and June 30, 2025, respectively.

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Average Balances and Yields
(Unaudited)
	Three Months Ended
	June 30, 2026						March 31, 2026
	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		8,543	$	86	4.04	%	$	8,430	$	69	3.32	%
Loans(2)		909,972		12,499	5.51	%		886,003		11,761	5.38	%
Investment securities and other		519,165		4,256	3.29	%		531,771		4,256	3.25	%
Total interest-earning assets		1,437,680		16,841	4.70	%		1,426,204		16,086	4.57	%
Noninterest-earning assets		88,105						85,466
Total assets	$	1,525,785					$	1,511,670
Interest-bearing liabilities:
Interest-bearing demand deposits	$	265,227	$	289	0.44	%	$	267,617	$	311	0.47	%
Savings and money market accounts		378,521		1,813	1.92	%		377,541		1,777	1.91	%
Time deposits		408,438		3,224	3.17	%		420,376		3,388	3.27	%
FHLB advances and other borrowings		217,344		2,289	4.22	%		189,641		1,997	4.27	%
Total interest-bearing liabilities		1,269,530		7,615	2.41	%		1,255,175		7,473	2.41	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		130,154						126,452
Other liabilities		18,356						19,994
Stockholders' equity		107,745						110,049
Total liabilities and stockholders' equity	$	1,525,785					$	1,511,670
Net interest rate spread					2.29	%					2.16	%
Net interest income and margin			$	9,226	2.57	%			$	8,613	2.45	%
Net interest income and margin (tax equivalent)(3)			$	9,453	2.64	%			$	8,866	2.52	%
(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 June 30, 2026 and March 31, 2026, 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
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
	(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income	$	9,226		$	8,613		$	8,242		$	8,013		$	7,287
Average interest-earning assets		1,437,680			1,426,204			1,410,585			1,394,547			1,342,466
Net interest margin		2.57	%		2.45	%		2.32	%		2.28	%		2.18	%
Net interest margin - Non-GAAP basis:
Net interest income	$	9,226		$	8,613		$	8,242		$	8,013		$	7,287
Plus:
Impact of fully taxable equivalent adjustment		227			253			207			202			286
Net interest income on a fully taxable equivalent basis	$	9,453		$	8,866		$	8,449		$	8,215		$	7,573
Average interest-earning assets		1,437,680			1,426,204			1,410,585			1,394,547			1,342,466
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis		2.64	%		2.52	%		2.38	%		2.34	%		2.26	%

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share
(Unaudited)
	As of
	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
	(Dollars in thousands, except per share data)
Total stockholders' equity	$	109,897	$	105,846	$	108,685	$	105,740	$	98,320
Less:
Goodwill and other intangible assets		339		339		339		339		339
Tangible stockholders' equity	$	109,558	$	105,507	$	108,346	$	105,401	$	97,981
Shares outstanding		2,118,389		2,118,389		2,118,389		2,118,389		2,117,035
Book value per share	$	51.88	$	49.97	$	51.31	$	49.92	$	46.44
Less:
Goodwill and other intangible assets per share	$	0.16	$	0.16	$	0.16	$	0.16	$	0.16
Tangible book value per share	$	51.72	$	49.81	$	51.15	$	49.76	$	46.28

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Tangible Equity to Tangible Assets
(Unaudited)
	As of
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
	(Dollars in thousands)
Total stockholders' equity to total assets - GAAP basis:
Total stockholders' equity (numerator)	$	109,897		$	105,846		$	108,685		$	105,740		$	98,320
Total assets (denominator)		1,525,672			1,517,317			1,517,200			1,481,176			1,444,141
Total stockholders' equity to total assets		7.20	%		6.98	%		7.16	%		7.14	%		6.81	%
Tangible equity to tangible assets - Non-GAAP basis:
Tangible equity:
Total stockholders' equity	$	109,897		$	105,846		$	108,685		$	105,740		$	98,320
Less:
Goodwill and other intangible assets		339			339			339			339			339
Total tangible common equity (numerator)	$	109,558		$	105,507		$	108,346		$	105,401		$	97,981
Tangible assets:
Total assets		1,525,672			1,517,317			1,517,200			1,481,176			1,444,141
Less:
Goodwill and other intangible assets		339			339			339			339			339
Total tangible assets (denominator)	$	1,525,333		$	1,516,978		$	1,516,861		$	1,480,837		$	1,443,802
Tangible equity to tangible assets		7.18	%		6.96	%		7.14	%		7.12	%		6.79	%