1st Summit Bancorp of Johnstown Announces Third Quarter 2026 Results

Nine-month net income totaled $7.3 million as quarterly lending growth accompanied a decline in shareholders’ equity.

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1st Summit Continues Earnings Progress as Strong Loan Growth and Strategic Investments Strengthen the Franchise

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 $2.55 million for the third quarter ended September 30, 2026, an increase of 2.3% compared to $2.49 million for the second quarter of 2026 and 49.7% compared to $1.70 million for the third quarter of 2025. Net income for the first nine months of 2026 totaled $7.3 million.

Third quarter results are a continuation of the progress established earlier in the year, with strong loan growth, further expansion in net interest margin, and stable credit quality. Net interest income increased 3.4% from the prior quarter, while noninterest expense increased just 0.6%, demonstrating continued discipline as the Company grows and invests in its future.

“Our third quarter results reflect the work that we have put into strengthening 1st Summit,” said Allison Johnson, Chief Executive Officer of 1st Summit Bancorp. “During the third quarter, we grew loans at a double-digit annualized rate, maintained stable credit quality, and kept quarterly expense growth below 1%. We are particularly encouraged by our ability to grow the loan portfolio while also maintaining the strong underwriting standards that have served this Bank well.”

She continued, “The progress is visible in our results, but it begins with our people and the relationships they build every day. Our team has remained focused on understanding customers’ needs, earning their business, and managing the Bank with discipline. We believe that this commitment will continue to help us build a stronger earnings foundation while creating room to invest in the customer experience and the future of the franchise.”

Balance Sheet Growth

Gross loans increased $24.2 million during the quarter to $941.5 million at September 30, 2026, representing annualized growth of 10.47%. Loans increased $60.2 million, or 9.1% annualized, from December 31, 2025. Quarterly loan growth was led by commercial real estate and construction, land and development lending.

Total deposits increased $13.9 million to $1.19 billion at September 30, 2026, representing annualized growth of 4.68%. Growth in interest-bearing demand deposits more than offset declines in time deposits and noninterest-bearing deposits during the third quarter of 2026. The loan-to-deposit ratio increased to 79.1% at September 30, 2026, compared to approximately 78.0% at June 30, 2026, as the Company continued to improve its earning asset mix.

Management continues to view loan growth and the development of lasting deposit relationships as closely connected priorities, and that growing those relationships supports the Bank’s lending capacity and strengthens the funding foundation needed to sustain its progress.

Total assets were $1.52 billion at September 30, 2026, compared to $1.53 billion at June 30, 2026. Shareholders’ equity totaled $99.5 million at September 30, 2026, compared to $109.9 million at June 30, 2026, primarily reflecting a $12.1 million increase in accumulated other comprehensive losses. Changes in accumulated other comprehensive income are recorded within shareholders’ equity rather than current-period net income.

Net Interest Margin and Profitability

Net interest income totaled $9.5 million for the quarter ended September 30, 2026, an increase of $316 thousand, or 3.4%, from the second quarter of 2026 and an increase of $1.5 million, or 19.1%, from the third quarter of 2025. Loan interest income increased $545 thousand from the prior quarter, more than offsetting lower investment income and higher total interest expense.

Net interest margin expanded to 2.63% for the third quarter of 2026, compared to 2.57% for the second quarter of 2026 and 2.28% for the third quarter of 2025. The improvement reflects continued progress in shifting the earning asset mix toward loans and strengthening the Company’s underlying earnings capacity.

With the current interest rate environment and liability mix, the pace of further margin expansion will depend increasingly on continued loan growth in the fourth quarter. Management remains focused on disciplined loan pricing and developing deposit relationships that support sustainable growth.

Profitability and operating efficiency remained solid during the third quarter of 2026:

• Annualized return on average assets was 0.66%.
• Annualized return on average equity was 9.47%.
• The efficiency ratio remained essentially stable at 73.64%, compared to 73.61% for the second quarter of 2026.

Credit Quality Remains Stable

Credit quality remained stable during the third quarter of 2026 as the loan portfolio grew. Nonaccrual loans represented 0.32% of total loans at September 30, 2026. The allowance for credit losses totaled $7.3 million at September 30, 2026, or 0.78% of gross loans, and covered nonaccrual loans by approximately 2.39 times. The provision for credit losses was $200 thousand for the three months ended September 30, 2026, unchanged from the prior quarter.

Management believes this performance reinforces the value of consistent underwriting and active portfolio monitoring, and that preserving credit quality remains central to the Company’s approach to growth and its ability to translate new business into lasting shareholder value.

Noninterest Income and Expense

Noninterest income totaled $2.1 million for the third quarter of 2026, a decline of $251 thousand, or 10.9%, from the second quarter of 2026, primarily reflecting lower interchange and wealth management income. Compared to the third quarter of 2025, noninterest income increased 2.9%. No gains on sales of investment securities were recognized during the quarter.

Noninterest expense totaled $8.5 million for the third quarter of 2026, an increase of $51 thousand, or 0.6%, from the second quarter of 2026. Lower professional services and other operating expenses helped offset increases in salaries and benefits, data processing, and regulatory assessments and insurance.

The Company continues to manage everyday operating costs carefully while directing resources toward investments that improve service and support future growth.

Looking Forward

“We enter the final quarter of 2026 encouraged by what our team has accomplished and focused on closing out a strong year by delivering solid operating results,” Johnson concluded. “Our priorities remain clear: continue growing quality loans, build lasting deposit relationships, and preserve the discipline behind our progress. We are proud of how far we have come and remain committed to doing the work that creates long-term value for our shareholders, customers, and communities.”

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. 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 and our future investments in technology, including the planned fourth quarter 2026 deployment of the Bank’s new online banking platform; (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
		September 30, 2026				June 30, 2026			March 31,2026			December 31, 2025			September 30,2025
		(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans		$	13,044			$	12,499		$	11,761		$	11,725		$	11,360
Interest and dividends on investment securities			4,162				4,256			4,256			4,340			4,542
Other interest income			80				86			69			96			189
Total interest income			17,286				16,841			16,086			16,161			16,091
Interest expense:
Interest on deposits			5,367				5,326			5,476			5,982			6,251
Interest on FHLB advances and other borrowings			2,377				2,289			1,997			1,937			1,827
Total interest expense			7,744				7,615			7,473			7,919			8,078
Net interest income			9,542				9,226			8,613			8,242			8,013
Provision for credit losses			200				200			200			251			250
Net interest income after provision for credit losses			9,342				9,026			8,413			7,991			7,763
Noninterest income:
Service charges and fees			649				674			621			702			628
Wealth management income			614				683			602			649			604
Earnings on bank-owned life insurance			209				194			192			196			194
Interchange income			589				709			522			561			524
Gain (loss) on sales of investment securities			-				-			446			-			-
Change in fair value of equity securities			(15	)			6			4			4			22
Other noninterest income			10				41			13			52			26
Total noninterest income			2,056				2,307			2,400			2,164			1,998
Noninterest expense:
Salaries and employee benefits			4,401				4,277			4,297			4,225			4,333
Occupancy and equipment expenses			1,097				1,122			1,092			1,066			999
Professional services			377				540			350			374			344
Data processing and network			1,160				1,085			1,072			997			867
Regulatory assessments and insurance			270				165			165			171			171
Shares tax expense			234				221			219			219			219
Other operating expenses			1,002				1,080			1,082			1,165			1,030
Total noninterest expense			8,541				8,490			8,277			8,217			7,963
Income before income tax expense			2,857				2,843			2,536			1,938			1,798
Income tax expense			308				352			259			247			95
Net income		$	2,549			$	2,491		$	2,277		$	1,691		$	1,703
Earnings per Common Share
Basic		$	1.20			$	1.18		$	1.07		$	0.80		$	0.80
Diluted			1.20				1.17			1.07			0.80			0.80

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Consolidated Balance Sheets
(Unaudited)
		As of
		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
		(Dollars in thousands)
Assets:
Cash and due from banks		$	9,448			$	10,629			$	10,160			$	9,196			$	10,191
Interest-bearing deposits in other banks			5,364				9,000				5,234				5,420				6,299
Total cash and cash equivalents			14,812				19,629				15,394				14,616				16,490
Investment securities:
Equity securities			685				700				695				690				687
Available for sale securities, at fair value			296,409				322,686				332,944				348,406				343,411
Held to maturity securities, at amortized cost			180,588				186,428				191,815				196,188				200,559
Total investment securities			477,682				509,814				525,454				545,284				544,657
Loans:
Loans held for investment			941,506				917,309				898,547				881,272				851,114
Less: allowance for credit losses			(7,297	)			(7,242	)			(6,965	)			(6,793	)			(6,536	)
Loans, net			934,209				910,067				891,582				874,479				844,578
Operating lease right-of-use assets			7,931				8,144				8,324				8,537				8,553
Premises and equipment, net			17,776				17,698				17,884				17,911				11,411
Accrued interest receivable			5,368				5,392				5,297				5,322				5,305
Goodwill			339				339				339				339				339
Deferred tax asset, net			10,940				7,759				8,454				7,391				7,988
Bank-owned life insurance			29,799				28,137				27,942				27,750				27,555
Federal Home Loan Bank and other bank stock, at cost			9,035				11,116				8,577				8,162				6,915
Other assets			7,150				7,577				8,070				7,409				7,385
Total assets		$	1,515,041			$	1,525,672			$	1,517,317			$	1,517,200			$	1,481,176
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing		$	124,221			$	127,323			$	127,886			$	120,899			$	118,126
Interest-bearing			667,303				643,336				649,821				652,290				635,855
Total transaction accounts			791,524				770,659				777,707				773,189				753,981
Time deposits			398,568				405,561				412,959				430,462				442,849
Total deposits			1,190,092				1,176,220				1,190,666				1,203,651				1,196,830
Accrued interest payable			3,972				4,043				4,056				4,378				4,328
Short-term borrowings			126,165				139,300				79,573				37,056				26,326
Long-term borrowings			81,186				81,186				121,186				146,186				131,186
Operating lease liability			8,290				8,491				8,662				8,861				8,832
Other liabilities			5,849				6,535				7,328				8,383				7,934
Total liabilities			1,415,554				1,415,775				1,411,471				1,408,515				1,375,436
Stockholders' Equity:
Common stock			11,008				11,008				11,008				11,008				11,008
Capital surplus			5,847				5,781				5,781				5,781				5,781
Retained earnings			119,495				117,857				116,277				114,911				114,130
Accumulated other comprehensive income (loss)			(33,018	)			(20,908	)			(23,379	)			(19,174	)			(21,338	)
Treasury stock			(3,845	)			(3,841	)			(3,841	)			(3,841	)			(3,841	)
Total stockholders' equity			99,487				109,897				105,846				108,685				105,740
Total liabilities and stockholders' equity		$	1,515,041			$	1,525,672			$	1,517,317			$	1,517,200			$	1,481,176

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Loan Composition
(Unaudited)
		As of
		September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
		(Dollars in thousands)
Loans:
Commercial and industrial loans		$	131,244		$	132,512		$	130,279		$	129,389		$	140,272
Real estate:
1-4 single family residential loans			425,812			434,645			424,968			430,427			427,072
Construction, land and development loans			51,965			37,334			48,403			31,543			27,805
Commercial real estate loans (including multifamily)			318,617			299,440			281,027			274,906			240,283
Consumer loans and leases			13,868			13,378			13,870			15,007			15,682
Total loans held in portfolio		$	941,506		$	917,309		$	898,547		$	881,272		$	851,114

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Deposit Composition
(Unaudited)
					As of
		September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
		(Dollars in thousands)
Deposits:
Noninterest-bearing demand deposits		$	124,221		$	127,323		$	127,886		$	120,899		$	118,126
Interest-bearing demand deposits			287,079			263,670			269,239			274,116			259,182
Savings and money market accounts			380,224			379,666			380,582			378,174			376,673
Time deposits			398,568			405,561			412,959			430,462			442,849
Total deposits		$	1,190,092		$	1,176,220		$	1,190,666		$	1,203,651		$	1,196,830

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Average Balances and Yields
(Unaudited)
		Three Months Ended
		September 30, 2026									September 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		$	8,437		$	80		3.76	%		$	16,847		$	189		4.45	%
Loans(2)			932,680			13,044		5.55	%			837,288			11,360		5.38	%
Investment securities and other			498,006			4,162		3.32	%			540,412			4,542		3.33	%
Total interest-earning assets			1,439,123			17,286		4.77	%			1,394,547			16,091		4.58	%
Noninterest-earning assets			87,102									83,711
Total assets		$	1,526,225								$	1,478,258
Interest-bearing liabilities:
Interest-bearing demand deposits		$	266,968		$	314		0.47	%		$	254,822		$	376		0.59	%
Savings and money market accounts			376,188			1,952		2.06	%			373,930			2,057		2.18	%
Time deposits			401,605			3,101		3.06	%			445,011			3,818		3.40	%
FHLB advances and other borrowings			235,894			2,377		4.00	%			154,632			1,827		4.69	%
Total interest-bearing liabilities			1,280,655			7,744		2.40	%			1,228,395			8,078		2.61	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits			128,385									122,871
Other liabilities			10,340									27,685
Stockholders' equity			106,845									99,307
Total liabilities and stockholders' equity		$	1,526,225								$	1,478,258
Net interest rate spread								2.37	%								1.97	%
Net interest income and margin					$	9,542		2.63	%					$	8,013		2.28	%
Net interest income and margin (tax equivalent)(3)					$	9,810		2.70	%					$	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 September 30, 2026 and September 30, 2025, respectively.

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Average Balances and Yields
(Unaudited)
		Three Months Ended
		September 30, 2026									June 30, 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			8,437		$	80		3.76	%		$	8,543		$	86		4.04	%
Loans(2)			932,680			13,044		5.55	%			909,972			12,499		5.51	%
Investment securities and other			498,006			4,162		3.32	%			519,165			4,256		3.29	%
Total interest-earning assets			1,439,123			17,286		4.77	%			1,437,680			16,841		4.70	%
Noninterest-earning assets			87,102									88,105
Total assets		$	1,526,225								$	1,525,785
Interest-bearing liabilities:
Interest-bearing demand deposits		$	266,968		$	314		0.47	%		$	265,227		$	289		0.44	%
Savings and money market accounts			376,188		$	1,952		2.06	%			378,521			1,813		1.92	%
Time deposits			401,605		$	3,101		3.06	%			408,438			3,224		3.17	%
FHLB advances and other borrowings			235,894		$	2,377		4.00	%			217,344			2,289		4.22	%
Total interest-bearing liabilities			1,280,655			7,744		2.40	%			1,269,530			7,615		2.41	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits			128,385									130,154
Other liabilities			10,340									18,356
Stockholders' equity			106,845									107,745
Total liabilities and stockholders' equity		$	1,526,225								$	1,525,785
Net interest rate spread								2.37	%								2.29	%
Net interest income and margin					$	9,542		2.63	%					$	9,226		2.57	%
Net interest income and margin (tax equivalent)(3)					$	9,810		2.70	%					$	9,453		2.64	%

(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 September 30, 2026 and June 30, 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
		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
		(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income		$	9,542			$	9,226			$	8,613			$	8,242			$	8,013
Average interst-earning assets			1,439,123				1,437,680				1,426,204				1,410,585				1,394,547
Net interest margin			2.63	%			2.57	%			2.45	%			2.32	%			2.28	%
Net interest margin - Non-GAAP basis:
Net interest income		$	9,542			$	9,226			$	8,613			$	8,242			$	8,013
Plus:
Impact of fully taxable equivalent adjustment			268				227				253				207				202
Net interest income on a fully taxable equivalent basis		$	9,810			$	9,453			$	8,866			$	8,449			$	8,215
Average interst-earning assets			1,439,123				1,437,680				1,426,204				1,410,585				1,394,547
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis			2.70	%			2.64	%			2.52	%			2.38	%			2.34	%

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share
(Unaudited)
		As of
		September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
		(Dollars in thousands, except per share data)
Total stockholders' equity		$	99,487		$	109,897		$	105,846		$	108,685		$	105,740
Less:
Goodwill and other intangible assets			339			339			339			339			339
Tangible stockholders' equity		$	99,148		$	109,558		$	105,507		$	108,346		$	105,401
Shares outstanding			2,118,293			2,118,389			2,118,389			2,118,389			2,118,389
Book value per share		$	46.97		$	51.88		$	49.97		$	51.31		$	49.92
Less:
Goodwill and other intangible assets per share		$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
Tangible book value per share		$	46.81		$	51.72		$	49.81		$	51.15		$	49.76

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Tangible Equity to Tangible Assets
(Unaudited)
		As of
		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
		(Dollars in thousands)
Total stockholders' equity to total assets - GAAP basis:
Total stockholders' equity (numerator)		$	99,487			$	109,897			$	105,846			$	108,685			$	105,740
Total assets (denominator)			1,515,041				1,525,672				1,517,317				1,517,200				1,481,176
Total stockholders' equity to total assets			6.57	%			7.20	%			6.98	%			7.16	%			7.14	%
Tangible equity to tangible assets - Non-GAAP basis:
Tangible equity:
Total stockholders' equity		$	99,487			$	109,897			$	105,846			$	108,685			$	105,740
Less:
Goodwill and other intangible assets			339				339				339				339				339
Total tangible common equity (numerator)		$	99,148			$	109,558			$	105,507			$	108,346			$	105,401
Tangible assets:
Total assets			1,515,041				1,525,672				1,517,317				1,517,200				1,481,176
Less:
Goodwill and other intangible assets			339				339				339				339				339
Total tangible assets (denominator)		$	1,514,702			$	1,525,333			$	1,516,978			$	1,516,861			$	1,480,837
Tangible equity to tangible assets			6.55	%			7.18	%			6.96	%			7.14	%			7.12	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261016113326/en/

Allison Johnson
Chief Executive Officer & Chief Financial Officer
814-262-4010
ajohnson@1stsummit.bank

Source: 1st Summit Bancorp of Johnstown, Inc.