1st Summit Reports More Than 29% Growth in Core Earnings as Strategic Initiatives Continue to Drive Profitability
JOHNSTOWN, Pa., July 14, 2026--(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.