1st Summit Bancorp of Johnstown Announces Third Quarter 2026 Results

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.