1st Summit Bancorp Johnstown, Inc.OTC: FSMK

1st Summit Bancorp of Johnstown, Inc. Reports Fourth Quarter Earnings

Feb 11, 2025 · Issued by 1st Summit Bancorp Johnstown, Inc. via Business Wire

1st Summit Bancorp of Johnstown, Inc. (OTC: FSMK) (“1st Summit”), the parent company of 1st Summit Bank (the “Bank”) today reported net income available to common shareholders for the quarter ended December 31, 2024, of $3.2 million, or $1.48 per common share, compared to net income of $750 thousand, or $0.34 per common share for the quarter ended December 31, 2023.

“We are pleased to report fourth quarter financial results and close the book on an extremely challenging year,” President and CEO J. Eric Renner said. “Our dedicated team has worked tirelessly to combat eroding profitability caused by persistently higher interest rates. We made many difficult decisions throughout 2024 to ensure that once benchmark interest rates begin to decline meaningfully, we can return to previous levels of profitability. We would like to thank our dedicated staff and patient and persistent investors who have shown tremendous resilience and fortitude.”

Renner continued, “Net income for the fourth quarter was $3.2 million or $1.48 per common share which includes a non-recurring gain on a sale leaseback transaction. Excluding nonrecurring items, net income for the fourth quarter and full year 2024 were effectively flat. Net interest margin for the quarter expanded to 1.82%, or 1.91% on a tax equivalent basis as we realized the full quarter of the 50bps interest rate cut in September. During the fourth quarter we added $14.9 million in loans which represents an increase of 7.69% annualized. Our deposit base remains stable and we continue to see steady growth in non-interest bearing deposits.”

Renner concluded, “Credit quality remains strong and we will continue to focus on adding quality earning assets to the balance sheet funded at rates that support net interest margin expansion. Throughout 2025 we will look for opportunities to grow noninterest income and reduce noninterest expense wherever possible. Our capital levels are strong and provide a source of strength to fuel future growth.”

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, (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 https:// www.1stsummit.bank/home/who-we-are/meet-1st-summit/investor-info/.

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
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
				(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans	$	10,117		$	10,316		$	9,811		$	9,736		$	9,378
Interest and dividends on investment securities		3,594			3,439			3,632			3,650			3,587
Other interest income		232			79			38			10			12
Total interest income		13,943			13,834			13,481			13,396			12,977
Interest expense:
Interest on deposits		7,139			7,550			7,187			6,857			6,481
Interest on FHLB advances and other borrowings		828			737			857			1,191			1,134
Total interest expense		7,967			8,287			8,044			8,048			7,615
Net interest income		5,976			5,547			5,437			5,348			5,362
Provision for loan losses		86			(362	)		362			-			148
Net interest income after provision for loan losses		5,890			5,909			5,075			5,348			5,214
Noninterest income:
Service charges and fees		621			637			625			649			712
Wealth management income		566			640			549			544			521
Earnings on bank-owned life insurance		253			30			394			159			160
Interchange income		489			545			703			535			558
Gain (loss) on sales of investment securities		(24	)		173			20			-			-
Change in fair value of equity securities		(19	)		(202	)		(213	)		(74	)		884
Gain on sale leaseback		3,269			-			-			-			-
Other noninterest income		584			457			61			36			41
Total noninterest income		5,739			2,280			2,139			1,849			2,876
Noninterest expense:
Salaries and employee benefits		4,423			4,488			3,912			4,524			4,175
Occupancy and equipment expenses		966			960			944			951			838
Professional services		324			266			545			529			371
Data processing and network		861			874			851			860			895
Regulatory assessments and insurance		171			171			165			165			126
Shares tax expense		229			227			231			227			224
Other operating expenses		1,003			1,102			682			937			933
Total noninterest expense		7,977			8,088			7,330			8,193			7,562
Income before income tax expense		3,652			101			(116	)		(996	)		528
Income tax expense		464			(193	)		(446	)		(377	)		(222	)
Net income	$	3,188		$	294		$	330		$	(619	)	$	750


Earnings per common share:
Basic	$	1.48		$	0.13		$	0.15		$	(0.28	)	$	0.34
Diluted		1.48			0.13			0.15			(0.28	)		0.34


1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Consolidated Balance Sheets
(Unaudited)

	As of

	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(Dollars in thousands)
Assets:
Cash and due from banks	$	10,666		$	11,921		$	12,138		$	8,582		$	12,893
Interest-bearing deposits in other banks		7,310			31,228			3,142			1,344			455
Total cash and cash equivalents		17,976			43,149			15,280			9,926			13,348
Investment securities:
Equity securities		655			669			2,022			7,130			7,191
Available for sale securities, at fair value		329,949			268,342			286,193			293,456			291,435
Held to maturity securities, at amortized cost		216,894			222,077			227,292			232,084			236,798
Total investment securities		547,498			491,088			515,507			532,670			535,424
Loans:
Loans held for investment		782,768			767,887			770,460			764,739			762,411
Less: allowance for loan and lease losses		(7,160	)		(7,268	)		(8,028	)		(7,835	)		(7,871	)
Loans, net		775,608			760,619			762,432			756,904			754,540
Operating lease right-of-use assets		9,202			2,744			2,905			3,084			3,215
Premises and equipment, net		11,919			14,006			14,226			14,408			14,599
Accrued interest receivable		5,126			4,614			5,058			5,014			4,995
Goodwill		339			339			339			339			339
Deferred tax asset, net		10,888			8,117			9,094			8,695			9,423
Bank-owned life insurance		24,678			24,734			24,705			24,536			24,376
Federal Home Loan Bank and other bank stock, at cost		4,665			2,153			2,935			3,325			4,003
Other assets		7,264			5,000			9,954			9,463			7,455
Total assets	$	1,415,163		$	1,356,563		$	1,362,435		$	1,368,364		$	1,371,717
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing	$	114,898		$	112,937		$	110,249		$	119,995		$	117,464
Interest-bearing		649,837			648,074			645,996			648,107			649,749
Total transaction accounts		764,735			761,011			756,245			768,102			767,213
Time deposits		439,378			443,992			440,867			429,778			418,343
Total deposits		1,204,113			1,205,003			1,197,112			1,197,880			1,185,556
Accrued interest payable		4,528			4,284			4,136			3,489			3,301
Short-term borrowings		30,000			-			29,363			52,885			59,291
Long-term borrowings		66,186			36,186			26,186			6,186			12,186
Operating lease liability		9,428			2,814			2,978			3,160			3,293
Other liabilities		6,947			6,028			6,221			6,212			6,603
Total liabilities		1,321,202			1,254,315			1,265,996			1,269,812			1,270,230
Stockholders' Equity:
Common stock		11,015			11,015			11,015			11,015			11,015
Capital surplus		5,825			5,825			5,825			5,825			5,825
Retained earnings		113,223			110,963			111,611			112,223			113,784
Accumulated other comprehensive income (loss)		(32,825	)		(23,626	)		(31,208	)		(29,707	)		(28,333	)
Treasury stock		(3,277	)		(1,929	)		(804	)		(804	)		(804	)
Total stockholders' equity		93,961			102,248			96,439			98,552			101,487
Total liabilities and stockholders' equity	$	1,415,163		$	1,356,563		$	1,362,435		$	1,368,364		$	1,371,717

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Loan Composition
(Unaudited)

	As of
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
	(Dollars in thousands)
Loans:
Commercial and industrial loans	$	138,555	$	135,290	$	140,042	$	139,012	$	139,962
Real estate:
1-4 single family residential loans		401,246		398,383		397,495		397,325		392,421
Construction, land and development loans		16,878		15,388		18,679		18,881		21,386
Commercial real estate loans (including multifamily)		207,393		192,816		188,264		186,271		180,572
Consumer loans and leases		18,696		26,010		25,980		23,250		28,070
Total loans held in portfolio	$	782,768	$	767,887	$	770,460	$	764,739	$	762,411

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Deposit Composition
(Unaudited)

	As of
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
	(Dollars in thousands)
Deposits:
Noninterest-bearing demand deposits	$	114,898	$	112,937	$	110,249	$	119,995	$	117,464
Interest-bearing demand deposits		303,631		301,924		279,364		276,105		309,746
Savings and money market accounts		346,206		346,150		366,632		372,002		340,003
Time deposits		439,378		443,992		440,867		429,778		418,343
Total deposits	$	1,204,113	$	1,205,003	$	1,197,112	$	1,197,880	$	1,185,556

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Average Balances and Yields
(Unaudited)

	Three Months Ended
	December 31, 2024						December 31, 2023
	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	$	15,721	$	232	5.85	%	$	699	$	12	6.81	%
Loans(2)		772,663		10,117	5.19	%		758,527		9,378	4.91	%
Investment securities and other		511,726		3,594	2.79	%		512,556		3,587	2.78	%
Total interest-earning assets		1,300,110		13,943	4.25	%		1,271,782		12,977	4.05	%
Noninterest-earning assets		70,787						79,468
Total assets	$	1,370,897					$	1,351,250
Interest-bearing liabilities:
Interest-bearing demand deposits	$	284,010	$	615	0.86	%	$	304,255	$	434	0.57	%
Savings and money market accounts		354,686		2,172	2.43	%		332,277		2,291	2.74	%
Time deposits		443,999		4,352	3.89	%		413,183		3,756	3.61	%
FHLB advances and other borrowings		59,117		828	5.56	%		80,474		1,134	5.59	%
Total interest-bearing liabilities		1,141,812		7,967	2.77	%		1,130,189		7,615	2.67	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		120,768						122,277
Other liabilities		11,141						12,058
Stockholders' equity		97,176						86,726
Total liabilities and stockholders' equity	$	1,370,897					$	1,351,250
Net interest rate spread					1.49	%					1.38	%
Net interest income and margin			$	5,976	1.82	%			$	5,362	1.67	%
Net interest income and margin (tax equivalent)(3)			$	6,264	1.91	%			$	5,675	1.77	%

(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 December 31, 2024 and December 31, 2023, respectively.

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Average Balances and Yields
(Unaudited)

	Three Months Ended
	December 31, 2024						September 30, 2024
	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		15,721	$	232	5.85	%	$	10,858	$	79	2.89	%
Loans(2)		772,663		10,117	5.19	%		768,710		10,316	5.32	%
Investment securities and other		511,726		3,594	2.79	%		508,886		3,439	2.68	%
Total interest-earning assets		1,300,110		13,943	4.25	%		1,288,454		13,834	4.26	%
Noninterest-earning assets		70,787						70,712
Total assets	$	1,370,897					$	1,359,166
Interest-bearing liabilities:
Interest-bearing demand deposits	$	284,010	$	615	0.86	%	$	278,991	$	587	0.83	%
Savings and money market accounts		354,686		2,172	2.43	%		366,216		2,537	2.75	%
Time deposits		443,999		4,352	3.89	%		441,588		4,426	3.98	%
FHLB advances and other borrowings		59,117		828	5.56	%		48,244		737	6.06	%
Total interest-bearing liabilities		1,141,812		7,967	2.77	%		1,135,039		8,287	2.90	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		120,768						117,477
Other liabilities		11,141						7,736
Stockholders' equity		97,176						98,914
Total liabilities and stockholders' equity	$	1,370,897					$	1,359,166
Net interest rate spread					1.49	%					1.36	%
Net interest income and margin			$	5,976	1.82	%			$	5,547	1.71	%
Net interest income and margin (tax equivalent)(3)			$	6,264	1.91	%			$	5,853	1.80	%

(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 December 31, 2024 and September 30, 2024, 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
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income	$	5,976		$	5,547		$	5,437		$	5,348		$	5,362
Average interst-earning assets		1,300,110			1,288,454			1,296,727			1,304,225			1,271,782
Net interest margin		1.82	%		1.71	%		1.68	%		1.64	%		1.67	%
Net interest margin - Non-GAAP basis:
Net interest income	$	5,976		$	5,547		$	5,437		$	5,348		$	5,362
Plus:
Impact of fully taxable equivalent adjustment		288			306			312			312			313
Net interest income on a fully taxable equivalent basis	$	6,264		$	5,853		$	5,749		$	5,660		$	5,675
Average interest-earning assets		1,300,110			1,288,454			1,296,727			1,304,225			1,271,782
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis		1.91	%		1.80	%		1.78	%		1.74	%		1.77	%

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share
(Unaudited)

	As of
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
	(Dollars in thousands, except per share data)
Total stockholders' equity	$	93,961	$	102,248	$	96,439	$	98,552	$	101,487
Less:
Goodwill and other intangible assets		339		339		339		339		339
Tangible stockholders' equity	$	93,622	$	101,909	$	96,100	$	98,213	$	101,148
Shares outstanding		2,135,540		2,165,510		2,190,510		2,190,510		2,190,510
Book value per share	$	44.00	$	47.22	$	44.03	$	44.99	$	46.33
Less:
Goodwill and other intangible assets per share	$	0.16	$	0.16	$	0.15	$	0.15	$	0.15
Tangible book value per share	$	43.84	$	47.06	$	43.88	$	44.84	$	46.18

1ST SUMMIT BANCORP OF JOHNSTOWN, INC.
Reconciliation of Non-GAAP Financial Measures - Tangible Equity to Tangible Assets
(Unaudited)

	As of
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(Dollars in thousands)
Total stockholders' equity to total assets - GAAP basis:
Total stockholders' equity (numerator)	$	93,961		$	102,248		$	96,439		$	98,552		$	101,487
Total assets (denominator)		1,415,163			1,356,563			1,362,435			1,368,364			1,371,717
Total stockholders' equity to total assets		6.64	%		7.54	%		7.08	%		7.20	%		7.40	%
Tangible equity to tangible assets - Non-GAAP basis:
Tangible equity:
Total stockholders' equity	$	93,961		$	102,248		$	96,439		$	98,552		$	101,487
Less:
Goodwill and other intangible assets		339			339			339			339			339
Total tangible common equity (numerator)	$	93,622		$	101,909		$	96,100		$	98,213		$	101,148
Tangible assets:
Total assets		1,415,163			1,356,563			1,362,435			1,368,364			1,371,717
Less:
Goodwill and other intangible assets		339			339			339			339			339
Total tangible assets (denominator)	$	1,414,824		$	1,356,224		$	1,362,096		$	1,368,025		$	1,371,378

Tangible equity to tangible assets		6.62	%		7.51	%		7.06	%		7.18	%		7.38	%

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