Consistent earnings, strong organic loan and deposit growth, disciplined credit performance, and solid capital position support continued execution

1ST SUMMIT BANCORP OF JOHNSTOWN today announced financial results for the quarter ended December 31, 2025.

Net income for the fourth quarter totaled $1.7 million, consistent with the prior quarter, as the Company took steps to intentionally control growth while further strengthening its core earnings profile. Results for the quarter reflect stability across key performance metrics, including net income, following the balance sheet repositioning that occurred earlier in 2025.

Organic loan growth remained a key highlight for the quarter, with loans increasing 14.1% on an annualized basis compared to 7.3% in the third quarter of 2025. Growth was driven by continued demand across core commercial relationships. While we anticipate that loan demand may increase due to lower benchmark interest rates, we do not intend to change underwriting guidelines or originate loans outside of our risk appetite.

With respect to deposits, despite a declining rate environment and heightened competitive pricing pressure, total deposits grew 2.3% annualized compared to 4.3% annualized growth in the third quarter of 2025, reflecting continued success in retaining and expanding the deposit base through disciplined pricing, relationship banking, and customer engagement. Growing core deposits will be a significant focus in 2026 and beyond as we look to increase market share in our existing footprint by strengthening the tools and products available to our consumer and business customers.

Net interest margin expanded an additional 4 basis points during the quarter to 2.38%, primarily due to disciplined funding strategies and continued improvement in balance sheet mix. The loan-to-deposit ratio increased to 73.2%, reflecting our efforts to continue to efficiently deploy funds while maintaining sufficient liquidity. Return on average assets improved to 0.45%, and return on average equity increased to 6.33% for the quarter.

Credit Quality Remains Strong

Credit quality remained strong during the fourth quarter. The Company did not experience a meaningful increase in problem or non-accrual loans, and there were no significant charge-offs during the period. The quality of our loan portfolio continues to reflect conservative underwriting standards and strong collateral positions across loan categories.

Management continues to take a cautious and forward-looking approach to credit. Underwriting decisions remain focused not only on current loan demand, but also on the underlying financial strength of borrowers, collateral protection, and broader economic conditions within the Bank’s markets. As economic conditions evolve, the Company will remain diligent in monitoring credit trends and adjusting underwriting practices, as appropriate, in an effort to preserve asset quality.

Liquidity and Capital Position

The Company ended the quarter with a strong liquidity and capital position, providing meaningful flexibility as it enters 2026. Core funding remains stable, with diversified deposit sources and manageable loan-to-deposit levels supporting ongoing balance sheet activity. Capital ratios remain comfortably above regulatory requirements, positioning the Company to pursue measured, high-quality growth while continuing to absorb normal market and economic variability.

Management expects to selectively deploy excess liquidity through organic loan growth and the reinvestment of securities portfolio paydowns and maturities, while maintaining balance sheet resilience and disciplined risk management.

“Our fourth quarter results reflect the changes in business strategy and balance sheet restructuring that we implemented earlier in 2025,” said Allison Johnson, President and Chief Executive Officer. “After two quarters of rapid improvement in profitability and balance sheet positioning, we are pleased to report stabilized earnings for the second half of the year.”

Johnson continued, “Our first objective was to establish a reliable core earnings run rate supported by quality assets and disciplined funding. With that goal achieved, we now turn our attention to the next phase, process improvement, cost control, and continued optimization of asset mix. As securities cash flows turn over, we intend to redeploy paydowns and maturities into high-quality loan opportunities as market conditions allow.”

“Recent rate cuts provide a constructive backdrop,” Johnson added. “We expect any declining funding costs to act as a tailwind in the coming quarters, but we will remain selective. Growth for its own sake is not the objective. Margin preservation, efficiency gains, and credit quality will continue to guide our decisions.”

Johnson concluded, “Consistent results should not be mistaken for a lack of ambition or momentum, these results reflect discipline. As we enter the year ahead, we intend to continue to focus on enhanced liquidity, capital strength and creating value for our shareholders.”

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 https://www.1stsummit.bank for more information.

Cautionary Statement Regarding 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 and our ability to successfully implement our strategic plan, (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/about-us/meet-1st-summit/investor-information/.

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.

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