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

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250207682157/en/