1st Summit Bancorp of Johnstown Reports First Quarter 2025 Financial Results

1st Summit Bancorp of Johnstown (OTC: FSMK) (“1^st Summit”), the parent company of 1^st Summit Bank (the “Bank”) today announced financial results for the first quarter ended March 31, 2025.

Financial Highlights:

• Net Income: The Company reported net income of $775 thousand for the first quarter of 2025, or $0.36 per diluted share, representing a 28.0% increase compared to the December 2024 quarter after excluding a non-recurring gain after tax from a sale-leaseback transaction completed in the fourth quarter of 2024.
• Loan Growth: Total loans increased by 1.01% during the quarter, representing an annualized growth rate of 4.08%.
• Net Interest Margin: The net interest margin expanded by 38 basis points, from 1.64% at March 31, 2024 to 2.02% at March 31, 2025, or 23.2%, from the prior year quarter.
• Deposits: Total deposits declined by 5.8%% annualized from December 31, 2024 to March 31, 2025; however, the proportion of noninterest-bearing deposits increased to 10.3% of total deposits, up from 9.5% at December 31, 2024.

CEO Commentary:

Allison Johnson, President and Chief Executive Officer, stated:

"The first quarter of 2025 reflects our unwavering commitment to strengthening 1st Summit Bancorp's financial foundation. We achieved solid loan growth and a notable expansion in net interest margin, underscoring the effectiveness of our strategic initiatives."

"During the first quarter, we successfully resolved a significant impaired loan, which allowed us to release previously established reserves. This contributed to a reduction in our allowance for loan losses and a lower reserve coverage ratio. This highlights our proactive approach to credit risk management."

"We are responding proactively to the current interest rate environment to actively rebalance our asset and liability mix in an effort to enhance profitability. Our focus includes capitalizing on funding opportunities near the middle of the yield curve, which have been under pressure due to the expected impact of tariffs, and reducing our reliance on overnight funding, which is significantly more expensive at current rates. The duration of the funding we are procuring aligns well with maturities of long duration assets that will begin to mature in the middle of 2026."

"While we experienced a decline in total deposits, the improvement in our deposit mix—specifically, the increase in noninterest-bearing deposits—is a positive development. This shift aligns with our strategic emphasis on expanding commercial and industrial lending, which often brings associated operating account deposits. By deepening relationships with our business clients, we aim to further enhance our deposit composition and overall financial performance."

"Looking ahead, we remain optimistic about our growth prospects. Our focus is on delivering value to our shareholders through prudent financial management and exceptional customer service. We believe that our strategic initiatives position us well to capitalize on future opportunities."

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.

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 the quality or composition of our loan and investment portfolios; (iii) adequacy of loan loss reserves; (iv) increased competition; (v) recent changes in the composition of our executive management team and the 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, regulatory or technological factors affecting our operations, markets, products, services, and prices; (xii) our ability to successfully execute our strategic plan and implement effective balance sheet strategies; (xiii) our ability to effectively manage liquidity; (xiv) the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; and (xv) 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-1^stsummit/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.

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