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

Rhea-AI Summary

1st Summit Bancorp (OTC: FSMK) reported Q4 2024 net income of $3.2 million, or $1.48 per share, compared to $750,000, or $0.34 per share in Q4 2023. The results include a non-recurring gain from a sale leaseback transaction. Net interest margin expanded to 1.82% (1.91% tax-equivalent) following a 50bps interest rate cut in September.

The bank added $14.9 million in loans during Q4, representing a 7.69% annualized increase. The deposit base remained stable with continued growth in non-interest bearing deposits. Credit quality remains strong, and the bank maintains robust capital levels to support future growth.

Excluding nonrecurring items, net income for both Q4 and full-year 2024 remained effectively flat. Management plans to focus on growing noninterest income and reducing noninterest expenses throughout 2025.

Positive

• Net income increased significantly to $3.2 million in Q4 2024 from $750,000 in Q4 2023
• Loan portfolio grew by $14.9 million (7.69% annualized) in Q4
• Net interest margin expanded to 1.82% from previous quarter
• Strong credit quality maintained
• Stable deposit base with growth in non-interest bearing deposits

Negative

• Core earnings (excluding non-recurring items) remained flat year-over-year
• Challenging profitability environment due to high interest rates

JOHNSTOWN, Pa.--(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	%

 

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

Allison Johnson

Chief Financial Officer

AJohnson@1stSummit.Bank

(814) 262-4000

Source: 1st Summit Bancorp of Johnstown, Inc.

FAQ

What was FSMK's earnings per share in Q4 2024?

FSMK reported earnings of $1.48 per share in Q4 2024, compared to $0.34 per share in Q4 2023.

How much did FSMK's loan portfolio grow in Q4 2024?

FSMK added $14.9 million in loans during Q4 2024, representing a 7.69% annualized increase.

What was FSMK's net interest margin in Q4 2024?

FSMK's net interest margin was 1.82%, or 1.91% on a tax-equivalent basis in Q4 2024.

How did FSMK's Q4 2024 net income compare to Q4 2023?

FSMK's net income increased to $3.2 million in Q4 2024 from $750,000 in Q4 2023.

What was FSMK's total deposit balance at the end of Q4 2024?

FSMK's total deposits were $1.204 billion as of December 31, 2024.