JOHNSTOWN: 1st Summit Bancorp of Johnstown on Friday reported its highest quarterly earnings in recent years, fueled by a sharp rise in profitability metrics, stronger asset yields and tighter expense management. The Company posted net income of $1.2 million for the second quarter ended June 30, 2025, a 50.8% increase over the prior quarter and nearly quadruple the result from Q2 2024.
“This quarter represents a meaningful milestone in our journey toward sustainable, high-quality earnings growth,” said Allison Johnson, president and CEO. “We’re seeing the early fruits of strategic initiatives focused on funding optimization, asset mix recalibration, and credit quality preservation.”
Adjusted net income totaled $1.3 million, excluding $318,000 in nonrecurring expenses related to severance and a debit card platform conversion, and $142,000 in securities gains.
Return on average assets rose to 0.33% from 0.22% in Q1, while return on average equity increased to 4.92% from 3.26%. Net interest margin expanded to 2.18%, up from 2.02% in the previous quarter and 1.70% a year ago, as management moved away from high-cost funding sources and toward more profitable assets.
The Company’s loan portfolio grew at an annualized rate of 11.83% during the quarter. Deposits contracted 1.04% on an annualized basis, largely attributed to seasonal tax outflows, resulting in a loan-to-deposit ratio of 68.8% at quarter’s end.
Noninterest income rose nearly 10% to $2.3 million. Operating expenses held steady at $8.3 million, while provisions for loan losses totaled $125,000, with no material charge-offs.
“We believe our second-quarter performance showcases the caliber of our execution and sets the tone for continued progress,” Johnson said. “Looking ahead, we remain focused on optimizing our balance sheet, deepening customer relationships and creating long-term value for shareholders.”