Document
EXHIBIT 99.1
CB Financial Services, Inc.
Announces Fourth Quarter and Full Year 2025 Financial Results and
Declares Quarterly Cash Dividend Increase of 8%
WASHINGTON, PA., January 27, 2026 -- CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”), today announced its fourth quarter and 2025 financial results.
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | ||||||||||||||||||||
| (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 4,742 | $ | (5,696) | $ | 3,949 | $ | 1,909 | $ | 2,529 | $ | 4,903 | $ | 12,594 | ||||||||||||
Net Income Adjustments | (943) | 9,623 | — | 808 | (562) | 9,489 | (1,830) | |||||||||||||||||||
Adjusted Net Income (Non-GAAP) (1) | $ | 3,799 | $ | 3,927 | $ | 3,949 | $ | 2,717 | $ | 1,967 | $ | 14,392 | $ | 10,764 | ||||||||||||
| Earnings (Loss) per Common Share - Diluted (GAAP) | $ | 0.89 | $ | (1.07) | $ | 0.74 | $ | 0.35 | $ | 0.46 | $ | 0.92 | $ | 2.38 | ||||||||||||
Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1) | $ | 0.72 | $ | 0.74 | $ | 0.74 | $ | 0.50 | $ | 0.35 | $ | 2.71 | $ | 2.03 | ||||||||||||
| Income (Loss) Before Income Tax Expense (GAAP) | $ | 5,270 | $ | (7,020) | $ | 4,715 | $ | 2,336 | $ | 3,051 | $ | 5,300 | $ | 15,343 | ||||||||||||
| Net Provision (Recovery) for Credit Losses | 362 | 259 | 8 | (40) | 683 | 589 | 570 | |||||||||||||||||||
Pre-Provision Net Revenue (“PPNR”) | $ | 5,632 | $ | (6,761) | $ | 4,723 | $ | 2,296 | $ | 3,734 | $ | 5,889 | $ | 15,913 | ||||||||||||
| Net Income Adjustments | (765) | 11,752 | — | 1,023 | (711) | 12,011 | (2,086) | |||||||||||||||||||
Adjusted PPNR (Non-GAAP) (1) | $ | 4,867 | $ | 4,991 | $ | 4,723 | $ | 3,319 | $ | 3,023 | $ | 17,900 | $ | 13,827 | ||||||||||||
(1) Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of adjusted net income and adjusted earnings per common share - diluted as presented later in this Press Release.
2025 Fourth Quarter Financial Highlights
•Total assets were $1.55 billion at December 31, 2025, an increase of $2.2 million from September 30, 2025. Cash balances and an increase in deposits funded strong commercial and industrial, commercial real estate and construction loan production and investment security purchases. The Bank continues to focus efforts on repositioning the balance sheet to maximize earnings while maintaining its historic risk profile. These strategic movements include:
◦Effectively managing cash and liquidity.
◦Redeploying repayments of indirect automobile and residential mortgage loans into higher-yielding commercial loan products. Commercial loans totaled 61.3% of the Bank’s loan portfolio at December 31, 2025 compared to 54.7% at December 31, 2024.
◦Changing the Bank’s deposit mix by focusing on growth in lower cost core deposit relationships and reducing reliance on higher priced funding.
•Net interest margin (NIM) improved to 3.76% for the three months ended December 31, 2025 compared to 3.64% for the three months ended September 30, 2025. Main factors impacting the improved NIM included:
◦An increase in the yield on earning assets to 5.48% from 5.41%. This was primarily due to the Bank implementing a balance sheet repositioning strategy of its portfolio of available-for-sale investment securities during the quarter ended September 30, 2025, in which $129.6 million in book value of lower-yielding investment securities with an average yield of 2.87% were sold for an $11.8 million loss ($9.3 million after-tax). Investment securities sold included $121.1 million of mortgage-backed securities/collateralized mortgage obligations issued by the U.S. government-sponsored agencies, $5.0 million of U.S. government agency securities and $3.5 million of municipal securities. The Bank then purchased $117.8 million of higher-yielding mortgage-backed securities/collateralized mortgage obligations issued by U.S government-sponsored agencies, municipal securities, subordinated debt investments and non-agency guaranteed securitizations with an expected tax-equivalent yield of approximately
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EXHIBIT 99.1
5.43%. This strategy is expected to add nearly 19 basis points to net interest margin and approximately $0.40 to annual earnings per share. The positive impact of the balance sheet repositioning strategies have offset the effect of recent target federal funds rate cuts on asset repricing.
◦A reduction in the cost of funds to 1.78% from 1.86% resulting from the favorable change in the Bank’s deposit mix coupled with disciplined deposit pricing and the recent reductions in the target federal funds rate.
•Noninterest expenses increased $740,000 to $9.9 million for the three months ended December 31, 2025 compared to $9.2 million for the three months ended September 30, 2025. This increase was driven by increases in salaries and employee benefits resulting primarily from additions to the Bank’s Treasury personnel, contracted services due to compensation consulting and loan review services and data processing due to the implementation of enhanced treasury and commercial banking platforms.
•Asset quality remains strong as nonperforming loans to total loans was 0.46% at December 31, 2025.
•Book value per share and tangible book value per share (Non-GAAP) was $31.28 and $29.35, respectively at December 31, 2025. The improvements since year-end 2024 resulted from increased equity due to the decrease in accumulated other comprehensive losses resulting from the securities repositioning strategy and current period net income, partially offset by treasury shares repurchased under the Company’s stock repurchase program and the payment of dividends.
•The Bank remains well-capitalized and is positioned for future growth.
Management Commentary
President and CEO John H. Montgomery commented, “We delivered solid fourth quarter results, benefiting from net interest margin expansion and the balance sheet optimization efforts completed in the prior quarter. Our loan portfolio expanded with strong growth in relationship-driven commercial lending, while we achieved healthy deposit growth and an improved deposit mix through our continued focus on building strong core banking relationships. Net interest margin expansion was driven primarily by a reduced cost of funds, reflecting a more favorable deposit mix, disciplined deposit pricing and recent federal funds rate cuts. Additionally, the yield on earning assets increased, supported by our balance sheet repositioning, which effectively mitigated the effects of rate reductions on asset repricing.
Given economic uncertainties, we remain committed to prudent financial management through a cautious approach to our balance sheet and rigorous oversight of our lending operations. Since year-end 2024, total loans have increased by $69.6 million, or 6.4%, with commercial real estate and commercial and industrial loans as the main drivers of expansion. This growth is somewhat tempered by reductions in consumer, construction and residential real estate lending segments. The uptick in borrowing activity we observed during the quarter was promising, with loan production totaling $204.6 million against $97.6 million in payoffs over the past year. Our asset quality continues to be strong, with nonperforming loans representing 0.46% of total loans and allowance for credit losses covering 190.5% of nonperforming assets at quarter-end. These results reflect our ongoing commitment to stringent risk assessment and high lending standards.
During the fourth quarter, we completed the build out of our Specialty Treasury Payments & Services program, a key pillar of our long-term strategy to drive sustainable revenue growth and expand our core deposit base. With the necessary treasury products, talent, and technology infrastructure now in place, the program is fully deployed. While onboarding new customers will take time, we anticipate meaningful progress during the first quarter. We view this as a high-value investment that we expect will enhance our franchise's strength, efficiency and scalability while generating significant revenue growth over time.
As part of our growth strategy for 2026, we're investing in building out our mortgage lending group to capture greater market share in this important product category. Expanding our mortgage capabilities in our primary market will enhance customer relationships, diversify our revenue streams and create new cross-selling opportunities. We are committed to becoming a leader in the mortgage market, and this initiative aligns with our relationship-banking model and extends our core deposit and lending capabilities.
As we look ahead to 2026, we remain confident in our strategic direction and believe we are well-positioned to sustain momentum and drive continued earnings growth.”
Dividend Declaration
The Company’s Board of Directors has approved a 7.7% increase in the regular quarterly dividend by declaring a $0.28 quarterly cash dividend per outstanding share of common stock, payable on or about February 27, 2026, to stockholders of record as of the close of business on February 13, 2026.
2025 Fourth Quarter Financial Review
Net Interest and Dividend Income
Net interest and dividend income increased $2.3 million, or 19.9%, to $13.8 million for the three months ended December 31, 2025 compared to $11.5 million for the three months ended December 31, 2024.
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•Net Interest Margin (NIM) (GAAP) increased to 3.76% for the three months ended December 31, 2025 compared to 3.12% for the three months ended December 31, 2024. Fully tax equivalent (FTE) NIM (Non-GAAP) increased 67 basis points (“bps”) to 3.80% for the three months ended December 31, 2025 compared to 3.13% for the three months ended December 31, 2024.
•Interest and dividend income increased $561,000, or 2.9%, to $20.0 million for the three months ended December 31, 2025 compared to $19.4 million for the three months ended December 31, 2024.
◦Interest income on loans increased $1.1 million, or 7.7%, to $16.1 million for the three months ended December 31, 2025 compared to $14.9 million for the three months ended December 31, 2024. The average balance of loans increased $72.4 million to $1.14 billion from $1.07 billion, causing an $1.1 million increase in interest income on loans. Additionally, the average yield on loans increased 3 bps to 5.62% from 5.59% despite a 100 bp reduction in the federal funds rate since December 2024. While this led to the downward repricing of adjustable rate loans, the impact was negated by a reduction in lower yielding consumer loans due to the discontinuation of the indirect automobile loan product with the redeployment of those funds into higher yielding commercial loan products. The increase in the average yield caused a $81,000 increase in interest income on loans.
◦Interest income on investment securities increased $354,000, or 11.4%, to $3.5 million for the three months ended December 31, 2025 compared to $3.1 million for the three months ended December 31, 2024 driven by a 79 bp increase in average yields, partially offset by a $7.3 million decrease in average balances. These changes were primarily due to the securites repositioning strategy.
◦Interest income on interest-earning deposits at other banks decreased $954,000 to $384,000 for the three months ended December 31, 2025 compared to $1.3 million for the three months ended December 31, 2024 driven by a 95 bp decrease in the average yield and a $73.0 million decrease in average balances. The decrease in the yield was directly related to the Federal Reserve’s reductions in the target federal funds rate while the decrease in the volume was due to the funding of loans.
•Interest expense decreased $1.7 million, or 21.9%, to $6.2 million for the three months ended December 31, 2025 compared to $7.9 million for the three months ended December 31, 2024.
◦Interest expense on deposits decreased $1.7 million, or 22.6%, to $5.8 million for the three months ended December 31, 2025 compared to $7.5 million for the three months ended December 31, 2024. The cost of interest-bearing deposits declined 61 bps to 2.18% for the three months ended December 31, 2025 from 2.79% for the three months ended December 31, 2024 due to the change in the deposit mix and the recent Federal Reserve federal funds target rate decreases. The decrease in the cost of interest-bearing deposits accounted for a $1.6 million decrease in interest expense. Average interest-bearing deposit balances decreased $13.2 million, or 1.2%, to $1.05 billion as of December 31, 2025 compared to $1.07 billion as of December 31, 2024, primarily as the Bank strategically reduced time deposit only relationships. The decrease in average balances accounted for a $67,000 decrease in interest expense.
Provision for Credit Losses
A provision for credit losses of $362,000 was recorded for the three months ended December 31, 2025. The provision for credit losses on loans was $265,000 and was primarily due to additional reserves required for overall loan growth and charge-offs, partially offset by favorable changes in maximum loss rates utilized in the allowance model. Additionally, the provision for credit losses on unfunded commitments was $97,000 and was due to an increase in unfunded commitments. This compared to a provision for credit losses of $683,000 recorded for the three months ended December 31, 2024 as the provision for credit losses on loans was $483,000 primarily due to loan growth, increases in the loss rate and qualitative adjustments on construction and land development loans and an increase in qualitative adjustments on residential real estate loans, partially offset by a payoff of an impaired loan, and the provision for credit losses on unfunded commitments was $200,000 due to an increase in the loss rate on construction loans.
Noninterest Income
Noninterest income increased $74,000, or 4.5%, to $1.73 million for the three months ended December 31, 2025, compared to $1.66 million for the three months ended December 31, 2024 primarily due to a $125,000 increase in service fees related to corporate deposit and Individual Covered Health Reimbursement Arrangement accounts and a $40,000 gain on the sale of assets related to the sale of a Bank storage facility recognized during the three months ended December 31, 2025, partially offset by a $94,000 decrease in other income related to hedge fees.
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Noninterest Expense
Noninterest expense increased $470,000, or 5.0%, to $9.9 million for the three months ended December 31, 2025 compared to $9.5 million for the three months ended December 31, 2024. Salaries and benefits increased $584,000, or 11.1%, to $5.8 million primarily due to revenue producing staff additions, merit increases and higher incentive compensation costs, partially offset by savings realized due to the reduction in force implemented earlier this year. Other noninterest expense increased $85,000 due to increases in travel, conference and entertainment expenses related to sales activities and an increase in check fraud losses. Equipment expense increased $69,000 due to higher depreciation and maintenance expenses associated with interactive teller machines, security system upgrades and other equipment placed into service in late 2024. These increases were partially offset as intangible amortization decreased $88,000 as the Bank’s core deposit intangibles were fully amortized in 2024. Occupancy expense decreased $79,000 due to certain property management cost savings initiatives implemented in 2025. Data processing expense decreased $42,000 due to costs associated with the implementation of a new loan origination system and financial dashboard platform during mid-2024.
Statement of Financial Condition Review
Assets
Total assets increased $66.1 million, or 4.5%, to $1.55 billion at December 31, 2025, compared to $1.48 billion at December 31, 2024.
•Cash and due from banks decreased $17.9 million, or 36.1%, to $31.7 million at December 31, 2025, compared to $49.6 million at December 31, 2024, due to funding loan growth.
•Securities increased $17.7 million, or 6.8%, to $279.9 million at December 31, 2025, compared to $262.2 million at December 31, 2024. This was primarily due to the Bank implementing a balance sheet repositioning strategy of its portfolio of available-for-sale investment securities during the quarter ended September 30, 2025, in which $129.6 million in book value of lower-yielding investment securities with an average yield of 2.87% were sold for an $11.8 million loss ($9.3 million after-tax). Investment securities sold included $121.1 million of mortgage-backed securities/collateralized mortgage obligations issued by the U.S. government-sponsored agencies, $5.0 million of U.S. government agency securities and $3.5 million of municipal securities. The Bank then purchased $117.8 million of higher-yielding mortgage-backed securities/collateralized mortgage obligations issued by U.S government-sponsored agencies, municipal securities, subordinated debt investments and non-agency guaranteed securitizations with an expected tax-equivalent yield of approximately 5.43%. This strategy is expected to add nearly 19 basis points to net interest margin and approximately $0.40 to annual earnings per share.
Loans and Credit Quality
•Total loans increased $69.6 million, or 6.4%, to $1.2 billion compared to $1.1 billion, and included increases in commercial real estate and commercial and industrial loans of $66.7 million and $49.0 million, respectively, partially offset by decreases in consumer, construction and residential real estate loans of $27.6 million, $9.3 million and $8.8 million, respectively. The decrease in consumer loans resulted from a reduction in indirect automobile loan production due to the discontinuation of this product offering as of June 30, 2023. This portfolio is expected to continue to decline as resources are allocated and production efforts are focused on more profitable commercial products. Excluding the $29.6 million decrease in indirect automobile loans, total loans increased $99.3 million, or 9.6%. Loan production totaled $204.6 million while $97.6 million of loans were paid off since December 31, 2024.
•Nonperforming loans, which include nonaccrual loans and accruing loans past due 90 days or more, were $5.3 million at December 31, 2025 and $1.8 million at December 31, 2024. Nonperforming loans to total loans ratio was 0.46% at December 31, 2025 and 0.16% at December 31, 2024. The increase in nonperforming loans was due to the addition of two loan relationships to nonaccrual status during the year. The first relationship consists of three residential real estate loans totaling $2.1 million which are well-secured with first liens on multiple rental properties. The Bank has executed assignments of rents and leases, is in the process of foreclosure on the properties and currently does not expect to incur losses on the loans. The second is a $2.0 million commercial real estate loan fully secured by an owner-occupied distribution warehouse, which is currently under a sales agreement, and other assets of the borrower. The Bank is currently working with the borrower to achieve a successful resolution and expects to be repaid in full in 2026.
•The allowance for credit losses (ACL) was $10.1 million at December 31, 2025 and $9.8 million at December 31, 2024. As a result, the ACL to total loans was 0.87% at December 31, 2025 and 0.90% at December 31, 2024. During the current year, the Company recorded a net provision for credit losses of $589,000. The ACL to nonperforming assets was 190.5% at December 31, 2025 and 548.1% at December 31, 2024.
•Net charge-offs for the three months ended December 31, 2025 were $295,000, or 0.10% of average loans on an annualized basis. Net charge-offs for the three months ended December 31, 2024 were $157,000, or 0.06% of average loans on an annualized basis. Net charge-offs for the year ended December 31, 2025 were $223,000. Net charge-offs for the year ended December 31, 2024 were $281,000.
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Liabilities
Total liabilities increased $56.0 million, or 4.2%, to $1.4 billion at December 31, 2025 compared to $1.3 billion at December 31, 2024.
Deposits
•Total deposits increased $56.3 million, or 4.4%, to $1.34 billion as of December 31, 2025 compared to $1.28 billion at December 31, 2024. Interest-bearing demand, non interest-bearing demand and time deposits increased $40.4 million, $23.8 million and $15.6 million, respectively, while money market and savings deposits decreased $22.3 million and $1.2 million, respectively. This favorable change in the deposit mix occurred as the Bank continues to focus on building core banking relationships while strategically reducing higher priced funding. Brokered time deposits totaled $98.5 million as of December 31, 2025 and $39.0 million as of December 31, 2024, all of which mature within three months and were utilized to fund the purchase of floating rate CLO securities. At December 31, 2025, FDIC insured deposits totaled approximately 59.5% of total deposits while an additional 15.7% of total deposits were collateralized with investment securities.
Stockholders’ Equity
Stockholders’ equity increased $10.2 million, or 6.9%, to $157.5 million at December 31, 2025, compared to $147.4 million at December 31, 2024. The key factors positively impacting stockholders’ equity was a $13.8 million decrease in accumulated other comprehensive loss resulting primarily from the securities repositioning strategy, $2.6 million of shares issued as a result of stock option exercises and $4.9 million of net income for the current year, partially offset by $6.8 million of treasury shares purchased under the stock repurchase program and the payment of $5.1 million in dividends since December 31, 2024.
Book value per share
Book value per common share was $31.28 at December 31, 2025 compared to $28.71 at December 31, 2024, an increase of $2.57.
Tangible book value per common share (Non-GAAP) was $29.35 at December 31, 2025, compared to $26.82 at December 31, 2024, an increase of $2.53.
Refer to “Explanation of Use of Non-GAAP Financial Measures” at the end of this Press Release.
About CB Financial Services, Inc.
CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services.
For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.cb.bank.
Statement About Forward-Looking Statements
Statements contained in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions, changes in market interest rates, deposit flows, demand for loans, real estate values and competition, competitive products and pricing, the ability of our customers to make scheduled loan payments, loan delinquency rates and trends, our ability to manage the risks involved in our business, our ability to control costs and expenses, inflation, market and monetary fluctuations, changes in federal and state legislation and regulation applicable to our business, actions by our competitors, and other factors that may be disclosed in the Company’s periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.
Company Contact:
John H. Montgomery
President and Chief Executive Officer
Phone: (724) 223-8317
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CB FINANCIAL SERVICES, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||||
| (Dollars in thousands, except share and per share data) (Unaudited) | |||||||||||||||||||||||||||||
| Selected Financial Condition Data | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | ||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Cash and Due From Banks | $ | 31,693 | $ | 55,890 | $ | 64,506 | $ | 61,274 | $ | 49,572 | |||||||||||||||||||
| Securities | 279,895 | 272,559 | 267,171 | 258,699 | 262,153 | ||||||||||||||||||||||||
| Loans Held for Sale | — | 107 | 512 | 230 | 900 | ||||||||||||||||||||||||
| Loans | |||||||||||||||||||||||||||||
| Real Estate: | |||||||||||||||||||||||||||||
| Residential | 329,237 | 333,430 | 329,324 | 334,744 | 337,990 | ||||||||||||||||||||||||
| Commercial | 552,180 | 539,395 | 513,197 | 497,316 | 485,513 | ||||||||||||||||||||||||
| Construction | 45,419 | 38,905 | 40,680 | 54,597 | 54,705 | ||||||||||||||||||||||||
| Commercial and Industrial | 161,081 | 143,919 | 138,221 | 107,419 | 112,047 | ||||||||||||||||||||||||
| Consumer | 42,876 | 49,581 | 57,376 | 61,854 | 70,508 | ||||||||||||||||||||||||
| Other | 31,467 | 38,156 | 32,026 | 32,564 | 31,863 | ||||||||||||||||||||||||
| Total Loans | 1,162,260 | 1,143,386 | 1,110,824 | 1,088,494 | 1,092,626 | ||||||||||||||||||||||||
| Allowance for Credit Losses | (10,116) | (10,146) | (9,722) | (9,819) | (9,805) | ||||||||||||||||||||||||
| Loans, Net | 1,152,144 | 1,133,240 | 1,101,102 | 1,078,675 | 1,082,821 | ||||||||||||||||||||||||
| Premises and Equipment, Net | 19,646 | 19,896 | 20,223 | 20,392 | 20,708 | ||||||||||||||||||||||||
| Bank-Owned Life Insurance | 24,812 | 24,660 | 24,506 | 24,358 | 24,209 | ||||||||||||||||||||||||
| Goodwill | 9,732 | 9,732 | 9,732 | 9,732 | 9,732 | ||||||||||||||||||||||||
| Accrued Interest Receivable and Other Assets | 29,771 | 29,430 | 30,232 | 30,096 | 31,469 | ||||||||||||||||||||||||
| Total Assets | $ | 1,547,693 | $ | 1,545,514 | $ | 1,517,984 | $ | 1,483,456 | $ | 1,481,564 | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||
| Noninterest-Bearing Demand Accounts | $ | 291,745 | $ | 291,882 | $ | 278,685 | $ | 267,392 | $ | 267,896 | |||||||||||||||||||
| Interest-Bearing Demand Accounts | 357,134 | 365,976 | 353,448 | 341,212 | 316,764 | ||||||||||||||||||||||||
| Money Market Accounts | 209,166 | 206,166 | 225,141 | 228,005 | 231,458 | ||||||||||||||||||||||||
| Savings Accounts | 169,307 | 169,005 | 172,021 | 176,722 | 170,530 | ||||||||||||||||||||||||
| Time Deposits | 312,453 | 301,391 | 280,137 | 267,766 | 296,869 | ||||||||||||||||||||||||
| Total Deposits | 1,339,805 | 1,334,420 | 1,309,432 | 1,281,097 | 1,283,517 | ||||||||||||||||||||||||
| Other Borrowings | 34,758 | 34,748 | 34,738 | 34,728 | 34,718 | ||||||||||||||||||||||||
| Accrued Interest Payable and Other Liabilities | 15,593 | 23,881 | 25,452 | 19,342 | 15,951 | ||||||||||||||||||||||||
| Total Liabilities | 1,390,156 | 1,393,049 | 1,369,622 | 1,335,167 | 1,334,186 | ||||||||||||||||||||||||
| Stockholders’ Equity | 157,537 | 152,465 | 148,362 | 148,289 | 147,378 | ||||||||||||||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 1,547,693 | $ | 1,545,514 | $ | 1,517,984 | $ | 1,483,456 | $ | 1,481,564 | |||||||||||||||||||
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| (Dollars in thousands, except share and per share data) (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| Selected Operating Data | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | ||||||||||||||||
| Interest and Dividend Income: | |||||||||||||||||||||||
| Loans, Including Fees | $ | 16,077 | $ | 15,973 | $ | 15,492 | $ | 14,528 | $ | 14,930 | $ | 62,070 | $ | 59,383 | |||||||||
| Securities: | |||||||||||||||||||||||
| Taxable | 3,035 | 2,848 | 2,860 | 2,777 | 3,096 | 11,520 | 11,533 | ||||||||||||||||
| Tax-Exempt | 415 | 146 | — | — | — | 561 | — | ||||||||||||||||
| Dividends | 7 | 7 | 9 | 28 | 27 | 51 | 110 | ||||||||||||||||
| Other Interest and Dividend Income | 458 | 367 | 399 | 514 | 1,378 | 1,737 | 5,105 | ||||||||||||||||
| Total Interest and Dividend Income | 19,992 | 19,341 | 18,760 | 17,847 | 19,431 | 75,939 | 76,131 | ||||||||||||||||
| Interest Expense: | |||||||||||||||||||||||
| Deposits | 5,802 | 5,810 | 5,721 | 6,111 | 7,492 | 23,445 | 28,441 | ||||||||||||||||
| Short-Term Borrowings | — | 68 | 108 | 23 | — | 199 | — | ||||||||||||||||
| Other Borrowings | 364 | 364 | 391 | 402 | 407 | 1,520 | 1,622 | ||||||||||||||||
| Total Interest Expense | 6,166 | 6,242 | 6,220 | 6,536 | 7,899 | 25,164 | 30,063 | ||||||||||||||||
| Net Interest and Dividend Income | 13,826 | 13,099 | 12,540 | 11,311 | 11,532 | 50,775 | 46,068 | ||||||||||||||||
| Provision (Recovery) for Credit Losses - Loans | 265 | 336 | (136) | 68 | 483 | 534 | 379 | ||||||||||||||||
| Provision (Recovery) for Credit Losses - Unfunded Commitments | 97 | (77) | 144 | (108) | 200 | 55 | 191 | ||||||||||||||||
| Net Interest and Dividend Income After Net Provision (Recovery) for Credit Losses | 13,464 | 12,840 | 12,532 | 11,351 | 10,849 | 50,186 | 45,498 | ||||||||||||||||
| Noninterest Income: | |||||||||||||||||||||||
| Service Fees | 585 | 574 | 559 | 462 | 460 | 2,180 | 1,680 | ||||||||||||||||
| Insurance Commissions | 1 | 1 | 1 | 1 | 1 | 4 | 6 | ||||||||||||||||
| Other Commissions | 60 | 63 | 66 | 63 | 63 | 252 | 251 | ||||||||||||||||
| Net Gain on Sale of Loans | 6 | 50 | 26 | 22 | 3 | 105 | 52 | ||||||||||||||||
| Net Gain (Loss) on Securities | 14 | (11,752) | — | (69) | 3 | (11,807) | 51 | ||||||||||||||||
| Net Gain on Purchased Tax Credits | 4 | 4 | 4 | 4 | 12 | 14 | 49 | ||||||||||||||||
| Gain on Sale of Subsidiary | — | — | — | — | — | — | 138 | ||||||||||||||||
| Net Gain on Disposal of Premises and Equipment | 40 | — | — | — | — | 40 | 274 | ||||||||||||||||
| Income from Bank-Owned Life Insurance | 152 | 154 | 148 | 149 | 152 | 603 | 594 | ||||||||||||||||
| Net Gain on Bank-Owned Life Insurance Claims | — | — | — | — | — | — | 915 | ||||||||||||||||
| Other Income | 867 | 229 | 127 | 155 | 961 | 1,379 | 1,484 | ||||||||||||||||
| Total Noninterest Income (Loss) | 1,729 | (10,677) | 931 | 787 | 1,655 | (7,230) | 5,494 | ||||||||||||||||
| Noninterest Expense: | |||||||||||||||||||||||
| Salaries and Employee Benefits | 5,842 | 5,247 | 5,088 | 6,036 | 5,258 | 22,213 | 18,821 | ||||||||||||||||
| Occupancy | 573 | 574 | 616 | 750 | 652 | 2,513 | 3,096 | ||||||||||||||||
| Equipment | 382 | 367 | 372 | 330 | 313 | 1,452 | 1,155 | ||||||||||||||||
| Data Processing | 790 | 708 | 761 | 797 | 832 | 3,055 | 3,308 | ||||||||||||||||
| Federal Deposit Insurance Corporation Assessment | 171 | 173 | 203 | 176 | 172 | 724 | 639 | ||||||||||||||||
| Pennsylvania Shares Tax | 242 | 306 | 143 | 257 | 301 | 948 | 1,161 | ||||||||||||||||
| Contracted Services | 481 | 371 | 382 | 310 | 522 | 1,543 | 1,623 | ||||||||||||||||
| Legal and Professional Fees | 234 | 411 | 117 | 262 | 268 | 1,024 | 985 | ||||||||||||||||
| Advertising | 192 | 132 | 124 | 119 | 137 | 566 | 484 | ||||||||||||||||
Other Real Estate Owned | 55 | 8 | 1 | — | 34 | 65 | 50 | ||||||||||||||||
| Amortization of Intangible Assets | — | — | — | — | 88 | — | 958 | ||||||||||||||||
| Other Expense | 961 | 886 | 941 | 765 | 876 | 3,553 | 3,369 | ||||||||||||||||
| Total Noninterest Expense | 9,923 | 9,183 | 8,748 | 9,802 | 9,453 | 37,656 | 35,649 | ||||||||||||||||
| Income (Loss) Before Income Tax Expense | 5,270 | (7,020) | 4,715 | 2,336 | 3,051 | 5,300 | 15,343 | ||||||||||||||||
| Income Tax Expense (Benefit) | 528 | (1,324) | 766 | 427 | 522 | 397 | 2,749 | ||||||||||||||||
| Net Income (Loss) | $ | 4,742 | $ | (5,696) | $ | 3,949 | $ | 1,909 | $ | 2,529 | $ | 4,903 | $ | 12,594 | |||||||||
7
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| Per Common Share Data | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | ||||||||||||||||
| Dividends Per Common Share | $ | 0.26 | $ | 0.26 | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 1.02 | $ | 1.00 | |||||||||
| Earnings (Loss) Per Common Share - Basic | 0.95 | (1.14) | 0.79 | 0.37 | 0.49 | 0.97 | 2.45 | ||||||||||||||||
| (Loss) Earnings Per Common Share - Diluted | 0.89 | (1.07) | 0.74 | 0.35 | 0.46 | 0.92 | 2.38 | ||||||||||||||||
| Weighted Average Common Shares Outstanding - Basic | 5,015,025 | 4,985,188 | 5,022,813 | 5,125,577 | 5,126,782 | 5,036,706 | 5,134,092 | ||||||||||||||||
| Weighted Average Common Shares Outstanding - Diluted | 5,304,685 | 5,319,594 | 5,332,026 | 5,471,006 | 5,544,829 | 5,306,916 | 5,302,522 | ||||||||||||||||
| 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | |||||||||||||
| Common Shares Outstanding | 5,036,509 | 4,998,383 | 4,972,300 | 5,099,069 | 5,132,654 | ||||||||||||
| Book Value Per Common Share | $ | 31.28 | $ | 30.50 | $ | 29.84 | $ | 29.08 | $ | 28.71 | |||||||
Tangible Book Value per Common Share (1) | 29.35 | 28.56 | 27.88 | 27.17 | 26.82 | ||||||||||||
| Stockholders’ Equity to Assets | 10.2 | % | 9.9 | % | 9.8 | % | 10.0 | % | 9.9 | % | |||||||
Tangible Common Equity to Tangible Assets (1) | 9.6 | 9.3 | 9.2 | 9.4 | 9.4 | ||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
Selected Financial Ratios (2) | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | ||||||||||||||||
| Return on Average Assets | 1.22 | % | (1.50) | % | 1.06 | % | 0.53 | % | 0.65 | % | 0.33 | % | 0.84 | % | |||||||||
| Return on Average Equity | 12.14 | (15.15) | 10.76 | 5.24 | 6.80 | 3.27 | 8.77 | ||||||||||||||||
| Average Interest-Earning Assets to Average Interest-Bearing Liabilities | 134.05 | 134.42 | 135.33 | 134.70 | 133.33 | 134.62 | 134.78 | ||||||||||||||||
| Average Equity to Average Assets | 10.02 | 9.93 | 9.88 | 10.07 | 9.63 | 9.97 | 9.56 | ||||||||||||||||
| Net Interest Rate Spread | 3.18 | 3.05 | 2.91 | 2.61 | 2.41 | 2.95 | 2.47 | ||||||||||||||||
Net Interest Rate Spread (FTE) (1) | 3.23 | 3.08 | 2.93 | 2.63 | 2.42 | 2.97 | 2.48 | ||||||||||||||||
| Net Interest Margin | 3.76 | 3.64 | 3.54 | 3.27 | 3.12 | 3.55 | 3.19 | ||||||||||||||||
Net Interest Margin (FTE) (1) | 3.80 | 3.67 | 3.55 | 3.28 | 3.13 | 3.58 | 3.20 | ||||||||||||||||
Net Charge-Offs (Recoveries) to Average Loans | 0.10 | (0.03) | (0.01) | 0.02 | 0.06 | 0.02 | 0.03 | ||||||||||||||||
| Efficiency Ratio | 63.79 | 379.15 | 64.94 | 81.02 | 71.68 | 86.48 | 69.14 | ||||||||||||||||
| Asset Quality Ratios | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | |||||||||||||||
| Allowance for Credit Losses to Total Loans | 0.87 | % | 0.89 | % | 0.88 | % | 0.90 | % | 0.90 | % | ||||||||||
Allowance for Credit Losses to Nonperforming Loans (3) | 190.51 | 464.99 | 550.20 | 414.48 | 548.07 | |||||||||||||||
Delinquent and Nonaccrual Loans to Total Loans (4) | 0.89 | 0.59 | 0.49 | 0.54 | 0.72 | |||||||||||||||
Nonperforming Loans to Total Loans (3) | 0.46 | 0.19 | 0.16 | 0.22 | 0.16 | |||||||||||||||
Nonperforming Assets to Total Assets (5) | 0.34 | 0.15 | 0.13 | 0.16 | 0.12 | |||||||||||||||
Capital Ratios (6) | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | |||||||||||||||
| Common Equity Tier 1 Capital (to Risk Weighted Assets) | 13.92 | % | 14.19 | % | 15.28 | % | 14.94 | % | 14.78 | % | ||||||||||
| Tier 1 Capital (to Risk Weighted Assets) | 13.92 | 14.19 | 15.28 | 14.94 | 14.78 | |||||||||||||||
| Total Capital (to Risk Weighted Assets) | 14.89 | 15.20 | 16.29 | 15.95 | 15.79 | |||||||||||||||
| Tier 1 Leverage (to Adjusted Total Assets) | 10.15 | 10.06 | 10.49 | 10.36 | 9.98 | |||||||||||||||
(1) Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.
(2) Interim period ratios are calculated on an annualized basis.
(3) Nonperforming loans consist of all nonaccrual loans and accruing loans that are 90 days or more past due.
(4) Delinquent loans consist of accruing loans that are 30 days or more past due.
(5) Nonperforming assets consist of nonperforming loans and other real estate owned.
(6) Capital ratios are for Community Bank only.
Certain items previously reported may have been reclassified to conform with the current reporting period’s format.
8
| AVERAGE BALANCES AND YIELDS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Balance | Interest and Dividends | Yield / Cost (1) | Average Balance | Interest and Dividends | Yield / Cost (1) | Average Balance | Interest and Dividends | Yield / Cost (1) | Average Balance | Interest and Dividends | Yield / Cost (1) | Average Balance | Interest and Dividends | Yield / Cost (1) | |||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Net (2) | $ | 1,138,734 | $ | 16,145 | 5.62 | % | $ | 1,120,036 | $ | 16,034 | 5.68 | % | $ | 1,098,698 | $ | 15,549 | 5.68 | % | $ | 1,075,083 | $ | 14,584 | 5.50 | % | $ | 1,066,304 | $ | 14,975 | 5.59 | % | |||||||||||||||||||||||||||||
| Debt Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | 241,449 | 3,035 | 5.03 | 259,196 | 2,848 | 4.40 | 284,499 | 2,860 | 4.02 | 278,362 | 2,777 | 3.99 | 284,002 | 3,096 | 4.36 | ||||||||||||||||||||||||||||||||||||||||||||
| Tax-Exempt | 35,243 | 525 | 5.96 | 12,461 | 185 | 5.94 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Equity Securities | 1,000 | 7 | 2.80 | 1,000 | 7 | 2.80 | 1,000 | 9 | 3.60 | 2,674 | 28 | 4.19 | 2,693 | 27 | 4.01 | ||||||||||||||||||||||||||||||||||||||||||||
| Interest-Earning Deposits at Banks | 41,222 | 384 | 3.73 | 29,682 | 293 | 3.95 | 33,564 | 331 | 3.94 | 45,056 | 459 | 4.07 | 114,245 | 1,338 | 4.68 | ||||||||||||||||||||||||||||||||||||||||||||
| Other Interest-Earning Assets | 2,998 | 74 | 9.79 | 3,972 | 74 | 7.39 | 3,767 | 68 | 7.24 | 3,196 | 55 | 6.98 | 3,070 | 40 | 5.18 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Interest-Earning Assets | 1,460,646 | 20,170 | 5.48 | 1,426,347 | 19,441 | 5.41 | 1,421,528 | 18,817 | 5.31 | 1,404,371 | 17,903 | 5.17 | 1,470,314 | 19,476 | 5.27 | ||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-Earning Assets | 85,605 | 75,480 | 67,513 | 63,324 | 65,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 1,546,251 | $ | 1,501,827 | $ | 1,489,041 | $ | 1,467,695 | $ | 1,536,100 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-Bearing Demand Accounts | $ | 367,382 | $ | 1,850 | 2.00 | % | $ | 350,232 | $ | 1,835 | 2.08 | % | $ | 334,752 | $ | 1,677 | 2.01 | % | $ | 317,799 | $ | 1,526 | 1.95 | % | $ | 328,129 | $ | 1,838 | 2.23 | % | |||||||||||||||||||||||||||||
| Money Market Accounts | 212,212 | 1,232 | 2.30 | 211,660 | 1,401 | 2.63 | 238,195 | 1,747 | 2.94 | 230,634 | 1,726 | 3.04 | 227,606 | 1,821 | 3.18 | ||||||||||||||||||||||||||||||||||||||||||||
| Savings Accounts | 168,853 | 45 | 0.11 | 171,188 | 43 | 0.10 | 174,055 | 42 | 0.10 | 172,322 | 41 | 0.10 | 170,612 | 45 | 0.10 | ||||||||||||||||||||||||||||||||||||||||||||
| Time Deposits | 306,395 | 2,675 | 3.46 | 287,646 | 2,531 | 3.49 | 259,506 | 2,255 | 3.49 | 285,093 | 2,818 | 4.01 | 341,686 | 3,788 | 4.41 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Interest-Bearing Deposits | 1,054,842 | 5,802 | 2.18 | 1,020,726 | 5,810 | 2.26 | 1,006,508 | 5,721 | 2.28 | 1,005,848 | 6,111 | 2.46 | 1,068,033 | 7,492 | 2.79 | ||||||||||||||||||||||||||||||||||||||||||||
| Short-Term Borrowings | 16 | — | 4.71 | 5,655 | 68 | 4.77 | 9,143 | 108 | 4.74 | 1,985 | 23 | 4.70 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Other Borrowings | 34,754 | 364 | 4.16 | 34,743 | 364 | 4.16 | 34,733 | 391 | 4.52 | 34,723 | 402 | 4.70 | 34,713 | 407 | 4.66 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Interest-Bearing Liabilities | 1,089,612 | 6,166 | 2.25 | 1,061,124 | 6,242 | 2.33 | 1,050,384 | 6,220 | 2.38 | 1,042,556 | 6,536 | 2.54 | 1,102,746 | 7,899 | 2.85 | ||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-Bearing Demand Deposits | 285,269 | 271,462 | 270,729 | 265,522 | 267,598 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Funding and Cost of Funds | 1,374,881 | 1.78 | 1,332,586 | 1.86 | 1,321,113 | 1.89 | 1,308,078 | 2.03 | 1,370,344 | 2.29 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other Liabilities | 16,367 | 20,120 | 20,789 | 11,854 | 17,883 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | 1,391,248 | 1,352,706 | 1,341,902 | 1,319,932 | 1,388,227 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity | 155,003 | 149,121 | 147,139 | 147,763 | 147,873 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 1,546,251 | $ | 1,501,827 | $ | 1,489,041 | $ | 1,467,695 | $ | 1,536,100 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income (FTE) (Non-GAAP) (3) | $ | 14,004 | $ | 13,199 | $ | 12,597 | $ | 11,367 | $ | 11,577 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest-Earning Assets (4) | 371,034 | 365,223 | 371,144 | 361,815 | 367,568 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Rate Spread (FTE) (Non-GAAP) (3) (5) | 3.23 | % | 3.08 | % | 2.93 | % | 2.63 | % | 2.42 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Margin (FTE) (Non-GAAP) (3)(6) | 3.80 | 3.67 | 3.55 | 3.28 | 3.13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Annualized based on three months ended results.
(2) Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.
(3) Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.
(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(6) Net interest margin represents annualized net interest income divided by average total interest-earning assets.
9
| AVERAGE BALANCES AND YIELDS | |||||||||||||||||||||||||||||||||||
| Year Ended | |||||||||||||||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Average Balance | Interest and Dividends | Yield /Cost | Average Balance | Interest and Dividends | Yield / Cost | ||||||||||||||||||||||||||||||
| (Dollars in thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||||||||||||||
Loans, Net (1) | $ | 1,108,344 | $ | 62,313 | 5.62 | % | $ | 1,073,601 | $ | 59,544 | 5.55 | % | |||||||||||||||||||||||
| Debt Securities | |||||||||||||||||||||||||||||||||||
| Taxable | 265,757 | 11,520 | 4.33 | 268,604 | 11,533 | 4.29 | |||||||||||||||||||||||||||||
| Exempt From Federal Tax | 12,024 | 710 | 5.90 | — | — | — | |||||||||||||||||||||||||||||
| Marketable Equity Securities | 1,413 | 51 | 3.61 | 2,693 | 110 | 4.08 | |||||||||||||||||||||||||||||
| Interest-Earning Deposits at Banks | 37,349 | 1,467 | 3.93 | 96,474 | 4,831 | 5.01 | |||||||||||||||||||||||||||||
| Other Interest-Earning Assets | 3,484 | 270 | 7.75 | 3,142 | 274 | 8.72 | |||||||||||||||||||||||||||||
| Total Interest-Earning Assets | 1,428,371 | 76,331 | 5.34 | 1,444,514 | 76,292 | 5.28 | |||||||||||||||||||||||||||||
| Noninterest-Earning Assets | 73,211 | 57,986 | |||||||||||||||||||||||||||||||||
| Total Assets | $ | 1,501,582 | $ | 1,502,500 | |||||||||||||||||||||||||||||||
| Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||||||||||
| Interest-Bearing Demand Accounts | $ | 342,698 | $ | 6,888 | 2.01 | % | $ | 326,073 | $ | 7,414 | 2.27 | % | |||||||||||||||||||||||
| Savings Accounts | 171,594 | 171 | 0.10 | 180,647 | 202 | 0.11 | |||||||||||||||||||||||||||||
| Money Market Accounts | 223,093 | 6,107 | 2.74 | 215,864 | 6,706 | 3.11 | |||||||||||||||||||||||||||||
| Time Deposits | 284,727 | 10,279 | 3.61 | 314,510 | 14,119 | 4.49 | |||||||||||||||||||||||||||||
| Total Interest-Bearing Deposits | 1,022,112 | 23,445 | 2.29 | 1,037,094 | 28,441 | 2.74 | |||||||||||||||||||||||||||||
| Short-Term Borrowings | 4,199 | 199 | 4.74 | — | — | — | |||||||||||||||||||||||||||||
| Other Borrowings | 34,738 | 1,520 | 4.38 | 34,697 | 1,622 | 4.67 | |||||||||||||||||||||||||||||
| Total Interest-Bearing Liabilities | 1,061,049 | 25,164 | 2.37 | 1,071,791 | 30,063 | 2.80 | |||||||||||||||||||||||||||||
| Noninterest-Bearing Demand Deposits | 273,295 | 270,528 | |||||||||||||||||||||||||||||||||
Total Funding and Cost of Funds | 1,334,344 | 1.89 | 1,342,319 | 2.24 | |||||||||||||||||||||||||||||||
| Other Liabilities | 17,463 | 16,559 | |||||||||||||||||||||||||||||||||
| Total Liabilities | 1,351,807 | 1,358,878 | |||||||||||||||||||||||||||||||||
| Stockholders' Equity | 149,775 | 143,622 | |||||||||||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 1,501,582 | $ | 1,502,500 | |||||||||||||||||||||||||||||||
Net Interest Income (FTE) (Non-GAAP) (2) | 51,167 | 46,229 | |||||||||||||||||||||||||||||||||
Net Interest-Earning Assets (3) | 367,322 | 372,723 | |||||||||||||||||||||||||||||||||
Net Interest Rate Spread (FTE) (Non-GAAP) (2)(4) | 2.97 | % | 2.48 | % | |||||||||||||||||||||||||||||||
Net Interest Margin (FTE) (Non-GAAP) (2)(5) | 3.58 | 3.20 | |||||||||||||||||||||||||||||||||
(1) Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.
(2) Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.
(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest margin represents annualized net interest income divided by average total interest-earning assets.
10
Explanation of Use of Non-GAAP Financial Measures
In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), we use, and this Press Release contains or references, certain Non-GAAP financial measures. We believe these Non-GAAP financial measures provide useful information in understanding our underlying results of operations or financial position and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in providing a complete understanding of factors and trends affecting the Company’s business and in analyzing the Company’s operating results on the same basis as that applied by management. Although we believe that these Non-GAAP financial measures enhance the understanding of our business and performance, they should not be considered an alternative to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with similar Non-GAAP measures which may be presented by other companies. Where Non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found herein.
| 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | |||||||||||||
| (Dollars in thousands, except share and per share data) (Unaudited) | |||||||||||||||||
Total Assets (GAAP) | $ | 1,547,693 | $ | 1,545,514 | $ | 1,517,984 | $ | 1,483,456 | $ | 1,481,564 | |||||||
| Goodwill and Intangible Assets, Net | (9,732) | (9,732) | (9,732) | (9,732) | (9,732) | ||||||||||||
| Tangible Assets (Non-GAAP) (Numerator) | $ | 1,537,961 | $ | 1,535,782 | $ | 1,508,252 | $ | 1,473,724 | $ | 1,471,832 | |||||||
| Stockholders' Equity (GAAP) | $ | 157,537 | $ | 152,465 | $ | 148,362 | $ | 148,289 | $ | 147,378 | |||||||
| Goodwill and Intangible Assets, Net | (9,732) | (9,732) | (9,732) | (9,732) | (9,732) | ||||||||||||
| Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator) | $ | 147,805 | $ | 142,733 | $ | 138,630 | $ | 138,557 | $ | 137,646 | |||||||
| Stockholders’ Equity to Assets (GAAP) | 10.2 | % | 9.9 | % | 9.8 | % | 10.0 | % | 9.9 | % | |||||||
| Tangible Common Equity to Tangible Assets (Non-GAAP) | 9.6 | % | 9.3 | % | 9.2 | % | 9.4 | % | 9.4 | % | |||||||
| Common Shares Outstanding (Denominator) | 5,036,509 | 4,998,383 | 4,972,300 | 5,099,069 | 5,132,654 | ||||||||||||
| Book Value per Common Share (GAAP) | $ | 31.28 | $ | 30.50 | $ | 29.84 | $ | 29.08 | $ | 28.71 | |||||||
| Tangible Book Value per Common Share (Non-GAAP) | $ | 29.35 | $ | 28.56 | $ | 27.88 | $ | 27.17 | $ | 26.82 | |||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | |||||||||||||||||
| (Dollars in thousands) (Unaudited) | |||||||||||||||||||||||
| Net Income (Loss) (GAAP) | $ | 4,742 | $ | (5,696) | $ | 3,949 | $ | 1,909 | $ | 2,529 | $ | 4,903 | $ | 12,594 | |||||||||
| Amortization of Intangible Assets, Net | — | — | — | — | 88 | — | 958 | ||||||||||||||||
| Adjusted Net Income (Loss) (Non-GAAP) (Numerator) | $ | 4,742 | $ | (5,696) | $ | 3,949 | $ | 1,909 | $ | 2,617 | $ | 4,903 | $ | 13,552 | |||||||||
| Annualization Factor | 3.97 | 3.97 | 4.01 | 4.06 | 3.98 | 1.00 | 1.00 | ||||||||||||||||
| Average Stockholders' Equity (GAAP) | $ | 155,003 | $ | 149,121 | $ | 147,139 | $ | 147,763 | $ | 147,873 | $ | 149,775 | $ | 143,622 | |||||||||
| Average Goodwill and Intangible Assets, Net | (9,732) | (9,732) | (9,732) | (9,732) | (9,758) | (9,732) | (10,134) | ||||||||||||||||
| Average Tangible Common Equity (Non-GAAP) (Denominator) | $ | 145,271 | $ | 139,389 | $ | 137,407 | $ | 138,031 | $ | 138,115 | $ | 140,043 | $ | 133,488 | |||||||||
| Return on Average Equity (GAAP) | 12.14 | % | (15.15) | % | 10.76 | % | 5.24 | % | 6.80 | % | 3.27 | % | 8.77 | % | |||||||||
| Return on Average Tangible Common Equity (Non-GAAP) | 12.95 | % | (16.21) | % | 11.53 | % | 5.61 | % | 7.54 | % | 3.50 | % | 10.15 | % | |||||||||
11
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | |||||||||||||||||
| (Dollars in thousands) (Unaudited) | |||||||||||||||||||||||
| Interest Income (GAAP) | $ | 19,992 | $ | 19,341 | $ | 18,760 | $ | 17,847 | $ | 19,431 | $ | 75,939 | $ | 76,131 | |||||||||
| Adjustment to FTE Basis | 178 | 100 | 57 | 56 | 45 | 392 | 161 | ||||||||||||||||
| Interest Income (FTE) (Non-GAAP) | 20,170 | 19,441 | 18,817 | 17,903 | 19,476 | 76,331 | 76,292 | ||||||||||||||||
| Interest Expense (GAAP) | 6,166 | 6,242 | 6,220 | 6,536 | 7,899 | 25,164 | 30,063 | ||||||||||||||||
| Net Interest Income (FTE) (Non-GAAP) | $ | 14,004 | $ | 13,199 | $ | 12,597 | $ | 11,367 | $ | 11,577 | $ | 51,167 | $ | 46,229 | |||||||||
| Net Interest Rate Spread (GAAP) | 3.18 | % | 3.05 | % | 2.91 | % | 2.61 | % | 2.41 | % | 2.95 | % | 2.47 | % | |||||||||
| Adjustment to FTE Basis | 0.05 | 0.03 | 0.02 | 0.02 | 0.01 | 0.02 | 0.01 | ||||||||||||||||
| Net Interest Rate Spread (FTE) (Non-GAAP) | 3.23 | % | 3.08 | % | 2.93 | % | 2.63 | % | 2.42 | % | 2.97 | % | 2.48 | % | |||||||||
| Net Interest Margin (GAAP) | 3.76 | % | 3.64 | % | 3.54 | % | 3.27 | % | 3.12 | % | 3.55 | % | 3.19 | % | |||||||||
| Adjustment to FTE Basis | 0.04 | 0.03 | 0.01 | 0.01 | 0.01 | 0.03 | 0.01 | ||||||||||||||||
| Net Interest Margin (FTE) (Non-GAAP) | 3.80 | % | 3.67 | % | 3.55 | % | 3.28 | % | 3.13 | % | 3.58 | % | 3.20 | % | |||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | |||||||||||||||||
| (Dollars in thousands) (Unaudited) | |||||||||||||||||||||||
| Income (Loss) Before Income Tax Expense (GAAP) | $ | 5,270 | $ | (7,020) | $ | 4,715 | $ | 2,336 | $ | 3,051 | $ | 5,300 | $ | 15,343 | |||||||||
| Net Provision (Recovery) for Credit Losses | 362 | 259 | 8 | (40) | 683 | 589 | 570 | ||||||||||||||||
PPNR (Non-GAAP) | 5,632 | (6,761) | 4,723 | 2,296 | 3,734 | 5,889 | 15,913 | ||||||||||||||||
| Adjustments | |||||||||||||||||||||||
| Net (Gain) Loss on Securities | (14) | 11,752 | — | 69 | (3) | 11,807 | (51) | ||||||||||||||||
| Gain on Sale of Subsidiary | — | — | — | — | — | — | (138) | ||||||||||||||||
| Net Gain on Disposal of Premises and Equipment | (40) | — | — | — | — | (40) | (274) | ||||||||||||||||
| Earn-out Payment Related to the Sale of EU | (711) | — | — | (49) | (708) | (759) | (708) | ||||||||||||||||
| Net Gain on Bank-Owned Life Insurance Claims | — | — | — | — | — | — | (915) | ||||||||||||||||
| Reduction in Force Expenses | — | — | 1,003 | — | 1,003 | — | |||||||||||||||||
| Adjusted PPNR (Non-GAAP) (Numerator) | $ | 4,867 | $ | 4,991 | $ | 4,723 | $ | 3,319 | $ | 3,023 | $ | 17,900 | $ | 13,827 | |||||||||
| Annualization Factor | 3.97 | 3.97 | 4.01 | 4.06 | 3.98 | 1.00 | 1.00 | ||||||||||||||||
| Average Assets (Denominator) | $ | 1,546,251 | $ | 1,501,827 | $ | 1,489,041 | $ | 1,467,695 | $ | 1,536,100 | $ | 1,501,582 | $ | 1,502,500 | |||||||||
| Adjusted PPNR Return on Average Assets (Non-GAAP) | 1.25 | % | 1.32 | % | 1.27 | % | 0.92 | % | 0.78 | % | 1.19 | % | 0.92 | % | |||||||||
12
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | |||||||||||||||||
| (Dollars in thousands, except share and per share data) (Unaudited) | |||||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 4,742 | $ | (5,696) | $ | 3,949 | $ | 1,909 | $ | 2,529 | $ | 4,903 | $ | 12,594 | |||||||||
| Adjustments | |||||||||||||||||||||||
| Net (Gain) Loss on Securities | (14) | 11,752 | — | 69 | (3) | 11,807 | (51) | ||||||||||||||||
| Gain on Sale of Subsidiary | — | — | — | — | — | — | (138) | ||||||||||||||||
| Net Gain on Disposal of Premises and Equipment | (40) | — | — | — | — | (40) | (274) | ||||||||||||||||
| Earn-out Payment Related to the Sale of EU | (711) | — | — | (49) | (708) | (759) | (708) | ||||||||||||||||
| Net Gain on Bank-Owned Life Insurance Claims | — | — | — | — | — | — | (915) | ||||||||||||||||
| Reduction in Force Expenses | — | — | 1,003 | — | 1,003 | — | |||||||||||||||||
| Tax effect | (178) | (2,129) | — | (215) | 149 | (2,522) | 256 | ||||||||||||||||
| Adjusted Net Income (Non-GAAP) | $ | 3,799 | $ | 3,927 | $ | 3,949 | $ | 2,717 | $ | 1,967 | $ | 14,392 | $ | 10,764 | |||||||||
| Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding | 5,304,685 | 5,319,594 | 5,332,026 | 5,471,006 | 5,544,829 | 5,306,916 | 5,302,522 | ||||||||||||||||
| Earnings (Loss) per Common Share - Diluted (GAAP) | $ | 0.89 | $ | (1.07) | $ | 0.74 | $ | 0.35 | $ | 0.46 | $ | 0.92 | $ | 2.38 | |||||||||
| Adjusted Earnings per Common Share - Diluted (Non-GAAP) | $ | 0.72 | $ | 0.74 | $ | 0.74 | $ | 0.50 | $ | 0.35 | $ | 2.71 | $ | 2.03 | |||||||||
| Net Income (Loss) (GAAP) (Numerator) | $ | 4,742 | $ | (5,696) | $ | 3,949 | $ | 1,909 | $ | 2,529 | $ | 4,903 | $ | 12,594 | |||||||||
| Annualization Factor | 3.97 | 3.97 | 4.01 | 4.06 | 3.98 | 1.00 | 1.00 | ||||||||||||||||
| Average Assets (Denominator) | 1,546,251 | 1,501,827 | 1,489,041 | 1,467,695 | 1,536,100 | 1,501,582 | 1,502,500 | ||||||||||||||||
| Return on Average Assets (GAAP) | 1.22 | % | (1.50) | % | 1.06 | % | 0.53 | % | 0.65 | % | 0.33 | % | 0.84 | % | |||||||||
| Adjusted Net Income (Non-GAAP) (Numerator) | $ | 3,799 | $ | 3,927 | $ | 3,949 | $ | 2,717 | $ | 1,967 | $ | 14,392 | $ | 10,764 | |||||||||
| Annualization Factor | 3.97 | 3.97 | 4.01 | 4.06 | 3.98 | 1.00 | 1.00 | ||||||||||||||||
| Average Assets (Denominator) | 1,546,251 | 1,501,827 | 1,489,041 | 1,467,695 | 1,536,100 | 1,501,582 | 1,502,500 | ||||||||||||||||
| Adjusted Return on Average Assets (Non-GAAP) | 0.97 | % | 1.04 | % | 1.06 | % | 0.75 | % | 0.51 | % | 0.96 | % | 0.72 | % | |||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | |||||||||||||||||
| (Dollars in thousands) (Unaudited) | |||||||||||||||||||||||
Net Income (Loss) (GAAP) (Numerator) | $ | 4,742 | $ | (5,696) | $ | 3,949 | $ | 1,909 | $ | 2,529 | $ | 4,903 | $ | 12,594 | |||||||||
| Annualization Factor | 3.97 | 3.97 | 4.01 | 4.06 | 3.98 | 1.00 | 1.00 | ||||||||||||||||
| Average Equity (GAAP) (Denominator) | 155,003 | 149,121 | 147,139 | 147,763 | 147,873 | 149,775 | 143,622 | ||||||||||||||||
| Return on Average Equity (GAAP) | 12.14 | % | (15.15) | % | 10.76 | % | 5.24 | % | 6.80 | % | 3.27 | % | 8.77 | % | |||||||||
| Adjusted Net Income (Non-GAAP) (Numerator) | $ | 3,799 | $ | 3,927 | $ | 3,949 | $ | 2,717 | $ | 1,967 | $ | 14,392 | $ | 10,764 | |||||||||
| Annualization Factor | 3.97 | 3.97 | 4.01 | 4.06 | 3.98 | 1.00 | 1.00 | ||||||||||||||||
| Average Equity (GAAP) (Denominator) | 155,003 | 149,121 | 147,139 | 147,763 | 147,873 | 149,775 | 143,622 | ||||||||||||||||
| Adjusted Return on Average Equity (Non-GAAP) | 9.72 | % | 10.45 | % | 10.76 | % | 7.46 | % | 5.29 | % | 9.61 | % | 7.49 | % | |||||||||
13
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | |||||||||||||||||
| (Dollars in thousands) (Unaudited) | |||||||||||||||||||||||
| Noninterest Expense (GAAP) (Numerator) | $ | 9,923 | $ | 9,183 | $ | 8,748 | $ | 9,802 | $ | 9,453 | $ | 37,656 | $ | 35,649 | |||||||||
| Net Interest and Dividend Income (GAAP) | $ | 13,826 | $ | 13,099 | $ | 12,540 | $ | 11,311 | $ | 11,532 | $ | 50,775 | $ | 46,068 | |||||||||
| Noninterest Income (Loss) (GAAP) | 1,729 | (10,677) | 931 | 787 | 1,655 | (7,230) | 5,494 | ||||||||||||||||
| Operating Revenue (GAAP) (Denominator) | $ | 15,555 | $ | 2,422 | $ | 13,471 | $ | 12,098 | $ | 13,187 | $ | 43,545 | $ | 51,562 | |||||||||
| Efficiency Ratio (GAAP) | 63.79 | % | 379.15 | % | 64.94 | % | 81.02 | % | 71.68 | % | 86.48 | % | 69.14 | % | |||||||||
| Noninterest Expense (GAAP) | $ | 9,923 | $ | 9,183 | $ | 8,748 | $ | 9,802 | $ | 9,453 | $ | 37,656 | $ | 35,649 | |||||||||
| Adjustments: | |||||||||||||||||||||||
| Reduction in Force Expenses | — | — | — | (1,003) | — | (1,003) | — | ||||||||||||||||
| Amortization of Intangible Assets | — | — | — | — | (88) | — | (958) | ||||||||||||||||
| Adjusted Noninterest Expense (Non-GAAP) (Numerator) | $ | 9,923 | $ | 9,183 | $ | 8,748 | $ | 8,799 | $ | 9,365 | $ | 36,653 | $ | 34,691 | |||||||||
| Net Interest and Dividend Income (GAAP) | $ | 13,826 | $ | 13,099 | $ | 12,540 | $ | 11,311 | $ | 11,532 | $ | 50,775 | $ | 46,068 | |||||||||
| Noninterest Income (Loss) (GAAP) | 1,729 | (10,677) | 931 | 787 | 1,655 | (7,230) | 5,494 | ||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Net (Gain) Loss on Securities | (14) | 11,752 | — | 69 | (3) | 11,807 | (51) | ||||||||||||||||
| Gain on Sale of Branches | — | — | — | — | — | — | (138) | ||||||||||||||||
| Net Gain on Disposal of Premises and Equipment | (40) | — | — | — | — | (40) | (274) | ||||||||||||||||
| Earn-out Payment Related to the Sale of EU | (711) | — | — | (49) | (708) | (759) | (708) | ||||||||||||||||
| Net Gain on Bank-Owned Life Insurance Claims | — | — | — | — | — | — | (915) | ||||||||||||||||
| Adjusted Noninterest Income (Non-GAAP) | $ | 964 | $ | 1,075 | $ | 931 | $ | 807 | $ | 944 | $ | 3,778 | $ | 3,408 | |||||||||
| Adjusted Operating Revenue (Non-GAAP) (Denominator) | $ | 14,790 | $ | 14,174 | $ | 13,471 | $ | 12,118 | $ | 12,476 | $ | 54,553 | $ | 49,476 | |||||||||
| Adjusted Efficiency Ratio (Non-GAAP) | 67.09 | % | 64.79 | % | 64.94 | % | 72.61 | % | 75.06 | % | 67.19 | % | 70.12 | % | |||||||||
14