LOANS

12 Months Ended

Dec. 31, 2025

LOANS

LOANS

6. LOANS

The segments of the Company’s loan portfolio are disaggregated into classes that allow management to monitor risk and performance. The loan classes used are consistent with the internal reports evaluated by the Company’s management and Board of Directors to monitor risk and performance within various segments of its loan portfolio. The commercial loan segment includes both the owner occupied commercial real estate loan and the commercial and industrial loan classes. The commercial real estate loan segment includes the non-owner occupied commercial real estate loan classes of retail, multi-family, and other. The residential mortgage loan segment is comprised of first lien amortizing residential

mortgage loans while the consumer loan segment consists primarily of home equity loans secured by residential real estate, installment loans, and overdraft lines of credit associated with customer deposit accounts.

The loan portfolio of the Company consists of the following:

	AT DECEMBER 31,
	2025		2024
	(IN THOUSANDS)
Commercial:
Commercial real estate (owner occupied) (1)	$	85,233	$	86,953
Commercial and industrial		144,325		147,251
Commercial real estate (non-owner occupied):
Retail (1)		171,530		181,778
Multi-family (1)		131,085		132,364
Other (1)		217,935		233,882
Residential mortgages (1)		169,814		177,110
Consumer		112,805		108,611
Loans, net of unearned income	$	1,032,727	$	1,067,949

(1) Real estate construction loans constituted 5.0% and 3.6% of the Company’s total loans, net of unearned income as of December 31, 2025 and 2024, respectively.

Loan balances at December 31, 2025 and 2024 are net of unearned income of $466,000 and $517,000, respectively.

The Company has no exposure to subprime mortgage loans in either the loan or investment portfolios. The Company has no direct loan exposures to sovereign or non-sovereign (i.e. financial institutions and corporations) borrowers within foreign countries experiencing significant economic, fiscal, and/or political strains.

The Company has no significant industry lending concentrations. Specifically, as of December 31, 2025 and 2024, loans to customers engaged in similar activities and having similar economic characteristics, as defined by standard industrial classifications, did not exceed 10% of total loans. Additionally, the majority of the Company’s lending occurs within a 250-mile radius of the Johnstown market.

In the ordinary course of business, the Company has transactions, including loans, with its officers, directors, and their affiliated companies. In management’s opinion, these transactions were on substantially the same terms as those prevailing at the time for comparable transactions with unaffiliated parties and do not involve more than the normal credit risk. These loans totaled $499,000 and $540,000 at December 31, 2025 and 2024, respectively.

The following tables summarize the loan activity with related parties for the years ended December 31, 2025 and 2024 (in thousands).

	YEAR ENDED DECEMBER 31, 2025
	BALANCE AT DECEMBER 31, 2024		ADDITIONS		REPAYMENTS		BALANCE AT DECEMBER 31, 2025
Loans to related parties	$	540	$	110	$	151	$	499

	YEAR ENDED DECEMBER 31, 2024
	BALANCE AT DECEMBER 31, 2023		ADDITIONS		REPAYMENTS		BALANCE AT DECEMBER 31, 2024
Loans to related parties	$	663	$	48	$	171	$	540