Executive Summary

Q3 2025 EPS was $0.41 and net income was $2.06M, up 24.2% and 25.6% year over year, driven by net interest margin expansion to 3.04% and disciplined loan/deposit pricing .
Net interest income rose to $6.56M and non-interest income to $1.52M; credit quality remained strong with nonperforming loans at 0.1% of total loans and delinquent plus nonperforming at 0.2% .
Balance sheet grew: assets to $880.5M (+3.7% YTD), loans to $577.7M (+8.2% YTD), deposits to $775.6M (+3.7% YTD); long-term debt fell to zero after an FHLB advance matured in June .
Board declared a $0.22 per share dividend payable Dec 1, 2025; ongoing margin expansion and asset growth are key near-term catalysts .

What Went Well and What Went Wrong

Net interest margin expanded 31 bps YoY to 3.04% on improved pricing discipline; CEO highlighted “continued improvement in our net interest margin… achieved through disciplined loan and deposit pricing” .
Robust loan and core deposit growth supported earnings; loans +8.2% YTD, deposits +3.7% YTD, with liquidity capacity maintained at FHLB $214.7M and Fed Discount Window $50.6M .
Credit quality strong: nonperforming loans at 0.1% of total loans; delinquent + nonperforming at 0.2%, supporting lower risk costs YoY in the quarter ($216k provision vs. $232k) .

Non-interest expense increased QoQ to $5.44M, driven by higher compensation (+$328k) and other expenses (wealth management transition and unfunded commitments) partially offset by lower benefits .
Wealth management transition weighed on fee streams; commissions from non-deposit products decreased both YTD and in Q3 as the new business model ramped .
Trust fees modestly softer in prior quarter and fee-derived loan activity saw variability QoQ, indicating some non-interest revenue sensitivity to business mix .

Metric	Q1 2025	Q2 2025	Q3 2025
Net Interest Income ($USD Millions)	$5.82	$6.18	$6.56
Non-Interest Income ($USD Millions)	$1.35	$1.48	$1.52
Provision for Credit Losses ($USD Millions)	$0.10	$0.35	$0.22
Net Income ($USD Millions)	$2.01	$1.91	$2.06
Diluted EPS ($USD)	$0.40	$0.38	$0.41
Net Interest Margin % (FTE)	2.83%	2.95%	3.04%

Metric	Q3 2024	Q3 2025
Net Interest Income ($USD Millions)	$5.80	$6.56
Non-Interest Income ($USD Millions)	$1.45	$1.52
Net Interest Margin % (FTE)	2.73%	3.04%
Net Income ($USD Millions)	$1.64	$2.06
Diluted EPS ($USD)	$0.33	$0.41

Metric	Dec 31, 2024	Jun 30, 2025	Sep 30, 2025
Total Assets ($USD Millions)	$848.9	$866.4	$880.5
Total Loans ($USD Millions)	$533.9	$556.3	$577.7
Total Deposits ($USD Millions)	$748.0	$759.3	$775.6
Long-term Debt ($USD Millions)	$5.0	$0.0	$0.0
ROAA (annualized)	N/A	0.89%	0.94%
ROAE (annualized)	N/A	15.01%	15.47%
NPLs / Total Loans (%)	N/A	0.1%	0.1%
Delinquent + NPL / Loans (%)	N/A	0.3%	0.2%
Liquidity Capacity (FHLB, Fed DW) ($USD Millions)	N/A	$203.9 / $50.7	$214.7 / $50.6

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q4 2025	$0.22 (declared Jul 15, payable Sep 1)	$0.22 (declared Oct 21, payable Dec 1)	Maintained
Loan Activity Outlook	FY 2025	“Anticipate continued strong loan activity”	“Anticipate healthy loan activity throughout remainder of 2025 and into next year”	Maintained/Extended
Net Interest Margin Narrative	FY 2025	Expect positive trend in NIM	Continued improvement in NIM cited YoY	Reinforced

Note: No formal quantitative revenue, margin, OpEx, OI&E, or tax-rate guidance ranges were provided in company materials .

No Q3 2025 earnings call transcript was available; analysis relies on press releases and 8-K disclosures .

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Net Interest Margin	Reversal of two-year compression; NIM 2.83%	Positive NIM trend; 2.95%	Improved to 3.04% YoY	Improving
Loan Growth & Core Deposits	Accelerate loan growth focus (State College/Harrisburg)	Healthy loan growth and core deposits	Loans +8.2% YTD; core deposit increases	Strong
Credit Quality	NPLs 0.1%; delinquencies + NPLs 0.4%	NPLs 0.1%; delinquencies + NPLs 0.3%	NPLs 0.1%; delinquencies + NPLs 0.2%	Stable/Improving
Wealth Mgmt Transition	Not highlighted	Transition dampened non-deposit commissions	Transition continues to weigh on commissions	Headwind
Liquidity & Funding	Strong FHLB/Fed capacity; brokered authorization	Strong capacity; replace matured FHLB advance	Capacity increased; no brokered deposits	Solid

“Our growth in earnings was primarily due to the continued improvement in our net interest margin… achieved through disciplined loan and deposit pricing. Focused customer acquisition efforts have resulted in strong growth in loan outstandings and increases in core deposits… Credit quality remains strong… We anticipate healthy loan activity throughout the remainder of 2025 and into next year.” — Marcie A. Barber, President & CEO .
“These improvements are due primarily to disciplined loan and deposit pricing and healthy loan growth… We anticipate continued strong loan activity… contributing to the positive trend in our net interest margin.” — Marcie A. Barber (Q2 release) .
“This improvement is due in part to disciplined loan and deposit pricing… increase in noninterest income and a 9.2% decrease in noninterest expense… focus… to accelerate loan growth, especially in the State College and Harrisburg regions.” — Marcie A. Barber (Q1 release) .

No formal Q3 2025 analyst Q&A transcript was published; no call materials found. Guidance clarifications are drawn from the press release narrative .

Wall Street consensus EPS and revenue estimates via S&P Global were not available for Q3 2025; as a result, beat/miss analysis versus Street is not determinable for this quarter (values retrieved from S&P Global).*

Margin-led earnings: Net interest margin expanded to 3.04% with disciplined pricing, supporting EPS growth to $0.41 despite a higher operating expense base QoQ .
Balance sheet momentum: Loans grew 8.2% YTD and deposits 3.7% YTD, positioning for continued earning asset expansion into 2026 .
Credit quality remains a strength: NPLs at 0.1% and delinquent + NPLs at 0.2% provide cushion for growth without outsized provisioning pressure .
Liquidity and funding optionality: Increased borrowing capacity (FHLB $214.7M, Fed $50.6M) and zero brokered deposits offer flexibility if funding costs shift .
Non-interest revenue transition: Wealth management changes are a modest headwind to commissions; watch mix shift in fee income as the model matures .
Dividend consistency: $0.22 per share declared for Q4 2025 maintains shareholder return and signals confidence in earnings trajectory .
Near-term focus: Track NIM progression, loan growth pace, and operating expense discipline; absence of Street estimates reduces event-driven volatility, but margin and credit updates could drive trading catalysts around quarterly disclosures .