JTNB Bancorp : December 31, 2021

JTNB Bancorp, Inc.

Board of Directors and Principal Officers

Jane F. Engler

Chairman

Craig A. Zurn

President & CEO

Ronald J. Sheehan	Joseph F. Arieta	William P. Gardiner
Vice Chairman	Treasurer	Secretary

Harry W. Hintz

Director

Joseph T. Svetik

Director

Jim Thorpe Neighborhood Bank

Executive Officers

Craig A. Zurn

President & CEO

Gregory C. Hartman	Richard T. Kuhn
Executive Vice President & CFO	Executive Vice President & COO
Jay T. Miller
Senior Vice President & Compliance Officer

Sarah A. Smith Amy L. Behrens Mary C. Marzen

Officers

Assistant Vice President & Deposit Operations/Electronic Banking Manager

Executive Assistant

Credit Administration Officer & Branch Manager

Transfer Agent & Registrar

Annual Meeting of Shareholders

Computershare

Meidinger Tower

462 South 4th Street, Suite 1600

Louisville, KY 40202www.computershare.com

The Annual Meeting of Shareholders will be held on Wednesday, May 11, 2022 at 10:00 a.m. Eastern Time

at The Inn at Jim Thorpe, Broadway Underground,

24 Broadway, Jim Thorpe Pennsylvania 18229.

JTNB Bancorp, Inc.

12 Broadway

Jim Thorpe, PA 18229

April 2022

To our Shareholders:

On behalf of the Board of Directors, Officers, and Employees, I am pleased to have this opportunity to report to you on the progress and strength of your Community Bank. The accompanying statements present the financial status of the Jim Thorpe Neighborhood Bank and reflect our continued efforts and success in maintaining positive financial results and growth. We are proud to continue the tradition of being a strong, independent community bank that provides superior banking services to our communities.

Financial Snapshot

Net income for the year-ended December 31, 2021 was $1,158,000 or $1.22 per share. Earnings comparable to prior year are lower as expected and are mainly attributed to a one-time 2020 Bank-Owned Life Insurance benefit. Investment interest income and gains on securities sold were also lower than prior year.

Total assets at December 31, 2021, were $246.8, an increase of $24.9 million or 11.2% and deposits totaled $218.4 million, which increased by $26.3 million or 13.7%. The total asset and deposit increases is attributed to the growth of our customer base and market share, enhancing core deposits in consumer, business and public funds. Total shareholders' equity at December 31, 2021, was $22.5 million, a decrease of $846 thousand or 3.6% due to accumulated other comprehensive income decreasing.

Net loans outstanding totaled $123.7 million, an increase of $20.3 million or 19.6%. The net loan increase was due to growth in commercial and municipal lending, which is aligned with our strategic initiative to change the bank's mix of earnings assets in favor of loans. This increase also represents our critical role and vital participation in the SBA Paycheck Protection Program ("PPP") for small businesses under the United States CARES Act.

Investments totaled $83.7 million, which increased by $21.7 million or 35.0% over the prior year. The increase in investments was due to the purchase of securities. Cash and Cash Equivalents totaled $30.3 million, which decreased by $15.2 million or 33.4% over the prior year. Borrowed funds remained the same as prior year at $5.0 million.

Non-accrual loans totaled $11,900 which represents 0.01% of the total loan portfolio. Our credit quality remains high. JTNB's loan portfolio and asset quality remains good despite the adverse economic environment caused by COVID-19. The impact of the COVID-19 pandemic will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities in response to the pandemic.

Dividends paid for 2021 totaled $ 0.50 per share, an approximate 3.00% yield on your investment, delivering consistent ongoing returns to our shareholders. The dividend of $ 0.50 per share was a 2% increase over the prior year regular dividend of $0.49 per share. JTNB's conservative and disciplined business philosophy enables us to continue our mission by providing a strong return for our shareholders without impairing capital.

Jim Thorpe Neighborhood Bank continues to be "safe and sound" and is well capitalized, exceeding all regulatory requirements. Tier 1 capital to average assets was 8.7% and total capital to risk-weighted assets was 19.9% versus the 5.0% and 10.0%, respectively, required by regulators to be well capitalized.

Achievements & Community Commitment

Once again, JTNB has earned a 5-Star Superior Rating from BauerFinancial, the Nation's Premier Bank Rating Firm. To earn Bauer's Highest 5-Star Superior Rating, Jim Thorpe Neighborhood Bank must excel in areas of capital adequacy, profitability, loan quality, and more. This marks the 129th consecutive quarter, as of December 2021, that Jim Thorpe Neighborhood Bank has earned Bauer's recommendation of 5-Stars or 4-Stars.

When we were needed the most… we were there! Our philanthropy continued even in the midst of this crisis. Giving back and doing right by our customers and communities is at the heart of what community banking is all about! It is one of the core values that we proudly wear on our sleeves.

As a true community bank, we take pride in reinvesting in the communities that we serve. We encourage and support our employees to participate through volunteerism and community involvement. Financial contributions were distributed to more than 200 organizations benefitting seniors, veterans, youth groups, churches, and community events as well as educational and healthcare systems to name a few. JTNB is recognized and respected for being a good corporate citizen and our staff takes great pride and passion in their services to the community.

Final Thoughts

Over the last year, the economy was dominated by inflation, a global supply chain crisis, the Delta and Omicron variants, trillions in fiscal spending, and easing of monetary policy. Those and others will continue to affect us 2022. JTNB has been very aggressive in publicly stating that we are open for business; furthermore, as a community bank, we understand how critical our leadership role is in preserving the economic health of the communities in which we serve. Despite the economic uncertainty, we see opportunity and are optimistic about our long-term future.

I am proud of the effort given and the results achieved by our dedicated team. Managing a successful community bank is an ongoing process. Each year we set our goals to enhance shareholder value and meet the needs of our customers, employees, and communities. We believe 2021 was a good year for all.

The annual meeting of JTNB Bancorp, Inc. is scheduled for Wednesday, May 11, 2022, in the Broadway Underground Meeting Room, located at 24 Broadway, Jim Thorpe. Light refreshments will be served at 9:30 a.m. prior to commencement of the meeting. The Board of Directors thanks you, our shareholders, for your continued support and appreciates your confidence in us as we look forward to the coming year.

The Board of Directors thanks you, our shareholders, for your continued support, appreciation, and confidence in us as we look forward to the coming year.

Very truly yours,

Craig A. Zurn

Chief Executive Officer

Throughout our long and great history, we have been blessed with strong, servant leaders who have strategically guided us through both good and challenging times.

The JTNB family lost two wonderful directors and friends. The community lost two great leaders. Their presence and leadership will be greatly missed by all. They were well known for their generosity, support of the community, and heartfelt love of faith, family and country. They each accomplished so many great things in life; they worked hard and always followed the path of honesty.

John and Charles, your memories will be treasured in this organization. We are celebrating your legacy and not mourning you. On behalf of the entire JTNB Family, we thank you for your service and dedication!

John J. Cherb

40 Years of Service

John Joseph Cherb passed away on November 22, 2021. John served on the Board of Directors since 1981. During his tenure, he served as Chairman of the Board for seventeen years and as Treasurer for another sixteen.

John served in the US Air Force from 1953-57 and received his CPA license in 1960. John served on numerous community organizations

Charles W. Getz

34 Years of Service

Charles W. Getz passed away on February 10, 2022. Charles served on the Board of Directors since 1988 and as the bank's Trust Audit Chairman for sixteen years.

Charles was well-known as a community member and public servant, having most-notably served as a Carbon County Commissioner and Kidder Township Supervisor among many other notable positions.