LINKBANCORP, Inc. Announces Record First Quarter 2025 Earnings and Declares Dividend
PR Newswire
HARRISBURG, Pa., April 28, 2025
HARRISBURG, Pa., April 28, 2025 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank"), reported record net income of $15.3 million, or $0.41 per diluted share, for the quarter ended March 31, 2025, compared to net income of $7.6 million, or $0.20 per diluted share, for the quarter ended December 31, 2024. Excluding income and expenses associated with the sale of the Bank's New Jersey operations and expenses related to the reduction of the size of the Board of Directors, adjusted earnings were $7.4 million(1) , or $0.20(1) per diluted share for the first quarter of 2025, compared with $7.6 million(1) , or $0.21(1) per diluted share for the fourth quarter of 2024.
Additionally, the Company announced that the Board of Directors declared a quarterly cash dividend of $0.075 per share of common stock which is expected to be paid on June 16, 2025 to shareholders of record on May 30, 2025.
(1) See Appendix A -- Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
First Quarter 2025 Highlights
-- Successful Branch Sale. On March 31, 2025, the Bank successfully
completed the sale of its banking operations and branches in New Jersey,
including related loans and deposits (the "Branch Sale"). The transaction
involved the transfer of three branch locations, $87 million of deposits,
and $105 million in loans. Under the terms of the purchase and assumption
agreement, deposits were sold at a 7% premium and loans were sold at par,
resulting in an after-tax gain, net of transaction costs, of $8.7
million.
-- Consistent strength in core earnings. Annualized return on average assets
was 2.19% for the first quarter of 2025, compared to 1.06% for the fourth
quarter of 2024 and 0.86% for the first quarter of 2024. Adjusted return
on average assets was 1.05%1 for the first quarter of 2025, compared to
1.07%1 for the fourth quarter of 2024 and 0.86%1 for the first quarter of
2024.
-- Net interest margin expands to 3.94%. Net interest margin expanded to
3.94% for the first quarter of 2025 from 3.85% for the fourth quarter of
2024. Net interest margin was impacted by increased purchase accounting
accretion, an increase in loan yields and a decrease in cost of funds.
-- Greater than 8% growth in tangible book value per share. The Company's
book value per share increased to $7.87 at March 31, 2025 from $7.50 at
December 31, 2024. Tangible book value per share increased $0.44, or 8.2%,
from $5.361 at December 31, 2024 to $5.801 at March 31, 2025. The
Company's ratio of Tangible Common Equity to Tangible Assets was 7.78%1
at March 31, 2025, compared to 7.16%1 at December 31, 2024 and 6.91%1 at
March 31, 2024.
-- Significant increase in core deposits supports balance sheet growth.
Total deposits at March 31, 2025 were $2.43 billion compared to $2.45
billion at December 31, 2024, representing an increase of $66.6 million,
or 11.01% annualized after adjusting for the Branch Sale2. Total loans at
March 31, 2025 were $2.27 billion, compared to $2.35 billion at December
31, 2024, representing an increase of $24.0 million or 4.10% after
adjusting for the Branch Sale2.
-- Continued strength in on-balance sheet liquidity. Cash and cash
equivalents increased $54.1 million from $166.1 million at December 31,
2024 to $220.2 million at March 31, 2025, further bolstering the
Company's strong liquidity position.
(1) See Appendix A -- Reconciliation to Non-GAAP Financial Measures for the
computation of this non-GAAP measure.
(2) See Loan and Deposit Tables for Branch Sale Reconciliation
"We are very pleased to present consistent core earnings in addition to the successful sale of our New Jersey operations," said Andrew Samuel, Chief Executive Officer of LINKBANCORP. "Strong core deposit growth and the gain from the New Jersey sale has well positioned our teams to support our loan pipeline headed into the second quarter. Our strengthened liquidity and capital positions provide the foundation for continued growth, with an emphasis on creating long term shareholder value as we positively impact our local communities."
Income Statement
Net interest income before the provision for credit losses for the first quarter of 2025 was $25.8 million compared to $25.5 million in the fourth quarter of 2024 and $24.9 million for the first quarter of 2024. Net interest margin expanded to 3.94% for the first quarter of 2025 compared to 3.85% for the fourth quarter of 2024. The improvement in net interest margin was driven by a 5 basis points increase in average yield on interest earning assets from 6.09% for the fourth quarter of 2024 compared to 6.14% for the first quarter of 2025. This increase included an increase in purchase accounting accretion while core loan yields increased marginally quarter-over-quarter. In addition, the total cost of funds declined 3 basis points from 2.32% for the fourth quarter of 2024 to 2.29% for the first quarter of 2025, driven by a 5 basis points decrease in the average cost of deposits from 2.15% for the fourth quarter of 2024 to 2.10% for the first quarter of 2025, partially offset by an increase in wholesale funding costs.
Noninterest income increased quarter-over-quarter to $13.3 million for the first quarter of 2025 compared to $2.6 million for the fourth quarter of 2024 due to the $11.1 million pre-tax gain from the Branch Sale, offset by a decline in service charges on deposits mostly attributable to a decrease in account level fees and interchange revenue.
Noninterest expense for the first quarter of 2025 was $19.7 million compared to $18.3 million for the fourth quarter of 2024 and $19.3 million for the first quarter of 2024. Excluding non-core operating costs totaling $912 thousand in the first quarter of 2025, $56 thousand in the fourth quarter of 2024 and $56 thousand in the first quarter of 2024, adjusted noninterest expense increased $541 thousand(1) from $18.2 million(1) for the fourth quarter of 2024 to $18.7 million(1) for the first quarter of 2025 while decreasing $407 thousand(1) year-over-year from $19.2 million(1) for the first quarter of 2024. Adjusted non-interest expense for the first quarter of 2025 excludes expenses related to the reduction of the size of the Board of Directors included in other noninterest expense, as well as bonus accruals related to completion of the Branch Sale included in salaries and employee benefits expense, and other merger and restructuring costs.
Income tax expense was $3.9 million for the first quarter of 2025, reflecting an effective tax rate of 20.1% compared to $2.1 million for the fourth quarter of 2024, reflecting an effective rate of 21.9% and $1.6 million for the first quarter of 2024, reflecting an effective tax rate of 21.8%, respectively. The tax rate decreased quarter-over-quarter due to a state income tax apportionment adjustment.
(1) See Appendix A -- Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Balance Sheet
Total assets were $2.86 billion at March 31, 2025 compared to $2.88 billion at December 31, 2024 and $2.79 billion at March 31, 2024. Deposits and net loans as of March 31, 2025 totaled $2.43 billion and $2.25 billion, respectively, compared to deposits and net loans of $2.36 billion and $2.23 billion, respectively, at December 31, 2024 and $2.28 billion and $2.11 billion, respectively, at March 31, 2024. Deposits and net loans exclude recorded balances held for sale in the Branch Sale of $93.6 million and $91.8 million, respectively, at December 31, 2024, which are reflected in liabilities held for sale and assets held for sale. These balances were $105.6 million and $115.9 million respectively, at March 31, 2024.
Total loans at March 31, 2025 were $2.27 billion, compared to $2.35 billion at December 31, 2024, representing an increase of $24.0 million after adjusting for the Branch Sale(2) .Total commercial loan commitments originated in the first quarter of 2025 were $98.5 million with funded balances of $72.0 million. The average commercial loan commitment originated during the first quarter of 2025 totaled approximately $788 thousand with an average outstanding funded balance of $576 thousand.
Total deposits at March 31, 2025 were $2.43 billion compared to $2.45 billion at December 31, 2024, representing an increase of $66.6 million after adjusting for the Branch Sale(2) . Average total deposits, including deposits held for sale, increased $5.3 million to $2.38 billion for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024. Noninterest bearing deposits totaled $646.0 million at March 31, 2025, representing 26.5% of total deposits.
The Company continues to maintain strong on-balance sheet liquidity, as cash and cash equivalents increased 32.6% to $220.2 million at March 31, 2025 compared to $166.1 million at December 31, 2024.
Shareholders' equity increased from $280.2 million at December 31, 2024 to $294.1 million at March 31, 2025 primarily as a result of a $12.6 million increase in retained earnings. Book value per share increased to $7.87 at March 31, 2025 compared to $7.50 at December 31, 2024. Tangible book value per share increased to $5.80(1) at March 31, 2025 compared to $5.36(1) at December 31, 2024 and $5.00(1) at March 31, 2024, representing 16% growth year over year.
(1) See Appendix A -- Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure. (2) See Loan and Deposit Tables for Branch Sale Reconciliation
Asset Quality
The Company recorded a $228 thousand provision for credit losses during the first quarter of 2025, after recording a $132 thousand provision for credit losses in the fourth quarter of 2024.
As of March 31, 2025, the Company's non-performing assets were $26.0 million, representing 0.91% of total assets, compared to $17.2 million, representing 0.60% of total assets at December 31, 2024.
Loans 30-89 days past due at March 31, 2025 were $12.7 million, representing 0.56% of total loans compared to $2.9 million or 0.13% of total loans at December 31, 2024 and $15.3 million or 0.68% of total loans at March 31, 2024.
The current increase in non-performing assets and delinquencies primarily relate to two properly margined first lien secured real estate loans with an aggregate principal balance of approximately $8.8 million at March 31, 2025.
The allowance for credit losses-loans was $26.6 million, or 1.17% of total loans held for investment at March 31, 2025, compared to $26.4 million, or 1.17% of total loans held for investment at December 31, 2024. The allowance for credit losses-loans to nonperforming assets ratio was 102.22% at March 31, 2025, compared to 153.93% at December 31, 2024.
(1) See Appendix A -- Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Capital
The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of March 31, 2025. The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 12.61% and 11.71% respectively, at March 31, 2025, compared to 11.55% and 10.74%, respectively, at December 31, 2024 and 11.04% and 10.24%, respectively, at March 31, 2024. The Company's ratio of Tangible Common Equity to Tangible Assets was 7.78%(1) at March 31, 2025 compared to 7.16%(1) at December 31, 2024.
(1) See Appendix A -- Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
ABOUT LINKBANCORP, Inc.
LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, LINKBANK, is a Pennsylvania state-chartered bank serving individuals, families, nonprofits and business clients throughout Pennsylvania, Maryland, Delaware and Virginia, through 24 client solutions centers and www.linkbank.com. LINKBANCORP, Inc. common stock is traded on the Nasdaq Capital Market under the symbol "LNKB". For further company information, visit ir.linkbancorp.com.
Forward Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties associated with newly developed or acquired operations; changes in general economic trends, including inflation, tariffs and changes in interest rates; increased competition; changes in consumer demand for financial services; our ability to control costs and expenses; adverse developments in borrower industries and, in particular, declines in real estate values; changes in and compliance with federal and state laws that regulate our business and capital levels; our ability to raise capital as needed; and the effects of any cybersecurity breaches. The Company does not undertake, and specifically disclaims, any obligation to publicly revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. Accordingly, you should not place undue reliance on forward-looking statements.
LB-E
LB-D
LINKBANCORP, Inc. and Subsidiaries
Consolidated Balance Sheet (Unaudited)
March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
---------------- --------------------------- -------------------- -------------- -------------------
(In Thousands, except share
and per share data)
ASSETS
Noninterest-bearing
cash equivalents $ 14,830 $ 13,834 $ 15,295 $ 14,516 $ 13,552
Interest-bearing
deposits with other
institutions 205,352 152,266 175,937 167,141 158,731
---------------- --------------------------- -------------------- -------------- -------------------
Cash and cash
equivalents 220,182 166,100 191,232 181,657 172,283
Securities available
for sale, at fair
value 159,183 145,590 149,315 140,121 133,949
Securities held to
maturity, net of
allowance for credit
losses 27,662 31,508 34,155 35,343 36,109
Loans receivable,
gross 2,273,941 2,255,749 2,215,868 2,193,197 2,129,919
Allowance for credit
losses - loans (26,619) (26,435) (26,542) (26,288) (23,842)
---------------- --------------------------- -------------------- -------------- -------------------
Loans receivable, net 2,247,322 2,229,314 2,189,326 2,166,909 2,106,077
---------------- --------------------------- -------------------- -------------- -------------------
Investments in
restricted bank
stock 4,780 5,209 4,904 4,928 4,286
Premises and
equipment, net 17,920 18,029 17,623 18,364 20,102
Right-of-Use Asset --
premises 14,537 14,913 14,150 13,970 14,577
Bank-owned life
insurance 52,507 52,079 51,646 49,616 49,230
Goodwill and other
intangible assets 77,379 79,761 80,924 82,129 81,494
Deferred tax asset 18,636 18,866 21,662 22,024 22,717
Assets held for sale -- 94,146 104,660 118,362 118,115
Accrued interest
receivable and other
assets 23,288 23,263 20,344 25,170 26,730
TOTAL ASSETS $ 2,863,396 $ 2,878,778 $ 2,879,941 $ 2,858,593 $ 2,785,669
================ =========================== ==================== ============== ===================
LIABILITIES
Deposits:
Demand,
noninterest
bearing $ 646,002 $ 658,646 $ 658,473 $ 661,292 $ 618,277
Interest bearing 1,787,692 1,701,936 1,714,179 1,699,220 1,662,124
---------------- --------------------------- -------------------- -------------- -------------------
Total deposits 2,433,694 2,360,582 2,372,652 2,360,512 2,280,401
Long-term borrowings 40,000 40,000 40,000 40,000 40,000
Short-term
borrowings -- 10,000 -- -- --
Note payable 559 565 572 578 584
Subordinated debt 62,129 61,984 61,843 61,706 61,573
Lease liabilities 15,284 15,666 14,911 14,746 15,357
Liabilities held for
sale -- 93,777 94,228 96,916 105,716
Accrued interest
payable and other
liabilities 17,664 15,983 18,382 12,726 13,795
TOTAL LIABILITIES 2,569,330 2,598,557 2,602,588 2,587,184 2,517,426
---------------- --------------------------- -------------------- -------------- -------------------
SHAREHOLDERS' EQUITY
Preferred stock -- -- -- -- --
Common stock 370 370 370 370 369
Surplus 264,871 264,449 264,059 263,795 263,577
Retained earnings 32,507 19,947 15,147 10,826 7,724
Accumulated other
comprehensive loss (3,682) (4,545) (2,223) (3,582) (3,427)
TOTAL SHAREHOLDERS' EQUITY 294,066 280,221 277,353 271,409 268,243
---------------- --------------------------- -------------------- -------------- -------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 2,863,396 $ 2,878,778 $ 2,879,941 $ 2,858,593 $ 2,785,669
================ =========================== ==================== ============== ===================
Common shares
outstanding 37,377,342 37,370,917 37,361,560 37,356,278 37,348,151
LINKBANCORP, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
Three Months Ended
------------------------------------------------------------
3/31/2025 12/31/2024 3/31/2024
------------------ ----------------- -------------------
(In Thousands,
except share and per
share data)
INTEREST AND
DIVIDEND INCOME
Loans receivable,
including fees $ 37,041 $ 37,082 $ 36,125
Other 3,101 3,224 2,650
----------------- -------------------
Total
interest and
dividend
income 40,142 40,306 38,775
INTEREST EXPENSE
Deposits 12,357 12,823 11,847
Other Borrowings 986 962 1,152
Subordinated Debt 968 976 892
----------------- -------------------
Total
interest
expense 14,311 14,761 13,891
NET INTEREST INCOME
BEFORE PROVISION
FOR CREDIT LOSSES 25,831 25,545 24,884
Provision for
credit losses 228 132 40
------------------ ----------------- -------------------
NET INTEREST INCOME
AFTER PROVISION
FOR CREDIT LOSSES 25,603 25,413 24,844
NONINTEREST INCOME
Service charges on
deposit accounts 1,061 1,339 780
Bank-owned life
insurance 428 433 383
Gain on sale of
loans 77 70 50
Gain on sale of
branches 11,093 -- --
Other 598 752 516
----------------- -------------------
Total
noninterest
income 13,257 2,594 1,729
NONINTEREST EXPENSE
Salaries and
employee
benefits 11,156 10,147 11,118
Occupancy 1,464 1,368 1,578
Equipment and data
processing 2,043 1,884 1,826
Professional fees 487 531 748
FDIC insurance and
supervisory fees 599 687 352
Bank Shares Tax 614 693 591
Intangible
amortization 1,084 1,162 1,207
Merger &
restructuring
expenses 41 56 56
Advertising 144 128 234
Other 2,026 1,646 1,540
----------------- -------------------
Total
noninterest
expense 19,658 18,302 19,250
------------------ ----------------- -------------------
Income before income
tax expense 19,202 9,705 7,323
Income tax
expense 3,859 2,121 1,597
------------------ ----------------- -------------------
NET INCOME $ 15,343 $ 7,584 $ 5,726
================== ================= ===================
EARNINGS PER SHARE,
BASIC $ 0.41 $ 0.20 $ 0.15
================== ================= ===================
EARNINGS PER SHARE,
DILUTED $ 0.41 $ 0.20 $ 0.15
================== ================= ===================
WEIGHTED-AVERAGE
COMMON SHARES
OUTSTANDING,
BASIC 37,105,480 37,045,701 36,962,005
DILUTED 37,221,939 37,166,107 37,045,230
LINKBANCORP, Inc. and Subsidiaries
Financial Highlights (Unaudited)
For the Three Months Ended
----------------------------------------------------------------
(Dollars In Thousands,
except per share data) 3/31/2025 12/31/2024 3/31/2024
------------------- ----------------- ------------------------
Operating Highlights
Net Income $ 15,343 $ 7,584 $ 5,726
Net Interest Income 25,831 25,545 24,884
Provision for Credit
Losses 228 132 40
Non-Interest Income 13,257 2,594 1,729
Non-Interest Expense 19,658 18,302 19,250
Earnings per Share,
Basic 0.41 0.20 0.15
Adjusted Earnings per
Share, Basic (2) 0.20 0.21 0.16
Earnings per Share,
Diluted 0.41 0.20 0.15
Adjusted Earnings per
Share, Diluted (2) 0.20 0.21 0.16
Selected Operating
Ratios
Net Interest Margin 3.94 % 3.85 % 4.03 %
Annualized Return on
Assets ("ROA") 2.19 % 1.06 % 0.86 %
Adjusted ROA(2) 1.05 % 1.07 % 0.86 %
Annualized Return on
Equity ("ROE") 21.90 % 10.82 % 8.63 %
Adjusted ROE(2) 10.56 % 10.88 % 8.70 %
Efficiency Ratio 50.29 % 65.04 % 72.33 %
Adjusted Efficiency
Ratio(3) 66.96 % 64.84 % 72.12 %
Noninterest Income to
Avg. Assets 1.89 % 0.36 % 0.26 %
Noninterest Expense to
Avg. Assets 2.80 % 2.56 % 2.88 %
3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024
------------------- ----------------- ------------------------ ----------------------- --------------------
Financial Condition Data
Total Assets $ 2,863,396 $ 2,878,778 $ 2,879,941 $ 2,858,593 $ 2,785,669
Loans Receivable, Net 2,247,322 2,229,314 2,189,326 2,166,909 2,106,077
Noninterest-bearing
Deposits 646,002 658,646 658,473 661,292 618,277
Interest-bearing
Deposits 1,787,692 1,701,936 1,714,179 1,699,220 1,662,124
------------------- ----------------- ------------------------ ----------------------- --------------------
Total Deposits $ 2,433,694 $ 2,360,582 $ 2,372,652 $ 2,360,512 $ 2,280,401
Selected Balance Sheet
Ratios
Total Capital Ratio(1) 12.61 % 11.55 % 11.44 % 11.09 % 11.04 %
Tier 1 Capital Ratio(1) 11.71 % 10.74 % 10.62 % 10.30 % 10.24 %
Common Equity Tier 1
Capital Ratio(1) 11.71 % 10.74 % 10.62 % 10.30 % 10.24 %
Leverage Ratio(1) 10.02 % 9.49 % 9.41 % 9.17 % 9.23 %
Tangible Common Equity
to Tangible Assets(4) 7.78 % 7.16 % 7.02 % 6.82 % 6.91 %
Tangible Book Value per
Share(5) $ 5.80 $ 5.36 $ 5.26 $ 5.07 $ 5.00
Asset Quality Data
Non-performing Assets $ 26,041 $ 17,173 $ 17,378 $ 10,589 $ 6,675
Non-performing Assets to
Total Assets 0.91 % 0.60 % 0.60 % 0.37 % 0.24 %
Non-performing Loans to
Total Loans 1.15 % 0.76 % 0.78 % 0.48 % 0.31 %
Allowance for Credit
Losses - Loans
("ACLL") $ 26,619 $ 26,435 $ 26,542 $ 26,288 $ 23,842
ACLL to Total Loans 1.17 % 1.17 % 1.20 % 1.20 % 1.06 %
ACLL to Nonperforming
Assets 102.22 % 153.93 % 152.73 % 248.26 % 357.18 %
Net chargeoffs
(recoveries) $ 81 $ 252 $ (28) $ (20) $ 70
(1) - These capital ratios have been calculated using bank-level capital
(2) - This is a non-GAAP financial measure. See our reconciliation of non-GAAP
financial measures to their most directly comparable GAAP financial measures
at the end of this release.
(3) - The efficiency ratio, as adjusted represents noninterest expense divided
by the sum of net interest income and noninterest income, excluding gains or
losses from securities sales and merger related expenses. This is a non-GAAP
financial measure. See our reconciliation of non-GAAP financial measures to
their most directly comparable GAAP financial measures at the end of this
release.
(4) - We calculate tangible common equity as total shareholders' equity less
goodwill and other intangibles, and we calculate tangible assets as total
assets less goodwill and other intangibles. This is a non-GAAP financial
measure. See our reconciliation of non-GAAP financial measures to their most
directly comparable GAAP financial measures at the end of this release.
(5) - We calculate tangible book value per common share as total shareholders'
equity less goodwill and other intangibles, divided by the outstanding number
of shares of our common stock at the end of the relevant period. Tangible book
value per common share is a non-GAAP financial measure, and, as we calculate
tangible book value per common share, the most directly comparable GAAP
financial measure is book value per common share. See our reconciliation of
non-GAAP financial measures to their most directly comparable GAAP financial
measures at the end of this release.
LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Quarter-To-Date (Unaudited)
For the Three Months Ended March 31,
---------------------------------------------------------------------------------------------------------------------------------
2025 2024
--------------------------------------------------------------- ----------------------------------------------------------------
(Dollars in thousands) Avg Bal Interest (2) Yield/Rate Avg Bal Interest (2) Yield/Rate
----------------------- -------------------------- ---------- ------------------------ -------------------------- ----------
Int. Earn. Cash $ 119,269 $ 972 3.31 % $ 82,420 $ 898 4.38 %
Securities
Taxable (1) 142,867 1,749 4.96 % 114,896 1,391 4.87 %
Tax-Exempt 43,845 481 4.45 % 42,984 457 4.28 %
----------------------- -------------------------- ---------- ------------------------ -------------------------- ----------
Total Securities 186,712 2,230 4.84 % 157,880 1,848 4.71 %
----------------------- -------------------------- ---------- ------------------------ -------------------------- ----------
Total Cash Equiv. and
Investments 305,981 3,202 4.24 % 240,300 2,746 4.60 %
Total Loans (3) 2,350,031 37,041 6.39 % 2,240,714 36,125 6.48 %
----------------------- -------------------------- ---------- ------------------------ -------------------------- ----------
Total Earning Assets 2,656,012 40,243 6.14 % 2,481,014 38,871 6.30 %
Other Assets 191,469 210,826
----------------------- ------------------------
Total Assets $ 2,847,481 $ 2,691,840
======================= ========================
Interest bearing demand $ 545,475 3,048 2.27 % $ 424,781 1,942 1.84 %
Money market demand 555,663 2,937 2.14 % 587,455 3,174 2.17 %
Time deposits 632,649 6,372 4.08 % 608,192 6,731 4.45 %
Total Borrowings 149,922 1,954 5.29 % 140,621 2,044 5.85 %
----------------------- -------------------------- ---------- ------------------------ -------------------------- ----------
Total Interest-Bearing
Liabilities 1,883,709 14,311 3.08 % 1,761,049 13,891 3.17 %
Non Interest-Bearing
Deposits 649,440 632,637
----------------------- -------------------------- ---------- ------------------------ -------------------------- ----------
Total Cost of Funds 2,533,149 14,311 2.29 % 2,393,686 13,891 2.33 %
-------------------------- ---------- -------------------------- ----------
Other Liabilities 30,229 31,359
----------------------- ------------------------
Total Liabilities 2,563,378 2,425,045
----------------------- ------------------------
Shareholders' Equity 284,104 266,795
----------------------- ------------------------
Total Liabilities &
Shareholders' Equity $ 2,847,482 $ 2,691,840
======================= ========================
Net Interest
Income/Spread (FTE) 25,932 3.06 % 24,980 3.13 %
Tax-Equivalent Basis
Adjustment (101) (96)
-------------------------- --------------------------
Net Interest Income $ 25,831 $ 24,884
========================== ==========================
Net Interest Margin 3.94 % 4.03 %
(1) Taxable income on securities includes income from available for sale
securities and income from certificates of deposits with other banks.
(2) Income stated on a tax equivalent basis which is a non-GAAP measure and
reconciled to GAAP at the bottom of the table
(3) Includes the balances of nonaccrual loans
LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Linked Quarter-To-Date (Unaudited)
For the Three Months Ended
--------------------------------------------------------------------------------------------------------
March 31, 2025 December 31, 2024
-------------------------------------------------------- ----------------------------------------------
(Dollars in thousands) Avg Bal Interest (2) Yield/Rate Avg Bal Interest (2) Yield/Rate
------------------------ ------------------ ---------- --------------- ----------------- ----------
Int. Earn. Cash $ 119,269 $ 972 3.31 % $ 128,802 $ 1,300 4.02 %
Securities
Taxable (1) 142,867 1,749 4.96 % 138,168 1,540 4.43 %
Tax-Exempt 43,845 481 4.45 % 44,958 486 4.30 %
------------------------ ------------------ ---------- --------------- ----------------- ----------
Total Securities 186,712 2,230 4.84 % 183,126 2,026 4.40 %
------------------------ ------------------ ---------- --------------- ----------------- ----------
Total Cash Equiv. and
Investments 305,981 3,202 4.24 % 311,928 3,326 4.24 %
Total Loans (3) 2,350,031 37,041 6.39 % 2,327,829 37,082 6.34 %
------------------------ ------------------ ---------- --------------- ----------------- ----------
Total Earning Assets 2,656,012 40,243 6.14 % 2,639,757 40,408 6.09 %
Other Assets 191,469 202,693
------------------------ ---------------
Total Assets $ 2,847,481 $ 2,842,450
======================== ===============
Interest bearing demand $ 545,475 3,048 2.27 % $ 537,856 3,043 2.25 %
Money market demand 555,663 2,937 2.14 % 567,593 3,139 2.20 %
Time deposits 632,649 6,372 4.08 % 607,231 6,641 4.35 %
Total Borrowings 149,922 1,954 5.29 % 153,117 1,938 5.04 %
------------------------ ------------------ ---------- --------------- ----------------- ----------
Total Interest-Bearing
Liabilities 1,883,709 14,311 3.08 % 1,865,797 14,761 3.15 %
Non Interest-Bearing
Deposits 649,440 665,276
------------------------ ------------------ ---------- --------------- ----------------- ----------
Total Cost of Funds 2,533,149 14,311 2.29 % 2,531,073 14,761 2.32 %
------------------ ---------- ----------------- ----------
Other Liabilities 30,229 32,493
------------------------ ---------------
Total Liabilities 2,563,378 2,563,566
------------------------ ---------------
Shareholders' Equity 284,104 278,884
------------------------ ---------------
Total Liabilities &
Shareholders' Equity $ 2,847,482 $ 2,842,450
======================== ===============
Net Interest
Income/Spread (FTE) 25,932 3.06 % 25,647 2.94 %
Tax-Equivalent Basis
Adjustment (101) (102)
------------------ -----------------
Net Interest Income $ 25,831 $ 25,545
================== =================
Net Interest Margin 3.94 % 3.85 %
(1) Taxable income on securities includes income from available for sale
securities and income from certificates of deposits with other banks.
(2) Income stated on a tax equivalent basis which is a non-GAAP measure and
reconciled to GAAP at the bottom of the table
(3) Includes the balances of nonaccrual loans
LINKBANCORP, Inc. and Subsidiaries
Loans Receivable Detail (Unaudited)
(In Thousands) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
----------------- ---------------------- ------------------- ---------------- ----------------
Agriculture and
farmland loans $ 66,684 $ 67,741 $ 65,166 $ 66,937 $ 67,359
Construction
loans 136,421 158,296 175,373 201,174 194,391
Commercial &
industrial
loans 257,302 252,163 241,597 247,190 218,724
Commercial real
estate loans
Multifamily 215,916 217,331 212,444 199,740 190,146
Owner
occupied 472,895 493,906 500,643 492,065 489,467
Non-owner
occupied 645,793 658,615 626,030 610,649 589,731
Residential real
estate loans
First liens 378,420 399,476 400,869 400,098 403,300
Second liens
and lines of
credit 79,905 78,410 73,591 71,168 71,060
Consumer and
other loans 17,097 17,087 17,498 15,514 16,810
Municipal loans 3,012 3,886 4,296 4,362 4,473
----------------- ---------------------- ------------------- ---------------- ----------------
2,273,445 2,346,911 2,317,507 2,308,897 2,245,461
Deferred costs 496 645 634 478 356
Total loans
receivable 2,273,941 2,347,556 2,318,141 2,309,375 2,245,817
----------------- ---------------------- ------------------- ---------------- ----------------
Less: Loans held
for sale -- 91,807 102,273 116,178 115,898
Loans Held for
Investment $ 2,273,941 $ 2,255,749 $ 2,215,868 $ 2,193,197 $ 2,129,919
================= ====================== =================== ================ ================
LINKBANCORP, Inc. and Subsidiaries
Loan Growth Calculation Excluding
Branch Sale (Unaudited)
(In Thousands) March 31, 2025
-----------------
Total Loans at
March 31, 2025 $ 2,273,941
Total Loans at
December 31,
2024 2,347,556
-----------------
Quarterly Change (73,615)
Net Book Value of
Loans Sold 97,952
-----------------
Quarterly Loan
Growth Excluding
Branch Sale 24,337
Annualized Growth
Rate 4.20 %
LINKBANCORP, Inc. and Subsidiaries
Investments in Securities Detail (Unaudited)
March 31, 2025
-------------------------------------------------------
Net
Amortized Unrealized Gains Fair
(In Thousands) Cost (Losses) Value
-------------- ----------------------- --------------
Available for Sale:
US Government Agency
securities $ 13,097 $ 176 $ 13,273
Obligations of state
and political
subdivisions 51,221 (3,756) 47,465
Mortgage-backed
securities in
government-sponsored
entities 99,909 (1,864) 98,045
Other securities 408 (8) 400
$ 164,635 $ (5,452) $ 159,183
============== ======================= ==============
Amortized Allowance for
Cost Net Unrealized Losses Fair Value Credit Losses
-------------- ----------------------- -------------- -----------------
Held to Maturity:
Corporate debentures $ 12,250 $ (828) $ 11,422 $ (421)
Structured
mortgage-backed
securities 15,833 (491) 15,342 -
$ 28,083 $ (1,319) $ 26,764 $ (421)
============== ======================= ============== =================
December 31, 2024
-------------------------------------------------------
Net
Amortized Unrealized Gains Fair
(In Thousands) Cost (Losses) Value
-------------- ----------------------- --------------
Available for Sale:
US Government Agency
securities $ 13,017 $ 56 $ 13,073
Obligations of state
and political
subdivisions 51,254 (4,053) 47,201
Mortgage-backed
securities in
government-sponsored
entities 88,289 (3,506) 84,783
Other securities 542 (9) 533
$ 153,102 $ (7,512) $ 145,590
============== ======================= ==============
Amortized Allowance for
Cost Net Unrealized Losses Fair Value Credit Losses
-------------- ----------------------- -------------- -----------------
Held to Maturity:
Corporate debentures $ 15,250 $ (984) $ 14,266 $ (459)
Structured
mortgage-backed
securities 16,717 (699) 16,018 -
$ 31,967 $ (1,683) $ 30,284 $ (459)
============== ======================= ============== =================
LINKBANCORP, Inc. and Subsidiaries
Deposits Detail (Unaudited)
(In Thousands) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
--------------- ---------------------- -------------------- ------------------- --------------
Demand,
noninterest-bearing $ 646,002 $ 686,510 $ 687,536 $ 692,095 $ 653,719
Demand,
interest-bearing 577,170 537,546 547,099 488,043 447,412
Money market and
savings 553,240 553,807 585,395 582,561 591,982
Time deposits, $250
and over 166,441 167,165 169,616 156,621 147,898
Time deposits, other 387,226 405,493 401,976 393,603 398,365
Brokered deposits 103,615 103,615 75,000 144,429 146,653
--------------- ---------------------- -------------------- ------------------- --------------
2,433,694 2,454,136 2,466,622 2,457,352 2,386,029
Less: Deposits held
for sale -- 93,554 93,970 96,840 105,628
--------------- ---------------------- -------------------- ------------------- --------------
Total deposits $ 2,433,694 $ 2,360,582 $ 2,372,652 $ 2,360,512 $ 2,280,401
=============== ====================== ==================== =================== ==============
Average Deposits Detail, for the Three Months Ended (Unaudited)
(In Thousands) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
--------------- ---------------------- -------------------- ------------------- --------------
Demand,
noninterest-bearing $ 649,440 $ 665,276 $ 659,825 $ 657,939 $ 632,637
Demand,
interest-bearing 545,475 537,856 497,100 446,109 424,781
Money market and
savings 555,663 567,593 580,766 581,223 587,455
Time deposits 576,366 568,615 560,815 547,582 518,929
Brokered deposits 56,283 38,616 52,587 95,337 89,263
Total deposits $ 2,383,227 $ 2,377,956 $ 2,351,093 $ 2,328,190 $ 2,253,065
=============== ====================== ==================== =================== ==============
Balances in table above include deposits held for sale
LINKBANCORP, Inc. and Subsidiaries
Deposit Growth Calculation Excluding
Branch Sale (Unaudited)
(In Thousands) March 31, 2025
---------------
Total Deposits at
March 31, 2025 $ 2,433,694
Total Deposits at
December 31, 2024 2,454,136
---------------
Quarterly Change (20,442)
Net Book Value of
Deposits Sold 87,086
---------------
Quarterly Deposit
Growth Excluding
Branch Sale 66,644
Annualized Growth
Rate 11.01 %
Appendix A -- Reconciliation to Non-GAAP Financial Measures
This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these non-GAAP measures in its analysis of the Company's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of non-GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company's financial condition and results. Non-GAAP measures are not formally defined under GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to GAAP financial measures, our management believes these non-GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-GAAP measures. See the tables below for a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures.
Adjusted Return on Average Assets
------------------------------------------------------------------------------------
For the Three Months Ended
----------------------------------------------------------
(Dollars in thousands) 3/31/2025 12/31/2024 3/31/2024
------------------ ------------------ ------------------
Net income $ 15,343 $ 7,584 $ 5,726
Average assets 2,847,481 2,842,450 2,691,840
Return on average assets
(annualized) 2.19 % 1.06 % 0.86 %
Net income $ 15,343 $ 7,584 $ 5,726
Gain on sale of
branches (11,093) -- --
Tax effect(1) 2,440 -- --
Transaction bonus
accrual 490 -- --
Tax effect(1) (108) -- --
Board restructuring
accrual 381 -- --
Tax effect(1) (84) -- --
Merger & restructuring
expenses 41 56 56
Tax effect(1) (9) (12) (12)
------------------ ------------------ ------------------
Adjusted Net Income
(Non-GAAP) $ 7,401 $ 7,628 $ 5,770
Average assets $ 2,847,481 $ 2,842,450 $ 2,691,840
Adjusted return on
average assets
(annualized)
(Non-GAAP) 1.05 % 1.07 % 0.86 %
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21% for prior
periods
Adjusted Return on Average Shareholders' Equity
-------------------------------------------------------------------------
For the Three Months Ended
-----------------------------------------------
(Dollars in thousands) 3/31/2025 12/31/2024 3/31/2024
-------------- -------------- ---------------
Net income $ 15,343 $ 7,584 $ 5,726
Average shareholders'
equity 284,104 278,884 266,795
Return on average
shareholders' equity
(annualized) 21.90 % 10.82 % 8.63 %
Net income $ 15,343 $ 7,584 $ 5,726
Gain on sale of
branches (11,093) -- --
Tax effect(1) 2,440 -- --
Transaction bonus
accrual 490 -- --
Tax effect(1) (108) -- --
Board restructuring
accrual 381 -- --
Tax effect(1) (84) -- --
Merger & restructuring
expenses 41 56 56
Tax effect(1) (9) (12) (12)
-------------- -------------- ---------------
Adjusted Net Income
(Non-GAAP) $ 7,401 $ 7,628 $ 5,770
Average shareholders'
equity $ 284,104 $ 278,884 $ 266,795
Adjusted return on
average shareholders'
equity (annualized)
(Non-GAAP) 10.56 % 10.88 % 8.70 %
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21%
for prior periods
Adjusted Efficiency Ratio
--------------------------------------------------------------------------
For the Three Months Ended
-------------------------------------
(Dollars in thousands) 3/31/2025 12/31/2024 3/31/2024
----------- ----------- -----------
GAAP-based efficiency ratio 50.29 % 65.04 % 72.33 %
Net interest income $ 25,831 $ 25,545 $ 24,884
Noninterest income 13,257 2,594 1,729
Less: Gain on sale of branches (11,093) - -
----------- ----------- -----------
Adjusted revenue (Non-GAAP) 27,995 28,139 26,613
Total noninterest expense 19,658 18,302 19,250
Less: Merger & restructuring
expenses 41 56 56
Less: Transaction bonus accrual 490 - -
Less: Board restructuring accrual 381 - -
----------- ----------- -----------
Adjusted non-interest expense $ 18,746 $ 18,246 $ 19,194
Efficiency ratio, as adjusted
(Non-GAAP) 66.96 % 64.84 % 72.12 %
Adjusted Earnings Per Share
--------------------------------------------------------------------------
For the Three Months Ended
------------------------------------------------
(Dollars in thousands,
except per share data) 3/31/2025 12/31/2024 3/31/2024
------------- ------------------ -------------
GAAP-Based Earnings Per
Share, Basic $ 0.41 $ 0.20 $ 0.15
GAAP-Based Earnings Per
Share, Diluted $ 0.41 $ 0.20 $ 0.15
Net Income $ 15,343 $ 7,584 $ 5,726
Gain on sale of branches (11,093) -- --
Tax effect(1) 2,440 -- --
Transaction bonus
accrual 490 -- --
Tax effect(1) (108) -- --
Board restructuring
accrual 381 -- --
Tax effect(1) (84) -- --
Merger & restructuring
expenses 41 56 56
Tax effect(1) (9) (12) (12)
------------- ------------------ -------------
Adjusted Net Income
(Non-GAAP) $ 7,401 $ 7,628 $ 5,770
Adjusted Earnings per
Share, Basic
(Non-GAAP) $ 0.20 $ 0.21 $ 0.16
Adjusted Earnings per
Share, Diluted
(Non-GAAP) $ 0.20 $ 0.21 $ 0.16
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21%
for prior periods
Tangible Common Equity and Tangible Book Value
------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands,
except per share data) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024
-------------- ------------------ ------------------- ----------------- ------------------
Tangible Common Equity
Total shareholders'
equity $ 294,066 $ 280,221 $ 277,353 $ 271,409 $ 268,243
Adjustments:
Goodwill (58,806) (58,806) (58,806) (58,806) (56,968)
Other intangible assets (18,573) (20,955) (22,118) (23,323) (24,526)
-------------- ------------------ ------------------- ----------------- ------------------
Tangible common equity
(Non-GAAP) $ 216,687 $ 200,460 $ 196,429 $ 189,280 $ 186,749
Common shares
outstanding 37,377,342 37,370,917 37,361,560 37,356,278 37,348,151
Book value per common
share $ 7.87 $ 7.50 $ 7.42 $ 7.27 $ 7.18
Tangible book value per
common share
(Non-GAAP) $ 5.80 $ 5.36 $ 5.26 $ 5.07 $ 5.00
Tangible Assets
Total assets $ 2,863,396 $ 2,878,778 $ 2,879,941 $ 2,858,593 $ 2,785,669
Adjustments:
Goodwill (58,806) (58,806) (58,806) (58,806) (56,968)
Other intangible assets (18,573) (20,955) (22,118) (23,323) (24,526)
-------------- ------------------ ------------------- ----------------- ------------------
Tangible assets
(Non-GAAP) $ 2,786,017 $ 2,799,017 $ 2,799,017 $ 2,776,464 $ 2,704,175
Tangible common equity
to tangible assets
(Non-GAAP) 7.78 % 7.16 % 7.02 % 6.82 % 6.91 %
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)
--------------------------------------------------------------------------
For the Three Months Ended
-------------------------------------------------
(Dollars in thousands,
except per share data) 3/31/2025 12/31/2024 3/31/2024
----------------- ------------ ----------------
Net Income (GAAP) $ 15,343 $ 7,584 $ 5,726
Gain on sale of
branches (11,093) -- --
Tax effect(1) 2,440 -- --
Transaction bonus
accrual 490 -- --
Tax effect(1) (108) -- --
Board restructuring
accrual 381 -- --
Tax effect(1) (84) -- --
Merger & restructuring
expenses 41 56 56
Tax effect(1) (9) (12) (12)
----------------- ------------ ----------------
Adjusted Net Income
(Non-GAAP) 7,401 7,628 5,770
Income tax expense 3,859 2,121 1,597
Provision for credit
losses 228 132 40
Tax effect included in
Adjusted Net Income (2,239) 12 12
----------------- ------------ ----------------
Adjusted Pre-tax,
Pre-provision Net
Income (Non-GAAP) $ 9,249 $ 9,893 $ 7,419
================= ============ ================
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21%
for prior periods
Contact:
Nick West
Director, Corporate Development
717.678.7935
IR@LINKBANCORP.COM
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SOURCE LINKBANCORP, Inc.
(END) Dow Jones Newswires
April 28, 2025 16:30 ET (20:30 GMT)