EX-99.1 2 lnkb-ex99_1.htm EX-99.1 EX-99.1

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Exhibit 99.1

FOR IMMEDIATE RELEASE

 

Contact:

Nick West

Director, Corporate Development

717.678.7935

[email protected]

 

LINKBANCORP, Inc. Announces Record First Quarter 2025 Earnings and Declares Dividend

April 28, 2025 – HARRISBURG, PA – 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 million1, or $0.201 per diluted share for the first quarter of 2025, compared with $7.6 million1, or $0.211 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.

Page 2 of 20

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.

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

Page 3 of 20

•
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.

“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.

 

 

 

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

Page 4 of 20

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 thousand1 from $18.2 million1 for the fourth quarter of 2024 to $18.7 million1for the first quarter of 2025 while decreasing $407 thousand1 year-over-year from $19.2 million1 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.

 

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 Sale2. 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

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

Page 5 of 20

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 Sale2. 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 $5.801 at March 31, 2025 compared to $5.361 at December 31, 2024 and $5.001at March 31, 2024, representing 16% growth year over year.

 

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.

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

Page 6 of 20

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.

 

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.

2 See Loan and Deposit Tables for Branch Sale Reconciliation

Page 7 of 20

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

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

Page 8 of 20

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

 

 

 

Page 9 of 20

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

 

 

 

 

Page 10 of 20

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 ROA2

 

1.05

%

 

 

1.07

%

 

 

0.86

%

 

 

 

 

 

 

Annualized Return on Equity ("ROE")

 

21.90

%

 

 

10.82

%

 

 

8.63

%

 

 

 

 

 

 

Adjusted ROE2

 

10.56

%

 

 

10.88

%

 

 

8.70

%

 

 

 

 

 

 

Efficiency Ratio

 

50.29

%

 

 

65.04

%

 

 

72.33

%

 

 

 

 

 

 

Adjusted Efficiency Ratio3

 

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 Ratio1

 

12.61

%

 

 

11.55

%

 

 

11.44

%

 

 

11.09

%

 

 

11.04

%

Tier 1 Capital Ratio1

 

11.71

%

 

 

10.74

%

 

 

10.62

%

 

 

10.30

%

 

 

10.24

%

Common Equity Tier 1 Capital Ratio1

 

11.71

%

 

 

10.74

%

 

 

10.62

%

 

 

10.30

%

 

 

10.24

%

Leverage Ratio1

 

10.02

%

 

 

9.49

%

 

 

9.41

%

 

 

9.17

%

 

 

9.23

%

Tangible Common Equity to Tangible Assets4

 

7.78

%

 

 

7.16

%

 

 

7.02

%

 

 

6.82

%

 

 

6.91

%

Tangible Book Value per Share5

$

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.

 

 

Page 11 of 20

(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.

 

 

 

 

Page 12 of 20

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

 

 

 

 

 

 

 

Page 13 of 20

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

 

 

 

 

 

 

 

 

Page 14 of 20

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

%

 

 

Page 15 of 20

LINKBANCORP, Inc. and Subsidiaries

 

 

 

 

Investments in Securities Detail (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2025

 

 

 

 

(In Thousands)

 

Amortized
Cost

 

 

Net
Unrealized Gains
(Losses)

 

 

Fair
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
Cost

 

 

Net Unrealized Losses

 

 

Fair Value

 

 

Allowance for 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

 

 

 

 

(In Thousands)

 

Amortized
Cost

 

 

Net
Unrealized Gains
(Losses)

 

 

Fair
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
Cost

 

 

Net Unrealized Losses

 

 

Fair Value

 

 

Allowance for 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

)

 

 

Page 16 of 20

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

%

 

 

Page 17 of 20

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 18 of 20

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

 

 

 

 

 

 

 

 

 

 

 

Page 19 of 20

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

 

 

 

 

 

 

 

 

 

 

Page 20 of 20

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