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 $5.36 1 at December 31, 2024 to $5.80 1 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 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 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 $5.80 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.
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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 | 25,831 | 25,545 | 24,884 | ||||
Provision for credit losses | 228 | 132 | 40 | ||||
NET INTEREST INCOME AFTER | 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 | |||||||
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 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. | |||||||||
(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 | ||||||||
(In Thousands) | Amortized | Net | Fair | |||||
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 | Net Unrealized Losses | Fair Value | Allowance for | |||||
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 | Net | Fair | |||||
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 | Net Unrealized Losses | Fair Value | Allowance for | |||||
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) | 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) | 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 | $ 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
[email protected]
SOURCE LINKBANCORP, Inc.
