LINKBANCORP, Inc. (NASDAQ: LNKB) (the “Company”), the parent company of LINKBANK (the “Bank”) reported record net income of $7.6 million, or $0.20 per diluted share, for the quarter ended December 31, 2024, compared to net income of $7.1 million, or $0.19 per diluted share, for the quarter ended September 30, 2024. Excluding expenses associated with the pending sale of its New Jersey branches and branch consolidations, adjusted earnings were $7.6 million1, or $0.211per diluted share for the fourth quarter of 2024, compared with $7.2 million1, or $0.191 per diluted share for the third quarter of 2024. Net income for the year ended December 31, 2024 was $26.2 million, or $0.71 per diluted share. Excluding merger and restructuring related expenses, adjusted net income was $26.91 million, or $0.731 per diluted share for the year ended December 31, 2024.
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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 March 14, 2025 to shareholders of record on February 28, 2025.
1 See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Fourth Quarter 2024 Highlights
— Annualized return on average assets was 1.06% for the fourth quarter of 2024, compared to 1.00% for the third quarter of 2024. Adjusted return on average assets was 1.07%1 for the fourth quarter of 2024, compared to 1.02%1 for the third quarter of 2024.
— Excluding deposits held for sale, total deposits2 increased $161.8 million, or 7.36%, from $2.20 billion at December 31, 2023 to $2.36 billion at December 31, 2024. While total deposits decreased slightly quarter over quarter, average deposits2 grew $26.9 million from $2.35 billion for the quarter ended September 30, 2024 to $2.38 billion for the quarter ended December 31, 2024. Excluding loans held for sale, total loans2 increased $127.5 million, or 5.99% from $2.13 billion at December 31, 2023 to $2.26 billion at December 31, 2024.
— Net interest margin expanded to 3.85% for the fourth quarter of 2024 from 3.82% for the third quarter of 2024. For the full year, net interest margin expanded 79 basis points to 3.88% for the year ended December 31, 2024 from 3.09% for the year ended December 31, 2023.
— Net interest income before provision for credit losses improved to $25.5 million for the fourth quarter of 2024 compared to $25.0 million for the third quarter of 2024.
— Noninterest expense decreased $150 thousand quarter over quarter to $18.3 million for the fourth quarter of 2024. The Company's efficiency ratio continued to improve to 65.04% for the fourth quarter of 2024 compared to 66.71% for the third quarter of 2024 and 72.33% for the first quarter of 2024 as the Company continues to execute on post-merger cost-saving initiatives.
— On May 9, 2024, the Company announced that LINKBANK had entered into a definitive purchase and assumption agreement for the sale of the Bank's banking operations and three branches in New Jersey, including related loans and deposits (the “Branch Sale”) to American Heritage Federal Credit Union. The Federal Deposit Insurance Corporation (“FDIC”) has approved the Branch Sale and the transaction is expected to close in the first quarter of 2025, subject to customary closing conditions, including regulatory approval from the National Credit Union Administration (“NCUA”).
1 See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.2 Total loans and total deposits include balances held for sale in the Branch Sale of $91.8 million and $93.6 million, respectively, at December 31, 2024. These balances were $102.3 million and $94.0 million respectively at September 30, 2024. Average deposits include deposits held for sale in the Branch Sale.
As a result of the Branch Sale announcement, associated loans and deposits were reclassified as held for sale, impacting the Company's allowance for credit losses and purchase accounting amortization related to the loans held for sale.
“We are very pleased to announce record earnings for both the fourth quarter and the full year 2024, after a full year of implementing and executing on strategic initiatives to improve our performance. Our teams have continued to focus on reducing costs, generating additional fee income and growing interest income with solid growth in quality loans and core deposits throughout the year,” said Andrew Samuel, Chief Executive Officer of LINKBANCORP. “As we move into 2025, we are excited to continue to leverage the talent we have in place with an emphasis on operational efficiency and further earnings growth.”
Income Statement Net interest income before the provision for credit losses for the fourth quarter of 2024 was $25.5 million compared to $25.0 million in the third quarter of 2024. Net interest margin expanded to 3.85% for the fourth quarter of 2024 compared to 3.82% for the third quarter of 2024. The improvement in net interest margin was driven by a 10 basis points decrease in cost of funds to 2.32% for the fourth quarter of 2024 compared to 2.42% for the third quarter of 2024, while the average yield on interest earning assets decreased seven basis points to 6.09% for the fourth quarter of 2024 from 6.16% for the third quarter of 2024 due to the cut in the target federal funds rate.
Noninterest income decreased slightly quarter-over-quarter to $2.6 million for the fourth quarter of 2024 compared to $2.7 million for the third quarter of 2024, as decreases in swap fee income and gain on sale of loans were partially offset by continued growth in service charges on deposit accounts.
Noninterestexpense for the fourth quarter of 2024 was $18.3 million compared to $18.5 millionfor the third quarter of 2024. Excluding one-time costs associated with the Branch Sale and branch consolidations of $56 thousand in the fourth quarter of 2024 and $171 thousand in the third quarter of 2024, adjusted noninterest expense was generally flat at $18.3 million1 for the third and fourth quarter of 2024, as increases in salaries and employee benefits and equipment and data processing costs were offset by decreases in professional fees and FDIC deposit insurance and supervisory fees. The increase in salaries and employee benefits was primarily related to a $250 thousand expense resulting from a change in paid time off (PTO) accrual policy.
Income tax expense was $2.1 million for the fourth quarter of 2024, reflecting an effective tax rate of 21.9%.
1 See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Balance Sheet Total assets were $2.88 billion at December 31, 2024 compared to $2.88 billion at September 30, 2024 and $2.67 billion at December 31, 2023. Deposits and net loans as of December 31, 2024 totaled $2.36 billion and $2.23 billion, respectively, compared to deposits and net loans of $2.37 billion and $2.19 billion, respectively, at September 30, 2024 and $2.20 billion and $2.10 billion, respectively, at December 31, 2023. Deposits and net loans exclude 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 $94.0 million and $102.3 million respectively, at September 30, 2024.
Including loans held for sale, total loans increased $29.4 million, from $2.32 billion at September 30, 2024 to $2.35 billion at December 31, 2024. Total commercial loan commitments for the fourth quarter of 2024 were $176.3 million with funded balances of $93.7 million. The average commercial loan commitment originated during the fourth quarter of 2024 totaled approximately $979 thousand with an average outstanding funded balance of $521 thousand.
Including deposits held for sale, total deposits at December 31, 2024 totaled $2.45 billion, a decrease of $12.5 million from $2.47 billion at September 30, 2024. Average deposits increased $26.9 million from $2.35 billion for the quarter ended September 30, 2024 to $2.38 billion for the quarter ended December 31, 2024. Noninterest bearing deposits totaled $686.5 million at December 31, 2024, representing 28.0% of total deposits.
The Company continues to focus on maintaining strong on-balance sheet liquidity, as cash and cash equivalents increased to $166.1 million at December 31, 2024 compared to $80.2 million at December 31, 2023.
Shareholders' equity increased from $277.4 million at September 30, 2024 to $280.2 million at December 31, 2024 primarily as a result of a $4.8 million increase in retained earnings offset by a $2.3 million increase in accumulated other comprehensive loss resulting from the rate environment. Book value per share increased to $7.50 at December 31, 2024 compared to $7.42 at September 30, 2024. Tangible book value per share increased to $5.36 at December 31, 2024 compared to $5.26 at September 30, 2024 and $4.90 at December 31, 20231, representing 9.4% annual growth.
1 See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Asset Quality The Company recorded a $132 thousand provision for credit losses during the fourth quarter of 2024, after recording a $84 thousand provision for credit losses in the third quarter of 2024.
As of December 31, 2024, the Company's non-performing assets were $17.2 million, representing 0.60% of total assets, compared to $17.4 million, representing 0.60% of total assets at September 30, 2024.
Loans 30-89 days past due at December 31, 2024 were $4.6 million, representing 0.21% of total loanscompared to $2.7 million or 0.12% of total loans at September 30, 2024 and $4.7 million or 0.22% of total loans at December 31, 2023.
The allowance for credit losses-loans was $26.4 million, or 1.17% of total loans held for investment at December 31, 2024, compared to $26.5 million, or 1.20% of total loans held for investment at September 30, 2024. The allowance for credit losses-loans to nonperforming assets ratio was 153.95% at December 31, 2024, compared to 152.73% at September 30, 2024.
Capital The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered “well capitalized” as of December 31, 2024. The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 11.55% and 10.74%respectively, at December 31, 2024, compared to 11.44% and 10.62%, respectively, at September 30, 2024 and 10.62% and 9.92%, respectively, at December 31, 2023. The Company's ratio of Tangible Common Equity to Tangible Assets was 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, Virginia, and New Jersey through 26 client solutions centers andwww.linkbank.com. LINKBANCORP, Inc. common stock is traded on theNasdaq Capital Market under the symbol “LNKB”. For further company information, visitir.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; risks related to the integration of the Partners Merger; the timing and receipt of regulatory approvals to complete the Branch Sale; changes in general economic trends, including inflation 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 SubsidiariesConsolidated Balance Sheet (Unaudited) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023(In Thousands, except share and per share data)ASSETSNoninterest-bearing cash equivalents $ 13,834 $ 15,295 $ 14,516 $ 13,552 $ 13,089Interest-bearing deposits with other institutions 152,266 175,937 167,141 158,731 67,101Cash and cash equivalents 166,100 191,232 181,657 172,283 80,190Securities available for sale, at fair value 145,590 149,315 140,121 133,949 115,490Securities held to maturity, net of allowance for credit losses 31,508 34,155 35,343 36,109 36,223Loans receivable, gross 2,255,749 2,215,868 2,193,197 2,129,919 2,128,284Allowance for credit losses – loans (26,435) (26,542) (26,288) (23,842) (23,767)Loans receivable, net 2,229,314 2,189,326 2,166,909 2,106,077 2,104,517Investments in restricted bank stock 5,209 4,904 4,928 4,286 3,965Premises and equipment, net 18,029 17,623 18,364 20,102 20,130Right-of-Use Asset – premises 14,913 14,150 13,970 14,577 15,497Bank-owned life insurance 52,079 51,646 49,616 49,230 48,847Goodwill and other intangible assets 79,761 80,924 82,129 81,494 82,701Deferred tax asset 22,280 21,662 22,024 22,717 24,153Assets held for sale 94,146 104,660 118,362 118,115 115,499Accrued interest receivable and other assets 22,405 20,344 25,170 26,730 22,113TOTAL ASSETS $ 2,881,334 $ 2,879,941 $ 2,858,593 $ 2,785,669 $ 2,669,325LIABILITIESDeposits:Demand, noninterest bearing $ 658,646 $ 658,473 $ 661,292 $ 618,277 $ 624,780Interest bearing 1,701,936 1,714,179 1,699,220 1,662,124 1,574,019Total deposits 2,360,582 2,372,652 2,360,512 2,280,401 2,198,799Long-term borrowings 40,000 40,000 40,000 40,000 -Short-term borrowings 10,000 – – – 10,000Note payable 565 572 578 584 590Subordinated debt 61,984 61,843 61,706 61,573 61,444Lease liabilities 15,666 14,911 14,746 15,357 16,361Liabilities held for sale 93,777 94,228 96,916 105,716 99,777Accrued interest payable and other liabilities 18,539 18,382 12,726 13,795 16,558TOTAL LIABILITIES 2,601,113 2,602,588 2,587,184 2,517,426 2,403,529SHAREHOLDERS' EQUITYPreferred stock – – – – -Common stock 370 370 370 369 369Surplus 264,449 264,059 263,795 263,577 263,310Retained earnings 19,947 15,147 10,826 7,724 4,843Accumulated other comprehensive loss (4,545) (2,223) (3,582) (3,427) (3,209)Total equity attributable to parent 280,221 277,353 271,409 268,243 265,313Noncontrolling interest in consolidated subsidiary – – – – 483TOTAL SHAREHOLDERS' EQUITY 280,221 277,353 271,409 268,243 265,796TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,881,334 $ 2,879,941 $ 2,858,593 $ 2,785,669 $ 2,669,325Common shares outstanding 37,370,917 37,361,560 37,356,278 37,348,151 37,340,700
LINKBANCORP, Inc. and SubsidiariesConsolidated Statements of Operations (Unaudited) Three Months Ended Twelve Months Ended 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023(In Thousands, except share and per share data)INTEREST AND DIVIDEND INCOMELoans receivable, including fees $ 37,082 $ 36,856 $ 21,461 $ 146,175 $ 58,791Other 3,224 3,338 1,642 12,549 6,407Total interest and dividend income 40,306 40,194 23,103 158,724 65,198INTEREST EXPENSEDeposits 12,823 13,292 7,445 51,033 22,638Other Borrowings 962 949 727 3,929 1,923Subordinated Debt 976 972 615 3,868 1,926Total interest expense 14,761 15,213 8,787 58,830 26,487NET INTEREST INCOME BEFORE 25,545 24,981 14,316 99,894 38,711PROVISION FOR CREDIT LOSSESProvision for credit losses 132 84 9,844 257 9,295NET INTEREST INCOME AFTER 25,413 24,897 4,472 99,637 29,416PROVISION FOR CREDIT LOSSESNONINTEREST INCOMEService charges on deposit accounts 1,339 1,052 385 4,036 978Bank-owned life insurance 433 430 250 1,633 738Net realized gains (losses) on the sale of debt securities – – – 4 (2,370)Gain on sale of loans 70 138 166 270 465Other 752 1,060 374 2,919 1,276Total noninterest income 2,594 2,680 1,175 8,862 1,087NONINTEREST EXPENSESalaries and employee benefits 10,147 9,855 8,262 41,061 20,612Occupancy 1,368 1,440 911 5,945 3,015Equipment and data processing 1,884 1,640 1,201 7,174 3,720Professional fees 531 763 536 2,830 1,698FDIC insurance and supervisory fees 687 812 198 2,396 817Bank Shares Tax 693 752 323 2,796 1,158Intangible amortization 1,162 1,205 484 4,778 663Merger & restructuring expenses 56 171 9,496 914 11,176Advertising 128 163 61 633 329Other 1,646 1,651 813 6,377 2,644Total noninterest expense 18,302 18,452 22,285 74,904 45,832Income (loss) before income tax expense 9,705 9,125 (16,638) 33,595 (15,329)Income tax expense (benefit) 2,121 2,030 (3,641) 7,386 (3,361)NET INCOME (LOSS) $ 7,584 $ 7,095 $ (12,997) $ 26,209 $ (11,968)EARNINGS (LOSS) PER SHARE, BASIC $ 0.20 $ 0.19 $ (0.56) $ 0.71 $ (0.67)EARNINGS (LOSS) PER SHARE, DILUTED $ 0.20 $ 0.19 $ (0.56) $ 0.71 $ (0.67)WEIGHTED-AVERAGE COMMON SHARESOUTSTANDING,BASIC 37,045,701 36,983,637 23,063,202 36,990,672 17,753,914DILUTED 37,166,107 37,090,111 23,063,202 37,105,614 17,753,914
LINKBANCORP, Inc. and SubsidiariesFinancial Highlights (Unaudited) For the Three Months Ended For the Twelve Months Ended(Dollars In Thousands, except per share data) 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023Operating HighlightsNet Income (loss) $ 7,584 $ 7,095 $ (12,997) $ 26,209 $ (11,968)Net Interest Income 25,545 24,981 14,316 99,894 38,711Provision for Credit Losses 132 84 9,844 257 9,295Non-Interest Income 2,594 2,680 1,175 8,862 1,087Non-Interest Expense 18,302 18,452 22,285 74,904 45,832Earnings (loss) per Share, Basic 0.20 0.19 (0.56) 0.71 (0.67)Adjusted Earnings per Share, Basic (2) 0.21 0.20 0.09 0.73 0.36Earnings (loss) per Share, Diluted 0.20 0.19 (0.56) 0.71 (0.67)Adjusted Earnings per Share, Diluted (2) 0.21 0.19 0.09 0.73 0.36Selected Operating RatiosNet Interest Margin 3.85% 3.82% 3.55% 3.88% 3.09%Annualized Return on Assets (“ROA”) 1.06% 1.00% -2.96% 0.94% -0.88%Adjusted ROA2 1.07% 1.02% 0.49% 0.97% 0.47%Annualized Return on Equity (“ROE”) 10.82% 10.30% -28.24% 9.62% -7.88%Adjusted ROE2 10.88% 10.50% 4.70% 9.89% 4.21%Efficiency Ratio 65.04% 66.71% 143.86% 68.87% 115.16%Adjusted Efficiency Ratio3 64.84% 66.09% 82.56% 68.04% 82.19%Noninterest Income to Avg. Assets 0.36% 0.38% 0.27% 0.43% 0.08%Noninterest Expense to Avg. Assets 2.56% 2.61% 5.08% 3.60% 3.38% 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023Financial Condition DataTotal Assets $ 2,881,334 $ 2,879,941 $ 2,858,593 $ 2,785,669 $ 2,669,325Loans Receivable, Net 2,229,314 2,189,326 2,166,909 2,106,077 2,104,517Noninterest-bearing Deposits 658,646 658,473 661,292 618,277 624,780Interest-bearing Deposits 1,701,936 1,714,179 1,699,220 1,662,124 1,574,019Total Deposits 2,360,582 2,372,652 2,360,512 2,280,401 2,198,799Selected Balance Sheet RatiosTotal Capital Ratio1 11.55% 11.44% 11.09% 11.04% 10.62%Tier 1 Capital Ratio1 10.74% 10.62% 10.30% 10.24% 9.92%Common Equity Tier 1 Capital Ratio1 10.74% 10.62% 10.30% 10.24% 9.92%Leverage Ratio1 9.49% 9.41% 9.17% 9.23% 14.13%Tangible Common Equity to Tangible Assets4 7.16% 7.02% 6.82% 6.91% 7.08%Tangible Book Value per Share5 $ 5.36 $ 5.26 $ 5.07 $ 5.00 $ 4.90Asset Quality DataNon-performing Assets $ 17,171 $ 17,378 $ 10,589 $ 6,675 $ 7,250Non-performing Assets to Total Assets 0.60% 0.60% 0.37% 0.24% 0.27%Non-performing Loans to Total Loans 0.76% 0.78% 0.48% 0.31% 0.34%Allowance for Credit Losses – Loans (“ACLL”) $ 26,435 $ 26,542 $ 26,288 $ 23,842 $ 23,767ACLL to Total Loans6 1.17% 1.20% 1.20% 1.06% 1.06%ACLL to Nonperforming Assets 153.95% 152.73% 248.26% 357.18% 327.82%Net chargeoffs (recoveries) $ 252 $ (28) $ (20) $ 70 $ 195
(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.(6) – The historical ratios have not been recast for the reclassification of loans held for sale.
LINKBANCORP, Inc. and SubsidiariesNet Interest Margin – Quarter-To-Date (Unaudited) For the Three Months Ended December 31, 2024 2023(Dollars in thousands) Avg Bal Interest (2) Yield/Rate Avg Bal Interest (2) Yield/RateInt. Earn. Cash $ 128,802 $ 1,300 4.02% $ 63,572 $ 405 2.53%SecuritiesTaxable (1) 138,168 1,540 4.43% 88,632 951 4.26%Tax-Exempt 44,958 486 4.30% 38,269 362 3.75%Total Securities 183,126 2,026 4.40% 126,901 1,313 4.10%Total Cash Equiv. and Investments 311,928 3,326 4.24% 190,473 1,718 3.58%Total Loans (3)(4) 2,327,829 37,082 6.34% 1,411,129 21,461 6.03%Total Earning Assets 2,639,757 40,408 6.09% 1,601,602 23,179 5.74%Other Assets 202,693 138,537Total Assets $ 2,842,450 $ 1,740,139Interest bearing demand(5) $ 537,856 $ 3,043 2.25% $ 328,342 $ 1,746 2.11%Money market demand(5) 567,593 3,139 2.20% 367,821 2,287 2.47%Time deposits(5) 607,231 6,641 4.35% 348,580 3,412 3.88%Total Borrowings 153,117 1,938 5.04% 113,492 1,342 4.69%Total Interest-Bearing Liabilities 1,865,797 14,761 3.15% 1,158,235 8,787 3.01%Non Interest-Bearing Deposits(5) 665,276 371,051Total Cost of Funds $ 2,531,073 $ 14,761 2.32% $ 1,529,286 $ 8,787 2.28%Other Liabilities 32,493 28,244Total Liabilities $ 2,563,566 $ 1,557,530Shareholders' Equity $ 278,884 $ 182,609Total Liabilities & Shareholders' Equity $ 2,842,450 $ 1,740,139Net Interest Income/Spread (FTE) 25,647 2.94% 14,392 2.73%Tax-Equivalent Basis Adjustment (102) (76)Net Interest Income $ 25,545 $ 14,316Net Interest Margin 3.85% 3.55%
(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(4) Includes the balances of loans held for sale(5) Includes the balances of deposits held for sale
LINKBANCORP, Inc. and SubsidiariesNet Interest Margin – Linked Quarter-To-Date (Unaudited) For the Three Months Ended December 31, 2024 September 30, 2024(Dollars in thousands) Avg Bal Interest (2) Yield/Rate Avg Bal Interest (2) Yield/RateInt. Earn. Cash $ 128,802 $ 1,300 4.02% $ 114,383 $ 1,296 4.51%SecuritiesTaxable (1) 138,168 1,540 4.43% 133,443 1,683 5.02%Tax-Exempt 44,958 486 4.30% 42,800 453 4.21%Total Securities 183,126 2,026 4.40% 176,243 2,136 4.82%Total Cash Equiv. and Investments 311,928 3,326 4.24% 290,626 3,432 4.70%Total Loans (3)(4) 2,327,829 37,082 6.34% 2,313,228 36,856 6.34%Total Earning Assets 2,639,757 40,408 6.09% 2,603,854 40,288 6.16%Other Assets 202,693 208,407Total Assets $ 2,842,450 $ 2,812,261Interest bearing demand(5) $ 537,856 3,043 2.25% $ 497,100 $ 2,902 2.32%Money market demand(5) 567,593 3,139 2.20% 580,766 3,396 2.33%Time deposits(5) 607,231 6,641 4.35% 613,402 6,993 4.54%Total Borrowings 153,117 1,938 5.04% 153,699 1,922 4.97%Total Interest-Bearing Liabilities 1,865,797 14,761 3.15% 1,844,967 15,213 3.28%Non Interest-Bearing Deposits(5) 665,276 659,825Total Cost of Funds $ 2,531,073 $ 14,761 2.32% $ 2,504,792 $ 15,213 2.42%Other Liabilities 32,493 33,534Total Liabilities $ 2,563,566 $ 2,538,326Shareholders' Equity $ 278,884 $ 273,935Total Liabilities & Shareholders' Equity $ 2,842,450 $ 2,812,261Net Interest Income/Spread (FTE) 25,647 2.94% 25,075 2.88%Tax-Equivalent Basis Adjustment (102) (94)Net Interest Income $ 25,545 $ 24,981Net Interest Margin 3.85% 3.82%
(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(4) Includes the balances of loans held for sale(5) Includes the balances of deposits held for sale
LINKBANCORP, Inc. and SubsidiariesNet Interest Margin – Year-To-Date (Unaudited) For the Twelve Months Ended December 31, 2024 2023(Dollars in thousands) Avg Bal Interest (2) Yield/Rate Avg Bal Interest (2) Yield/RateInt. Earn. Cash $ 111,790 $ 4,890 4.37% $ 55,501 $ 1,966 3.54%SecuritiesTaxable (1) 128,140 6,206 4.84% 84,860 3,260 3.84%Tax-Exempt 43,134 1,839 4.26% 38,591 1,495 3.87%Total Securities 171,274 8,045 4.70% 123,451 4,755 3.85%Total Cash Equiv. and Investments 283,064 12,935 4.57% 178,952 6,721 3.76%Total Loans (3)(4) 2,290,618 146,175 6.38% 1,071,864 58,791 5.48%Total Earning Assets 2,573,682 159,110 6.18% 1,250,816 65,512 5.24%Other Assets 205,568 106,267Total Assets $ 2,779,250 $ 1,357,083Interest bearing demand(5) $ 476,686 $ 10,344 2.17% $ 269,615 $ 5,684 2.11%Money market demand(5) 579,232 12,981 2.24% 278,418 7,053 2.53%Time deposits(5) 617,894 27,708 4.48% 301,101 9,901 3.29%Total Borrowings 149,572 7,797 5.21% 90,468 3,849 4.25%Total Interest-Bearing Liabilities 1,823,384 58,830 3.23% 939,602 26,487 2.82%Non Interest-Bearing Deposits(5) 653,966 245,703Total Cost of Funds $ 2,477,350 $ 58,830 2.37% $ 1,185,305 $ 26,487 2.23%Other Liabilities 29,515 19,850Total Liabilities $ 2,506,865 $ 1,205,155Shareholders' Equity $ 272,385 $ 151,928Total Liabilities & Shareholders' Equity $ 2,779,250 $ 1,357,083Net Interest Income/Spread (FTE) 100,280 2.95% 39,025 2.42%Tax-Equivalent Basis Adjustment (386) (314)Net Interest Income $ 99,894 $ 38,711Net Interest Margin 3.88% 3.09%
(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(4) Includes the balances of loans held for sale(5) Includes the balances of deposits held for sale
LINKBANCORP, Inc. and SubsidiariesLoans Receivable Detail (Unaudited)(In Thousands) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Agriculture and farmland loans $ 67,741 $ 65,166 $ 66,937 $ 67,359 $ 65,861Construction loans 158,296 175,373 201,174 194,391 178,483Commercial & industrial loans 252,163 241,597 247,190 218,724 238,343Commercial real estate loansMultifamily 217,331 212,444 199,740 190,146 180,788Owner occupied 493,906 500,643 492,065 489,467 501,732Non-owner occupied 658,615 626,030 610,649 589,731 580,972Residential real estate loansFirst liens 399,476 400,869 400,098 403,300 402,433Second liens and lines of credit 78,410 73,591 71,168 71,060 70,747Consumer and other loans 17,087 17,498 15,514 16,810 16,756Municipal loans 3,886 4,296 4,362 4,473 5,244 2,346,911 2,317,507 2,308,897 2,245,461 2,241,359Deferred costs 645 634 478 356 174Total loans receivable 2,347,556 2,318,141 2,309,375 2,245,817 2,241,533Less: Loans held for sale 91,807 102,273 116,178 115,898 113,249Loans Held for Investment $ 2,255,749 $ 2,215,868 $ 2,193,197 $ 2,129,919 $ 2,128,284
LINKBANCORP, Inc. and SubsidiariesInvestments in Securities Detail (Unaudited) December 31, 2024(In Thousands) Amortized Net Fair Cost Unrealized Gains Value (Losses)Available for Sale:US Government Agency securities $ 13,017 $ 56 $ 13,073Obligations of state and political subdivisions 51,254 (4,053) 47,201Mortgage-backed securities in government-sponsored entities 88,289 (3,506) 84,783Other securities 542 (9) 533 $ 153,102 $ (7,512) $ 145,590 Amortized Net Unrealized Fair Value Allowance for Cost Losses Credit LossesHeld 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) December 31, 2023(In Thousands) Amortized Net Fair Cost Unrealized Gains Value (Losses)Available for Sale:US Government Agency securities $ 12,711 $ 274 $ 12,985US Government Treasury securities 4,925 17 4,942Obligations of state and political subdivisions 49,640 (2,595) 47,045Mortgage-backed securities in government-sponsored entities 50,795 (2,614) 48,181Other securities 2,301 36 2,337 $ 120,372 $ (4,882) $ 115,490 Amortized Net Unrealized Fair Value Allowance for Cost Losses Credit LossesHeld to Maturity:Corporate debentures $ 15,000 $ (1,592) $ 13,408 $ (512)Structured mortgage-backed securities 21,735 (907) 20,828 – $ 36,735 $ (2,499) $ 34,236 $ (512)
LINKBANCORP, Inc. and SubsidiariesDeposits Detail (Unaudited)(In Thousands) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Demand, noninterest-bearing $ 686,510 $ 687,536 $ 692,095 $ 653,719 $ 655,953Demand, interest-bearing 537,546 547,099 488,043 447,412 438,765Money market and savings 553,807 585,395 582,561 591,982 577,448Time deposits, $250 and over 167,165 169,616 156,621 147,898 134,324Time deposits, other 405,493 401,976 393,603 398,365 372,572Brokered deposits 103,615 75,000 144,429 146,653 119,411 2,454,136 2,466,622 2,457,352 2,386,029 2,298,473Less: Deposits held for sale 93,554 93,970 96,840 105,628 99,674Total deposits $ 2,360,582 $ 2,372,652 $ 2,360,512 $ 2,280,401 $ 2,198,799Average Deposits Detail, for the Three Months Ended (Unaudited)(In Thousands) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Demand, noninterest-bearing $ 665,276 $ 659,825 $ 657,939 $ 632,637 $ 371,051Demand, interest-bearing 537,856 497,100 446,109 424,781 328,342Money market and savings 567,593 580,766 581,223 587,455 367,821Time deposits 568,615 560,815 547,582 518,929 317,747Brokered deposits 38,616 52,587 95,337 89,263 30,832Total deposits $ 2,377,956 $ 2,351,093 $ 2,328,190 $ 2,253,065 $ 1,415,793Balances in table above include deposits held for sale
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 For the Twelve Months Ended(Dollars in thousands) 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023Net income (loss) $ 7,584 $ 7,095 $ (12,997) $ 26,209 $ (11,968)Average assets 2,842,450 2,812,261 1,740,139 2,779,250 1,357,083Return on average assets (annualized) 1.06% 1.00% -2.96% 0.94% -0.88%Net income (loss) 7,584 7,095 (12,997) 26,209 (11,968)Net losses on sale of securities – – – (4) 2,370Tax effect at 21% – – – 1 (498)Merger & restructuring expenses 56 171 9,496 914 11,176Tax effect at 21% (12) (36) (1,994) (192) (2,347)Non-purchase credit deteriorated provision for credit losses – – 9,694 – 9,694Tax effect at 21% – – (2,036) – (2,036)Adjusted Net Income (Non-GAAP) 7,628 7,230 2,163 26,928 6,391Average assets 2,842,450 2,812,261 1,740,139 2,779,250 1,357,083Adjusted return on average assets (annualized) 1.07% 1.02% 0.49% 0.97% 0.47%(Non-GAAP)
Adjusted Return on Average Shareholders' Equity For the Three Months Ended For the Twelve Months Ended(Dollars in thousands) 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023Net income (loss) $ 7,584 $ 7,095 $ (12,997) $ 26,209 $ (11,968)Average shareholders' equity 278,884 273,935 182,609 272,385 151,928Return on average shareholders' equity (annualized) 10.82% 10.30% -28.24% 9.62% -7.88%Net income (loss) 7,584 7,095 (12,997) 26,209 (11,968)Net (gains) losses on sale of securities – – – (4) 2,370Tax effect at 21% – – – 1 (498)Merger & restructuring expenses 56 171 9,496 914 11,176Tax effect at 21% (12) (36) (1,994) (192) (2,347)Non-purchase credit deteriorated provision for credit losses – – 9,694 – 9,694Tax effect at 21% – – (2,036) – (2,036)Adjusted Net Income (Non-GAAP) 7,628 7,230 2,163 26,928 6,391Average shareholders' equity 278,884 273,935 182,609 272,385 151,928Adjusted return on average shareholders' equity (annualized) 10.88% 10.50% 4.70% 9.89% 4.21%(Non-GAAP)
Adjusted Efficiency Ratio For the Three Months Ended For the Twelve Months Ended(Dollars in thousands) 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023GAAP-based efficiency ratio 65.04% 66.71% 143.86% 68.87% 115.16%Net interest income $ 25,545 $ 24,981 $ 14,316 $ 99,894 $ 38,711Noninterest income 2,594 2,680 1,175 8,862 1,087Less: net gains (losses) on sales of securities – – – 4 (2,370)Adjusted revenue (Non-GAAP) 28,139 27,661 15,491 108,752 42,168Total noninterest expense 18,302 18,452 22,285 74,904 45,832Less: Merger & restructuring expenses 56 171 9,496 914 11,176Adjusted non-interest expense 18,246 18,281 12,789 73,990 34,656Efficiency ratio, as adjusted (Non-GAAP) 64.84% 66.09% 82.56% 68.04% 82.19%
Adjusted Earnings Per Share For the Three Months Ended For the Twelve Months Ended(Dollars in thousands, except per share data) 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023GAAP-Based Earnings (Loss) Per Share, Basic $ 0.20 $ 0.19 $ (0.56) $ 0.71 $ (0.67)GAAP-Based Earnings (Loss) Per Share, Diluted $ 0.20 $ 0.19 $ (0.56) $ 0.71 $ (0.67)Net Income (Loss) $ 7,584 $ 7,095 $ (12,997) $ 26,209 $ (11,968)Net (gains) losses on sale of securities – – – (4) 2,370Tax effect at 21% – – – 1 (498)Merger & restructuring expenses 56 171 9,496 914 11,176Tax effect at 21% (12) (36) (1,994) (192) (2,347)Non-purchase credit deteriorated provision for credit losses – – 9,694 – 9,694Tax effect at 21% – – (2,036) – (2,036)Adjusted Net Income (Non-GAAP) 7,628 7,230 2,163 26,928 6,391Adjusted Earnings per Share, Basic (Non-GAAP) $ 0.21 $ 0.20 $ 0.09 $ 0.73 $ 0.36Adjusted Earnings per Share, Diluted (Non-GAAP) $ 0.21 $ 0.19 $ 0.09 $ 0.73 $ 0.36
Tangible Common Equity and Tangible Book Value(Dollars in thousands, except per share data) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023Tangible Common Equity (Dollars in thousands, except for share data)Total shareholders' equity $ 280,221 $ 277,353 $ 271,409 $ 268,243 $ 265,796Adjustments:Goodwill (58,806) (58,806) (58,806) (56,968) (56,968)Other intangible assets (20,955) (22,118) (23,323) (24,526) (25,733)Tangible common equity (Non-GAAP) $ 200,460 $ 196,429 $ 189,280 $ 186,749 $ 183,095Common shares outstanding 37,370,917 37,361,560 37,356,278 37,348,151 37,340,700Book value per common share $ 7.50 $ 7.42 $ 7.27 $ 7.18 $ 7.12Tangible book value per common share $ 5.36 $ 5.26 $ 5.07 $ 5.00 $ 4.90(Non-GAAP)Tangible AssetsTotal assets $ 2,881,334 $ 2,879,941 $ 2,858,593 $ 2,785,669 $ 2,669,325Adjustments:Goodwill (58,806) (58,806) (58,806) (56,968) (56,968)Other intangible assets (20,955) (22,118) (23,323) (24,526) (25,733)Tangible assets (Non-GAAP) $ 2,801,573 $ 2,799,017 $ 2,776,464 $ 2,704,175 $ 2,586,624Tangible common equity to tangible 7.16% 7.02% 6.82% 6.91% 7.08%assets (Non-GAAP)
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP) For the Three Months Ended For the Twelve Months Ended(Dollars in thousands, except per share data) 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023Net Income (Loss) (GAAP) $ 7,584 $ 7,095 $ (12,997) $ 26,209 $ (11,968)Net (gains) losses on sale of securities – – – (4) 2,370Tax effect at 21% – – – 1 (498)Merger & restructuring expenses 56 171 9,496 914 11,176Tax effect at 21% (12) (36) (1,994) (192) (2,347)Adjusted Net Income (Non-GAAP) 7,628 7,230 (5,495) 26,928 (1,267)Income tax expense (benefit) 2,121 2,030 (3,641) 7,386 (3,361)Provision for credit losses 132 84 9,844 257 9,295Tax effect included in Adjusted Net Income 12 36 1,994 191 2,845Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP) $ 9,893 $ 9,380 $ 2,702 $ 34,762 $ 7,512
Contact:Nicole DavisCorporate and Investor Relations Officer717.803.8895IR@LINKBANCORP.COM
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