HARRISBURG, Pa., July 29,
2024 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB)
(the "Company"), the parent company of LINKBANK (the "Bank")
reported net income of $5.8 million,
or $0.16 per diluted share, for the
quarter ended June 30, 2024.
Excluding expenses associated with the sale of its New Jersey
branches and additional branch consolidations, adjusted earnings
were $6.3 million1, or
$0.171 per diluted
share for the second quarter of 2024.
Second Quarter 2024 Highlights
- Total loans2 increased $63.6
million, or 11.4% annualized from $2.25 billion at March 31,
2024 to $2.31 billion at
June 30, 2024, led by strong growth
of $28.5 million in commercial &
industrial loans over the period.
- Total deposits2 increased $71.3 million, or 12.0% annualized from
$2.39 billion at March 31, 2024 to $2.46
billion at June 30, 2024,
including growth of $38.4 million in
noninterest bearing demand account balances at quarter end.
- Noninterest expense decreased $350
thousand quarter over quarter to $18.9 million in the second quarter of 2024.
Excluding merger expenses and costs associated with the Branch Sale
and branch consolidations, adjusted noninterest expense was
$18.3 million in the second quarter
of 2024, a $925 thousand decrease
compared to $19.2 million in the
first quarter of 2024.1
- Net interest income before provision for credit losses was
$24.5 million for the second quarter
of 2024 compared to $24.9 million in
the first quarter of 2024, and was impacted by a
quarter-over-quarter decline in purchase accounting accretion as
well as increased funding costs due to continued competition for
deposits to support quality loan growth and maintain prudent
on-balance sheet liquidity. Net interest margin was 3.83% for the
second quarter of 2024 compared to 4.03% for the first quarter of
2024.
- Non-performing assets were $10.6
million, representing 0.37% of total assets at June 30, 2024, compared to $6.7 million, representing 0.24% of total assets
at March 31, 2024. The allowance for
credit losses-loans was 1.20% of total loans held for investment at
June 30, 2024, compared to 1.06% at
March 31, 2024. The allowance was
impacted by the reclassification of loans related to the Branch
Sale as assets held for sale, offset by net loan growth in the
quarter, as well as a loan acquired in the merger with Partners
Bancorp (the "Partners Merger") which experienced credit
deterioration that was present at the time of the merger and
required a day one purchase accounting adjustment that increased
the allowance for credit losses by $2.3
million and increased goodwill by $1.8 million.
- On May 9, 2024, the Company
announced that LINBANK 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"). The
transaction is subject to customary closing conditions, including
regulatory approvals, and is expected to close in the second half
of 2024.
As a result of the Branch Sale announcement, associated assets
and liabilities 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 pleased by the consistent improvement in performance
achieved through the hard work and dedication of all of our teams,
evidenced by the results of the second quarter of 2024, including
increased profitability metrics and strong commercial loan and core
deposit growth," said Andrew Samuel,
Chief Executive Officer of LINKBANCORP. "The consolidation of
three client solution centers was completed during the quarter and
we remain on target to conclude the pending sale of the
New Jersey operations in the
second half of the year." He continued, "We continue to be
very focused on achieving further improvements in profitability and
customer experience to meet our goals for the second half of the
year."
|
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 $116.2 million and $96.8 million at June 30,
2024. These balances in the first quarter of 2024 were $115.9
million and $105.6 million respectively at March 31,
2024.
|
Income Statement
Net interest income before the provision for credit losses for
the second quarter of 2024 was $24.5
million compared to $24.9
million in the first quarter of 2024. Net interest margin
was 3.83% for the second quarter of 2024 compared to 4.03% for the
first quarter of 2024. For the second quarter of 2024, net
interest income was impacted by the amortization of purchase
accounting adjustments, as interest income from purchase accounting
accretion during this period was approximately $568 thousand less than purchase accounting
accretion recognized in the first quarter of 2024. Cost of
funds increased to 2.43% for the second quarter of 2024 compared to
2.33% for the first quarter of 2024, reflecting continued pressure
from competition for deposits in the Bank's markets.
Noninterest income increased quarter-over-quarter to
$1.9 million for the second quarter
of 2024 compared to $1.7 million for
the first quarter of 2024, and included an $85 thousand increase in service charges on
deposit accounts.
Noninterest expense for the second quarter of 2024 was
$18.9 million compared to
$19.3 million for the first
quarter of 2024. Excluding one-time merger expenses and costs
associated with the Branch Sale and branch consolidations of
$631 thousand in the second quarter
of 2024 and $56 thousand in the first
quarter of 2024, noninterest expense decreased by $925 thousand to $18.3
million in the second quarter of 2024 from $19.2 million in the first quarter1.
This improvement was largely driven by a $1.2 million decrease in salaries and employee
benefits following the reduction in headcount relating to the
Partners Merger.
Income tax expense was $1.6
million for the second quarter of 2024, reflecting an
effective tax rate of 22.0%.
Balance Sheet
Total assets were $2.86 billion at
June 30, 2024 compared to
$2.79 billion at March 31, 2024 and $1.31
billion at June 30, 2023.
Deposits and net loans as of June 30,
2024 totaled $2.36 billion and
$2.17 billion, respectively, compared
to deposits and net loans of $2.28
billion and $2.11 billion,
respectively, at March 31, 2024 and
$1.03 billion and $959.3 million, respectively, at June 30, 2023. Deposits and net loans
exclude balances held for sale in the Branch Sale of $96.8 million and $116.2
million, respectively, at June 30,
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.
Including loans held for sale, total loans increased
$63.6 million, from $2.25 billion at March 31,
2024 to $2.31 billion at
June 30, 2024, led by strong growth
of $28.5 million in commercial &
industrial loans over the period. Total commercial loan
commitments for the second quarter of 2024 were $117.9 million with funded balances of
$81.8 million. The average commercial
loan commitment originated during the second quarter of 2024
totaled approximately $771 thousand
with an average outstanding funded balance of $534 thousand.
Including deposits held for sale, total deposits at June 30, 2024 totaled $2.46 billion, an increase of $71.3 million from $2.39
billion at March 31, 2024.
This increase included growth of $38.4
million in noninterest bearing demand accounts and
$31.2 million in interest bearing
demand, money market and savings account balances.
The Company maintains strong on-balance sheet liquidity, as cash
and cash equivalents increased to $181.7
million at June 30, 2024
compared to $172.3 million at
March 31, 2024.
Shareholders' equity increased from $268.2 million at March
31, 2024 to $271.4 million at
June 30, 2024 primarily as a result
of a $3.1 million increase in
retained earnings. Book value per share increased to
$7.27 at June
30, 2024 compared to $7.18 at
March 31, 2024. Tangible book
value per share increased to $5.07 at
June 30, 2024 compared to
$5.00 at March
31, 20241.
|
1 See
Appendix A – Reconciliation to Non-GAAP Financial Measures for the
computation of this non-GAAP measure.
|
Asset Quality
In the second quarter of 2024, the Company did not record a
provision for credit losses, compared to a $40 thousand provision for credit losses in the
first quarter of 2024. Additional provision was not required
due in part to reclassification of loans related to the Branch Sale
as assets held for sale, offset by net loan growth in the quarter,
as well as an increase in the allowance through an adjustment to
goodwill related to purchase accounting described below.
As of June 30, 2024, the Company's
non-performing assets were $10.6
million, representing 0.37% of total assets, compared to
$6.7 million, representing 0.24% of
total assets at March 31, 2024.
The increase relates primarily to a single loan for a commercial
property acquired in the Partners Merger with an outstanding
principal balance of approximately $3.9
million at June 30,
2024. Loans 30-89 days past due at June 30, 2024 were $5.15
million, representing 0.24% of total loans, an improvement
compared to $15.3 million or 0.72% of
loans at March 31, 2024.
The allowance for credit losses-loans was $26.3 million, or 1.20% of total loans held for
investment at June 30, 2024, compared
to $23.8 million, or 1.06% of total
loans held for investment at March 31,
2024. The increase was driven primarily by a
specific allowance related to a loan acquired in the Partners
Merger as described above, which experienced credit deterioration
that was present at the time of the merger and required a day one
purchase accounting adjustment that increased the allowance for
credit losses by $2.3 million and
increased goodwill by $1.8 million.
The allowance for credit losses-loans to nonperforming assets was
248.26% at June 30, 2024, compared to
357.18% at March 31, 2024.
Capital
The Bank's regulatory capital ratios were well in excess of
regulatory minimums to be considered "well capitalized" as of
June 30, 2024. The Bank's Total
Capital Ratio and Tier 1 Capital Ratio were 11.09% and
10.30% respectively, at June 30,
2024, compared to 10.62% and 9.92%, respectively, at
December 31, 2023 and 11.04% and
10.24%, respectively, at March 31,
2023. The Company's ratio of Tangible Common Equity to
Tangible Assets was 6.82%1 at March 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
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; risks related to the integration of the merger
with Partners; 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.
Given that the Company's merger with Partners Bancorp
("Partners") was completed on November 30,
2023 (the "Partners Merger"), reported results prior to the
fourth quarter of 2023 included in the following tables reflect
legacy LINKBANCORP results only.
LB-E
LB-D
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Consolidated Balance
Sheet (Unaudited)
|
|
|
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June 30,
2023
|
|
(In Thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
cash equivalents
|
|
$
14,516
|
|
$
13,552
|
|
$
13,089
|
|
$
5,447
|
|
$
4,736
|
|
Interest-bearing
deposits with other institutions
|
|
167,141
|
|
158,731
|
|
67,101
|
|
62,532
|
|
118,438
|
|
Cash and cash
equivalents
|
|
181,657
|
|
172,283
|
|
80,190
|
|
67,979
|
|
123,174
|
|
Certificates of deposit
with other banks
|
|
—
|
|
—
|
|
—
|
|
249
|
|
498
|
|
Securities available
for sale, at fair value
|
|
140,121
|
|
133,949
|
|
115,490
|
|
78,779
|
|
83,620
|
|
Securities held to
maturity, net of allowance for credit losses
|
|
35,343
|
|
36,109
|
|
36,223
|
|
37,266
|
|
38,220
|
|
Loans receivable,
gross
|
|
2,193,197
|
|
2,129,919
|
|
2,128,284
|
|
978,912
|
|
969,533
|
|
Allowance for credit
losses - loans
|
|
(26,288)
|
|
(23,842)
|
|
(23,767)
|
|
(9,964)
|
|
(10,228)
|
|
Loans receivable,
net
|
|
2,166,909
|
|
2,106,077
|
|
2,104,517
|
|
968,948
|
|
959,305
|
|
Investments in
restricted bank stock
|
|
4,928
|
|
4,286
|
|
3,965
|
|
3,107
|
|
5,544
|
|
Premises and equipment,
net
|
|
18,364
|
|
20,102
|
|
20,130
|
|
6,414
|
|
6,292
|
|
Right-of-Use Asset –
premises
|
|
13,970
|
|
14,577
|
|
15,497
|
|
9,727
|
|
9,896
|
|
Bank-owned life
insurance
|
|
49,616
|
|
49,230
|
|
48,847
|
|
24,732
|
|
24,554
|
|
Goodwill and other
intangible assets
|
|
82,129
|
|
81,494
|
|
82,701
|
|
36,715
|
|
36,774
|
|
Deferred tax
asset
|
|
22,024
|
|
22,717
|
|
24,153
|
|
6,880
|
|
6,571
|
|
Assets held for
sale
|
|
118,362
|
|
118,115
|
|
115,499
|
|
—
|
|
—
|
|
Accrued interest
receivable and other assets
|
|
25,170
|
|
26,730
|
|
22,113
|
|
14,899
|
|
14,024
|
|
TOTAL
ASSETS
|
|
$
2,858,593
|
|
$
2,785,669
|
|
$
2,669,325
|
|
$
1,255,695
|
|
$
1,308,472
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand, noninterest
bearing
|
|
$
661,292
|
|
$
618,277
|
|
$
624,780
|
|
$
210,404
|
|
$
240,729
|
|
Interest
bearing
|
|
1,699,220
|
|
1,662,124
|
|
1,574,019
|
|
831,368
|
|
794,113
|
|
Total
deposits
|
|
2,360,512
|
|
2,280,401
|
|
2,198,799
|
|
1,041,772
|
|
1,034,842
|
|
Long-term
borrowings
|
|
40,000
|
|
40,000
|
|
—
|
|
—
|
|
74,899
|
|
Short-term
borrowings
|
|
—
|
|
—
|
|
10,000
|
|
15,000
|
|
—
|
|
Note payable
|
|
578
|
|
584
|
|
590
|
|
—
|
|
—
|
|
Subordinated
debt
|
|
61,706
|
|
61,573
|
|
61,444
|
|
40,354
|
|
40,398
|
|
Lease
liabilities
|
|
14,746
|
|
15,357
|
|
16,361
|
|
9,728
|
|
9,896
|
|
Liabilities held for
sale
|
|
96,916
|
|
105,716
|
|
99,777
|
|
—
|
|
—
|
|
Accrued interest
payable and other liabilities
|
|
12,726
|
|
13,795
|
|
16,558
|
|
7,490
|
|
5,985
|
|
TOTAL
LIABILITIES
|
|
2,587,184
|
|
2,517,426
|
|
2,403,529
|
|
1,114,344
|
|
1,166,020
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Common stock
|
|
370
|
|
369
|
|
369
|
|
162
|
|
162
|
|
Surplus
|
|
263,795
|
|
263,577
|
|
263,310
|
|
127,856
|
|
127,818
|
|
Retained
earnings
|
|
10,826
|
|
7,724
|
|
4,843
|
|
19,062
|
|
19,039
|
|
Accumulated other
comprehensive loss
|
|
(3,582)
|
|
(3,427)
|
|
(3,209)
|
|
(5,729)
|
|
(4,567)
|
|
Total
equity attributable to parent
|
|
271,409
|
|
268,243
|
|
265,313
|
|
141,351
|
|
142,452
|
|
Noncontrolling interest in consolidated subsidiary
|
|
—
|
|
—
|
|
483
|
|
—
|
|
—
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
|
271,409
|
|
268,243
|
|
265,796
|
|
141,351
|
|
142,452
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
2,858,593
|
|
$
2,785,669
|
|
$
2,669,325
|
|
$
1,255,695
|
|
$
1,308,472
|
|
Common shares
outstanding
|
|
37,356,278
|
|
37,348,151
|
|
37,340,700
|
|
16,235,871
|
|
16,228,440
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Consolidated
Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
6/30/2024
|
|
3/31/2024
|
|
6/30/2023
|
|
|
|
6/30/2024
|
|
6/30/2023
|
|
(In Thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST AND DIVIDEND
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable,
including fees
|
|
$
36,112
|
|
$
36,125
|
|
$
12,499
|
|
|
|
$
72,237
|
|
$
24,261
|
|
Other
|
|
3,337
|
|
2,650
|
|
1,827
|
|
|
|
5,987
|
|
3,055
|
|
Total interest and
dividend income
|
|
39,449
|
|
38,775
|
|
14,326
|
|
|
|
78,224
|
|
27,316
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
13,071
|
|
11,847
|
|
5,242
|
|
|
|
24,918
|
|
9,759
|
|
Other
Borrowings
|
|
932
|
|
1,086
|
|
558
|
|
|
|
2,018
|
|
645
|
|
Subordinated
Debt
|
|
962
|
|
958
|
|
437
|
|
|
|
1,920
|
|
869
|
|
Total interest
expense
|
|
14,965
|
|
13,891
|
|
6,237
|
|
|
|
28,856
|
|
11,273
|
|
NET INTEREST INCOME
BEFORE
PROVISION FOR (CREDIT TO) CREDIT LOSSES
|
|
24,484
|
|
24,884
|
|
8,089
|
|
|
|
49,368
|
|
16,043
|
|
Provision for (credit
to) credit losses
|
|
—
|
|
40
|
|
(493)
|
|
|
|
40
|
|
(200)
|
|
NET INTEREST INCOME
AFTER
PROVISION FOR CREDIT LOSSES
|
|
24,484
|
|
24,844
|
|
8,582
|
|
|
|
49,328
|
|
16,243
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
865
|
|
780
|
|
197
|
|
|
|
1,645
|
|
396
|
|
Bank-owned life
insurance
|
|
386
|
|
383
|
|
170
|
|
|
|
769
|
|
310
|
|
Net realized gains
(losses) on the sale of debt securities
|
|
4
|
|
—
|
|
—
|
|
|
|
4
|
|
(2,370)
|
|
Gain on sale of
loans
|
|
12
|
|
50
|
|
296
|
|
|
|
62
|
|
296
|
|
Other
|
|
591
|
|
516
|
|
223
|
|
|
|
1,107
|
|
401
|
|
Total noninterest
income
|
|
1,858
|
|
1,729
|
|
886
|
|
|
|
3,587
|
|
(967)
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
9,941
|
|
11,118
|
|
4,037
|
|
|
|
21,059
|
|
8,157
|
|
Occupancy
|
|
1,559
|
|
1,578
|
|
696
|
|
|
|
3,137
|
|
1,403
|
|
Equipment and data
processing
|
|
1,824
|
|
1,826
|
|
893
|
|
|
|
3,650
|
|
1,586
|
|
Professional
fees
|
|
788
|
|
748
|
|
418
|
|
|
|
1,536
|
|
799
|
|
FDIC
insurance
|
|
545
|
|
352
|
|
184
|
|
|
|
897
|
|
343
|
|
Bank Shares
Tax
|
|
760
|
|
591
|
|
278
|
|
|
|
1,351
|
|
556
|
|
Intangible
amortization
|
|
1,204
|
|
1,207
|
|
59
|
|
|
|
2,411
|
|
120
|
|
Merger &
restructuring expenses
|
|
631
|
|
56
|
|
315
|
|
|
|
687
|
|
902
|
|
Advertising
|
|
241
|
|
234
|
|
104
|
|
|
|
475
|
|
191
|
|
Other
|
|
1,407
|
|
1,540
|
|
832
|
|
|
|
2,947
|
|
1,496
|
|
Total noninterest
expense
|
|
18,900
|
|
19,250
|
|
7,816
|
|
|
|
38,150
|
|
15,553
|
|
Income (loss) before
income tax expense (benefit)
|
|
7,442
|
|
7,323
|
|
1,652
|
|
|
|
14,765
|
|
(277)
|
|
Income tax expense
(benefit)
|
|
1,638
|
|
1,597
|
|
305
|
|
|
|
3,235
|
|
(70)
|
|
NET INCOME
(LOSS)
|
|
$
5,804
|
|
$
5,726
|
|
$
1,347
|
|
|
|
$
11,530
|
|
$
(207)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE, BASIC
|
|
$
0.16
|
|
$
0.15
|
|
$
0.08
|
|
|
|
$
0.31
|
|
$
(0.01)
|
|
EARNINGS (LOSS)
PER SHARE, DILUTED
|
|
$
0.16
|
|
$
0.15
|
|
$
0.08
|
|
|
|
$
0.31
|
|
$
(0.01)
|
|
WEIGHTED-AVERAGE COMMON
SHARES
OUTSTANDING,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
36,970,768
|
|
36,962,005
|
|
16,228,069
|
|
|
|
36,966,371
|
|
15,856,574
|
|
DILUTED
|
|
37,040,748
|
|
37,045,230
|
|
16,228,069
|
|
|
|
37,042,895
|
|
15,856,574
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Financial Highlights
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
('Dollars In
Thousands, except per share data)
|
6/30/2024
|
|
3/31/2024
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
Operating
Highlights
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
$
5,804
|
|
$
5,726
|
|
$
1,347
|
|
$
11,530
|
|
$
(207)
|
|
Net Interest
Income
|
24,484
|
|
24,884
|
|
8,089
|
|
49,368
|
|
16,043
|
|
Provision for (credit
to) Credit Losses
|
-
|
|
40
|
|
(493)
|
|
40
|
|
(200)
|
|
Non-Interest
Income
|
1,858
|
|
1,729
|
|
886
|
|
3,587
|
|
(967)
|
|
Non-Interest
Expense
|
18,900
|
|
19,250
|
|
7,816
|
|
38,150
|
|
15,553
|
|
Earnings (loss) per
Share, Basic
|
0.16
|
|
0.15
|
|
0.08
|
|
0.31
|
|
(0.01)
|
|
Adjusted Earnings per
Share, Basic (2)
|
0.17
|
|
0.16
|
|
0.10
|
|
0.33
|
|
0.15
|
|
Earnings (loss) per
Share, Diluted
|
0.16
|
|
0.15
|
|
0.08
|
|
0.31
|
|
(0.01)
|
|
Adjusted Earnings per
Share, Diluted (2)
|
0.17
|
|
0.16
|
|
0.10
|
|
0.33
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Ratios
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
3.83 %
|
|
4.03 %
|
|
2.81 %
|
|
3.92 %
|
|
2.86 %
|
|
Annualized Return on
Assets ("ROA")
|
0.84 %
|
|
0.86 %
|
|
0.43 %
|
|
0.85 %
|
|
-0.03 %
|
|
Adjusted
ROA2
|
0.91 %
|
|
0.86 %
|
|
0.51 %
|
|
0.89 %
|
|
0.39 %
|
|
Annualized Return on
Equity ("ROE")
|
8.65 %
|
|
8.63 %
|
|
3.81 %
|
|
8.61 %
|
|
-0.30 %
|
|
Adjusted
ROE2
|
9.39 %
|
|
8.70 %
|
|
4.51 %
|
|
9.04 %
|
|
3.42 %
|
|
Efficiency
Ratio
|
71.75 %
|
|
72.33 %
|
|
87.09 %
|
|
72.04 %
|
|
103.16 %
|
|
Adjusted Efficiency
Ratio3
|
69.34 %
|
|
72.12 %
|
|
83.58 %
|
|
70.75 %
|
|
83.98 %
|
|
Noninterest Income to
Avg. Assets
|
0.27 %
|
|
0.26 %
|
|
0.28 %
|
|
0.26 %
|
|
-0.16 %
|
|
Noninterest Expense to
Avg. Assets
|
2.73 %
|
|
2.88 %
|
|
2.51 %
|
|
2.80 %
|
|
2.56 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
6/30/2023
|
|
Financial Condition
Data
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
2,858,593
|
|
$
2,785,669
|
|
$
2,669,325
|
|
$
1,255,695
|
|
$
1,308,472
|
|
Loans Receivable,
Net
|
2,166,909
|
|
2,106,077
|
|
2,104,517
|
|
968,948
|
|
959,305
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
Deposits
|
661,292
|
|
618,277
|
|
624,780
|
|
210,404
|
|
240,729
|
|
Interest-bearing
Deposits
|
1,699,220
|
|
1,662,124
|
|
1,574,019
|
|
831,368
|
|
794,113
|
|
Total
Deposits
|
2,360,512
|
|
2,280,401
|
|
2,198,799
|
|
1,041,772
|
|
1,034,842
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance
Sheet Ratios
|
|
|
|
|
|
|
|
|
|
|
Total Capital
Ratio1
|
11.09 %
|
|
11.04 %
|
|
10.62 %
|
|
12.92 %
|
|
12.88 %
|
|
Tier 1 Capital
Ratio1
|
10.30 %
|
|
10.24 %
|
|
9.92 %
|
|
12.37 %
|
|
12.29 %
|
|
Common Equity Tier 1
Capital Ratio1
|
10.30 %
|
|
10.24 %
|
|
9.92 %
|
|
12.37 %
|
|
12.29 %
|
|
Leverage
Ratio1
|
9.17 %
|
|
9.23 %
|
|
14.13 %
|
|
10.71 %
|
|
10.41 %
|
|
Tangible Common Equity
to Tangible Assets4
|
6.82 %
|
|
6.91 %
|
|
7.08 %
|
|
8.58 %
|
|
8.31 %
|
|
Tangible Book Value per
Share5
|
$
5.07
|
|
$
5.00
|
|
$
4.90
|
|
$
6.44
|
|
$
6.51
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Data
|
|
|
|
|
|
|
|
|
|
|
Non-performing
Assets
|
$
10,589
|
|
$
6,675
|
|
$
7,250
|
|
$
2,958
|
|
$
2,856
|
|
Non-performing Assets
to Total Assets
|
0.37 %
|
|
0.24 %
|
|
0.27 %
|
|
0.24 %
|
|
0.22 %
|
|
Non-performing Loans to
Total Loans
|
0.48 %
|
|
0.31 %
|
|
0.34 %
|
|
0.30 %
|
|
0.29 %
|
|
Allowance for Credit
Losses - Loans ("ACLL")
|
$
26,288
|
|
$
23,842
|
|
$
23,767
|
|
$
9,964
|
|
$
10,228
|
|
ACLL to Total
Loans6
|
1.20 %
|
|
1.06 %
|
|
1.06 %
|
|
1.02 %
|
|
1.05 %
|
|
ACLL to Nonperforming
Assets
|
248.26 %
|
|
357.18 %
|
|
327.82 %
|
|
336.85 %
|
|
358.12 %
|
|
Net (recoveries)
chargeoffs
|
$
(20)
|
|
$
70
|
|
$
195
|
|
$
(12)
|
|
$
(97)
|
|
|
|
|
|
|
|
|
|
|
|
(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 Subsidiaries
|
|
Net Interest Margin
- Quarter-To-Date (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
2024
|
|
2023
|
|
(Dollars in
thousands)
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
121,340
|
|
$ 1,395
|
|
4.62 %
|
|
$
66,149
|
|
$
708
|
|
4.29 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
125,885
|
|
1,592
|
|
5.09 %
|
|
86,366
|
|
822
|
|
3.82 %
|
|
Tax-Exempt
|
|
41,776
|
|
443
|
|
4.26 %
|
|
39,139
|
|
378
|
|
3.87 %
|
|
Total
Securities
|
|
167,661
|
|
2,035
|
|
4.88 %
|
|
125,505
|
|
1,200
|
|
3.84 %
|
|
Total Cash Equiv. and
Investments
|
|
289,001
|
|
3,430
|
|
4.77 %
|
|
191,654
|
|
1,908
|
|
3.99 %
|
|
Total Loans
(3)(4)
|
|
2,280,041
|
|
36,112
|
|
6.37 %
|
|
963,824
|
|
12,499
|
|
5.20 %
|
|
Total Earning
Assets
|
|
2,569,042
|
|
39,542
|
|
6.19 %
|
|
1,155,478
|
|
14,407
|
|
5.00 %
|
|
Other Assets
|
|
212,097
|
|
|
|
|
|
95,531
|
|
|
|
|
|
Total
Assets
|
|
$
2,781,139
|
|
|
|
|
|
$
1,251,009
|
|
|
|
|
|
Interest bearing
demand(5)
|
|
$
446,109
|
|
$ 2,457
|
|
2.22 %
|
|
$
243,539
|
|
$ 1,261
|
|
2.08 %
|
|
Money market
demand(5)
|
|
581,223
|
|
3,271
|
|
2.26 %
|
|
244,355
|
|
1,589
|
|
2.61 %
|
|
Time
deposits(5)
|
|
642,919
|
|
7,343
|
|
4.59 %
|
|
299,398
|
|
2,392
|
|
3.20 %
|
|
Total
Borrowings
|
|
151,596
|
|
1,894
|
|
5.02 %
|
|
95,792
|
|
995
|
|
4.17 %
|
|
Total Interest-Bearing
Liabilities
|
|
1,821,847
|
|
14,965
|
|
3.30 %
|
|
883,084
|
|
6,237
|
|
2.83 %
|
|
Non Interest-Bearing
Deposits(5)
|
|
657,939
|
|
|
|
|
|
209,072
|
|
|
|
|
|
Total Cost of
Funds
|
|
$
2,479,786
|
|
$
14,965
|
|
2.43 %
|
|
$
1,092,156
|
|
$
6,237
|
|
2.29 %
|
|
Other
Liabilities
|
|
31,519
|
|
|
|
|
|
17,073
|
|
|
|
|
|
Total
Liabilities
|
|
$
2,511,305
|
|
|
|
|
|
$
1,109,229
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
269,834
|
|
|
|
|
|
$
141,780
|
|
|
|
|
|
Total Liabilities
& Shareholders' Equity
|
|
$
2,781,139
|
|
|
|
|
|
$
1,251,009
|
|
|
|
|
|
Net Interest
Income/Spread (FTE)
|
|
|
|
24,577
|
|
2.89 %
|
|
|
|
8,170
|
|
2.17 %
|
|
Tax-Equivalent Basis
Adjustment
|
|
|
|
(93)
|
|
|
|
|
|
(81)
|
|
|
|
Net Interest
Income
|
|
|
|
$
24,484
|
|
|
|
|
|
$
8,089
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
3.83 %
|
|
|
|
|
|
2.81 %
|
|
|
(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 Subsidiaries
|
|
Net Interest Margin
- Linked Quarter-To-Date (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
June 30,
2024
|
|
March 31,
2024
|
|
(Dollars in
thousands)
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
121,340
|
|
$ 1,395
|
|
4.62 %
|
|
$
82,420
|
|
$
898
|
|
4.38 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
125,885
|
|
1,592
|
|
5.09 %
|
|
114,896
|
|
1,391
|
|
4.87 %
|
|
Tax-Exempt
|
|
41,776
|
|
443
|
|
4.26 %
|
|
42,984
|
|
457
|
|
4.28 %
|
|
Total
Securities
|
|
167,661
|
|
2,035
|
|
4.88 %
|
|
157,880
|
|
1,848
|
|
4.71 %
|
|
Total Cash Equiv. and
Investments
|
|
289,001
|
|
3,430
|
|
4.77 %
|
|
240,300
|
|
2,746
|
|
4.60 %
|
|
Total Loans
(3)(4)
|
|
2,280,041
|
|
36,112
|
|
6.37 %
|
|
2,240,714
|
|
36,125
|
|
6.48 %
|
|
Total Earning
Assets
|
|
2,569,042
|
|
39,542
|
|
6.19 %
|
|
2,481,014
|
|
38,871
|
|
6.30 %
|
|
Other Assets
|
|
212,097
|
|
|
|
|
|
210,826
|
|
|
|
|
|
Total
Assets
|
|
$
2,781,139
|
|
|
|
|
|
$
2,691,840
|
|
|
|
|
|
Interest bearing
demand(5)
|
|
$
446,109
|
|
$ 2,457
|
|
2.22 %
|
|
$
424,781
|
|
$ 1,942
|
|
1.84 %
|
|
Money market
demand(5)
|
|
581,223
|
|
3,271
|
|
2.26 %
|
|
587,455
|
|
3,174
|
|
2.17 %
|
|
Time
deposits(5)
|
|
642,919
|
|
7,343
|
|
4.59 %
|
|
608,192
|
|
6,731
|
|
4.45 %
|
|
Total
Borrowings
|
|
151,596
|
|
1,894
|
|
5.02 %
|
|
140,621
|
|
2,044
|
|
5.85 %
|
|
Total Interest-Bearing
Liabilities
|
|
1,821,847
|
|
14,965
|
|
3.30 %
|
|
1,761,049
|
|
13,891
|
|
3.17 %
|
|
Non Interest-Bearing
Deposits(5)
|
|
657,939
|
|
|
|
|
|
632,637
|
|
|
|
|
|
Total Cost of
Funds
|
|
$
2,479,786
|
|
$
14,965
|
|
2.43 %
|
|
$
2,393,686
|
|
$
13,891
|
|
2.33 %
|
|
Other
Liabilities
|
|
31,519
|
|
|
|
|
|
31,359
|
|
|
|
|
|
Total
Liabilities
|
|
$
2,511,305
|
|
|
|
|
|
$
2,425,045
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
269,834
|
|
|
|
|
|
$
266,795
|
|
|
|
|
|
Total Liabilities
& Shareholders' Equity
|
|
$
2,781,139
|
|
|
|
|
|
$
2,691,840
|
|
|
|
|
|
Net Interest
Income/Spread (FTE)
|
|
|
|
24,577
|
|
2.89 %
|
|
|
|
24,980
|
|
3.13 %
|
|
Tax-Equivalent Basis
Adjustment
|
|
|
|
(93)
|
|
|
|
|
|
(96)
|
|
|
|
Net Interest
Income
|
|
|
|
$
24,484
|
|
|
|
|
|
$
24,884
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
3.83 %
|
|
|
|
|
|
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
|
|
(4) Includes
the balances of loans held for sale
|
|
(5) Includes
the balances of deposits held for sale
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Net Interest Margin
- Year-To-Date (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
2024
|
|
2023
|
|
(Dollars in
thousands)
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
102,471
|
|
$ 2,293
|
|
4.50 %
|
|
$
55,618
|
|
$
983
|
|
3.56 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
121,333
|
|
2,983
|
|
4.94 %
|
|
84,101
|
|
1,475
|
|
3.54 %
|
|
Tax-Exempt
|
|
42,344
|
|
900
|
|
4.27 %
|
|
38,774
|
|
756
|
|
3.93 %
|
|
Total
Securities
|
|
163,677
|
|
3,883
|
|
4.77 %
|
|
122,875
|
|
2,231
|
|
3.66 %
|
|
Total Cash Equiv. and
Investments
|
|
266,148
|
|
6,176
|
|
4.67 %
|
|
178,493
|
|
3,214
|
|
3.63 %
|
|
Total Loans
(3)(4)
|
|
2,263,595
|
|
72,237
|
|
6.42 %
|
|
952,142
|
|
24,261
|
|
5.14 %
|
|
Total Earning
Assets
|
|
2,529,743
|
|
78,413
|
|
6.23 %
|
|
1,130,635
|
|
27,475
|
|
4.90 %
|
|
Other Assets
|
|
211,138
|
|
|
|
|
|
93,481
|
|
|
|
|
|
Total
Assets
|
|
$
2,740,881
|
|
|
|
|
|
$
1,224,116
|
|
|
|
|
|
Interest bearing
demand(5)
|
|
$
437,011
|
|
$ 4,400
|
|
2.02 %
|
|
$
246,235
|
|
$ 2,449
|
|
2.01 %
|
|
Money market
demand(5)
|
|
584,121
|
|
6,445
|
|
2.22 %
|
|
245,747
|
|
2,939
|
|
2.41 %
|
|
Time
deposits(5)
|
|
628,616
|
|
14,073
|
|
4.50 %
|
|
295,440
|
|
4,371
|
|
2.98 %
|
|
Total
Borrowings
|
|
144,509
|
|
3,938
|
|
5.48 %
|
|
76,820
|
|
1,514
|
|
3.97 %
|
|
Total Interest-Bearing
Liabilities
|
|
1,794,257
|
|
28,856
|
|
3.23 %
|
|
864,242
|
|
11,273
|
|
2.63 %
|
|
Non Interest-Bearing
Deposits(5)
|
|
646,728
|
|
|
|
|
|
202,610
|
|
|
|
|
|
Total Cost of
Funds
|
|
$
2,440,985
|
|
$
28,856
|
|
2.38 %
|
|
$
1,066,852
|
|
$
11,273
|
|
2.13 %
|
|
Other
Liabilities
|
|
31,360
|
|
|
|
|
|
16,905
|
|
|
|
|
|
Total
Liabilities
|
|
$
2,472,345
|
|
|
|
|
|
$
1,083,757
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
268,536
|
|
|
|
|
|
$
140,359
|
|
|
|
|
|
Total Liabilities
& Shareholders' Equity
|
|
$
2,740,881
|
|
|
|
|
|
$
1,224,116
|
|
|
|
|
|
Net Interest
Income/Spread (FTE)
|
|
|
|
49,557
|
|
3.00 %
|
|
|
|
16,202
|
|
2.27 %
|
|
Tax-Equivalent
Basis Adjustment
|
|
|
|
(189)
|
|
|
|
|
|
(159)
|
|
|
|
Net Interest
Income
|
|
|
|
$
49,368
|
|
|
|
|
|
$
16,043
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
3.92 %
|
|
|
|
|
|
2.86 %
|
|
|
(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 Subsidiaries
|
|
Loans Receivable
Detail (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands)
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June 30,
2023
|
|
Agriculture and
farmland loans
|
|
$
66,937
|
|
$
67,359
|
|
$
65,861
|
|
$
50,584
|
|
$
50,552
|
|
Construction
loans
|
|
201,174
|
|
194,391
|
|
178,483
|
|
65,836
|
|
75,628
|
|
Commercial &
industrial loans
|
|
247,190
|
|
218,724
|
|
238,343
|
|
115,572
|
|
104,869
|
|
Commercial real
estate loans
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily
|
|
199,740
|
|
190,146
|
|
180,788
|
|
111,853
|
|
113,254
|
|
Owner
occupied
|
|
492,065
|
|
489,467
|
|
501,732
|
|
160,929
|
|
154,520
|
|
Non-owner
occupied
|
|
610,649
|
|
589,731
|
|
580,972
|
|
257,344
|
|
254,691
|
|
Residential real
estate loans
|
|
|
|
|
|
|
|
|
|
|
|
First
liens
|
|
400,098
|
|
403,300
|
|
402,433
|
|
172,481
|
|
170,271
|
|
Second liens and lines
of credit
|
|
71,168
|
|
71,060
|
|
70,747
|
|
27,870
|
|
30,148
|
|
Consumer and
other loans
|
|
15,514
|
|
16,810
|
|
16,756
|
|
11,869
|
|
11,308
|
|
Municipal
loans
|
|
4,362
|
|
4,473
|
|
5,244
|
|
4,137
|
|
3,929
|
|
|
2,308,897
|
|
2,245,461
|
|
2,241,359
|
|
978,475
|
|
969,170
|
|
Deferred
costs
|
|
478
|
|
356
|
|
174
|
|
437
|
|
363
|
|
Total loans
receivable
|
|
2,309,375
|
|
2,245,817
|
|
2,241,533
|
|
978,912
|
|
969,533
|
|
Less: Loans held for
sale
|
|
116,178
|
|
115,898
|
|
113,249
|
|
-
|
|
-
|
|
Loans Held for
Investment
|
|
$
2,193,197
|
|
$
2,129,919
|
|
$
2,128,284
|
|
$
978,912
|
|
$
969,533
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
|
|
Investments in
Securities Detail (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2024
|
|
|
|
(In
Thousands)
|
|
Amortized
Cost
|
|
Net
Unrealized
Gains
(Losses)
|
|
Fair
Value
|
|
|
|
Available for
Sale:
|
|
|
|
|
|
|
|
|
|
US Government Agency
securities
|
|
$ 12,841
|
|
$
115
|
|
$ 12,956
|
|
|
|
US Government Treasury
securities
|
|
3,979
|
|
(2)
|
|
3,977
|
|
|
|
Obligations of state
and political subdivisions
|
|
49,242
|
|
(3,826)
|
|
45,416
|
|
|
|
Mortgage-backed
securities in government-sponsored entities
|
|
80,363
|
|
(3,130)
|
|
77,233
|
|
|
|
Other
securities
|
|
550
|
|
(11)
|
|
539
|
|
|
|
|
$
146,975
|
|
$
(6,854)
|
|
$
140,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost
|
|
Net
Unrealized
Gains (Losses)
|
|
Fair
Value
|
|
Allowance for
Credit Losses
|
|
Held to
Maturity:
|
|
|
|
|
|
|
|
|
|
Corporate
debentures
|
|
$ 15,000
|
|
$
(1,794)
|
|
$
13,206
|
|
$
(502)
|
|
Structured
mortgage-backed securities
|
|
20,845
|
|
(843)
|
|
20,002
|
|
-
|
|
|
$
35,845
|
|
$
(2,637)
|
|
$
33,208
|
|
$
(502)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2023
|
|
|
|
(In
Thousands)
|
|
Amortized
Cost
|
|
Net
Unrealized
Gains
(Losses)
|
|
Fair
Value
|
|
|
|
Available for
Sale:
|
|
|
|
|
|
|
|
|
|
US Government Agency
securities
|
|
$ 12,711
|
|
$
274
|
|
$ 12,985
|
|
|
|
US Government Treasury
securities
|
|
4,925
|
|
17
|
|
4,942
|
|
|
|
Obligations of state
and political subdivisions
|
|
49,640
|
|
(2,595)
|
|
47,045
|
|
|
|
Mortgage-backed
securities in government-sponsored entities
|
|
50,795
|
|
(2,614)
|
|
48,181
|
|
|
|
Other
securities
|
|
2,301
|
|
36
|
|
2,337
|
|
|
|
|
$
120,372
|
|
$
(4,882)
|
|
$
115,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost
|
|
Net Unrealized
Gains (Losses)
|
|
Fair
Value
|
|
Allowance for
Credit Losses
|
|
Held 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 Subsidiaries
|
|
Deposits Detail
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands)
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June 30,
2023
|
|
Demand,
noninterest-bearing
|
|
$
692,095
|
|
$
653,719
|
|
$
655,953
|
|
$
210,404
|
|
$
240,729
|
|
Demand,
interest-bearing
|
|
488,043
|
|
447,412
|
|
438,765
|
|
273,673
|
|
237,114
|
|
Money market and
savings
|
|
582,561
|
|
591,982
|
|
577,448
|
|
258,334
|
|
254,632
|
|
Time deposits, $250 and
over
|
|
156,621
|
|
147,898
|
|
134,324
|
|
51,563
|
|
57,194
|
|
Time deposits,
other
|
|
393,603
|
|
398,365
|
|
372,572
|
|
172,798
|
|
185,121
|
|
Brokered
deposits
|
|
144,429
|
|
146,653
|
|
119,411
|
|
75,000
|
|
60,052
|
|
|
2,457,352
|
|
2,386,029
|
|
2,298,473
|
|
1,041,772
|
|
1,034,842
|
|
Less: Deposits held for
sale
|
|
96,840
|
|
105,628
|
|
99,674
|
|
—
|
|
—
|
|
Total
deposits
|
|
$
2,360,512
|
|
$
2,280,401
|
|
$
2,198,799
|
|
$
1,041,772
|
|
$
1,034,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Deposits
Detail, for the Three Months Ended (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands)
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June 30,
2023
|
|
Demand,
noninterest-bearing
|
|
$
657,939
|
|
$
632,637
|
|
$
371,051
|
|
$
209,054
|
|
$
209,072
|
|
Demand,
interest-bearing
|
|
446,109
|
|
424,781
|
|
328,342
|
|
254,725
|
|
243,539
|
|
Money market and
savings
|
|
581,223
|
|
587,455
|
|
367,821
|
|
254,849
|
|
244,355
|
|
Time
deposits
|
|
547,582
|
|
518,929
|
|
317,747
|
|
236,869
|
|
236,059
|
|
Brokered
deposits
|
|
95,337
|
|
89,263
|
|
30,832
|
|
28,705
|
|
63,339
|
|
Total
deposits
|
|
$
2,328,190
|
|
$
2,253,065
|
|
$
1,415,793
|
|
$
984,202
|
|
$
996,364
|
|
|
Balances 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 Six Months
Ended
|
|
(Dollars in
thousands)
|
6/30/2024
|
|
3/31/2024
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
Net income
(loss)
|
$
5,804
|
|
$
5,726
|
|
$
1,347
|
|
$ 11,530
|
|
$
(207)
|
|
Average
assets
|
2,781,139
|
|
2,691,840
|
|
1,251,009
|
|
2,740,881
|
|
1,224,116
|
|
Return on average
assets (annualized)
|
0.84 %
|
|
0.86 %
|
|
0.43 %
|
|
0.85 %
|
|
-0.03 %
|
|
Net income
(loss)
|
5,804
|
|
5,726
|
|
1,347
|
|
11,530
|
|
(207)
|
|
Net (gains) losses on
sale of securities
|
(4)
|
|
-
|
|
-
|
|
(4)
|
|
2,370
|
|
Tax effect at
21%
|
1
|
|
-
|
|
-
|
|
1
|
|
(498)
|
|
Merger &
restructuring expenses
|
631
|
|
56
|
|
315
|
|
687
|
|
902
|
|
Tax effect at
21%
|
(133)
|
|
(12)
|
|
(66)
|
|
(144)
|
|
(189)
|
|
Adjusted Net Income
(Non-GAAP)
|
6,299
|
|
5,770
|
|
1,596
|
|
12,070
|
|
2,378
|
|
Average
assets
|
2,781,139
|
|
2,691,840
|
|
1,251,009
|
|
2,740,881
|
|
1,224,116
|
|
Adjusted return on
average assets (annualized)
(Non-GAAP)
|
0.91 %
|
|
0.86 %
|
|
0.51 %
|
|
0.89 %
|
|
0.39 %
|
|
Adjusted Return on
Average Shareholders' Equity
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
(Dollars in
thousands)
|
6/30/2024
|
|
3/31/2024
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
Net income
(loss)
|
$ 5,804
|
|
$ 5,726
|
|
$ 1,347
|
|
$
11,530
|
|
$
(207)
|
|
Average shareholders'
equity
|
269,834
|
|
266,795
|
|
141,780
|
|
268,536
|
|
140,359
|
|
Return on average
shareholders' equity (annualized)
|
8.65 %
|
|
8.63 %
|
|
3.81 %
|
|
8.61 %
|
|
-0.30 %
|
|
Net income
(loss)
|
5,804
|
|
5,726
|
|
1,347
|
|
11,530
|
|
(207)
|
|
Net (gains) losses on
sale of securities
|
(4)
|
|
-
|
|
-
|
|
(4)
|
|
2,370
|
|
Tax effect at
21%
|
1
|
|
-
|
|
-
|
|
1
|
|
(498)
|
|
Merger &
restructuring expenses
|
631
|
|
56
|
|
315
|
|
687
|
|
902
|
|
Tax effect at
21%
|
(133)
|
|
(12)
|
|
(66)
|
|
(144)
|
|
(189)
|
|
Adjusted Net Income
(Non-GAAP)
|
6,299
|
|
5,770
|
|
1,596
|
|
12,070
|
|
2,378
|
|
Average shareholders'
equity
|
269,834
|
|
266,795
|
|
141,780
|
|
268,536
|
|
140,359
|
|
Adjusted return on
average shareholders' equity (annualized)
(Non-GAAP)
|
9.39 %
|
|
8.70 %
|
|
4.51 %
|
|
9.04 %
|
|
3.42 %
|
|
Adjusted Efficiency
Ratio
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
(Dollars in
thousands)
|
6/30/2024
|
|
3/31/2024
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
GAAP-based
efficiency ratio
|
71.75 %
|
|
72.33 %
|
|
87.09 %
|
|
72.04 %
|
|
103.16 %
|
|
Net interest
income
|
$
24,484
|
|
$
24,884
|
|
$ 8,089
|
|
$
49,368
|
|
$
16,043
|
|
Noninterest
income
|
1,858
|
|
1,729
|
|
886
|
|
3,587
|
|
(967)
|
|
Less: net gains
(losses) on sales of securities
|
4
|
|
-
|
|
-
|
|
4
|
|
(2,370)
|
|
Adjusted revenue
(Non-GAAP)
|
26,346
|
|
26,613
|
|
8,975
|
|
52,951
|
|
17,446
|
|
Total noninterest
expense
|
18,900
|
|
19,250
|
|
7,816
|
|
38,150
|
|
15,553
|
|
Less: Merger &
restructuring expenses
|
631
|
|
56
|
|
315
|
|
687
|
|
902
|
|
Adjusted non-interest
expense
|
18,269
|
|
19,194
|
|
7,501
|
|
37,463
|
|
14,651
|
|
Efficiency ratio, as
adjusted (Non-GAAP)
|
69.34 %
|
|
72.12 %
|
|
83.58 %
|
|
70.75 %
|
|
83.98 %
|
|
Adjusted Earnings
Per Share
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
(Dollars in thousands,
except per share data)
|
6/30/2024
|
|
3/31/2024
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
GAAP-Based
Earnings (Loss) Per Share, Basic
|
$
0.16
|
|
$
0.15
|
|
$
0.08
|
|
$
0.31
|
|
$ (0.01)
|
|
GAAP-Based
Earnings (Loss) Per Share, Diluted
|
$
0.16
|
|
$
0.15
|
|
$
0.08
|
|
$
0.31
|
|
$ (0.01)
|
|
Net Income
(Loss)
|
$
5,804
|
|
$
5,726
|
|
$
1,347
|
|
$
11,530
|
|
$
(207)
|
|
Net (gains) losses on
sale of securities
|
(4)
|
|
-
|
|
-
|
|
(4)
|
|
2,370
|
|
Tax effect at
21%
|
1
|
|
-
|
|
-
|
|
1
|
|
(498)
|
|
Merger &
restructuring expenses
|
631
|
|
56
|
|
315
|
|
687
|
|
902
|
|
Tax effect at
21%
|
(133)
|
|
(12)
|
|
(66)
|
|
(144)
|
|
(189)
|
|
Adjusted Net Income
(Non-GAAP)
|
6,299
|
|
5,770
|
|
1,596
|
|
12,070
|
|
2,378
|
|
Adjusted Earnings
per Share, Basic (Non-GAAP)
|
$
0.17
|
|
$
0.16
|
|
$
0.10
|
|
$
0.33
|
|
$
0.15
|
|
Adjusted Earnings
per Share, Diluted (Non-GAAP)
|
$
0.17
|
|
$
0.16
|
|
$
0.10
|
|
$
0.33
|
|
$
0.15
|
|
Tangible Common
Equity and Tangible Book Value
|
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
6/30/2023
|
|
Tangible Common
Equity
|
|
(Dollars in thousands,
except for share data)
|
|
Total shareholders'
equity
|
|
$
271,409
|
|
$
268,243
|
|
$
265,796
|
|
$
141,351
|
|
$
142,452
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
(58,806)
|
|
(56,968)
|
|
(56,968)
|
|
(35,842)
|
|
(35,842)
|
|
Other intangible
assets
|
|
(23,323)
|
|
(24,526)
|
|
(25,733)
|
|
(873)
|
|
(932)
|
|
Tangible common equity
(Non-GAAP)
|
|
$
189,280
|
|
$
186,749
|
|
$
183,095
|
|
$
104,636
|
|
$
105,678
|
|
Common shares
outstanding
|
|
37,356,278
|
|
37,348,151
|
|
37,340,700
|
|
16,235,871
|
|
16,228,440
|
|
Book value per
common share
|
|
$
7.27
|
|
$
7.18
|
|
$
7.12
|
|
$
8.71
|
|
$
8.78
|
|
Tangible book value
per common share (Non-GAAP)
|
|
$
5.07
|
|
$
5.00
|
|
$
4.90
|
|
$
6.44
|
|
$
6.51
|
|
Tangible
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 2,858,593
|
|
$ 2,785,669
|
|
$ 2,669,325
|
|
$ 1,255,695
|
|
$ 1,308,472
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
(58,806)
|
|
(56,968)
|
|
(56,968)
|
|
(35,842)
|
|
(35,842)
|
|
Other intangible
assets
|
|
(23,323)
|
|
(24,526)
|
|
(25,733)
|
|
(873)
|
|
(932)
|
|
Tangible assets
(Non-GAAP)
|
|
$ 2,776,464
|
|
$ 2,704,175
|
|
$ 2,586,624
|
|
$ 1,218,980
|
|
$ 1,271,698
|
|
Tangible common
equity to tangible assets (Non-GAAP)
|
|
6.82 %
|
|
6.91 %
|
|
7.08 %
|
|
8.58 %
|
|
8.31 %
|
|
Adjusted Pre-tax,
Pre-provision Net Income (Non-GAAP)
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
(Dollars in thousands,
except per share data)
|
6/30/2024
|
|
3/31/2024
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
Net Income (Loss) -
GAAP
|
$ 5,804
|
|
$ 5,726
|
|
$ 1,347
|
|
$
11,530
|
|
$
(207)
|
|
Net (gains) losses on
sale of securities
|
(4)
|
|
-
|
|
-
|
|
(4)
|
|
2,370
|
|
Tax effect at
21%
|
1
|
|
-
|
|
-
|
|
1
|
|
(498)
|
|
Merger &
restructuring expenses
|
631
|
|
56
|
|
315
|
|
687
|
|
902
|
|
Tax effect at
21%
|
(133)
|
|
(12)
|
|
(66)
|
|
(144)
|
|
(189)
|
|
Adjusted Net Income
(Non-GAAP)
|
6,299
|
|
5,770
|
|
1,596
|
|
12,070
|
|
2,378
|
|
Income tax expense
(benefit)
|
1,638
|
|
1,597
|
|
305
|
|
3,235
|
|
(70)
|
|
Provision for
(credit to) credit losses
|
-
|
|
40
|
|
(493)
|
|
40
|
|
(200)
|
|
Tax effect included in
Adjusted Net Income
|
132
|
|
12
|
|
66
|
|
143
|
|
687
|
|
Adjusted Pre-tax,
Pre-provision Net Income (Non-GAAP)
|
$ 8,069
|
|
$ 7,419
|
|
$ 1,474
|
|
$
15,488
|
|
$ 2,795
|
Contact:
Nicole Davis
Corporate and Investor Relations Officer
717.803.8895
IR@LINKBANCORP.COM
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