HARRISBURG, Pa., Oct. 28,
2024 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ:
LNKB) (the "Company"), the parent company of LINKBANK (the "Bank")
reported record net income of $7.1
million, or $0.19 per diluted
share, for the quarter ended September 30,
2024, demonstrating continued growth compared to net income
of $5.8 million, or $0.16 per diluted share, for the linked quarter
ended June 30, 2024. Excluding
expenses associated with the sale of its New Jersey branches and
branch consolidations, adjusted earnings were $7.2 million1, or $0.191 per diluted share for the
third quarter of 2024, compared with $6.3
million1, or $0.171 per diluted share for the
second quarter of 2024.
Third Quarter 2024 Highlights
- Annualized return on average assets was 1.00% for the third
quarter of 2024, compared to 0.84% for the the second quarter of
2024. Adjusted return on average assets was 1.02%1 for
the third quarter of 2024, compared to 0.91%1 for the
second quarter of 2024.
- Total deposits2 increased $9.3 million from $2.46
billion at June 30, 2024 to
$2.47 billion at September 30, 2024, as strong growth in demand
deposit accounts of $54.5 million and
retail time deposits of $21.4 million
exceeded a $69.4 million decrease in
brokered deposits. Excluding loans held for sale, total loans
increased $22.7 million to
$2.22 billion at September 30, 2024, compared to $2.19 billion at June 30,
2024. Total loans2 increased $8.8 million from $2.31
billion at June 30, 2024 to
$2.32 billion at September 30, 2024.
- Noninterest income increased $822
thousand quarter-over-quarter to $2.7
million for the third quarter of 2024 compared to
$1.9 million for the second quarter
of 2024.
- Noninterest expense decreased $448
thousand quarter over quarter to $18.5 million in the third quarter of 2024, as
the Company continued to execute on post-merger efficiency
strategies.
- Net interest income before provision for credit losses was
$25.0 million for the third quarter
of 2024 compared to $24.5 million in
the second quarter of 2024. Net interest margin was 3.82% for the
third quarter of 2024 compared to 3.83% for the second quarter of
2024.
- Non-performing assets were $17.4
million, representing 0.60% of total assets at September 30, 2024, compared to $10.6 million, representing 0.37% of total assets
at June 30, 2024. Loans 30-89 days
past due at September 30, 2024 were
$2.7 million, representing 0.12% of
total loans, an improvement compared to $5.2
million or 0.24% of total loans at June 30, 2024. The allowance for credit
losses-loans was 1.20% of total loans held for investment at
September 30, 2024, unchanged from
June 30, 2024.
- 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"). The
transaction is subject to customary closing conditions, including
regulatory approvals, and is expected to close in the fourth
quarter of 2024 or the first quarter of 2025.
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 pleased to announce another quarter of record earnings
for the third quarter of 2024, representing an annualized 1.00%
return on average assets for the quarter and demonstrating solid
progress toward achieving our target profitability metrics. This is
a result of prioritizing high quality loan and strong core deposit
growth, with an emphasis on achieving cost efficiencies from the
merger and branch consolidations, while also executing on
non-interest income initiatives," said Andrew Samuel, Chief Executive Officer of
LINKBANCORP. "As we look to close 2024 with a strong fourth
quarter, our teams continue to implement strategies to reduce
funding costs and operational expenses and generate additional
revenue to support further earnings growth."
|
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 $102.3 million and $94.0 million, respectively, at
September 30, 2024. These balances were $116.2 million and
$96.8 million respectively at June 30, 2024.
|
Income Statement
Net interest income before the
provision for credit losses for the third quarter of 2024 was
$25.0 million compared to
$24.5 million in the second quarter
of 2024. Net interest margin was 3.82% for the third quarter of
2024 compared to 3.83% for the second quarter of 2024. Cost
of funds decreased to 2.42% for the third quarter of 2024 compared
to 2.43% for the second quarter of 2024, while the average yield on
interest earning assets decreased from 6.19% for the second quarter
of 2024 to 6.16% for the third quarter of 2024 due to the cut in
the target federal funds rate.
Noninterest income increased $822
thousand quarter-over-quarter to $2.7
million for the third quarter of 2024 compared to
$1.9 million for the second quarter
of 2024, and included strong growth in service charges on deposit
accounts and gain on sale of loans, as well as increases in
merchant fees and swap fee income.
Noninterest expense for the third quarter of 2024 was
$18.5 million compared to
$18.9 million for the second
quarter of 2024. Excluding one-time costs associated with the
Branch Sale and branch consolidations of $171 thousand in the third quarter of 2024 and
$631 thousand in the second quarter
of 2024, adjusted noninterest expense was generally flat at
$18.3 million for the second and
third quarter of 20241 , as decreases in personnel and
occupancy costs were offset by increases in FDIC deposit insurance
and fraud-related operating losses.
Income tax expense was $2.0
million for the third quarter of 2024, reflecting an
effective tax rate of 22.2%.
|
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 September
30, 2024 compared to $2.86
billion at June 30, 2024 and
$1.26 billion at September 30, 2023. Deposits and net loans
as of September 30, 2024 totaled
$2.37 billion and $2.19 billion, respectively, compared to deposits
and net loans of $2.36 billion and
$2.17 billion, respectively, at
June 30, 2024 and $1.04 billion and $969.0
million, respectively, at September
30, 2023. Deposits and net loans exclude balances held
for sale in the Branch Sale of $94.0
million and $102.3 million,
respectively, at September 30, 2024,
which are reflected in liabilities held for sale and assets held
for sale. These balances were $96.8
million and $116.2 million
respectively, at June 30,
2024.
Including loans held for sale, total loans increased
$8.8 million, from $2.31 billion at June 30,
2024 to $2.32 billion at
September 30, 2024. Total
commercial loan commitments for the third quarter of 2024 were
$111.0 million with funded balances
of $74.8 million. The average
commercial loan commitment originated during the third quarter of
2024 totaled approximately $810
thousand with an average outstanding funded balance of
$546 thousand.
Including deposits held for sale, total deposits at September 30, 2024 totaled $2.47 billion, an increase of $9.3 million from $2.46
billion at June 30, 2024.
This increase included growth of $54.5
million in demand deposit accounts and $21.4 million in retail time deposits, offset by
a decrease in brokered deposits of $69.4
million quarter over quarter.
The Company maintains strong on-balance sheet liquidity, as cash
and cash equivalents increased to $191.2
million at September 30, 2024
compared to $181.7 million at
June 30, 2024.
Shareholders' equity increased from $271.4 million at June 30,
2024 to $277.4 million at
September 30, 2024 primarily as a
result of a $4.3 million increase in
retained earnings. Book value per share increased to
$7.42 at September 30, 2024 compared to $7.27 at June 30,
2024. Tangible book value per share increased to $5.26 at September 30,
2024 compared to $5.07 at
June 30, 20241.
|
1 See
Appendix A – Reconciliation to Non-GAAP Financial Measures for the
computation of this non-GAAP measure.
|
Asset Quality
The Company recorded a $84 thousand provision for credit losses during
the third quarter of 2024, after recording no provision for credit
losses in the second quarter of 2024.
As of September 30, 2024, the
Company's non-performing assets were $17.4
million, representing 0.60% of total assets, compared to
$10.6 million, representing 0.37% of
total assets at June 30, 2024.
The increase related primarily to a single real estate secured loan
acquired in the merger with Partners Bancorp (the "Partners
Merger") with an outstanding principal balance of approximately
$5.5 million at September 30, 2024. Based on a recent
appraisal and application of the Company's reserve methodology, a
specific reserve was not needed for this loan as of September 30, 2024.
Loans 30-89 days past due at September
30, 2024 were $2.7 million,
representing 0.12% of total loans, an improvement compared to
$5.2 million or 0.24% of total loans
at June 30, 2024.
The allowance for credit losses-loans was $26.5 million, or 1.20% of total loans held for
investment at September 30, 2024,
compared to $26.3 million, or 1.20%
of total loans held for investment at June
30, 2024. In addition to the recorded provision, the
increased allowance resulted from a reallocation of a portion of
the allowance for credit losses-unfunded commitments to the
allowance for credit losses-loans. The allowance for credit
losses-loans to nonperforming assets was 152.73% at September 30, 2024, compared to 248.26% at
June 30, 2024.
Capital
The Bank's regulatory capital ratios were well
in excess of regulatory minimums to be considered "well
capitalized" as of September 30,
2024. The Bank's Total Capital Ratio and Tier 1 Capital
Ratio were 11.44% and 10.62% respectively, at September 30, 2024, compared to 11.09% and 10.30
%, respectively, at June 30, 2024 and
12.92% and 12.37%, respectively, at September 30, 2023. The Company's ratio of
Tangible Common Equity to Tangible Assets was 7.02%1 at
September 30, 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 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.
Given that the Company's merger with Partners Bancorp was
completed on November 30, 2023 ,
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)
|
|
|
|
|
September 30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
(In Thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
cash equivalents
|
|
$
15,295
|
|
$
14,516
|
|
$
13,552
|
|
$
13,089
|
|
$
5,447
|
|
Interest-bearing
deposits with other institutions
|
|
175,937
|
|
167,141
|
|
158,731
|
|
67,101
|
|
62,532
|
|
Cash and cash
equivalents
|
|
191,232
|
|
181,657
|
|
172,283
|
|
80,190
|
|
67,979
|
|
Certificates of deposit
with other banks
|
|
—
|
|
—
|
|
—
|
|
—
|
|
249
|
|
Securities available
for sale, at fair value
|
|
149,315
|
|
140,121
|
|
133,949
|
|
115,490
|
|
78,779
|
|
Securities held to
maturity, net of allowance for credit losses
|
|
34,155
|
|
35,343
|
|
36,109
|
|
36,223
|
|
37,266
|
|
Loans receivable,
gross
|
|
2,215,868
|
|
2,193,197
|
|
2,129,919
|
|
2,128,284
|
|
978,912
|
|
Allowance for credit
losses - loans
|
|
(26,542)
|
|
(26,288)
|
|
(23,842)
|
|
(23,767)
|
|
(9,964)
|
|
Loans receivable,
net
|
|
2,189,326
|
|
2,166,909
|
|
2,106,077
|
|
2,104,517
|
|
968,948
|
|
Investments in
restricted bank stock
|
|
4,904
|
|
4,928
|
|
4,286
|
|
3,965
|
|
3,107
|
|
Premises and equipment,
net
|
|
17,623
|
|
18,364
|
|
20,102
|
|
20,130
|
|
6,414
|
|
Right-of-Use Asset –
premises
|
|
14,150
|
|
13,970
|
|
14,577
|
|
15,497
|
|
9,727
|
|
Bank-owned life
insurance
|
|
51,646
|
|
49,616
|
|
49,230
|
|
48,847
|
|
24,732
|
|
Goodwill and other
intangible assets
|
|
80,924
|
|
82,129
|
|
81,494
|
|
82,701
|
|
36,715
|
|
Deferred tax
asset
|
|
21,662
|
|
22,024
|
|
22,717
|
|
24,153
|
|
6,880
|
|
Assets held for
sale
|
|
104,660
|
|
118,362
|
|
118,115
|
|
115,499
|
|
—
|
|
Accrued interest
receivable and other assets
|
|
20,344
|
|
25,170
|
|
26,730
|
|
22,113
|
|
14,899
|
|
TOTAL
ASSETS
|
|
$
2,879,941
|
|
$
2,858,593
|
|
$
2,785,669
|
|
$
2,669,325
|
|
$
1,255,695
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand, noninterest
bearing
|
|
$
658,473
|
|
$ 661,292
|
|
$
618,277
|
|
$
624,780
|
|
$
210,404
|
|
Interest
bearing
|
|
1,714,179
|
|
1,699,220
|
|
1,662,124
|
|
1,574,019
|
|
831,368
|
|
Total
deposits
|
|
2,372,652
|
|
2,360,512
|
|
2,280,401
|
|
2,198,799
|
|
1,041,772
|
|
Long-term
borrowings
|
|
40,000
|
|
40,000
|
|
40,000
|
|
—
|
|
—
|
|
Short-term
borrowings
|
|
—
|
|
—
|
|
—
|
|
10,000
|
|
15,000
|
|
Note payable
|
|
572
|
|
578
|
|
584
|
|
590
|
|
—
|
|
Subordinated
debt
|
|
61,843
|
|
61,706
|
|
61,573
|
|
61,444
|
|
40,354
|
|
Lease
liabilities
|
|
14,911
|
|
14,746
|
|
15,357
|
|
16,361
|
|
9,728
|
|
Liabilities held for
sale
|
|
94,228
|
|
96,916
|
|
105,716
|
|
99,777
|
|
—
|
|
Accrued interest
payable and other liabilities
|
|
18,382
|
|
12,726
|
|
13,795
|
|
16,558
|
|
7,490
|
|
TOTAL
LIABILITIES
|
|
2,602,588
|
|
2,587,184
|
|
2,517,426
|
|
2,403,529
|
|
1,114,344
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Common stock
|
|
370
|
|
370
|
|
369
|
|
369
|
|
162
|
|
Surplus
|
|
264,059
|
|
263,795
|
|
263,577
|
|
263,310
|
|
127,856
|
|
Retained
earnings
|
|
15,147
|
|
10,826
|
|
7,724
|
|
4,843
|
|
19,062
|
|
Accumulated other
comprehensive loss
|
|
(2,223)
|
|
(3,582)
|
|
(3,427)
|
|
(3,209)
|
|
(5,729)
|
|
Total
equity attributable to parent
|
|
277,353
|
|
271,409
|
|
268,243
|
|
265,313
|
|
141,351
|
|
Noncontrolling interest in consolidated subsidiary
|
|
—
|
|
—
|
|
—
|
|
483
|
|
—
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
|
277,353
|
|
271,409
|
|
268,243
|
|
265,796
|
|
141,351
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
2,879,941
|
|
$
2,858,593
|
|
$
2,785,669
|
|
$
2,669,325
|
|
$
1,255,695
|
|
Common shares
outstanding
|
|
37,361,560
|
|
37,356,278
|
|
37,348,151
|
|
37,340,700
|
|
16,235,871
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Consolidated
Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
9/30/2024
|
|
6/30/2024
|
|
9/30/2023
|
|
|
|
9/30/2024
|
|
9/30/2023
|
|
(In Thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST AND DIVIDEND
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable,
including fees
|
|
$
36,856
|
|
$
36,112
|
|
$
13,068
|
|
|
|
$
109,093
|
|
$
37,330
|
|
Other
|
|
3,338
|
|
3,337
|
|
1,710
|
|
|
|
9,325
|
|
4,765
|
|
Total interest and
dividend income
|
|
40,194
|
|
39,449
|
|
14,778
|
|
|
|
118,418
|
|
42,095
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
13,292
|
|
13,071
|
|
5,434
|
|
|
|
38,210
|
|
15,193
|
|
Other
Borrowings
|
|
949
|
|
932
|
|
550
|
|
|
|
2,967
|
|
1,196
|
|
Subordinated
Debt
|
|
972
|
|
962
|
|
442
|
|
|
|
2,892
|
|
1,311
|
|
Total interest
expense
|
|
15,213
|
|
14,965
|
|
6,426
|
|
|
|
44,069
|
|
17,700
|
|
NET INTEREST INCOME
BEFORE
PROVISION FOR (CREDIT TO) CREDIT LOSSES
|
|
24,981
|
|
24,484
|
|
8,352
|
|
|
|
74,349
|
|
24,395
|
|
Provision for (credit
to) credit losses
|
|
84
|
|
—
|
|
(349)
|
|
|
|
125
|
|
(549)
|
|
NET INTEREST INCOME
AFTER
PROVISION FOR (CREDIT TO) CREDIT LOSSES
|
|
24,897
|
|
24,484
|
|
8,701
|
|
|
|
74,224
|
|
24,944
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
1,052
|
|
865
|
|
198
|
|
|
|
2,697
|
|
593
|
|
Bank-owned life
insurance
|
|
430
|
|
386
|
|
177
|
|
|
|
1,199
|
|
488
|
|
Net realized gains
(losses) on the sale of debt securities
|
|
—
|
|
4
|
|
—
|
|
|
|
4
|
|
(2,370)
|
|
Gain on sale of
loans
|
|
138
|
|
12
|
|
—
|
|
|
|
200
|
|
296
|
|
Other
|
|
1,060
|
|
591
|
|
505
|
|
|
|
2,167
|
|
905
|
|
Total noninterest
income
|
|
2,680
|
|
1,858
|
|
880
|
|
|
|
6,267
|
|
(88)
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
9,855
|
|
9,941
|
|
4,193
|
|
|
|
30,914
|
|
12,350
|
|
Occupancy
|
|
1,440
|
|
1,559
|
|
701
|
|
|
|
4,577
|
|
2,104
|
|
Equipment and data
processing
|
|
1,640
|
|
1,824
|
|
934
|
|
|
|
5,290
|
|
2,519
|
|
Professional
fees
|
|
763
|
|
788
|
|
363
|
|
|
|
2,299
|
|
1,162
|
|
FDIC insurance and
supervisory fees
|
|
812
|
|
545
|
|
276
|
|
|
|
1,709
|
|
619
|
|
Bank Shares
Tax
|
|
752
|
|
760
|
|
278
|
|
|
|
2,103
|
|
834
|
|
Intangible
amortization
|
|
1,205
|
|
1,204
|
|
59
|
|
|
|
3,616
|
|
179
|
|
Merger &
restructuring expenses
|
|
171
|
|
631
|
|
777
|
|
|
|
858
|
|
1,679
|
|
Advertising
|
|
163
|
|
241
|
|
77
|
|
|
|
505
|
|
268
|
|
Other
|
|
1,651
|
|
1,407
|
|
336
|
|
|
|
4,730
|
|
1,833
|
|
Total noninterest
expense
|
|
18,452
|
|
18,900
|
|
7,994
|
|
|
|
56,601
|
|
23,547
|
|
Income before income
tax expense
|
|
9,125
|
|
7,442
|
|
1,587
|
|
|
|
23,890
|
|
1,309
|
|
Income tax
expense
|
|
2,030
|
|
1,638
|
|
347
|
|
|
|
5,265
|
|
276
|
|
NET
INCOME
|
|
$
7,095
|
|
$
5,804
|
|
$
1,240
|
|
|
|
$
18,625
|
|
$
1,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE,
BASIC
|
|
$
0.19
|
|
$
0.16
|
|
$
0.08
|
|
|
|
$
0.50
|
|
$
0.06
|
|
EARNINGS PER
SHARE, DILUTED
|
|
$
0.19
|
|
$
0.16
|
|
$
0.08
|
|
|
|
$
0.50
|
|
$
0.06
|
|
WEIGHTED-AVERAGE COMMON
SHARES
OUTSTANDING,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
36,983,637
|
|
36,970,768
|
|
16,235,144
|
|
|
|
36,972,127
|
|
15,984,151
|
|
DILUTED
|
|
37,090,111
|
|
37,040,748
|
|
16,235,144
|
|
|
|
37,061,512
|
|
15,984,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(106,474)
|
|
(69,980)
|
|
—
|
|
|
|
(89,385)
|
|
—
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Financial Highlights
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
('Dollars In
Thousands, except per share data)
|
9/30/2024
|
|
6/30/2024
|
|
9/30/2023
|
|
9/30/2024
|
|
9/30/2023
|
|
Operating
Highlights
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
7,095
|
|
$
5,804
|
|
$
1,240
|
|
$
18,625
|
|
$
1,033
|
|
Net Interest
Income
|
24,981
|
|
24,484
|
|
8,352
|
|
74,349
|
|
24,395
|
|
Provision for (credit
to) Credit Losses
|
84
|
|
-
|
|
(349)
|
|
125
|
|
(549)
|
|
Non-Interest
Income
|
2,680
|
|
1,858
|
|
880
|
|
6,267
|
|
(88)
|
|
Non-Interest
Expense
|
18,452
|
|
18,900
|
|
7,994
|
|
56,601
|
|
23,547
|
|
Earnings per Share,
Basic
|
0.19
|
|
0.16
|
|
0.08
|
|
0.50
|
|
0.06
|
|
Adjusted Earnings per
Share, Basic (2)
|
0.20
|
|
0.17
|
|
0.11
|
|
0.52
|
|
0.26
|
|
Earnings per Share,
Diluted
|
0.19
|
|
0.16
|
|
0.08
|
|
0.50
|
|
0.06
|
|
Adjusted Earnings per
Share, Diluted (2)
|
0.19
|
|
0.17
|
|
0.11
|
|
0.52
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Ratios
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
3.82 %
|
|
3.83 %
|
|
2.89 %
|
|
3.89 %
|
|
2.88 %
|
|
Annualized Return on
Assets ("ROA")
|
1.00 %
|
|
0.84 %
|
|
0.39 %
|
|
0.90 %
|
|
0.11 %
|
|
Adjusted
ROA2
|
1.02 %
|
|
0.91 %
|
|
0.59 %
|
|
0.93 %
|
|
0.46 %
|
|
Annualized Return on
Equity ("ROE")
|
10.30 %
|
|
8.65 %
|
|
3.46 %
|
|
9.20 %
|
|
0.99 %
|
|
Adjusted
ROE2
|
10.50 %
|
|
9.39 %
|
|
5.17 %
|
|
9.53 %
|
|
4.04 %
|
|
Efficiency
Ratio
|
66.71 %
|
|
71.75 %
|
|
86.59 %
|
|
70.21 %
|
|
96.87 %
|
|
Adjusted Efficiency
Ratio3
|
66.09 %
|
|
69.36 %
|
|
78.17 %
|
|
69.15 %
|
|
81.97 %
|
|
Noninterest Income to
Avg. Assets
|
0.38 %
|
|
0.27 %
|
|
0.28 %
|
|
0.30 %
|
|
-0.01 %
|
|
Noninterest Expense to
Avg. Assets
|
2.61 %
|
|
2.73 %
|
|
2.54 %
|
|
2.73 %
|
|
2.56 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2024
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
Financial Condition
Data
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$ 2,879,941
|
|
$ 2,858,593
|
|
$
2,785,669
|
|
$
2,669,325
|
|
$
1,255,695
|
|
Loans Receivable,
Net
|
2,189,326
|
|
2,166,909
|
|
2,106,077
|
|
2,104,517
|
|
968,948
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
Deposits
|
658,473
|
|
661,292
|
|
618,277
|
|
624,780
|
|
210,404
|
|
Interest-bearing
Deposits
|
1,714,179
|
|
1,699,220
|
|
1,662,124
|
|
1,574,019
|
|
831,368
|
|
Total
Deposits
|
2,372,652
|
|
2,360,512
|
|
2,280,401
|
|
2,198,799
|
|
1,041,772
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance
Sheet Ratios
|
|
|
|
|
|
|
|
|
|
|
Total Capital
Ratio1
|
11.44 %
|
|
11.09 %
|
|
11.04 %
|
|
10.62 %
|
|
12.92 %
|
|
Tier 1 Capital
Ratio1
|
10.62 %
|
|
10.30 %
|
|
10.24 %
|
|
9.92 %
|
|
12.37 %
|
|
Common Equity Tier 1
Capital Ratio1
|
10.62 %
|
|
10.30 %
|
|
10.24 %
|
|
9.92 %
|
|
12.37 %
|
|
Leverage
Ratio1
|
9.41 %
|
|
9.17 %
|
|
9.23 %
|
|
14.13 %
|
|
10.71 %
|
|
Tangible Common Equity
to Tangible Assets4
|
7.02 %
|
|
6.82 %
|
|
6.91 %
|
|
7.08 %
|
|
8.58 %
|
|
Tangible Book Value per
Share5
|
$
5.26
|
|
$
5.07
|
|
$
5.00
|
|
$
4.90
|
|
$
6.44
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Data
|
|
|
|
|
|
|
|
|
|
|
Non-performing
Assets
|
$ 17,378
|
|
$
10,589
|
|
$
6,675
|
|
$
7,250
|
|
$
2,958
|
|
Non-performing Assets
to Total Assets
|
0.60 %
|
|
0.37 %
|
|
0.24 %
|
|
0.27 %
|
|
0.24 %
|
|
Non-performing Loans to
Total Loans
|
0.78 %
|
|
0.48 %
|
|
0.31 %
|
|
0.34 %
|
|
0.30 %
|
|
Allowance for Credit
Losses - Loans ("ACLL")
|
$ 26,542
|
|
$
26,288
|
|
$
23,842
|
|
$
23,767
|
|
$
9,964
|
|
ACLL to Total
Loans6
|
1.20 %
|
|
1.20 %
|
|
1.06 %
|
|
1.06 %
|
|
1.02 %
|
|
ACLL to Nonperforming
Assets
|
152.73 %
|
|
248.26 %
|
|
357.18 %
|
|
327.82 %
|
|
336.85 %
|
|
Net (recoveries)
chargeoffs
|
$
(28)
|
|
$
(20)
|
|
$
70
|
|
$
195
|
|
$
(12)
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30,
|
|
|
2024
|
|
2023
|
|
(Dollars in
thousands)
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
114,383
|
|
$
1,296
|
|
4.51 %
|
|
$
55,514
|
|
$
577
|
|
4.12 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
133,443
|
|
1,683
|
|
5.02 %
|
|
82,499
|
|
833
|
|
4.01 %
|
|
Tax-Exempt
|
|
42,800
|
|
453
|
|
4.21 %
|
|
38,589
|
|
378
|
|
3.89 %
|
|
Total
Securities
|
|
176,243
|
|
2,136
|
|
4.82 %
|
|
121,088
|
|
1,211
|
|
3.97 %
|
|
Total Cash Equiv. and
Investments
|
|
290,626
|
|
3,432
|
|
4.70 %
|
|
176,602
|
|
1,788
|
|
4.02 %
|
|
Total Loans
(3)(4)
|
|
2,313,228
|
|
36,856
|
|
6.34 %
|
|
971,877
|
|
13,068
|
|
5.33 %
|
|
Total Earning
Assets
|
|
2,603,854
|
|
40,288
|
|
6.16 %
|
|
1,148,479
|
|
14,856
|
|
5.13 %
|
|
Other Assets
|
|
208,407
|
|
|
|
|
|
97,995
|
|
|
|
|
|
Total
Assets
|
|
$
2,812,261
|
|
|
|
|
|
$
1,246,474
|
|
|
|
|
|
Interest bearing
demand(5)
|
|
$
497,100
|
|
$
2,902
|
|
2.32 %
|
|
$
254,725
|
|
$
1,490
|
|
2.32 %
|
|
Money market
demand(5)
|
|
580,766
|
|
3,396
|
|
2.33 %
|
|
254,849
|
|
1,827
|
|
2.84 %
|
|
Time
deposits(5)
|
|
613,402
|
|
6,993
|
|
4.54 %
|
|
265,573
|
|
2,117
|
|
3.16 %
|
|
Total
Borrowings
|
|
153,699
|
|
1,922
|
|
0.00 %
|
|
102,669
|
|
992
|
|
3.83 %
|
|
Total Interest-Bearing
Liabilities
|
|
1,844,967
|
|
15,213
|
|
3.28 %
|
|
877,816
|
|
6,426
|
|
2.90 %
|
|
Non Interest-Bearing
Deposits(5)
|
|
659,825
|
|
|
|
|
|
209,054
|
|
|
|
|
|
Total Cost of
Funds
|
|
$
2,504,792
|
|
$
15,213
|
|
2.42 %
|
|
$
1,086,870
|
|
$
6,426
|
|
2.35 %
|
|
Other
Liabilities
|
|
33,534
|
|
|
|
|
|
17,230
|
|
|
|
|
|
Total
Liabilities
|
|
$
2,538,326
|
|
|
|
|
|
$
1,104,100
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
273,935
|
|
|
|
|
|
$
142,374
|
|
|
|
|
|
Total Liabilities
& Shareholders' Equity
|
|
$
2,812,261
|
|
|
|
|
|
$
1,246,474
|
|
|
|
|
|
Net Interest
Income/Spread (FTE)
|
|
|
|
25,075
|
|
2.88 %
|
|
|
|
8,430
|
|
2.23 %
|
|
Tax-Equivalent Basis
Adjustment
|
|
|
|
(94)
|
|
|
|
|
|
(78)
|
|
|
|
Net Interest
Income
|
|
|
|
$
24,981
|
|
|
|
|
|
$
8,352
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
3.82 %
|
|
|
|
|
|
2.89 %
|
|
(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
|
|
|
September 30,
2024
|
|
June 30,
2024
|
|
(Dollars in
thousands)
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
114,383
|
|
$
1,296
|
|
4.51 %
|
|
$
121,340
|
|
$
1,395
|
|
4.62 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
133,443
|
|
1,683
|
|
5.02 %
|
|
125,885
|
|
1,592
|
|
5.09 %
|
|
Tax-Exempt
|
|
42,800
|
|
453
|
|
4.21 %
|
|
41,776
|
|
443
|
|
4.26 %
|
|
Total
Securities
|
|
176,243
|
|
2,136
|
|
4.82 %
|
|
167,661
|
|
2,035
|
|
4.88 %
|
|
Total Cash Equiv. and
Investments
|
|
290,626
|
|
3,432
|
|
4.70 %
|
|
289,001
|
|
3,430
|
|
4.77 %
|
|
Total Loans
(3)(4)
|
|
2,313,228
|
|
36,856
|
|
6.34 %
|
|
2,280,041
|
|
36,112
|
|
6.37 %
|
|
Total Earning
Assets
|
|
2,603,854
|
|
40,288
|
|
6.16 %
|
|
2,569,042
|
|
39,542
|
|
6.19 %
|
|
Other Assets
|
|
208,407
|
|
|
|
|
|
212,097
|
|
|
|
|
|
Total
Assets
|
|
$
2,812,261
|
|
|
|
|
|
$
2,781,139
|
|
|
|
|
|
Interest bearing
demand(5)
|
|
$
497,100
|
|
2,902
|
|
2.32 %
|
|
$
446,109
|
|
$
2,457
|
|
2.22 %
|
|
Money market
demand(5)
|
|
580,766
|
|
3,396
|
|
2.33 %
|
|
581,223
|
|
3,271
|
|
2.26 %
|
|
Time
deposits(5)
|
|
613,402
|
|
6,993
|
|
4.54 %
|
|
642,919
|
|
7,343
|
|
4.59 %
|
|
Total
Borrowings
|
|
153,699
|
|
1,922
|
|
4.97 %
|
|
151,596
|
|
1,894
|
|
5.02 %
|
|
Total Interest-Bearing
Liabilities
|
|
1,844,967
|
|
15,213
|
|
3.28 %
|
|
1,821,847
|
|
14,965
|
|
3.30 %
|
|
Non Interest-Bearing
Deposits(5)
|
|
659,825
|
|
|
|
|
|
657,939
|
|
|
|
|
|
Total Cost of
Funds
|
|
$
2,504,792
|
|
$
15,213
|
|
2.42 %
|
|
$
2,479,786
|
|
$
14,965
|
|
2.43 %
|
|
Other
Liabilities
|
|
33,534
|
|
|
|
|
|
31,519
|
|
|
|
|
|
Total
Liabilities
|
|
$
2,538,326
|
|
|
|
|
|
$
2,511,305
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
273,935
|
|
|
|
|
|
$
269,834
|
|
|
|
|
|
Total Liabilities
& Shareholders' Equity
|
|
$
2,812,261
|
|
|
|
|
|
$
2,781,139
|
|
|
|
|
|
Net Interest
Income/Spread (FTE)
|
|
|
|
25,075
|
|
2.88 %
|
|
|
|
24,577
|
|
2.89 %
|
|
Tax-Equivalent Basis
Adjustment
|
|
|
|
(94)
|
|
|
|
|
|
(93)
|
|
|
|
Net Interest
Income
|
|
|
|
$
24,981
|
|
|
|
|
|
$
24,484
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
3.82 %
|
|
|
|
|
|
3.83 %
|
|
(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 Nine Months
Ended September 30,
|
|
|
2024
|
|
2023
|
|
(Dollars in
thousands)
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
106,334
|
|
$
3,590
|
|
4.51 %
|
|
$
51,547
|
|
$
1,561
|
|
4.05 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
125,264
|
|
4,666
|
|
4.98 %
|
|
83,449
|
|
2,309
|
|
3.70 %
|
|
Tax-Exempt
|
|
42,606
|
|
1,353
|
|
4.24 %
|
|
38,617
|
|
1,133
|
|
3.92 %
|
|
Total
Securities
|
|
167,870
|
|
6,019
|
|
4.79 %
|
|
122,066
|
|
3,442
|
|
3.77 %
|
|
Total Cash Equiv. and
Investments
|
|
274,204
|
|
9,609
|
|
4.68 %
|
|
173,613
|
|
5,003
|
|
3.85 %
|
|
Total Loans
(3)(4)
|
|
2,279,378
|
|
109,093
|
|
6.39 %
|
|
958,382
|
|
37,330
|
|
5.21 %
|
|
Total Earning
Assets
|
|
2,553,582
|
|
118,702
|
|
6.21 %
|
|
1,131,995
|
|
42,333
|
|
5.00 %
|
|
Other Assets
|
|
210,962
|
|
|
|
|
|
95,400
|
|
|
|
|
|
Total
Assets
|
|
$
2,764,544
|
|
|
|
|
|
$
1,227,395
|
|
|
|
|
|
Interest bearing
demand(5)
|
|
$
458,184
|
|
$
7,301
|
|
2.13 %
|
|
$
250,830
|
|
$
3,938
|
|
2.10 %
|
|
Money market
demand(5)
|
|
582,998
|
|
9,841
|
|
2.25 %
|
|
248,731
|
|
4,766
|
|
2.56 %
|
|
Time
deposits(5)
|
|
621,881
|
|
21,068
|
|
4.53 %
|
|
285,666
|
|
6,489
|
|
3.04 %
|
|
Total
Borrowings
|
|
147,557
|
|
5,859
|
|
5.30 %
|
|
81,749
|
|
2,507
|
|
4.10 %
|
|
Total Interest-Bearing
Liabilities
|
|
1,810,620
|
|
44,069
|
|
3.25 %
|
|
866,976
|
|
17,700
|
|
2.73 %
|
|
Non Interest-Bearing
Deposits(5)
|
|
650,384
|
|
|
|
|
|
203,284
|
|
|
|
|
|
Total Cost of
Funds
|
|
$
2,461,004
|
|
$
44,069
|
|
2.39 %
|
|
$
1,070,260
|
|
$
17,700
|
|
2.21 %
|
|
Other
Liabilities
|
|
33,086
|
|
|
|
|
|
17,024
|
|
|
|
|
|
Total
Liabilities
|
|
$
2,494,090
|
|
|
|
|
|
$
1,087,284
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
270,454
|
|
|
|
|
|
$
140,005
|
|
|
|
|
|
Total Liabilities
& Shareholders' Equity
|
|
$
2,764,544
|
|
|
|
|
|
$
1,227,289
|
|
|
|
|
|
Net Interest
Income/Spread (FTE)
|
|
|
|
74,633
|
|
2.96 %
|
|
|
|
24,633
|
|
2.27 %
|
|
Tax-Equivalent Basis
Adjustment
|
|
|
|
(284)
|
|
|
|
|
|
(238)
|
|
|
|
Net Interest
Income
|
|
|
|
$
74,349
|
|
|
|
|
|
$
24,395
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
3.89 %
|
|
|
|
|
|
2.88 %
|
|
(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)
|
|
September 30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
Agriculture and
farmland loans
|
|
$
65,166
|
|
$
66,937
|
|
$
67,359
|
|
$
65,861
|
|
$
50,584
|
|
Construction
loans
|
|
175,373
|
|
201,174
|
|
194,391
|
|
178,483
|
|
65,836
|
|
Commercial &
industrial loans
|
|
241,597
|
|
247,190
|
|
218,724
|
|
238,343
|
|
115,572
|
|
Commercial real
estate loans
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily
|
|
212,444
|
|
199,740
|
|
190,146
|
|
180,788
|
|
111,853
|
|
Owner
occupied
|
|
500,643
|
|
492,065
|
|
489,467
|
|
501,732
|
|
160,929
|
|
Non-owner
occupied
|
|
626,030
|
|
610,649
|
|
589,731
|
|
580,972
|
|
257,344
|
|
Residential real
estate loans
|
|
|
|
|
|
|
|
|
|
|
|
First
liens
|
|
400,869
|
|
400,098
|
|
403,300
|
|
402,433
|
|
172,481
|
|
Second liens and lines
of credit
|
|
73,591
|
|
71,168
|
|
71,060
|
|
70,747
|
|
27,870
|
|
Consumer and
other loans
|
|
17,498
|
|
15,514
|
|
16,810
|
|
16,756
|
|
11,869
|
|
Municipal
loans
|
|
4,296
|
|
4,362
|
|
4,473
|
|
5,244
|
|
4,137
|
|
|
2,317,507
|
|
2,308,897
|
|
2,245,461
|
|
2,241,359
|
|
978,475
|
|
Deferred
costs
|
|
634
|
|
478
|
|
356
|
|
174
|
|
437
|
|
Total loans
receivable
|
|
2,318,141
|
|
2,309,375
|
|
2,245,817
|
|
2,241,533
|
|
978,912
|
|
Less: Loans held for
sale
|
|
102,273
|
|
116,178
|
|
115,898
|
|
113,249
|
|
-
|
|
Loans Held for
Investment
|
|
$
2,215,868
|
|
$
2,193,197
|
|
$
2,129,919
|
|
$ 2,128,284
|
|
$
978,912
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
|
|
Investments in
Securities Detail (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2024
|
|
|
|
(In
Thousands)
|
|
Amortized
Cost
|
|
Net
Unrealized Gains
(Losses)
|
|
Fair
Value
|
|
|
|
Available for
Sale:
|
|
|
|
|
|
|
|
|
|
US Government Agency
securities
|
|
$
11,935
|
|
$
442
|
|
$
12,377
|
|
|
|
Obligations of state
and political subdivisions
|
|
51,124
|
|
(2,529)
|
|
48,595
|
|
|
|
Mortgage-backed
securities in government-sponsored entities
|
|
88,528
|
|
(700)
|
|
87,828
|
|
|
|
Other
securities
|
|
524
|
|
(9)
|
|
515
|
|
|
|
|
$
152,111
|
|
$
(2,796)
|
|
$
149,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost
|
|
Net
Unrealized Gains
(Losses)
|
|
Fair
Value
|
|
Allowance
for
Credit Losses
|
|
Held to
Maturity:
|
|
|
|
|
|
|
|
|
|
Corporate
debentures
|
|
$
15,000
|
|
$
(1,198)
|
|
$
13,802
|
|
$
(471)
|
|
Structured
mortgage-backed securities
|
|
19,626
|
|
(605)
|
|
19,021
|
|
-
|
|
|
$
34,626
|
|
$
(1,803)
|
|
$
32,823
|
|
$
(471)
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
September 30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
Demand,
noninterest-bearing
|
|
$
687,536
|
|
$
692,095
|
|
$
653,719
|
|
$
655,953
|
|
$ 210,404
|
|
Demand,
interest-bearing
|
|
547,099
|
|
488,043
|
|
447,412
|
|
438,765
|
|
273,673
|
|
Money market and
savings
|
|
585,395
|
|
582,561
|
|
591,982
|
|
577,448
|
|
258,334
|
|
Time deposits, $250 and
over
|
|
169,616
|
|
156,621
|
|
147,898
|
|
134,324
|
|
51,563
|
|
Time deposits,
other
|
|
401,976
|
|
393,603
|
|
398,365
|
|
372,572
|
|
172,798
|
|
Brokered
deposits
|
|
75,000
|
|
144,429
|
|
146,653
|
|
119,411
|
|
75,000
|
|
|
2,466,622
|
|
2,457,352
|
|
2,386,029
|
|
2,298,473
|
|
1,041,772
|
|
Less: Deposits held for
sale
|
|
93,970
|
|
96,840
|
|
105,628
|
|
99,674
|
|
—
|
|
Total
deposits
|
|
$
2,372,652
|
|
$
2,360,512
|
|
$
2,280,401
|
|
$
2,198,799
|
|
$
1,041,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Deposits
Detail, for the Three Months Ended (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands)
|
|
September 30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
Demand,
noninterest-bearing
|
|
$
659,825
|
|
$
657,939
|
|
$
632,637
|
|
$
371,051
|
|
$ 209,054
|
|
Demand,
interest-bearing
|
|
497,100
|
|
446,109
|
|
424,781
|
|
328,342
|
|
254,725
|
|
Money market and
savings
|
|
580,766
|
|
581,223
|
|
587,455
|
|
367,821
|
|
254,849
|
|
Time
deposits
|
|
560,815
|
|
547,582
|
|
518,929
|
|
317,747
|
|
236,869
|
|
Brokered
deposits
|
|
52,587
|
|
95,337
|
|
89,263
|
|
30,832
|
|
28,705
|
|
Total
deposits
|
|
$
2,351,093
|
|
$
2,328,190
|
|
$
2,253,065
|
|
$
1,415,793
|
|
$
984,202
|
|
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 Nine Months
Ended
|
|
(Dollars in
thousands)
|
9/30/2024
|
|
6/30/2024
|
|
9/30/2023
|
|
9/30/2024
|
|
9/30/2023
|
|
Net income
|
$
7,095
|
|
$
5,804
|
|
$
1,240
|
|
$
18,625
|
|
$
1,033
|
|
Average
assets
|
2,812,261
|
|
2,781,139
|
|
1,246,474
|
|
2,764,544
|
|
1,227,395
|
|
Return on average
assets (annualized)
|
1.00 %
|
|
0.84 %
|
|
0.39 %
|
|
0.90 %
|
|
0.11 %
|
|
Net income
|
7,095
|
|
5,804
|
|
1,240
|
|
18,625
|
|
1,033
|
|
Net (gains) losses on
sale of securities
|
-
|
|
(4)
|
|
-
|
|
(4)
|
|
2,370
|
|
Tax effect at
21%
|
-
|
|
1
|
|
-
|
|
1
|
|
(498)
|
|
Merger &
restructuring expenses
|
171
|
|
631
|
|
777
|
|
858
|
|
1,679
|
|
Tax effect at
21%
|
(36)
|
|
(133)
|
|
(163)
|
|
(180)
|
|
(353)
|
|
Adjusted Net Income
(Non-GAAP)
|
7,230
|
|
6,299
|
|
1,854
|
|
19,300
|
|
4,231
|
|
Average
assets
|
2,812,261
|
|
2,781,139
|
|
1,246,474
|
|
2,764,544
|
|
1,227,395
|
|
Adjusted return on
average assets (annualized)
(Non-GAAP)
|
1.02 %
|
|
0.91 %
|
|
0.59 %
|
|
0.93 %
|
|
0.46 %
|
|
Adjusted Return on
Average Shareholders' Equity
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
(Dollars in
thousands)
|
9/30/2024
|
|
6/30/2024
|
|
9/30/2023
|
|
9/30/2024
|
|
9/30/2023
|
|
Net income
|
$ 7,095
|
|
$
5,804
|
|
$
1,240
|
|
$ 18,625
|
|
$
1,033
|
|
Average shareholders'
equity
|
273,935
|
|
269,834
|
|
142,374
|
|
270,454
|
|
140,005
|
|
Return on average
shareholders' equity (annualized)
|
10.30 %
|
|
8.65 %
|
|
3.46 %
|
|
9.20 %
|
|
0.99 %
|
|
Net income
|
7,095
|
|
5,804
|
|
1,240
|
|
18,625
|
|
1,033
|
|
Net (gains) losses on
sale of securities
|
-
|
|
(4)
|
|
-
|
|
(4)
|
|
2,370
|
|
Tax effect at
21%
|
-
|
|
1
|
|
-
|
|
1
|
|
(498)
|
|
Merger &
restructuring expenses
|
171
|
|
631
|
|
777
|
|
858
|
|
1,679
|
|
Tax effect at
21%
|
(36)
|
|
(133)
|
|
(163)
|
|
(180)
|
|
(353)
|
|
Adjusted Net Income
(Non-GAAP)
|
7,230
|
|
6,299
|
|
1,854
|
|
19,300
|
|
4,231
|
|
Average shareholders'
equity
|
273,935
|
|
269,834
|
|
142,374
|
|
270,454
|
|
140,005
|
|
Adjusted return on
average shareholders' equity (annualized)
(Non-GAAP)
|
10.50 %
|
|
9.39 %
|
|
5.17 %
|
|
9.53 %
|
|
4.04 %
|
|
Adjusted Efficiency
Ratio
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
(Dollars in
thousands)
|
9/30/2024
|
|
6/30/2024
|
|
9/30/2023
|
|
9/30/2024
|
|
9/30/2023
|
|
GAAP-based
efficiency ratio
|
66.71 %
|
|
71.75 %
|
|
86.59 %
|
|
70.21 %
|
|
96.87 %
|
|
Net interest
income
|
$ 24,981
|
|
$ 24,484
|
|
$ 8,352
|
|
$
74,349
|
|
$
24,395
|
|
Noninterest
income
|
2,680
|
|
1,858
|
|
880
|
|
6,267
|
|
(88)
|
|
Less: net gains
(losses) on sales of securities
|
-
|
|
4
|
|
-
|
|
4
|
|
(2,370)
|
|
Adjusted revenue
(Non-GAAP)
|
27,661
|
|
26,338
|
|
9,232
|
|
80,612
|
|
26,677
|
|
Total noninterest
expense
|
18,452
|
|
18,900
|
|
7,994
|
|
56,601
|
|
23,547
|
|
Less: Merger &
restructuring expenses
|
171
|
|
631
|
|
777
|
|
858
|
|
1,679
|
|
Adjusted non-interest
expense
|
18,281
|
|
18,269
|
|
7,217
|
|
55,743
|
|
21,868
|
|
Efficiency ratio, as
adjusted (Non-GAAP)
|
66.09 %
|
|
69.36 %
|
|
78.17 %
|
|
69.15 %
|
|
81.97 %
|
|
Adjusted Earnings
Per Share
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
(Dollars in thousands,
except per share data)
|
9/30/2024
|
|
6/30/2024
|
|
9/30/2023
|
|
9/30/2024
|
|
9/30/2023
|
|
GAAP-Based Earnings
Per Share, Basic
|
$
0.19
|
|
$
0.16
|
|
$
0.08
|
|
$
0.50
|
|
$
0.06
|
|
GAAP-Based
Earnings Per Share, Diluted
|
$
0.19
|
|
$
0.16
|
|
$
0.08
|
|
$
0.50
|
|
$
0.06
|
|
Net Income
|
$ 7,095
|
|
$
5,804
|
|
$
1,240
|
|
$
18,625
|
|
$
1,033
|
|
Net (gains) losses on
sale of securities
|
-
|
|
(4)
|
|
-
|
|
(4)
|
|
2,370
|
|
Tax effect at
21%
|
-
|
|
1
|
|
-
|
|
1
|
|
(498)
|
|
Merger &
restructuring expenses
|
171
|
|
631
|
|
777
|
|
858
|
|
1,679
|
|
Tax effect at
21%
|
(36)
|
|
(133)
|
|
(163)
|
|
(180)
|
|
(353)
|
|
Adjusted Net Income
(Non-GAAP)
|
7,230
|
|
6,299
|
|
1,854
|
|
19,300
|
|
4,231
|
|
Adjusted Earnings
per Share, Basic (Non-GAAP)
|
$
0.20
|
|
$
0.17
|
|
$
0.11
|
|
$
0.52
|
|
$
0.26
|
|
Adjusted Earnings
per Share, Diluted (Non-GAAP)
|
$
0.19
|
|
$
0.17
|
|
$
0.11
|
|
$
0.52
|
|
$
0.26
|
|
Tangible Common
Equity and Tangible Book Value
|
|
|
9/30/2024
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
Tangible Common
Equity
|
|
|
|
(Dollars in thousands,
except for share data)
|
|
Total shareholders'
equity
|
|
$
277,353
|
|
$
271,409
|
|
$
268,243
|
|
$
265,796
|
|
$
141,351
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
(58,806)
|
|
(58,806)
|
|
(56,968)
|
|
(56,968)
|
|
(35,842)
|
|
Other intangible
assets
|
|
(22,118)
|
|
(23,323)
|
|
(24,526)
|
|
(25,733)
|
|
(873)
|
|
Tangible common equity
(Non-GAAP)
|
|
$
196,429
|
|
$
189,280
|
|
$
186,749
|
|
$
183,095
|
|
$
104,636
|
|
Common shares
outstanding
|
|
37,361,560
|
|
37,356,278
|
|
37,348,151
|
|
37,340,700
|
|
16,235,871
|
|
Book value per
common share
|
|
$
7.42
|
|
$
7.27
|
|
$
7.18
|
|
$
7.12
|
|
$
8.71
|
|
Tangible book value
per common share
(Non-GAAP)
|
|
$
5.26
|
|
$
5.07
|
|
$
5.00
|
|
$
4.90
|
|
$
6.44
|
|
Tangible
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 2,879,941
|
|
$
2,858,593
|
|
$ 2,785,669
|
|
$ 2,669,325
|
|
$ 1,255,695
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
(58,806)
|
|
(58,806)
|
|
(56,968)
|
|
(56,968)
|
|
(35,842)
|
|
Other intangible
assets
|
|
(22,118)
|
|
(23,323)
|
|
(24,526)
|
|
(25,733)
|
|
(873)
|
|
Tangible assets
(Non-GAAP)
|
|
$ 2,799,017
|
|
$
2,776,464
|
|
$ 2,704,175
|
|
$ 2,586,624
|
|
$ 1,218,980
|
|
Tangible common
equity to tangible assets (Non-GAAP)
|
|
7.02 %
|
|
6.82 %
|
|
6.91 %
|
|
7.08 %
|
|
8.58 %
|
|
Adjusted Pre-tax,
Pre-provision Net Income (Non-GAAP)
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
(Dollars in thousands,
except per share data)
|
9/30/2024
|
|
6/30/2024
|
|
9/30/2023
|
|
9/30/2024
|
|
9/30/2023
|
|
Net Income -
GAAP
|
$
7,095
|
|
$
5,804
|
|
$
1,240
|
|
$
18,625
|
|
$
1,033
|
|
Net (gains) losses on
sale of securities
|
-
|
|
(4)
|
|
-
|
|
(4)
|
|
2,370
|
|
Tax effect at
21%
|
-
|
|
1
|
|
-
|
|
1
|
|
(498)
|
|
Merger &
restructuring expenses
|
171
|
|
631
|
|
777
|
|
858
|
|
1,679
|
|
Tax effect at
21%
|
(36)
|
|
(133)
|
|
(163)
|
|
(180)
|
|
(353)
|
|
Adjusted Net Income
(Non-GAAP)
|
7,230
|
|
6,299
|
|
1,854
|
|
19,300
|
|
4,231
|
|
Income tax
expense
|
2,030
|
|
1,638
|
|
347
|
|
5,265
|
|
276
|
|
Provision for
(credit to) credit losses
|
84
|
|
-
|
|
(349)
|
|
125
|
|
(549)
|
|
Tax effect included in
Adjusted Net Income
|
36
|
|
132
|
|
163
|
|
179
|
|
851
|
|
Adjusted Pre-tax,
Pre-provision Net Income (Non-GAAP)
|
$
9,380
|
|
$
8,069
|
|
$
2,015
|
|
$
24,869
|
|
$
4,809
|
Contact:
Nicole Davis
Corporate and Investor Relations Officer
717.803.8895
IR@LINKBANCORP.COM
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