8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 30, 2023

LINKBANCORP, Inc.

(Exact name of Registrant as Specified in Its Charter)

Pennsylvania	001-41505	82-5130531
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
1250 Camp Hill Bypass, Suite 202
Camp Hill, Pennsylvania		17011
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: 855 569-2265

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01	LNKB	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 30, 2023, LINKBANCORP, Inc. (the “Company”) issued a press release reporting its financial results at and for the three and nine months ended September 30, 2023.

A copy of the press release is attached as Exhibit 99.1 to this report and is being furnished to the Securities and Exchange Commission and shall not be deemed filed for any purpose.

Item 9.01 Financial Statements and Exhibits.

(a)	Financial statements of businesses acquired. None.
(b)	Pro forma financial information. None.
(c)	Shell company transactions. None.
(d)	Exhibits.
	99.1     Press release dated October 30, 2023
	104 Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			LINKBANCORP, INC.
Date:	October 30, 2023	By:	/s/ Carl D. Lundblad
			Carl D. Lundblad President

EX-99.1

 

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Nicole Davis

Corporate and Investor Relations Officer

717.803.8895

IR@LINKBANCORP.COM

LINKBANCORP, Inc. Announces Third Quarter 2023 Financial Results

October 30, 2023 – HARRISBURG, PA -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the “Company”), the parent company of LINKBANK (the “Bank”) reported net income of $1.24 million, or $0.08 per diluted share, for the quarter ended September 30, 2023. Excluding merger related expenses, adjusted earnings were $1.85 million 1, or $0.111 per diluted share for the third quarter of 2023.

Third Quarter 2023 Highlights

•Total deposits grew $6.9 million, or 2.66% annualized during the third quarter of 2023. For the nine months ended September 30, 2023, total deposits grew $95.0 million, or 13.42% annualized, including $17.6 million in growth in noninterest-bearing deposit, representing 12.23% annualized. Estimated uninsured deposits, excluding collateralized public funds and affiliate company accounts, totaled $398.6 million, or 37.8% of total deposits as of September 30, 2023, compared with $378.7 million, or 36.7% of total deposits as of June 30, 2023.

•Total loans grew $9.4 million during the third quarter of 2023, representing a 3.84% annualized growth rate, driven primarily by commercial and industrial loan activity. For the nine months ended September 30, 2023, total loans grew $51.0 million or 7.35% annualized.

1See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.

•Net interest income for the third quarter of 2023 was $8.4 million, compared to $8.1 million for the second quarter of 2023. Net interest margin expanded slightly from 2.81% for the second quarter of 2023 to 2.89% for the third quarter of 2023. The linked quarter increase was primarily due to an increase in average yield on loans outpacing the increase in cost of funds.

•The Company recorded a $349 thousand negative provision for credit losses for the third quarter of 2023, resulting in an allowance for credit losses of $10.0 million, or 1.02% of total loans at September 30, 2023, determined in accordance with the current expected credit losses (“CECL”) accounting standard. The negative provision for credit losses was primarily driven by improvements in external forecast indexes, as well as $12 thousand in net recoveries, offset by loan growth in the period.

•On October 13, 2023, the Company and Partners Bancorp (“Partners”) announced the receipt of FDIC and state regulatory approvals for the pending merger of equals, which is anticipated to close in the fourth quarter of 2023, subject to the approval of the Board of Governors of the Federal Reserve System and other customary closing conditions.

“This quarter’s core results demonstrate progress in our efforts to position the Company in response to the external environment for continued growth and performance, including stabilization in net interest margin and excellent credit quality,” said Andrew Samuel, Chief Executive Officer. “With the anticipated closing of the merger with Partners Bancorp in the fourth quarter, we continue to place an emphasis on initiatives to support a strong balance sheet and core earnings as our teams seek to provide clients with the highest level of service to meet their needs.”

Income Statement

Net interest income before the provision for credit losses for the third quarter of 2023 increased to $8.4 million compared to $8.1 million in the second quarter of 2023. Net interest margin was 2.89% for the third quarter of 2023 compared to 2.81% for the second quarter of 2023. The increase in net interest margin for the current quarter was primarily due to the higher average yield on interest earning assets, which outpaced the increase in the average rate paid on interest bearing liabilities. The overall yield and rate increases were driven by the multiple federal funds

rate increases that occurred over the preceding twelve months, coupled with competition for deposits in the market. The average yield on interest-earning assets increased by 13 basis points over the prior quarter, primarily due to the increase in the average yield on loans of 13 basis points to 5.33% during the third quarter. The increase in the average yield on interest-earning assets was partially offset by a 6 basis points increase in the cost of funds to 2.35%.

The Company’s core deposit generation strategies continue to yield positive results, including 88 net new checking accounts opened during the third quarter of 2023 for a total of $17.5 million in new deposits. Additionally, further momentum in executing the Company’s strategies to service the needs of professional services firms resulted in 73 new accounts opened during the quarter, which are generally expected to fund over the course of the fourth quarter.

Noninterest income remained consistent quarter over quarter at $880 thousand for the third quarter of 2023 compared to $886 thousand in income for the second quarter of 2023, primarily due to a decline in gain on sale of loans, offset by a gain related to the settlement of a legal matter.

Noninterest expense for the third quarter of 2023 increased to $8.0 million compared to $7.8 million for the second quarter of 2023. Excluding one time charges relating to the pending merger with Partners of $777 thousand in the third quarter of 2023 and $315 thousand in the second quarter of 2023, adjusted noninterest expense decreased by $284 thousand to $7.2 million1 in the third quarter, impacted primarily by a decrease in recognized external fraud losses.

Balance Sheet

Total assets were $1.26 billion at September 30, 2023 compared to $1.31 billion at June 30, 2023 and $1.16 billion at December 31, 2022. Deposits and net loans as of September 30, 2023 totaled $1.04 billion and $969.0 million, respectively, compared to deposits and net loans of $1.03 billion and $959.3 million, respectively, at June 30, 2023 and $946.8 million and $923.2 million, respectively, at December 31, 2022.

Total loans increased $9.4 million from June 30, 2023 to September 30, 2023, or 3.84% annualized, with the average commercial loan commitment originated during the third quarter

1See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.

of 2023 totaling approximately $565 thousand with an average outstanding balance of $306 thousand.

Cash and cash equivalents decreased to $68.0 million at September 30, 2023 compared to $123.2 million at June 30, 2023, while increasing compared to the $30.0 million balance at December 31, 2022. In addition to loan growth, this change was primarily a result of the Company decreasing alternative funding by approximately $45.0 million in the third quarter.

Deposits at September 30, 2023 totaled $1.042 billion, an increase of $6.9 million compared to $1.035 billion at June 30, 2023. Average deposits decreased by $12.2 million during the current quarter, driven by a $33.8 million decrease in average time deposits from $299.4 million for the second quarter of 2023 to $265.6 million for the third quarter of 2023, as the Company allowed certain higher cost deposits to mature. This decline was offset by increases in average interest-bearing demand and money market deposits as average noninterest-bearing deposits remained flat.

Shareholders’ equity decreased slightly from $142.5 million at June 30, 2023 to $141.4 million at September 30, 2023. The decrease was primarily attributed to a $1.2 million increase in other comprehensive loss resulting from changes in the interest rate environment.

Asset Quality

In the third quarter of 2023, the Company recorded a negative provision for credit losses, calculated under the CECL model, of $349 thousand, compared to a negative provision for credit losses of $493 thousand in the second quarter. The negative provision for credit losses included the impact of improvements in external forecast indexes, as well as $12 thousand in net recoveries, offset by loan growth in the period.

Asset quality metrics remain strong. As of September 30, 2023, the Company’s non-performing assets were $3.0 million, representing 0.24% of total assets. Non-performing assets at September 30, 2023 excluded purchased with credit deterioration (“PCD”) loans with a balance of $2.1 million. Loans 30-89 days past due at September 30, 2023 were $1.8 million, representing 0.18% of total loans.

The allowance for credit losses-loans was $10.0 million, or 1.02% of total loans at September 30, 2023, compared to the allowance for credit losses-loans of $10.2 million, or 1.05% of total

loans at June 30, 2023. The allowance for credit losses-loans to nonperforming assets was 336.85% at September 30, 2023, compared to 358.12% at June 30, 2023.

Capital

The Bank’s regulatory capital ratios are well in excess of regulatory minimums to be considered “well capitalized” as of September 30, 2023. The Bank’s Total Capital Ratio and Tier 1 Capital Ratio was 12.92% and 12.37%, respectively, at September 30, 2023, compared to 12.88% and 12.29%, respectively, at June 30, 2023 and 12.89% and 12.41%, respectively, at December 31, 2022. The Company’s ratio of Tangible Common Equity to Tangible Assets was 8.58%1 at September 30, 2023.

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 Central and Southeastern Pennsylvania through 10 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 proposed merger with Partners; 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 the COVID-19 pandemic and actions taken by governments, businesses and individuals in response. 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.

LINKBANCORP, Inc. and Subsidiaries
Consolidated Balance Sheet (Unaudited)
	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
(In Thousands, except share and per share data)
ASSETS
Noninterest-bearing cash equivalents	$	5,447		$	4,736		$	4,545		$	4,209		$	8,711
Interest-bearing deposits with other institutions		62,532			118,438			47,190			25,802			66,085
Cash and cash equivalents		67,979			123,174			51,735			30,011			74,796
Certificates of deposit with other banks		249			498			745			5,623			8,358
Securities available for sale, at fair value		78,779			83,620			86,804			78,813			78,698
Securities held to maturity, net of allowance for credit losses		37,266			38,220			38,986			31,822			32,571
Loans receivable, gross		978,912			969,533			945,371			927,871			863,969
Allowance for credit losses - loans		(9,964	)		(10,228	)		(10,526	)		(4,666	)		(4,569	)
Loans receivable, net		968,948			959,305			934,845			923,205			859,400
Investments in restricted bank stock		3,107			5,544			4,134			3,377			3,327
Premises and equipment, net		6,414			6,292			6,497			6,743			9,087
Right-of-use asset – premises		9,727			9,896			10,058			10,219			8,920
Bank-owned life insurance		24,732			24,554			24,384			19,244			19,127
Goodwill and other intangible assets		36,715			36,774			36,833			36,894			36,955
Deferred tax asset		6,880			6,571			6,749			5,619			6,378
Accrued interest receivable and other assets		14,899			14,024			12,188			12,084			7,256
TOTAL ASSETS	$	1,255,695		$	1,308,472		$	1,213,958		$	1,163,654		$	1,144,873
LIABILITIES
Deposits:
Demand, noninterest bearing	$	210,404		$	240,729		$	204,495		$	192,773		$	184,857
Interest bearing		831,368			794,113			780,003			753,999			766,853
Total deposits		1,041,772			1,034,842			984,498			946,772			951,710
Other Borrowings		15,000			74,899			31,250			20,938			—
Subordinated Debt		40,354			40,398			40,441			40,484			40,526
Operating Lease Liabilities		9,728			9,896			10,058			10,219			8,921
Accrued interest payable and other liabilities		7,490			5,985			6,130			6,688			6,774
TOTAL LIABILITIES		1,114,344			1,166,020			1,072,377			1,025,101			1,007,931
SHAREHOLDERS’ EQUITY
Preferred stock		—			—			—			—			—
Common stock		162			162			250			149			149
Surplus		127,856			127,818			127,659			117,709			117,698
Retained earnings		19,062			19,039			18,911			27,100			27,525
Accumulated other comprehensive loss		(5,729	)		(4,567	)		(5,239	)		(6,405	)		(8,430	)
TOTAL SHAREHOLDERS’ EQUITY		141,351			142,452			141,581			138,553			136,942
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,255,695		$	1,308,472		$	1,213,958		$	1,163,654		$	1,144,873
Common shares outstanding		16,235,871			16,228,440			16,221,692			14,939,640			14,939,640

LINKBANCORP, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
	Three Months Ended								Nine Months Ended
	9/30/2023			6/30/2023			9/30/2022			9/30/2023			9/30/2022
(In Thousands, except share and per share data)
INTEREST AND DIVIDEND INCOME
Loans receivable, including fees	$	13,068		$	12,499		$	9,410		$	37,330		$	25,287
Other		1,710			1,827			1,170			4,765			2,771
Total interest and dividend income		14,778			14,326			10,580			42,095			28,058
INTEREST EXPENSE
Deposits		5,434			5,242			1,389			15,193			2,872
Other Borrowings		550			558			82			1,196			106
Subordinated Debt		442			437			439			1,311			1,080
Total interest expense		6,426			6,237			1,910			17,700			4,058
NET INTEREST INCOME BEFORE (CREDIT TO)    PROVISION FOR CREDIT LOSSES		8,352			8,089			8,670			24,395			24,000
(Credit to) provision for credit losses		(349	)		(493	)		515			(549	)		1,190
NET INTEREST INCOME AFTER (CREDIT TO)    PROVISION FOR CREDIT LOSSES		8,701			8,582			8,155			24,944			22,810
NONINTEREST INCOME
Service charges on deposit accounts		198			197			216			593			644
Bank-owned life insurance		177			170			156			488			381
Net realized (losses) gains on the sale of debt securities		—			—			—			(2,370	)		13
Gain on sale of loans		—			296			420			296			753
Other		505			223			249			905			658
Total noninterest income		880			886			1,041			(88	)		2,449
NONINTEREST EXPENSE
Salaries and employee benefits		4,193			4,037			4,234			12,350			11,612
Occupancy		701			696			596			2,104			1,503
Equipment and data processing		934			893			666			2,519			1,858
Professional fees		363			418			330			1,162			865
FDIC insurance		276			184			141			619			483
Bank Shares Tax		278			278			201			834			585
Merger & system conversion related expenses		777			315			—			1,679			—
Other		472			995			877			2,280			2,481
Total noninterest expense		7,994			7,816			7,045			23,547			19,387
Income before income tax expense		1,587			1,652			2,151			1,309			5,872
Income tax expense		347			305			379			276			970
NET INCOME	$	1,240		$	1,347		$	1,772		$	1,033		$	4,902
EARNINGS PER SHARE, BASIC	$	0.08		$	0.08		$	0.17		$	0.06		$	0.49
EARNINGS PER SHARE, DILUTED	$	0.08		$	0.08		$	0.17		$	0.06		$	0.48
WEIGHTED-AVERAGE COMMON SHARES    OUTSTANDING,
BASIC		16,235,144			16,228,069			10,590,079			15,984,151			10,087,341
DILUTED		16,235,144			16,228,069			10,590,079			15,984,151			10,136,457

LINKBANCORP, Inc. and Subsidiaries
Financial Highlights (Unaudited)
	For the Three Months Ended									For the Nine Months Ended
('Dollars In Thousands)	9/30/2023			6/30/2023			9/30/2022			9/30/2023			9/30/2022
Operating Highlights
Net Income	$	1,240		$	1,347		$	1,772		$	1,033		$	4,902
Net Interest Income		8,352			8,089			8,670			24,395			24,000
(Credit to) provision for Credit Losses		(349	)		(493	)		515			(549	)		1,190
Non-Interest Income		880			886			1,041			(88	)		2,449
Non-Interest Expense		7,994			7,816			7,045			23,547			19,387
Earnings per Share, Basic		0.08			0.08			0.17			0.06			0.49
Adjusted Earnings per Share, Basic (2)		0.11			0.10			0.17			0.26			0.48
Earnings per Share, Diluted		0.08			0.08			0.17			0.06			0.48
Adjusted Earnings per Share, Diluted (2)		0.11			0.10			0.17			0.26			0.48
Selected Operating Ratios
Net Interest Margin		2.89	%		2.81	%		3.51	%		2.88	%		3.40	%
Annualized Return on Assets ("ROA")		0.39	%		0.43	%		0.65	%		0.11	%		0.63	%
Adjusted ROA2		0.59	%		0.51	%		0.65	%		0.46	%		0.63	%
Annualized Return on Equity ("ROE")		3.46	%		3.81	%		6.48	%		0.98	%		7.68	%
Adjusted ROE2		5.17	%		4.51	%		6.48	%		4.00	%		7.66	%
Efficiency Ratio		86.59	%		87.09	%		72.55	%		96.87	%		73.30	%
Adjusted Efficiency Ratio3		78.17	%		83.58	%		72.55	%		81.97	%		73.34	%
Noninterest Income to Avg. Assets		0.28	%		0.29	%		0.38	%		-0.01	%		0.32	%
Noninterest Expense to Avg. Assets		2.54	%		2.52	%		2.60	%		2.56	%		2.51	%
	9/30/2023			6/30/2023			3/31/2023			12/31/2022			9/30/2022
Financial Condition Data
Total Assets	$	1,255,695		$	1,308,472		$	1,213,958		$	1,163,654		$	1,144,873
Loans Receivable, Net		968,948			959,305			934,845			923,205			859,400
Noninterest-bearing Deposits		210,404			240,729			204,495			192,773			184,857
Interest-bearing Deposits		831,368			794,113			780,003			753,999			766,853
Total Deposits		1,041,772			1,034,842			984,498			946,772			951,710
Selected Balance Sheet Ratios
Total Capital Ratio1		12.92	%		12.88	%		13.53	%		12.89	%		11.55	%
Tier 1 Capital Ratio1		12.37	%		12.29	%		12.32	%		12.41	%		11.04	%
Common Equity Tier 1 Capital Ratio1		12.37	%		12.29	%		12.32	%		12.41	%		11.04	%
Leverage Ratio1		10.71	%		10.41	%		10.78	%		10.93	%		9.74	%
Tangible Common Equity to Tangible Assets4		8.58	%		8.31	%		8.90	%		9.02	%		9.02	%
Tangible Book Value per Share5	$	6.44		$	6.51		$	6.46		$	6.80		$	6.69
Asset Quality Data
Non-performing Assets	$	2,958		$	2,856		$	2,398		$	2,500		$	1,979
Non-performing Assets to Total Assets		0.24	%		0.22	%		0.20	%		0.21	%		0.17	%
Non-performing Loans to Total Loans		0.30	%		0.29	%		0.25	%		0.27	%		0.23	%
Allowance for Credit Losses - Loans ("ACLL")	$	9,964		$	10,228		$	10,526		$	4,666		$	4,569
ACLL to Total Loans		1.02	%		1.05	%		1.11	%		0.50	%		0.53	%
ACLL to Nonperforming Assets		336.85	%		358.12	%		438.95	%		186.64	%		230.87	%
Net chargeoffs (recoveries)	$	(12	)	$	(97	)	$	(2	)	$	(60	)	$	(164	)
(1) - These capital ratios have been calculated using bank-level capital
(2) - This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.
(3) - The efficiency ratio, as adjusted represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains or losses from securities sales and merger related expenses. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

(4) - We calculate tangible common equity as total shareholders' equity less goodwill and other intangibles, and we calculate tangible assets as total assets less goodwill and other intangibles. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

(5) - We calculate tangible book value per common share as total shareholders' equity less goodwill and other intangibles, divided by the outstanding number of shares of our common stock at the end of the relevant period. Tangible book value per common share is a non-GAAP financial measure, and, as we calculate tangible book value per common share, the most directly comparable GAAP financial measure is book value per common share. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Quarter-To-Date (Unaudited)
	For the Three Months Ended September 30,
	2023								2022
(Dollars in thousands)	Avg Bal		Interest (2)			Yield/Rate			Avg Bal		Interest (2)			Yield/Rate
Int. Earn. Cash	$	55,514	$	577			4.12	%	$	30,630	$	157			2.03	%
Securities
Taxable (1)		82,499		833			4.01	%		86,330		745			3.42	%
Tax-Exempt		38,589		378			3.89	%		39,258		339			3.43	%
Total Securities		121,088		1,211			3.97	%		125,588		1,084			3.42	%
Total Cash Equiv. and Investments		176,602		1,788			4.02	%		156,218		1,241			3.15	%
Total Loans (3)		971,877		13,068			5.33	%		824,309		9,410			4.53	%
Total Earning Assets		1,148,479		14,856			5.13	%		980,527		10,651			4.31	%
Other Assets		97,995								93,116
Total Assets	$	1,246,474							$	1,073,643
Interest bearing demand	$	254,725	$	1,490			2.32	%	$	278,637	$	400			0.57	%
Money market demand		254,849		1,827			2.84	%		244,107		568			0.92	%
Time deposits		265,573		2,117			3.16	%		205,792		421			0.81	%
Total Borrowings		102,669		992			3.83	%		52,562		521			3.93	%
Total Interest-Bearing Liabilities		877,816		6,426			2.90	%		781,098		1,910			0.97	%
Non Int. Bearing Deposits		209,054								170,863
Total Cost of Funds	$	1,086,870	$	6,426			2.35	%	$	951,961	$	1,910			0.80	%
Other Liabilities		17,230								13,243
Total Liabilities	$	1,104,100							$	965,204
Shareholders' Equity	$	142,374							$	108,439
Total Liabilities & Shareholders' Equity	$	1,246,474							$	1,073,643
Net Interest Income/Spread (FTE)				8,430			2.23	%				8,741			3.34	%
Tax-Equivalent Basis Adjustment				(78	)							(71	)
Net Interest Income			$	8,352							$	8,670
Net Interest Margin							2.89	%							3.51	%
(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.
(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table
(3) Includes the balances of nonaccrual loans

LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Linked Quarter-To-Date (Unaudited)
	For the Three Months Ended
	September 30, 2023								June 30, 2023
(Dollars in thousands)	Avg Bal		Interest (2)			Yield/Rate			Avg Bal		Interest (2)			Yield/Rate
Int. Earn. Cash	$	55,514	$	577			4.12	%	$	66,149	$	708			4.29	%
Securities
Taxable (1)		82,499		833			4.01	%		86,366		822			3.82	%
Tax-Exempt		38,589		378			3.89	%		39,139		378			3.87	%
Total Securities		121,088		1,211			3.97	%		125,505		1,200			3.84	%
Total Cash Equiv. and Investments		176,602		1,788			4.02	%		191,654		1,908			3.99	%
Total Loans (3)		971,877		13,068			5.33	%		963,824		12,499			5.20	%
Total Earning Assets		1,148,479		14,856			5.13	%		1,155,478		14,407			5.00	%
Other Assets		97,995								95,531
Total Assets	$	1,246,474							$	1,251,009
Interest bearing demand	$	254,725	$	1,490			2.32	%	$	243,539	$	1,261			2.08	%
Money market demand		254,849		1,827			2.84	%		244,355		1,589			2.61	%
Time deposits		265,573		2,117			3.16	%		299,398		2,392			3.20	%
Total Borrowings		102,669		992			3.83	%		95,792		995			4.17	%
Total Interest-Bearing Liabilities		877,816		6,426			2.90	%		883,084		6,237			2.83	%
Non Int Bearing Deposits		209,054								209,072
Total Cost of Funds	$	1,086,870	$	6,426			2.35	%	$	1,092,156	$	6,237			2.29	%
Other Liabilities		17,230								17,073
Total Liabilities	$	1,104,100							$	1,109,229
Shareholders' Equity	$	142,374							$	141,780
Total Liabilities & Shareholders' Equity	$	1,246,474							$	1,251,009
Net Interest Income/Spread (FTE)				8,430			2.23	%				8,170			2.17	%
Tax-Equivalent Basis Adjustment				(78	)							(81	)
Net Interest Income			$	8,352							$	8,089
Net Interest Margin							2.89	%							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

LINKBANCORP, Inc. and Subsidiaries
Loans Receivable Detail (Unaudited)
(In Thousands)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Agriculture and farmland loans	$	50,584	$	50,552	$	53,301	$	55,746	$	53,570
Construction loans		65,836		75,628		67,934		57,713		49,311
Commercial & industrial loans		115,572		104,869		99,356		104,755		98,475
Commercial real estate loans
Multifamily		111,853		113,254		111,461		105,390		95,537
Owner occupied		161,751		154,520		151,407		139,554		114,863
Non-owner occupied		256,522		254,691		249,638		245,274		233,887
Residential real estate loans
First liens		172,481		170,271		166,478		168,084		166,388
Second liens and lines of credit		27,870		30,148		30,720		35,576		34,620
Consumer and other loans		11,869		11,308		10,472		10,057		11,929
Municipal loans		4,137		3,929		4,292		5,466		5,404
		978,475		969,170		945,059		927,615		863,984
Deferred costs (fees)		437		363		312		256		(15	)
Total loans receivable	$	978,912	$	969,533	$	945,371	$	927,871	$	863,969

LINKBANCORP, Inc. and Subsidiaries
Investments in Securities Detail (Unaudited)
	September 30, 2023
(In Thousands)	Amortized Cost		Net Unrealized Losses			Fair Value
Available for Sale:
U.S. government agency securities	$	2,000	$	(18	)	$	1,982
Small Business Administration loan pools		693		(14	)		679
Obligations of state and political subdivisions		45,614		(5,935	)		39,679
Mortgage-backed securities in government-sponsored entities		40,987		(4,548	)		36,439
	$	89,294	$	(10,515	)	$	78,779
	Amortized Cost		Net Unrealized Losses			Fair Value		Allowance for Credit Losses
Held to Maturity:
Corporate debentures	$	15,000	$	(1,963	)	$	13,037	$	512
Structured mortgage-backed securities		22,778		(1,227	)		21,551		-
	$	37,778	$	(3,190	)	$	34,588	$	512
	December 31, 2022
(In Thousands)	Amortized Cost		Net Unrealized Losses			Fair Value
Available for Sale:
Small Business Administration loan pools	$	858	$	(15	)	$	843
Obligations of state and political subdivisions		44,189		(4,020	)		40,169
Mortgage-backed securities in government-sponsored entities		41,873		(4,072	)		37,801
	$	86,920	$	(8,107	)	$	78,813

LINKBANCORP, Inc. and Subsidiaries
Deposits Detail (Unaudited)
(In Thousands)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Demand, noninterest-bearing	$	210,404	$	240,729	$	204,495	$	192,773	$	184,857
Demand, interest-bearing		273,673		237,114		250,944		254,478		305,934
Money market and savings		258,334		254,632		241,858		228,048		266,743
Time deposits, $250 and over		51,563		57,194		51,855		46,116		39,123
Time deposits, other		247,798		245,173		235,346		225,357		155,053
	$	1,041,772	$	1,034,842	$	984,498	$	946,772	$	951,710
Average Deposits Detail, for the Three Months Ended (Unaudited)
(In Thousands)	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Demand, noninterest-bearing	$	209,054	$	209,072	$	192,135	$	199,556	$	170,863
Demand, interest-bearing		254,725		243,539		251,103		278,816		278,637
Money market and savings		254,849		244,355		245,563		245,154		244,107
Time deposits		265,573		299,398		290,605		211,090		205,792
	$	984,201	$	996,364	$	979,406	$	934,616	$	899,399

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)	9/30/2023			6/30/2023			9/30/2022			9/30/2023			9/30/2022
Net income	$	1,240		$	1,347		$	1,772		$	1,033		$	4,902
Average assets		1,246,474			1,251,009			1,073,643			1,227,752			1,034,519
Return on average assets (annualized)		0.39	%		0.43	%		0.65	%		0.11	%		0.63	%
Net income		1,240			1,347			1,772			1,033			4,902
Net losses (gains) on sale of securities		-			-			-			2,370			(13	)
Tax effect at 21%		-			-			-			(498	)		3
Merger & system conversion related expenses		777			315			-			1,679			-
Tax effect at 21%		(163	)		(66	)		-			(353	)		-
Adjusted Net Income (Non-GAAP)		1,854			1,596			1,772			4,231			4,892
Average assets		1,246,474			1,251,009			1,073,643			1,227,752			1,034,519
Adjusted return on average assets (annualized) (Non-GAAP)		0.59	%		0.51	%		0.65	%		0.46	%		0.63	%

Adjusted Return on Average Shareholders' Equity
	For the Three Months Ended									For the Nine Months Ended
(Dollars in thousands)	9/30/2023			6/30/2023			9/30/2022			9/30/2023			9/30/2022
Net income	$	1,240		$	1,347		$	1,772		$	1,033		$	4,902
Average shareholders' equity		142,374			141,780			108,439			141,601			85,345
Return on average shareholders' equity (annualized)		3.46	%		3.81	%		6.48	%		0.98	%		7.68	%
Net income		1,240			1,347			1,772			1,033			4,902
Net losses (gains) on sale of securities		-			-			-			2,370			(13	)
Tax effect at 21%		-			-			-			(498	)		3
Merger & system conversion related expenses		777			315			-			1,679			-
Tax effect at 21%		(163	)		(66	)		-			(353	)		-
Adjusted Net Income (Non-GAAP)		1,854			1,596			1,772			4,231			4,892
Average shareholders' equity		142,374			141,780			108,439			141,601			85,345
Adjusted return on average shareholders' equity (annualized) (Non-GAAP)		5.17	%		4.51	%		6.48	%		4.00	%		7.66	%

Adjusted Efficiency Ratio
	For the Three Months Ended									For the Nine Months Ended
(Dollars in thousands)	9/30/2023			6/30/2023			9/30/2022			9/30/2023			9/30/2022
GAAP-based efficiency ratio		86.59	%		87.09	%		72.55	%		96.87	%		73.30	%
Net interest income	$	8,352		$	8,089		$	8,670		$	24,395		$	24,000
Noninterest income		880			886			1,041			(88	)		2,449
Less: net gains (losses) on sales of securities		-			-			-			(2,370	)		13
Adjusted revenue (Non-GAAP)		9,232			8,975			9,711			26,677			26,436
Total noninterest expense		7,994			7,816			7,045			23,547			19,387
Less: Merger & system conversion related expenses		777			315			-			1,679			-
Adjusted non-interest expense		7,217			7,501			7,045			21,868			19,387
Efficiency ratio, as adjusted (Non-GAAP)		78.17	%		83.58	%		72.55	%		81.97	%		73.34	%

Tangible Common Equity and Tangible Book Value
	9/30/2023			6/30/2023			3/31/2023			12/31/2022			9/30/2022
Tangible Common Equity				(Dollars in thousands, except for share data)
Total shareholders’ equity	$	141,351		$	142,452		$	141,581		$	138,553		$	136,942
Adjustments:
Goodwill		(35,842	)		(35,842	)		(35,842	)		(35,842	)		(35,842	)
Other intangible assets		(873	)		(932	)		(991	)		(1,052	)		(1,113	)
Tangible common equity (Non-GAAP)	$	104,636		$	105,678		$	104,748		$	101,659		$	99,987
Common shares outstanding		16,235,871			16,228,440			16,221,692			14,939,640			14,939,640
Book value per common share	$	8.71		$	8.78		$	8.73		$	9.27		$	9.17
Tangible book value per common share (Non-GAAP)	$	6.44		$	6.51		$	6.46		$	6.80		$	6.69
Tangible Assets
Total assets	$	1,255,695		$	1,308,472		$	1,213,958		$	1,163,654		$	1,144,873
Adjustments:
Goodwill		(35,842	)		(35,842	)		(35,842	)		(35,842	)		(35,842	)
Other intangible assets		(873	)		(932	)		(991	)		(1,052	)		(1,113	)
Tangible assets (Non-GAAP)	$	1,218,980		$	1,271,698		$	1,177,125		$	1,126,760		$	1,107,918
Tangible common equity to tangible assets (Non-GAAP)		8.58	%		8.31	%		8.90	%		9.02	%		9.02	%

Adjusted Earnings Per Share
	For the Three Months Ended								For the Nine Months Ended
(Dollars in thousands, except per share data)	9/30/2023			6/30/2023			9/30/2022		9/30/2023			9/30/2022
GAAP-Based Earnings Per Share, Basic	$	0.08		$	0.08		$	0.17	$	0.06		$	0.49
GAAP-Based Earnings Per Share, Diluted	$	0.08		$	0.08		$	0.17	$	0.06		$	0.48
Net Income	$	1,240		$	1,347		$	1,772	$	1,033		$	4,902
Net losses (gains) on sale of securities		-			-			-		2,370			(13	)
Tax effect at 21%		-			-			-		(498	)		3
Merger & system conversion related expenses		777			315			-		1,679			-
Tax effect at 21%		(163	)		(66	)		-		(353	)		-
Adjusted Net Income (Non-GAAP)		1,854			1,596			1,772		4,231			4,892
Adjusted Earnings per Share, Basic (Non-GAAP)	$	0.11		$	0.10		$	0.17	$	0.26		$	0.48
Adjusted Earnings per Share, Diluted (Non-GAAP)	$	0.11		$	0.10		$	0.17	$	0.26		$	0.48

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)	9/30/2023			6/30/2023			9/30/2022		9/30/2023			9/30/2022
Net Income (Loss) - GAAP	$	1,240		$	1,347		$	1,772	$	1,033		$	4,902
Net losses (gains) on sale of securities		-			-			-		2,370			(13	)
Tax effect at 21%		-			-			-		(498	)		3
Merger & system conversion related expenses		777			315			-		1,679			-
Tax effect at 21%		(163	)		(66	)		-		(353	)		-
Adjusted Net Income (Non-GAAP)		1,854			1,596			1,772		4,231			4,892
Income tax expense		347			305			379		276			970
(Credit to) provision for credit losses		(349	)		(493	)		515		(549	)		1,190
Tax effect included in Adjusted Net Income		163			66			-		851			(3	)
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)	$	2,015		$	1,474		$	2,666	$	4,809		$	7,049

XML

Document And Entity Information	Oct. 30, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 30, 2023
Entity Registrant Name	LINKBANCORP, Inc.
Entity Central Index Key	0001756701
Entity Emerging Growth Company	true
Securities Act File Number	001-41505
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	82-5130531
Entity Address, Address Line One	1250 Camp Hill Bypass, Suite 202
Entity Address, City or Town	Camp Hill
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	17011
City Area Code	855
Local Phone Number	569-2265
Entity Information, Former Legal or Registered Name	Not Applicable
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Ex Transition Period	false
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	LNKB
Security Exchange Name	NASDAQ