EX-99.1 2 lnkb-ex99_1.htm EX-99.1 EX-99.1

img53420396_0.jpg 

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Nicole Davis

Corporate and Investor Relations Officer

717.803.8895

IR@LINKBANCORP.COM

LINKBANCORP, Inc. Announces Second Quarter 2024 Earnings

July 29, 2024 – HARRISBURG, PA – 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

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

2Total 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.

Page 2 of 18

 

•
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,

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

Page 3 of 18

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.”

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%.

 

 

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

Page 4 of 18

 

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.

Page 5 of 18

 

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.

Page 6 of 18

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.

 

 

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

Page 7 of 18

 

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

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

Page 8 of 18

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

 

 

 

Page 9 of 18

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

 

 

 

Page 10 of 18

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.

 

 

Page 11 of 18

(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

 

 

 

Page 12 of 18

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

Page 13 of 18

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Page 14 of 18

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

 

 

 

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

 

 

 

Page 15 of 18

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

)

 

 

 

 

 

Page 16 of 18

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

%

 

 

Page 17 of 18

 

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

 

 

 

Page 18 of 18

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