EX-99.1 4 lnkb-ex99_1.htm EX-99.1 EX-99.1

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Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Nicole Davis

Corporate and Investor Relations Officer

717.803.8895

[email protected]

LINKBANCORP, Inc. Announces Record Third Quarter Net Income of $7.1 Million

October 28, 2024 – HARRISBURG, PA – LINKBANCORP, Inc. (NASDAQ: LNKB) (the “Company”), the parent company of LINKBANK (the “Bank”) reported record net income of $7.1 million, or $0.19 per diluted share, for the quarter ended September 30, 2024, demonstrating continued growth compared to net income of $5.8 million, or $0.16 per diluted share, for the linked quarter ended June 30, 2024. Excluding expenses associated with the sale of its New Jersey branches and branch consolidations, adjusted earnings were $7.2 million1, or $0.191 per diluted share for the third quarter of 2024, compared with $6.3 million1, or $0.171 per diluted share for the second quarter of 2024.

Third Quarter 2024 Highlights

•
Annualized return on average assets was 1.00% for the third quarter of 2024, compared to 0.84% for the the second quarter of 2024. Adjusted return on average assets was 1.02%1 for the third quarter of 2024, compared to 0.91%1 for the second quarter of 2024.
•
Total deposits2increased $9.3 million from $2.46 billion at June 30, 2024 to $2.47 billion at September 30, 2024, as strong growth in demand deposit accounts of $54.5 million and retail time deposits of $21.4 million exceeded a $69.4 million decrease in brokered deposits. Excluding loans held for sale, total loans increased $22.7 million to $2.22 billion at September 30, 2024, compared to $2.19 billion at

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 $102.3 million and $94.0 million, respectively, at September 30, 2024. These balances were $116.2 million and $96.8 million, respectively, at June 30, 2024.

Page 2 of 18

June 30, 2024. Total loans2 increased $8.8 million from $2.31 billion at June 30, 2024 to $2.32 billion at September 30, 2024.

•
Noninterest income increased $822 thousand quarter-over-quarter to $2.7 million for the third quarter of 2024 compared to $1.9 million for the second quarter of 2024.
•
Noninterest expense decreased $448 thousand quarter over quarter to $18.5 million in the third quarter of 2024, as the Company continued to execute on post-merger efficiency strategies.
•
Net interest income before provision for credit losses was $25.0 million for the third quarter of 2024 compared to $24.5 million in the second quarter of 2024. Net interest margin was 3.82% for the third quarter of 2024 compared to 3.83% for the second quarter of 2024.
•
Non-performing assets were $17.4 million, representing 0.60% of total assets at September 30, 2024, compared to $10.6 million, representing 0.37% of total assets at June 30, 2024. Loans 30-89 days past due at September 30, 2024 were $2.7 million, representing 0.12% of total loans, an improvement compared to $5.2 million or 0.24% of total loans at June 30, 2024. The allowance for credit losses-loans was 1.20% of total loans held for investment at September 30, 2024, unchanged from June 30, 2024.
•
On May 9, 2024, the Company announced that LINKBANK had entered into a definitive purchase and assumption agreement for the sale of the Bank’s banking operations and three branches in New Jersey, including related loans and deposits (the “Branch Sale”). The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2024 or the first quarter of 2025.

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

Page 3 of 18

As a result of the Branch Sale announcement, associated loans and deposits were reclassified as held for sale, impacting the Company’s allowance for credit losses and purchase accounting amortization related to the loans held for sale.

“We are pleased to announce another quarter of record earnings for the third quarter of 2024, representing an annualized 1.00% return on average assets for the quarter and demonstrating solid progress toward achieving our target profitability metrics. This is a result of prioritizing high quality loan and strong core deposit growth, with an emphasis on achieving cost efficiencies from the merger and branch consolidations, while also executing on non-interest income initiatives,” said Andrew Samuel, Chief Executive Officer of LINKBANCORP. “As we look to close 2024 with a strong fourth quarter, our teams continue to implement strategies to reduce funding costs and operational expenses and generate additional revenue to support further earnings growth.”

Income Statement

Net interest income before the provision for credit losses for the third quarter of 2024 was $25.0 million compared to $24.5 million in the second quarter of 2024. Net interest margin was 3.82% for the third quarter of 2024 compared to 3.83% for the second quarter of 2024. Cost of funds decreased to 2.42% for the third quarter of 2024 compared to 2.43% for the second quarter of 2024, while the average yield on interest earning assets decreased from 6.19% for the second quarter of 2024 to 6.16% for the third quarter of 2024 due to the cut in the target federal funds rate.

Noninterest income increased $822 thousand quarter-over-quarter to $2.7 million for the third quarter of 2024 compared to $1.9 million for the second quarter of 2024, and included strong growth in service charges on deposit accounts and gain on sale of loans, as well as increases in merchant fees and swap fee income.

Noninterest expense for the third quarter of 2024 was $18.5 million compared to $18.9 million for the second quarter of 2024. Excluding one-time costs associated with the Branch Sale and branch consolidations of $171 thousand in the third quarter of 2024 and $631 thousand in the second quarter of 2024, adjusted noninterest expense was generally flat at $18.3 million for the second and third quarter of 20241 , as decreases in personnel and occupancy costs were offset by increases in FDIC deposit insurance and fraud-related operating losses.

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

Page 4 of 18

Income tax expense was $2.0 million for the third quarter of 2024, reflecting an effective tax rate of 22.2%.

Balance Sheet

Total assets were $2.88 billion at September 30, 2024 compared to $2.86 billion at June 30, 2024 and $1.26 billion at September 30, 2023. Deposits and net loans as of September 30, 2024 totaled $2.37 billion and $2.19 billion, respectively, compared to deposits and net loans of $2.36 billion and $2.17 billion, respectively, at June 30, 2024 and $1.04 billion and $969.0 million, respectively, at September 30, 2023. Deposits and net loans exclude balances held for sale in the Branch Sale of $94.0 million and $102.3 million, respectively, at September 30, 2024, which are reflected in liabilities held for sale and assets held for sale. These balances were $96.8 million and $116.2 million respectively, at June 30, 2024.

Including loans held for sale, total loans increased $8.8 million, from $2.31 billion at June 30, 2024 to $2.32 billion at September 30, 2024. Total commercial loan commitments for the third quarter of 2024 were $111.0 million with funded balances of $74.8 million. The average commercial loan commitment originated during the third quarter of 2024 totaled approximately $810 thousand with an average outstanding funded balance of $546 thousand.

Including deposits held for sale, total deposits at September 30, 2024 totaled $2.47 billion, an increase of $9.3 million from $2.46 billion at June 30, 2024. This increase included growth of $54.5 million in demand deposit accounts and $21.4 million in retail time deposits, offset by a decrease in brokered deposits of $69.4 million quarter over quarter.

The Company maintains strong on-balance sheet liquidity, as cash and cash equivalents increased to $191.2 million at September 30, 2024 compared to $181.7 million at June 30, 2024.

Shareholders’ equity increased from $271.4 million at June 30, 2024 to $277.4 million at September 30, 2024 primarily as a result of a $4.3 million increase in retained earnings. Book value per share increased to $7.42 at September 30, 2024 compared to $7.27 at June 30, 2024. Tangible book value per share increased to $5.26 at September 30, 2024 compared to $5.07 at June 30, 20241.

 

 

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

Page 5 of 18

 

Asset Quality

The Company recorded a $84 thousand provision for credit losses during the third quarter of 2024, after recording no provision for credit losses in the second quarter of 2024.

As of September 30, 2024, the Company’s non-performing assets were $17.4 million, representing 0.60% of total assets, compared to $10.6 million, representing 0.37% of total assets at June 30, 2024. The increase related primarily to a single real estate secured loan acquired in the merger with Partners Bancorp (the “Partners Merger”) with an outstanding principal balance of approximately $5.5 million at September 30, 2024. Based on a recent appraisal and application of the Company’s reserve methodology, a specific reserve was not needed for this loan as of September 30, 2024.

Loans 30-89 days past due at September 30, 2024 were $2.7 million, representing 0.12% of total loans, an improvement compared to $5.2 million or 0.24% of total loans at June 30, 2024.

The allowance for credit losses-loans was $26.5 million, or 1.20% of total loans held for investment at September 30, 2024, compared to $26.3 million, or 1.20% of total loans held for investment at June 30, 2024. In addition to the recorded provision, the increased allowance resulted from a reallocation of a portion of the allowance for credit losses-unfunded commitments to the allowance for credit losses-loans. The allowance for credit losses-loans to nonperforming assets was 152.73% at September 30, 2024, compared to 248.26% at June 30, 2024.

Capital

The Bank’s regulatory capital ratios were well in excess of regulatory minimums to be considered “well capitalized” as of September 30, 2024. The Bank’s Total Capital Ratio and Tier 1 Capital Ratio were 11.44% and 10.62% respectively, at September 30, 2024, compared to 11.09% and 10.30%, respectively, at June 30, 2024 and 12.92% and 12.37%, respectively, at September 30, 2023. The Company’s ratio of Tangible Common Equity to Tangible Assets was 7.02%1 at September 30, 2024.

 

 

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

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 Partners Merger; the timing and receipt of regulatory approvals to complete the Branch Sale; changes in general economic trends, including inflation and changes in interest rates; increased competition; changes in consumer demand for financial services; our ability to control costs and expenses; adverse developments in borrower industries and, in particular, declines in real estate values; changes in and compliance with federal and state laws that regulate our business and capital levels; our ability to raise capital as needed; and the effects of any cybersecurity breaches. The Company does not undertake, and specifically disclaims, any obligation to publicly revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. Accordingly, you should not place undue reliance on forward-looking statements.

Given that the Company’s merger with Partners Bancorp was completed on November 30, 2023, reported results prior to the fourth quarter of 2023 included in the following tables reflect legacy LINKBANCORP results only.

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2024

 

 

June 30, 2024

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

(In Thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing cash equivalents

 

$

15,295

 

 

$

14,516

 

 

$

13,552

 

 

$

13,089

 

 

$

5,447

 

Interest-bearing deposits with other institutions

 

 

175,937

 

 

 

167,141

 

 

 

158,731

 

 

 

67,101

 

 

 

62,532

 

Cash and cash equivalents

 

 

191,232

 

 

 

181,657

 

 

 

172,283

 

 

 

80,190

 

 

 

67,979

 

Certificates of deposit with other banks

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

249

 

Securities available for sale, at fair value

 

 

149,315

 

 

 

140,121

 

 

 

133,949

 

 

 

115,490

 

 

 

78,779

 

Securities held to maturity, net of allowance for credit losses

 

 

34,155

 

 

 

35,343

 

 

 

36,109

 

 

 

36,223

 

 

 

37,266

 

Loans receivable, gross

 

 

2,215,868

 

 

 

2,193,197

 

 

 

2,129,919

 

 

 

2,128,284

 

 

 

978,912

 

Allowance for credit losses - loans

 

 

(26,542

)

 

 

(26,288

)

 

 

(23,842

)

 

 

(23,767

)

 

 

(9,964

)

Loans receivable, net

 

 

2,189,326

 

 

 

2,166,909

 

 

 

2,106,077

 

 

 

2,104,517

 

 

 

968,948

 

Investments in restricted bank stock

 

 

4,904

 

 

 

4,928

 

 

 

4,286

 

 

 

3,965

 

 

 

3,107

 

Premises and equipment, net

 

 

17,623

 

 

 

18,364

 

 

 

20,102

 

 

 

20,130

 

 

 

6,414

 

Right-of-Use Asset – premises

 

 

14,150

 

 

 

13,970

 

 

 

14,577

 

 

 

15,497

 

 

 

9,727

 

Bank-owned life insurance

 

 

51,646

 

 

 

49,616

 

 

 

49,230

 

 

 

48,847

 

 

 

24,732

 

Goodwill and other intangible assets

 

 

80,924

 

 

 

82,129

 

 

 

81,494

 

 

 

82,701

 

 

 

36,715

 

Deferred tax asset

 

 

21,662

 

 

 

22,024

 

 

 

22,717

 

 

 

24,153

 

 

 

6,880

 

Assets held for sale

 

 

104,660

 

 

 

118,362

 

 

 

118,115

 

 

 

115,499

 

 

 

—

 

Accrued interest receivable and other assets

 

 

20,344

 

 

 

25,170

 

 

 

26,730

 

 

 

22,113

 

 

 

14,899

 

TOTAL ASSETS

 

$

2,879,941

 

 

$

2,858,593

 

 

$

2,785,669

 

 

$

2,669,325

 

 

$

1,255,695

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand, noninterest bearing

 

$

658,473

 

 

$

661,292

 

 

$

618,277

 

 

$

624,780

 

 

$

210,404

 

Interest bearing

 

 

1,714,179

 

 

 

1,699,220

 

 

 

1,662,124

 

 

 

1,574,019

 

 

 

831,368

 

Total deposits

 

 

2,372,652

 

 

 

2,360,512

 

 

 

2,280,401

 

 

 

2,198,799

 

 

 

1,041,772

 

Long-term borrowings

 

 

40,000

 

 

 

40,000

 

 

 

40,000

 

 

 

—

 

 

 

—

 

Short-term borrowings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,000

 

 

 

15,000

 

Note payable

 

 

572

 

 

 

578

 

 

 

584

 

 

 

590

 

 

 

—

 

Subordinated debt

 

 

61,843

 

 

 

61,706

 

 

 

61,573

 

 

 

61,444

 

 

 

40,354

 

Lease liabilities

 

 

14,911

 

 

 

14,746

 

 

 

15,357

 

 

 

16,361

 

 

 

9,728

 

Liabilities held for sale

 

 

94,228

 

 

 

96,916

 

 

 

105,716

 

 

 

99,777

 

 

 

—

 

Accrued interest payable and other liabilities

 

 

18,382

 

 

 

12,726

 

 

 

13,795

 

 

 

16,558

 

 

 

7,490

 

TOTAL LIABILITIES

 

 

2,602,588

 

 

 

2,587,184

 

 

 

2,517,426

 

 

 

2,403,529

 

 

 

1,114,344

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock

 

 

370

 

 

 

370

 

 

 

369

 

 

 

369

 

 

 

162

 

Surplus

 

 

264,059

 

 

 

263,795

 

 

 

263,577

 

 

 

263,310

 

 

 

127,856

 

Retained earnings

 

 

15,147

 

 

 

10,826

 

 

 

7,724

 

 

 

4,843

 

 

 

19,062

 

Accumulated other comprehensive loss

 

 

(2,223

)

 

 

(3,582

)

 

 

(3,427

)

 

 

(3,209

)

 

 

(5,729

)

        Total equity attributable to parent

 

 

277,353

 

 

 

271,409

 

 

 

268,243

 

 

 

265,313

 

 

 

141,351

 

        Noncontrolling interest in consolidated subsidiary

 

 

—

 

 

 

—

 

 

 

—

 

 

 

483

 

 

 

—

 

TOTAL SHAREHOLDERS' EQUITY

 

 

277,353

 

 

 

271,409

 

 

 

268,243

 

 

 

265,796

 

 

 

141,351

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

2,879,941

 

 

$

2,858,593

 

 

$

2,785,669

 

 

$

2,669,325

 

 

$

1,255,695

 

Common shares outstanding

 

 

37,361,560

 

 

 

37,356,278

 

 

 

37,348,151

 

 

 

37,340,700

 

 

 

16,235,871

 

 

 

Page 9 of 18

LINKBANCORP, Inc. and Subsidiaries

 

Consolidated Statements of Operations (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/2024

 

 

6/30/2024

 

 

9/30/2023

 

 

 

 

9/30/2024

 

 

9/30/2023

 

(In Thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, including fees

 

$

36,856

 

 

$

36,112

 

 

$

13,068

 

 

 

 

$

109,093

 

 

$

37,330

 

Other

 

 

3,338

 

 

 

3,337

 

 

 

1,710

 

 

 

 

 

9,325

 

 

 

4,765

 

Total interest and dividend income

 

 

40,194

 

 

 

39,449

 

 

 

14,778

 

 

 

 

 

118,418

 

 

 

42,095

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,292

 

 

 

13,071

 

 

 

5,434

 

 

 

 

 

38,210

 

 

 

15,193

 

Other Borrowings

 

 

949

 

 

 

932

 

 

 

550

 

 

 

 

 

2,967

 

 

 

1,196

 

Subordinated Debt

 

 

972

 

 

 

962

 

 

 

442

 

 

 

 

 

2,892

 

 

 

1,311

 

Total interest expense

 

 

15,213

 

 

 

14,965

 

 

 

6,426

 

 

 

 

 

44,069

 

 

 

17,700

 

NET INTEREST INCOME BEFORE
   PROVISION FOR (CREDIT TO) CREDIT LOSSES

 

 

24,981

 

 

 

24,484

 

 

 

8,352

 

 

 

 

 

74,349

 

 

 

24,395

 

Provision for (credit to) credit losses

 

 

84

 

 

 

—

 

 

 

(349

)

 

 

 

 

125

 

 

 

(549

)

NET INTEREST INCOME AFTER
   PROVISION FOR (CREDIT TO) CREDIT LOSSES

 

 

24,897

 

 

 

24,484

 

 

 

8,701

 

 

 

 

 

74,224

 

 

 

24,944

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

1,052

 

 

 

865

 

 

 

198

 

 

 

 

 

2,697

 

 

 

593

 

Bank-owned life insurance

 

 

430

 

 

 

386

 

 

 

177

 

 

 

 

 

1,199

 

 

 

488

 

Net realized gains (losses) on the sale of debt securities

 

 

—

 

 

 

4

 

 

 

—

 

 

 

 

 

4

 

 

 

(2,370

)

Gain on sale of loans

 

 

138

 

 

 

12

 

 

 

—

 

 

 

 

 

200

 

 

 

296

 

Other

 

 

1,060

 

 

 

591

 

 

 

505

 

 

 

 

 

2,167

 

 

 

905

 

Total noninterest income

 

 

2,680

 

 

 

1,858

 

 

 

880

 

 

 

 

 

6,267

 

 

 

(88

)

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,855

 

 

 

9,941

 

 

 

4,193

 

 

 

 

 

30,914

 

 

 

12,350

 

Occupancy

 

 

1,440

 

 

 

1,559

 

 

 

701

 

 

 

 

 

4,577

 

 

 

2,104

 

Equipment and data processing

 

 

1,640

 

 

 

1,824

 

 

 

934

 

 

 

 

 

5,290

 

 

 

2,519

 

Professional fees

 

 

763

 

 

 

788

 

 

 

363

 

 

 

 

 

2,299

 

 

 

1,162

 

FDIC insurance and supervisory fees

 

 

812

 

 

 

545

 

 

 

276

 

 

 

 

 

1,709

 

 

 

619

 

Bank Shares Tax

 

 

752

 

 

 

760

 

 

 

278

 

 

 

 

 

2,103

 

 

 

834

 

Intangible amortization

 

 

1,205

 

 

 

1,204

 

 

 

59

 

 

 

 

 

3,616

 

 

 

179

 

Merger & restructuring expenses

 

 

171

 

 

 

631

 

 

 

777

 

 

 

 

 

858

 

 

 

1,679

 

Advertising

 

 

163

 

 

 

241

 

 

 

77

 

 

 

 

 

505

 

 

 

268

 

Other

 

 

1,651

 

 

 

1,407

 

 

 

336

 

 

 

 

 

4,730

 

 

 

1,833

 

Total noninterest expense

 

 

18,452

 

 

 

18,900

 

 

 

7,994

 

 

 

 

 

56,601

 

 

 

23,547

 

Income before income tax expense

 

 

9,125

 

 

 

7,442

 

 

 

1,587

 

 

 

 

 

23,890

 

 

 

1,309

 

Income tax expense

 

 

2,030

 

 

 

1,638

 

 

 

347

 

 

 

 

 

5,265

 

 

 

276

 

NET INCOME

 

$

7,095

 

 

$

5,804

 

 

$

1,240

 

 

 

 

$

18,625

 

 

$

1,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE, BASIC

 

$

0.19

 

 

$

0.16

 

 

$

0.08

 

 

 

 

$

0.50

 

 

$

0.06

 

 EARNINGS PER SHARE, DILUTED

 

$

0.19

 

 

$

0.16

 

 

$

0.08

 

 

 

 

$

0.50

 

 

$

0.06

 

WEIGHTED-AVERAGE COMMON SHARES
   OUTSTANDING,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC

 

 

36,983,637

 

 

 

36,970,768

 

 

 

16,235,144

 

 

 

 

 

36,972,127

 

 

 

15,984,151

 

DILUTED

 

 

37,090,111

 

 

 

37,040,748

 

 

 

16,235,144

 

 

 

 

 

37,061,512

 

 

 

15,984,151

 

 

 

Page 10 of 18

LINKBANCORP, Inc. and Subsidiaries

 

Financial Highlights (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

(Dollars In Thousands, except per share data)

9/30/2024

 

 

6/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

Operating Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

7,095

 

 

$

5,804

 

 

$

1,240

 

 

$

18,625

 

 

$

1,033

 

Net Interest Income

 

24,981

 

 

 

24,484

 

 

 

8,352

 

 

 

74,349

 

 

 

24,395

 

Provision for (credit to) Credit Losses

 

84

 

 

 

-

 

 

 

(349

)

 

 

125

 

 

 

(549

)

Non-Interest Income

 

2,680

 

 

 

1,858

 

 

 

880

 

 

 

6,267

 

 

 

(88

)

Non-Interest Expense

 

18,452

 

 

 

18,900

 

 

 

7,994

 

 

 

56,601

 

 

 

23,547

 

Earnings per Share, Basic

 

0.19

 

 

 

0.16

 

 

 

0.08

 

 

 

0.50

 

 

 

0.06

 

Adjusted Earnings per Share, Basic (2)

 

0.20

 

 

 

0.17

 

 

 

0.11

 

 

 

0.52

 

 

 

0.26

 

Earnings per Share, Diluted

 

0.19

 

 

 

0.16

 

 

 

0.08

 

 

 

0.50

 

 

 

0.06

 

Adjusted Earnings per Share, Diluted (2)

 

0.19

 

 

 

0.17

 

 

 

0.11

 

 

 

0.52

 

 

 

0.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Operating Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

3.82

%

 

 

3.83

%

 

 

2.89

%

 

 

3.89

%

 

 

2.88

%

Annualized Return on Assets ("ROA")

 

1.00

%

 

 

0.84

%

 

 

0.39

%

 

 

0.90

%

 

 

0.11

%

Adjusted ROA2

 

1.02

%

 

 

0.91

%

 

 

0.59

%

 

 

0.93

%

 

 

0.46

%

Annualized Return on Equity ("ROE")

 

10.30

%

 

 

8.65

%

 

 

3.46

%

 

 

9.20

%

 

 

0.99

%

Adjusted ROE2

 

10.50

%

 

 

9.39

%

 

 

5.17

%

 

 

9.53

%

 

 

4.04

%

Efficiency Ratio

 

66.71

%

 

 

71.75

%

 

 

86.59

%

 

 

70.21

%

 

 

96.87

%

Adjusted Efficiency Ratio3

 

66.09

%

 

 

69.36

%

 

 

78.17

%

 

 

69.15

%

 

 

81.97

%

Noninterest Income to Avg. Assets

 

0.38

%

 

 

0.27

%

 

 

0.28

%

 

 

0.30

%

 

 

-0.01

%

Noninterest Expense to Avg. Assets

 

2.61

%

 

 

2.73

%

 

 

2.54

%

 

 

2.73

%

 

 

2.56

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/30/2024

 

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

Financial Condition Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

2,879,941

 

 

$

2,858,593

 

 

$

2,785,669

 

 

$

2,669,325

 

 

$

1,255,695

 

Loans Receivable, Net

 

2,189,326

 

 

 

2,166,909

 

 

 

2,106,077

 

 

 

2,104,517

 

 

 

968,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Noninterest-bearing Deposits

 

658,473

 

 

 

661,292

 

 

 

618,277

 

 

 

624,780

 

 

 

210,404

 

     Interest-bearing Deposits

 

1,714,179

 

 

 

1,699,220

 

 

 

1,662,124

 

 

 

1,574,019

 

 

 

831,368

 

Total Deposits

 

2,372,652

 

 

 

2,360,512

 

 

 

2,280,401

 

 

 

2,198,799

 

 

 

1,041,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital Ratio1

 

11.44

%

 

 

11.09

%

 

 

11.04

%

 

 

10.62

%

 

 

12.92

%

Tier 1 Capital Ratio1

 

10.62

%

 

 

10.30

%

 

 

10.24

%

 

 

9.92

%

 

 

12.37

%

Common Equity Tier 1 Capital Ratio1

 

10.62

%

 

 

10.30

%

 

 

10.24

%

 

 

9.92

%

 

 

12.37

%

Leverage Ratio1

 

9.41

%

 

 

9.17

%

 

 

9.23

%

 

 

14.13

%

 

 

10.71

%

Tangible Common Equity to Tangible Assets4

 

7.02

%

 

 

6.82

%

 

 

6.91

%

 

 

7.08

%

 

 

8.58

%

Tangible Book Value per Share5

$

5.26

 

 

$

5.07

 

 

$

5.00

 

 

$

4.90

 

 

$

6.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets

$

17,378

 

 

$

10,589

 

 

$

6,675

 

 

$

7,250

 

 

$

2,958

 

Non-performing Assets to Total Assets

 

0.60

%

 

 

0.37

%

 

 

0.24

%

 

 

0.27

%

 

 

0.24

%

Non-performing Loans to Total Loans

 

0.78

%

 

 

0.48

%

 

 

0.31

%

 

 

0.34

%

 

 

0.30

%

Allowance for Credit Losses - Loans ("ACLL")

$

26,542

 

 

$

26,288

 

 

$

23,842

 

 

$

23,767

 

 

$

9,964

 

ACLL to Total Loans6

 

1.20

%

 

 

1.20

%

 

 

1.06

%

 

 

1.06

%

 

 

1.02

%

ACLL to Nonperforming Assets

 

152.73

%

 

 

248.26

%

 

 

357.18

%

 

 

327.82

%

 

 

336.85

%

Net (recoveries) chargeoffs

$

(28

)

 

$

(20

)

 

$

70

 

 

$

195

 

 

$

(12

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) - These capital ratios have been calculated using bank-level capital

 

(2) - This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

 

(3) - The efficiency ratio, as adjusted represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains or losses from securities sales and merger related expenses. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

 

 

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 September 30,

 

 

 

2024

 

 

2023

 

(Dollars in thousands)

 

Avg Bal

 

 

Interest (2)

 

 

Yield/Rate

 

 

Avg Bal

 

 

Interest (2)

 

 

Yield/Rate

 

Int. Earn. Cash

 

$

114,383

 

 

$

1,296

 

 

 

4.51

%

 

$

55,514

 

 

$

577

 

 

 

4.12

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (1)

 

 

133,443

 

 

 

1,683

 

 

 

5.02

%

 

 

82,499

 

 

 

833

 

 

 

4.01

%

Tax-Exempt

 

 

42,800

 

 

 

453

 

 

 

4.21

%

 

 

38,589

 

 

 

378

 

 

 

3.89

%

Total Securities

 

 

176,243

 

 

 

2,136

 

 

 

4.82

%

 

 

121,088

 

 

 

1,211

 

 

 

3.97

%

Total Cash Equiv. and Investments

 

 

290,626

 

 

 

3,432

 

 

 

4.70

%

 

 

176,602

 

 

 

1,788

 

 

 

4.02

%

Total Loans (3)(4)

 

 

2,313,228

 

 

 

36,856

 

 

 

6.34

%

 

 

971,877

 

 

 

13,068

 

 

 

5.33

%

Total Earning Assets

 

 

2,603,854

 

 

 

40,288

 

 

 

6.16

%

 

 

1,148,479

 

 

 

14,856

 

 

 

5.13

%

Other Assets

 

 

208,407

 

 

 

 

 

 

 

 

 

97,995

 

 

 

 

 

 

 

Total Assets

 

$

2,812,261

 

 

 

 

 

 

 

 

$

1,246,474

 

 

 

 

 

 

 

Interest bearing demand(5)

 

$

497,100

 

 

$

2,902

 

 

 

2.32

%

 

$

254,725

 

 

$

1,490

 

 

 

2.32

%

Money market demand(5)

 

 

580,766

 

 

 

3,396

 

 

 

2.33

%

 

 

254,849

 

 

 

1,827

 

 

 

2.84

%

Time deposits(5)

 

 

613,402

 

 

 

6,993

 

 

 

4.54

%

 

 

265,573

 

 

 

2,117

 

 

 

3.16

%

Total Borrowings

 

 

153,699

 

 

 

1,922

 

 

 

0.00

%

 

 

102,669

 

 

 

992

 

 

 

3.83

%

Total Interest-Bearing Liabilities

 

 

1,844,967

 

 

 

15,213

 

 

 

3.28

%

 

 

877,816

 

 

 

6,426

 

 

 

2.90

%

Non Interest-Bearing Deposits(5)

 

 

659,825

 

 

 

 

 

 

 

 

 

209,054

 

 

 

 

 

 

 

Total Cost of Funds

 

$

2,504,792

 

 

$

15,213

 

 

 

2.42

%

 

$

1,086,870

 

 

$

6,426

 

 

 

2.35

%

Other Liabilities

 

 

33,534

 

 

 

 

 

 

 

 

 

17,230

 

 

 

 

 

 

 

Total Liabilities

 

$

2,538,326

 

 

 

 

 

 

 

 

$

1,104,100

 

 

 

 

 

 

 

Shareholders' Equity

 

$

273,935

 

 

 

 

 

 

 

 

$

142,374

 

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

 

$

2,812,261

 

 

 

 

 

 

 

 

$

1,246,474

 

 

 

 

 

 

 

Net Interest Income/Spread (FTE)

 

 

 

 

 

25,075

 

 

 

2.88

%

 

 

 

 

 

8,430

 

 

 

2.23

%

Tax-Equivalent Basis Adjustment

 

 

 

 

 

(94

)

 

 

 

 

 

 

 

 

(78

)

 

 

 

Net Interest Income

 

 

 

 

$

24,981

 

 

 

 

 

 

 

 

$

8,352

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

3.82

%

 

 

 

 

 

 

 

 

2.89

%

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

 

(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table

 

(3) Includes the balances of nonaccrual loans

 

(4) Includes the balances of loans held for sale

 

(5) Includes the balances of deposits held for sale

 

 

 

 

Page 12 of 18

 

 

 

 

 

 

 

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Net Interest Margin - Linked Quarter-To-Date (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

September 30, 2024

 

 

June 30, 2024

 

(Dollars in thousands)

 

Avg Bal

 

 

Interest (2)

 

 

Yield/Rate

 

 

Avg Bal

 

 

Interest (2)

 

 

Yield/Rate

 

Int. Earn. Cash

 

$

114,383

 

 

$

1,296

 

 

 

4.51

%

 

$

121,340

 

 

$

1,395

 

 

 

4.62

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (1)

 

 

133,443

 

 

 

1,683

 

 

 

5.02

%

 

 

125,885

 

 

 

1,592

 

 

 

5.09

%

Tax-Exempt

 

 

42,800

 

 

 

453

 

 

 

4.21

%

 

 

41,776

 

 

 

443

 

 

 

4.26

%

Total Securities

 

 

176,243

 

 

 

2,136

 

 

 

4.82

%

 

 

167,661

 

 

 

2,035

 

 

 

4.88

%

Total Cash Equiv. and Investments

 

 

290,626

 

 

 

3,432

 

 

 

4.70

%

 

 

289,001

 

 

 

3,430

 

 

 

4.77

%

Total Loans (3)(4)

 

 

2,313,228

 

 

 

36,856

 

 

 

6.34

%

 

 

2,280,041

 

 

 

36,112

 

 

 

6.37

%

Total Earning Assets

 

 

2,603,854

 

 

 

40,288

 

 

 

6.16

%

 

 

2,569,042

 

 

 

39,542

 

 

 

6.19

%

Other Assets

 

 

208,407

 

 

 

 

 

 

 

 

 

212,097

 

 

 

 

 

 

 

Total Assets

 

$

2,812,261

 

 

 

 

 

 

 

 

$

2,781,139

 

 

 

 

 

 

 

Interest bearing demand(5)

 

$

497,100

 

 

 

2,902

 

 

 

2.32

%

 

$

446,109

 

 

$

2,457

 

 

 

2.22

%

Money market demand(5)

 

 

580,766

 

 

 

3,396

 

 

 

2.33

%

 

 

581,223

 

 

 

3,271

 

 

 

2.26

%

Time deposits(5)

 

 

613,402

 

 

 

6,993

 

 

 

4.54

%

 

 

642,919

 

 

 

7,343

 

 

 

4.59

%

Total Borrowings

 

 

153,699

 

 

 

1,922

 

 

 

4.97

%

 

 

151,596

 

 

 

1,894

 

 

 

5.02

%

Total Interest-Bearing Liabilities

 

 

1,844,967

 

 

 

15,213

 

 

 

3.28

%

 

 

1,821,847

 

 

 

14,965

 

 

 

3.30

%

Non Interest-Bearing Deposits(5)

 

 

659,825

 

 

 

 

 

 

 

 

 

657,939

 

 

 

 

 

 

 

Total Cost of Funds

 

$

2,504,792

 

 

$

15,213

 

 

 

2.42

%

 

$

2,479,786

 

 

$

14,965

 

 

 

2.43

%

Other Liabilities

 

 

33,534

 

 

 

 

 

 

 

 

 

31,519

 

 

 

 

 

 

 

Total Liabilities

 

$

2,538,326

 

 

 

 

 

 

 

 

$

2,511,305

 

 

 

 

 

 

 

Shareholders' Equity

 

$

273,935

 

 

 

 

 

 

 

 

$

269,834

 

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

 

$

2,812,261

 

 

 

 

 

 

 

 

$

2,781,139

 

 

 

 

 

 

 

Net Interest Income/Spread (FTE)

 

 

 

 

 

25,075

 

 

 

2.88

%

 

 

 

 

 

24,577

 

 

 

2.89

%

Tax-Equivalent Basis Adjustment

 

 

 

 

 

(94

)

 

 

 

 

 

 

 

 

(93

)

 

 

 

Net Interest Income

 

 

 

 

$

24,981

 

 

 

 

 

 

 

 

$

24,484

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

3.82

%

 

 

 

 

 

 

 

 

3.83

%

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

 

(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table

 

(3) Includes the balances of nonaccrual loans

 

(4) Includes the balances of loans held for sale

 

(5) Includes the balances of deposits held for sale

 

 

 

 

 

Page 13 of 18

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Net Interest Margin - Year-To-Date (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

(Dollars in thousands)

 

Avg Bal

 

 

Interest (2)

 

 

Yield/Rate

 

 

Avg Bal

 

 

Interest (2)

 

 

Yield/Rate

 

Int. Earn. Cash

 

$

106,334

 

 

$

3,590

 

 

 

4.51

%

 

$

51,547

 

 

$

1,561

 

 

 

4.05

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (1)

 

 

125,264

 

 

 

4,666

 

 

 

4.98

%

 

 

83,449

 

 

 

2,309

 

 

 

3.70

%

Tax-Exempt

 

 

42,606

 

 

 

1,353

 

 

 

4.24

%

 

 

38,617

 

 

 

1,133

 

 

 

3.92

%

Total Securities

 

 

167,870

 

 

 

6,019

 

 

 

4.79

%

 

 

122,066

 

 

 

3,442

 

 

 

3.77

%

Total Cash Equiv. and Investments

 

 

274,204

 

 

 

9,609

 

 

 

4.68

%

 

 

173,613

 

 

 

5,003

 

 

 

3.85

%

Total Loans (3)(4)

 

 

2,279,378

 

 

 

109,093

 

 

 

6.39

%

 

 

958,382

 

 

 

37,330

 

 

 

5.21

%

Total Earning Assets

 

 

2,553,582

 

 

 

118,702

 

 

 

6.21

%

 

 

1,131,995

 

 

 

42,333

 

 

 

5.00

%

Other Assets

 

 

210,962

 

 

 

 

 

 

 

 

 

95,400

 

 

 

 

 

 

 

Total Assets

 

$

2,764,544

 

 

 

 

 

 

 

 

$

1,227,395

 

 

 

 

 

 

 

Interest bearing demand(5)

 

$

458,184

 

 

$

7,301

 

 

 

2.13

%

 

$

250,830

 

 

$

3,938

 

 

 

2.10

%

Money market demand(5)

 

 

582,998

 

 

 

9,841

 

 

 

2.25

%

 

 

248,731

 

 

 

4,766

 

 

 

2.56

%

Time deposits(5)

 

 

621,881

 

 

 

21,068

 

 

 

4.53

%

 

 

285,666

 

 

 

6,489

 

 

 

3.04

%

Total Borrowings

 

 

147,557

 

 

 

5,859

 

 

 

5.30

%

 

 

81,749

 

 

 

2,507

 

 

 

4.10

%

Total Interest-Bearing Liabilities

 

 

1,810,620

 

 

 

44,069

 

 

 

3.25

%

 

 

866,976

 

 

 

17,700

 

 

 

2.73

%

Non Interest-Bearing Deposits(5)

 

 

650,384

 

 

 

 

 

 

 

 

 

203,284

 

 

 

 

 

 

 

Total Cost of Funds

 

$

2,461,004

 

 

$

44,069

 

 

 

2.39

%

 

$

1,070,260

 

 

$

17,700

 

 

 

2.21

%

Other Liabilities

 

 

33,086

 

 

 

 

 

 

 

 

 

17,024

 

 

 

 

 

 

 

Total Liabilities

 

$

2,494,090

 

 

 

 

 

 

 

 

$

1,087,284

 

 

 

 

 

 

 

Shareholders' Equity

 

$

270,454

 

 

 

 

 

 

 

 

$

140,005

 

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

 

$

2,764,544

 

 

 

 

 

 

 

 

$

1,227,289

 

 

 

 

 

 

 

Net Interest Income/Spread (FTE)

 

 

 

 

 

74,633

 

 

 

2.96

%

 

 

 

 

 

24,633

 

 

 

2.27

%

Tax-Equivalent Basis Adjustment

 

 

 

 

 

(284

)

 

 

 

 

 

 

 

 

(238

)

 

 

 

Net Interest Income

 

 

 

 

$

74,349

 

 

 

 

 

 

 

 

$

24,395

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

3.89

%

 

 

 

 

 

 

 

 

2.88

%

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

 

(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table

 

(3) Includes the balances of nonaccrual loans

 

(4) Includes the balances of loans held for sale

 

(5) Includes the balances of deposits held for sale

 

 

 

 

 

 

 

 

 

Page 14 of 18

LINKBANCORP, Inc. and Subsidiaries

 

Loans Receivable Detail (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

September 30, 2024

 

 

June 30, 2024

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 Agriculture and farmland loans

 

$

65,166

 

 

$

66,937

 

 

$

67,359

 

 

$

65,861

 

 

$

50,584

 

 Construction loans

 

 

175,373

 

 

 

201,174

 

 

 

194,391

 

 

 

178,483

 

 

 

65,836

 

 Commercial & industrial loans

 

 

241,597

 

 

 

247,190

 

 

 

218,724

 

 

 

238,343

 

 

 

115,572

 

 Commercial real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Multifamily

 

 

212,444

 

 

 

199,740

 

 

 

190,146

 

 

 

180,788

 

 

 

111,853

 

      Owner occupied

 

 

500,643

 

 

 

492,065

 

 

 

489,467

 

 

 

501,732

 

 

 

160,929

 

      Non-owner occupied

 

 

626,030

 

 

 

610,649

 

 

 

589,731

 

 

 

580,972

 

 

 

257,344

 

 Residential real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      First liens

 

 

400,869

 

 

 

400,098

 

 

 

403,300

 

 

 

402,433

 

 

 

172,481

 

      Second liens and lines of credit

 

 

73,591

 

 

 

71,168

 

 

 

71,060

 

 

 

70,747

 

 

 

27,870

 

 Consumer and other loans

 

 

17,498

 

 

 

15,514

 

 

 

16,810

 

 

 

16,756

 

 

 

11,869

 

 Municipal loans

 

 

4,296

 

 

 

4,362

 

 

 

4,473

 

 

 

5,244

 

 

 

4,137

 

 

 

 

2,317,507

 

 

 

2,308,897

 

 

 

2,245,461

 

 

 

2,241,359

 

 

 

978,475

 

Deferred costs

 

 

634

 

 

 

478

 

 

 

356

 

 

 

174

 

 

 

437

 

Total loans receivable

 

 

2,318,141

 

 

 

2,309,375

 

 

 

2,245,817

 

 

 

2,241,533

 

 

 

978,912

 

Less: Loans held for sale

 

 

102,273

 

 

 

116,178

 

 

 

115,898

 

 

 

113,249

 

 

 

-

 

Loans Held for Investment

 

$

2,215,868

 

 

$

2,193,197

 

 

$

2,129,919

 

 

$

2,128,284

 

 

$

978,912

 

 

 

Page 15 of 18

LINKBANCORP, Inc. and Subsidiaries

 

 

 

 

Investments in Securities Detail (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2024

 

 

 

 

(In Thousands)

 

Amortized
Cost

 

 

Net
Unrealized Gains
(Losses)

 

 

Fair
Value

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

US Government Agency securities

 

$

11,935

 

 

$

442

 

 

$

12,377

 

 

 

 

Obligations of state and political subdivisions

 

 

51,124

 

 

 

(2,529

)

 

 

48,595

 

 

 

 

Mortgage-backed securities in government-sponsored entities

 

 

88,528

 

 

 

(700

)

 

 

87,828

 

 

 

 

Other securities

 

 

524

 

 

 

(9

)

 

 

515

 

 

 

 

 

 

$

152,111

 

 

$

(2,796

)

 

$

149,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

 

Net Unrealized Gains (Losses)

 

 

Fair Value

 

 

Allowance for Credit Losses

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

15,000

 

 

$

(1,198

)

 

$

13,802

 

 

$

(471

)

Structured mortgage-backed securities

 

 

19,626

 

 

 

(605

)

 

 

19,021

 

 

 

-

 

 

 

$

34,626

 

 

$

(1,803

)

 

$

32,823

 

 

$

(471

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

(In Thousands)

 

Amortized
Cost

 

 

Net
Unrealized Gains
(Losses)

 

 

Fair
Value

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

US Government Agency securities

 

$

12,711

 

 

$

274

 

 

$

12,985

 

 

 

 

US Government Treasury securities

 

 

4,925

 

 

 

17

 

 

 

4,942

 

 

 

 

Obligations of state and political subdivisions

 

 

49,640

 

 

 

(2,595

)

 

 

47,045

 

 

 

 

Mortgage-backed securities in government-sponsored entities

 

 

50,795

 

 

 

(2,614

)

 

 

48,181

 

 

 

 

Other securities

 

 

2,301

 

 

 

36

 

 

 

2,337

 

 

 

 

 

 

$

120,372

 

 

$

(4,882

)

 

$

115,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

 

Net Unrealized Gains (Losses)

 

 

Fair Value

 

 

Allowance for Credit Losses

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

15,000

 

 

$

(1,592

)

 

$

13,408

 

 

$

(512

)

Structured mortgage-backed securities

 

 

21,735

 

 

 

(907

)

 

 

20,828

 

 

 

-

 

 

 

$

36,735

 

 

$

(2,499

)

 

$

34,236

 

 

$

(512

)

 

 

 

Page 16 of 18

LINKBANCORP, Inc. and Subsidiaries

 

Deposits Detail (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

September 30, 2024

 

 

June 30, 2024

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

Demand, noninterest-bearing

 

$

687,536

 

 

$

692,095

 

 

$

653,719

 

 

$

655,953

 

 

$

210,404

 

Demand, interest-bearing

 

 

547,099

 

 

 

488,043

 

 

 

447,412

 

 

 

438,765

 

 

 

273,673

 

Money market and savings

 

 

585,395

 

 

 

582,561

 

 

 

591,982

 

 

 

577,448

 

 

 

258,334

 

Time deposits, $250 and over

 

 

169,616

 

 

 

156,621

 

 

 

147,898

 

 

 

134,324

 

 

 

51,563

 

Time deposits, other

 

 

401,976

 

 

 

393,603

 

 

 

398,365

 

 

 

372,572

 

 

 

172,798

 

Brokered deposits

 

 

75,000

 

 

 

144,429

 

 

 

146,653

 

 

 

119,411

 

 

 

75,000

 

 

 

 

2,466,622

 

 

 

2,457,352

 

 

 

2,386,029

 

 

 

2,298,473

 

 

 

1,041,772

 

Less: Deposits held for sale

 

 

93,970

 

 

 

96,840

 

 

 

105,628

 

 

 

99,674

 

 

 

—

 

Total deposits

 

$

2,372,652

 

 

$

2,360,512

 

 

$

2,280,401

 

 

$

2,198,799

 

 

$

1,041,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits Detail, for the Three Months Ended (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

September 30, 2024

 

 

June 30, 2024

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

Demand, noninterest-bearing

 

$

659,825

 

 

$

657,939

 

 

$

632,637

 

 

$

371,051

 

 

$

209,054

 

Demand, interest-bearing

 

 

497,100

 

 

 

446,109

 

 

 

424,781

 

 

 

328,342

 

 

 

254,725

 

Money market and savings

 

 

580,766

 

 

 

581,223

 

 

 

587,455

 

 

 

367,821

 

 

 

254,849

 

Time deposits

 

 

560,815

 

 

 

547,582

 

 

 

518,929

 

 

 

317,747

 

 

 

236,869

 

Brokered deposits

 

 

52,587

 

 

 

95,337

 

 

 

89,263

 

 

 

30,832

 

 

 

28,705

 

Total deposits

 

$

2,351,093

 

 

$

2,328,190

 

 

$

2,253,065

 

 

$

1,415,793

 

 

$

984,202

 

Balances in table above include deposits held for sale

 

 

 

Page 17 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 Nine Months Ended

 

(Dollars in thousands)

9/30/2024

 

 

6/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

Net income

$

7,095

 

 

$

5,804

 

 

$

1,240

 

 

$

18,625

 

 

$

1,033

 

Average assets

 

2,812,261

 

 

 

2,781,139

 

 

 

1,246,474

 

 

 

2,764,544

 

 

 

1,227,395

 

Return on average assets (annualized)

 

1.00

%

 

 

0.84

%

 

 

0.39

%

 

 

0.90

%

 

 

0.11

%

Net income

 

7,095

 

 

 

5,804

 

 

 

1,240

 

 

 

18,625

 

 

 

1,033

 

Net (gains) losses on sale of securities

 

-

 

 

 

(4

)

 

 

-

 

 

 

(4

)

 

 

2,370

 

Tax effect at 21%

 

-

 

 

 

1

 

 

 

-

 

 

 

1

 

 

 

(498

)

Merger & restructuring expenses

 

171

 

 

 

631

 

 

 

777

 

 

 

858

 

 

 

1,679

 

Tax effect at 21%

 

(36

)

 

 

(133

)

 

 

(163

)

 

 

(180

)

 

 

(353

)

Adjusted Net Income (Non-GAAP)

 

7,230

 

 

 

6,299

 

 

 

1,854

 

 

 

19,300

 

 

 

4,231

 

Average assets

 

2,812,261

 

 

 

2,781,139

 

 

 

1,246,474

 

 

 

2,764,544

 

 

 

1,227,395

 

Adjusted return on average assets (annualized)
(Non-GAAP)

 

1.02

%

 

 

0.91

%

 

 

0.59

%

 

 

0.93

%

 

 

0.46

%

 

 

Page 18 of 18

 

Adjusted Return on Average Shareholders' Equity

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

(Dollars in thousands)

9/30/2024

 

 

6/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

Net income

$

7,095

 

 

$

5,804

 

 

$

1,240

 

 

$

18,625

 

 

$

1,033

 

Average shareholders' equity

 

273,935

 

 

 

269,834

 

 

 

142,374

 

 

 

270,454

 

 

 

140,005

 

Return on average shareholders' equity (annualized)

 

10.30

%

 

 

8.65

%

 

 

3.46

%

 

 

9.20

%

 

 

0.99

%

Net income

 

7,095

 

 

 

5,804

 

 

 

1,240

 

 

 

18,625

 

 

 

1,033

 

Net (gains) losses on sale of securities

 

-

 

 

 

(4

)

 

 

-

 

 

 

(4

)

 

 

2,370

 

Tax effect at 21%

 

-

 

 

 

1

 

 

 

-

 

 

 

1

 

 

 

(498

)

Merger & restructuring expenses

 

171

 

 

 

631

 

 

 

777

 

 

 

858

 

 

 

1,679

 

Tax effect at 21%

 

(36

)

 

 

(133

)

 

 

(163

)

 

 

(180

)

 

 

(353

)

Adjusted Net Income (Non-GAAP)

 

7,230

 

 

 

6,299

 

 

 

1,854

 

 

 

19,300

 

 

 

4,231

 

Average shareholders' equity

 

273,935

 

 

 

269,834

 

 

 

142,374

 

 

 

270,454

 

 

 

140,005

 

Adjusted return on average shareholders' equity (annualized)
(Non-GAAP)

 

10.50

%

 

 

9.39

%

 

 

5.17

%

 

 

9.53

%

 

 

4.04

%

 

Adjusted Efficiency Ratio

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

(Dollars in thousands)

9/30/2024

 

 

6/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

GAAP-based efficiency ratio

 

66.71

%

 

 

71.75

%

 

 

86.59

%

 

 

70.21

%

 

 

96.87

%

Net interest income

$

24,981

 

 

$

24,484

 

 

$

8,352

 

 

$

74,349

 

 

$

24,395

 

Noninterest income

 

2,680

 

 

 

1,858

 

 

 

880

 

 

 

6,267

 

 

 

(88

)

Less: net gains (losses) on sales of securities

 

-

 

 

 

4

 

 

 

-

 

 

 

4

 

 

 

(2,370

)

Adjusted revenue (Non-GAAP)

 

27,661

 

 

 

26,338

 

 

 

9,232

 

 

 

80,612

 

 

 

26,677

 

Total noninterest expense

 

18,452

 

 

 

18,900

 

 

 

7,994

 

 

 

56,601

 

 

 

23,547

 

Less: Merger & restructuring expenses

 

171

 

 

 

631

 

 

 

777

 

 

 

858

 

 

 

1,679

 

Adjusted non-interest expense

 

18,281

 

 

 

18,269

 

 

 

7,217

 

 

 

55,743

 

 

 

21,868

 

Efficiency ratio, as adjusted (Non-GAAP)

 

66.09

%

 

 

69.36

%

 

 

78.17

%

 

 

69.15

%

 

 

81.97

%

 

 

Adjusted Earnings Per Share

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

(Dollars in thousands, except per share data)

9/30/2024

 

 

6/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

GAAP-Based Earnings Per Share, Basic

$

0.19

 

 

$

0.16

 

 

$

0.08

 

 

$

0.50

 

 

$

0.06

 

GAAP-Based Earnings Per Share, Diluted

$

0.19

 

 

$

0.16

 

 

$

0.08

 

 

$

0.50

 

 

$

0.06

 

Net Income

$

7,095

 

 

$

5,804

 

 

$

1,240

 

 

$

18,625

 

 

$

1,033

 

Net (gains) losses on sale of securities

 

-

 

 

 

(4

)

 

 

-

 

 

 

(4

)

 

 

2,370

 

Tax effect at 21%

 

-

 

 

 

1

 

 

 

-

 

 

 

1

 

 

 

(498

)

Merger & restructuring expenses

 

171

 

 

 

631

 

 

 

777

 

 

 

858

 

 

 

1,679

 

 Tax effect at 21%

 

(36

)

 

 

(133

)

 

 

(163

)

 

 

(180

)

 

 

(353

)

Adjusted Net Income (Non-GAAP)

 

7,230

 

 

 

6,299

 

 

 

1,854

 

 

 

19,300

 

 

 

4,231

 

Adjusted Earnings per Share, Basic (Non-GAAP)

$

0.20

 

 

$

0.17

 

 

$

0.11

 

 

$

0.52

 

 

$

0.26

 

Adjusted Earnings per Share, Diluted (Non-GAAP)

$

0.19

 

 

$

0.17

 

 

$

0.11

 

 

$

0.52

 

 

$

0.26

 

 

 

Page 19 of 18

Tangible Common Equity and Tangible Book Value

 

(Dollars in thousands, except per share data)

 

9/30/2024

 

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

Tangible Common Equity

 

 

 

 

(Dollars in thousands, except for share data)

 

Total shareholders’ equity

 

$

277,353

 

 

$

271,409

 

 

$

268,243

 

 

$

265,796

 

 

$

141,351

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(58,806

)

 

 

(58,806

)

 

 

(56,968

)

 

 

(56,968

)

 

 

(35,842

)

Other intangible assets

 

 

(22,118

)

 

 

(23,323

)

 

 

(24,526

)

 

 

(25,733

)

 

 

(873

)

Tangible common equity (Non-GAAP)

 

$

196,429

 

 

$

189,280

 

 

$

186,749

 

 

$

183,095

 

 

$

104,636

 

Common shares outstanding

 

 

37,361,560

 

 

 

37,356,278

 

 

 

37,348,151

 

 

 

37,340,700

 

 

 

16,235,871

 

Book value per common share

 

$

7.42

 

 

$

7.27

 

 

$

7.18

 

 

$

7.12

 

 

$

8.71

 

Tangible book value per common share
(Non-GAAP)

 

$

5.26

 

 

$

5.07

 

 

$

5.00

 

 

$

4.90

 

 

$

6.44

 

Tangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,879,941

 

 

$

2,858,593

 

 

$

2,785,669

 

 

$

2,669,325

 

 

$

1,255,695

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(58,806

)

 

 

(58,806

)

 

 

(56,968

)

 

 

(56,968

)

 

 

(35,842

)

Other intangible assets

 

 

(22,118

)

 

 

(23,323

)

 

 

(24,526

)

 

 

(25,733

)

 

 

(873

)

Tangible assets (Non-GAAP)

 

$

2,799,017

 

 

$

2,776,464

 

 

$

2,704,175

 

 

$

2,586,624

 

 

$

1,218,980

 

Tangible common equity to tangible assets (Non-GAAP)

 

 

7.02

%

 

 

6.82

%

 

 

6.91

%

 

 

7.08

%

 

 

8.58

%

 

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

(Dollars in thousands, except per share data)

9/30/2024

 

 

6/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

Net Income - GAAP

$

7,095

 

 

$

5,804

 

 

$

1,240

 

 

$

18,625

 

 

$

1,033

 

Net (gains) losses on sale of securities

 

-

 

 

 

(4

)

 

 

-

 

 

 

(4

)

 

 

2,370

 

Tax effect at 21%

 

-

 

 

 

1

 

 

 

-

 

 

 

1

 

 

 

(498

)

Merger & restructuring expenses

 

171

 

 

 

631

 

 

 

777

 

 

 

858

 

 

 

1,679

 

 Tax effect at 21%

 

(36

)

 

 

(133

)

 

 

(163

)

 

 

(180

)

 

 

(353

)

Adjusted Net Income (Non-GAAP)

 

7,230

 

 

 

6,299

 

 

 

1,854

 

 

 

19,300

 

 

 

4,231

 

Income tax expense

 

2,030

 

 

 

1,638

 

 

 

347

 

 

 

5,265

 

 

 

276

 

 Provision for (credit to) credit losses

 

84

 

 

 

-

 

 

 

(349

)

 

 

125

 

 

 

(549

)

Tax effect included in Adjusted Net Income

 

36

 

 

 

132

 

 

 

163

 

 

 

179

 

 

 

851

 

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)

$

9,380

 

 

$

8,069

 

 

$

2,015

 

 

$

24,869

 

 

$

4,809