LINKBANCORP, Inc. Announces Record First Quarter Earnings

LINKBANCORP, Inc. -0.30%

LINKBANCORP, Inc.

LNKB

6.62

-0.30%

HARRISBURG, Pa., April 29, 2024 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank") reported net income of $5.73 million, or $0.15 per diluted share, for the quarter ended March 31, 2024.  Excluding merger related expenses, adjusted earnings were $5.77 million1, or $0.161 per diluted share for the first quarter of 2024.

(PRNewsfoto/LINKBANCORP, Inc.)

First Quarter 2024 Highlights

  • Net interest income before provision was $24.9 million for the first quarter of 2024, compared to $14.3 million in the fourth quarter of 2023. Net interest margin grew from 3.55% for the fourth quarter of 2023 to 4.03% for the first quarter of 2024.
  • Total deposits increased to $2.39 billion at March 31, 2024 from $2.30 billion at December 31, 2023 and $984.5 million at March 31, 2023. Total loans increased slightly to $2.25 billion at March 31, 2024, compared to $2.24 billion at December 31, 2023 and $945.4 million at March 31, 2023.
  • The Company enhanced its on-balance sheet liquidity with cash and cash equivalents at March 31, 2024 of $172.3 million, up from $80.2 million at December 31, 2023 and $51.7 million at March 31, 2023.
  • Asset quality remained strong as non-performing assets were $6.7 million, representing 0.25% of total assets at March 31, 2024, compared to $7.3 million, representing 0.27% of total assets at December 31, 2023. The allowance for credit losses-loans was 1.06% of total loans at March 31, 2024, unchanged from December 31, 2023.

Given that the merger with Partners Bancorp ("Partners") was completed on November 30, 2023 (the "Merger"), fourth quarter 2023 results do not represent a full quarter of comparable combined earnings.  Reported results prior to the fourth quarter of 2023 reflect legacy LINKBANCORP results only.

"We are very pleased by the strong results of the first quarter of 2024, which represents the first full quarter following completion of our merger with Partners Bancorp," said Andrew Samuel, Chief Executive Officer of LINKBANCORP.  "Following a very successful conversion during the fourth quarter, we have continued to make significant progress in integrating our institutions and executing on the actions needed to achieve the operational efficiencies and other benefits of this combination, including recognizing a 14% reduction in headcount since the close of the transaction and positive steps in implementing our bank-wide branch rationalization initiative."  He continued, "Loan activity during the quarter was consistent with our expectations and solid deposit growth will support growing loan pipelines."  

(1)

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

 

Income Statement

Net interest income before the provision for credit losses for the first quarter of 2024 increased to $24.9 million compared to $14.3 million in the fourth quarter of 2023. Net interest margin was 4.03% for the first quarter of 2024 compared to 3.55% for the fourth quarter of 2023.  The average yield on interest-earning assets increased by 56 basis points over the prior linked quarter, due to an increase in the average yield on loans of 45 basis points to 6.48% as well as a 61 basis points increase in the average yield on securities to 4.71%.  Cost of funds increased slightly to 2.33% for the first quarter of 2024 compared to 2.28% for the fourth quarter of 2023.  The increase in net interest income was primarily a result of the Merger, including the lower cost deposits from legacy Partners and the impact of purchase accounting accretion.

Noninterest income increased quarter-over-quarter to $1.7 million for the first quarter of 2024 compared to $1.2 million for the fourth quarter of 2023.  This increase was primarily related to a $395 thousand increase in service charges on deposit accounts resulting from the Merger, offset by a decrease in gain on sale of loans.  

Noninterest expense for the first quarter of 2024 was $19.3 million compared to $22.3 million for the fourth quarter of 2023.  Excluding one-time charges related to the Merger of $56 thousand in the first quarter of 2024 and $9.5 million in the fourth quarter of 2023, noninterest expense increased by $6.4 million to $19.2 million in the first quarter of 2024 from $12.8 million in the fourth quarter1.  This increase was primarily due to the increased headcount and infrastructure resulting from the Merger, and amortization of the core deposit intangible assets.  Salary and employee benefit expenses for the first quarter of 2024 included costs for personnel retained for post-conversion support through January 2024, as well as increased incentive compensation expense. 

Income tax expense was $1.6 million for the first quarter of 2024, reflecting an effective tax rate of 21.8%.

(1)

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

Balance Sheet

Total assets were $2.78 billion at March 31, 2024 compared to $2.67 billion at December 31, 2023 and $1.21 billion at March 31, 2023.  Deposits and net loans as of March 31, 2024 totaled $2.39 billion and $2.22 billion, respectively, compared to deposits and net loans of $2.30 billion and $2.22 billion, respectively, at December 31, 2023 and $984.5 million and $934.8 million, respectively, at March 31, 2023.

Total loans increased $4.3 million during the first quarter of 2024 to $2.25 billion at March 31, 2024, with muted net loan growth reflecting the continued integration following the completion of the Merger and introduction of the Company to new markets.  Total commercial loan commitments for the first quarter of 2024 were $77.0 million with funded balances of $45.2 million.  The average commercial loan commitment originated during the first quarter of 2024 totaled approximately $664 thousand with an average outstanding funded balance of $390 thousand.

Cash and cash equivalents increased $92.1 million to $172.3 million at March 31, 2024 compared to $80.2 million at December 31, 2023 and $51.7 million at March 31, 2023.  The increase was due to deposit growth outpacing net loan growth, as well as an increase in long term FHLB borrowings as the Company took steps to extend the maturity of its liabilities.

Deposits at March 31, 2024 totaled $2.39 billion, an increase of $87.6 million compared to $2.30 billion at December 31, 2023. This increase was driven by significant growth in interest bearing deposits, including a $14.5 million increase in money market and savings accounts and $39.4 million increase in retail time deposits.  Additionally, brokered certificates of deposits increased by $27.2 million to $146.7 million at March 31, 2024, as compared to at December 31, 2023, which includes $75 million related to an interest rate swap executed in 2023.  

Shareholders' equity increased from $265.8 million at December 31, 2023 to $268.2 million at March 31, 2024 primarily as a result of a $2.9 million increase in retained earnings.  Book value per share increased to $7.18 at March 31, 2024 compared to $7.12 at December 31, 2023.  Tangible book value per share increased $0.10 to $5.00 at March 31, 2024 compared to $4.90 at December 31, 20231.

(1)

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

Asset Quality

In the first quarter of 2024, the Company recorded a provision for credit losses of $40 thousand, compared to a $9.8 million provision for credit losses in the fourth quarter of 2023, which included $9.7 million associated with the day one accounting provision required for loans acquired not designated as purchase credit deteriorated in the Merger.

Asset quality metrics remain strong. As of March 31, 2024, the Company's non-performing assets were $6.7 million, representing 0.25% of total assets.  Loans 30-89 days past due at March 31, 2024 were $15.3 million, representing 0.68% of total loans.  

The allowance for credit losses-loans was $23.8 million, or 1.06% of total loans at March 31, 2024, which remained consistent quarter over quarter with the allowance for credit losses-loans of $23.8 million, or 1.06% of total loans at December 31, 2023.  The allowance for credit losses-loans to nonperforming assets was 357.18% at March 31, 2024, compared to 327.82% at December 31, 2023.

Capital

The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of March 31, 2024. The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 11.04% and 10.24%, respectively, at March 31, 2024, compared to 10.62% and 9.92%, respectively, at December 31, 2023 and 13.53% and 12.32%, respectively, at March 31, 2023. The Company's ratio of Tangible Common Equity to Tangible Assets was 6.91%1 at March 31, 2024.

(1)

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

ABOUT LINKBANCORP, Inc.

LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, LINKBANK, is a Pennsylvania state-chartered bank serving individuals, families, nonprofits and business clients throughout Pennsylvania, Maryland, Delaware, Virginia, and New Jersey through 29 client solutions centers and www.linkbank.com. LINKBANCORP, Inc. common stock is traded on the Nasdaq Capital Market under the symbol "LNKB". For further company information, visit ir.linkbancorp.com.

Forward Looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties associated with newly developed or acquired operations; risks related to the integration of the merger with Partners; 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. 

LB-E

LB-D

LINKBANCORP, Inc. and Subsidiaries

Consolidated Balance Sheet (Unaudited)



























March 31, 2024



December 31, 2023



September 30, 2023



June 30, 2023



March 31, 2023

(In Thousands, except share and per share data)





















ASSETS





















Noninterest-bearing cash equivalents



$             13,552



$                 13,089



$                   5,447



$             4,736



$                 4,545

Interest-bearing deposits with other institutions



158,731



67,101



62,532



118,438



47,190

Cash and cash equivalents



172,283



80,190



67,979



123,174



51,735

Certificates of deposit with other banks







249



498



745

Securities available for sale, at fair value



133,949



115,490



78,779



83,620



86,804

Securities held to maturity, net of allowance for credit losses



36,109



36,223



37,266



38,220



38,986

Loans receivable, gross



2,245,817



2,241,533



978,912



969,533



945,371

Allowance for credit losses - loans



(23,842)



(23,767)



(9,964)



(10,228)



(10,526)

Loans receivable, net



2,221,975



2,217,766



968,948



959,305



934,845

Investments in restricted bank stock



4,286



3,965



3,107



5,544



4,134

Premises and equipment, net



22,233



22,279



6,414



6,292



6,497

Right-of-Use Asset – Premises



14,663



15,598



9,727



9,896



10,058

Bank-owned life insurance



49,230



48,847



24,732



24,554



24,384

Goodwill and other intangible assets



81,494



82,701



36,715



36,774



36,833

Deferred tax asset



23,463



24,153



6,880



6,571



6,749

Accrued interest receivable and other assets



24,579



22,113



14,899



14,024



12,188

TOTAL ASSETS



$       2,784,264



$             2,669,325



$             1,255,695



$     1,308,472



$         1,213,958

LIABILITIES





















Deposits:





















Demand, noninterest bearing



$           653,719



$               655,953



$               210,404



$         240,729



$             204,495

Interest bearing



1,732,310



1,642,520



831,368



794,113



780,003

Total deposits



2,386,029



2,298,473



1,041,772



1,034,842



984,498

Other Borrowings



40,499



10,590



15,000



74,899



31,250

Subordinated Debt



61,573



61,444



40,354



40,398



40,441

Lease liabilities



15,445



16,464



9,728



9,896



10,058

Accrued interest payable and other liabilities



12,475



16,558



7,490



5,985



6,130

TOTAL LIABILITIES



2,516,021



2,403,529



1,114,344



1,166,020



1,072,377

SHAREHOLDERS' EQUITY





















Preferred stock











Common stock



369



369



162



162



250

Surplus



263,577



263,310



127,856



127,818



127,659

Retained earnings



7,724



4,843



19,062



19,039



18,911

Accumulated other comprehensive loss



(3,427)



(3,209)



(5,729)



(4,567)



(5,239)

          Total equity attributable to parent



268,243



265,313



141,351



142,452



141,581

         Noncontrolling interest in consolidated subsidiary





483







TOTAL SHAREHOLDERS' EQUITY



268,243



265,796



141,351



142,452



141,581

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY



$       2,784,264



$             2,669,325



$             1,255,695



$     1,308,472



$         1,213,958

Common shares outstanding



37,348,151



37,340,700



16,235,871



16,228,440



16,221,692























 

LINKBANCORP, Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)



















Three Months Ended





3/31/2024



12/31/2023



3/31/2023

(In Thousands, except share and per share data)













INTEREST AND DIVIDEND INCOME













Loans receivable, including fees



$           36,125



$           21,461



$          11,762

Other



2,650



1,642



1,228

Total interest and dividend income



38,775



23,103



12,990

INTEREST EXPENSE













Deposits



11,847



7,445



4,517

Other Borrowings



1,152



727



87

Subordinated Debt



892



615



432

Total interest expense



13,891



8,787



5,036

NET INTEREST INCOME BEFORE

  PROVISION FOR CREDIT LOSSES



24,884



14,316



7,954

Provision for credit losses



40



9,844



293

NET INTEREST INCOME AFTER

  PROVISION FOR CREDIT LOSSES



24,844



4,472



7,661

NONINTEREST INCOME













Service charges on deposit accounts



780



385



199

Bank-owned life insurance



383



250



140

Net realized losses on the sale of debt securities







(2,370)

Gain on sale of loans



50



166



Other



516



374



178

Total noninterest income



1,729



1,175



(1,853)

NONINTEREST EXPENSE













Salaries and employee benefits



11,118



8,262



4,120

Occupancy



1,578



911



707

Equipment and data processing



1,826



1,201



693

Professional fees



748



536



381

FDIC insurance



352



198



159

Bank Shares Tax



591



323



278

Intangible amortization



1,206



484



61

Merger & system conversion related expenses



56



9,496



587

Other



1,775



874



751

Total noninterest expense



19,250



22,285



7,737

Income (loss) before income tax expense (benefit)



7,323



(16,638)



(1,929)

Income tax expense (benefit)



1,597



(3,641)



(376)

NET  INCOME (LOSS)



$             5,726



$         (12,997)



$           (1,553)















EARNINGS (LOSS) PER SHARE, BASIC



$               0.15



$             (0.56)



$             (0.10)

 EARNINGS (LOSS) PER SHARE, DILUTED



$               0.15



$             (0.56)



$             (0.10)

WEIGHTED-AVERAGE COMMON SHARES

  OUTSTANDING,













BASIC



36,962,005



23,063,202



15,480,951

DILUTED



37,038,230



23,063,202



15,480,951















 

LINKBANCORP, Inc. and Subsidiaries

Financial Highlights (Unaudited)























For the Three Months Ended





('Dollars In Thousands, except per share data)

3/31/2024



12/31/2023



3/31/2023









Operating Highlights



















Net Income (loss)

$                 5,726



$             (12,997)



$           (1,553)









Net Interest Income

24,884



14,316



7,954









Provision for Credit Losses

40



9,844



293









Non-Interest Income

1,729



1,175



(1,853)









Non-Interest Expense

19,250



22,285



7,737









Earnings (loss) per Share, Basic

0.15



(0.56)



(0.10)









Adjusted Earnings per Share, Basic (2)

0.16



0.09



0.05









Earnings (loss) per Share, Diluted

0.15



(0.56)



(0.10)









Adjusted Earnings per Share, Diluted (2)

0.16



0.09



0.05





























Selected Operating Ratios



















Net Interest Margin

4.03 %



3.55 %



2.95 %









Annualized Return on Assets ("ROA")

0.86 %



-2.96 %



-0.53 %









Adjusted ROA2

0.86 %



0.49 %



0.27 %









Annualized Return on Equity ("ROE")

8.63 %



-28.24 %



-4.56 %









Adjusted ROE2

8.70 %



4.70 %



2.30 %









Efficiency Ratio

72.33 %



143.86 %



126.82 %









Adjusted Efficiency Ratio3

72.12 %



82.56 %



84.41 %









Noninterest Income to Avg. Assets

0.26 %



0.27 %



-0.63 %









Noninterest Expense to Avg. Assets

2.88 %



5.08 %



2.65 %



















































3/31/2024



12/31/2023



9/30/2023



6/30/2023



3/31/2023

Financial Condition Data



















Total Assets

$           2,784,264



$           2,669,325



$       1,255,695



$         1,308,472



$       1,213,958

Loans Receivable, Net

2,221,975



2,217,766



968,948



959,305



934,845





















    Noninterest-bearing Deposits

653,719



655,953



210,404



240,729



204,495

    Interest-bearing Deposits

1,732,310



1,642,520



831,368



794,113



780,003

Total Deposits

2,386,029



2,298,473



1,041,772



1,034,842



984,498





















Selected Balance Sheet Ratios



















Total Capital Ratio1

11.04 %



10.62 %



12.92 %



12.88 %



13.53 %

Tier 1 Capital Ratio1

10.24 %



9.92 %



12.37 %



12.29 %



12.32 %

Common Equity Tier 1 Capital Ratio1

10.24 %



9.92 %



12.37 %



12.29 %



12.32 %

Leverage Ratio1

9.23 %



14.13 %



10.71 %



10.41 %



10.78 %

Tangible Common Equity to Tangible Assets4

6.91 %



7.08 %



8.58 %



8.31 %



8.90 %

Tangible Book Value per Share5

$                   5.00



$                   4.90



$               6.44



$                 6.51



$               6.46





















Asset Quality Data



















Non-performing Assets

$                 6,675



$                 7,250



$             2,958



$               2,856



$             2,398

Non-performing Assets to Total Assets

0.25 %



0.27 %



0.24 %



0.22 %



0.20 %

Non-performing Loans to Total Loans

0.30 %



0.32 %



0.30 %



0.29 %



0.25 %

Allowance for Credit Losses - Loans ("ACLL")

$               23,842



$               23,767



$            9,964



$             10,228



$             10,526

ACLL to Total Loans

1.06 %



1.06 %



1.02 %



1.05 %



1.11 %

ACLL to Nonperforming Assets

357.18 %



327.82 %



336.85 %



358.12 %



438.95 %

Net chargeoffs (recoveries)

$                     70



$                   195



$               (12)



$                   (97)



$                   (2)























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

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

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

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

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





















 

LINKBANCORP, Inc. and Subsidiaries

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































For the Three Months Ended March 31,





2024



2023

(Dollars in thousands)



Avg Bal



Interest (2)



Yield/Rate



Avg Bal



Interest (2)



Yield/Rate

Int. Earn. Cash



$                 82,420



$                       898



4.38 %



$                  36,470



$                       275



3.06 %

Securities

























Taxable (1)



114,896



1,391



4.87 %



81,899



653



3.23 %

Tax-Exempt



42,984



457



4.28 %



38,368



377



3.98 %

Total Securities



157,880



1,848



4.71 %



120,267



1,030



3.47 %

Total Cash Equiv. and Investments



240,300



2,746



4.60 %



156,737



1,305



3.38 %

Total Loans (3)



2,240,714



36,125



6.48 %



936,510



11,762



5.09 %

Total Earning Assets



2,481,014



38,871



6.30 %



1,093,247



13,067



4.85 %

Other Assets



210,826











90,938









Total Assets



$             2,691,840











$             1,184,185









Interest bearing demand



$               424,781



$                   1,942



1.84 %



$               251,103



$                   1,188



1.92 %

Money market demand



587,455



3,174



2.17 %



245,563



1,350



2.23 %

Time deposits



608,192



6,731



4.45 %



290,605



1,979



2.76 %

Total Borrowings



140,621



2,044



5.85 %



49,246



519



4.27 %

Total Interest-Bearing Liabilities



1,761,049



13,891



3.17 %



836,517



5,036



2.44 %

Non Int Bearing Deposits



632,637











192,135









Total Cost of Funds



$             2,393,686



$                 13,891



2.33 %



$             1,028,652



$                   5,036



1.99 %

Other Liabilities



31,359











17,508









Total Liabilities



$             2,425,045











$           1,046,160









Shareholders' Equity



$               266,795











$               138,025









Total Liabilities & Shareholders' Equity



$             2,691,840











$             1,184,185









Net Interest Income/Spread (FTE)







24,980



3.13 %







8,031



2.41 %

Tax-Equivalent Basis Adjustment







(96)











(77)





Net Interest Income







$                24,884











$                   7,954





Net Interest Margin











4.03 %











2.95 %



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

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

(3) Includes the balances of nonaccrual loans



























 

LINKBANCORP, Inc. and Subsidiaries

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































For the Three Months Ended





March 31, 2024



December 31, 2023

(Dollars in thousands)



Avg Bal



Interest (2)



Yield/Rate



Avg Bal



Interest (2)



Yield/Rate

Int. Earn. Cash



$                   82,420



$               898



4.38 %



$         63,572



$               405



2.53 %

Securities

























Taxable (1)



114,896



1,391



4.87 %



88,632



951



4.26 %

Tax-Exempt



42,984



457



4.28 %



38,269



362



3.75 %

Total Securities



157,880



1,848



4.71 %



126,901



1,313



4.10 %

Total Cash Equiv. and Investments



240,300



2,746



4.60 %



190,473



1,718



3.58 %

Total Loans (3)



2,240,714



36,125



6.48 %



1,411,129



21,461



6.03 %

Total Earning Assets



2,481,014



38,871



6.30 %



1,601,602



23,179



5.74 %

Other Assets



210,826











138,537









Total Assets



$             2,691,840











$   1,740,139









Interest bearing demand



$                 424,781



$           1,942



1.84 %



$       328,342



$             1,746



2.11 %

Money market demand



587,455



3,174



2.17 %



367,821



2,287



2.47 %

Time deposits



608,192



6,731



4.45 %



348,580



3,412



3.88 %

Total Borrowings



140,621



2,044



5.85 %



113,492



1,342



4.69 %

Total Interest-Bearing Liabilities



1,761,049



13,891



3.17 %



1,158,235



8,787



3.01 %

Non Int Bearing Deposits



632,637











371,051









Total Cost of Funds



$             2,393,686



$         13,891



2.33 %



$   1,529,286



$             8,787



2.28 %

Other Liabilities



31,359











28,244









Total Liabilities



$             2,425,045











$   1,557,530









Shareholders' Equity



$                 266,795











$       182,609









Total Liabilities & Shareholders' Equity



$             2,691,840











$   1,740,139









Net Interest Income/Spread (FTE)







24,980



3.13 %







14,392



2.73 %

Tax-Equivalent Basis Adjustment







(96)











(76)





Net Interest Income







$         24,884











$           14,316





Net Interest Margin











4.03 %











3.55 %



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

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

(3) Includes the balances of nonaccrual loans



























 

LINKBANCORP, Inc. and Subsidiaries

Loans Receivable Detail (Unaudited)























(In Thousands)



March 31, 2024



December 31,  2023



September 30, 2023



June 30, 2023



March 31, 2023

 Agriculture and farmland loans



$       67,359



$         65,861



$         50,584



$         50,552



$   53,301

 Construction loans



194,391



178,483



65,836



75,628



67,934

 Commercial & industrial loans



218,724



238,343



115,572



104,869



99,356

 Commercial real estate loans





















    Multifamily



190,146



180,788



111,853



113,254



111,461

    Owner occupied



489,467



501,732



160,929



154,520



151,407

    Non-owner occupied



589,731



580,972



257,344



254,691



249,638

 Residential real estate loans





















    First liens



403,300



402,433



172,481



170,271



166,478

    Second liens and lines of credit



71,060



70,747



27,870



30,148



30,720

 Consumer and other loans



16,810



16,756



11,869



11,308



10,472

 Municipal loans



4,473



5,244



4,137



3,929



4,292





2,245,461



2,241,359



978,475



969,170



945,059

Deferred costs



356



174



437



363



312

Total loans receivable



$   2,245,817



$     2,241,533



$       978,912



$       969,533



$  945,371























 

LINKBANCORP, Inc. and Subsidiaries





Investments in Securities Detail (Unaudited)



























March 31, 2024





(In Thousands)



Amortized

Cost



Net

Unrealized Gains

(Losses)



Fair

Value





Available for Sale:

















US Government Agency securities



$       12,743



$                   106



$       12,849





US Government Treasury securities



4,942



2



4,944





Obligations of state and political subdivisions



49,231



(3,264)



45,967





Mortgage-backed securities in government-sponsored entities



71,276



(3,316)



67,960





Other securities



2,250



(21)



2,229









$     140,442



$            (6,493)



$     133,949



























 Amortized

Cost



 Net Unrealized Gains

(Losses)



 Fair Value



 Allowance for

Credit Losses

Held to Maturity:

















Corporate debentures



$       15,000



$             (1,455)



$       13,545



$           (507)

Structured mortgage-backed securities



21,616



(892)



20,724



-





$       36,616



$             (2,347)



$       34,269



$           (507)























December 31, 2023





(In Thousands)



Amortized

Cost



Net

Unrealized Gains

(Losses)



Fair

Value





Available for Sale:

















US Government Agency securities



$       12,711



$                   274



$       12,985





US Government Treasury securities



4,925



17



4,942





Obligations of state and political subdivisions



49,640



(2,595)



47,045





Mortgage-backed securities in government-sponsored entities



50,795



(2,614)



48,181





Other securities



2,301



36



2,337









$     120,372



$             (4,882)



$     115,490



























Amortized

Cost



Net Unrealized Gains

(Losses)



Fair Value



Allowance for

Credit Losses

Held to Maturity:

















Corporate debentures



$       15,000



$             (1,592)



$       13,408



$           (512)

Structured mortgage-backed securities



21,735



(907)



20,828



-





$       36,735



$             (2,499)



$       34,236



$           (512)



















 

LINKBANCORP, Inc. and Subsidiaries

Deposits Detail (Unaudited)























(In Thousands)



March 31, 2024



December 31, 2023



September 30, 2023



June 30, 2023



March 31, 2023

Demand, noninterest-bearing



$     653,719



$     655,953



$     210,404



$     240,729



$   204,495

Demand, interest-bearing



447,412



438,765



273,673



237,114



250,944

Money market and savings



591,982



577,448



258,334



254,632



241,858

Time deposits, $250 and over



147,898



134,324



51,563



57,194



51,855

Time deposits, other



398,365



372,572



172,798



185,121



165,310

Brokered deposits



146,653



119,411



75,000



60,052



70,036





$   2,386,029



$   2,298,473



$   1,041,772



$  1,034,842



$   984,498













































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























(In Thousands)



March 31, 2024



December 31, 2023



September 30, 2023



June 30, 2023



March 31, 2023

Demand, noninterest-bearing



$     632,637



$     371,051



$     209,054



$     209,072



$   192,135

Demand, interest-bearing



424,781



328,342



254,725



243,539



251,103

Money market and savings



587,455



367,821



254,849



244,355



245,563

Time deposits



518,929



317,747



236,869



236,059



212,478

Brokered deposits



89,263



30,832



28,705



63,339



78,127





$   2,253,065



$   1,415,793



$     984,202



$     996,364



$   979,406























 

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

(Dollars in thousands)

3/31/2024



12/31/2023



3/31/2023

Net income (loss)

$             5,726



$         (12,997)



$           (1,553)

Average assets

2,691,840



1,740,139



1,184,185

Return on average assets (annualized)

0.86 %



-2.96 %



-0.53 %

Net income (loss)

5,726



(12,997)



(1,553)

Net losses on sale of securities

-



-



2,370

Tax effect at 21%

-



-



(498)

Merger & system conversion related expenses

56



9,496



587

Tax effect at 21%

(12)



(1,994)



(123)

Non-purchase credit deteriorated provision for credit losses

-



9,694



-

Tax effect at 21%

-



(2,036)



-

Adjusted Net Income (Non-GAAP)

5,770



2,163



783

Average assets

2,691,840



1,740,139



1,184,185

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

0.86 %



0.49 %



0.27 %













 

Adjusted Return on Average Shareholders' Equity



For the Three Months Ended

(Dollars in thousands)

3/31/2024



12/31/2023



3/31/2023

Net income (loss)

$         5,726



$   (12,997)



$     (1,553)

Average shareholders' equity

266,795



182,609



138,025

Return on average shareholders' equity (annualized)

8.63 %



-28.24 %



-4.56 %

Net income (loss)

5,726



(12,997)



(1,553)

Net losses (gains) on sale of securities

-



-



2,370

Tax effect at 21%

-



-



(498)

Merger & system conversion related expenses

56



9,496



587

Tax effect at 21%

(12)



(1,994)



(123)

Non-purchase credit deteriorated provision for credit losses

-



9,694



-

Tax effect at 21%

-



(2,036)



-

Adjusted Net Income (Non-GAAP)

5,770



2,163



783

Average shareholders' equity

266,795



182,609



138,025

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

8.70 %



4.70 %



2.30 %













 

Adjusted Efficiency Ratio



For the Three Months Ended

(Dollars in thousands)

3/31/2024



12/31/2023



3/31/2023

GAAP-based efficiency ratio

72.33 %



143.86 %



126.82 %

Net interest income

$     24,884



$     14,316



$           7,954

Noninterest income

1,729



1,175



(1,853)

Less: net gains (losses) on sales of securities

-



-



(2,370)

Adjusted revenue (Non-GAAP)

26,613



15,491



8,471

Total noninterest expense

19,250



22,285



7,737

Less: Merger & system conversion related expenses

56



9,496



587

Adjusted non-interest expense

19,194



12,789



7,150

Efficiency ratio, as adjusted (Non-GAAP)

72.12 %



82.56 %



84.41 %













 

Adjusted Earnings Per Share



For the Three Months Ended

(Dollars in thousands, except per share data)

3/31/2024



12/31/2023



3/31/2023

GAAP-Based Earnings  (Loss) Per Share, Basic

$             0.15



$       (0.56)



$           (0.10)

GAAP-Based  Earnings (Loss) Per Share, Diluted

$             0.15



$       (0.56)



$           (0.10)

Net  Income (Loss)

$           5,726



$   (12,997)



$         (1,553)

Net losses on sale of securities

-



-



2,370

Tax effect at 21%

-



-



(498)

Merger & system conversion related expenses

56



9,496



587

 Tax effect at 21%

(12)



(1,994)



(123)

Non-purchase credit deteriorated provision for credit losses

-



9,694



-

 Tax effect at 21%

-



(2,036)



-

Adjusted Net Income (Non-GAAP)

5,770



2,163



783

Adjusted Earnings per Share, Basic (Non-GAAP)

$             0.16



$         0.09



$             0.05

Adjusted Earnings per Share, Diluted (Non-GAAP)

$             0.16



$         0.09



$             0.05













 

Tangible Common Equity and Tangible Book Value





3/31/2024



12/31/2023



9/30/2023



6/30/2023



3/31/2023

Tangible Common Equity



(Dollars in thousands, except for share data)

Total shareholders' equity



$         268,243



$         265,796



$         141,351



$         142,452



$       141,581

Adjustments:





















Goodwill



(56,968)



(56,968)



(35,842)



(35,842)



(35,842)

Other intangible assets



(24,526)



(25,733)



(873)



(932)



(991)

Tangible common equity (Non-GAAP)



$         186,749



$         183,095



$         104,636



$         105,678



$       104,748

Common shares outstanding



37,348,151



37,340,700



16,235,871



16,228,440



16,221,692

Book value per common share



$               7.18



$               7.12



$               8.71



$               8.78



$             8.73

Tangible book value per common share

(Non-GAAP)



$               5.00



$               4.90



$               6.44



$               6.51



$             6.46

Tangible Assets





















Total assets



$     2,784,264



$     2,669,325



$     1,255,695



$     1,308,472



$   1,213,958

Adjustments:





















Goodwill



(56,968)



(56,968)



(35,842)



(35,842)



(35,842)

Other intangible assets



(24,526)



(25,733)



(873)



(932)



(991)

Tangible assets (Non-GAAP)



$     2,702,770



$     2,586,624



$     1,218,980



$     1,271,698



$   1,177,125

Tangible common equity to tangible assets (Non-GAAP)



6.91 %



7.08 %



8.58 %



8.31 %



8.90 %























 

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



For the Three Months Ended

(Dollars in thousands, except per share data)

3/31/2024



12/31/2023



3/31/2023

Net Income (Loss) - GAAP

$           5,726



$   (12,997)



$         (1,553)

Net losses on sale of securities

-



-



2,370

Tax effect at 21%

-



-



(498)

Merger & system conversion related expenses

56



9,496



587

 Tax effect at 21%

(12)



(1,994)



(123)

Adjusted Net Income (Loss) (Non-GAAP)

5,770



(5,495)



783

Income tax expense (benefit)

1,597



(3,641)



(376)

 Provision for credit losses

40



9,844



293

Tax effect included in Adjusted Net Income

12



1,994



621

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

$           7,419



$       2,702



$           1,321













 

Contact:

Nicole Davis

Corporate and Investor Relations Officer

717.803.8895

IR@LINKBANCORP.COM 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/linkbancorp-inc-announces-record-first-quarter-earnings-302130596.html

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