LINKBANCORP, Inc. Announces Record First Quarter 2025 Earnings and Declares Dividend

Rhea-AI Summary

LINKBANCORP reported strong Q1 2025 performance with record net income of $15.3 million ($0.41 per diluted share), up from $7.6 million in Q4 2024. Key highlights include:

• Successful sale of New Jersey operations, resulting in $8.7 million after-tax gain
• Net interest margin expanded to 3.94% from 3.85% in Q4 2024
• Total deposits reached $2.43 billion, with 11.01% annualized growth after adjusting for branch sale
• Tangible book value per share increased 8.2% to $5.80
• Strong liquidity position with cash and equivalents up to $220.2 million

The bank maintains robust capital ratios, with Total Capital Ratio at 12.61% and Tier 1 Capital Ratio at 11.71%. The Board declared a quarterly cash dividend of $0.075 per share, payable June 16, 2025. Asset quality metrics show non-performing assets at 0.91% of total assets, with a loan loss allowance coverage ratio of 102.22%.

Positive

• Record net income of $15.3M in Q1 2025, up from $7.6M in Q4 2024
• Successful sale of NJ operations with $8.7M after-tax gain
• Net interest margin expanded to 3.94% from 3.85% quarter-over-quarter
• Tangible book value per share increased 8.2% to $5.80
• Core deposits grew 11.01% annualized (adjusted for Branch Sale)
• Strong liquidity position with cash/equivalents up $54.1M to $220.2M
• Quarterly cash dividend of $0.075 per share declared

Negative

• Non-performing assets increased to 0.91% of total assets vs 0.60% in previous quarter
• Loans 30-89 days past due increased to 0.56% vs 0.13% in previous quarter
• Two problematic real estate loans totaling $8.8M impacting asset quality
• Decline in service charges on deposits and interchange revenue
• Noninterest expense increased to $19.7M from $18.3M quarter-over-quarter

HARRISBURG, Pa., April 28, 2025 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank"), reported record net income of $15.3 million, or $0.41 per diluted share, for the quarter ended March 31, 2025, compared to net income of $7.6 million, or $0.20 per diluted share, for the quarter ended December 31, 2024.  Excluding income and expenses associated with the sale of the Bank's New Jersey operations and expenses related to the reduction of the size of the Board of Directors, adjusted earnings were $7.4 million¹, or $0.20¹ per diluted share for the first quarter of 2025, compared with $7.6 million¹, or $0.21¹ per diluted share for the fourth quarter of 2024.

Additionally, the Company announced that the Board of Directors declared a quarterly cash dividend of $0.075 per share of common stock which is expected to be paid on June 16, 2025 to shareholders of record on May 30, 2025.

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

First Quarter 2025 Highlights

• Successful Branch Sale. On March 31, 2025, the Bank successfully completed the sale of its banking operations and branches in New Jersey, including related loans and deposits (the "Branch Sale"). The transaction involved the transfer of three branch locations, $87 million of deposits, and $105 million in loans. Under the terms of the purchase and assumption agreement, deposits were sold at a 7% premium and loans were sold at par, resulting in an after-tax gain, net of transaction costs, of $8.7 million.
• Consistent strength in core earnings. Annualized return on average assets was 2.19% for the first quarter of 2025, compared to 1.06% for the fourth quarter of 2024 and 0.86% for the first quarter of 2024. Adjusted return on average assets was 1.05%¹ for the first quarter of 2025, compared to 1.07%¹ for the fourth quarter of 2024 and 0.86%¹ for the first quarter of 2024.
• Net interest margin expands to 3.94%. Net interest margin expanded to 3.94% for the first quarter of 2025 from 3.85% for the fourth quarter of 2024. Net interest margin was impacted by increased purchase accounting accretion, an increase in loan yields and a decrease in cost of funds.
• Greater than 8% growth in tangible book value per share. The Company's book value per share increased to $7.87 at March 31, 2025 from $7.50 at December 31, 2024. Tangible book value per share increased $0.44, or 8.2%, from $5.36¹ at December 31, 2024 to $5.80¹ at March 31, 2025. The Company's ratio of Tangible Common Equity to Tangible Assets was 7.78%¹ at March 31, 2025, compared to 7.16%¹ at December 31, 2024 and 6.91%¹ at March 31, 2024.
• Significant increase in core deposits supports balance sheet growth. Total deposits at March 31, 2025 were $2.43 billion compared to $2.45 billion at December 31, 2024, representing an increase of $66.6 million, or 11.01% annualized after adjusting for the Branch Sale². Total loans at March 31, 2025 were $2.27 billion, compared to $2.35 billion at December 31, 2024, representing an increase of $24.0 million or 4.10% after adjusting for the Branch Sale².
• Continued strength in on-balance sheet liquidity. Cash and cash equivalents increased $54.1 million from $166.1 million at December 31, 2024 to $220.2 million at March 31, 2025, further bolstering the Company's strong liquidity position.

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

2 See Loan and Deposit Tables for Branch Sale Reconciliation

"We are very pleased to present consistent core earnings in addition to the successful sale of our New Jersey operations," said Andrew Samuel, Chief Executive Officer of LINKBANCORP. "Strong core deposit growth and the gain from the New Jersey sale has well positioned our teams to support our loan pipeline headed into the second quarter. Our strengthened liquidity and capital positions provide the foundation for continued growth, with an emphasis on creating long term shareholder value as we positively impact our local communities."

Income Statement
Net interest income before the provision for credit losses for the first quarter of 2025 was $25.8 million compared to $25.5 million in the fourth quarter of 2024 and $24.9 million for the first quarter of 2024. Net interest margin expanded to 3.94% for the first quarter of 2025 compared to 3.85% for the fourth quarter of 2024.  The improvement in net interest margin was driven by a 5 basis points increase in average yield on interest earning assets from 6.09% for the fourth quarter of 2024 compared to 6.14% for the first quarter of 2025. This increase included an increase in purchase accounting accretion while core loan yields increased marginally quarter-over-quarter. In addition, the total cost of funds declined 3 basis points from 2.32% for the fourth quarter of 2024 to 2.29% for the first quarter of 2025, driven by a 5 basis points decrease in the average cost of deposits from 2.15% for the fourth quarter of 2024 to 2.10% for the first quarter of 2025, partially offset by an increase in wholesale funding costs.

Noninterest income increased quarter-over-quarter to $13.3 million for the first quarter of 2025 compared to $2.6 million for the fourth quarter of 2024 due to the $11.1 million pre-tax gain from the Branch Sale, offset by a decline in service charges on deposits mostly attributable to a decrease in account level fees and interchange revenue.

Noninterest expense for the first quarter of 2025 was $19.7 million compared to $18.3 million for the fourth quarter of 2024 and $19.3 million for the first quarter of 2024.  Excluding non-core operating costs totaling $912 thousand in the first quarter of 2025, $56 thousand in the fourth quarter of 2024 and $56 thousand in the first quarter of 2024, adjusted noninterest expense increased $541 thousand¹ from $18.2 million¹ for the fourth quarter of 2024 to $18.7 million¹ for the first quarter of 2025 while decreasing $407 thousand¹ year-over-year from $19.2 million¹ for the first quarter of 2024. Adjusted non-interest expense for the first quarter of 2025 excludes expenses related to the reduction of the size of the Board of Directors included in other noninterest expense, as well as bonus accruals related to completion of the Branch Sale included in salaries and employee benefits expense, and other merger and restructuring costs.   

Income tax expense was $3.9 million for the first quarter of 2025, reflecting an effective tax rate of 20.1% compared to $2.1 million for the fourth quarter of 2024, reflecting an effective rate of 21.9% and $1.6 million for the first quarter of 2024, reflecting an effective tax rate of 21.8%, respectively. The tax rate decreased quarter-over-quarter due to a state income tax apportionment adjustment.

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

Balance Sheet
Total assets were $2.86 billion at March 31, 2025 compared to $2.88 billion at December 31, 2024 and $2.79 billion at March 31, 2024.  Deposits and net loans as of March 31, 2025 totaled $2.43 billion and $2.25 billion, respectively, compared to deposits and net loans of $2.36 billion and $2.23 billion, respectively, at December 31, 2024 and $2.28 billion and $2.11 billion, respectively, at March 31, 2024.  Deposits and net loans exclude recorded balances held for sale in the Branch Sale of $93.6 million and $91.8 million, respectively, at December 31, 2024, which are reflected in liabilities held for sale and assets held for sale.  These balances were $105.6 million and $115.9 million respectively, at March 31, 2024.

Total loans at March 31, 2025 were $2.27 billion, compared to $2.35 billion at December 31, 2024, representing an increase of $24.0 million after adjusting for the Branch Sale².Total commercial loan commitments originated in the first quarter of 2025 were $98.5 million with funded balances of $72.0 million. The average commercial loan commitment originated during the first quarter of 2025 totaled approximately $788 thousand with an average outstanding funded balance of $576 thousand.

Total deposits at March 31, 2025 were $2.43 billion compared to $2.45 billion at December 31, 2024, representing an increase of $66.6 million after adjusting for the Branch Sale². Average total deposits, including deposits held for sale, increased $5.3 million to $2.38 billion for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024. Noninterest bearing deposits totaled $646.0 million at March 31, 2025, representing 26.5% of total deposits.

The Company continues to maintain strong on-balance sheet liquidity, as cash and cash equivalents increased 32.6% to $220.2 million at March 31, 2025 compared to $166.1 million at December 31, 2024.

Shareholders' equity increased from $280.2 million at December 31, 2024 to $294.1 million at March 31, 2025 primarily as a result of a $12.6 million increase in retained earnings.  Book value per share increased to $7.87 at March 31, 2025 compared to $7.50 at December 31, 2024.  Tangible book value per share increased to $5.80¹  at March 31, 2025 compared to $5.36¹  at December 31, 2024 and $5.00¹ at March 31, 2024, representing 16% growth year over year.

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

2 See Loan and Deposit Tables for Branch Sale Reconciliation

Asset Quality
The Company recorded a $228 thousand provision for credit losses during the first quarter of 2025, after recording a $132 thousand provision for credit losses in the fourth quarter of 2024.  

As of March 31, 2025, the Company's non-performing assets were $26.0 million, representing 0.91% of total assets, compared to $17.2 million, representing 0.60% of total assets at December 31, 2024.

Loans 30-89 days past due at March 31, 2025 were $12.7 million, representing 0.56% of total loans compared to $2.9 million or 0.13% of total loans at December 31, 2024 and $15.3 million or 0.68% of total loans at March 31, 2024.

The current increase in non-performing assets and delinquencies primarily relate to two properly margined first lien secured real estate loans with an aggregate principal balance of approximately $8.8 million at March 31, 2025.

The allowance for credit losses-loans was $26.6 million, or 1.17% of total loans held for investment at March 31, 2025, compared to $26.4 million, or 1.17% of total loans held for investment at December 31, 2024.  The allowance for credit losses-loans to nonperforming assets ratio was 102.22% at March 31, 2025, compared to 153.93% at December 31, 2024.

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

Capital
The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of March 31, 2025. The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 12.61% and 11.71% respectively, at March 31, 2025, compared to 11.55% and 10.74%, respectively, at December 31, 2024 and 11.04% and 10.24%, respectively, at March 31, 2024. The Company's ratio of Tangible Common Equity to Tangible Assets was 7.78%¹ at March 31, 2025 compared to 7.16%¹ at December 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 and Virginia, through 24 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; changes in general economic trends, including inflation, tariffs 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, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
(In Thousands, except share and per share data)
ASSETS
Noninterest-bearing cash equivalents		$          14,830		$                     13,834		$              15,295		$        14,516		$             13,552
Interest-bearing deposits with other institutions		205,352		152,266		175,937		167,141		158,731
Cash and cash equivalents		220,182		166,100		191,232		181,657		172,283
Securities available for sale, at fair value		159,183		145,590		149,315		140,121		133,949
Securities held to maturity, net of allowance for credit losses		27,662		31,508		34,155		35,343		36,109
Loans receivable, gross		2,273,941		2,255,749		2,215,868		2,193,197		2,129,919
Allowance for credit losses - loans		(26,619)		(26,435)		(26,542)		(26,288)		(23,842)
Loans receivable, net		2,247,322		2,229,314		2,189,326		2,166,909		2,106,077
Investments in restricted bank stock		4,780		5,209		4,904		4,928		4,286
Premises and equipment, net		17,920		18,029		17,623		18,364		20,102
Right-of-Use Asset – premises		14,537		14,913		14,150		13,970		14,577
Bank-owned life insurance		52,507		52,079		51,646		49,616		49,230
Goodwill and other intangible assets		77,379		79,761		80,924		82,129		81,494
Deferred tax asset		18,636		18,866		21,662		22,024		22,717
Assets held for sale		—		94,146		104,660		118,362		118,115
Accrued interest receivable and other assets		23,288		23,263		20,344		25,170		26,730
TOTAL ASSETS		$     2,863,396		$                2,878,778		$         2,879,941		$   2,858,593		$        2,785,669
LIABILITIES
Deposits:
Demand, noninterest bearing		$        646,002		$                   658,646		$            658,473		$      661,292		$           618,277
Interest bearing		1,787,692		1,701,936		1,714,179		1,699,220		1,662,124
Total deposits		2,433,694		2,360,582		2,372,652		2,360,512		2,280,401
Long-term borrowings		40,000		40,000		40,000		40,000		40,000
Short-term borrowings		—		10,000		—		—		—
Note payable		559		565		572		578		584
Subordinated debt		62,129		61,984		61,843		61,706		61,573
Lease liabilities		15,284		15,666		14,911		14,746		15,357
Liabilities held for sale		—		93,777		94,228		96,916		105,716
Accrued interest payable and other liabilities		17,664		15,983		18,382		12,726		13,795
TOTAL LIABILITIES		2,569,330		2,598,557		2,602,588		2,587,184		2,517,426
SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		370		370		370		370		369
Surplus		264,871		264,449		264,059		263,795		263,577
Retained earnings		32,507		19,947		15,147		10,826		7,724
Accumulated other comprehensive loss		(3,682)		(4,545)		(2,223)		(3,582)		(3,427)
TOTAL SHAREHOLDERS' EQUITY		294,066		280,221		277,353		271,409		268,243
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$     2,863,396		$                2,878,778		$         2,879,941		$   2,858,593		$        2,785,669
Common shares outstanding		37,377,342		37,370,917		37,361,560		37,356,278		37,348,151

 

LINKBANCORP, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
		Three Months Ended
		3/31/2025		12/31/2024		3/31/2024
(In Thousands, except share and per share data)
INTEREST AND DIVIDEND INCOME
Loans receivable, including fees		$          37,041		$         37,082		$           36,125
Other		3,101		3,224		2,650
Total interest and dividend income		40,142		40,306		38,775
INTEREST EXPENSE
Deposits		12,357		12,823		11,847
Other Borrowings		986		962		1,152
Subordinated Debt		968		976		892
Total interest expense		14,311		14,761		13,891
NET INTEREST INCOME BEFORE    PROVISION FOR CREDIT LOSSES		25,831		25,545		24,884
Provision for credit losses		228		132		40
NET INTEREST INCOME AFTER    PROVISION FOR CREDIT LOSSES		25,603		25,413		24,844
NONINTEREST INCOME
Service charges on deposit accounts		1,061		1,339		780
Bank-owned life insurance		428		433		383
Gain on sale of loans		77		70		50
Gain on sale of branches		11,093		—		—
Other		598		752		516
Total noninterest income		13,257		2,594		1,729
NONINTEREST EXPENSE
Salaries and employee benefits		11,156		10,147		11,118
Occupancy		1,464		1,368		1,578
Equipment and data processing		2,043		1,884		1,826
Professional fees		487		531		748
FDIC insurance and supervisory fees		599		687		352
Bank Shares Tax		614		693		591
Intangible amortization		1,084		1,162		1,207
Merger & restructuring expenses		41		56		56
Advertising		144		128		234
Other		2,026		1,646		1,540
Total noninterest expense		19,658		18,302		19,250
Income before income tax expense		19,202		9,705		7,323
Income tax expense		3,859		2,121		1,597
NET  INCOME		$          15,343		$           7,584		$             5,726
EARNINGS PER SHARE, BASIC		$              0.41		$             0.20		$               0.15
EARNINGS PER SHARE, DILUTED		$              0.41		$             0.20		$               0.15
WEIGHTED-AVERAGE COMMON SHARES    OUTSTANDING,
BASIC		37,105,480		37,045,701		36,962,005
DILUTED		37,221,939		37,166,107		37,045,230

 

LINKBANCORP, Inc. and Subsidiaries
Financial Highlights (Unaudited)
	For the Three Months Ended
(Dollars In Thousands, except per share data)	3/31/2025		12/31/2024		3/31/2024
Operating Highlights
Net Income	$           15,343		$           7,584		$                 5,726
Net Interest Income	25,831		25,545		24,884
Provision for Credit Losses	228		132		40
Non-Interest Income	13,257		2,594		1,729
Non-Interest Expense	19,658		18,302		19,250
Earnings per Share, Basic	0.41		0.20		0.15
Adjusted Earnings per Share, Basic (2)	0.20		0.21		0.16
Earnings per Share, Diluted	0.41		0.20		0.15
Adjusted Earnings per Share, Diluted (2)	0.20		0.21		0.16
Selected Operating Ratios
Net Interest Margin	3.94 %		3.85 %		4.03 %
Annualized Return on Assets ("ROA")	2.19 %		1.06 %		0.86 %
Adjusted ROA2	1.05 %		1.07 %		0.86 %
Annualized Return on Equity ("ROE")	21.90 %		10.82 %		8.63 %
Adjusted ROE2	10.56 %		10.88 %		8.70 %
Efficiency Ratio	50.29 %		65.04 %		72.33 %
Adjusted Efficiency Ratio3	66.96 %		64.84 %		72.12 %
Noninterest Income to Avg. Assets	1.89 %		0.36 %		0.26 %
Noninterest Expense to Avg. Assets	2.80 %		2.56 %		2.88 %
	3/31/2025		12/31/2024		9/30/2024		6/30/2024		3/31/2024
Financial Condition Data
Total Assets	$      2,863,396		$     2,878,778		$           2,879,941		$         2,858,593		$       2,785,669
Loans Receivable, Net	2,247,322		2,229,314		2,189,326		2,166,909		2,106,077
Noninterest-bearing Deposits	646,002		658,646		658,473		661,292		618,277
Interest-bearing Deposits	1,787,692		1,701,936		1,714,179		1,699,220		1,662,124
Total Deposits	$      2,433,694		$     2,360,582		$           2,372,652		$         2,360,512		$       2,280,401
Selected Balance Sheet Ratios
Total Capital Ratio1	12.61 %		11.55 %		11.44 %		11.09 %		11.04 %
Tier 1 Capital Ratio1	11.71 %		10.74 %		10.62 %		10.30 %		10.24 %
Common Equity Tier 1 Capital Ratio1	11.71 %		10.74 %		10.62 %		10.30 %		10.24 %
Leverage Ratio1	10.02 %		9.49 %		9.41 %		9.17 %		9.23 %
Tangible Common Equity to Tangible Assets4	7.78 %		7.16 %		7.02 %		6.82 %		6.91 %
Tangible Book Value per Share5	$              5.80		$             5.36		$                   5.26		$                 5.07		$               5.00
Asset Quality Data
Non-performing Assets	$           26,041		$         17,173		$               17,378		$              10,589		$             6,675
Non-performing Assets to Total Assets	0.91 %		0.60 %		0.60 %		0.37 %		0.24 %
Non-performing Loans to Total Loans	1.15 %		0.76 %		0.78 %		0.48 %		0.31 %
Allowance for Credit Losses - Loans ("ACLL")	$           26,619		$         26,435		$               26,542		$              26,288		$           23,842
ACLL to Total Loans	1.17 %		1.17 %		1.20 %		1.20 %		1.06 %
ACLL to Nonperforming Assets	102.22 %		153.93 %		152.73 %		248.26 %		357.18 %
Net chargeoffs (recoveries)	$                 81		$              252		$                    (28)		$                   (20)		$                  70

(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,
		2025						2024
(Dollars in thousands)		Avg Bal		Interest (2)		Yield/Rate		Avg Bal		Interest (2)		Yield/Rate
Int. Earn. Cash		$                119,269		$                       972		3.31 %		$                  82,420		$                       898		4.38 %
Securities
Taxable (1)		142,867		1,749		4.96 %		114,896		1,391		4.87 %
Tax-Exempt		43,845		481		4.45 %		42,984		457		4.28 %
Total Securities		186,712		2,230		4.84 %		157,880		1,848		4.71 %
Total Cash Equiv. and Investments		305,981		3,202		4.24 %		240,300		2,746		4.60 %
Total Loans (3)		2,350,031		37,041		6.39 %		2,240,714		36,125		6.48 %
Total Earning Assets		2,656,012		40,243		6.14 %		2,481,014		38,871		6.30 %
Other Assets		191,469						210,826
Total Assets		$             2,847,481						$             2,691,840
Interest bearing demand		$                545,475		3,048		2.27 %		$                424,781		1,942		1.84 %
Money market demand		555,663		2,937		2.14 %		587,455		3,174		2.17 %
Time deposits		632,649		6,372		4.08 %		608,192		6,731		4.45 %
Total Borrowings		149,922		1,954		5.29 %		140,621		2,044		5.85 %
Total Interest-Bearing Liabilities		1,883,709		14,311		3.08 %		1,761,049		13,891		3.17 %
Non Interest-Bearing Deposits		649,440						632,637
Total Cost of Funds		2,533,149		14,311		2.29 %		2,393,686		13,891		2.33 %
Other Liabilities		30,229						31,359
Total Liabilities		2,563,378						2,425,045
Shareholders' Equity		284,104						266,795
Total Liabilities & Shareholders' Equity		$             2,847,482						$             2,691,840
Net Interest Income/Spread (FTE)				25,932		3.06 %				24,980		3.13 %
Tax-Equivalent Basis Adjustment				(101)						(96)
Net Interest Income				$                  25,831						$                  24,884
Net Interest Margin						3.94 %						4.03 %

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

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

(3) Includes the balances of nonaccrual loans

 

LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Linked Quarter-To-Date (Unaudited)
		For the Three Months Ended
		March 31, 2025						December 31, 2024
(Dollars in thousands)		Avg Bal		Interest (2)		Yield/Rate		Avg Bal		Interest (2)		Yield/Rate
Int. Earn. Cash		$                 119,269		$               972		3.31 %		$        128,802		$            1,300		4.02 %
Securities
Taxable (1)		142,867		1,749		4.96 %		138,168		1,540		4.43 %
Tax-Exempt		43,845		481		4.45 %		44,958		486		4.30 %
Total Securities		186,712		2,230		4.84 %		183,126		2,026		4.40 %
Total Cash Equiv. and Investments		305,981		3,202		4.24 %		311,928		3,326		4.24 %
Total Loans (3)		2,350,031		37,041		6.39 %		2,327,829		37,082		6.34 %
Total Earning Assets		2,656,012		40,243		6.14 %		2,639,757		40,408		6.09 %
Other Assets		191,469						202,693
Total Assets		$              2,847,481						$     2,842,450
Interest bearing demand		$                 545,475		3,048		2.27 %		$        537,856		3,043		2.25 %
Money market demand		555,663		2,937		2.14 %		567,593		3,139		2.20 %
Time deposits		632,649		6,372		4.08 %		607,231		6,641		4.35 %
Total Borrowings		149,922		1,954		5.29 %		153,117		1,938		5.04 %
Total Interest-Bearing Liabilities		1,883,709		14,311		3.08 %		1,865,797		14,761		3.15 %
Non Interest-Bearing Deposits		649,440						665,276
Total Cost of Funds		2,533,149		14,311		2.29 %		2,531,073		14,761		2.32 %
Other Liabilities		30,229						32,493
Total Liabilities		2,563,378						2,563,566
Shareholders' Equity		284,104						278,884
Total Liabilities & Shareholders' Equity		$              2,847,482						$     2,842,450
Net Interest Income/Spread (FTE)				25,932		3.06 %				25,647		2.94 %
Tax-Equivalent Basis Adjustment				(101)						(102)
Net Interest Income				$          25,831						$          25,545
Net Interest Margin						3.94 %						3.85 %

(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, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Agriculture and farmland loans		$           66,684		$                67,741		$             65,166		$          66,937		$          67,359
Construction loans		136,421		158,296		175,373		201,174		194,391
Commercial & industrial loans		257,302		252,163		241,597		247,190		218,724
Commercial real estate loans
Multifamily		215,916		217,331		212,444		199,740		190,146
Owner occupied		472,895		493,906		500,643		492,065		489,467
Non-owner occupied		645,793		658,615		626,030		610,649		589,731
Residential real estate loans
First liens		378,420		399,476		400,869		400,098		403,300
Second liens and lines of credit		79,905		78,410		73,591		71,168		71,060
Consumer and other loans		17,097		17,087		17,498		15,514		16,810
Municipal loans		3,012		3,886		4,296		4,362		4,473
		2,273,445		2,346,911		2,317,507		2,308,897		2,245,461
Deferred costs		496		645		634		478		356
Total loans receivable		2,273,941		2,347,556		2,318,141		2,309,375		2,245,817
Less: Loans held for sale		—		91,807		102,273		116,178		115,898
Loans Held for Investment		$      2,273,941		$           2,255,749		$        2,215,868		$     2,193,197		$     2,129,919
LINKBANCORP, Inc. and Subsidiaries
Loan Growth Calculation Excluding Branch Sale (Unaudited)
(In Thousands)		March 31, 2025
Total Loans at March 31, 2025		$      2,273,941
Total Loans at December 31, 2024		2,347,556
Quarterly Change		(73,615)
Net Book Value of Loans Sold		97,952
Quarterly Loan Growth Excluding Branch Sale		24,337
Annualized Growth Rate		4.20 %

 

LINKBANCORP, Inc. and Subsidiaries
Investments in Securities Detail (Unaudited)
		March 31, 2025
(In Thousands)		Amortized Cost		Net Unrealized Gains (Losses)		Fair Value
Available for Sale:
US Government Agency securities		$        13,097		$                   176		$        13,273
Obligations of state and political subdivisions		51,221		(3,756)		47,465
Mortgage-backed securities in government-sponsored entities		99,909		(1,864)		98,045
Other securities		408		(8)		400
		$      164,635		$              (5,452)		$      159,183
		Amortized Cost		Net Unrealized Losses		Fair Value		Allowance for Credit Losses
Held to Maturity:
Corporate debentures		$        12,250		$                 (828)		$        11,422		$            (421)
Structured mortgage-backed securities		15,833		(491)		15,342		-
		$        28,083		$              (1,319)		$        26,764		$            (421)
		December 31, 2024
(In Thousands)		Amortized Cost		Net Unrealized Gains (Losses)		Fair Value
Available for Sale:
US Government Agency securities		$        13,017		$                     56		$        13,073
Obligations of state and political subdivisions		51,254		(4,053)		47,201
Mortgage-backed securities in government-sponsored entities		88,289		(3,506)		84,783
Other securities		542		(9)		533
		$      153,102		$              (7,512)		$      145,590
		Amortized Cost		Net Unrealized Losses		Fair Value		Allowance for Credit Losses
Held to Maturity:
Corporate debentures		$        15,250		$                 (984)		$        14,266		$            (459)
Structured mortgage-backed securities		16,717		(699)		16,018		-
		$        31,967		$              (1,683)		$        30,284		$            (459)

 

LINKBANCORP, Inc. and Subsidiaries
Deposits Detail (Unaudited)
(In Thousands)		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Demand, noninterest-bearing		$        646,002		$               686,510		$             687,536		$            692,095		$       653,719
Demand, interest-bearing		577,170		537,546		547,099		488,043		447,412
Money market and savings		553,240		553,807		585,395		582,561		591,982
Time deposits, $250 and over		166,441		167,165		169,616		156,621		147,898
Time deposits, other		387,226		405,493		401,976		393,603		398,365
Brokered deposits		103,615		103,615		75,000		144,429		146,653
		2,433,694		2,454,136		2,466,622		2,457,352		2,386,029
Less: Deposits held for sale		—		93,554		93,970		96,840		105,628
Total deposits		$     2,433,694		$            2,360,582		$          2,372,652		$         2,360,512		$    2,280,401
Average Deposits Detail, for the Three Months Ended (Unaudited)
(In Thousands)		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Demand, noninterest-bearing		$        649,440		$               665,276		$             659,825		$            657,939		$       632,637
Demand, interest-bearing		545,475		537,856		497,100		446,109		424,781
Money market and savings		555,663		567,593		580,766		581,223		587,455
Time deposits		576,366		568,615		560,815		547,582		518,929
Brokered deposits		56,283		38,616		52,587		95,337		89,263
Total deposits		$     2,383,227		$            2,377,956		$          2,351,093		$         2,328,190		$    2,253,065
Balances in table above include deposits held for sale
LINKBANCORP, Inc. and Subsidiaries
Deposit Growth Calculation Excluding Branch Sale (Unaudited)
(In Thousands)		March 31, 2025
Total Deposits at March 31, 2025		$     2,433,694
Total Deposits at December 31, 2024		2,454,136
Quarterly Change		(20,442)
Net Book Value of Deposits Sold		87,086
Quarterly Deposit Growth Excluding Branch Sale		66,644
Annualized Growth Rate		11.01 %

 

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)		3/31/2025		12/31/2024		3/31/2024
Net income		$           15,343		$             7,584		$             5,726
Average assets		2,847,481		2,842,450		2,691,840
Return on average assets (annualized)		2.19 %		1.06 %		0.86 %
Net income		$           15,343		$             7,584		$             5,726
Gain on sale of branches		(11,093)		—		—
Tax effect(1)		2,440		—		—
Transaction bonus accrual		490		—		—
Tax effect(1)		(108)		—		—
Board restructuring accrual		381		—		—
Tax effect(1)		(84)		—		—
Merger & restructuring expenses		41		56		56
Tax effect(1)		(9)		(12)		(12)
Adjusted Net Income (Non-GAAP)		$             7,401		$             7,628		$             5,770
Average assets		$      2,847,481		$      2,842,450		$      2,691,840
Adjusted return on average assets (annualized) (Non-GAAP)		1.05 %		1.07 %		0.86 %
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21% for prior periods

 

Adjusted Return on Average Shareholders' Equity
		For the Three Months Ended
(Dollars in thousands)		3/31/2025		12/31/2024		3/31/2024
Net income		$       15,343		$         7,584		$          5,726
Average shareholders' equity		284,104		278,884		266,795
Return on average shareholders' equity (annualized)		21.90 %		10.82 %		8.63 %
Net income		$       15,343		$         7,584		$          5,726
Gain on sale of branches		(11,093)		—		—
Tax effect(1)		2,440		—		—
Transaction bonus accrual		490		—		—
Tax effect(1)		(108)		—		—
Board restructuring accrual		381		—		—
Tax effect(1)		(84)		—		—
Merger & restructuring expenses		41		56		56
Tax effect(1)		(9)		(12)		(12)
Adjusted Net Income (Non-GAAP)		$         7,401		$         7,628		$          5,770
Average shareholders' equity		$     284,104		$     278,884		$      266,795
Adjusted return on average shareholders' equity (annualized) (Non-GAAP)		10.56 %		10.88 %		8.70 %
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21% for prior periods

 

Adjusted Efficiency Ratio
	For the Three Months Ended
(Dollars in thousands)	3/31/2025		12/31/2024		3/31/2024
GAAP-based efficiency ratio	50.29 %		65.04 %		72.33 %
Net interest income	$     25,831		$     25,545		$     24,884
Noninterest income	13,257		2,594		1,729
Less: Gain on sale of branches	(11,093)		-		-
Adjusted revenue (Non-GAAP)	27,995		28,139		26,613
Total noninterest expense	19,658		18,302		19,250
Less: Merger & restructuring expenses	41		56		56
Less: Transaction bonus accrual	490		-		-
Less: Board restructuring accrual	381		-		-
Adjusted non-interest expense	$     18,746		$     18,246		$     19,194
Efficiency ratio, as adjusted (Non-GAAP)	66.96 %		64.84 %		72.12 %

 

Adjusted Earnings Per Share
	For the Three Months Ended
(Dollars in thousands, except per share data)	3/31/2025		12/31/2024		3/31/2024
GAAP-Based Earnings Per Share, Basic	$         0.41		$              0.20		$         0.15
GAAP-Based Earnings Per Share, Diluted	$         0.41		$              0.20		$         0.15
Net Income	$     15,343		$            7,584		$       5,726
Gain on sale of branches	(11,093)		—		—
Tax effect(1)	2,440		—		—
Transaction bonus accrual	490		—		—
Tax effect(1)	(108)		—		—
Board restructuring accrual	381		—		—
Tax effect(1)	(84)		—		—
Merger & restructuring expenses	41		56		56
Tax effect(1)	(9)		(12)		(12)
Adjusted Net Income (Non-GAAP)	$       7,401		$            7,628		$       5,770
Adjusted Earnings per Share, Basic (Non-GAAP)	$         0.20		$              0.21		$         0.16
Adjusted Earnings per Share, Diluted (Non-GAAP)	$         0.20		$              0.21		$         0.16
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21% for prior periods

 

Tangible Common Equity and Tangible Book Value
(Dollars in thousands, except per share data)		3/31/2025		12/31/2024		9/30/2024		6/30/2024		3/31/2024
Tangible Common Equity
Total shareholders' equity		$    294,066		$        280,221		$         277,353		$       271,409		$        268,243
Adjustments:
Goodwill		(58,806)		(58,806)		(58,806)		(58,806)		(56,968)
Other intangible assets		(18,573)		(20,955)		(22,118)		(23,323)		(24,526)
Tangible common equity (Non-GAAP)		$    216,687		$        200,460		$         196,429		$       189,280		$        186,749
Common shares outstanding		37,377,342		37,370,917		37,361,560		37,356,278		37,348,151
Book value per common share		$          7.87		$              7.50		$               7.42		$             7.27		$              7.18
Tangible book value per common share (Non-GAAP)		$          5.80		$              5.36		$               5.26		$             5.07		$              5.00
Tangible Assets
Total assets		$ 2,863,396		$     2,878,778		$      2,879,941		$    2,858,593		$     2,785,669
Adjustments:
Goodwill		(58,806)		(58,806)		(58,806)		(58,806)		(56,968)
Other intangible assets		(18,573)		(20,955)		(22,118)		(23,323)		(24,526)
Tangible assets (Non-GAAP)		$ 2,786,017		$     2,799,017		$      2,799,017		$    2,776,464		$     2,704,175
Tangible common equity to tangible assets (Non-GAAP)		7.78 %		7.16 %		7.02 %		6.82 %		6.91 %

 

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)
	For the Three Months Ended
(Dollars in thousands, except per share data)	3/31/2025		12/31/2024		3/31/2024
Net Income (GAAP)	$          15,343		$       7,584		$           5,726
Gain on sale of branches	(11,093)		—		—
Tax effect(1)	2,440		—		—
Transaction bonus accrual	490		—		—
Tax effect(1)	(108)		—		—
Board restructuring accrual	381		—		—
Tax effect(1)	(84)		—		—
Merger & restructuring expenses	41		56		56
Tax effect(1)	(9)		(12)		(12)
Adjusted Net Income (Non-GAAP)	7,401		7,628		5,770
Income tax expense	3,859		2,121		1,597
Provision for credit losses	228		132		40
Tax effect included in Adjusted Net Income	(2,239)		12		12
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)	$            9,249		$       9,893		$           7,419
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21% for prior periods

 

Contact:
Nick West
Director, Corporate Development
717.678.7935
IR@LINKBANCORP.COM 

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SOURCE LINKBANCORP, Inc.

FAQ

How much profit did LNKB make in Q1 2025?

LINKBANCORP (LNKB) reported record net income of $15.3 million, or $0.41 per diluted share, in Q1 2025, compared to $7.6 million ($0.20 per share) in Q4 2024.

What was the gain from LNKB's New Jersey branch sale in 2025?

LNKB's New Jersey branch sale in March 2025 resulted in an after-tax gain of $8.7 million. The sale included three branches, $87 million in deposits (sold at 7% premium), and $105 million in loans (sold at par).

What dividend will LNKB pay shareholders in June 2025?

LNKB will pay a quarterly cash dividend of $0.075 per share on June 16, 2025, to shareholders of record as of May 30, 2025.

How did LNKB's net interest margin perform in Q1 2025?

LNKB's net interest margin expanded to 3.94% in Q1 2025 from 3.85% in Q4 2024, driven by increased purchase accounting accretion, higher loan yields, and lower cost of funds.

What is LNKB's tangible book value growth in Q1 2025?

LNKB's tangible book value per share increased by $0.44 (8.2%) from $5.36 to $5.80 in Q1 2025, with the tangible common equity to assets ratio improving to 7.78%.