Financial Performance - Net income for the three months ended September 30, 2025, was $7.8 million, a $744 thousand increase from the same period in 2024, with diluted earnings per share rising to $0.21 from $0.19[168] - For the nine months ended September 30, 2025, net income reached $30.6 million, an increase of $11.9 million compared to the same period in 2024, with diluted earnings per share increasing to $0.82 from $0.50[168] - Net income for the nine months ended September 30, 2025, was $30.6 million, or $0.82 per diluted share, an increase of $11.9 million compared to $18.7 million, or $0.50 per diluted share, for the same period in 2024[206] - The increase in net income for the nine months ended September 30, 2025, was primarily due to an increase in noninterest income of $12.7 million and an increase in interest and dividend income of $3.1 million[207] Assets and Loans - Total assets increased to $3.12 billion as of September 30, 2025, reflecting an increase of $243.6 million or 8.46% from $2.88 billion at December 31, 2024[170] - Net loans receivable rose by $202.3 million, from $2.23 billion at December 31, 2024, to $2.43 billion at September 30, 2025[170] - Total loans increased to $2.36 billion for the nine months ended September 30, 2025, up from $2.28 billion for the same period in 2024[210] Deposits and Equity - The total increase in deposits was $300.3 million, contributing to the overall growth in the company's financial position[172] - Total deposits grew by $307.5 million, or 13.0%, to $2.67 billion at September 30, 2025, from $2.36 billion at December 31, 2024[181] - Demand deposits increased by $133.8 million during the first nine months of 2025, primarily due to new accounts opened[182] - Total shareholders' equity increased by $25.2 million, or 9.0%, to $305.5 million at September 30, 2025, primarily due to net income of $30.6 million for the nine months ended September 30, 2025[191] Income and Expenses - Net interest income before provision for credit losses increased by $1.4 million or 5.62% for the three months ended September 30, 2025, compared to the same period in 2024[168] - Interest income increased by $1.8 million for the three months ended September 30, 2025, compared to the same period in 2024[193] - Non-interest income increased by $125 thousand to $2.8 million for the three months ended September 30, 2025, from $2.7 million in the same period of 2024[203] - Non-interest expense decreased by $281 thousand, or 1.52%, to $18.2 million for the three months ended September 30, 2025, from $18.5 million for the same period in 2024[204] - Non-interest income increased by $12.7 million to $19.0 million for the nine months ended September 30, 2025, primarily due to a gain on the New Jersey Branch Sale of $11.1 million[218] - Non-interest expense decreased by $707 thousand, or 1.25%, to $55.9 million for the nine months ended September 30, 2025, from $56.6 million for the same period in 2024[219] Credit Losses and Provisions - The allowance for credit losses on loans decreased by $1.1 million from $26.4 million at December 31, 2024, to $25.3 million at September 30, 2025, representing 1.03% of total gross loans[175] - Non-performing loans increased to $24.6 million, or 1.00% of total gross loans, compared to $17.2 million, or 0.76%, at December 31, 2024[176] - The provision for credit losses was $1.0 million for the three months ended September 30, 2025, compared to $84 thousand for the same period in 2024, reflecting an increase in forecasted losses[201] - Provision for credit losses was $1.6 million for the nine months ended September 30, 2025, compared to $125 thousand for the same period in 2024, reflecting an increase in forecasted losses[216] - The allowance for credit losses is estimated at $25.4 million as of September 30, 2025, with potential adjustments based on economic conditions affecting U.S. GDP and unemployment rates[230][231] Liquidity and Capital - The Company actively seeks to maintain its status as a well-capitalized institution, meeting regulatory capital requirements as of September 30, 2025[227] - The Company maintains additional liquidity sources, including $77.0 million from correspondent banks and $23.4 million from the Federal Reserve Bank's Discount Window, totaling $853.3 million in available liquidity[225][227] - The Company has $40.0 million in outstanding borrowings from the Federal Home Loan Bank (FHLB) and an available capacity of approximately $712.9 million[224] - As of September 30, 2025, the Company had $649.6 million in certificates of deposit due within one year, representing 93.5% of total certificates of deposit and 24.4% of total deposits[223] Interest Rates and Economic Sensitivity - The Company is prepared to adjust interest rates to attract and retain deposits, which are its primary source of funds[223] - A 25% increase in the projected U.S. civilian unemployment rate could raise the allowance for credit losses by approximately $5.7 million, or 22.6%, to $31.1 million[230] - Conversely, a 25% decrease in the projected U.S. civilian unemployment rate could lower the allowance for credit losses by approximately $4.0 million, or 15.6%, to $21.4 million[231]

Core Insights - LINKBANCORP, Inc. reported quarterly earnings of $0.21 per share, matching the Zacks Consensus Estimate and showing an increase from $0.19 per share a year ago [1] - The company posted revenues of $29.19 million for the quarter ended September 2025, which was 0.68% below the Zacks Consensus Estimate, but an increase from $27.66 million year-over-year [2] - LINKBANCORP shares have declined approximately 6.4% year-to-date, contrasting with the S&P 500's gain of 15.5% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.22 on revenues of $30.16 million, and for the current fiscal year, it is $0.84 on revenues of $115.43 million [7] Industry Context - The Banks - Northeast industry, to which LINKBANCORP belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q3 2025 was $7.8 million, or $0.21 per diluted share, up from $7.4 million, or $0.20 per diluted share in Q2 2025[1] - Adjusted pre-tax pre-provision net income increased to $11.0 million in Q3 2025, a 12.07% increase from $9.8 million in Q2 2025[5] - Net income for the three months ended September 30, 2025, was $7,839,000, compared to $7,095,000 for the same period in 2024, marking an increase of 10.5%[30] - Earnings per share (diluted) for the three months ended September 30, 2025, was $0.21, compared to $0.19 for the same period in 2024, reflecting a growth of 10.5%[30] - Net income for the three months ended September 30, 2025, was $7,839,000, an increase from $7,095,000 in the same period last year, representing a growth of 10.5%[32] - Net income for the three months ended September 30, 2025, was $7,839,000, compared to $7,387,000 for the previous quarter, reflecting a 6.1% increase[56] Asset and Deposit Growth - Total deposits rose to $2.67 billion, reflecting an 8.62% increase from $2.46 billion in Q2 2025, and an annualized growth of 34.19%[5] - Total deposits reached $2,668,099,000 as of September 30, 2025, up from $2,456,409,000 a year earlier, indicating a growth of approximately 8.6%[28] - Total cash equivalents and investments increased to $396,212,000, generating interest income of $4,345,000 at a yield of 4.35%[40] - Core deposits, excluding brokered deposits, totaled $2,593,099 as of September 30, 2025, compared to $2,350,521 on December 31, 2024, indicating a growth rate of 10.3%[53] - The total core deposit growth calculation, excluding branch sales, showed a quarterly deposit growth of $329,664,000[53] Loan Performance - Total loans reached $2.46 billion, a quarterly increase of $100.4 million or 16.90% annualized from $2.36 billion in Q2 2025[8] - Total loans receivable as of September 30, 2025, amounted to $2,456,977,000, reflecting a year-to-date increase of $109,421,000[44] - Loan growth excluding branch sale for the year was $207,373,000, resulting in an annualized growth rate of 11.81%[45] - Loans receivable, net, rose to $2,431,635,000, up from $2,189,326,000 year-over-year, reflecting an increase of 11.1%[32] Efficiency and Expenses - Noninterest expense for Q3 2025 was $18.2 million, with an efficiency ratio of 62.25%, improving from 64.79% in Q2 2025[8] - Total noninterest expense for the three months ended September 30, 2025, was $18,171,000, slightly lower than $18,452,000 for the same period in 2024[30] - The efficiency ratio improved to 62.25% for the three months ended September 30, 2025, down from 66.71% in the same quarter last year, indicating enhanced operational efficiency[32] - GAAP-based efficiency ratio improved to 62.25% for the three months ended September 30, 2025, down from 64.79% in the previous quarter[58] Capital and Equity - The Bank's Total Capital Ratio was 12.31% as of September 30, 2025, compared to 12.43% at June 30, 2025, remaining well above regulatory minimums[22] - The total shareholders' equity increased to $305,457,000 as of September 30, 2025, from $277,353,000 a year earlier, reflecting a growth of approximately 10.1%[28] - Tangible common equity as of September 30, 2025, was $230,244,000, an increase from $221,702,000 as of June 30, 2025[57] - Book value per common share increased to $8.16 as of September 30, 2025, compared to $7.96 as of June 30, 2025[57] Credit Quality - The allowance for credit losses for loans was $25.3 million, or 1.03% of total loans, compared to 1.05% in Q2 2025[20] - The Company recorded a $1.0 million provision for credit losses in Q3 2025, up from $344 thousand in Q2 2025, primarily due to commercial loan growth[17] - The provision for credit losses for the three months ended September 30, 2025, was $1,003,000, compared to $84,000 for the same period in 2024, indicating a significant increase in provisions[30] - Non-performing assets totaled $24,627,000, representing 0.79% of total assets, compared to 0.91% a year earlier, indicating improved asset quality[32] Interest Income and Margin - Net interest income after provision for credit losses for the three months ended September 30, 2025, was $25,383,000, up from $24,897,000 for the same period in 2024, representing an increase of 1.9%[30] - Net interest income for the same period was $26,386,000, up from $24,981,000 year-over-year, reflecting a 5.6% increase[32] - Net interest margin for the three months ended September 30, 2025, was 3.75%, slightly down from 3.80% in the previous quarter[40] - Average balance of total loans for the nine months ended September 30, 2025, was $2,360,524,000, with an interest yield of 6.28%[42] Adjusted Metrics - Adjusted return on average shareholders' equity (annualized) for the three months ended September 30, 2025, was 10.33%, up from 10.04% in the previous quarter[56] - Adjusted pre-tax, pre-provision net income for the nine months ended September 30, 2025, was $30,102,000, compared to $24,869,000 for the same period last year, representing a 21.3% increase[59] - Adjusted earnings per share (diluted) for the three months ended September 30, 2025, was $0.21, consistent with the previous quarter[60] - Adjusted revenue (Non-GAAP) for the three months ended September 30, 2025, was $29,191,000, compared to $27,882,000 in the previous quarter[58]

Core Financial Performance - LINKBANCORP, Inc. reported net income of $7.8 million, or $0.21 per diluted share, for Q3 2025, an increase from $7.4 million, or $0.20 per diluted share, in Q2 2025 [1][14] - Net interest income before provision for credit losses was $26.4 million in Q3 2025, up from $24.9 million in Q2 2025 [4][14] - Noninterest income slightly decreased to $2.8 million in Q3 2025 from $2.9 million in Q2 2025, but increased year-over-year from $2.7 million in Q3 2024 [5][14] Balance Sheet Highlights - Total assets reached $3.12 billion as of September 30, 2025, compared to $2.89 billion at June 30, 2025 [9][25] - Total deposits increased to $2.67 billion, representing a quarterly increase of $211.7 million or 34.19% annualized [10][14] - Total loans amounted to $2.46 billion, reflecting a quarterly increase of $100.4 million or 16.90% annualized [10][14] Capital and Equity - Shareholders' equity rose to $305.5 million at September 30, 2025, primarily due to a $5.1 million increase in retained earnings [12][25] - Book value per share increased to $8.16, and tangible book value per share rose to $6.15, marking a year-over-year growth of 16.92% [12][14] Asset Quality and Credit Losses - The company recorded a provision for credit losses of $1.0 million in Q3 2025, up from $344 thousand in Q2 2025, primarily due to commercial loan growth [15][18] - Non-performing assets slightly increased to $24.6 million, representing 0.79% of total assets, compared to $21.9 million or 0.76% of total assets in Q2 2025 [16][25] - The allowance for credit losses for loans was $25.3 million, or 1.03% of total loans held for investment [17][25] Efficiency and Expense Management - Noninterest expense for Q3 2025 was $18.2 million, a slight increase from $18.1 million in Q2 2025, with an efficiency ratio of 62.25% [6][14] - The company maintained disciplined expense management, with a decrease in the efficiency ratio from 64.79% in Q2 2025 [14][24]

THIRD QUARTER 2025 October 2025 Nasdaq: LNKB ir.linkbancorp.com IMPORTANT INFORMATION / DISCLAIMERS LINKBANCORP, Inc. (Nasdaq: LNKB) ("LINKBANCORP" or the "Company") is the parent company of LINKBANK (the "Bank"). 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 ...

Financial Performance - Net income for the three months ended June 30, 2025, was $7.4 million, a $1.6 million increase from the same period in 2024, with diluted earnings per share at $0.20 compared to $0.16 in 2024[167]. - Net income for the six months ended June 30, 2025, was $22.7 million, or $0.61 per diluted share, an increase of $11.2 million compared to net income of $11.5 million, or $0.31 per diluted share, for the same period in 2024[205]. - The increase in net income was driven by a $1.1 million increase in noninterest income and a $588 thousand decrease in interest expense[192]. - The increase in net income for the six months ended June 30, 2025, was primarily due to an increase in noninterest income of $12.6 million and an increase in interest and dividend income of $1.2 million[206]. Assets and Loans - Total assets increased to $2.89 billion as of June 30, 2025, up $7.8 million or 0.27% from $2.88 billion at December 31, 2024, primarily due to a $102.6 million increase in net loans receivable[168]. - Net loans receivable increased by $102.6 million or 4.60% from December 31, 2024, totaling $2.33 billion at June 30, 2025[171]. - Total loans reached $2.34 billion for the six months ended June 30, 2025, with a yield of 6.30%[209]. - Average balance of loans increased by $76.8 million to $2.34 billion for the six months ended June 30, 2025, contributing $2.2 million to the increase in interest income[212]. Income and Expenses - Net interest income before provision for credit losses increased by $465 thousand or 1.90% for the three months ended June 30, 2025, with a net interest margin of 3.80%, a decrease of three basis points from the same period in 2024[167]. - Non-interest income increased by $1.1 million to $2.9 million for the three months ended June 30, 2025, from $1.9 million recognized during the same period in 2024[202]. - Non-interest income increased by $12.6 million to $16.2 million for the six months ended June 30, 2025, primarily due to a gain on the New Jersey Branch Sale of $11.1 million[216]. - Non-interest expense decreased by $835 thousand, or 4.42%, to $18.1 million for the three months ended June 30, 2025, from $18.9 million for the same period in 2024[203]. - Non-interest expense decreased by $427 thousand, or 1.12%, to $37.7 million for the six months ended June 30, 2025, from $38.2 million for the same period in 2024[217]. Deposits and Equity - The company experienced a net increase in deposits of $88.8 million during the reporting period[172]. - Total deposits grew by $95.8 million, or 4.1%, to $2.46 billion at June 30, 2025, from $2.36 billion at December 31, 2024[180]. - Total shareholders' equity increased by $17.8 million, or 6.34%, to $298.0 million at June 30, 2025, primarily due to net income of $22.7 million for the first six months[190]. - Demand deposits increased by $38.9 million, primarily due to new accounts opened, contributing approximately $70.0 million to the total balance[181]. Credit Losses and Risk - The allowance for credit losses on loans decreased by $1.8 million from $26.4 million at December 31, 2024, to $24.7 million at June 30, 2025, representing 1.05% of total gross loans[175]. - Provision for credit losses was $344 thousand for the three months ended June 30, 2025, compared to a provision of $0 for the same period in 2024[200]. - Provision for credit losses was $572 thousand for the six months ended June 30, 2025, compared to $40 thousand for the same period in 2024, reflecting an increase in forecasted losses on loans[214]. - Non-performing loans increased to $21.9 million, or 0.93% of total gross loans, compared to $17.2 million, or 0.76% at December 31, 2024[176]. Liquidity and Capital - Total available liquidity as of June 30, 2025, is $855.9 million, with $40.0 million outstanding[224]. - The Company has estimated deposits exceeding the FDIC insurance limit of $250,000 at $893.8 million, or 36.4% of total deposits as of June 30, 2025[183]. - The Company maintains a well-capitalized status in accordance with regulatory standards as of June 30, 2025[224]. - The Company has access to an additional $77.0 million in liquidity through lines of credit with multiple financial institutions[222].

Core Viewpoint - LINKBANCORP, Inc. reported quarterly earnings of $0.2 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.17 per share a year ago [1] - The company posted revenues of $27.88 million for the quarter ended June 2025, which was 3.46% below the Zacks Consensus Estimate, but an increase from $26.34 million year-over-year [2] Financial Performance - Earnings per share (EPS) for LINKBANCORP, Inc. were $0.2, consistent with expectations, and the company has surpassed consensus EPS estimates only once in the last four quarters [1][6] - The revenue of $27.88 million missed the consensus estimate, but the company has exceeded revenue estimates twice in the last four quarters [2] Market Performance - LINKBANCORP, Inc. shares have declined approximately 1.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $29.87 million, and for the current fiscal year, it is $0.84 on revenues of $117.28 million [7] - The outlook for the industry, particularly the Banks - Northeast sector, is favorable, ranking in the top 15% of over 250 Zacks industries, which historically outperforms the bottom 50% by more than 2 to 1 [8]

Financial Performance - Net income for Q2 2025 was $7.4 million, or $0.20 per diluted share, down from $15.3 million, or $0.41 per diluted share in Q1 2025[1] - The company reported a net income of $4,600,000 for the quarter ended June 30, 2025, compared to $3,800,000 for the same period last year, representing an increase of approximately 21.1%[31] - Net income for the three months ended June 30, 2025, was $7,387,000, compared to $5,804,000 for the same period in 2024, representing a 27.2% increase[34] - Basic earnings per share for the three months ended June 30, 2025, was $0.20, up from $0.16 for the same period in 2024, marking a 25% increase[34] - Adjusted net income (Non-GAAP) for the six months ended June 30, 2025, was $14,800,000, with an adjusted return on average shareholders' equity of 10.31%[59] Loan and Deposit Growth - Total loans increased to $2.36 billion, a quarterly increase of $82.7 million or 14.58% annualized, and a year-to-date increase of $107.0 million or 9.19% annualized[5] - Total deposits rose to $2.46 billion, reflecting a quarterly increase of $22.7 million or 3.74% annualized, and a year-to-date increase of $89.4 million or 7.34% annualized[15] - For the three months ended June 30, 2025, total loans amounted to $2,324,897 thousand, generating interest income of $36,032 thousand with a yield of 6.22%[40] - Total deposits increased to $2,456,409,000 as of June 30, 2025, from $2,360,582,000 in 2024[52] - Quarterly deposit growth excluding branch sale was $89,359,000, with an annualized growth rate of 7.34%[56] Asset Quality and Efficiency - Non-performing assets decreased by $4.2 million to $21.9 million, representing 0.76% of total assets, down from 0.91% in Q1 2025[19] - The efficiency ratio improved to 64.73% in Q2 2025, compared to 66.96% in Q1 2025[6] - The efficiency ratio for the three months ended June 30, 2025, was 64.79%, compared to 71.75% for the same period in 2024, reflecting improved operational efficiency[34] - GAAP-based efficiency ratio for the three months ended June 30, 2025, is 64.79%, compared to 71.75% for the same period last year[61] - Efficiency ratio, as adjusted (Non-GAAP) for the three months ended June 30, 2025, is 64.73%, down from 69.36% in the same period last year[61] Capital and Shareholder Equity - Shareholders' equity increased to $298.0 million, with book value per share rising to $7.96[17] - Shareholders' equity stood at $297,998,000 as of June 30, 2025, compared to $294,066,000 as of March 31, 2025, marking an increase of about 1.0%[30] - Total shareholders' equity reached $297,998,000 as of June 30, 2025, compared to $271,409,000 a year earlier, showing an increase of 9.8%[62] - Tangible common equity (Non-GAAP) increased to $221,702,000 as of June 30, 2025, from $189,280,000 a year earlier, reflecting a growth of 17%[62] Income and Expense Analysis - Noninterest income decreased to $2.9 million in Q2 2025, down from $13.3 million in Q1 2025, primarily due to a one-time gain from the Branch Sale[8] - Total non-interest expense for the three months ended June 30, 2025, was $18,065,000, compared to $18,900,000 for the same period in 2024, showing a decrease of 4.4%[34] - Total noninterest expense for the six months ended June 30, 2025, is $37,723,000, slightly down from $38,150,000 in the same period last year[61] Future Outlook and Strategic Initiatives - The company anticipates continued growth in loan demand and expects to maintain a strong capital position despite economic uncertainties[29] - The company is focusing on expanding its market presence through strategic partnerships and potential acquisitions in the upcoming quarters[29] - New product offerings are expected to be launched in the next fiscal year, aimed at enhancing customer engagement and driving revenue growth[29] - The company is committed to investing in technology to improve operational efficiency and customer service capabilities[29]

Core Financial Performance - LINKBANCORP, Inc. reported net income of $7.4 million, or $0.20 per diluted share, for Q2 2025, down from $15.3 million, or $0.41 per diluted share, in Q1 2025 [1][28] - Adjusted earnings remained stable at $7.4 million, or $0.201 per diluted share, for both Q1 and Q2 2025 [1][28] - Net interest income before provision for credit losses was $24.9 million in Q2 2025, compared to $25.8 million in Q1 2025 [5][28] Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.075 per share, expected to be paid on September 15, 2025 [2] Income Statement Highlights - Noninterest income decreased to $2.9 million in Q2 2025 from $13.3 million in Q1 2025, primarily due to a $11.1 million pre-tax gain from a branch sale in Q1 2025 [6][28] - Noninterest expense for Q2 2025 was $18.1 million, down from $19.7 million in Q1 2025 [7][28] - Income tax expense was $2.1 million for Q2 2025, with an effective tax rate of 22.0% [8][28] Balance Sheet Overview - Total assets increased to $2.89 billion as of June 30, 2025, from $2.86 billion at March 31, 2025 [10][28] - Total deposits were $2.46 billion, up from $2.43 billion at March 31, 2025 [13][28] - Total loans increased to $2.36 billion, representing a quarterly increase of $82.7 million [11][28] Asset Quality - Non-performing assets declined by $4.2 million to $21.9 million, representing 0.76% of total assets [18][28] - The allowance for credit losses for loans was $24.7 million, or 1.05% of total loans held for investment [20][28] - Net charge-offs improved to $40 thousand in Q2 2025, down from $81 thousand in Q1 2025 [21][28] Capital Ratios - The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 12.43% and 11.51%, respectively, as of June 30, 2025 [22][28] - Shareholders' equity increased to $298.0 million, with a book value per share of $7.96 [15][28]

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. Financial data for the mos ...