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 ...

Financial Performance - Net income for the three months ended March 31, 2025, was $15.3 million, a $9.6 million increase from the same period in 2024, with diluted earnings per share rising to $0.41 from $0.15 [156]. - The increase in net income was primarily due to an increase in other income of $11.5 million from the sale of New Jersey solutions centers [180]. - Net income for the three months ended March 31, 2025, was $15.3 million, or $0.41 per diluted share, an increase of $9.6 million compared to $5.7 million, or $0.15 per diluted share, for the same period in 2024 [179]. Asset and Liability Management - Total assets decreased by $17.3 million, or 0.60%, to $2.86 billion as of March 31, 2025, primarily due to the completion of the New Jersey Branch Sale [155]. - Total assets increased to $2.85 billion as of March 31, 2025, compared to $2.69 billion as of March 31, 2024 [186]. - Long-term borrowings consisted of $40 million in long-term FHLB advances as of March 31, 2025, with short-term FHLB advances at $0 [173]. - The company has estimated uninsured deposits of $840.6 million, or 34.5% of total deposits, as of March 31, 2025 [172]. - The company has $103.6 million in brokered deposits, which represent 24.8% of total deposits [198]. Loan and Deposit Growth - Total loans increased by $18.3 million, or 0.81%, to $2.27 billion as of March 31, 2025, with notable growth in commercial loans [160]. - Total deposits increased by $73.1 million, or 3.1%, to $2.43 billion at March 31, 2025, from $2.36 billion at December 31, 2024 [168]. - Demand deposits rose by $39.4 million, primarily due to new accounts, contributing approximately $22.2 million at March 31, 2025 [170]. - Commercial real estate loans increased by $16.8 million during the first three months of 2025, primarily due to new loan originations [161]. Income and Expense Analysis - Net interest income before provision for credit losses increased by $947 thousand, or 3.81%, for the three months ended March 31, 2025, with a net interest margin of 3.94% [156]. - Non-interest income increased by $11.5 million to $13.3 million for the three months ended March 31, 2025, primarily due to a gain on the sale of New Jersey solutions centers of $11.1 million [192]. - Non-interest expense rose by $408 thousand, or 2.1%, to $19.7 million for the three months ended March 31, 2025, compared to $19.3 million for the same period in 2024 [193]. - Interest expense increased by $420 thousand, or 3.0%, to $14.3 million for the three months ended March 31, 2025, compared to $13.9 million for the same period in 2024 [188]. Credit Quality and Allowance for Losses - The allowance for credit losses increased by $184 thousand to $26.6 million, driven by a provision for credit losses of $265 thousand during the three months ended March 31, 2025 [163]. - As of March 31, 2025, non-performing loans totaled $26.0 million, representing 1.15% of total gross loans, up from $17.2 million or 0.76% at December 31, 2024 [164]. - The allowance for credit losses for loans was $26.6 million at March 31, 2025, maintaining 1.17% of total gross loans, compared to $26.4 million at December 31, 2024 [164]. - The allowance for credit losses as of March 31, 2025, is estimated at $30.3 million, which could increase by approximately $3.7 million or 13.9% under adverse economic conditions [205]. - An immediate increase of 25% in the projected U.S. civilian unemployment rate could lead to a significant increase in the allowance for credit losses [205]. Regulatory Compliance and Capital Position - The company met the capital requirements to be considered "well capitalized" as of March 31, 2025, and December 31, 2024 [201]. - Non-owner-occupied commercial real estate loans represented 331.85% of total risk-based capital at March 31, 2025, down from 365.65% at December 31, 2024 [166]. - The effective tax rate for the three months ended March 31, 2025, was 20.1%, compared to 21.8% for the same period in 2024 [194]. Liquidity Position - The company maintains additional liquidity sources, including $77.0 million from correspondent banks and $23.9 million from the Federal Reserve Bank's Discount Window, totaling $836.6 million in available liquidity [199][201]. - The company actively seeks to maintain its status as a sound and profitable financial institution in accordance with regulatory standards [201]. - Management's evaluation of the allowance for credit losses is based on historical experience and forecasts, which may be subject to significant change [203]. - The company has off-balance sheet arrangements that are detailed in the notes to the unaudited Consolidated Financial Statements [202].

Company Performance - LINKBANCORP, Inc. reported quarterly earnings of $0.20 per share, matching the Zacks Consensus Estimate, and an increase from $0.16 per share a year ago [1] - The company posted revenues of $39.09 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 36.86% and up from $26.61 million year-over-year [2] - LINKBANCORP has surpassed consensus revenue estimates two times over the last four quarters [2] Stock Movement and Outlook - LINKBANCORP shares have declined approximately 12.4% since the beginning of the year, compared to a 6.1% decline in the S&P 500 [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.20 for the upcoming quarter and $0.84 for the current fiscal year [4][7] - The current estimate revisions trend for LINKBANCORP is favorable, resulting in a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [6] Industry Context - The Banks - Northeast industry, to which LINKBANCORP belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a positive outlook for stocks in this sector [8]

Financial Performance - Record net income of $15.3 million, or $0.41 per diluted share, for Q1 2025, compared to $7.6 million, or $0.20 per diluted share, for Q4 2024[1] - Net income for Q1 2025 reached $15,343,000, significantly up from $7,584,000 in Q4 2024, representing an increase of 102.3%[29] - Net income for the three months ended March 31, 2025, was $15,343,000, a significant increase from $5,726,000 in the same period last year, representing a growth of 168%[31] - Adjusted Net Income (Non-GAAP) for Q1 2025 was $7,401,000, a slight decrease from $7,628,000 in Q4 2024 but an increase from $5,770,000 in Q1 2024[57] - Net Income (GAAP) for Q1 2025 reached $15,343,000, significantly higher than $7,584,000 in Q4 2024 and $5,726,000 in Q1 2024[57] Asset and Deposit Growth - Total deposits at March 31, 2025, were $2.43 billion, reflecting an increase of $66.6 million, or 11.01% annualized, after adjusting for the Branch Sale[5] - Total deposits as of March 31, 2025, were $2,433,694,000, an increase from $2,360,514,000 on December 31, 2024, marking a growth of 3.1%[27] - Total deposits increased to $2,433,694 as of March 31, 2025, compared to $2,360,582 on December 31, 2024[46] - Total cash equivalents increased by 32.6% to $220.2 million at March 31, 2025, compared to $166.1 million at December 31, 2024[15] - Total assets as of March 31, 2025, amounted to $2,863,396,000, a slight increase from $2,858,590,000 on December 31, 2024[27] Income and Expense Analysis - Noninterest income rose to $13.3 million in Q1 2025, primarily due to an $11.1 million pre-tax gain from the Branch Sale[8] - Total noninterest expense for Q1 2025 was $19,658,000, up from $18,302,000 in Q4 2024, reflecting an increase of 7.4%[29] - Noninterest income for Q1 2025 was $13,257,000, a substantial increase from $2,594,000 in Q4 2024, indicating a growth of 410.5%[29] Capital Ratios and Efficiency - The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 12.61% and 11.71%, respectively, at March 31, 2025, exceeding regulatory minimums[21] - The efficiency ratio improved to 50.29%, down from 72.33% in the same quarter last year, indicating better cost management[31] - The GAAP-based efficiency ratio improved to 50.29% for the three months ended March 31, 2025, down from 65.04% in the previous quarter[54] Loan and Credit Quality - The allowance for credit losses-loans was $26.6 million, or 1.17% of total loans held for investment, as of March 31, 2025[20] - Non-performing assets increased to $26,041,000, representing 0.91% of total assets, compared to 0.60% in the previous quarter[31] - The allowance for credit losses on loans (ACLL) was $26,619,000, maintaining a ratio of 1.17% to total loans, consistent with the previous quarter[31] Shareholder Metrics - Tangible book value per share increased by 8.2% to $5.801 at March 31, 2025, from $5.361 at December 31, 2024[5] - Book value per common share increased to $7.87 as of March 31, 2025, up from $7.50 on December 31, 2024[56] - Adjusted earnings per share (basic) for the three months ended March 31, 2025, was $0.20, compared to $0.21 in the previous quarter[55] Gains and Losses - Successful sale of New Jersey operations, transferring $87 million in deposits and $105 million in loans, resulting in an after-tax gain of $8.7 million[5] - The company reported a gain on the sale of branches amounting to $11,093,000 in Q1 2025, with no comparable figure in Q4 2024[29] - Gain on sale of branches was $(11,093,000) in Q1 2025, with no gains reported in the previous quarters[57]

Core Financial Performance - LINKBANCORP, Inc. reported record net income of $15.3 million, or $0.41 per diluted share, for Q1 2025, compared to $7.6 million, or $0.20 per diluted share, for Q4 2024 [1] - Adjusted earnings for Q1 2025 were $7.4 million, or $0.201 per diluted share, compared to $7.6 million, or $0.211 per diluted share, for Q4 2024 [1][4] - The Company declared a quarterly cash dividend of $0.075 per share, expected to be paid on June 16, 2025 [2] Income Statement Highlights - Net interest income before provision for credit losses was $25.8 million for Q1 2025, up from $25.5 million in Q4 2024 [6] - Net interest margin expanded to 3.94% in Q1 2025 from 3.85% in Q4 2024, driven by a 5 basis points increase in average yield on interest-earning assets [6] - Noninterest income increased to $13.3 million in Q1 2025, primarily due to an $11.1 million pre-tax gain from the Branch Sale [7] Expense and Taxation - Noninterest expense for Q1 2025 was $19.7 million, compared to $18.3 million in Q4 2024 [8] - Income tax expense was $3.9 million for Q1 2025, with an effective tax rate of 20.1%, down from 21.9% in Q4 2024 [9] Balance Sheet Overview - Total assets were $2.86 billion as of March 31, 2025, compared to $2.88 billion at December 31, 2024 [11] - Total deposits were $2.43 billion, an increase of $66.6 million, or 11.01% annualized, after adjusting for the Branch Sale [13][14] - Total loans were $2.27 billion, a decrease from $2.35 billion at December 31, 2024, representing a $24.0 million increase after adjusting for the Branch Sale [12] Branch Sale Impact - The successful sale of New Jersey operations included the transfer of three branch locations, $87 million of deposits, and $105 million in loans, resulting in an after-tax gain of $8.7 million [13] - The transaction was completed on March 31, 2025, and is expected to positively impact the Company's loan pipeline [5] Capital and Liquidity - Shareholders' equity increased to $294.1 million as of March 31, 2025, primarily due to a $12.6 million increase in retained earnings [16] - The Company's cash and cash equivalents increased by 32.6% to $220.2 million, enhancing its liquidity position [15] Asset Quality - Non-performing assets were $26.0 million, or 0.91% of total assets, compared to $17.2 million, or 0.60% of total assets at December 31, 2024 [18] - The allowance for credit losses was $26.6 million, or 1.17% of total loans held for investment [20]

Core Insights - LINKBANCORP, Inc. has successfully sold its New Jersey banking operations and three branches to American Heritage Federal Credit Union, effective March 31, 2025, involving approximately $87 million in deposits and $105 million in loans [1][2] - The sale was executed at a 7% premium for deposits and at par for loans, resulting in an estimated after-tax gain of approximately $8.5 million for the company [1] - This strategic move allows the company to reallocate capital to its core markets in Pennsylvania, Maryland, and Virginia, enhancing operational efficiencies [2] Financial Details - The transaction included the transfer of three branch locations, $87 million in deposits, and $105 million in loans [1] - The estimated after-tax gain from the transaction is approximately $8.5 million, net of transaction costs [1] Company Background - LINKBANCORP, Inc. was formed in 2018 and aims to positively impact lives through community banking, serving clients across Pennsylvania, Maryland, Delaware, and Virginia [4] - The subsidiary bank, LINKBANK, operates 24 client solutions centers and is traded on the Nasdaq Capital Market under the symbol "LNKB" [4]

Financial Performance - Net income for the year ended December 31, 2024, was $26.2 million, or $0.71 per diluted share, an increase of $38.2 million compared to a net loss of $12.0 million for the year ended December 31, 2023[266]. - Interest income increased to $158.7 million for the year ended December 31, 2024, compared to $65.2 million for the year ended December 31, 2023, primarily due to an increase in average loans and yields[273]. - Net interest income before provision for credit losses increased by $61.2 million, or 158.05%, to $99.9 million for the year ended December 31, 2024, compared to $38.7 million for the year ended December 31, 2023[272]. - Non-interest income increased by $7.8 million to $8.9 million in 2024, driven by a $3.1 million increase in service charges on deposit accounts due to the Partners Merger[278]. - Income tax expense for 2024 totaled $7.4 million compared to a benefit of $3.4 million in 2023, with an effective tax rate of 22.0%[280]. Asset and Loan Growth - Total assets increased by $209.5 million, or 7.8%, to $2.88 billion as of December 31, 2024, compared to $2.67 billion at December 31, 2023[235]. - Loans receivable rose by 6.0%, from $2.13 billion at December 31, 2023, to $2.26 billion at December 31, 2024[235]. - Net loans receivable increased by $124.8 million, or 5.93%, from $2.10 billion in 2023 to $2.23 billion in 2024[243]. - Commercial real estate loans grew by $114.5 million, or 9.51%, from $1.20 billion in 2023 to $1.32 billion in 2024[244]. - Multifamily loans increased by $35.0 million, contributing to a year-end balance of $211.8 million[244]. Deposit Activity - The Company experienced a net increase in deposits of $153.4 million during 2024[240]. - Total deposits grew by $161.8 million or 7.4%, from $2.20 billion at December 31, 2023 to $2.36 billion at December 31, 2024[254]. - Demand deposits, both interest-bearing and non-interest bearing, contributed to the increase in total deposits, with interest-bearing demand deposits rising by 23.4%[255]. - The average balance of total deposits increased from $1.09 billion in 2023 to $2.33 billion in 2024, with an average rate paid of 2.19%[259]. Credit Quality and Losses - The allowance for credit losses increased to $26.4 million, representing 1.17% of total loans[249]. - The ratio of non-accrual loans to total loans was 0.74% as of December 31, 2024, compared to 0.33% in 2023[249]. - Total non-accrual loans amounted to $16.7 million, or 0.74% of total loans[249]. - Total non-performing loans increased by $9.9 million, with non-performing loans as a percentage of total loans rising from 0.33% at December 31, 2023 to 0.76% at December 31, 2024[251]. - Provision for credit losses decreased by $9.0 million from $9.3 million in 2023 to $257 thousand in 2024, primarily due to no required provision for non-PCD loans acquired in the Partners Merger[276]. Mergers and Acquisitions - The Company completed the merger with Partners Bancorp on November 30, 2023, enhancing its market presence[221]. - The Company anticipates completing the New Jersey Branch Sale on March 31, 2025, subject to customary closing conditions[220]. - The increase in non-interest expenses included $4.1 million in amortization of intangible assets from the Partners Merger[279]. Interest Rates and Borrowings - The average corporate borrowing rate increased to around 7% by the end of 2024, up from a low of 2.3% in 2020[233]. - Long-term borrowings increased to $40.0 million in 2024, with a fixed interest rate of 4.827% maturing in February 2026[260]. - Subordinated debt with a carrying value of $21.9 million was assumed as part of the Partners Merger, with fixed rates ranging from 6.0% to 6.875%[262]. - The average yield of loans increased by 90 basis points from 5.48% for the year ended December 31, 2023, to 6.38% for the year ended December 31, 2024[273]. Market Conditions - Real GDP increased by 2.3% during 2024, with consumer spending contributing significantly to this growth[231]. - The S&P 500 finished 2024 up 23.3%, indicating a strong market performance despite economic uncertainties[231]. Liquidity Management - The Company aims to maintain sufficient liquidity to fund operations and meet loan demand, with liquidity management being a daily and long-term function[282]. - The Company had available borrowing capacity of approximately $723.8 million with the Federal Home Loan Bank as of December 31, 2024[287]. - The Company has total uninsured deposits of $807.5 million as of December 31, 2024, which includes $44.2 million of municipal deposits exceeding FDIC insurance limits[259]. Interest Expense - Interest expense increased by $32.3 million, or 122.11%, to $58.8 million for the year ended December 31, 2024, compared to $26.5 million for the year ended December 31, 2023[274]. - The increase in interest expense on time deposits was impacted by an increase in average interest rate paid, which increased 119 basis points from 3.29% for the year ended December 31, 2023, to 4.48% for the year ended December 31, 2024[275].