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].

Core Viewpoint - LINKBANCORP, Inc. has received all regulatory approvals to complete the sale of its New Jersey operations to American Heritage Federal Credit Union, with the transaction expected to close on March 31, 2025 [1][2]. Group 1: Transaction Details - The sale includes three branches, associated loans, deposits, and fixed assets acquired during LINKBANCORP's merger with Partners Bancorp in November 2023 [2]. - The transaction is subject to customary closing conditions [2]. Group 2: Company Overview - LINKBANCORP, Inc. was established in 2018, focusing on community banking to positively impact lives [3]. - Its subsidiary, LINKBANK, operates in Pennsylvania, Maryland, Delaware, Virginia, and New Jersey, with 27 client solutions centers [3]. - LINKBANCORP's common stock is traded on the Nasdaq Capital Market under the symbol "LNKB" [3].

Core Viewpoint - LINKBANCORP, Inc. reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and showing significant growth from $0.09 per share a year ago [1][2] Financial Performance - The company posted revenues of $28.14 million for the quarter ended December 2024, which was 1.34% below the Zacks Consensus Estimate, compared to $15.49 million in the same quarter last year [2] - Over the last four quarters, LINKBANCORP has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - LINKBANCORP shares have declined approximately 5% since the beginning of the year, while the S&P 500 has gained 3.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $28.08 million, and for the current fiscal year, it is $0.82 on revenues of $118.03 million [7] - The trend of estimate revisions for LINKBANCORP is mixed, which could change following the recent earnings report [6] Industry Context - The Banks - Northeast industry, to which LINKBANCORP belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of LINKBANCORP's stock may also be influenced by the overall outlook for the industry [8]

Financial Performance - Record net income of $7.6 million, or $0.20 per diluted share, for Q4 2024, up from $7.1 million, or $0.19 per diluted share, in Q3 2024[1] - Net income for the twelve months ended December 31, 2024, was $26,209,000, compared to a net loss of $11,968,000 for the previous year, indicating a significant turnaround[30] - Net income for the three months ended December 31, 2024, was $7,584,000, compared to a net loss of $12,997,000 for the same period in 2023[32] - Adjusted net income for the three months ended December 31, 2024, was $7,628,000, an increase from $7,230,000 in the previous quarter[56] Deposits and Assets - Total deposits increased by $161.8 million, or 7.36%, from $2.20 billion at December 31, 2023, to $2.36 billion at December 31, 2024[7] - Total deposits amounted to $2,360,582,000, a slight decrease from $2,372,652,000 in the previous quarter, reflecting a decrease of 0.5%[28] - Total assets remained stable at $2.88 billion as of December 31, 2024, compared to $2.88 billion at September 30, 2024[14] - Total assets reached $2,881,330,000 as of December 31, 2024, up from $2,669,325,000 a year earlier, indicating a growth of 7.9%[32] Interest Income and Margin - Net interest income before provision for credit losses for the three months ended December 31, 2024, was $25,545,000, up from $14,316,000 in the same period last year, representing an increase of 78.4%[30] - Net interest income increased to $25,545,000 for the three months ended December 31, 2024, from $14,316,000 in the same period last year, representing a growth of 78.4%[32] - Net interest margin expanded to 3.85% for Q4 2024, compared to 3.82% for Q3 2024, and increased 79 basis points year-over-year[7] - The net interest margin for the three months ended December 31, 2024, was 3.85%, compared to 3.55% in the same period last year[32] Expenses and Efficiency - Noninterest expense decreased by $150 thousand quarter-over-quarter to $18.3 million for Q4 2024, improving the efficiency ratio to 65.04%[7] - Total noninterest expense for the twelve months ended December 31, 2024, was $74,904,000, compared to $45,832,000 in the previous year, representing an increase of 63.5%[30] - The efficiency ratio improved to 65.04% for the three months ended December 31, 2024, down from 143.86% in the same period last year[32] - The GAAP-based efficiency ratio for the three months ended December 31, 2024, was 65.04%, compared to 66.71% for the previous quarter[55] Credit Quality - Non-performing assets were $17.2 million, representing 0.60% of total assets, as of December 31, 2024[19] - The allowance for credit losses-loans was $26.4 million, or 1.17% of total loans held for investment, as of December 31, 2024[21] - Provision for credit losses was $132,000 for the three months ended December 31, 2024, significantly lower than $9,844,000 in the same period last year, indicating improved credit quality[30] Shareholder Information - The Company declared a quarterly cash dividend of $0.075 per share, payable on March 14, 2025[2] - Common shares outstanding as of December 31, 2024, were 37,370,917, a slight increase from 37,340,700 a year earlier[28] - Adjusted earnings per share (diluted) for the three months ended December 31, 2024, was $0.21, up from $0.09 in the same period last year[32] - The tangible book value per common share (Non-GAAP) as of December 31, 2024, was $5.36, up from $5.26 in the previous quarter[57]

Core Points - LINKBANCORP, Inc. reported record net income of $7.6 million, or $0.20 per diluted share, for Q4 2024, an increase from $7.1 million, or $0.19 per diluted share, in Q3 2024 [1] - Adjusted earnings for Q4 2024 were $7.6 million, or $0.211 per diluted share, compared to $7.2 million, or $0.191 per diluted share, in Q3 2024 [1] - For the full year 2024, net income was $26.2 million, or $0.71 per diluted share, with adjusted net income of $26.91 million, or $0.731 per diluted share [1] Financial Performance - Net interest income before provision for credit losses for Q4 2024 was $25.5 million, up from $25.0 million in Q3 2024 [7] - Net interest margin expanded to 3.85% in Q4 2024 from 3.82% in Q3 2024, driven by a decrease in cost of funds to 2.32% [7] - Noninterest income slightly decreased to $2.6 million in Q4 2024 from $2.7 million in Q3 2024, with declines in swap fee income and gain on sale of loans [8] Expenses and Efficiency - Noninterest expense for Q4 2024 was $18.3 million, a slight decrease from $18.5 million in Q3 2024 [9] - Adjusted noninterest expense remained flat at $18.3 million for both Q3 and Q4 2024, with increases in salaries and employee benefits offset by decreases in professional fees [9] - The efficiency ratio improved to 65.04% in Q4 2024 from 66.71% in Q3 2024, reflecting ongoing cost-saving initiatives [14] Balance Sheet and Capital - Total assets were $2.88 billion as of December 31, 2024, unchanged from September 30, 2024, and up from $2.67 billion a year earlier [11] - Total deposits decreased to $2.36 billion at December 31, 2024, from $2.37 billion at September 30, 2024 [13] - Shareholders' equity increased to $280.2 million at December 31, 2024, primarily due to a $4.8 million increase in retained earnings [16] Asset Quality - The company recorded a provision for credit losses of $132 thousand in Q4 2024, compared to $84 thousand in Q3 2024 [18] - Non-performing assets were $17.2 million, representing 0.60% of total assets, consistent with the previous quarter [18] - The allowance for credit losses was $26.4 million, or 1.17% of total loans held for investment, slightly down from 1.20% in Q3 2024 [20] Capital Ratios - The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 11.55% and 10.74%, respectively, as of December 31, 2024, both above regulatory minimums [21] - Tangible common equity to tangible assets ratio was 7.16% at December 31, 2024 [21]