LINKBANCORP(LNKB) - 2025 Q1 - Quarterly Results

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]