LINKBANCORP(US:LNKB)2025-07-28 20:34Financial 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]