LINKBANCORP(US:LNKB)2025-08-08 20:32Financial 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].