LINKBANCORP(LNKB) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $7.8 million, or $0.21 per diluted share, up from $7.4 million, or $0.20 per diluted share in Q2 2025[1] - Adjusted pre-tax pre-provision net income increased to $11.0 million in Q3 2025, a 12.07% increase from $9.8 million in Q2 2025[5] - Net income for the three months ended September 30, 2025, was $7,839,000, compared to $7,095,000 for the same period in 2024, marking an increase of 10.5%[30] - Earnings per share (diluted) for the three months ended September 30, 2025, was $0.21, compared to $0.19 for the same period in 2024, reflecting a growth of 10.5%[30] - Net income for the three months ended September 30, 2025, was $7,839,000, an increase from $7,095,000 in the same period last year, representing a growth of 10.5%[32] - Net income for the three months ended September 30, 2025, was $7,839,000, compared to $7,387,000 for the previous quarter, reflecting a 6.1% increase[56] Asset and Deposit Growth - Total deposits rose to $2.67 billion, reflecting an 8.62% increase from $2.46 billion in Q2 2025, and an annualized growth of 34.19%[5] - Total deposits reached $2,668,099,000 as of September 30, 2025, up from $2,456,409,000 a year earlier, indicating a growth of approximately 8.6%[28] - Total cash equivalents and investments increased to $396,212,000, generating interest income of $4,345,000 at a yield of 4.35%[40] - Core deposits, excluding brokered deposits, totaled $2,593,099 as of September 30, 2025, compared to $2,350,521 on December 31, 2024, indicating a growth rate of 10.3%[53] - The total core deposit growth calculation, excluding branch sales, showed a quarterly deposit growth of $329,664,000[53] Loan Performance - Total loans reached $2.46 billion, a quarterly increase of $100.4 million or 16.90% annualized from $2.36 billion in Q2 2025[8] - Total loans receivable as of September 30, 2025, amounted to $2,456,977,000, reflecting a year-to-date increase of $109,421,000[44] - Loan growth excluding branch sale for the year was $207,373,000, resulting in an annualized growth rate of 11.81%[45] - Loans receivable, net, rose to $2,431,635,000, up from $2,189,326,000 year-over-year, reflecting an increase of 11.1%[32] Efficiency and Expenses - Noninterest expense for Q3 2025 was $18.2 million, with an efficiency ratio of 62.25%, improving from 64.79% in Q2 2025[8] - Total noninterest expense for the three months ended September 30, 2025, was $18,171,000, slightly lower than $18,452,000 for the same period in 2024[30] - The efficiency ratio improved to 62.25% for the three months ended September 30, 2025, down from 66.71% in the same quarter last year, indicating enhanced operational efficiency[32] - GAAP-based efficiency ratio improved to 62.25% for the three months ended September 30, 2025, down from 64.79% in the previous quarter[58] Capital and Equity - The Bank's Total Capital Ratio was 12.31% as of September 30, 2025, compared to 12.43% at June 30, 2025, remaining well above regulatory minimums[22] - The total shareholders' equity increased to $305,457,000 as of September 30, 2025, from $277,353,000 a year earlier, reflecting a growth of approximately 10.1%[28] - Tangible common equity as of September 30, 2025, was $230,244,000, an increase from $221,702,000 as of June 30, 2025[57] - Book value per common share increased to $8.16 as of September 30, 2025, compared to $7.96 as of June 30, 2025[57] Credit Quality - The allowance for credit losses for loans was $25.3 million, or 1.03% of total loans, compared to 1.05% in Q2 2025[20] - The Company recorded a $1.0 million provision for credit losses in Q3 2025, up from $344 thousand in Q2 2025, primarily due to commercial loan growth[17] - The provision for credit losses for the three months ended September 30, 2025, was $1,003,000, compared to $84,000 for the same period in 2024, indicating a significant increase in provisions[30] - Non-performing assets totaled $24,627,000, representing 0.79% of total assets, compared to 0.91% a year earlier, indicating improved asset quality[32] Interest Income and Margin - Net interest income after provision for credit losses for the three months ended September 30, 2025, was $25,383,000, up from $24,897,000 for the same period in 2024, representing an increase of 1.9%[30] - Net interest income for the same period was $26,386,000, up from $24,981,000 year-over-year, reflecting a 5.6% increase[32] - Net interest margin for the three months ended September 30, 2025, was 3.75%, slightly down from 3.80% in the previous quarter[40] - Average balance of total loans for the nine months ended September 30, 2025, was $2,360,524,000, with an interest yield of 6.28%[42] Adjusted Metrics - Adjusted return on average shareholders' equity (annualized) for the three months ended September 30, 2025, was 10.33%, up from 10.04% in the previous quarter[56] - Adjusted pre-tax, pre-provision net income for the nine months ended September 30, 2025, was $30,102,000, compared to $24,869,000 for the same period last year, representing a 21.3% increase[59] - Adjusted earnings per share (diluted) for the three months ended September 30, 2025, was $0.21, consistent with the previous quarter[60] - Adjusted revenue (Non-GAAP) for the three months ended September 30, 2025, was $29,191,000, compared to $27,882,000 in the previous quarter[58]