LINKBANCORP(US:LNKB)2025-11-07 21:32Financial Performance - Net income for the three months ended September 30, 2025, was $7.8 million, a $744 thousand increase from the same period in 2024, with diluted earnings per share rising to $0.21 from $0.19[168] - For the nine months ended September 30, 2025, net income reached $30.6 million, an increase of $11.9 million compared to the same period in 2024, with diluted earnings per share increasing to $0.82 from $0.50[168] - Net income for the nine months ended September 30, 2025, was $30.6 million, or $0.82 per diluted share, an increase of $11.9 million compared to $18.7 million, or $0.50 per diluted share, for the same period in 2024[206] - The increase in net income for the nine months ended September 30, 2025, was primarily due to an increase in noninterest income of $12.7 million and an increase in interest and dividend income of $3.1 million[207] Assets and Loans - Total assets increased to $3.12 billion as of September 30, 2025, reflecting an increase of $243.6 million or 8.46% from $2.88 billion at December 31, 2024[170] - Net loans receivable rose by $202.3 million, from $2.23 billion at December 31, 2024, to $2.43 billion at September 30, 2025[170] - Total loans increased to $2.36 billion for the nine months ended September 30, 2025, up from $2.28 billion for the same period in 2024[210] Deposits and Equity - The total increase in deposits was $300.3 million, contributing to the overall growth in the company's financial position[172] - Total deposits grew by $307.5 million, or 13.0%, to $2.67 billion at September 30, 2025, from $2.36 billion at December 31, 2024[181] - Demand deposits increased by $133.8 million during the first nine months of 2025, primarily due to new accounts opened[182] - Total shareholders' equity increased by $25.2 million, or 9.0%, to $305.5 million at September 30, 2025, primarily due to net income of $30.6 million for the nine months ended September 30, 2025[191] Income and Expenses - Net interest income before provision for credit losses increased by $1.4 million or 5.62% for the three months ended September 30, 2025, compared to the same period in 2024[168] - Interest income increased by $1.8 million for the three months ended September 30, 2025, compared to the same period in 2024[193] - Non-interest income increased by $125 thousand to $2.8 million for the three months ended September 30, 2025, from $2.7 million in the same period of 2024[203] - Non-interest expense decreased by $281 thousand, or 1.52%, to $18.2 million for the three months ended September 30, 2025, from $18.5 million for the same period in 2024[204] - Non-interest income increased by $12.7 million to $19.0 million for the nine months ended September 30, 2025, primarily due to a gain on the New Jersey Branch Sale of $11.1 million[218] - Non-interest expense decreased by $707 thousand, or 1.25%, to $55.9 million for the nine months ended September 30, 2025, from $56.6 million for the same period in 2024[219] Credit Losses and Provisions - The allowance for credit losses on loans decreased by $1.1 million from $26.4 million at December 31, 2024, to $25.3 million at September 30, 2025, representing 1.03% of total gross loans[175] - Non-performing loans increased to $24.6 million, or 1.00% of total gross loans, compared to $17.2 million, or 0.76%, at December 31, 2024[176] - The provision for credit losses was $1.0 million for the three months ended September 30, 2025, compared to $84 thousand for the same period in 2024, reflecting an increase in forecasted losses[201] - Provision for credit losses was $1.6 million for the nine months ended September 30, 2025, compared to $125 thousand for the same period in 2024, reflecting an increase in forecasted losses[216] - The allowance for credit losses is estimated at $25.4 million as of September 30, 2025, with potential adjustments based on economic conditions affecting U.S. GDP and unemployment rates[230][231] Liquidity and Capital - The Company actively seeks to maintain its status as a well-capitalized institution, meeting regulatory capital requirements as of September 30, 2025[227] - The Company maintains additional liquidity sources, including $77.0 million from correspondent banks and $23.4 million from the Federal Reserve Bank's Discount Window, totaling $853.3 million in available liquidity[225][227] - The Company has $40.0 million in outstanding borrowings from the Federal Home Loan Bank (FHLB) and an available capacity of approximately $712.9 million[224] - As of September 30, 2025, the Company had $649.6 million in certificates of deposit due within one year, representing 93.5% of total certificates of deposit and 24.4% of total deposits[223] Interest Rates and Economic Sensitivity - The Company is prepared to adjust interest rates to attract and retain deposits, which are its primary source of funds[223] - A 25% increase in the projected U.S. civilian unemployment rate could raise the allowance for credit losses by approximately $5.7 million, or 22.6%, to $31.1 million[230] - Conversely, a 25% decrease in the projected U.S. civilian unemployment rate could lower the allowance for credit losses by approximately $4.0 million, or 15.6%, to $21.4 million[231]