LINKBANCORP(LNKB) - 2024 Q1 - Quarterly Results

Financial Performance - Net income for the first quarter of 2024 was $5.73 million, or $0.15 per diluted share, with adjusted earnings of $5.77 million, or $0.16 per diluted share[1] - Net income for the first quarter of 2024 was $5,726,000, a significant recovery from a net loss of $12,997,000 in the previous quarter[28] - Earnings per share (basic) for Q1 2024 was $0.15, compared to a loss of $0.56 per share in Q4 2023[28] - Net income for the three months ended March 31, 2024, was $5,726,000, a significant improvement from a net loss of $12,997,000 in the previous quarter and a loss of $1,553,000 in the same period last year[30] - Adjusted earnings per share (basic) for Q1 2024 was $0.16, compared to $0.09 in Q4 2023[52] Income and Expenses - Net interest income before provision increased to $24.9 million, up from $14.3 million in the fourth quarter of 2023, with a net interest margin growth from 3.55% to 4.03%[4] - Noninterest income increased to $1.7 million for the first quarter of 2024, compared to $1.2 million in the fourth quarter of 2023[8] - Noninterest expense decreased to $19.3 million from $22.3 million in the fourth quarter of 2023, excluding one-time merger charges[9] - Total noninterest expense decreased to $19,250,000 in Q1 2024 from $22,285,000 in Q4 2023, a reduction of 13.7%[28] - Adjusted pre-tax, pre-provision net income for Q1 2024 was $7,419 thousand, up from $2,702 thousand in Q4 2023[53] Asset and Liability Management - Total assets increased to $2,784,264,000 as of March 31, 2024, up from $2,669,325,000 at December 31, 2023, representing a growth of approximately 4.3%[26] - Total deposits rose to $2.39 billion at March 31, 2024, an increase of $87.6 million from $2.30 billion at December 31, 2023[14] - Total loans increased slightly to $2.25 billion at March 31, 2024, compared to $2.24 billion at December 31, 2023[12] - Loans receivable, gross, increased to $2,245,817,000 as of March 31, 2024, compared to $2,241,533,000 at December 31, 2023, showing a slight growth of 0.2%[26] - Total assets rose to $2,784,264,000, up from $2,669,325,000 in the previous quarter and significantly higher than $1,213,958,000 a year ago[30] Credit Quality - Non-performing assets were $6.7 million, representing 0.25% of total assets, down from $7.3 million or 0.27% at December 31, 2023[17] - The allowance for credit losses-loans was $23.8 million, or 1.06% of total loans, unchanged from December 31, 2023[18] - The company reported a provision for credit losses of $40,000 for Q1 2024, significantly lower than $9,844,000 in the previous quarter, indicating improved credit quality[28] - Non-performing assets decreased to $6,675,000, down from $7,250,000 in the previous quarter, reflecting improved asset quality[30] Capital and Equity - Shareholders' equity increased to $268.2 million at March 31, 2024, with book value per share rising to $7.18[15] - The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 11.04% and 10.24%, respectively, as of March 31, 2024[19] - Tangible common equity rose to $186,749 thousand in Q1 2024, compared to $183,095 thousand in Q4 2023[51] - The tangible book value per share increased to $5.00, up from $4.90 in the previous quarter, reflecting growth in shareholder equity[30] Efficiency and Profitability - The efficiency ratio improved to 72.33%, down from 143.86% in the previous quarter, indicating better cost management[30] - The annualized return on assets (ROA) was 0.86%, a recovery from -2.96% in the previous quarter, demonstrating improved operational efficiency[30] - The annualized return on equity (ROE) was 8.63%, a significant recovery from -28.24% in the previous quarter, indicating strong shareholder returns[30] - GAAP-based efficiency ratio improved to 72.33% in Q1 2024, compared to 143.86% in Q4 2023[50] Market and Investment - Interest-earning assets totaled $2,481,014, with a yield of 6.30%, compared to $1,601,602 and a yield of 5.74% in the previous quarter[38] - The company experienced an increase in commercial and industrial loans to $218,724, compared to $238,343 in the previous quarter, a decrease of 8.2%[40] - The unrealized losses on available-for-sale securities amounted to $6,493, with a fair value of $133,949 as of March 31, 2024[42]