LINKBANCORP, Inc. Announces Second Quarter 2024 Earnings

Core Insights - The company reported a total loan increase of $63.6 million, or 11.4% annualized, from $2.25 billion at March 31, 2024, to $2.31 billion at June 30, 2024, driven by strong growth in commercial and industrial loans [1] - Total deposits rose by $71.3 million, or 12.0% annualized, from $2.39 billion at March 31, 2024, to $2.46 billion at June 30, 2024, with significant growth in noninterest-bearing demand accounts [1] - Noninterest expense decreased by $350 thousand quarter-over-quarter to $18.9 million in Q2 2024, with adjusted noninterest expense at $18.3 million, a decrease of $925 thousand compared to Q1 2024 [1] - Net interest income before provision for credit losses was $24.5 million for Q2 2024, slightly down from $24.9 million in Q1 2024, with a net interest margin of 3.83% compared to 4.03% in Q1 2024 [1][13] - Non-performing assets increased to $10.6 million, or 0.37% of total assets, at June 30, 2024, up from $6.7 million, or 0.24% of total assets, at March 31, 2024 [1][14] - The company announced a definitive purchase and assumption agreement for the sale of its banking operations and three branches in New Jersey, expected to close in the second half of 2024 [1] Financial Performance - The company achieved a net income of $5.8 million for Q2 2024, compared to $5.7 million in Q1 2024, with earnings per share of $0.16 [12][16] - The annualized return on equity (ROE) was reported at 8.65% for Q2 2024, slightly up from 8.63% in Q1 2024 [5] - The efficiency ratio improved to 71.75% in Q2 2024 from 72.33% in Q1 2024, indicating better cost management [5] - Noninterest income increased to $1.9 million in Q2 2024 from $1.7 million in Q1 2024, driven by higher service charges on deposit accounts [13] Asset Quality - The allowance for credit losses on loans was $26.3 million, or 1.20% of total loans held for investment, at June 30, 2024, up from $23.8 million, or 1.06%, at March 31, 2024 [14] - Loans 30-89 days past due improved to $5.15 million, or 0.24% of total loans, at June 30, 2024, compared to $15.3 million, or 0.72%, at March 31, 2024 [14] Strategic Developments - The company completed the consolidation of three client solution centers during the quarter and remains focused on improving profitability and customer experience [1] - The reclassification of assets and liabilities related to the Branch Sale impacted the company's allowance for credit losses and purchase accounting amortization [1]