LINKBANCORP, Inc. Announces Record Fourth Quarter 2024 and Full Year 2024 Financial Results and Declares Dividend

Core Points - LINKBANCORP, Inc. reported record net income of $7.6 million, or $0.20 per diluted share, for Q4 2024, an increase from $7.1 million, or $0.19 per diluted share, in Q3 2024 [1] - Adjusted earnings for Q4 2024 were $7.6 million, or $0.211 per diluted share, compared to $7.2 million, or $0.191 per diluted share, in Q3 2024 [1] - For the full year 2024, net income was $26.2 million, or $0.71 per diluted share, with adjusted net income of $26.91 million, or $0.731 per diluted share [1] Financial Performance - Net interest income before provision for credit losses for Q4 2024 was $25.5 million, up from $25.0 million in Q3 2024 [7] - Net interest margin expanded to 3.85% in Q4 2024 from 3.82% in Q3 2024, driven by a decrease in cost of funds to 2.32% [7] - Noninterest income slightly decreased to $2.6 million in Q4 2024 from $2.7 million in Q3 2024, with declines in swap fee income and gain on sale of loans [8] Expenses and Efficiency - Noninterest expense for Q4 2024 was $18.3 million, a slight decrease from $18.5 million in Q3 2024 [9] - Adjusted noninterest expense remained flat at $18.3 million for both Q3 and Q4 2024, with increases in salaries and employee benefits offset by decreases in professional fees [9] - The efficiency ratio improved to 65.04% in Q4 2024 from 66.71% in Q3 2024, reflecting ongoing cost-saving initiatives [14] Balance Sheet and Capital - Total assets were $2.88 billion as of December 31, 2024, unchanged from September 30, 2024, and up from $2.67 billion a year earlier [11] - Total deposits decreased to $2.36 billion at December 31, 2024, from $2.37 billion at September 30, 2024 [13] - Shareholders' equity increased to $280.2 million at December 31, 2024, primarily due to a $4.8 million increase in retained earnings [16] Asset Quality - The company recorded a provision for credit losses of $132 thousand in Q4 2024, compared to $84 thousand in Q3 2024 [18] - Non-performing assets were $17.2 million, representing 0.60% of total assets, consistent with the previous quarter [18] - The allowance for credit losses was $26.4 million, or 1.17% of total loans held for investment, slightly down from 1.20% in Q3 2024 [20] Capital Ratios - The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 11.55% and 10.74%, respectively, as of December 31, 2024, both above regulatory minimums [21] - Tangible common equity to tangible assets ratio was 7.16% at December 31, 2024 [21]