LINKBANCORP, Inc. Announces Record First Quarter 2025 Earnings and Declares Dividend

Core Financial Performance - LINKBANCORP, Inc. reported record net income of $15.3 million, or $0.41 per diluted share, for Q1 2025, compared to $7.6 million, or $0.20 per diluted share, for Q4 2024 [1] - Adjusted earnings for Q1 2025 were $7.4 million, or $0.201 per diluted share, compared to $7.6 million, or $0.211 per diluted share, for Q4 2024 [1][4] - The Company declared a quarterly cash dividend of $0.075 per share, expected to be paid on June 16, 2025 [2] Income Statement Highlights - Net interest income before provision for credit losses was $25.8 million for Q1 2025, up from $25.5 million in Q4 2024 [6] - Net interest margin expanded to 3.94% in Q1 2025 from 3.85% in Q4 2024, driven by a 5 basis points increase in average yield on interest-earning assets [6] - Noninterest income increased to $13.3 million in Q1 2025, primarily due to an $11.1 million pre-tax gain from the Branch Sale [7] Expense and Taxation - Noninterest expense for Q1 2025 was $19.7 million, compared to $18.3 million in Q4 2024 [8] - Income tax expense was $3.9 million for Q1 2025, with an effective tax rate of 20.1%, down from 21.9% in Q4 2024 [9] Balance Sheet Overview - Total assets were $2.86 billion as of March 31, 2025, compared to $2.88 billion at December 31, 2024 [11] - Total deposits were $2.43 billion, an increase of $66.6 million, or 11.01% annualized, after adjusting for the Branch Sale [13][14] - Total loans were $2.27 billion, a decrease from $2.35 billion at December 31, 2024, representing a $24.0 million increase after adjusting for the Branch Sale [12] Branch Sale Impact - The successful sale of New Jersey operations included the transfer of three branch locations, $87 million of deposits, and $105 million in loans, resulting in an after-tax gain of $8.7 million [13] - The transaction was completed on March 31, 2025, and is expected to positively impact the Company's loan pipeline [5] Capital and Liquidity - Shareholders' equity increased to $294.1 million as of March 31, 2025, primarily due to a $12.6 million increase in retained earnings [16] - The Company's cash and cash equivalents increased by 32.6% to $220.2 million, enhancing its liquidity position [15] Asset Quality - Non-performing assets were $26.0 million, or 0.91% of total assets, compared to $17.2 million, or 0.60% of total assets at December 31, 2024 [18] - The allowance for credit losses was $26.6 million, or 1.17% of total loans held for investment [20]