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LINKBANCORP, INC. Announces Completion of New Jersey Branch Sale

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LINKBANCORP (NASDAQ: LNKB) has completed the sale of its New Jersey banking operations to American Heritage Federal Credit Union. The transaction, finalized on March 31, 2025, includes:

  • Transfer of 3 branch locations
  • $87 million in deposits (sold at 7% premium)
  • $105 million in loans (sold at par value)

The deal is expected to generate an estimated $8.5 million after-tax gain for LINKBANCORP, net of transaction costs. The divested branches were originally acquired through the Partners Bancorp merger in November 2023. According to CEO Andrew Samuel, this strategic move aims to reallocate capital to core markets in Pennsylvania, Maryland, and Virginia while improving operational efficiencies.

LINKBANCORP (NASDAQ: LNKB) ha completato la vendita delle sue operazioni bancarie nel New Jersey all'American Heritage Federal Credit Union. La transazione, finalizzata il 31 marzo 2025, include:

  • Trasferimento di 3 filiali
  • 87 milioni di dollari in depositi (venduti con un premio del 7%)
  • 105 milioni di dollari in prestiti (venduti al valore nominale)

Si prevede che l'accordo genererà un guadagno netto dopo le tasse stimato di 8,5 milioni di dollari per LINKBANCORP, al netto dei costi di transazione. Le filiali dismesse sono state originariamente acquisite attraverso la fusione con Partners Bancorp nel novembre 2023. Secondo il CEO Andrew Samuel, questa mossa strategica mira a riallocare il capitale verso mercati chiave in Pennsylvania, Maryland e Virginia, migliorando al contempo l'efficienza operativa.

LINKBANCORP (NASDAQ: LNKB) ha completado la venta de sus operaciones bancarias en Nueva Jersey a American Heritage Federal Credit Union. La transacción, finalizada el 31 de marzo de 2025, incluye:

  • Transferencia de 3 sucursales
  • 87 millones de dólares en depósitos (vendidos con una prima del 7%)
  • 105 millones de dólares en préstamos (vendidos al valor nominal)

Se espera que el acuerdo genere una ganancia neta después de impuestos estimada de 8,5 millones de dólares para LINKBANCORP, después de los costos de transacción. Las sucursales vendidas fueron adquiridas originalmente a través de la fusión con Partners Bancorp en noviembre de 2023. Según el CEO Andrew Samuel, este movimiento estratégico tiene como objetivo reallocar capital hacia mercados clave en Pennsylvania, Maryland y Virginia, al tiempo que mejora la eficiencia operativa.

LINKBANCORP (NASDAQ: LNKB)는 뉴저지의 은행 운영을 American Heritage Federal Credit Union에 매각했습니다. 이 거래는 2025년 3월 31일에 완료되었으며, 포함된 내용은 다음과 같습니다:

  • 3개 지점의 이전
  • 8700만 달러의 예금 (7% 프리미엄으로 판매)
  • 10억 5000만 달러의 대출 (액면가로 판매)

이 거래는 LINKBANCORP에 대해 850만 달러의 세후 이익을 예상하고 있으며, 거래 비용을 제외한 금액입니다. 매각된 지점은 2023년 11월 Partners Bancorp와의 합병을 통해 원래 인수되었습니다. CEO Andrew Samuel에 따르면, 이 전략적 조치는 펜실베이니아, 메릴랜드 및 버지니아의 핵심 시장으로 자본을 재배치하고 운영 효율성을 개선하는 것을 목표로 하고 있습니다.

LINKBANCORP (NASDAQ: LNKB) a finalisé la vente de ses opérations bancaires du New Jersey à American Heritage Federal Credit Union. La transaction, conclue le 31 mars 2025, comprend :

  • Transfert de 3 agences
  • 87 millions de dollars en dépôts (vendus avec une prime de 7 %)
  • 105 millions de dollars en prêts (vendus à la valeur nominale)

On s'attend à ce que l'accord génère un bénéfice net estimé de 8,5 millions de dollars après impôts pour LINKBANCORP, net des coûts de transaction. Les agences cédées ont été initialement acquises par le biais de la fusion avec Partners Bancorp en novembre 2023. Selon le PDG Andrew Samuel, ce mouvement stratégique vise à réallouer des capitaux vers des marchés clés en Pennsylvanie, au Maryland et en Virginie tout en améliorant l'efficacité opérationnelle.

LINKBANCORP (NASDAQ: LNKB) hat den Verkauf seiner Bankgeschäfte in New Jersey an die American Heritage Federal Credit Union abgeschlossen. Die Transaktion, die am 31. März 2025 abgeschlossen wurde, umfasst:

  • Übertragung von 3 Filialen
  • 87 Millionen Dollar an Einlagen (mit einem Aufpreis von 7% verkauft)
  • 105 Millionen Dollar an Krediten (zum Nennwert verkauft)

Es wird erwartet, dass der Deal einen geschätzten 8,5 Millionen Dollar nach Steuern Gewinn für LINKBANCORP generiert, abzüglich der Transaktionskosten. Die veräußerten Filialen wurden ursprünglich durch die Fusion mit Partners Bancorp im November 2023 erworben. Laut CEO Andrew Samuel zielt dieser strategische Schritt darauf ab, Kapital in Kernmärkte in Pennsylvania, Maryland und Virginia umzuschichten und gleichzeitig die Betriebseffizienz zu verbessern.

Positive
  • Generated $8.5 million after-tax gain from the sale
  • Received 7% premium on $87 million deposit sale
  • Strategic consolidation to improve operational efficiency
  • Capital reallocation to core markets
Negative
  • Reduction in total assets with sale of $105 million in loans
  • Loss of market presence in New Jersey

CAMP HILL, Pa., April 1, 2025 /PRNewswire/ -- Andrew Samuel, Chief Executive Officer of LINKBANCORP, Inc. (NASDAQ: LNKB) ( "Company"), announced that the Company's wholly owned subsidiary, LINKBANK ("LINK"), has successfully consummated the sale of its banking operations and three branches in New Jersey, including related loans and deposits (the "New Jersey Operations") to American Heritage Federal Credit Union, headquartered in Philadelphia, Pennsylvania. The transaction, effective March 31, 2025, involved the transfer of three branch locations, approximately $87 million of deposits, and $105 million in loans. Under the terms of the purchase and assumption agreement, deposits were sold at a 7% premium and loans were sold at par, resulting in an estimated after-tax gain, net of transaction costs, of approximately $8.5 million for the Company.

"This strategic sale of our New Jersey Operations enables the Company to reallocate capital to our core markets in Pennsylvania, Maryland, and Virginia, while enhancing operational efficiencies as we continue to build a premier Mid-Atlantic community bank," said Samuel.

The three branches were acquired by the Company in the merger with Partners Bancorp that closed in November 2023.

Stephens Inc. served as financial adviser and Luse Gorman, PC provided legal counsel to the Company in connection with the transaction.

ABOUT LINKBANCORP, Inc.

LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, LINKBANK, is a Pennsylvania state-chartered bank serving individuals, families, nonprofits and business clients throughout Pennsylvania, Maryland, Delaware and Virginia through 24 client solutions centers and www.linkbank.com. LINKBANCORP, Inc. common stock is traded on the Nasdaq Capital Market under the symbol "LNKB". For further company information, visit ir.linkbancorp.com.

Forward Looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties associated with newly developed or acquired operations; risks related to the integration of the merger with Partners; changes in general economic trends, including inflation and changes in interest rates; increased competition; changes in consumer demand for financial services; our ability to control costs and expenses; adverse developments in borrower industries and, in particular, declines in real estate values; changes in and compliance with federal and state laws that regulate our business and capital levels; our ability to raise capital as needed; and the effects of any cybersecurity breaches. The Company does not undertake, and specifically disclaims, any obligation to publicly revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. Accordingly, you should not place undue reliance on forward-looking statements. 

Contact:
Andrew Samuel
CEO
717.798.4230
asamuel@linkbank.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/linkbancorp-inc-announces-completion-of-new-jersey-branch-sale-302416961.html

SOURCE LINKBANCORP, Inc.

FAQ

How much will LINKBANCORP (LNKB) gain from the New Jersey branch sale?

LINKBANCORP will realize an estimated $8.5 million after-tax gain, net of transaction costs, from the sale.

What assets were included in LINKBANCORP's (LNKB) New Jersey branch sale?

The sale included 3 branch locations, $87 million in deposits, and $105 million in loans.

What premium did LINKBANCORP (LNKB) receive for the deposits in the branch sale?

Deposits were sold at a 7% premium, while loans were sold at par value.

Which markets will LINKBANCORP (LNKB) focus on after the New Jersey branch sale?

LINKBANCORP will focus on its core markets in Pennsylvania, Maryland, and Virginia.
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