LINKBANCORP, Inc. Announces Fourth Quarter 2023 and Full Year 2023 Financial Results

Rhea-AI Summary

LINKBANCORP, Inc. reported a net loss of $13.2 million for the fourth quarter of 2023, impacted by one-time costs related to the successful merger with Partners Bancorp. Excluding these expenses, earnings for the quarter would have been $2.0 million. The merger expanded LINKBANK's footprint into Maryland, Delaware, Virginia, and New Jersey, adding $1.50 billion in assets, $1.24 billion in loans, and $1.30 billion in deposits. However, the Merger resulted in dilution in the Company's tangible book value per share. The Company's financial results for the fourth quarter of 2023 may not be directly comparable to prior reported periods due to the merger-related expenses incurred.

Positive

• Successful completion of the merger with Partners Bancorp
• Increased total assets, deposits, and loans
• Expansion of net interest margin and noninterest income
• Strong asset quality metrics
• Regulatory capital ratios well in excess of minimums

Negative

• Net loss of $13.2 million for the fourth quarter of 2023
• Dilution in tangible book value per share due to the merger
• Financial results for the fourth quarter of 2023 may not be directly comparable to prior reported periods

Insights

Financial Analyst

The reported net loss by LINKBANCORP, Inc. following its merger with Partners Bancorp is a significant development for stakeholders, reflecting both the costs associated with such strategic moves and the potential for future earnings growth. The one-time expenses totaling approximately $19.2 million pre-tax related to the merger are substantial, yet they are not unexpected in the context of a transformational merger. Investors often scrutinize these costs as they can dilute earnings in the short term, but they also look for the long-term strategic benefits that may arise from increased market presence and operational synergies.

The increase in total assets, deposits and loans signifies a substantial growth in the company's scale, which could lead to improved profitability through economies of scale and a more diversified loan portfolio. However, the tangible book value per share dilution is a concern, as it reflects the immediate impact of the merger on shareholders' equity. The management's anticipation of future earnings per share and capital accretion will be critical to watch in upcoming quarters.

Furthermore, the expansion of the net interest margin from 2.89% to 3.55% is a positive indicator of the bank's improved profitability post-merger. This increase suggests that LINKBANCORP is effectively managing its interest-earning assets and liabilities, which is crucial in the current environment of fluctuating interest rates. The sale of a portion of the acquired securities portfolio and the reduction of FHLB borrowings are strategic moves that appear to have contributed positively to the net interest margin.

Market Research Analyst

The merger between LINKBANCORP and Partners Bancorp has significantly reshaped the company's market position, creating a larger Mid-Atlantic community banking entity. The strategic expansion into new geographical areas such as Maryland, Delaware, Virginia and New Jersey could open up new customer segments and revenue streams. The increased scale may provide a competitive advantage in attracting larger clients and participating in more significant financing deals.

However, the banking industry is highly competitive and the success of such mergers often hinges on the seamless integration of the entities involved. The reported successful conversion to LINKBANK's core operating system shortly after the merger's completion is a positive sign that the integration process is being managed effectively. This is crucial for maintaining customer service levels and operational efficiency. The cost-saving initiatives and right-sizing of the organizational structure will be essential to monitor, as they will play a pivotal role in achieving the projected benefits of the merger and driving shareholder value.

It's also important to consider the broader economic context. The banking sector is sensitive to changes in interest rates and economic conditions. As such, LINKBANCORP's performance in the upcoming periods will likely be influenced by these external factors, in addition to the internal efficiencies and growth resulting from the merger.

Legal Expert

The use of the acquisition method of accounting in the merger between LINKBANCORP and Partners Bancorp is a standard practice under GAAP for business combinations, where one entity is identified as the acquirer. Recording the assets and liabilities at fair value is crucial for providing transparency to investors regarding the financial impact of the merger. The goodwill of $21.0 million reflects the premium paid over the fair value of net assets acquired, which is common in mergers and acquisitions when the acquirer anticipates synergistic benefits.

The fair value adjustments to the acquired loan portfolio, resulting in a significant discount due to rising interest rates, are noteworthy. These adjustments are expected to accrete through income over time, providing potential future benefits to earnings. However, these benefits are contingent upon the successful management of the loan portfolio and continued creditworthiness of borrowers, especially in an environment of potentially increasing interest rates.

Regulatory capital ratios are another critical aspect post-merger, with the Bank's ratios remaining well above the minimum requirements for being considered 'well capitalized.' This is reassuring for stakeholders, indicating that the Bank maintains a strong capital buffer post-merger, which is essential for absorbing potential losses and supporting future growth.

HARRISBURG, Pa., Jan. 29, 2024 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank") reported financial results for the fourth quarter and year ended December 31, 2023 that were significantly impacted by one-time costs related to the merger with Partners Bancorp ("Partners") that was successfully completed on November 30, 2023 (the "Merger").  For the quarter ended December 31, 2023, the Company recognized a net loss of $13.2 million, or $0.57 per diluted share, and for the year ended December 31, 2023, the Company recognized a net loss of $12.2 million, or $0.68 per diluted share.

Fourth quarter 2023 results include the impact of the Partners Merger and include $19.2 million pre-tax ($15.2 million after tax) of primarily merger-related expenses and initial non-purchase credit deteriorated (non-PCD) provision. Excluding these expenses, earnings for the fourth quarter 2023 would have been $2.0 million¹, or $0.09¹ per diluted share.  Similarly, results for the year ended December 31, 2023 include $20.9 million pre-tax ($16.5 million after tax) of primarily merger related expenses and initial non-purchase credit deteriorated (non-PCD) provision.  Excluding these and other non-recurring expenses, earnings for the year ended December 31, 2023 would have been $6.2 million¹, or $0.35 ¹ per diluted share. 

Reported results prior to the fourth quarter of 2023 reflect legacy LINKBANCORP results only.

Fourth Quarter 2023 Highlights

• The Company successfully completed a transformational merger of equals with Partners Bancorp, the parent company of The Bank of Delmarva and Virginia Partners Bank, which closed on November 30, 2023. Both The Bank of Delmarva and Virginia Partners Bank were merged into LINKBANK. The conversion to LINKBANK's core operating system was successfully completed on December 4, 2023.
• Total assets increased to $2.66 billion at December 31, 2023, compared to $1.26 billion at September 30, 2023 and $1.16 billion at December 31, 2022.
• Total deposits increased to $2.30 billion at December 31, 2023 from $1.04 billion at September 30, 2023 and $946.8 million at December 31, 2022.
• Total loans increased to $2.24 billion at December 31, 2023 compared to $978.9 million at September 30, 2023 and $927.9 million at December 31, 2022.
• Net interest margin expanded from 2.89% for the third quarter of 2023 to 3.55% for the fourth quarter of 2023.

1	See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.

The fourth quarter results do not represent a full quarter of comparable combined earnings given the Merger with Partners was completed on November 30, 2023.

"2023 was a transformational year for LINKBANCORP.  Our merger with Partners Bancorp established a premier Mid-Atlantic community banking franchise committed to positively impacting communities across the markets we serve," said Andrew Samuel, Chief Executive Officer of LINKBANCORP.  "We believe our increased scale and presence in growing and diverse markets will drive profitable growth and shareholder value.  Promptly after the closing of the merger, we successfully converted legacy Bank of Delmarva and Virginia Partners Bank accounts to LINKBANK's core system.  Additionally, we have right-sized our pro forma organizational structure and commenced various cost-saving initiatives that we expect will ensure we achieve the projected benefits of the merger.  While merger-related expenses and accounting adjustments negatively impacted fourth quarter and 2023 earnings, we are pleased with our core operating results.  We are very grateful to each of our employees who have performed at a high level during this period, providing exceptional service to clients and their colleagues as together we navigated these critical transitions."   

Merger with Partners Bancorp
Partners Bancorp merged with and into LINKBANCORP and The Bank of Delmarva and Virginia Partners Bank each merged with and into LINKBANK, effective November 30, 2023. The acquisition method of accounting was used to account for the transaction with the Company as the acquirer. The Company recorded the assets and liabilities of Partners at their respective fair values as of November 30, 2023. The transaction was valued at approximately $135.8 million and expanded LINKBANK's footprint into Maryland, Delaware, Virginia and New Jersey.

As a result of the Merger, the Company added $1.50 billion in assets, $123.4 million in investment securities, $1.24 billion in loans, $1.30 billion in deposits, $54.7 million in FHLB advances and $21.1 million in subordinated debt. The excess of the merger consideration over the fair value of net Partners assets acquired resulted in goodwill of $21.0 million.  Subsequent to the Merger but prior to year-end, the Company sold a substantial portion of the acquired available-for-sale securities portfolio for net proceeds of $87.4 million and used approximately $54.7 million of the proceeds to reduce FHLB borrowings assumed in the Merger. The Merger resulted in dilution in the Company's tangible book value per share which was $4.90¹ at December 31, 2023 compared to $6.44¹ at September 30, 2023. The principal cause of the dilution was net fair value discount adjustments of approximately $64.5 million to the acquired loan portfolio due to increasing interest rates in the last 12-24 months. The loan fair value adjustments will accrete back through income as the loans mature, which management anticipates will lead to earnings per share and capital accretion in future periods.

The Company's tangible common equity ratio at December 31, 2023 was 7.09%¹.  The Bank's Tier 1 and Total Risk-Based Capital Ratios at December 31, 2023 were 10.05% and 10.75%, respectively.

The Company incurred expenses of $19.2 million and $20.9 million for the three and twelve months ended December 31, 2023, respectively, related to Merger costs and an increased allowance for credit losses related to the acquisition of Partners loans.

The Company's financial results for any periods ended prior to November 30, 2023 reflect LINKBANCORP results only on a standalone basis. As a result of this factor and the Merger-related expenses incurred, the Company's financial results for the fourth quarter of 2023 may not be directly comparable to prior reported periods.

1	See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.

Income Statement
Net interest income before the provision for credit losses for the fourth quarter of 2023 increased to $14.3 million compared to $8.4 million in the third quarter of 2023. Net interest margin was 3.55% for the fourth quarter of 2023 compared to 2.89% for the third quarter of 2023.  The average yield on interest-earning assets increased by 61 basis points over the prior quarter, due to an increase in the average yield on loans of 70 basis points to 6.03%.  Also contributing to expansion of net interest margin during the fourth quarter was a seven basis points decrease in the cost of funds to 2.28%.  The increase in net interest income was primarily a result of the legacy Partners portfolio, which maintained a lower cost of deposits, coupled with the higher average yield on interest earning assets across the portfolio and the impact of purchase accounting accretion.  In addition, proceeds from the sale of a substantial portion of the available-for-sale securities acquired in the Merger were used to pay off FHLB borrowings assumed in the Merger, contributing to further margin expansion.

Noninterest income increased quarter over quarter to $1.3 million for the fourth quarter of 2023 compared to $880 thousand for the third quarter of 2023.  This increase was primarily related to a $187 thousand increase in service charges on deposit accounts related to the increased size of the customer base in connection with the Merger.

Noninterest expense for the fourth quarter of 2023 increased to $22.3 million compared to $8.0 million for the third quarter of 2023. Excluding one-time charges related to the Merger of $9.5 million in the fourth quarter of 2023 and $777 thousand in the third quarter of 2023, noninterest expense increased by $5.6 million to $12.8 million in the fourth quarter from $8.8 million in the third quarter.  This increase was primarily due to the increased headcount and infrastructure resulting from the Merger, including additional branches, amortization of intangible assets, processing fees, and an increased incentive compensation accrual.

Balance Sheet
Total assets were $2.66 billion at December 31, 2023 compared to $1.26 billion at September 30, 2023 and $1.16 billion at December 31, 2022.  Deposits and net loans as of December 31, 2023 totaled $2.30 billion and $2.22 billion, respectively, compared to deposits and net loans of $1.04 billion and $968.9 million, respectively, at September 30, 2023 and $946.8 million and $923.2 million, respectively, at December 31, 2022.

Total loans increased $1.26 billion during the fourth quarter of 2023 to $2.24 billion at December 31, 2023 and included $1.24 billion of loans acquired through the Merger. Excluding the newly acquired loans, loans increased $18.3 million or 7.38% annualized led by originated commercial loan growth, with the average commercial loan commitment originated during the fourth quarter of 2023 totaling approximately $628 thousand.

Year-over-year, loans increased $1.31 billion and included $1.24 billion of loans acquired through the Merger.  Excluding the newly acquired loans, loans increased $69.3 million, or 7.5% during 2023.   

Cash and cash equivalents increased to $77.7 million at December 31, 2023 compared to $68.0 million at September 30, 2023, while increasing $47.7 million compared to the $30.0 million balance at December 31, 2022. 

Deposits at December 31, 2023 totaled $2.30 billion, an increase of $1.26 billion compared to $1.04 billion at September 30, 2023. The Merger added $1.30 billion of total deposits, including $969.5 million of transaction deposits (defined as total deposits less time deposits) and $330.3 million of time deposits on November 30, 2023.  Noninterest bearing deposits totaled $656.0 million at December 31, 2023, representing 28.5% of total deposits, compared to $210.4 million, representing 20.2% of total deposits at September 30, 2023.

Shareholders' equity increased from $141.4 million at September 30, 2023 to $265.6 million at December 31, 2023 primarily as a result of the completion of the Merger.  The Merger resulted in dilution in the Company's tangible book value per share which was $4.90¹ at December 31, 2023 compared to $6.44¹ at September 30, 2023. The principal cause of the dilution was fair value discount adjustments of approximately $64.5 million to the acquired loan portfolio due to increasing interest rates in the last 12-24 months. The loan fair value adjustments will accrete back through income as the loans mature and are expected to result in earnings per share and capital accretion over future periods.

1	See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.

Asset Quality
In the fourth quarter of 2023, the Company recorded a provision for credit losses, calculated under the CECL model, of $9.8 million, compared to a negative provision for credit losses of $349 thousand in the third quarter of 2023.  The provision for the fourth quarter included $9.7 million associated with day one accounting provision required for non-purchase credit deteriorated loans acquired in the Merger.

Asset quality metrics remain strong. As of December 31, 2023, the Company's non-performing assets were $9.0 million, representing 0.34% of total assets.  Loans 30-89 days past due at December 31, 2023 were $4.7 million, representing 0.21% of total loans. 

The allowance for credit losses-loans was $23.8 million, or 1.06% of total loans at December 31, 2023, compared to the allowance for credit losses-loans of $10.0 million, or 1.02% of total loans, at September 30, 2023.  The allowance for credit losses-loans to nonperforming assets was 263.55% at December 31, 2023, compared to 336.85% at September 30, 2023.

Capital
The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of December 31, 2023. The Bank's Total Capital Ratio and Tier 1 Capital Ratio was 10.75% and 10.05%, respectively, at December 31, 2023, compared to 12.92% and 12.37%, respectively, at September 30, 2023 and 12.89% and 12.41%, respectively, at December 31, 2022. The Company's ratio of Tangible Common Equity to Tangible Assets was 7.09%¹ at December 31, 2023.

1	See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.

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, Virginia, and New Jersey through 29 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. 

LB-E
LB-D

 

LINKBANCORP, Inc. and Subsidiaries
Consolidated Balance Sheet (Unaudited)
		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
(In Thousands, except share and per share data)
ASSETS
Noninterest-bearing cash equivalents		$                 11,663		$                 5,447		$                 4,736		$                    4,545		$                 4,209
Interest-bearing deposits with other institutions		66,000		62,532		118,438		47,190		25,802
Cash and cash equivalents		77,663		67,979		123,174		51,735		30,011
Certificates of deposit with other banks		—		249		498		745		5,623
Securities available for sale, at fair value		115,490		78,779		83,620		86,804		78,813
Securities held to maturity, net of allowance for credit losses		36,223		37,266		38,220		38,986		31,822
Loans receivable, gross		2,241,533		978,912		969,533		945,371		927,871
Allowance for credit losses - loans		(23,767)		(9,964)		(10,228)		(10,526)		(4,666)
Loans receivable, net		2,217,766		968,948		959,305		934,845		923,205
Investments in restricted bank stock		5,066		3,107		5,544		4,134		3,377
Premises and equipment, net		22,507		6,414		6,292		6,497		6,743
Right-of-use asset – premises		15,597		9,727		9,896		10,058		10,219
Bank-owned life insurance		48,847		24,732		24,554		24,384		19,244
Goodwill		56,838		35,842		35,842		35,842		35,842
Other intangible assets, net		25,733		873		932		991		1,052
Deferred tax asset		20,682		6,880		6,571		6,749		5,619
Accrued interest receivable and other assets		22,023		14,899		14,024		12,188		12,084
TOTAL ASSETS		$            2,664,436		$          1,255,695		$          1,308,472		$             1,213,958		$          1,163,654
LIABILITIES
Deposits:
Demand, noninterest bearing		$               655,953		$             210,404		$             240,729		$                204,495		$             192,773
Interest bearing		1,642,520		831,368		794,113		780,003		753,999
Total deposits		2,298,473		1,041,772		1,034,842		984,498		946,772
Other Borrowings		10,500		15,000		74,899		31,250		20,938
Subordinated Debt		61,444		40,354		40,398		40,441		40,484
Lease Liabilities		16,464		9,728		9,896		10,058		10,219
Accrued interest payable and other liabilities		11,952		7,490		5,985		6,130		6,688
TOTAL LIABILITIES		2,398,833		1,114,344		1,166,020		1,072,377		1,025,101
SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		373		162		162		250		149
Surplus		263,306		127,856		127,818		127,659		117,709
Retained earnings		4,650		19,062		19,039		18,911		27,100
Accumulated other comprehensive loss		(3,209)		(5,729)		(4,567)		(5,239)		(6,405)
Total equity attributable to parent		265,120		141,351		142,452		141,581		138,553
Noncontrolling interest in consolidated subsidiary		483		—		—		—		—
TOTAL SHAREHOLDERS' EQUITY		265,603		141,351		142,452		141,581		138,553
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$            2,664,436		$          1,255,695		$          1,308,472		$             1,213,958		$          1,163,654
Common shares outstanding		37,340,700		16,235,871		16,228,440		16,221,692		14,939,640

 

LINKBANCORP, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
		Three Months Ended						Twelve Months Ended
		12/31/2023		9/30/2023		12/31/2022			12/31/2023		12/31/2022
(In Thousands, except share and per share data)
INTEREST AND DIVIDEND INCOME
Loans receivable, including fees		$           21,461		$           13,068		$           11,109			$           58,791		$           36,396
Other		1,642		1,710		1,097			6,407		3,868
Total interest and dividend income		23,103		14,778		12,206			65,198		40,264
INTEREST EXPENSE
Deposits		7,445		5,434		2,465			22,638		5,337
Other Borrowings		727		550		335			1,923		441
Subordinated Debt		615		442		421			1,926		1,501
Total interest expense		8,787		6,426		3,221			26,487		7,279
NET INTEREST INCOME BEFORE PROVISION FOR     (CREDIT TO) CREDIT LOSSES		14,316		8,352		8,985			38,711		32,985
Provision for (credit to) for credit losses		9,844		(349)		100			9,295		1,290
NET INTEREST INCOME AFTER PROVISION FOR    (CREDIT TO) CREDIT LOSSES		4,472		8,701		8,885			29,416		31,695
NONINTEREST INCOME
Service charges on deposit accounts		385		198		188			978		832
Bank-owned life insurance		250		177		116			738		497
Net realized (losses) gains on the sale of debt securities		—		—		—			(2,370)		13
Gain on sale of loans		166		—		—			465		753
Other		374		505		204			1,276		862
Total noninterest income		1,175		880		508			1,087		2,957
NONINTEREST EXPENSE
Salaries and employee benefits		8,262		4,193		4,612			20,612		16,224
Occupancy		911		701		616			3,015		2,119
Equipment and data processing		1,201		934		751			3,720		2,609
Professional fees		536		363		371			1,698		1,236
FDIC insurance		198		276		157			817		640
Bank Shares Tax		323		278		201			1,158		786
Merger & system conversion related expenses		9,496		777		973			11,176		973
Other		1,358		472		764			3,636		3,245
Total noninterest expense		22,285		7,994		8,445			45,832		27,832
Income before income tax (benefit) expense		(16,638)		1,587		948			(15,329)		6,820
Income tax (benefit) expense		(3,448)		347		252			(3,168)		1,222
NET (LOSS) INCOME		$          (13,190)		$             1,240		$                696			$         (12,161)		$             5,598
(LOSS) EARNINGS PER SHARE, BASIC		$              (0.57)		$               0.08		$               0.05			$             (0.68)		$               0.49
(LOSS) EARNINGS PER SHARE, DILUTED		$              (0.57)		$               0.08		$               0.05			$             (0.68)		$               0.49
WEIGHTED-AVERAGE COMMON SHARES    OUTSTANDING,
BASIC		23,063,202		16,235,144		14,939,640			17,753,914		11,310,386
DILUTED		23,063,202		16,235,144		14,939,640			17,753,914		11,310,386

 

LINKBANCORP, Inc. and Subsidiaries
Financial Highlights (Unaudited)
	For the Three Months Ended						For the Twelve Months Ended
('Dollars In Thousands)	12/31/2023		9/30/2023		12/31/2022		12/31/2023		12/31/2022
Operating Highlights
Net (Loss) Income	$                      (13,190)		$                       1,240		$                              696		$                    (12,161)		$                         5,598
Net Interest Income	14,316		8,352		8,985		38,711		32,985
Provision for (Credit to) Credit Losses	9,844		(349)		100		9,295		1,290
Non-Interest Income	1,175		880		508		1,087		2,957
Non-Interest Expense	22,285		7,994		8,445		45,832		27,832
(Loss) Earnings per Share, Basic	(0.57)		0.08		0.05		(0.68)		0.49
Adjusted Earnings per Share, Basic (2)	0.09		0.11		0.10		0.35		0.56
(Loss) Earnings per Share, Diluted	(0.57)		0.08		0.05		(0.68)		0.49
Adjusted Earnings per Share, Diluted (2)	0.09		0.11		0.10		0.35		0.56
Selected Operating Ratios
Net Interest Margin	3.55 %		2.89 %		3.36 %		3.09 %		3.39 %
Annualized Return on Assets ("ROA")	-3.01 %		0.39 %		0.24 %		-0.90 %		0.53 %
Adjusted ROA2	0.45 %		0.59 %		0.50 %		0.46 %		0.60 %
Annualized Return on Equity ("ROE")	-28.66 %		3.46 %		2.02 %		-8.00 %		5.22 %
Adjusted ROE2	4.28 %		5.17 %		4.24 %		4.08 %		5.93 %
Efficiency Ratio	143.86 %		86.59 %		88.96 %		115.16 %		77.44 %
Adjusted Efficiency Ratio3	82.56 %		78.17 %		78.71 %		82.19 %		74.76 %
Noninterest Income to Avg. Assets	0.27 %		0.28 %		0.17 %		0.08 %		0.28 %
Noninterest Expense to Avg. Assets	5.08 %		2.54 %		2.90 %		3.38 %		2.63 %
	12/31/2023		9/30/2023		6/30/2023		3/31/2023		12/31/2022
Financial Condition Data
Total Assets	$                   2,664,436		$                 1,255,695		$                     1,308,472		$                 1,213,958		$                  1,163,654
Loans Receivable, Net	2,217,766		968,948		959,305		934,845		923,205
Noninterest-bearing Deposits	655,953		210,404		240,729		204,495		192,773
Interest-bearing Deposits	1,642,520		831,368		794,113		780,003		753,999
Total Deposits	2,298,473		1,041,772		1,034,842		984,498		946,772
Selected Balance Sheet Ratios
Total Capital Ratio1	10.75 %		12.92 %		13.55 %		13.53 %		12.89 %
Tier 1 Capital Ratio1	10.05 %		12.37 %		12.94 %		12.32 %		12.41 %
Common Equity Tier 1 Capital Ratio1	10.05 %		12.37 %		12.94 %		12.32 %		12.41 %
Leverage Ratio1	14.26 %		10.71 %		10.41 %		10.78 %		10.93 %
Tangible Common Equity to Tangible Assets4	7.09 %		8.58 %		8.38 %		8.90 %		9.02 %
Tangible Book Value per Share5	$                           4.90		$                         6.44		$                             6.51		$                         6.46		$                           6.80
Asset Quality Data
Non-performing Assets	$                         9,018		$                       2,958		$                            2,856		$                        2,398		$                         2,500
Non-performing Assets to Total Assets	0.34 %		0.24 %		0.22 %		0.20 %		0.21 %
Non-performing Loans to Total Loans	0.40 %		0.30 %		0.29 %		0.25 %		0.27 %
Allowance for Credit Losses - Loans ("ACLL")	$                        23,767		$                       9,964		$                          10,228		$                      10,526		$                         4,666
ACLL to Total Loans	1.06 %		1.02 %		1.05 %		1.11 %		0.50 %
ACLL to Nonperforming Assets	263.55 %		336.85 %		358.12 %		438.95 %		186.64 %
Net chargeoffs (recoveries)	$                            195		$                          (12)		$                               (97)		$                             (2)		$                            (60)

(1) - These capital ratios have been calculated using bank-level capital

(2) - This is a non-GAAP financial measure.  See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

(3) - The efficiency ratio, as adjusted represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains or losses from securities sales and merger related expenses.  This is a non-GAAP financial measure.  See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

(4) - We calculate tangible common equity as total shareholders' equity less goodwill and other intangibles, and we calculate tangible assets as total assets less goodwill and other intangibles.  This is a non-GAAP financial measure.  See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

(5) - We calculate tangible book value per common share as total shareholders' equity less goodwill and other intangibles, divided by the outstanding number of shares of our common stock at the end of the relevant period.  Tangible book value per common share is a non-GAAP financial measure, and, as we calculate tangible book value per common share, the most directly comparable GAAP financial measure is book value per common share.  See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

 

LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Quarter-To-Date (Unaudited)
		For the Three Months Ended December 31,
		2023						2022
(Dollars in thousands)		Avg Bal		Interest (2)		Yield/Rate		Avg Bal		Interest (2)		Yield/Rate
Int. Earn. Cash		$                  63,572		$                       405		2.53 %		$                  42,925		$                       227		2.10 %
Securities
Taxable (1)		88,632		951		4.26 %		80,842		567		2.78 %
Tax-Exempt		38,269		362		3.75 %		37,169		384		4.10 %
Total Securities		126,901		1,313		4.10 %		118,011		951		3.20 %
Total Cash Equiv. and Investments		190,473		1,718		3.58 %		160,936		1,178		2.90 %
Total Loans (3)		1,411,129		21,461		6.03 %		899,028		11,109		4.90 %
Total Earning Assets		1,601,602		23,179		5.74 %		1,059,964		12,287		4.60 %
Other Assets		138,537						94,628
Total Assets		$             1,740,139						$             1,154,592
Interest bearing demand		$                328,342		$                    1,746		2.11 %		$                278,816		$                       808		1.15 %
Money market demand		367,821		2,287		2.47 %		245,154		966		1.56 %
Time deposits		348,580		3,412		3.88 %		211,090		691		1.30 %
Total Borrowings		113,492		1,342		4.69 %		68,160		756		4.40 %
Total Interest-Bearing Liabilities		1,158,235		8,787		3.01 %		803,220		3,221		1.59 %
Non Int. Bearing Deposits		371,051						199,556
Total Cost of Funds		$             1,529,286		$                    8,787		2.28 %		$             1,002,776		$                    3,221		1.27 %
Other Liabilities		28,244						14,864
Total Liabilities		$             1,557,530						$             1,017,640
Shareholders' Equity		$                182,609						$                136,952
Total Liabilities & Shareholders' Equity		$             1,740,139						$             1,154,592
Net Interest Income/Spread (FTE)				14,392		2.73 %				9,066		3.01 %
Tax-Equivalent Basis Adjustment				(76)						(81)
Net Interest Income				$                  14,316						$                    8,985
Net Interest Margin						3.55 %						3.36 %

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table

(3) Includes the balances of nonaccrual loans

 

LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Linked Quarter-To-Date (Unaudited)
		For the Three Months Ended
		December 31, 2023						September 30, 2023
(Dollars in thousands)		Avg Bal		Interest (2)		Yield/Rate		Avg Bal		Interest (2)		Yield/Rate
Int. Earn. Cash		$                   63,572		$               405		2.53 %		$            55,514		$                577		4.12 %
Securities
Taxable (1)		88,632		951		4.26 %		82,499		833		4.01 %
Tax-Exempt		38,269		362		3.75 %		38,589		378		3.89 %
Total Securities		126,901		1,313		4.10 %		121,088		1,211		3.97 %
Total Cash Equiv. and Investments		190,473		1,718		3.58 %		176,602		1,788		4.02 %
Total Loans (3)		1,411,129		21,461		6.03 %		971,877		13,068		5.33 %
Total Earning Assets		1,601,546		23,179		5.74 %		1,148,479		14,856		5.13 %
Other Assets		138,537						97,995
Total Assets		$              1,740,139						$       1,246,474
Interest bearing demand		$                 328,342		$            1,746		2.11 %		$          254,725		$             1,490		2.32 %
Money market demand		367,821		2,287		2.47 %		254,849		1,827		2.84 %
Time deposits		348,580		3,412		3.88 %		265,573		2,117		3.16 %
Total Borrowings		113,492		1,342		4.69 %		102,669		992		3.83 %
Total Interest-Bearing Liabilities		1,158,235		8,787		3.01 %		877,816		6,426		2.90 %
Non Int Bearing Deposits		371,051						209,054
Total Cost of Funds		$              1,529,286		$            8,787		2.28 %		$       1,086,870		$             6,426		2.35 %
Other Liabilities		28,244						17,230
Total Liabilities		$              1,557,530						$       1,104,100
Shareholders' Equity		$                 182,609						$          142,374
Total Liabilities & Shareholders' Equity		$              1,740,139						$       1,246,474
Net Interest Income/Spread (FTE)				14,392		2.73 %				8,430		2.23 %
Tax-Equivalent Basis Adjustment				(76)						(78)
Net Interest Income				$          14,316						$             8,352
Net Interest Margin						3.55 %						2.89 %

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table

(3) Includes the balances of nonaccrual loans

 

LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Year-To-Date (Unaudited)
		For the Year Ended December 31,
		2023						2022
(Dollars in thousands)		Avg Bal		Interest (2)		Yield/Rate		Avg Bal		Interest (2)		Yield/Rate
Int. Earn. Cash		$                  55,501		$                    1,966		3.54 %		$                  56,783		$                       533		0.94 %
Securities
Taxable (1)		84,860		3,260		3.84 %		78,629		2,175		2.77 %
Tax-Exempt		38,591		1,495		3.87 %		40,388		1,468		3.63 %
Total Securities		123,451		4,755		3.85 %		119,017		3,643		3.06 %
Total Cash Equiv. and Investments		178,952		6,721		3.76 %		175,800		4,176		2.38 %
Total Loans (3)		1,071,864		58,791		5.48 %		795,908		36,396		4.57 %
Total Earning Assets		1,250,816		65,512		5.24 %		971,708		40,572		4.18 %
Other Assets		106,267						88,485
Total Assets		$             1,357,083						$             1,060,193
Interest bearing demand		$                269,615		$                    5,684		2.11 %		$                271,681		$                    1,713		0.63 %
Money market demand		278,418		7,053		2.53 %		229,979		1,911		0.83 %
Time deposits		301,101		9,901		3.29 %		205,636		1,713		0.83 %
Total Borrowings		90,468		3,849		4.25 %		55,980		1,942		3.47 %
Total Interest-Bearing Liabilities		939,602		26,487		2.82 %		763,276		7,279		0.95 %
Non Int Bearing Deposits		245,703						173,938
Total Cost of Funds		$             1,185,305		$                  26,487		2.23 %		$                937,214		$                    7,279		0.78 %
Other Liabilities		19,850						15,806
Total Liabilities		$             1,205,155						$                953,020
Shareholders' Equity		$                151,927						$                107,173
Total Liabilities & Shareholders' Equity		$             1,357,083						$             1,060,193
Net Interest Income/Spread (FTE)				39,025		2.42 %				33,293		3.22 %
Tax-Equivalent Basis  Adjustment				(314)						(308)
Net Interest Income				$                  38,711						$                  32,985
Net Interest Margin						3.09 %						3.39 %

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table

(3) Includes the balances of nonaccrual loans

 

LINKBANCORP, Inc. and Subsidiaries
Loans Receivable Detail (Unaudited)
(In Thousands)		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Agriculture and farmland loans		$                    66,573		$           50,584		$           50,552		$           53,301		$           55,746
Construction loans		178,500		65,836		75,628		67,934		57,713
Commercial & industrial loans		238,258		115,572		104,869		99,356		104,755
Commercial real estate loans
Multifamily		180,535		111,853		113,254		111,461		105,390
Owner occupied		501,788		161,751		154,520		151,407		139,554
Non-owner occupied		568,714		256,522		254,691		249,638		245,274
Residential real estate loans
First liens		414,263		172,481		170,271		166,478		168,084
Second liens and lines of credit		70,724		27,870		30,148		30,720		35,576
Consumer and other loans		16,760		11,869		11,308		10,472		10,057
Municipal loans		5,244		4,137		3,929		4,292		5,466
		2,241,359		978,475		969,170		945,059		927,615
Deferred costs (fees)		174		437		363		312		256
Total loans receivable		$               2,241,533		$         978,912		$         969,533		$         945,371		$         927,871

 

LINKBANCORP, Inc. and Subsidiaries
Investments in Securities Detail (Unaudited)
		December 31, 2023
(In Thousands)		Amortized Cost		Net Unrealized Gains (Losses)		Fair Value
Available for Sale:
U.S. government agency securities		$        12,711		$                  274		$        12,985
U.S. government treasury securities		4,925		17		4,942
Obligations of state and political subdivisions		49,640		(2,595)		47,045
Mortgage-backed securities in government-sponsored entities		50,795		(2,614)		48,181
Other securities		2,301		36		2,337
		$      120,372		$              (4,882)		$      115,490
		Amortized Cost		Net Unrealized Losses		Fair Value		Allowance for Credit Losses
Held to Maturity:
Corporate debentures		$        15,000		$              (1,592)		$        13,408		$            (512)
Structured mortgage-backed securities		21,735		(907)		20,828		-
		$        36,735		$              (2,499)		$        34,236		$            (512)
		December 31, 2022
(In Thousands)		Amortized Cost		Net Unrealized Losses		Fair Value
Available for Sale:
Small Business Administration loan pools		$             858		$                   (15)		$             843
Obligations of state and political subdivisions		44,189		(4,020)		40,169
Mortgage-backed securities in government-sponsored entities		41,873		(4,072)		37,801
		$        86,920		$              (8,107)		$        78,813
Held to Maturity:
Corporate debentures		$        14,993		$                 (994)		$        13,999
Structured mortgage-backed securities		16,829		(748)		16,081
		$        31,822		$              (1,742)		$        30,080

 

LINKBANCORP, Inc. and Subsidiaries
Deposits Detail (Unaudited)
(In Thousands)		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Demand, noninterest-bearing		$            655,953		$          210,404		$          240,729		$          204,495		$          192,773
Demand, interest-bearing		438,765		273,673		237,114		250,944		254,478
Money market and savings		577,448		258,334		254,632		241,858		228,048
Time deposits, $250 and over		135,050		51,563		57,194		51,855		46,116
Time deposits, other		491,257		247,798		245,173		235,346		225,357
		$         2,298,473		$       1,041,772		$       1,034,842		$          984,498		$          946,772
Average Deposits Detail, for the Three Months Ended (Unaudited)
(In Thousands)		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Demand, noninterest-bearing		$            371,051		$          209,054		$          209,072		$          192,135		$          199,556
Demand, interest-bearing		328,342		254,725		243,539		251,103		278,816
Money market and savings		367,821		254,849		244,355		245,563		245,154
Time deposits		348,580		265,573		299,398		290,605		211,090
		$         1,415,794		$          984,201		$          996,364		$          979,406		$          934,616

 

Merger with Partners Bancorp

The following table provides a summary of the assets acquired, liabilities assumed, and associated preliminary fair value adjustments by the Company as of the merger date. As provided for under Generally Accepted Accounting Principles, management has up to 12 months following the date of the merger to finalize the fair value adjustments. 

(Unaudited)
(Dollars in thousands, except per share information)		Partners Bancorp		Fair Value Adjustment		As Recorded by LINKBANCORP, Inc.
Assets acquired
Cash and cash equivalents		$                         34,586		$                               -		$                                              34,586
Federal funds sold		7,159		-		7,159
Securities available for sale, at fair value		124,361		(921)		123,440
Loans held for sale		201		-		201
Loans		1,308,978		(64,460)		1,244,518
Allowance for credit losses - loans		(16,124)		11,821		(4,303)
Loans receivable, net		1,292,854		(52,639)		1,240,215
Restricted stock		10,536		-		10,536
Premises and equipment		12,458		4,191		16,649
Accrued interest receivable		4,787		-		4,787
Core deposit intangibles		-		25,344		25,344
Deferred tax asset		8,766		5,063		13,829
Right-of-use-asset -- premises		6,042		-		6,042
Other assets		22,986		(2,122)		20,864
Total assets acquired		$                    1,524,736		$                      (21,084)		$                                         1,503,652
Liabilities assumed
Deposits		$                    1,303,462		$                        (3,595)		$                                         1,299,867
Borrowings		55,292		-		55,292
Subordinated debt		22,257		(1,179)		21,078
Accrued interest payable		2,056		-		2,056
Operating lease liabilities		6,908		-		6,908
Other liabilities		1,643		2,025		3,668
Total liabilities assumed		$                    1,391,618		$                        (2,749)		$                                         1,388,869
Net assets acquired						$                                            114,783
Consideration paid
Common stock consideration:
Common shares of Partners Bancorp						17,985,577
Exchange ratio						1.15
LINKBANCORP, Inc. common stock issued						20,683,185
LINKBANCORP, Inc. stock price on acquisition date						$                                                  6.47
Purchase price assigned to Partners Bancorp common shares						133,820
Restricted stock consideration
Partners Bancorp restricted stock shares						297,726
LINKBANCORP, Inc. stock price on acquisition date						$                                                  6.47
Total purchase price assigned to Partners Bancorp restricted shares						1,926
Cash paid in exchange for Partners Bancorp stock options						33
Total consideration						$                                            135,779
Goodwill						$                                              20,996

 

Appendix A – Reconciliation to Non-GAAP Financial Measures
This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these non-GAAP measures in its analysis of the Company's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of non-GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company's financial condition and results. Non-GAAP measures are not formally defined under GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to GAAP financial measures, our management believes these non-GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-GAAP measures. See the tables below for a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures.

Adjusted Return on Average Assets
	For the Three Months Ended						For the Year Ended
(Dollars in thousands)	12/31/2023		9/30/2023		12/31/2022		12/31/2023		12/31/2022
Net (loss) income	$    (13,190)		$            1,240		$           696		$         (12,161)		$          5,598
Average assets	1,740,139		1,246,474		1,154,592		1,357,083		1,060,193
Return on average assets (annualized)	-3.01 %		0.39 %		0.24 %		-0.90 %		0.53 %
Net (loss) income	(13,190)		1,240		696		(12,161)		5,598
Net losses (gains) on sale of securities	-		-		-		2,370		(13)
Tax effect at 21%	-		-		-		(498)		3
Merger & system conversion related expenses	9,496		777		973		11,176		973
Tax effect at 21%	(1,994)		(163)		(204)		(2,347)		(204)
Non-purchase credit deteriorated provision for credit losses	9,694		-		-		9,694		-
Tax effect at 21%	(2,036)		-		-		(2,036)		-
Adjusted Net Income (Non-GAAP)	1,970		1,854		1,465		6,198		6,357
Average assets	1,740,139		1,246,474		1,154,592		1,357,083		1,060,193
Adjusted return on average assets (annualized) (Non-GAAP)	0.45 %		0.59 %		0.50 %		0.46 %		0.60 %

 

Adjusted Return on Average Shareholders' Equity
	For the Three Months Ended						For the Year Ended
(Dollars in thousands)	12/31/2023		9/30/2023		12/31/2022		12/31/2023		12/31/2022
Net (loss) income	$    (13,190)		$          1,240		$           696		$    (12,161)		$        5,598
Average shareholders' equity	182,609		142,374		136,952		151,927		107,173
Return on average shareholders' equity (annualized)	-28.66 %		3.46 %		2.02 %		-8.00 %		5.22 %
Net (loss) income	(13,190)		1,240		696		(12,161)		5,598
Net losses (gains) on sale of securities	-		-		-		2,370		(13)
Tax effect at 21%	-		-		-		(498)		3
Merger & system conversion related expenses	9,496		777		973		11,176		973
Tax effect at 21%	(1,994)		(163)		(204)		(2,347)		(204)
Non-purchase credit deteriorated provision for credit losses	9,694		-		-		9,694		-
Tax effect at 21%	(2,036)		-		-		(2,036)		-
Adjusted Net Income (Non-GAAP)	1,970		1,854		1,465		6,198		6,357
Average shareholders' equity	182,609		142,374		136,952		151,927		107,173
Adjusted return on average shareholders' equity (annualized) (Non-GAAP)	4.28 %		5.17 %		4.24 %		4.08 %		5.93 %

 

Adjusted Efficiency Ratio
	For the Three Months Ended						For the Year Ended
(Dollars in thousands)	12/31/2023		9/30/2023		12/31/2022		12/31/2023		12/31/2022
GAAP-based efficiency ratio	143.86 %		86.59 %		88.96 %		115.16 %		77.44 %
Net interest income	$      14,316		$            8,352		$        8,985		$               38,711		$      32,985
Noninterest income	1,175		880		508		1,087		2,957
Less: net gains (losses) on sales of securities	-		-		-		(2,370)		13
Adjusted revenue (Non-GAAP)	15,491		9,232		9,493		42,168		35,929
Total noninterest expense	22,285		7,994		8,445		45,832		27,832
Less: Merger & system conversion related expenses	9,496		777		973		11,176		973
Adjusted non-interest expense	12,789		7,217		7,472		34,656		26,859
Efficiency ratio, as adjusted (Non-GAAP)	82.56 %		78.17 %		78.71 %		82.19 %		74.76 %

 

Adjusted Earnings Per Share
	For the Three Months Ended							For the Year Ended
(Dollars in thousands, except per share data)	12/31/2023		9/30/2023		12/31/2022			12/31/2023		12/31/2022
GAAP-Based (Loss) Earnings Per Share, Basic	$        (0.57)		$        0.08		$              0.05			$                 (0.68)		$          0.49
GAAP-Based (Loss) Earnings Per Share, Diluted	$        (0.57)		$        0.08		$              0.05			$                 (0.68)		$          0.49
Net (Loss) Income	$    (13,190)		$      1,240		$               696			$             (12,161)		$        5,598
Net losses (gains) on sale of securities	-		-		-			2,370		(13)
Tax effect at 21%	-		-		-			(498)		3
Merger & system conversion related expenses	9,496		777		973			11,176		973
Tax effect at 21%	(1,994)		(163)		(204)			(2,347)		(204)
Non-purchase credit deteriorated provision for credit losses	9,694		-		-			9,694		-
Tax effect at 21%	(2,036)		-		-			(2,036)		-
Adjusted Net Income (Non-GAAP)	1,970		1,854		1,465			6,198		6,357
Adjusted Earnings per Share, Basic (Non-GAAP)	$          0.09		$        0.11		$              0.10			$                   0.35		$          0.56
Adjusted Earnings per Share, Diluted (Non-GAAP)	$          0.09		$        0.11		$              0.10			$                   0.35		$          0.56

 

Tangible Common Equity and Tangible Book Value
(Dollars in thousands, except for share data)		12/31/2023		9/30/2023		6/30/2023		3/31/2023		12/31/2022
Tangible Common Equity
Total shareholders' equity		$        265,603		$          141,351		$         142,452		$       141,581		$       138,553
Adjustments:
Goodwill		(56,838)		(35,842)		(35,842)		(35,842)		(35,842)
Other intangible assets		(25,733)		(873)		(932)		(991)		(1,052)
Tangible common equity (Non-GAAP)		$        183,032		$          104,636		$         105,678		$       104,748		$       101,659
Common shares outstanding		37,340,700		16,235,871		16,228,440		16,221,692		14,939,640
Book value per common share		$              7.11		$                8.71		$               8.78		$             8.73		$             9.27
Tangible book value per common share (Non-GAAP)		$              4.90		$                6.44		$               6.51		$             6.46		$             6.80
Tangible Assets
Total assets		$     2,664,436		$       1,255,695		$      1,308,472		$    1,213,958		$    1,163,654
Adjustments:
Goodwill		(56,838)		(35,842)		(35,842)		(35,842)		(35,842)
Other intangible assets		(25,733)		(873)		(932)		(991)		(1,052)
Tangible assets (Non-GAAP)		$     2,581,865		$       1,218,980		$      1,271,698		$    1,177,125		$    1,126,760
Tangible common equity to tangible assets (Non-GAAP)		7.09 %		8.58 %		8.31 %		8.90 %		9.02 %

 

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)
	For the Three Months Ended						For the Year Ended
(Dollars in thousands, except per share data)	12/31/2023		9/30/2023		12/31/2022		12/31/2023		12/31/2022
Net (Loss) Income - GAAP	$    (13,190)		$      1,240		$           696		$             (12,161)		$        5,598
Net losses (gains) on sale of securities	-		-		-		2,370		(13)
Tax effect at 21%	-		-		-		(498)		3
Merger & system conversion related expenses	9,496		777		973		11,176		973
Tax effect at 21%	(1,994)		(163)		(204)		(2,347)		(204)
Adjusted Net Income (Non-GAAP)	(5,688)		1,854		1,465		(1,460)		6,357
Income tax (benefit) expense	(3,448)		347		252		(3,168)		1,222
Provision for (credit to) credit losses	9,844		(349)		100		9,295		1,290
Tax effect included in Adjusted Net Income	1,994		163		204		2,845		201
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)	$        2,702		$      2,015		$        2,021		$                 7,512		$        9,070

 

Contact:
Nicole Davis
Corporate and Investor Relations Officer
717.803.8895
IR@LINKBANCORP.COM

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SOURCE LINKBANCORP, Inc.

FAQ

What was the net loss for the fourth quarter of 2023?

The Company reported a net loss of $13.2 million for the fourth quarter of 2023.

What were the primary expenses impacting the net loss for the quarter?

The net loss was significantly impacted by one-time costs related to the merger with Partners Bancorp.

How did the merger affect the Company's tangible book value per share?

The merger resulted in dilution in the Company's tangible book value per share.

What were the total assets, deposits, and loans added through the merger?

The merger added $1.50 billion in assets, $1.30 billion in deposits, and $1.24 billion in loans.

What were the asset quality metrics as of December 31, 2023?

Non-performing assets were $9.0 million, representing 0.34% of total assets, and the allowance for credit losses-loans was $23.8 million, or 1.06% of total loans.

What were the Bank's regulatory capital ratios as of December 31, 2023?

The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 10.75% and 10.05%, respectively, at December 31, 2023.