LINKBANCORP, Inc. Announces Record First Quarter Earnings
LINKBANCORP, Inc. reported strong first quarter earnings in 2024, with net income of $5.73 million and adjusted earnings of $5.77 million. Net interest income before provision was $24.9 million, and total deposits increased to $2.39 billion. Total loans slightly increased to $2.25 billion, and asset quality remained strong. The merger with Partners Bancorp in 2023 positively impacted results, leading to a reduction in headcount and increased efficiency.
Strong net income and adjusted earnings for the first quarter of 2024.
Significant increase in net interest income before provision.
Total deposits and loans showed growth from previous quarters.
Strong asset quality with low non-performing assets and consistent allowance for credit losses-loans.
The merger with Partners Bancorp contributed to operational efficiencies and improved results.
- None.
Insights
The reported net income of $5.73 million, or $0.15 per diluted share, for LINKBANCORP reflects healthy profitability, particularly when considering that adjusted earnings were slightly higher at $5.77 million. This adjustment suggests that underlying operations remain robust despite one-time merger costs. Net interest income growth to $24.9 million from the prior $14.3 million quarter-over-quarter is indicative of significant earnings power, derived from both organic growth and the integration of Partners Bancorp.
With net interest margin expanding to 4.03%, investors might view LINKBANCORP's ability to generate earnings from its lending activities favorably as it exceeds the norm in the current financial climate, where margins are often compressed. The stable loan-to-deposit ratio suggests a balanced growth strategy, though the muted loan growth post-merger could signal integration challenges or conservative growth approaches in new market territories.
From a risk perspective, the asset quality of LINKBANCORP is notable. Non-performing assets at 0.25% of total assets remain low, indicating effective risk management. The consistent allowance for credit losses-loans at 1.06% suggests the company is maintaining prudence in its estimation of potential future losses. It’s reassuring to see that the allowance for credit losses to nonperforming assets ratio has improved, which may signify better coverage and a potentially lower risk profile for the investors looking into LINKBANCORP's creditworthiness.
The increase in long-term FHLB borrowings demonstrates a strategic approach to prolonging the maturity of liabilities, thereby mitigating liquidity risk. However, investors should monitor the liquidity situation closely, given the substantial increase in cash and equivalents, as overly conservative liquidity strategies may dampen returns.
The expansion in shareholders' equity, driven by retained earnings, is a positive sign of the company's capital accumulation capabilities. The book value per share increase, albeit slight, could attract value investors who look for intrinsic value growth. The retail investor should note the increase in tangible book value per share, which provides a more conservative view of the company's net asset value by excluding intangible assets.
The deposit growth is robust, indicating effective cash flow management and consumer trust. The shift toward more interest-bearing liabilities does, however, put pressure on the cost of funds in a rising rate environment and this dynamic should be continuously assessed for its long-term effects on profitability.
First Quarter 2024 Highlights
- Net interest income before provision was
for the first quarter of 2024, compared to$24.9 million in the fourth quarter of 2023. Net interest margin grew from$14.3 million 3.55% for the fourth quarter of 2023 to4.03% for the first quarter of 2024. - Total deposits increased to
at March 31, 2024 from$2.39 billion at December 31, 2023 and$2.30 billion at March 31, 2023. Total loans increased slightly to$984.5 million at March 31, 2024, compared to$2.25 billion at December 31, 2023 and$2.24 billion at March 31, 2023.$945.4 million - The Company enhanced its on-balance sheet liquidity with cash and cash equivalents at March 31, 2024 of
, up from$172.3 million at December 31, 2023 and$80.2 million at March 31, 2023.$51.7 million - Asset quality remained strong as non-performing assets were
, representing$6.7 million 0.25% of total assets at March 31, 2024, compared to , representing$7.3 million 0.27% of total assets at December 31, 2023. The allowance for credit losses-loans was1.06% of total loans at March 31, 2024, unchanged from December 31, 2023.
Given that the merger with Partners Bancorp ("Partners") was completed on November 30, 2023 (the "Merger"), fourth quarter 2023 results do not represent a full quarter of comparable combined earnings. Reported results prior to the fourth quarter of 2023 reflect legacy LINKBANCORP results only.
"We are very pleased by the strong results of the first quarter of 2024, which represents the first full quarter following completion of our merger with Partners Bancorp," said Andrew Samuel, Chief Executive Officer of LINKBANCORP. "Following a very successful conversion during the fourth quarter, we have continued to make significant progress in integrating our institutions and executing on the actions needed to achieve the operational efficiencies and other benefits of this combination, including recognizing a
(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 first quarter of 2024 increased to
Noninterest income increased quarter-over-quarter to
Noninterest expense for the first quarter of 2024 was
Income tax expense was
(1) | See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure. |
Balance Sheet
Total assets were
Total loans increased
Cash and cash equivalents increased
Deposits at March 31, 2024 totaled
Shareholders' equity increased from
(1) | See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure. |
Asset Quality
In the first quarter of 2024, the Company recorded a provision for credit losses of
Asset quality metrics remain strong. As of March 31, 2024, the Company's non-performing assets were
The allowance for credit losses-loans was
Capital
The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of March 31, 2024. The Bank's Total Capital Ratio and Tier 1 Capital Ratio were
(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
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.
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LINKBANCORP, Inc. and Subsidiaries | ||||||||||
Consolidated Balance Sheet (Unaudited) | ||||||||||
March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||
(In Thousands, except share and per share data) | ||||||||||
ASSETS | ||||||||||
Noninterest-bearing cash equivalents | $ 13,552 | $ 13,089 | $ 5,447 | $ 4,736 | $ 4,545 | |||||
Interest-bearing deposits with other institutions | 158,731 | 67,101 | 62,532 | 118,438 | 47,190 | |||||
Cash and cash equivalents | 172,283 | 80,190 | 67,979 | 123,174 | 51,735 | |||||
Certificates of deposit with other banks | — | — | 249 | 498 | 745 | |||||
Securities available for sale, at fair value | 133,949 | 115,490 | 78,779 | 83,620 | 86,804 | |||||
Securities held to maturity, net of allowance for credit losses | 36,109 | 36,223 | 37,266 | 38,220 | 38,986 | |||||
Loans receivable, gross | 2,245,817 | 2,241,533 | 978,912 | 969,533 | 945,371 | |||||
Allowance for credit losses - loans | (23,842) | (23,767) | (9,964) | (10,228) | (10,526) | |||||
Loans receivable, net | 2,221,975 | 2,217,766 | 968,948 | 959,305 | 934,845 | |||||
Investments in restricted bank stock | 4,286 | 3,965 | 3,107 | 5,544 | 4,134 | |||||
Premises and equipment, net | 22,233 | 22,279 | 6,414 | 6,292 | 6,497 | |||||
Right-of-Use Asset – Premises | 14,663 | 15,598 | 9,727 | 9,896 | 10,058 | |||||
Bank-owned life insurance | 49,230 | 48,847 | 24,732 | 24,554 | 24,384 | |||||
Goodwill and other intangible assets | 81,494 | 82,701 | 36,715 | 36,774 | 36,833 | |||||
Deferred tax asset | 23,463 | 24,153 | 6,880 | 6,571 | 6,749 | |||||
Accrued interest receivable and other assets | 24,579 | 22,113 | 14,899 | 14,024 | 12,188 | |||||
TOTAL ASSETS | $ 2,784,264 | $ 2,669,325 | $ 1,255,695 | $ 1,308,472 | $ 1,213,958 | |||||
LIABILITIES | ||||||||||
Deposits: | ||||||||||
Demand, noninterest bearing | $ 653,719 | $ 655,953 | $ 210,404 | $ 240,729 | $ 204,495 | |||||
Interest bearing | 1,732,310 | 1,642,520 | 831,368 | 794,113 | 780,003 | |||||
Total deposits | 2,386,029 | 2,298,473 | 1,041,772 | 1,034,842 | 984,498 | |||||
Other Borrowings | 40,499 | 10,590 | 15,000 | 74,899 | 31,250 | |||||
Subordinated Debt | 61,573 | 61,444 | 40,354 | 40,398 | 40,441 | |||||
Lease liabilities | 15,445 | 16,464 | 9,728 | 9,896 | 10,058 | |||||
Accrued interest payable and other liabilities | 12,475 | 16,558 | 7,490 | 5,985 | 6,130 | |||||
TOTAL LIABILITIES | 2,516,021 | 2,403,529 | 1,114,344 | 1,166,020 | 1,072,377 | |||||
SHAREHOLDERS' EQUITY | ||||||||||
Preferred stock | — | — | — | — | — | |||||
Common stock | 369 | 369 | 162 | 162 | 250 | |||||
Surplus | 263,577 | 263,310 | 127,856 | 127,818 | 127,659 | |||||
Retained earnings | 7,724 | 4,843 | 19,062 | 19,039 | 18,911 | |||||
Accumulated other comprehensive loss | (3,427) | (3,209) | (5,729) | (4,567) | (5,239) | |||||
Total equity attributable to parent | 268,243 | 265,313 | 141,351 | 142,452 | 141,581 | |||||
Noncontrolling interest in consolidated subsidiary | — | 483 | — | — | — | |||||
TOTAL SHAREHOLDERS' EQUITY | 268,243 | 265,796 | 141,351 | 142,452 | 141,581 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,784,264 | $ 2,669,325 | $ 1,255,695 | $ 1,308,472 | $ 1,213,958 | |||||
Common shares outstanding | 37,348,151 | 37,340,700 | 16,235,871 | 16,228,440 | 16,221,692 | |||||
LINKBANCORP, Inc. and Subsidiaries | ||||||
Consolidated Statements of Operations (Unaudited) | ||||||
Three Months Ended | ||||||
3/31/2024 | 12/31/2023 | 3/31/2023 | ||||
(In Thousands, except share and per share data) | ||||||
INTEREST AND DIVIDEND INCOME | ||||||
Loans receivable, including fees | $ 36,125 | $ 21,461 | $ 11,762 | |||
Other | 2,650 | 1,642 | 1,228 | |||
Total interest and dividend income | 38,775 | 23,103 | 12,990 | |||
INTEREST EXPENSE | ||||||
Deposits | 11,847 | 7,445 | 4,517 | |||
Other Borrowings | 1,152 | 727 | 87 | |||
Subordinated Debt | 892 | 615 | 432 | |||
Total interest expense | 13,891 | 8,787 | 5,036 | |||
NET INTEREST INCOME BEFORE | 24,884 | 14,316 | 7,954 | |||
Provision for credit losses | 40 | 9,844 | 293 | |||
NET INTEREST INCOME AFTER | 24,844 | 4,472 | 7,661 | |||
NONINTEREST INCOME | ||||||
Service charges on deposit accounts | 780 | 385 | 199 | |||
Bank-owned life insurance | 383 | 250 | 140 | |||
Net realized losses on the sale of debt securities | — | — | (2,370) | |||
Gain on sale of loans | 50 | 166 | — | |||
Other | 516 | 374 | 178 | |||
Total noninterest income | 1,729 | 1,175 | (1,853) | |||
NONINTEREST EXPENSE | ||||||
Salaries and employee benefits | 11,118 | 8,262 | 4,120 | |||
Occupancy | 1,578 | 911 | 707 | |||
Equipment and data processing | 1,826 | 1,201 | 693 | |||
Professional fees | 748 | 536 | 381 | |||
FDIC insurance | 352 | 198 | 159 | |||
Bank Shares Tax | 591 | 323 | 278 | |||
Intangible amortization | 1,206 | 484 | 61 | |||
Merger & system conversion related expenses | 56 | 9,496 | 587 | |||
Other | 1,775 | 874 | 751 | |||
Total noninterest expense | 19,250 | 22,285 | 7,737 | |||
Income (loss) before income tax expense (benefit) | 7,323 | (16,638) | (1,929) | |||
Income tax expense (benefit) | 1,597 | (3,641) | (376) | |||
NET INCOME (LOSS) | $ 5,726 | $ (12,997) | $ (1,553) | |||
EARNINGS (LOSS) PER SHARE, BASIC | $ 0.15 | $ (0.56) | $ (0.10) | |||
EARNINGS (LOSS) PER SHARE, DILUTED | $ 0.15 | $ (0.56) | $ (0.10) | |||
WEIGHTED-AVERAGE COMMON SHARES | ||||||
BASIC | 36,962,005 | 23,063,202 | 15,480,951 | |||
DILUTED | 37,038,230 | 23,063,202 | 15,480,951 | |||
LINKBANCORP, Inc. and Subsidiaries | |||||||||
Financial Highlights (Unaudited) | |||||||||
For the Three Months Ended | |||||||||
('Dollars In Thousands, except per share data) | 3/31/2024 | 12/31/2023 | 3/31/2023 | ||||||
Operating Highlights | |||||||||
Net Income (loss) | $ 5,726 | $ (12,997) | $ (1,553) | ||||||
Net Interest Income | 24,884 | 14,316 | 7,954 | ||||||
Provision for Credit Losses | 40 | 9,844 | 293 | ||||||
Non-Interest Income | 1,729 | 1,175 | (1,853) | ||||||
Non-Interest Expense | 19,250 | 22,285 | 7,737 | ||||||
Earnings (loss) per Share, Basic | 0.15 | (0.56) | (0.10) | ||||||
Adjusted Earnings per Share, Basic (2) | 0.16 | 0.09 | 0.05 | ||||||
Earnings (loss) per Share, Diluted | 0.15 | (0.56) | (0.10) | ||||||
Adjusted Earnings per Share, Diluted (2) | 0.16 | 0.09 | 0.05 | ||||||
Selected Operating Ratios | |||||||||
Net Interest Margin | 4.03 % | 3.55 % | 2.95 % | ||||||
Annualized Return on Assets ("ROA") | 0.86 % | -2.96 % | -0.53 % | ||||||
Adjusted ROA2 | 0.86 % | 0.49 % | 0.27 % | ||||||
Annualized Return on Equity ("ROE") | 8.63 % | -28.24 % | -4.56 % | ||||||
Adjusted ROE2 | 8.70 % | 4.70 % | 2.30 % | ||||||
Efficiency Ratio | 72.33 % | 143.86 % | 126.82 % | ||||||
Adjusted Efficiency Ratio3 | 72.12 % | 82.56 % | 84.41 % | ||||||
Noninterest Income to Avg. Assets | 0.26 % | 0.27 % | -0.63 % | ||||||
Noninterest Expense to Avg. Assets | 2.88 % | 5.08 % | 2.65 % | ||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||
Financial Condition Data | |||||||||
Total Assets | $ 2,784,264 | $ 2,669,325 | $ 1,255,695 | $ 1,308,472 | $ 1,213,958 | ||||
Loans Receivable, Net | 2,221,975 | 2,217,766 | 968,948 | 959,305 | 934,845 | ||||
Noninterest-bearing Deposits | 653,719 | 655,953 | 210,404 | 240,729 | 204,495 | ||||
Interest-bearing Deposits | 1,732,310 | 1,642,520 | 831,368 | 794,113 | 780,003 | ||||
Total Deposits | 2,386,029 | 2,298,473 | 1,041,772 | 1,034,842 | 984,498 | ||||
Selected Balance Sheet Ratios | |||||||||
Total Capital Ratio1 | 11.04 % | 10.62 % | 12.92 % | 12.88 % | 13.53 % | ||||
Tier 1 Capital Ratio1 | 10.24 % | 9.92 % | 12.37 % | 12.29 % | 12.32 % | ||||
Common Equity Tier 1 Capital Ratio1 | 10.24 % | 9.92 % | 12.37 % | 12.29 % | 12.32 % | ||||
Leverage Ratio1 | 9.23 % | 14.13 % | 10.71 % | 10.41 % | 10.78 % | ||||
Tangible Common Equity to Tangible Assets4 | 6.91 % | 7.08 % | 8.58 % | 8.31 % | 8.90 % | ||||
Tangible Book Value per Share5 | $ 5.00 | $ 4.90 | $ 6.44 | $ 6.51 | $ 6.46 | ||||
Asset Quality Data | |||||||||
Non-performing Assets | $ 6,675 | $ 7,250 | $ 2,958 | $ 2,856 | $ 2,398 | ||||
Non-performing Assets to Total Assets | 0.25 % | 0.27 % | 0.24 % | 0.22 % | 0.20 % | ||||
Non-performing Loans to Total Loans | 0.30 % | 0.32 % | 0.30 % | 0.29 % | 0.25 % | ||||
Allowance for Credit Losses - Loans ("ACLL") | $ 23,842 | $ 23,767 | $ 9,964 | $ 10,228 | $ 10,526 | ||||
ACLL to Total Loans | 1.06 % | 1.06 % | 1.02 % | 1.05 % | 1.11 % | ||||
ACLL to Nonperforming Assets | 357.18 % | 327.82 % | 336.85 % | 358.12 % | 438.95 % | ||||
Net chargeoffs (recoveries) | $ 70 | $ 195 | $ (12) | $ (97) | $ (2) | ||||
(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 March 31, | ||||||||||||
2024 | 2023 | |||||||||||
(Dollars in thousands) | Avg Bal | Interest (2) | Yield/Rate | Avg Bal | Interest (2) | Yield/Rate | ||||||
Int. Earn. Cash | $ 82,420 | $ 898 | 4.38 % | $ 36,470 | $ 275 | 3.06 % | ||||||
Securities | ||||||||||||
Taxable (1) | 114,896 | 1,391 | 4.87 % | 81,899 | 653 | 3.23 % | ||||||
Tax-Exempt | 42,984 | 457 | 4.28 % | 38,368 | 377 | 3.98 % | ||||||
Total Securities | 157,880 | 1,848 | 4.71 % | 120,267 | 1,030 | 3.47 % | ||||||
Total Cash Equiv. and Investments | 240,300 | 2,746 | 4.60 % | 156,737 | 1,305 | 3.38 % | ||||||
Total Loans (3) | 2,240,714 | 36,125 | 6.48 % | 936,510 | 11,762 | 5.09 % | ||||||
Total Earning Assets | 2,481,014 | 38,871 | 6.30 % | 1,093,247 | 13,067 | 4.85 % | ||||||
Other Assets | 210,826 | 90,938 | ||||||||||
Total Assets | $ 2,691,840 | $ 1,184,185 | ||||||||||
Interest bearing demand | $ 424,781 | $ 1,942 | 1.84 % | $ 251,103 | $ 1,188 | 1.92 % | ||||||
Money market demand | 587,455 | 3,174 | 2.17 % | 245,563 | 1,350 | 2.23 % | ||||||
Time deposits | 608,192 | 6,731 | 4.45 % | 290,605 | 1,979 | 2.76 % | ||||||
Total Borrowings | 140,621 | 2,044 | 5.85 % | 49,246 | 519 | 4.27 % | ||||||
Total Interest-Bearing Liabilities | 1,761,049 | 13,891 | 3.17 % | 836,517 | 5,036 | 2.44 % | ||||||
Non Int Bearing Deposits | 632,637 | 192,135 | ||||||||||
Total Cost of Funds | $ 2,393,686 | $ 13,891 | 2.33 % | $ 1,028,652 | $ 5,036 | 1.99 % | ||||||
Other Liabilities | 31,359 | 17,508 | ||||||||||
Total Liabilities | $ 2,425,045 | $ 1,046,160 | ||||||||||
Shareholders' Equity | $ 266,795 | $ 138,025 | ||||||||||
Total Liabilities & Shareholders' Equity | $ 2,691,840 | $ 1,184,185 | ||||||||||
Net Interest Income/Spread (FTE) | 24,980 | 3.13 % | 8,031 | 2.41 % | ||||||||
Tax-Equivalent Basis Adjustment | (96) | (77) | ||||||||||
Net Interest Income | $ 24,884 | $ 7,954 | ||||||||||
Net Interest Margin | 4.03 % | 2.95 % |
(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 | ||||||||||||
March 31, 2024 | December 31, 2023 | |||||||||||
(Dollars in thousands) | Avg Bal | Interest (2) | Yield/Rate | Avg Bal | Interest (2) | Yield/Rate | ||||||
Int. Earn. Cash | $ 82,420 | $ 898 | 4.38 % | $ 63,572 | $ 405 | 2.53 % | ||||||
Securities | ||||||||||||
Taxable (1) | 114,896 | 1,391 | 4.87 % | 88,632 | 951 | 4.26 % | ||||||
Tax-Exempt | 42,984 | 457 | 4.28 % | 38,269 | 362 | 3.75 % | ||||||
Total Securities | 157,880 | 1,848 | 4.71 % | 126,901 | 1,313 | 4.10 % | ||||||
Total Cash Equiv. and Investments | 240,300 | 2,746 | 4.60 % | 190,473 | 1,718 | 3.58 % | ||||||
Total Loans (3) | 2,240,714 | 36,125 | 6.48 % | 1,411,129 | 21,461 | 6.03 % | ||||||
Total Earning Assets | 2,481,014 | 38,871 | 6.30 % | 1,601,602 | 23,179 | 5.74 % | ||||||
Other Assets | 210,826 | 138,537 | ||||||||||
Total Assets | $ 2,691,840 | $ 1,740,139 | ||||||||||
Interest bearing demand | $ 424,781 | $ 1,942 | 1.84 % | $ 328,342 | $ 1,746 | 2.11 % | ||||||
Money market demand | 587,455 | 3,174 | 2.17 % | 367,821 | 2,287 | 2.47 % | ||||||
Time deposits | 608,192 | 6,731 | 4.45 % | 348,580 | 3,412 | 3.88 % | ||||||
Total Borrowings | 140,621 | 2,044 | 5.85 % | 113,492 | 1,342 | 4.69 % | ||||||
Total Interest-Bearing Liabilities | 1,761,049 | 13,891 | 3.17 % | 1,158,235 | 8,787 | 3.01 % | ||||||
Non Int Bearing Deposits | 632,637 | 371,051 | ||||||||||
Total Cost of Funds | $ 2,393,686 | $ 13,891 | 2.33 % | $ 1,529,286 | $ 8,787 | 2.28 % | ||||||
Other Liabilities | 31,359 | 28,244 | ||||||||||
Total Liabilities | $ 2,425,045 | $ 1,557,530 | ||||||||||
Shareholders' Equity | $ 266,795 | $ 182,609 | ||||||||||
Total Liabilities & Shareholders' Equity | $ 2,691,840 | $ 1,740,139 | ||||||||||
Net Interest Income/Spread (FTE) | 24,980 | 3.13 % | 14,392 | 2.73 % | ||||||||
Tax-Equivalent Basis Adjustment | (96) | (76) | ||||||||||
Net Interest Income | $ 24,884 | $ 14,316 | ||||||||||
Net Interest Margin | 4.03 % | 3.55 % |
(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) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||
Agriculture and farmland loans | $ 67,359 | $ 65,861 | $ 50,584 | $ 50,552 | $ 53,301 | |||||
Construction loans | 194,391 | 178,483 | 65,836 | 75,628 | 67,934 | |||||
Commercial & industrial loans | 218,724 | 238,343 | 115,572 | 104,869 | 99,356 | |||||
Commercial real estate loans | ||||||||||
Multifamily | 190,146 | 180,788 | 111,853 | 113,254 | 111,461 | |||||
Owner occupied | 489,467 | 501,732 | 160,929 | 154,520 | 151,407 | |||||
Non-owner occupied | 589,731 | 580,972 | 257,344 | 254,691 | 249,638 | |||||
Residential real estate loans | ||||||||||
First liens | 403,300 | 402,433 | 172,481 | 170,271 | 166,478 | |||||
Second liens and lines of credit | 71,060 | 70,747 | 27,870 | 30,148 | 30,720 | |||||
Consumer and other loans | 16,810 | 16,756 | 11,869 | 11,308 | 10,472 | |||||
Municipal loans | 4,473 | 5,244 | 4,137 | 3,929 | 4,292 | |||||
2,245,461 | 2,241,359 | 978,475 | 969,170 | 945,059 | ||||||
Deferred costs | 356 | 174 | 437 | 363 | 312 | |||||
Total loans receivable | $ 2,245,817 | $ 2,241,533 | $ 978,912 | $ 969,533 | $ 945,371 | |||||
LINKBANCORP, Inc. and Subsidiaries | ||||||||
Investments in Securities Detail (Unaudited) | ||||||||
March 31, 2024 | ||||||||
(In Thousands) | Amortized | Net | Fair | |||||
Available for Sale: | ||||||||
US Government Agency securities | $ 12,743 | $ 106 | $ 12,849 | |||||
US Government Treasury securities | 4,942 | 2 | 4,944 | |||||
Obligations of state and political subdivisions | 49,231 | (3,264) | 45,967 | |||||
Mortgage-backed securities in government-sponsored entities | 71,276 | (3,316) | 67,960 | |||||
Other securities | 2,250 | (21) | 2,229 | |||||
$ 140,442 | $ (6,493) | $ 133,949 | ||||||
Amortized | Net Unrealized Gains | Fair Value | Allowance for | |||||
Held to Maturity: | ||||||||
Corporate debentures | $ 15,000 | $ (1,455) | $ 13,545 | $ (507) | ||||
Structured mortgage-backed securities | 21,616 | (892) | 20,724 | - | ||||
$ 36,616 | $ (2,347) | $ 34,269 | $ (507) | |||||
December 31, 2023 | ||||||||
(In Thousands) | Amortized | Net | Fair | |||||
Available for Sale: | ||||||||
US Government Agency securities | $ 12,711 | $ 274 | $ 12,985 | |||||
US 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 | Net Unrealized Gains | Fair Value | Allowance for | |||||
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) | |||||
LINKBANCORP, Inc. and Subsidiaries | ||||||||||
Deposits Detail (Unaudited) | ||||||||||
(In Thousands) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||
Demand, noninterest-bearing | $ 653,719 | $ 655,953 | $ 210,404 | $ 240,729 | $ 204,495 | |||||
Demand, interest-bearing | 447,412 | 438,765 | 273,673 | 237,114 | 250,944 | |||||
Money market and savings | 591,982 | 577,448 | 258,334 | 254,632 | 241,858 | |||||
Time deposits, | 147,898 | 134,324 | 51,563 | 57,194 | 51,855 | |||||
Time deposits, other | 398,365 | 372,572 | 172,798 | 185,121 | 165,310 | |||||
Brokered deposits | 146,653 | 119,411 | 75,000 | 60,052 | 70,036 | |||||
$ 2,386,029 | $ 2,298,473 | $ 1,041,772 | $ 1,034,842 | $ 984,498 | ||||||
Average Deposits Detail, for the Three Months Ended (Unaudited) | ||||||||||
(In Thousands) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||
Demand, noninterest-bearing | $ 632,637 | $ 371,051 | $ 209,054 | $ 209,072 | $ 192,135 | |||||
Demand, interest-bearing | 424,781 | 328,342 | 254,725 | 243,539 | 251,103 | |||||
Money market and savings | 587,455 | 367,821 | 254,849 | 244,355 | 245,563 | |||||
Time deposits | 518,929 | 317,747 | 236,869 | 236,059 | 212,478 | |||||
Brokered deposits | 89,263 | 30,832 | 28,705 | 63,339 | 78,127 | |||||
$ 2,253,065 | $ 1,415,793 | $ 984,202 | $ 996,364 | $ 979,406 | ||||||
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
Adjusted Return on Average Assets | |||||
For the Three Months Ended | |||||
(Dollars in thousands) | 3/31/2024 | 12/31/2023 | 3/31/2023 | ||
Net income (loss) | $ 5,726 | $ (12,997) | $ (1,553) | ||
Average assets | 2,691,840 | 1,740,139 | 1,184,185 | ||
Return on average assets (annualized) | 0.86 % | -2.96 % | -0.53 % | ||
Net income (loss) | 5,726 | (12,997) | (1,553) | ||
Net losses on sale of securities | - | - | 2,370 | ||
Tax effect at | - | - | (498) | ||
Merger & system conversion related expenses | 56 | 9,496 | 587 | ||
Tax effect at | (12) | (1,994) | (123) | ||
Non-purchase credit deteriorated provision for credit losses | - | 9,694 | - | ||
Tax effect at | - | (2,036) | - | ||
Adjusted Net Income (Non-GAAP) | 5,770 | 2,163 | 783 | ||
Average assets | 2,691,840 | 1,740,139 | 1,184,185 | ||
Adjusted return on average assets (annualized) (Non-GAAP) | 0.86 % | 0.49 % | 0.27 % | ||
Adjusted Return on Average Shareholders' Equity | |||||
For the Three Months Ended | |||||
(Dollars in thousands) | 3/31/2024 | 12/31/2023 | 3/31/2023 | ||
Net income (loss) | $ 5,726 | $ (12,997) | $ (1,553) | ||
Average shareholders' equity | 266,795 | 182,609 | 138,025 | ||
Return on average shareholders' equity (annualized) | 8.63 % | -28.24 % | -4.56 % | ||
Net income (loss) | 5,726 | (12,997) | (1,553) | ||
Net losses (gains) on sale of securities | - | - | 2,370 | ||
Tax effect at | - | - | (498) | ||
Merger & system conversion related expenses | 56 | 9,496 | 587 | ||
Tax effect at | (12) | (1,994) | (123) | ||
Non-purchase credit deteriorated provision for credit losses | - | 9,694 | - | ||
Tax effect at | - | (2,036) | - | ||
Adjusted Net Income (Non-GAAP) | 5,770 | 2,163 | 783 | ||
Average shareholders' equity | 266,795 | 182,609 | 138,025 | ||
Adjusted return on average shareholders' equity (annualized) (Non-GAAP) | 8.70 % | 4.70 % | 2.30 % | ||
Adjusted Efficiency Ratio | |||||
For the Three Months Ended | |||||
(Dollars in thousands) | 3/31/2024 | 12/31/2023 | 3/31/2023 | ||
GAAP-based efficiency ratio | 72.33 % | 143.86 % | 126.82 % | ||
Net interest income | $ 24,884 | $ 14,316 | $ 7,954 | ||
Noninterest income | 1,729 | 1,175 | (1,853) | ||
Less: net gains (losses) on sales of securities | - | - | (2,370) | ||
Adjusted revenue (Non-GAAP) | 26,613 | 15,491 | 8,471 | ||
Total noninterest expense | 19,250 | 22,285 | 7,737 | ||
Less: Merger & system conversion related expenses | 56 | 9,496 | 587 | ||
Adjusted non-interest expense | 19,194 | 12,789 | 7,150 | ||
Efficiency ratio, as adjusted (Non-GAAP) | 72.12 % | 82.56 % | 84.41 % | ||
Adjusted Earnings Per Share | |||||
For the Three Months Ended | |||||
(Dollars in thousands, except per share data) | 3/31/2024 | 12/31/2023 | 3/31/2023 | ||
GAAP-Based Earnings (Loss) Per Share, Basic | $ 0.15 | $ (0.56) | $ (0.10) | ||
GAAP-Based Earnings (Loss) Per Share, Diluted | $ 0.15 | $ (0.56) | $ (0.10) | ||
Net Income (Loss) | $ 5,726 | $ (12,997) | $ (1,553) | ||
Net losses on sale of securities | - | - | 2,370 | ||
Tax effect at | - | - | (498) | ||
Merger & system conversion related expenses | 56 | 9,496 | 587 | ||
Tax effect at | (12) | (1,994) | (123) | ||
Non-purchase credit deteriorated provision for credit losses | - | 9,694 | - | ||
Tax effect at | - | (2,036) | - | ||
Adjusted Net Income (Non-GAAP) | 5,770 | 2,163 | 783 | ||
Adjusted Earnings per Share, Basic (Non-GAAP) | $ 0.16 | $ 0.09 | $ 0.05 | ||
Adjusted Earnings per Share, Diluted (Non-GAAP) | $ 0.16 | $ 0.09 | $ 0.05 | ||
Tangible Common Equity and Tangible Book Value | ||||||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | ||||||
Tangible Common Equity | (Dollars in thousands, except for share data) | |||||||||
Total shareholders' equity | $ 268,243 | $ 265,796 | $ 141,351 | $ 142,452 | $ 141,581 | |||||
Adjustments: | ||||||||||
Goodwill | (56,968) | (56,968) | (35,842) | (35,842) | (35,842) | |||||
Other intangible assets | (24,526) | (25,733) | (873) | (932) | (991) | |||||
Tangible common equity (Non-GAAP) | $ 186,749 | $ 183,095 | $ 104,636 | $ 105,678 | $ 104,748 | |||||
Common shares outstanding | 37,348,151 | 37,340,700 | 16,235,871 | 16,228,440 | 16,221,692 | |||||
Book value per common share | $ 7.18 | $ 7.12 | $ 8.71 | $ 8.78 | $ 8.73 | |||||
Tangible book value per common share | $ 5.00 | $ 4.90 | $ 6.44 | $ 6.51 | $ 6.46 | |||||
Tangible Assets | ||||||||||
Total assets | $ 2,784,264 | $ 2,669,325 | $ 1,255,695 | $ 1,308,472 | $ 1,213,958 | |||||
Adjustments: | ||||||||||
Goodwill | (56,968) | (56,968) | (35,842) | (35,842) | (35,842) | |||||
Other intangible assets | (24,526) | (25,733) | (873) | (932) | (991) | |||||
Tangible assets (Non-GAAP) | $ 2,702,770 | $ 2,586,624 | $ 1,218,980 | $ 1,271,698 | $ 1,177,125 | |||||
Tangible common equity to tangible assets (Non-GAAP) | 6.91 % | 7.08 % | 8.58 % | 8.31 % | 8.90 % | |||||
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP) | |||||
For the Three Months Ended | |||||
(Dollars in thousands, except per share data) | 3/31/2024 | 12/31/2023 | 3/31/2023 | ||
Net Income (Loss) - GAAP | $ 5,726 | $ (12,997) | $ (1,553) | ||
Net losses on sale of securities | - | - | 2,370 | ||
Tax effect at | - | - | (498) | ||
Merger & system conversion related expenses | 56 | 9,496 | 587 | ||
Tax effect at | (12) | (1,994) | (123) | ||
Adjusted Net Income (Loss) (Non-GAAP) | 5,770 | (5,495) | 783 | ||
Income tax expense (benefit) | 1,597 | (3,641) | (376) | ||
Provision for credit losses | 40 | 9,844 | 293 | ||
Tax effect included in Adjusted Net Income | 12 | 1,994 | 621 | ||
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP) | $ 7,419 | $ 2,702 | $ 1,321 | ||
Contact:
Nicole Davis
Corporate and Investor Relations Officer
717.803.8895
IR@LINKBANCORP.COM
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