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

Rhea-AI Summary

LINKBANCORP (NASDAQ: LNKB) reported record Q4 2024 net income of $7.6 million ($0.20 per diluted share), up from $7.1 million in Q3 2024. Full-year 2024 net income reached $26.2 million ($0.71 per diluted share). The company declared a quarterly dividend of $0.075 per share, payable March 14, 2025.

Key Q4 highlights include: net interest margin expansion to 3.85%, total deposits growth to $2.36 billion (7.36% YoY), and total loans increase to $2.26 billion (5.99% YoY). The efficiency ratio improved to 65.04% from 66.71% in Q3. The company's pending sale of New Jersey branches to American Heritage Federal Credit Union is expected to close in Q1 2025.

Asset quality remained stable with non-performing assets at 0.60% of total assets. The allowance for credit losses-loans was $26.4 million, representing 1.17% of total loans held for investment.

Positive

• Record Q4 net income of $7.6 million, up from $7.1 million in Q3 2024
• Net interest margin expanded to 3.85% from 3.82% in Q3 2024
• Total deposits increased 7.36% YoY to $2.36 billion
• Total loans grew 5.99% YoY to $2.26 billion
• Efficiency ratio improved to 65.04% from 66.71% in Q3 2024
• Tangible book value per share increased 9.4% annually to $5.36

Negative

• Noninterest income decreased from $2.7M in Q3 to $2.6M in Q4 2024
• Past due loans (30-89 days) increased to 0.21% from 0.12% in Q3 2024
• Total deposits decreased slightly quarter-over-quarter

Insights

Financial Analyst

LINKBANCORP's Q4 2024 results reveal a compelling growth trajectory and successful execution of strategic initiatives. The record net income of $7.6 million showcases operational strength, while the 3.85% net interest margin expansion amid challenging rate environments demonstrates effective balance sheet management.

Three key developments warrant investor attention:

• The strategic divestiture of New Jersey branches to American Heritage Federal Credit Union positions LINKBANCORP for improved operational efficiency and geographic focus.
• The efficiency ratio improvement to 65.04% from 72.33% in Q1 2024 reflects successful cost management and merger synergy realization.
• The $0.075 quarterly dividend declaration signals management's confidence in sustained earnings power.

The bank's capital position remains robust with Total Capital Ratio at 11.55%, well above regulatory requirements. The 9.4% annual growth in tangible book value per share to $5.36 indicates strong organic capital generation. Asset quality metrics remain healthy, with stable non-performing assets and adequate loan loss reserves at 1.17% of total loans.

The 5.99% year-over-year loan growth and 7.36% deposit growth demonstrate the bank's ability to expand its core business while maintaining disciplined credit standards. The high proportion of noninterest-bearing deposits at 28.0% provides a stable funding base in the current rate environment.

HARRISBURG, Pa., Jan. 27, 2025 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank") reported record net income of $7.6 million, or $0.20 per diluted share, for the quarter ended December 31, 2024, compared to net income of $7.1 million, or $0.19 per diluted share, for the quarter ended September 30, 2024.  Excluding expenses associated with the pending sale of its New Jersey branches and branch consolidations, adjusted earnings were $7.6 million¹, or $0.21¹ per diluted share for the fourth quarter of 2024, compared with $7.2 million¹, or $0.19¹ per diluted share for the third quarter of 2024. Net income for the year ended December 31, 2024 was $26.2 million, or $0.71 per diluted share. Excluding merger and restructuring related expenses, adjusted net income was $26.9¹ million, or $0.73¹ per diluted share for the year ended December 31, 2024.

Additionally, the Company announced that the Board of Directors declared a quarterly cash dividend of $0.075 per share of common stock which is expected to be paid on March 14, 2025 to shareholders of record on February 28, 2025.

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

Fourth Quarter 2024 Highlights

• Annualized return on average assets was 1.06% for the fourth quarter of 2024, compared to 1.00% for the third quarter of 2024. Adjusted return on average assets was 1.07%¹ for the fourth quarter of 2024, compared to 1.02%¹ for the third quarter of 2024.
• Excluding deposits held for sale, total deposits² increased $161.8 million, or 7.36%, from $2.20 billion at December 31, 2023 to $2.36 billion at December 31, 2024. While total deposits decreased slightly quarter over quarter, average deposits² grew $26.9 million from $2.35 billion for the quarter ended September 30, 2024 to $2.38 billion for the quarter ended December 31, 2024. Excluding loans held for sale, total loans² increased $127.5 million, or 5.99% from $2.13 billion at December 31, 2023 to $2.26 billion at December 31, 2024.
• Net interest margin expanded to 3.85% for the fourth quarter of 2024 from 3.82% for the third quarter of 2024. For the full year, net interest margin expanded 79 basis points to 3.88% for the year ended December 31, 2024 from 3.09% for the year ended December 31, 2023.
• Net interest income before provision for credit losses improved to $25.5 million for the fourth quarter of 2024 compared to $25.0 million for the third quarter of 2024.
• Noninterest expense decreased $150 thousand quarter over quarter to $18.3 million for the fourth quarter of 2024. The Company's efficiency ratio continued to improve to 65.04% for the fourth quarter of 2024 compared to 66.71% for the third quarter of 2024 and 72.33% for the first quarter of 2024 as the Company continues to execute on post-merger cost-saving initiatives.
• On May 9, 2024, the Company announced that LINKBANK had entered into a definitive purchase and assumption agreement for the sale of the Bank's banking operations and three branches in New Jersey, including related loans and deposits (the "Branch Sale") to American Heritage Federal Credit Union. The Federal Deposit Insurance Corporation ("FDIC") has approved the Branch Sale and the transaction is expected to close in the first quarter of 2025, subject to customary closing conditions, including regulatory approval from the National Credit Union Administration ("NCUA").

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

2 Total loans and total deposits include balances held for sale in the Branch Sale of $91.8 million and $93.6 million, respectively, at December 31, 2024.  These balances were $102.3 million and $94.0 million respectively at September 30, 2024.  Average deposits include deposits held for sale in the Branch Sale.

As a result of the Branch Sale announcement, associated loans and deposits were reclassified as held for sale, impacting the Company's allowance for credit losses and purchase accounting amortization related to the loans held for sale. 

"We are very pleased to announce record earnings for both the fourth quarter and the full year 2024, after a full year of implementing and executing on strategic initiatives to improve our performance. Our teams have continued to focus on reducing costs, generating additional fee income and growing interest income with solid growth in quality loans and core deposits throughout the year," said Andrew Samuel, Chief Executive Officer of LINKBANCORP.  "As we move into 2025, we are excited to continue to leverage the talent we have in place with an emphasis on operational efficiency and further earnings growth."

Income Statement
Net interest income before the provision for credit losses for the fourth quarter of 2024 was $25.5 million compared to $25.0 million in the third quarter of 2024. Net interest margin expanded to 3.85% for the fourth quarter of 2024 compared to 3.82% for the third quarter of 2024.  The improvement in net interest margin was driven by a 10 basis points decrease in cost of funds to 2.32% for the fourth quarter of 2024 compared to 2.42% for the third quarter of 2024, while the average yield on interest earning assets decreased seven basis points to 6.09% for the fourth quarter of 2024 from 6.16% for the third quarter of 2024 due to the cut in the target federal funds rate.

Noninterest income decreased slightly quarter-over-quarter to $2.6 million for the fourth quarter of 2024 compared to $2.7 million for the third quarter of 2024, as decreases in swap fee income and gain on sale of loans were partially offset by continued growth in service charges on deposit accounts. 

Noninterest expense for the fourth quarter of 2024 was $18.3 million compared to $18.5 million for the third quarter of 2024.  Excluding one-time costs associated with the Branch Sale and branch consolidations of $56 thousand in the fourth quarter of 2024 and $171 thousand in the third quarter of 2024, adjusted noninterest expense was generally flat at $18.3 million¹ for the third and fourth quarter of 2024, as increases in salaries and employee benefits and equipment and data processing costs were offset by decreases in professional fees and FDIC deposit insurance and supervisory fees. The increase in salaries and employee benefits was primarily related to a $250 thousand expense resulting from a change in paid time off (PTO) accrual policy.   

Income tax expense was $2.1 million for the fourth quarter of 2024, reflecting an effective tax rate of 21.9%.

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

Balance Sheet
Total assets were $2.88 billion at December 31, 2024 compared to $2.88 billion at September 30, 2024 and $2.67 billion at December 31, 2023.  Deposits and net loans as of December 31, 2024 totaled $2.36 billion and $2.23 billion, respectively, compared to deposits and net loans of $2.37 billion and $2.19 billion, respectively, at September 30, 2024 and $2.20 billion and $2.10 billion, respectively, at December 31, 2023.  Deposits and net loans exclude balances held for sale in the Branch Sale of $93.6 million and $91.8 million, respectively, at December 31, 2024, which are reflected in liabilities held for sale and assets held for sale.  These balances were $94.0 million and $102.3 million respectively, at September 30, 2024.

Including loans held for sale, total loans increased $29.4 million, from $2.32 billion at September 30, 2024 to $2.35 billion at December 31, 2024.  Total commercial loan commitments for the fourth quarter of 2024 were $176.3 million with funded balances of $93.7 million. The average commercial loan commitment originated during the fourth quarter of 2024 totaled approximately $979 thousand with an average outstanding funded balance of $521 thousand.

Including deposits held for sale, total deposits at December 31, 2024 totaled $2.45 billion, a decrease of $12.5 million from $2.47 billion at September 30, 2024.  Average deposits increased $26.9 million from $2.35 billion for the quarter ended September 30, 2024 to $2.38 billion for the quarter ended December 31, 2024. Noninterest bearing deposits totaled $686.5 million at December 31, 2024, representing 28.0% of total deposits.

The Company continues to focus on maintaining strong on-balance sheet liquidity, as cash and cash equivalents increased to $166.1 million at December 31, 2024 compared to $80.2 million at December 31, 2023.

Shareholders' equity increased from $277.4 million at September 30, 2024 to $280.2 million at December 31, 2024 primarily as a result of a $4.8 million increase in retained earnings offset by a $2.3 million increase in accumulated other comprehensive loss resulting from the rate environment.  Book value per share increased to $7.50 at December 31, 2024 compared to $7.42 at September 30, 2024.  Tangible book value per share increased to $5.36 at December 31, 2024 compared to $5.26 at September 30, 2024 and $4.90 at December 31, 2023¹, representing 9.4% annual growth.

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

Asset Quality
The Company recorded a $132 thousand provision for credit losses during the fourth quarter of 2024, after recording a $84 thousand provision for credit losses in the third quarter of 2024.  

As of December 31, 2024, the Company's non-performing assets were $17.2 million, representing 0.60% of total assets, compared to $17.4 million, representing 0.60% of total assets at September 30, 2024.

Loans 30-89 days past due at December 31, 2024 were $4.6 million, representing 0.21% of total loans compared to $2.7 million or 0.12% of total loans at September 30, 2024 and $4.7 million or 0.22% of total loans at December 31, 2023.

The allowance for credit losses-loans was $26.4 million, or 1.17% of total loans held for investment at December 31, 2024, compared to $26.5 million, or 1.20% of total loans held for investment at September 30, 2024.  The allowance for credit losses-loans to nonperforming assets ratio was 153.95% at December 31, 2024, compared to 152.73% at September 30, 2024.

Capital
The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of December 31, 2024. The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 11.55% and 10.74% respectively, at December 31, 2024, compared to 11.44% and 10.62%, respectively, at September 30, 2024 and 10.62% and 9.92%, respectively, at December 31, 2023. The Company's ratio of Tangible Common Equity to Tangible Assets was 7.16%¹ at December 31, 2024.

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 26 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 Partners Merger; the timing and receipt of regulatory approvals to complete the Branch Sale; 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
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LINKBANCORP, Inc. and Subsidiaries
Consolidated Balance Sheet (Unaudited)
		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
(In Thousands, except share and per share data)
ASSETS
Noninterest-bearing cash equivalents		$                     13,834		$              15,295		$        14,516		$             13,552		$                  13,089
Interest-bearing deposits with other institutions		152,266		175,937		167,141		158,731		67,101
Cash and cash equivalents		166,100		191,232		181,657		172,283		80,190
Securities available for sale, at fair value		145,590		149,315		140,121		133,949		115,490
Securities held to maturity, net of allowance for credit losses		31,508		34,155		35,343		36,109		36,223
Loans receivable, gross		2,255,749		2,215,868		2,193,197		2,129,919		2,128,284
Allowance for credit losses - loans		(26,435)		(26,542)		(26,288)		(23,842)		(23,767)
Loans receivable, net		2,229,314		2,189,326		2,166,909		2,106,077		2,104,517
Investments in restricted bank stock		5,209		4,904		4,928		4,286		3,965
Premises and equipment, net		18,029		17,623		18,364		20,102		20,130
Right-of-Use Asset – premises		14,913		14,150		13,970		14,577		15,497
Bank-owned life insurance		52,079		51,646		49,616		49,230		48,847
Goodwill and other intangible assets		79,761		80,924		82,129		81,494		82,701
Deferred tax asset		22,280		21,662		22,024		22,717		24,153
Assets held for sale		94,146		104,660		118,362		118,115		115,499
Accrued interest receivable and other assets		22,405		20,344		25,170		26,730		22,113
TOTAL ASSETS		$                2,881,334		$         2,879,941		$   2,858,593		$        2,785,669		$             2,669,325
LIABILITIES
Deposits:
Demand, noninterest bearing		$                   658,646		$            658,473		$      661,292		$           618,277		$                624,780
Interest bearing		1,701,936		1,714,179		1,699,220		1,662,124		1,574,019
Total deposits		2,360,582		2,372,652		2,360,512		2,280,401		2,198,799
Long-term borrowings		40,000		40,000		40,000		40,000		—
Short-term borrowings		10,000		—		—		—		10,000
Note payable		565		572		578		584		590
Subordinated debt		61,984		61,843		61,706		61,573		61,444
Lease liabilities		15,666		14,911		14,746		15,357		16,361
Liabilities held for sale		93,777		94,228		96,916		105,716		99,777
Accrued interest payable and other liabilities		18,539		18,382		12,726		13,795		16,558
TOTAL LIABILITIES		2,601,113		2,602,588		2,587,184		2,517,426		2,403,529
SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		370		370		370		369		369
Surplus		264,449		264,059		263,795		263,577		263,310
Retained earnings		19,947		15,147		10,826		7,724		4,843
Accumulated other comprehensive loss		(4,545)		(2,223)		(3,582)		(3,427)		(3,209)
Total equity attributable to parent		280,221		277,353		271,409		268,243		265,313
Noncontrolling interest in consolidated subsidiary		—		—		—		—		483
TOTAL SHAREHOLDERS' EQUITY		280,221		277,353		271,409		268,243		265,796
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$                2,881,334		$         2,879,941		$   2,858,593		$        2,785,669		$             2,669,325
Common shares outstanding		37,370,917		37,361,560		37,356,278		37,348,151		37,340,700

 

LINKBANCORP, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
		Three Months Ended							Twelve Months Ended
		12/31/2024		9/30/2024		12/31/2023				12/31/2024		12/31/2023
(In Thousands, except share and per share data)
INTEREST AND DIVIDEND INCOME
Loans receivable, including fees		$          37,082		$         36,856		$           21,461				$        146,175		$           58,791
Other		3,224		3,338		1,642				12,549		6,407
Total interest and dividend income		40,306		40,194		23,103				158,724		65,198
INTEREST EXPENSE
Deposits		12,823		13,292		7,445				51,033		22,638
Other Borrowings		962		949		727				3,929		1,923
Subordinated Debt		976		972		615				3,868		1,926
Total interest expense		14,761		15,213		8,787				58,830		26,487
NET INTEREST INCOME BEFORE    PROVISION FOR CREDIT LOSSES		25,545		24,981		14,316				99,894		38,711
Provision for credit losses		132		84		9,844				257		9,295
NET INTEREST INCOME AFTER    PROVISION FOR CREDIT LOSSES		25,413		24,897		4,472				99,637		29,416
NONINTEREST INCOME
Service charges on deposit accounts		1,339		1,052		385				4,036		978
Bank-owned life insurance		433		430		250				1,633		738
Net realized gains (losses) on the sale of debt securities		—		—		—				4		(2,370)
Gain on sale of loans		70		138		166				270		465
Other		752		1,060		374				2,919		1,276
Total noninterest income		2,594		2,680		1,175				8,862		1,087
NONINTEREST EXPENSE
Salaries and employee benefits		10,147		9,855		8,262				41,061		20,612
Occupancy		1,368		1,440		911				5,945		3,015
Equipment and data processing		1,884		1,640		1,201				7,174		3,720
Professional fees		531		763		536				2,830		1,698
FDIC insurance and supervisory fees		687		812		198				2,396		817
Bank Shares Tax		693		752		323				2,796		1,158
Intangible amortization		1,162		1,205		484				4,778		663
Merger & restructuring expenses		56		171		9,496				914		11,176
Advertising		128		163		61				633		329
Other		1,646		1,651		813				6,377		2,644
Total noninterest expense		18,302		18,452		22,285				74,904		45,832
Income (loss) before income tax expense		9,705		9,125		(16,638)				33,595		(15,329)
Income tax expense (benefit)		2,121		2,030		(3,641)				7,386		(3,361)
NET  INCOME (LOSS)		$            7,584		$           7,095		$         (12,997)				$          26,209		$         (11,968)
EARNINGS (LOSS) PER SHARE, BASIC		$              0.20		$             0.19		$             (0.56)				$              0.71		$             (0.67)
EARNINGS (LOSS)  PER SHARE, DILUTED		$              0.20		$             0.19		$             (0.56)				$              0.71		$             (0.67)
WEIGHTED-AVERAGE COMMON SHARES    OUTSTANDING,
BASIC		37,045,701		36,983,637		23,063,202				36,990,672		17,753,914
DILUTED		37,166,107		37,090,111		23,063,202				37,105,614		17,753,914

 

LINKBANCORP, Inc. and Subsidiaries
Financial Highlights (Unaudited)
	For the Three Months Ended						For the Twelve Months Ended
(Dollars In Thousands, except per share data)	12/31/2024		9/30/2024		12/31/2023		12/31/2024		12/31/2023
Operating Highlights
Net Income (loss)	$        7,584		$           7,095		$              (12,997)		$              26,209		$          (11,968)
Net Interest Income	25,545		24,981		14,316		99,894		38,711
Provision for Credit Losses	132		84		9,844		257		9,295
Non-Interest Income	2,594		2,680		1,175		8,862		1,087
Non-Interest Expense	18,302		18,452		22,285		74,904		45,832
Earnings (loss) per Share, Basic	0.20		0.19		(0.56)		0.71		(0.67)
Adjusted Earnings per Share, Basic (2)	0.21		0.20		0.09		0.73		0.36
Earnings (loss) per Share, Diluted	0.20		0.19		(0.56)		0.71		(0.67)
Adjusted Earnings per Share, Diluted (2)	0.21		0.19		0.09		0.73		0.36
Selected Operating Ratios
Net Interest Margin	3.85 %		3.82 %		3.55 %		3.88 %		3.09 %
Annualized Return on Assets ("ROA")	1.06 %		1.00 %		-2.96 %		0.94 %		-0.88 %
Adjusted ROA2	1.07 %		1.02 %		0.49 %		0.97 %		0.47 %
Annualized Return on Equity ("ROE")	10.82 %		10.30 %		-28.24 %		9.62 %		-7.88 %
Adjusted ROE2	10.88 %		10.50 %		4.70 %		9.89 %		4.21 %
Efficiency Ratio	65.04 %		66.71 %		143.86 %		68.87 %		115.16 %
Adjusted Efficiency Ratio3	64.84 %		66.09 %		82.56 %		68.04 %		82.19 %
Noninterest Income to Avg. Assets	0.36 %		0.38 %		0.27 %		0.43 %		0.08 %
Noninterest Expense to Avg. Assets	2.56 %		2.61 %		5.08 %		3.60 %		3.38 %
	12/31/2024		9/30/2024		6/30/2024		3/31/2024		12/31/2023
Financial Condition Data
Total Assets	$ 2,881,334		$     2,879,941		$           2,858,593		$         2,785,669		$       2,669,325
Loans Receivable, Net	2,229,314		2,189,326		2,166,909		2,106,077		2,104,517
Noninterest-bearing Deposits	658,646		658,473		661,292		618,277		624,780
Interest-bearing Deposits	1,701,936		1,714,179		1,699,220		1,662,124		1,574,019
Total Deposits	2,360,582		2,372,652		2,360,512		2,280,401		2,198,799
Selected Balance Sheet Ratios
Total Capital Ratio1	11.55 %		11.44 %		11.09 %		11.04 %		10.62 %
Tier 1 Capital Ratio1	10.74 %		10.62 %		10.30 %		10.24 %		9.92 %
Common Equity Tier 1 Capital Ratio1	10.74 %		10.62 %		10.30 %		10.24 %		9.92 %
Leverage Ratio1	9.49 %		9.41 %		9.17 %		9.23 %		14.13 %
Tangible Common Equity to Tangible Assets4	7.16 %		7.02 %		6.82 %		6.91 %		7.08 %
Tangible Book Value per Share5	$          5.36		$             5.26		$                   5.07		$                 5.00		$               4.90
Asset Quality Data
Non-performing Assets	$      17,171		$         17,378		$               10,589		$               6,675		$             7,250
Non-performing Assets to Total Assets	0.60 %		0.60 %		0.37 %		0.24 %		0.27 %
Non-performing Loans to Total Loans	0.76 %		0.78 %		0.48 %		0.31 %		0.34 %
Allowance for Credit Losses - Loans ("ACLL")	$      26,435		$         26,542		$               26,288		$              23,842		$           23,767
ACLL to Total Loans6	1.17 %		1.20 %		1.20 %		1.06 %		1.06 %
ACLL to Nonperforming Assets	153.95 %		152.73 %		248.26 %		357.18 %		327.82 %
Net chargeoffs (recoveries)	$           252		$              (28)		$                    (20)		$                    70		$                195

(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.

(6) - The historical ratios have not been recast for the reclassification of loans held for sale.

 

LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Quarter-To-Date (Unaudited)
		For the Three Months Ended December 31,
		2024						2023
(Dollars in thousands)		Avg Bal		Interest (2)		Yield/Rate		Avg Bal		Interest (2)		Yield/Rate
Int. Earn. Cash		$                128,802		$                    1,300		4.02 %		$                  63,572		$                       405		2.53 %
Securities
Taxable (1)		138,168		1,540		4.43 %		88,632		951		4.26 %
Tax-Exempt		44,958		486		4.30 %		38,269		362		3.75 %
Total Securities		183,126		2,026		4.40 %		126,901		1,313		4.10 %
Total Cash Equiv. and Investments		311,928		3,326		4.24 %		190,473		1,718		3.58 %
Total Loans (3)(4)		2,327,829		37,082		6.34 %		1,411,129		21,461		6.03 %
Total Earning Assets		2,639,757		40,408		6.09 %		1,601,602		23,179		5.74 %
Other Assets		202,693						138,537
Total Assets		$             2,842,450						$             1,740,139
Interest bearing demand(5)		$                537,856		$                    3,043		2.25 %		$                328,342		$                    1,746		2.11 %
Money market demand(5)		567,593		3,139		2.20 %		367,821		2,287		2.47 %
Time deposits(5)		607,231		6,641		4.35 %		348,580		3,412		3.88 %
Total Borrowings		153,117		1,938		5.04 %		113,492		1,342		4.69 %
Total Interest-Bearing Liabilities		1,865,797		14,761		3.15 %		1,158,235		8,787		3.01 %
Non Interest-Bearing Deposits(5)		665,276						371,051
Total Cost of Funds		$             2,531,073		$                  14,761		2.32 %		$             1,529,286		$                    8,787		2.28 %
Other Liabilities		32,493						28,244
Total Liabilities		$             2,563,566						$             1,557,530
Shareholders' Equity		$                278,884						$                182,609
Total Liabilities & Shareholders' Equity		$             2,842,450						$             1,740,139
Net Interest Income/Spread (FTE)				25,647		2.94 %				14,392		2.73 %
Tax-Equivalent Basis Adjustment				(102)						(76)
Net Interest Income				$                  25,545						$                  14,316
Net Interest Margin						3.85 %						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

(4) Includes the balances of loans held for sale

(5) Includes the balances of deposits held for sale

 

 

LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Linked Quarter-To-Date (Unaudited)
		For the Three Months Ended
		December 31, 2024						September 30, 2024
(Dollars in thousands)		Avg Bal		Interest (2)		Yield/Rate		Avg Bal		Interest (2)		Yield/Rate
Int. Earn. Cash		$                 128,802		$            1,300		4.02 %		$       114,383		$             1,296		4.51 %
Securities
Taxable (1)		138,168		1,540		4.43 %		133,443		1,683		5.02 %
Tax-Exempt		44,958		486		4.30 %		42,800		453		4.21 %
Total Securities		183,126		2,026		4.40 %		176,243		2,136		4.82 %
Total Cash Equiv. and Investments		311,928		3,326		4.24 %		290,626		3,432		4.70 %
Total Loans (3)(4)		2,327,829		37,082		6.34 %		2,313,228		36,856		6.34 %
Total Earning Assets		2,639,757		40,408		6.09 %		2,603,854		40,288		6.16 %
Other Assets		202,693						208,407
Total Assets		$              2,842,450						$    2,812,261
Interest bearing demand(5)		$                 537,856		3,043		2.25 %		$       497,100		$             2,902		2.32 %
Money market demand(5)		567,593		3,139		2.20 %		580,766		3,396		2.33 %
Time deposits(5)		607,231		6,641		4.35 %		613,402		6,993		4.54 %
Total Borrowings		153,117		1,938		5.04 %		153,699		1,922		4.97 %
Total Interest-Bearing Liabilities		1,865,797		14,761		3.15 %		1,844,967		15,213		3.28 %
Non Interest-Bearing Deposits(5)		665,276						659,825
Total Cost of Funds		$              2,531,073		$          14,761		2.32 %		$    2,504,792		$           15,213		2.42 %
Other Liabilities		32,493						33,534
Total Liabilities		$              2,563,566						$    2,538,326
Shareholders' Equity		$                 278,884						$       273,935
Total Liabilities & Shareholders' Equity		$              2,842,450						$    2,812,261
Net Interest Income/Spread (FTE)				25,647		2.94 %				25,075		2.88 %
Tax-Equivalent Basis Adjustment				(102)						(94)
Net Interest Income				$          25,545						$           24,981
Net Interest Margin						3.85 %						3.82 %

(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

(4) Includes the balances of loans held for sale

(5) Includes the balances of deposits held for sale

 

LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Year-To-Date (Unaudited)
		For the Twelve Months Ended December 31,
		2024						2023
(Dollars in thousands)		Avg Bal		Interest (2)		Yield/Rate		Avg Bal		Interest (2)		Yield/Rate
Int. Earn. Cash		$                111,790		$                    4,890		4.37 %		$                  55,501		$                    1,966		3.54 %
Securities
Taxable (1)		128,140		6,206		4.84 %		84,860		3,260		3.84 %
Tax-Exempt		43,134		1,839		4.26 %		38,591		1,495		3.87 %
Total Securities		171,274		8,045		4.70 %		123,451		4,755		3.85 %
Total Cash Equiv. and Investments		283,064		12,935		4.57 %		178,952		6,721		3.76 %
Total Loans (3)(4)		2,290,618		146,175		6.38 %		1,071,864		58,791		5.48 %
Total Earning Assets		2,573,682		159,110		6.18 %		1,250,816		65,512		5.24 %
Other Assets		205,568						106,267
Total Assets		$             2,779,250						$             1,357,083
Interest bearing demand(5)		$                476,686		$                  10,344		2.17 %		$                269,615		$                    5,684		2.11 %
Money market demand(5)		579,232		12,981		2.24 %		278,418		7,053		2.53 %
Time deposits(5)		617,894		27,708		4.48 %		301,101		9,901		3.29 %
Total Borrowings		149,572		7,797		5.21 %		90,468		3,849		4.25 %
Total Interest-Bearing Liabilities		1,823,384		58,830		3.23 %		939,602		26,487		2.82 %
Non Interest-Bearing Deposits(5)		653,966						245,703
Total Cost of Funds		$             2,477,350		$                  58,830		2.37 %		$             1,185,305		$                  26,487		2.23 %
Other Liabilities		29,515						19,850
Total Liabilities		$             2,506,865						$             1,205,155
Shareholders' Equity		$                272,385						$                151,928
Total Liabilities & Shareholders' Equity		$             2,779,250						$             1,357,083
Net Interest Income/Spread (FTE)				100,280		2.95 %				39,025		2.42 %
Tax-Equivalent Basis Adjustment				(386)						(314)
Net Interest Income				$                  99,894						$                  38,711
Net Interest Margin						3.88 %						3.09 %

(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

(4) Includes the balances of loans held for sale

(5) Includes the balances of deposits held for sale

 

LINKBANCORP, Inc. and Subsidiaries
Loans Receivable Detail (Unaudited)
(In Thousands)		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31,  2023
Agriculture and farmland loans		$                    67,741		$             65,166		$           66,937		$        67,359		$          65,861
Construction loans		158,296		175,373		201,174		194,391		178,483
Commercial & industrial loans		252,163		241,597		247,190		218,724		238,343
Commercial real estate loans
Multifamily		217,331		212,444		199,740		190,146		180,788
Owner occupied		493,906		500,643		492,065		489,467		501,732
Non-owner occupied		658,615		626,030		610,649		589,731		580,972
Residential real estate loans
First liens		399,476		400,869		400,098		403,300		402,433
Second liens and lines of credit		78,410		73,591		71,168		71,060		70,747
Consumer and other loans		17,087		17,498		15,514		16,810		16,756
Municipal loans		3,886		4,296		4,362		4,473		5,244
		2,346,911		2,317,507		2,308,897		2,245,461		2,241,359
Deferred costs		645		634		478		356		174
Total loans receivable		2,347,556		2,318,141		2,309,375		2,245,817		2,241,533
Less: Loans held for sale		91,807		102,273		116,178		115,898		113,249
Loans Held for Investment		$               2,255,749		$        2,215,868		$      2,193,197		$   2,129,919		$     2,128,284

 

LINKBANCORP, Inc. and Subsidiaries
Investments in Securities Detail (Unaudited)
		December 31, 2024
(In Thousands)		Amortized Cost		Net Unrealized Gains (Losses)		Fair Value
Available for Sale:
US Government Agency securities		$        13,017		$                     56		$        13,073
Obligations of state and political subdivisions		51,254		(4,053)		47,201
Mortgage-backed securities in government-sponsored entities		88,289		(3,506)		84,783
Other securities		542		(9)		533
		$      153,102		$              (7,512)		$      145,590
		Amortized Cost		Net Unrealized Losses		Fair Value		Allowance for Credit Losses
Held to Maturity:
Corporate debentures		$        15,250		$                 (984)		$        14,266		$            (459)
Structured mortgage-backed securities		16,717		(699)		16,018		-
		$        31,967		$              (1,683)		$        30,284		$            (459)
		December 31, 2023
(In Thousands)		Amortized Cost		Net Unrealized Gains (Losses)		Fair Value
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 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)

 

LINKBANCORP, Inc. and Subsidiaries
Deposits Detail (Unaudited)
(In Thousands)		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Demand, noninterest-bearing		$               686,510		$             687,536		$            692,095		$       653,719		$         655,953
Demand, interest-bearing		537,546		547,099		488,043		447,412		438,765
Money market and savings		553,807		585,395		582,561		591,982		577,448
Time deposits, $250 and over		167,165		169,616		156,621		147,898		134,324
Time deposits, other		405,493		401,976		393,603		398,365		372,572
Brokered deposits		103,615		75,000		144,429		146,653		119,411
		2,454,136		2,466,622		2,457,352		2,386,029		2,298,473
Less: Deposits held for sale		93,554		93,970		96,840		105,628		99,674
Total deposits		$            2,360,582		$          2,372,652		$         2,360,512		$    2,280,401		$      2,198,799
Average Deposits Detail, for the Three Months Ended (Unaudited)
(In Thousands)		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Demand, noninterest-bearing		$               665,276		$             659,825		$            657,939		$       632,637		$         371,051
Demand, interest-bearing		537,856		497,100		446,109		424,781		328,342
Money market and savings		567,593		580,766		581,223		587,455		367,821
Time deposits		568,615		560,815		547,582		518,929		317,747
Brokered deposits		38,616		52,587		95,337		89,263		30,832
Total deposits		$            2,377,956		$          2,351,093		$         2,328,190		$    2,253,065		$      1,415,793
Balances in table above include deposits held for sale

 

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 Twelve Months Ended
(Dollars in thousands)	12/31/2024		9/30/2024		12/31/2023		12/31/2024		12/31/2023
Net income (loss)	$        7,584		$             7,095		$         (12,997)		$           26,209		$         (11,968)
Average assets	2,842,450		2,812,261		1,740,139		2,779,250		1,357,083
Return on average assets (annualized)	1.06 %		1.00 %		-2.96 %		0.94 %		-0.88 %
Net income (loss)	7,584		7,095		(12,997)		26,209		(11,968)
Net losses on sale of securities	-		-		-		(4)		2,370
Tax effect at 21%	-		-		-		1		(498)
Merger & restructuring expenses	56		171		9,496		914		11,176
Tax effect at 21%	(12)		(36)		(1,994)		(192)		(2,347)
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)	7,628		7,230		2,163		26,928		6,391
Average assets	2,842,450		2,812,261		1,740,139		2,779,250		1,357,083
Adjusted return on average assets (annualized) (Non-GAAP)	1.07 %		1.02 %		0.49 %		0.97 %		0.47 %

 

Adjusted Return on Average Shareholders' Equity
	For the Three Months Ended						For the Twelve Months Ended
(Dollars in thousands)	12/31/2024		9/30/2024		12/31/2023		12/31/2024		12/31/2023
Net income (loss)	$        7,584		$          7,095		$    (12,997)		$      26,209		$        (11,968)
Average shareholders' equity	278,884		273,935		182,609		272,385		151,928
Return on average shareholders' equity (annualized)	10.82 %		10.30 %		-28.24 %		9.62 %		-7.88 %
Net income (loss)	7,584		7,095		(12,997)		26,209		(11,968)
Net (gains) losses on sale of securities	-		-		-		(4)		2,370
Tax effect at 21%	-		-		-		1		(498)
Merger & restructuring expenses	56		171		9,496		914		11,176
Tax effect at 21%	(12)		(36)		(1,994)		(192)		(2,347)
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)	7,628		7,230		2,163		26,928		6,391
Average shareholders' equity	278,884		273,935		182,609		272,385		151,928
Adjusted return on average shareholders' equity (annualized) (Non-GAAP)	10.88 %		10.50 %		4.70 %		9.89 %		4.21 %

 

Adjusted Efficiency Ratio
	For the Three Months Ended						For the Twelve Months Ended
(Dollars in thousands)	12/31/2024		9/30/2024		12/31/2023		12/31/2024		12/31/2023
GAAP-based efficiency ratio	65.04 %		66.71 %		143.86 %		68.87 %		115.16 %
Net interest income	$      25,545		$      24,981		$      14,316		$              99,894		$      38,711
Noninterest income	2,594		2,680		1,175		8,862		1,087
Less: net gains (losses) on sales of securities	-		-		-		4		(2,370)
Adjusted revenue (Non-GAAP)	28,139		27,661		15,491		108,752		42,168
Total noninterest expense	18,302		18,452		22,285		74,904		45,832
Less: Merger & restructuring expenses	56		171		9,496		914		11,176
Adjusted non-interest expense	18,246		18,281		12,789		73,990		34,656
Efficiency ratio, as adjusted (Non-GAAP)	64.84 %		66.09 %		82.56 %		68.04 %		82.19 %

 

Adjusted Earnings Per Share
	For the Three Months Ended						For the Twelve Months Ended
(Dollars in thousands, except per share data)	12/31/2024		9/30/2024		12/31/2023		12/31/2024		12/31/2023
GAAP-Based Earnings (Loss) Per Share, Basic	$          0.20		$              0.19		$        (0.56)		$          0.71		$                (0.67)
GAAP-Based Earnings (Loss) Per Share, Diluted	$          0.20		$              0.19		$        (0.56)		$          0.71		$                (0.67)
Net Income (Loss)	$        7,584		$            7,095		$    (12,997)		$      26,209		$            (11,968)
Net (gains) losses on sale of securities	-		-		-		(4)		2,370
Tax effect at 21%	-		-		-		1		(498)
Merger & restructuring expenses	56		171		9,496		914		11,176
Tax effect at 21%	(12)		(36)		(1,994)		(192)		(2,347)
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)	7,628		7,230		2,163		26,928		6,391
Adjusted Earnings per Share, Basic (Non-GAAP)	$          0.21		$              0.20		$          0.09		$          0.73		$                  0.36
Adjusted Earnings per Share, Diluted (Non-GAAP)	$          0.21		$              0.19		$          0.09		$          0.73		$                  0.36

 

Tangible Common Equity and Tangible Book Value
(Dollars in thousands, except per share data)		12/31/2024		9/30/2024		6/30/2024		3/31/2024		12/31/2023
Tangible Common Equity						(Dollars in thousands, except for share data)
Total shareholders' equity		$        280,221		$         277,353		$       271,409		$         268,243		$         265,796
Adjustments:
Goodwill		(58,806)		(58,806)		(58,806)		(56,968)		(56,968)
Other intangible assets		(20,955)		(22,118)		(23,323)		(24,526)		(25,733)
Tangible common equity (Non-GAAP)		$        200,460		$         196,429		$       189,280		$         186,749		$         183,095
Common shares outstanding		37,370,917		37,361,560		37,356,278		37,348,151		37,340,700
Book value per common share		$              7.50		$               7.42		$             7.27		$               7.18		$               7.12
Tangible book value per common share (Non-GAAP)		$              5.36		$               5.26		$             5.07		$               5.00		$               4.90
Tangible Assets
Total assets		$     2,881,334		$      2,879,941		$    2,858,593		$      2,785,669		$      2,669,325
Adjustments:
Goodwill		(58,806)		(58,806)		(58,806)		(56,968)		(56,968)
Other intangible assets		(20,955)		(22,118)		(23,323)		(24,526)		(25,733)
Tangible assets (Non-GAAP)		$     2,801,573		$      2,799,017		$    2,776,464		$      2,704,175		$      2,586,624
Tangible common equity to tangible assets (Non-GAAP)		7.16 %		7.02 %		6.82 %		6.91 %		7.08 %

 

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)
	For the Three Months Ended						For the Twelve Months Ended
(Dollars in thousands, except per share data)	12/31/2024		9/30/2024		12/31/2023		12/31/2024		12/31/2023
Net Income (Loss) (GAAP)	$            7,584		$        7,095		$       (12,997)		$              26,209		$    (11,968)
Net (gains) losses on sale of securities	-		-		-		(4)		2,370
Tax effect at 21%	-		-		-		1		(498)
Merger & restructuring expenses	56		171		9,496		914		11,176
Tax effect at 21%	(12)		(36)		(1,994)		(192)		(2,347)
Adjusted Net Income (Non-GAAP)	7,628		7,230		(5,495)		26,928		(1,267)
Income tax expense (benefit)	2,121		2,030		(3,641)		7,386		(3,361)
Provision for credit losses	132		84		9,844		257		9,295
Tax effect included in Adjusted Net Income	12		36		1,994		191		2,845
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)	$            9,893		$        9,380		$           2,702		$              34,762		$        7,512

 

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

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SOURCE LINKBANCORP, Inc.

FAQ

What was LINKBANCORP's (LNKB) Q4 2024 earnings per share?

LINKBANCORP reported earnings of $0.20 per diluted share for Q4 2024, compared to $0.19 per diluted share in Q3 2024.

What is LINKBANCORP's (LNKB) quarterly dividend for Q4 2024?

LINKBANCORP declared a quarterly cash dividend of $0.075 per share, payable on March 14, 2025, to shareholders of record on February 28, 2025.

What was LNKB's net interest margin in Q4 2024?

LINKBANCORP's net interest margin expanded to 3.85% in Q4 2024 from 3.82% in Q3 2024.

When is LINKBANCORP's New Jersey branch sale expected to close?

The sale of LINKBANCORP's New Jersey branches to American Heritage Federal Credit Union is expected to close in the first quarter of 2025.

What was LNKB's efficiency ratio in Q4 2024?

LINKBANCORP's efficiency ratio improved to 65.04% in Q4 2024, compared to 66.71% in Q3 2024.