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Linkbancorp
ISIN: US53578P1057
WKN: A3DT9V
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Linkbancorp · ISIN: US53578P1057 · PR Newswire (ID: 20250728PH38735)
28 July 2025 10:30PM

LINKBANCORP, Inc. Announces Strong Second Quarter 2025 Earnings and Declares Dividend


HARRISBURG, Pa., July 28, 2025 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank"), reported net income of $7.4 million, or $0.20 per diluted share, for the quarter ended June 30, 2025, compared to net income of $15.3 million, or $0.41 per diluted share, for the quarter ended March 31, 2025.  Excluding the sale of branches, merger and restructuring related income and expenses, adjusted earnings were $7.4 million1, or $0.201 per diluted share for both the first and second quarter of 2025.

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 September 15, 2025 to shareholders of record on August 29, 2025.

Second Quarter 2025 Highlights

  • Stable, strong core earnings. Annualized return on average assets was 1.05% for the second quarter of 2025, compared to 2.19% for the first quarter of 2025 and 0.84% for the second quarter of 2024. Adjusted return on average assets was 1.05%1 for the second quarter of 2025, compared to 1.05%1 for the first quarter of 2025 and 0.91%1 for the second quarter of 2024.



  • Robust balance sheet growth. Total loans at June 30, 2025 were $2.36 billion, compared to $2.27 billion at March 31, 2025 and $2.35 billion at December 31, 2024, representing a quarterly increase of $82.7 million or 14.58% annualized and a year-to-date increase of $107.0 million2 or 9.19% annualized excluding the impact of the sale of banking operations and branches in New Jersey, including related loans and deposits (the "Branch Sale"). Total deposits at June 30, 2025 were $2.46 billion compared to $2.43 billion at March 31, 2025 and $2.45 billion at December 31, 2024, representing a quarterly increase of $22.7 million, or 3.74% annualized and a year-to-date increase of $89.36 million2 or 7.34% excluding the impact of the Branch Sale.
  • Improving credit quality. The Company's non-performing assets declined by $4.2 million to $21.9 million, representing 0.76% of total assets at June 30, 2025, compared to $26.0 million, representing 0.91% of total assets at March 31, 2025. This decrease was driven by resolutions to several loan relationships including a purchased credit deteriorated loan that was resolved at an amount greater than its purchase date fair value. The successful resolutions have decreased specific reserve needs by $2.5 million while enhancing the ratio of the allowance for credit losses-loans to nonperforming assets to 112.68% at June 30, 2025, compared to 102.22% at March 31, 2025.



  • Disciplined expense management. GAAP noninterest expense for the second quarter of 2025 was $18.1 million with an efficiency ratio of 64.79%, compared to $19.7 million of GAAP noninterest expense with an efficiency ratio of 50.29% for the first quarter of 2025. Excluding non-core operating expenses, the adjusted noninterest expense decreased $697 thousand1 quarter over quarter from $18.7 million1 for the quarter ended March 31, 2025 to $18.0 million1 for the quarter ended June 30, 2025. The Company's adjusted efficiency ratio improved to 64.73%1 for the quarter ended June 30, 2025 compared to 66.96%1 for the quarter ended March 31, 2025.

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

2 See Loan and Deposit Tables for Branch Sale Reconciliation.

"We are pleased to report another quarter of strong core earnings, combined with exceptional loan and deposit growth throughout our entire footprint," said Andrew Samuel, Chief Executive Officer of LINKBANCORP. "We remain focused on improving operating efficiency and expanding noninterest income to support our core business and enabling us to deliver sustainable long-term value to our shareholders."

Income Statement

Net interest income before the provision for credit losses for the second quarter of 2025 was $24.9 million compared to $25.8 million in the first quarter of 2025 and $24.5 million for the second quarter of 2024. Net interest margin was 3.80% for the second quarter of 2025 compared to 3.94% for the first quarter of 2025. Net interest income was impacted by a linked quarter decline in purchase accounting accretion, together with a decrease in the average balances of loans and deposits due to the March 31, 2025 completion of the Branch Sale.  Interest income from purchase accounting accretion during the current quarter was approximately $922 thousand less than that recognized in the first quarter of 2025. Cost of funds increased to 2.31% for the second quarter of 2025, compared to 2.29% for the first quarter of 2025, reflecting the lower cost of deposits included in the Branch Sale as well as continued competition for deposits in the Bank's markets.   

Noninterest income decreased quarter-over-quarter to $2.9 million for the second quarter of 2025 compared to $13.3 million for the first quarter of 2025 due to the $11.1 million pre-tax gain from the Branch Sale in the first quarter.  Excluding the gain on sale of the New Jersey branches, noninterest income grew by $769 thousand quarter-over-quarter, including increases in swap fee income and interchange income.  Year-over-year, noninterest income increased $1.1 million from $1.9 million for the second quarter of 2024.

Noninterest expense for the second quarter of 2025 was $18.1 million compared to $19.7 million for the first quarter of 2025 and $18.9 million for the second quarter of 2024.  Excluding non-core operating costs totaling $16 thousand in the second quarter of 2025, $912 thousand in the first quarter of 2025 and $631 thousand in the second quarter of 2024, adjusted noninterest expense decreased $697 thousand1 from $18.7 million1 for the first quarter of 2025 to $18.0 million1 for the second quarter of 2025 while decreasing $220 thousand1 year-over-year from $18.3 million1 for the second quarter of 2024. Adjusted non-interest expense for the first quarter of 2025 excludes expenses related to the reduction of the size of the Board of Directors included in other noninterest expense, as well as bonus accruals related to the completion of the Branch Sale included in salaries and employee benefits expense, and other merger and restructuring costs. 

Income tax expense was $2.1 million for the second quarter of 2025, reflecting an effective tax rate of 22.0% compared to $3.9 million for the first quarter of 2025, reflecting an effective tax rate of 20.1% and $1.6 million for the second quarter of 2024, reflecting an effective tax rate of 22.0%, respectively. The tax rate increased quarter-over-quarter due to a state income tax apportionment adjustment in the first quarter of 2025.

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

Balance Sheet

Total assets were $2.89 billion at June 30, 2025 compared to $2.86 billion at March 31, 2025 and $2.88 billion at December 31, 2024.  Deposits and net loans as of June 30, 2025 totaled $2.46 billion and $2.33 billion, respectively, compared to deposits and net loans of $2.43 billion and $2.25 billion, respectively at March 31, 2025 and $2.36 billion and $2.23 billion, respectively, at December 31, 2024.  Deposits and net loans exclude recorded balances held for sale in the Branch Sale of $93.6 million and $91.8 million, respectively, at December 31, 2024, which are reflected within liabilities held for sale and assets held for sale.

Total loans at June 30, 2025 were $2.36 billion, compared to $2.27 billion at March 31, 2025, representing an increase of $82.7 million. Year-to-date, total loans have increased $107.0 million2 from December 31, 2024, excluding the impact of the Branch Sale, or 9.19% annualized. Total commercial loan commitments originated in the second quarter of 2025 were $154.6 million with funded balances of $137.1 million. The average commercial loan commitment originated during the second quarter of 2025 totaled approximately $985 thousand with an average outstanding funded balance of $873 thousand.

Total deposits at June 30, 2025 were $2.46 billion compared to $2.43 billion at March 31, 2025, representing an increase of $22.7 million. Year-to-date, total deposits have increased $89.4 million2 from December 31, 2024, excluding the impact of the Branch Sale, or 7.34% annualized. Noninterest bearing deposits totaled $646.7 million at June 30, 2025, generally flat from March 31, 2025. Brokered deposits decreased $28.6 million from $103.6 million at March 31, 2025 to $75.0 million at June 30, 2025.  Excluding the $28.6 million change in brokered deposits and the impact from the Branch Sale, deposits increased $118.0 million2 year-to-date representing an annualized growth rate of 10.1%.

The Company continues to maintain strong on-balance sheet liquidity, as cash and cash equivalents were $155.1 million at June 30, 2025 compared to $220.2 million at March 31, 2025 and $166.1 million at December 31, 2024.

Shareholders' equity increased to $298.0 million at June 30, 2025 from $294.1 million at March 31, 2025 primarily as a result of a $4.6 million increase in retained earnings.  Book value per share increased to $7.96 at June 30, 2025 compared to $7.87 at March 31, 2025.  Tangible book value per share increased to $5.921 at June 30, 2025 compared to $5.801 at March 31, 2025 and $5.071 at June 30, 2024, representing 17% growth year over year.

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

2 See Loan and Deposit Tables for Branch Sale Reconciliation.

Asset Quality

The Company recorded a $344 thousand provision for credit losses during the second quarter of 2025, after recording a $228 thousand provision for credit losses in the first quarter of 2025. The increase in provision was primarily related to commercial loan growth during the second quarter of 2025.

As of June 30, 2025, the Company's non-performing assets declined by $4.2 million to $21.9 million, representing 0.76% of total assets, compared to $26.0 million, representing 0.91% of total assets at March 31, 2025. This improvement was driven largely by the favorable resolution of a purchased credit deteriorated (PCD) loan above its purchase date fair value.

Loans 30-89 days past due at June 30, 2025 were $14.5 million, representing 0.62% of total loans compared to $12.7 million or 0.56% of total loans at March 31, 2025 and $2.9 million or 0.13% of total loans at December 31, 2024.

The allowance for credit losses for loans was $24.7 million, or 1.05% of total loans held for investment at June 30, 2025, compared to $26.6 million, or 1.17% of total loans held for investment at March 31, 2025.  Due to the resolution of certain nonperforming loans resulting in the improvement in nonperforming assets noted above, the required specific reserve on loans decreased by $2.5 million from March 31, 2025 to June 30, 2025. The ratio of the allowance for credit losses for loans to nonperforming assets increased to 112.68% at June 30, 2025, compared to 102.22% at March 31, 2025.

Net charge-offs continue to improve as the Company recorded $40 thousand in net charge-offs during the second quarter of 2025 compared to $81 thousand for the first quarter of 2025 and $252 thousand in the fourth quarter of 2024.

Capital

The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of June 30, 2025. The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 12.43% and 11.51% respectively, at June 30, 2025, compared to 12.61% and 11.71%, respectively, at March 31, 2025 and 11.09% and 10.30%, respectively, at June 30, 2024. The Company's ratio of Tangible Common Equity to Tangible Assets was 7.89%1 at June 30, 2025 compared to 7.78%1 at March 31, 2025.

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 and Virginia, through 24 client solutions centers and www.linkbank.com. LINKBANCORP, Inc. common stock is traded on the Nasdaq Capital Market under the symbol "LNKB". For further company information, visit ir.linkbancorp.com.

Forward Looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties associated with newly developed or acquired operations; changes in general economic trends, including inflation, tariffs 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)











































June 30, 2025



March 31, 2025



December 31, 2024



September 30, 2024



June 30, 2024

(In Thousands, except share and per share data)



















ASSETS



















Noninterest-bearing cash equivalents

$          15,319



$          14,830



$              13,834



$              15,295



$        14,516

Interest-bearing deposits with other institutions

139,764



205,352



152,266



175,937



167,141

Cash and cash equivalents

155,083



220,182



166,100



191,232



181,657

Securities available for sale, at fair value

169,569



159,183



145,590



149,315



140,121

Securities held to maturity, net of allowance for credit losses

26,809



27,662



31,508



34,155



35,343

Loans receivable, gross

2,356,609



2,273,941



2,255,749



2,215,868



2,193,197

Allowance for credit losses - loans

(24,651)



(26,619)



(26,435)



(26,542)



(26,288)

Loans receivable, net

2,331,958



2,247,322



2,229,314



2,189,326



2,166,909

Investments in restricted bank stock

4,821



4,780



5,209



4,904



4,928

Premises and equipment, net

15,861



17,920



18,029



17,623



18,364

Right-of-Use Asset – premises

15,410



14,537



14,913



14,150



13,970

Bank-owned life insurance

52,943



52,507



52,079



51,646



49,616

Goodwill and other intangible assets

76,296



77,379



79,761



80,924



82,129

Deferred tax asset

16,474



16,729



18,866



21,662



22,024

Assets held for sale





94,146



104,660



118,362

Accrued interest receivable and other assets

21,330



23,288



23,263



20,344



25,170

TOTAL ASSETS

$     2,886,554



$     2,861,489



$         2,878,778



$         2,879,941



$   2,858,593

LIABILITIES



















Deposits:



















Demand, noninterest bearing

$        646,654



$        646,002



$            658,646



$            658,473



$      661,292

Interest bearing

1,809,755



1,787,692



1,701,936



1,714,179



1,699,220

Total deposits

2,456,409



2,433,694



2,360,582



2,372,652



2,360,512

Long-term borrowings

40,000



40,000



40,000



40,000



40,000

Short-term borrowings





10,000





Note payable



559



565



572



578

Subordinated debt

62,279



62,129



61,984



61,843



61,706

Lease liabilities

15,740



15,284



15,666



14,911



14,746

Liabilities held for sale





93,777



94,228



96,916

Accrued interest payable and other liabilities

14,128



15,757



15,983



18,382



12,726

TOTAL LIABILITIES

2,588,556



2,567,423



2,598,557



2,602,588



2,587,184

SHAREHOLDERS' EQUITY



















Preferred stock









Common stock

370



370



370



370



370

Surplus

265,293



264,871



264,449



264,059



263,795

Retained earnings

37,107



32,507



19,947



15,147



10,826

Accumulated other comprehensive loss

(4,772)



(3,682)



(4,545)



(2,223)



(3,582)

TOTAL SHAREHOLDERS' EQUITY

297,998



294,066



280,221



277,353



271,409

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$     2,886,554



$     2,861,489



$         2,878,778



$         2,879,941



$   2,858,593

Common shares outstanding

37,441,879



37,377,342



37,370,917



37,361,560



37,356,278

 

LINKBANCORP, Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

















































Three Months Ended



Six Months Ended





6/30/2025



3/31/2025



6/30/2024



6/30/2025



6/30/2024

(In Thousands, except share and per share data)





















INTEREST AND DIVIDEND INCOME





















Loans receivable, including fees



$       36,032



$          37,041



$         36,112



$          73,073



$           72,237

Other



3,294



3,101



3,337



6,395



5,987

Total interest and dividend income



39,326



40,142



39,449



79,468



78,224

INTEREST EXPENSE





















Deposits



12,467



12,357



13,071



24,824



24,918

Other Borrowings



931



986



932



1,917



2,018

Subordinated Debt



979



968



962



1,947



1,920

Total interest expense



14,377



14,311



14,965



28,688



28,856

NET INTEREST INCOME BEFORE

   PROVISION FOR CREDIT LOSSES



24,949



25,831



24,484



50,780



49,368

Provision for credit losses



344



228





572



40

NET INTEREST INCOME AFTER

   PROVISION FOR CREDIT LOSSES



24,605



25,603



24,484



50,208



49,328

NONINTEREST INCOME





















Service charges on deposit accounts



1,056



1,061



865



2,117



1,645

Bank-owned life insurance



436



428



386



864



769

Net realized gains (losses) on the sale of debt securities







4





4

Gain on sale of loans



128



77



12



205



62

Gain on sale of branches





11,093





11,093



Other



1,313



598



591



1,911



1,107

Total noninterest income



2,933



13,257



1,858



16,190



3,587

NONINTEREST EXPENSE





















Salaries and employee benefits



10,252



11,156



9,941



21,408



21,059

Occupancy



1,308



1,464



1,559



2,772



3,137

Equipment and data processing



2,052



2,043



1,824



4,095



3,650

Professional fees



728



487



788



1,215



1,536

FDIC insurance and supervisory fees



537



599



545



1,136



897

Bank Shares Tax



(82)



614



760



532



1,351

Intangible amortization



1,083



1,084



1,204



2,167



2,411

Merger & restructuring expenses



16



41



631



57



687

Advertising



176



144



241



320



475

Other



1,995



2,026



1,407



4,021



2,947

Total noninterest expense



18,065



19,658



18,900



37,723



38,150

Income before income tax expense 



9,473



19,202



7,442



28,675



14,765

Income tax expense



2,086



3,859



1,638



5,945



3,235

NET  INCOME



$         7,387



$          15,343



$           5,804



$          22,730



$           11,530























EARNINGS PER SHARE, BASIC



$           0.20



$              0.41



$             0.16



$              0.61



$               0.31

 EARNINGS PER SHARE, DILUTED



$           0.20



$              0.41



$             0.16



$              0.61



$               0.31

WEIGHTED-AVERAGE COMMON SHARES

   OUTSTANDING,





















BASIC



37,136,851



37,105,480



36,970,768



37,122,883



36,966,371

DILUTED



37,244,008



37,221,939



37,040,748



37,231,839



37,042,895

 

LINKBANCORP, Inc. and Subsidiaries

Financial Highlights (Unaudited)























For the Three Months Ended



For the Six Months Ended

(Dollars In Thousands, except per share data)

6/30/2025



3/31/2025



6/30/2024



6/30/2025



6/30/2024

Operating Highlights



















Net Income

$             7,387



$         15,343



$                 5,804



$              22,730



$           11,530

Net Interest Income

24,949



25,831



24,484



50,780



49,368

Provision for Credit Losses

344



228





572



40

Non-Interest Income

2,933



13,257



1,858



16,190



3,587

Non-Interest Expense

18,065



19,658



18,900



37,723



38,150

Earnings per Share, Basic

0.20



0.41



0.16



0.61



0.31

Adjusted Earnings per Share, Basic (2)

0.20



0.20



0.17



0.40



0.33

Earnings per Share, Diluted

0.20



0.41



0.16



0.61



0.31

Adjusted Earnings per Share, Diluted (2)

0.20



0.20



0.17



0.40



0.33





















Selected Operating Ratios



















Net Interest Margin

3.80 %



3.94 %



3.83 %



3.87 %



3.92 %

Annualized Return on Assets ("ROA")

1.05 %



2.19 %



0.84 %



1.62 %



0.85 %

Adjusted ROA2

1.05 %



1.05 %



0.91 %



1.05 %



0.89 %

Annualized Return on Equity ("ROE")

10.04 %



21.90 %



8.65 %



15.83 %



8.63 %

Adjusted ROE2

10.06 %



10.56 %



9.39 %



10.31 %



9.04 %

Efficiency Ratio

64.79 %



50.29 %



71.75 %



56.33 %



72.04 %

Adjusted Efficiency Ratio3

64.73 %



66.96 %



69.36 %



65.85 %



70.75 %

Noninterest Income to Avg. Assets

0.42 %



1.89 %



0.27 %



1.15 %



0.26 %

Noninterest Expense to Avg. Assets

2.57 %



2.80 %



2.73 %



2.68 %



2.80 %











































6/30/2025



3/31/2025



12/31/2024



9/30/2024



6/30/2024

Financial Condition Data



















Total Assets

$      2,886,554



$     2,861,489



$           2,878,778



$         2,879,941



$       2,858,593

Loans Receivable, Net

2,331,958



2,247,322



2,229,314



2,189,326



2,166,909





















     Noninterest-bearing Deposits

646,654



646,002



658,646



658,473



661,292

     Interest-bearing Deposits

1,809,755



1,787,692



1,701,936



1,714,179



1,699,220

Total Deposits

$      2,456,409



$     2,433,694



$           2,360,582



$         2,372,652



$       2,360,512





















Selected Balance Sheet Ratios



















Total Capital Ratio1

12.43 %



12.61 %



11.55 %



11.44 %



11.09 %

Tier 1 Capital Ratio1

11.51 %



11.71 %



10.74 %



10.62 %



10.30 %

Common Equity Tier 1 Capital Ratio1

11.51 %



11.71 %



10.74 %



10.62 %



10.30 %

Leverage Ratio1

10.34 %



10.02 %



9.49 %



9.41 %



9.17 %

Tangible Common Equity to Tangible Assets4

7.89 %



7.78 %



7.16 %



7.02 %



6.82 %

Tangible Book Value per Share5

$              5.92



$             5.80



$                   5.36



$                 5.26



$               5.07





















Asset Quality Data



















Non-performing Assets

$           21,877



$         26,041



$               17,173



$              17,378



$           10,589

Non-performing Assets to Total Assets

0.76 %



0.91 %



0.60 %



0.60 %



0.37 %

Non-performing Loans to Total Loans

0.93 %



1.15 %



0.76 %



0.78 %



0.48 %

Allowance for Credit Losses - Loans ("ACLL")

$           24,651



$         26,619



$               26,435



$              26,542



$           26,288

ACLL to Total Loans

1.05 %



1.17 %



1.17 %



1.20 %



1.20 %

ACLL to Nonperforming Assets

112.68 %



102.22 %



153.93 %



152.73 %



248.26 %

Net chargeoffs (recoveries)(6)

$                 40



$                81



$                    252



$                   (28)



$                (20)





















(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) - Charge offs for the three months ended June 30, 2025 do not include the impact of a settlement of a purchase credit deteriorated loan ("PCD") that resulted in a net decrease to the allowance of $2.0 million, which was covered by a specific reserve established on this PCD loan at the time of acquisition.

 

LINKBANCORP, Inc. and Subsidiaries

Net Interest Margin - Linked Quarter-To-Date (Unaudited)































For the Three Months Ended





June 30, 2025



March 31, 2025

(Dollars in thousands)



Avg Bal



Interest (2)



Yield/Rate



Avg Bal



Interest (2)



Yield/Rate

Int. Earn. Cash



$                 114,315



$            1,097



3.85 %



$        119,269



$               972



3.31 %

Securities

























Taxable (1)



152,185



1,819



4.79 %



142,867



1,749



4.96 %

Tax-Exempt



42,688



478



4.50 %



43,845



481



4.45 %

Total Securities



194,873



2,297



4.73 %



186,712



2,230



4.84 %

Total Cash Equiv. and Investments



309,188



3,394



4.40 %



305,981



3,202



4.24 %

Total Loans (3)



2,324,897



36,032



6.22 %



2,350,031



37,041



6.39 %

Total Earning Assets



2,634,085



39,426



6.00 %



2,656,012



40,243



6.14 %

Other Assets



183,203











191,469









Total Assets



$              2,817,288











$     2,847,481









Interest bearing demand



$                 547,177



3,207



2.35 %



$        545,475



3,048



2.27 %

Money market demand



553,294



3,099



2.25 %



555,663



2,937



2.14 %

Time deposits



609,322



6,161



4.06 %



632,649



6,372



4.08 %

Total Borrowings



152,668



1,910



5.02 %



149,922



1,954



5.29 %

Total Interest-Bearing Liabilities



1,862,461



14,377



3.10 %



1,883,709



14,311



3.08 %

Non Interest-Bearing Deposits



628,962











649,440









Total Cost of Funds



2,491,423



14,377



2.31 %



2,533,149



14,311



2.29 %

Other Liabilities



30,826











30,229









Total Liabilities



2,522,249











2,563,378









Shareholders' Equity



295,039











284,103









Total Liabilities & Shareholders' Equity



$              2,817,288











$     2,847,481









Net Interest Income/Spread (FTE)







25,049



2.90 %







25,932



3.06 %

Tax-Equivalent Basis Adjustment







(100)











(101)





Net Interest Income







$          24,949











$          25,831





Net Interest Margin











3.80 %











3.94 %

(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 - Quarter-To-Date (Unaudited)































For the Three Months Ended June 30,





2025



2024

(Dollars in thousands)



Avg Bal



Interest (2)



Yield/Rate



Avg Bal



Interest (2)



Yield/Rate

Int. Earn. Cash



$                114,315



$                    1,097



3.85 %



$                121,340



$                    1,395



4.62 %

Securities

























Taxable (1)



152,185



1,819



4.79 %



125,885



1,592



5.09 %

Tax-Exempt



42,688



478



4.50 %



41,776



443



4.26 %

Total Securities



194,873



2,297



4.73 %



167,661



2,035



4.88 %

Total Cash Equiv. and Investments



309,188



3,394



4.40 %



289,001



3,430



4.77 %

Total Loans (3)



2,324,897



36,032



6.22 %



2,280,041



36,112



6.37 %

Total Earning Assets



2,634,085



39,426



6.00 %



2,569,042



39,542



6.19 %

Other Assets



183,203











212,097









Total Assets



$             2,817,288











$             2,781,139









Interest bearing demand



$                547,177



3,207



2.35 %



$                446,109



2,457



2.22 %

Money market demand



553,294



3,099



2.25 %



581,223



3,271



2.26 %

Time deposits



609,322



6,161



4.06 %



642,919



7,343



4.59 %

Total Borrowings



152,668



1,910



5.02 %



151,596



1,894



5.02 %

Total Interest-Bearing Liabilities



1,862,461



14,377



3.10 %



1,821,847



14,965



3.30 %

Non Interest-Bearing Deposits



628,962











657,939









Total Cost of Funds



2,491,423



14,377



2.31 %



2,479,786



14,965



2.43 %

Other Liabilities



30,826











31,519









Total Liabilities



2,522,249











2,511,305









Shareholders' Equity



295,039











269,834









Total Liabilities & Shareholders' Equity



$             2,817,288











$             2,781,139









Net Interest Income/Spread (FTE)







25,049



2.90 %







24,577



2.89 %

Tax-Equivalent Basis Adjustment







(100)











(93)





Net Interest Income







$                  24,949











$                  24,484





Net Interest Margin











3.80 %











3.83 %

(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 Six Months Ended June 30,





2025



2024

(Dollars in thousands)



Avg Bal



Interest (2)



Yield/Rate



Avg Bal



Interest (2)



Yield/Rate

Int. Earn. Cash



$                113,957



$                    2,069



3.66 %



$                102,471



$                    2,293



4.50 %

Securities

























Taxable (1)



147,952



3,568



4.86 %



121,333



2,983



4.94 %

Tax-Exempt



43,240



959



4.47 %



42,344



900



4.27 %

Total Securities



191,192



4,527



4.78 %



163,677



3,883



4.77 %

Total Cash Equiv. and Investments



305,149



6,596



4.36 %



266,148



6,176



4.67 %

Total Loans (3)



2,340,413



73,073



6.30 %



2,263,595



72,237



6.42 %

Total Earning Assets



2,645,562



79,669



6.07 %



2,529,743



78,413



6.23 %

Other Assets



191,799











211,138









Total Assets



$             2,837,361











$             2,740,881









Interest bearing demand



$                546,906



$                    6,255



2.31 %



$                437,011



$                    4,400



2.02 %

Money market demand



557,551



6,036



2.18 %



584,121



6,445



2.22 %

Time deposits



621,040



12,533



4.07 %



628,616



14,073



4.50 %

Total Borrowings



151,269



3,864



5.15 %



144,509



3,938



5.48 %

Total Interest-Bearing Liabilities



1,876,766



28,688



3.08 %



1,794,257



28,856



3.23 %

Non Interest-Bearing Deposits



640,730











646,728









Total Cost of Funds



$             2,517,496



$                  28,688



2.30 %



$             2,440,985



$                  28,856



2.38 %

Other Liabilities



30,368











31,360









Total Liabilities



$             2,547,864











$             2,472,345









Shareholders' Equity



$                289,497











$                268,536









Total Liabilities & Shareholders' Equity



$             2,837,361











$             2,740,881









Net Interest Income/Spread (FTE)







50,981



2.99 %







49,557



3.00 %

Tax-Equivalent Basis Adjustment







(201)











(189)





Net Interest Income







$                  50,780











$                  49,368





Net Interest Margin











3.87 %











3.92 %

(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)



June 30, 2025



March 31, 2025



December 31, 2024



September 30, 2024



June 30, 2024

 Agriculture and farmland loans 



$        61,996



$           66,684



$                67,741



$             65,166



$          66,937

 Construction loans 



140,976



136,421



158,296



175,373



201,174

 Commercial & industrial loans 



259,877



257,302



252,163



241,597



247,190

 Commercial real estate loans 





















      Multifamily 



231,469



215,916



217,331



212,444



199,740

      Owner occupied 



502,515



472,895



493,906



500,643



492,065

      Non-owner occupied 



681,521



645,793



658,615



626,030



610,649

 Residential real estate loans 





















      First liens 



375,879



378,420



399,476



400,869



400,098

      Second liens and lines of credit 



81,194



79,905



78,410



73,591



71,168

 Consumer and other loans 



17,525



17,097



17,087



17,498



15,514

 Municipal loans 



2,917



3,012



3,886



4,296



4,362





2,355,869



2,273,445



2,346,911



2,317,507



2,308,897

Deferred costs



740



496



645



634



478

Total loans receivable



2,356,609



2,273,941



2,347,556



2,318,141



2,309,375

Less: Loans held for sale







91,807



102,273



116,178

Loans Held for Investment



$   2,356,609



$      2,273,941



$           2,255,749



$        2,215,868



$     2,193,197



























$                -



$                   -



$                        -



$                    -



$                  -









$                   -



$                        -



$                    -



$                  -

LINKBANCORP, Inc. and Subsidiaries













Loan Growth Calculation Excluding Branch Sale (Unaudited)



































(In Thousands)







June 30, 2025













 Total Loans at June 30, 2025 







$      2,356,609













 Total Loans at December 31, 2024 







2,347,556













 Year-to-date Change 







9,053













 Net Book Value of Loans Sold 







97,952













 Loan Growth Excluding Branch Sale 







107,005













 Annualized Growth Rate 







9.19 %













 

LINKBANCORP, Inc. and Subsidiaries





Investments in Securities Detail (Unaudited)



























June 30, 2025





(In Thousands)



Amortized

Cost



Net

Unrealized Gains

(Losses)



Fair

Value





Available for Sale:

















US Government Agency securities



$        13,177



$                   168



$        13,345





Obligations of state and political subdivisions



50,758



(4,438)



46,320





Mortgage-backed securities in government-sponsored entities



111,564



(2,010)



109,554





Other securities



357



(7)



350









$      175,856



$              (6,287)



$      169,569



























 Amortized

Cost 



 Net Unrealized Losses 



 Fair Value 



 Allowance for

Credit Losses 

Held to Maturity:

















Corporate debentures



$        12,250



$                 (728)



$        11,522



$            (475)

Structured mortgage-backed securities



15,034



(452)



14,582







$        27,284



$              (1,180)



$        26,104



$            (475)























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)

 

LINKBANCORP, Inc. and Subsidiaries

Deposits Detail (Unaudited)























(In Thousands)



June 30, 2025



March 31, 2025



December 31, 2024



September 30, 2024



June 30, 2024

Demand, noninterest-bearing



$        646,654



$                          646,002



$               686,510



$             687,536



$            692,095

Demand, interest-bearing



576,050



577,170



537,546



547,099



488,043

Money market and savings



580,143



553,240



553,807



585,395



582,561

Time deposits, $250 and over



177,897



166,441



167,165



169,616



156,621

Time deposits, other



400,665



387,226



405,493



401,976



393,603

Brokered deposits



75,000



103,615



103,615



75,000



144,429





2,456,409



2,433,694



2,454,136



2,466,622



2,457,352

Less: Deposits held for sale







93,554



93,970



96,840

Total deposits  



$     2,456,409



$                       2,433,694



$            2,360,582



$          2,372,652



$         2,360,512













































Average Deposits Detail, for the Three Months Ended (Unaudited)























(In Thousands)



June 30, 2025



March 31, 2025



December 31, 2024



September 30, 2024



June 30, 2024

Demand, noninterest-bearing



$        628,962



$                          649,440



$               665,276



$             659,825



$            657,939

Demand, interest-bearing



547,177



545,475



537,856



497,100



446,109

Money market and savings



553,294



555,663



567,593



580,766



581,223

Time deposits



575,205



576,366



568,615



560,815



547,582

Brokered deposits



34,117



56,283



38,616



52,587



95,337

Total deposits  



$     2,338,755



$                       2,383,227



$            2,377,956



$          2,351,093



$         2,328,190

Balances in table above include deposits held for sale













































LINKBANCORP, Inc. and Subsidiaries













Deposit Growth Calculation Excluding Branch Sale (Unaudited)



































(In Thousands)







June 30, 2025













 Total Deposits at June 30, 2025 







$                       2,456,409













 Total Deposits at December 31, 2024 







2,454,136













 Year-to-date Change 







2,273













 Net Book Value of Deposits Sold 







87,086













 Quarterly Deposit Growth Excluding Branch Sale 





89,359













 Annualized Growth Rate 







7.34 %













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 Six Months Ended

(Dollars in thousands)



6/30/2025



3/31/2025



6/30/2024



6/30/2025



6/30/2024

Net income



$          7,387



$           15,343



$             5,804



$           22,730



$          11,530

Average assets



2,817,288



2,847,481



2,781,139



2,837,361



2,740,881

Return on average assets (annualized)



1.05 %



2.19 %



0.84 %



1.62 %



0.85 %

Net income



$          7,387



$           15,343



$             5,804



22,730



11,530

Gain on sale of branches





(11,093)





(11,093)



Tax effect(1)





2,440





2,440



Transaction bonus accrual





490





490



Tax effect(1)





(108)





(108)



Board restructuring accrual





381





381



Tax effect(1)





(84)





(84)



Net losses on sale of securities







(4)





(4)

Tax effect(1)







1





1

Merger & restructuring expenses



16



41



631



57



687

Tax effect(1)



(4)



(9)



(133)



(13)



(144)

Adjusted Net Income (Non-GAAP)



$          7,399



$             7,401



$             6,299



$           14,800



12,070

Average assets



$   2,817,288



$      2,847,481



$      2,781,139



$      2,837,361



2,740,881

Adjusted return on average assets (annualized)

(Non-GAAP)



1.05 %



1.05 %



0.91 %



1.05 %



0.89 %

(1) Tax effect was 22% for the three months ended June 30, 2025 and March 31, 2025, and six months ended June 30, 2025, and 21% for all other periods

 

Adjusted Return on Average Shareholders' Equity





For the Three Months Ended



For the Six Months Ended

(Dollars in thousands)



6/30/2025



3/31/2025



6/30/2024



6/30/2025



6/30/2024

Net income



$        7,387



$       15,343



$         5,804



$      22,730



$          11,530

Average shareholders' equity



295,039



284,103



269,834



289,497



268,536

Return on average shareholders' equity (annualized)



10.04 %



21.90 %



8.65 %



15.83 %



8.63 %

Net income



$        7,387



$       15,343



$         5,804



$      22,730



$          11,530

Gain on sale of branches





(11,093)





(11,093)



Tax effect(1)





2,440





2,440



Transaction bonus accrual





490





490



Tax effect(1)





(108)





(108)



Board restructuring accrual





381





381



Tax effect(1)





(84)





(84)



Merger & restructuring expenses



16



41



631



57



687

Tax effect(1)



(4)



(9)



(133)



(13)



(144)

Net (gains) losses on sale of securities







(4)





(4)

Tax effect(1)







1





1

Adjusted Net Income (Non-GAAP)



$        7,399



$         7,401



$         6,299



$      14,800



$          12,070

Average shareholders' equity



$    295,039



$     284,103



$     269,834



$    289,497



$        268,536

Adjusted return on average shareholders' equity (annualized)

(Non-GAAP)



10.06 %



10.56 %



9.39 %



10.31 %



9.04 %

(1) Tax effect was 22% for the three months ended June 30, 2025 and March 31, 2025, and six months ended June 30, 2025, and 21% for all other periods

 

Adjusted Earnings Per Share



For the Three Months Ended



For the Six Months Ended

(Dollars in thousands, except per share data)

6/30/2025



3/31/2025



6/30/2024



6/30/2025



6/30/2024

GAAP-Based Earnings Per Share, Basic

$          0.20



$          0.41



$              0.16



$          0.61



$                  0.31

GAAP-Based Earnings Per Share, Diluted

$          0.20



$          0.41



$              0.16



$          0.61



$                  0.31

Net Income

$        7,387



$      15,343



$            5,804



$      22,730



$              11,530

Gain on sale of branches



(11,093)





(11,093)



Tax effect(1)



2,440





2,440



Transaction bonus accrual



490





490



Tax effect(1)



(108)





(108)



Board restructuring accrual



381





381



Tax effect(1)



(84)





(84)



Merger & restructuring expenses

16



41



631



57



687

Tax effect(1)

(4)



(9)



(133)



(13)



(144)

Net (gains) losses on sale of securities





(4)





(4)

Tax effect(1)





1





1

Adjusted Net Income (Non-GAAP)

$        7,399



$        7,401



$            6,299



$      14,800



$              12,070

Adjusted Earnings per Share, Basic (Non-GAAP)

$          0.20



$          0.20



$              0.17



$          0.40



$                  0.33

Adjusted Earnings per Share, Diluted (Non-GAAP)

$          0.20



$          0.20



$              0.17



$          0.40



$                  0.33

(1) Tax effect was 22% for the three months ended June 30, 2025 and March 31, 2025, and six months ended June 30, 2025, and 21% for all other periods

 

Adjusted Efficiency Ratio



For the Three Months Ended



For the Six Months Ended

(Dollars in thousands)

6/30/2025



3/31/2025



6/30/2024



6/30/2025



6/30/2024

GAAP-based efficiency ratio

64.79 %



50.29 %



71.75 %



56.33 %



72.04 %

Net interest income 

$      24,949



$      25,831



$      24,484



$      50,780



$      49,368

Noninterest income 

2,933



13,257



1,858



16,190



3,587

Less: Gain on sale of branches



(11,093)





(11,093)



Less: net gains (losses) on sale of securities 





(4)





(4)

Adjusted revenue (Non-GAAP)

27,882



27,995



26,338



55,877



52,951

Total noninterest expense 

18,065



19,658



18,900



37,723



38,150

Less: Merger & restructuring expenses

16



41



631



57



687

Less: Transaction bonus accrual



490





490



Less: Board restructuring accrual



381





381



Adjusted non-interest expense

$      18,049



$      18,746



$      18,269



$      36,795



$      37,463

Efficiency ratio, as adjusted (Non-GAAP)

64.73 %



66.96 %



69.36 %



65.85 %



70.75 %

 

Tangible Common Equity and Tangible Book Value

(Dollars in thousands, except per share data)



6/30/2025



3/31/2025



12/31/2024



9/30/2024



6/30/2024

Tangible Common Equity









Total shareholders' equity 



$        297,998



$       294,066



$       280,221



$       277,353



$        271,409

Adjustments:





















Goodwill 



(58,806)



(58,806)



(58,806)



(58,806)



(58,806)

Other intangible assets 



(17,490)



(18,573)



(20,955)



(22,118)



(23,323)

Tangible common equity (Non-GAAP)



$        221,702



$       216,687



$       200,460



$       196,429



$        189,280

Common shares outstanding 



37,441,879



37,377,342



37,370,917



37,361,560



37,356,278

Book value per common share 



$              7.96



$             7.87



$             7.50



$             7.42



$              7.27

Tangible book value per common share

(Non-GAAP)



$              5.92



$             5.80



$             5.36



$             5.26



$              5.07

Tangible Assets





















Total assets 



$     2,886,554



$    2,861,489



$    2,878,778



$    2,879,941



$     2,858,593

Adjustments:





















Goodwill 



(58,806)



(58,806)



(58,806)



(58,806)



(58,806)

Other intangible assets 



(17,490)



(18,573)



(20,955)



(22,118)



(23,323)

Tangible assets (Non-GAAP)



$     2,810,258



$    2,784,110



$    2,799,017



$    2,799,017



$     2,776,464

Tangible common equity to tangible assets (Non-GAAP)



7.89 %



7.78 %



7.16 %



7.02 %



6.82 %

 

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)



For the Three Months Ended



For the Six Months Ended

(Dollars in thousands, except per share data)

6/30/2025



3/31/2025



6/30/2024



6/30/2025



6/30/2024

Net Income (GAAP)

$        7,387



$          15,343



$        5,804



$              22,730



$      11,530

Gain on sale of branches



(11,093)





(11,093)



Tax effect(1)



2,440





2,440



Transaction bonus accrual



490





490



Tax effect(1)



(108)





(108)



Board restructuring accrual



381





381



Tax effect(1)



(84)





(84)



Net (gains) losses on sale of securities





(4)





(4)

Tax effect(1)





1





1

Merger & restructuring expenses

16



41



631



57



687

Tax effect(1)

(4)



(9)



(133)



(13)



(144)

Adjusted Net Income (Non-GAAP)

7,399



7,401



6,299



14,800



12,070

Income tax expense

2,086



3,859



1,638



5,945



3,235

 Provision for credit losses

344



228





572



40

Tax effect included in Adjusted Net Income

4



(2,239)



132



(2,235)



143

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)

$        9,833



$            9,249



$        8,069



$              19,082



$      15,488

(1) Tax effect was 22% for the three months ended June 30, 2025 and March 31, 2025, and six months ended June 30, 2025, and 21% for all other periods

 

Contact:

Nick West

Director, Corporate Development

717.678.7935

IR@LINKBANCORP.COM

 

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