LINKBANCORP, Inc. Announces Second Quarter 2024 Earnings
In This Article:
HARRISBURG, Pa., July 29, 2024 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank") reported net income of $5.8 million, or $0.16 per diluted share, for the quarter ended June 30, 2024. Excluding expenses associated with the sale of its New Jersey branches and additional branch consolidations, adjusted earnings were $6.3 million1, or $0.171 per diluted share for the second quarter of 2024.
Second Quarter 2024 Highlights
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Total loans2 increased $63.6 million, or 11.4% annualized from $2.25 billion at March 31, 2024 to $2.31 billion at June 30, 2024, led by strong growth of $28.5 million in commercial & industrial loans over the period.
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Total deposits2 increased $71.3 million, or 12.0% annualized from $2.39 billion at March 31, 2024 to $2.46 billion at June 30, 2024, including growth of $38.4 million in noninterest bearing demand account balances at quarter end.
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Noninterest expense decreased $350 thousand quarter over quarter to $18.9 million in the second quarter of 2024. Excluding merger expenses and costs associated with the Branch Sale and branch consolidations, adjusted noninterest expense was $18.3 million in the second quarter of 2024, a $925 thousand decrease compared to $19.2 million in the first quarter of 2024.1
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Net interest income before provision for credit losses was $24.5 million for the second quarter of 2024 compared to $24.9 million in the first quarter of 2024, and was impacted by a quarter-over-quarter decline in purchase accounting accretion as well as increased funding costs due to continued competition for deposits to support quality loan growth and maintain prudent on-balance sheet liquidity. Net interest margin was 3.83% for the second quarter of 2024 compared to 4.03% for the first quarter of 2024.
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Non-performing assets were $10.6 million, representing 0.37% of total assets at June 30, 2024, compared to $6.7 million, representing 0.24% of total assets at March 31, 2024. The allowance for credit losses-loans was 1.20% of total loans held for investment at June 30, 2024, compared to 1.06% at March 31, 2024. The allowance was impacted by the reclassification of loans related to the Branch Sale as assets held for sale, offset by net loan growth in the quarter, as well as a loan acquired in the merger with Partners Bancorp (the "Partners Merger") which experienced credit deterioration that was present at the time of the merger and required a day one purchase accounting adjustment that increased the allowance for credit losses by $2.3 million and increased goodwill by $1.8 million.
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On May 9, 2024, the Company announced that LINBANK 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"). The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2024.
As a result of the Branch Sale announcement, associated assets and liabilities 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 pleased by the consistent improvement in performance achieved through the hard work and dedication of all of our teams, evidenced by the results of the second quarter of 2024, including increased profitability metrics and strong commercial loan and core deposit growth," said Andrew Samuel, Chief Executive Officer of LINKBANCORP. "The consolidation of three client solution centers was completed during the quarter and we remain on target to conclude the pending sale of the New Jersey operations in the second half of the year." He continued, "We continue to be very focused on achieving further improvements in profitability and customer experience to meet our goals for the second half of the year."
| 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 $116.2 million and $96.8 million at June 30, 2024. These balances in the first quarter of 2024 were $115.9 million and $105.6 million respectively at March 31, 2024. |
Income Statement
Net interest income before the provision for credit losses for the second quarter of 2024 was $24.5 million compared to $24.9 million in the first quarter of 2024. Net interest margin was 3.83% for the second quarter of 2024 compared to 4.03% for the first quarter of 2024. For the second quarter of 2024, net interest income was impacted by the amortization of purchase accounting adjustments, as interest income from purchase accounting accretion during this period was approximately $568 thousand less than purchase accounting accretion recognized in the first quarter of 2024. Cost of funds increased to 2.43% for the second quarter of 2024 compared to 2.33% for the first quarter of 2024, reflecting continued pressure from competition for deposits in the Bank's markets.
Noninterest income increased quarter-over-quarter to $1.9 million for the second quarter of 2024 compared to $1.7 million for the first quarter of 2024, and included an $85 thousand increase in service charges on deposit accounts.
Noninterest expense for the second quarter of 2024 was $18.9 million compared to $19.3 million for the first quarter of 2024. Excluding one-time merger expenses and costs associated with the Branch Sale and branch consolidations of $631 thousand in the second quarter of 2024 and $56 thousand in the first quarter of 2024, noninterest expense decreased by $925 thousand to $18.3 million in the second quarter of 2024 from $19.2 million in the first quarter1. This improvement was largely driven by a $1.2 million decrease in salaries and employee benefits following the reduction in headcount relating to the Partners Merger.
Income tax expense was $1.6 million for the second quarter of 2024, reflecting an effective tax rate of 22.0%.
Balance Sheet
Total assets were $2.86 billion at June 30, 2024 compared to $2.79 billion at March 31, 2024 and $1.31 billion at June 30, 2023. Deposits and net loans as of June 30, 2024 totaled $2.36 billion and $2.17 billion, respectively, compared to deposits and net loans of $2.28 billion and $2.11 billion, respectively, at March 31, 2024 and $1.03 billion and $959.3 million, respectively, at June 30, 2023. Deposits and net loans exclude balances held for sale in the Branch Sale of $96.8 million and $116.2 million, respectively, at June 30, 2024, which are reflected in liabilities held for sale and assets held for sale. These balances were $105.6 million and $115.9 million respectively at March 31, 2024.
Including loans held for sale, total loans increased $63.6 million, from $2.25 billion at March 31, 2024 to $2.31 billion at June 30, 2024, led by strong growth of $28.5 million in commercial & industrial loans over the period. Total commercial loan commitments for the second quarter of 2024 were $117.9 million with funded balances of $81.8 million. The average commercial loan commitment originated during the second quarter of 2024 totaled approximately $771 thousand with an average outstanding funded balance of $534 thousand.
Including deposits held for sale, total deposits at June 30, 2024 totaled $2.46 billion, an increase of $71.3 million from $2.39 billion at March 31, 2024. This increase included growth of $38.4 million in noninterest bearing demand accounts and $31.2 million in interest bearing demand, money market and savings account balances.
The Company maintains strong on-balance sheet liquidity, as cash and cash equivalents increased to $181.7 million at June 30, 2024 compared to $172.3 million at March 31, 2024.
Shareholders' equity increased from $268.2 million at March 31, 2024 to $271.4 million at June 30, 2024 primarily as a result of a $3.1 million increase in retained earnings. Book value per share increased to $7.27 at June 30, 2024 compared to $7.18 at March 31, 2024. Tangible book value per share increased to $5.07 at June 30, 2024 compared to $5.00 at March 31, 20241.
| 1 See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure. |
Asset Quality
In the second quarter of 2024, the Company did not record a provision for credit losses, compared to a $40 thousand provision for credit losses in the first quarter of 2024. Additional provision was not required due in part to reclassification of loans related to the Branch Sale as assets held for sale, offset by net loan growth in the quarter, as well as an increase in the allowance through an adjustment to goodwill related to purchase accounting described below.
As of June 30, 2024, the Company's non-performing assets were $10.6 million, representing 0.37% of total assets, compared to $6.7 million, representing 0.24% of total assets at March 31, 2024. The increase relates primarily to a single loan for a commercial property acquired in the Partners Merger with an outstanding principal balance of approximately $3.9 million at June 30, 2024. Loans 30-89 days past due at June 30, 2024 were $5.15 million, representing 0.24% of total loans, an improvement compared to $15.3 million or 0.72% of loans at March 31, 2024.
The allowance for credit losses-loans was $26.3 million, or 1.20% of total loans held for investment at June 30, 2024, compared to $23.8 million, or 1.06% of total loans held for investment at March 31, 2024. The increase was driven primarily by a specific allowance related to a loan acquired in the Partners Merger as described above, which experienced credit deterioration that was present at the time of the merger and required a day one purchase accounting adjustment that increased the allowance for credit losses by $2.3 million and increased goodwill by $1.8 million. The allowance for credit losses-loans to nonperforming assets was 248.26% at June 30, 2024, compared to 357.18% at March 31, 2024.
Capital
The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of June 30, 2024. The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 11.09% and 10.30% respectively, at June 30, 2024, compared to 10.62% and 9.92%, respectively, at December 31, 2023 and 11.04% and 10.24%, respectively, at March 31, 2023. The Company's ratio of Tangible Common Equity to Tangible Assets was 6.82%1 at March 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 merger with Partners; 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.
Given that the Company's merger with Partners Bancorp ("Partners") was completed on November 30, 2023 (the "Partners Merger"), reported results prior to the fourth quarter of 2023 included in the following tables reflect legacy LINKBANCORP results only.
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| LINKBANCORP, Inc. and Subsidiaries | ||||||||||
| Consolidated Balance Sheet (Unaudited) | ||||||||||
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| | | June 30, 2024 | | March 31, 2024 | | December 31, 2023 | | September 30, 2023 | | June 30, 2023 |
| (In Thousands, except share and per share data) | | | | | | | | | | |
| ASSETS | | | | | | | | | | |
| Noninterest-bearing cash equivalents | | $ 14,516 | | $ 13,552 | | $ 13,089 | | $ 5,447 | | $ 4,736 |
| Interest-bearing deposits with other institutions | | 167,141 | | 158,731 | | 67,101 | | 62,532 | | 118,438 |
| Cash and cash equivalents | | 181,657 | | 172,283 | | 80,190 | | 67,979 | | 123,174 |
| Certificates of deposit with other banks | | — | | — | | — | | 249 | | 498 |
| Securities available for sale, at fair value | | 140,121 | | 133,949 | | 115,490 | | 78,779 | | 83,620 |
| Securities held to maturity, net of allowance for credit losses | | 35,343 | | 36,109 | | 36,223 | | 37,266 | | 38,220 |
| Loans receivable, gross | | 2,193,197 | | 2,129,919 | | 2,128,284 | | 978,912 | | 969,533 |
| Allowance for credit losses - loans | | (26,288) | | (23,842) | | (23,767) | | (9,964) | | (10,228) |
| Loans receivable, net | | 2,166,909 | | 2,106,077 | | 2,104,517 | | 968,948 | | 959,305 |
| Investments in restricted bank stock | | 4,928 | | 4,286 | | 3,965 | | 3,107 | | 5,544 |
| Premises and equipment, net | | 18,364 | | 20,102 | | 20,130 | | 6,414 | | 6,292 |
| Right-of-Use Asset – premises | | 13,970 | | 14,577 | | 15,497 | | 9,727 | | 9,896 |
| Bank-owned life insurance | | 49,616 | | 49,230 | | 48,847 | | 24,732 | | 24,554 |
| Goodwill and other intangible assets | | 82,129 | | 81,494 | | 82,701 | | 36,715 | | 36,774 |
| Deferred tax asset | | 22,024 | | 22,717 | | 24,153 | | 6,880 | | 6,571 |
| Assets held for sale | | 118,362 | | 118,115 | | 115,499 | | — | | — |
| Accrued interest receivable and other assets | | 25,170 | | 26,730 | | 22,113 | | 14,899 | | 14,024 |
| TOTAL ASSETS | | $ 2,858,593 | | $ 2,785,669 | | $ 2,669,325 | | $ 1,255,695 | | $ 1,308,472 |
| LIABILITIES | | | | | | | | | | |
| Deposits: | | | | | | | | | | |
| Demand, noninterest bearing | | $ 661,292 | | $ 618,277 | | $ 624,780 | | $ 210,404 | | $ 240,729 |
| Interest bearing | | 1,699,220 | | 1,662,124 | | 1,574,019 | | 831,368 | | 794,113 |
| Total deposits | | 2,360,512 | | 2,280,401 | | 2,198,799 | | 1,041,772 | | 1,034,842 |
| Long-term borrowings | | 40,000 | | 40,000 | | — | | — | | 74,899 |
| Short-term borrowings | | — | | — | | 10,000 | | 15,000 | | — |
| Note payable | | 578 | | 584 | | 590 | | — | | — |
| Subordinated debt | | 61,706 | | 61,573 | | 61,444 | | 40,354 | | 40,398 |
| Lease liabilities | | 14,746 | | 15,357 | | 16,361 | | 9,728 | | 9,896 |
| Liabilities held for sale | | 96,916 | | 105,716 | | 99,777 | | — | | — |
| Accrued interest payable and other liabilities | | 12,726 | | 13,795 | | 16,558 | | 7,490 | | 5,985 |
| TOTAL LIABILITIES | | 2,587,184 | | 2,517,426 | | 2,403,529 | | 1,114,344 | | 1,166,020 |
| SHAREHOLDERS' EQUITY | | | | | | | | | | |
| Preferred stock | | — | | — | | — | | — | | — |
| Common stock | | 370 | | 369 | | 369 | | 162 | | 162 |
| Surplus | | 263,795 | | 263,577 | | 263,310 | | 127,856 | | 127,818 |
| Retained earnings | | 10,826 | | 7,724 | | 4,843 | | 19,062 | | 19,039 |
| Accumulated other comprehensive loss | | (3,582) | | (3,427) | | (3,209) | | (5,729) | | (4,567) |
| Total equity attributable to parent | | 271,409 | | 268,243 | | 265,313 | | 141,351 | | 142,452 |
| Noncontrolling interest in consolidated subsidiary | | — | | — | | 483 | | — | | — |
| TOTAL SHAREHOLDERS' EQUITY | | 271,409 | | 268,243 | | 265,796 | | 141,351 | | 142,452 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | | $ 2,858,593 | | $ 2,785,669 | | $ 2,669,325 | | $ 1,255,695 | | $ 1,308,472 |
| Common shares outstanding | | 37,356,278 | | 37,348,151 | | 37,340,700 | | 16,235,871 | | 16,228,440 |
| LINKBANCORP, Inc. and Subsidiaries | ||||||||||||
| Consolidated Statements of Operations (Unaudited) | ||||||||||||
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| | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |||||||
| | | 6/30/2024 | | 3/31/2024 | | 6/30/2023 | | | | 6/30/2024 | | 6/30/2023 |
| (In Thousands, except share and per share data) | | | | | | | | | | | | |
| INTEREST AND DIVIDEND INCOME | | | | | | | | | | | | |
| Loans receivable, including fees | | $ 36,112 | | $ 36,125 | | $ 12,499 | | | | $ 72,237 | | $ 24,261 |
| Other | | 3,337 | | 2,650 | | 1,827 | | | | 5,987 | | 3,055 |
| Total interest and dividend income | | 39,449 | | 38,775 | | 14,326 | | | | 78,224 | | 27,316 |
| INTEREST EXPENSE | | | | | | | | | | | | |
| Deposits | | 13,071 | | 11,847 | | 5,242 | | | | 24,918 | | 9,759 |
| Other Borrowings | | 932 | | 1,086 | | 558 | | | | 2,018 | | 645 |
| Subordinated Debt | | 962 | | 958 | | 437 | | | | 1,920 | | 869 |
| Total interest expense | | 14,965 | | 13,891 | | 6,237 | | | | 28,856 | | 11,273 |
| NET INTEREST INCOME BEFORE | | 24,484 | | 24,884 | | 8,089 | | | | 49,368 | | 16,043 |
| Provision for (credit to) credit losses | | — | | 40 | | (493) | | | | 40 | | (200) |
| NET INTEREST INCOME AFTER | | 24,484 | | 24,844 | | 8,582 | | | | 49,328 | | 16,243 |
| NONINTEREST INCOME | | | | | | | | | | | | |
| Service charges on deposit accounts | | 865 | | 780 | | 197 | | | | 1,645 | | 396 |
| Bank-owned life insurance | | 386 | | 383 | | 170 | | | | 769 | | 310 |
| Net realized gains (losses) on the sale of debt securities | | 4 | | — | | — | | | | 4 | | (2,370) |
| Gain on sale of loans | | 12 | | 50 | | 296 | | | | 62 | | 296 |
| Other | | 591 | | 516 | | 223 | | | | 1,107 | | 401 |
| Total noninterest income | | 1,858 | | 1,729 | | 886 | | | | 3,587 | | (967) |
| NONINTEREST EXPENSE | | | | | | | | | | | | |
| Salaries and employee benefits | | 9,941 | | 11,118 | | 4,037 | | | | 21,059 | | 8,157 |
| Occupancy | | 1,559 | | 1,578 | | 696 | | | | 3,137 | | 1,403 |
| Equipment and data processing | | 1,824 | | 1,826 | | 893 | | | | 3,650 | | 1,586 |
| Professional fees | | 788 | | 748 | | 418 | | | | 1,536 | | 799 |
| FDIC insurance | | 545 | | 352 | | 184 | | | | 897 | | 343 |
| Bank Shares Tax | | 760 | | 591 | | 278 | | | | 1,351 | | 556 |
| Intangible amortization | | 1,204 | | 1,207 | | 59 | | | | 2,411 | | 120 |
| Merger & restructuring expenses | | 631 | | 56 | | 315 | | | | 687 | | 902 |
| Advertising | | 241 | | 234 | | 104 | | | | 475 | | 191 |
| Other | | 1,407 | | 1,540 | | 832 | | | | 2,947 | | 1,496 |
| Total noninterest expense | | 18,900 | | 19,250 | | 7,816 | | | | 38,150 | | 15,553 |
| Income (loss) before income tax expense (benefit) | | 7,442 | | 7,323 | | 1,652 | | | | 14,765 | | (277) |
| Income tax expense (benefit) | | 1,638 | | 1,597 | | 305 | | | | 3,235 | | (70) |
| NET INCOME (LOSS) | | $ 5,804 | | $ 5,726 | | $ 1,347 | | | | $ 11,530 | | $ (207) |
| | | | | | | | | | | | | |
| EARNINGS (LOSS) PER SHARE, BASIC | | $ 0.16 | | $ 0.15 | | $ 0.08 | | | | $ 0.31 | | $ (0.01) |
| EARNINGS (LOSS) PER SHARE, DILUTED | | $ 0.16 | | $ 0.15 | | $ 0.08 | | | | $ 0.31 | | $ (0.01) |
| WEIGHTED-AVERAGE COMMON SHARES | | | | | | | | | | | | |
| BASIC | | 36,970,768 | | 36,962,005 | | 16,228,069 | | | | 36,966,371 | | 15,856,574 |
| DILUTED | | 37,040,748 | | 37,045,230 | | 16,228,069 | | | | 37,042,895 | | 15,856,574 |
| LINKBANCORP, Inc. and Subsidiaries | |||||||||
| Financial Highlights (Unaudited) | |||||||||
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| | For the Three Months Ended | | For the Six Months Ended | ||||||
| ('Dollars In Thousands, except per share data) | 6/30/2024 | | 3/31/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 |
| Operating Highlights | | | | | | | | | |
| Net Income (loss) | $ 5,804 | | $ 5,726 | | $ 1,347 | | $ 11,530 | | $ (207) |
| Net Interest Income | 24,484 | | 24,884 | | 8,089 | | 49,368 | | 16,043 |
| Provision for (credit to) Credit Losses | - | | 40 | | (493) | | 40 | | (200) |
| Non-Interest Income | 1,858 | | 1,729 | | 886 | | 3,587 | | (967) |
| Non-Interest Expense | 18,900 | | 19,250 | | 7,816 | | 38,150 | | 15,553 |
| Earnings (loss) per Share, Basic | 0.16 | | 0.15 | | 0.08 | | 0.31 | | (0.01) |
| Adjusted Earnings per Share, Basic (2) | 0.17 | | 0.16 | | 0.10 | | 0.33 | | 0.15 |
| Earnings (loss) per Share, Diluted | 0.16 | | 0.15 | | 0.08 | | 0.31 | | (0.01) |
| Adjusted Earnings per Share, Diluted (2) | 0.17 | | 0.16 | | 0.10 | | 0.33 | | 0.15 |
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| Selected Operating Ratios | | | | | | | | | |
| Net Interest Margin | 3.83 % | | 4.03 % | | 2.81 % | | 3.92 % | | 2.86 % |
| Annualized Return on Assets ("ROA") | 0.84 % | | 0.86 % | | 0.43 % | | 0.85 % | | -0.03 % |
| Adjusted ROA2 | 0.91 % | | 0.86 % | | 0.51 % | | 0.89 % | | 0.39 % |
| Annualized Return on Equity ("ROE") | 8.65 % | | 8.63 % | | 3.81 % | | 8.61 % | | -0.30 % |
| Adjusted ROE2 | 9.39 % | | 8.70 % | | 4.51 % | | 9.04 % | | 3.42 % |
| Efficiency Ratio | 71.75 % | | 72.33 % | | 87.09 % | | 72.04 % | | 103.16 % |
| Adjusted Efficiency Ratio3 | 69.34 % | | 72.12 % | | 83.58 % | | 70.75 % | | 83.98 % |
| Noninterest Income to Avg. Assets | 0.27 % | | 0.26 % | | 0.28 % | | 0.26 % | | -0.16 % |
| Noninterest Expense to Avg. Assets | 2.73 % | | 2.88 % | | 2.51 % | | 2.80 % | | 2.56 % |
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| | | | | | | | | | |
| | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | 6/30/2023 |
| Financial Condition Data | | | | | | | | | |
| Total Assets | $ 2,858,593 | | $ 2,785,669 | | $ 2,669,325 | | $ 1,255,695 | | $ 1,308,472 |
| Loans Receivable, Net | 2,166,909 | | 2,106,077 | | 2,104,517 | | 968,948 | | 959,305 |
| | | | | | | | | | |
| Noninterest-bearing Deposits | 661,292 | | 618,277 | | 624,780 | | 210,404 | | 240,729 |
| Interest-bearing Deposits | 1,699,220 | | 1,662,124 | | 1,574,019 | | 831,368 | | 794,113 |
| Total Deposits | 2,360,512 | | 2,280,401 | | 2,198,799 | | 1,041,772 | | 1,034,842 |
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| Selected Balance Sheet Ratios | | | | | | | | | |
| Total Capital Ratio1 | 11.09 % | | 11.04 % | | 10.62 % | | 12.92 % | | 12.88 % |
| Tier 1 Capital Ratio1 | 10.30 % | | 10.24 % | | 9.92 % | | 12.37 % | | 12.29 % |
| Common Equity Tier 1 Capital Ratio1 | 10.30 % | | 10.24 % | | 9.92 % | | 12.37 % | | 12.29 % |
| Leverage Ratio1 | 9.17 % | | 9.23 % | | 14.13 % | | 10.71 % | | 10.41 % |
| Tangible Common Equity to Tangible Assets4 | 6.82 % | | 6.91 % | | 7.08 % | | 8.58 % | | 8.31 % |
| Tangible Book Value per Share5 | $ 5.07 | | $ 5.00 | | $ 4.90 | | $ 6.44 | | $ 6.51 |
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| Asset Quality Data | | | | | | | | | |
| Non-performing Assets | $ 10,589 | | $ 6,675 | | $ 7,250 | | $ 2,958 | | $ 2,856 |
| Non-performing Assets to Total Assets | 0.37 % | | 0.24 % | | 0.27 % | | 0.24 % | | 0.22 % |
| Non-performing Loans to Total Loans | 0.48 % | | 0.31 % | | 0.34 % | | 0.30 % | | 0.29 % |
| Allowance for Credit Losses - Loans ("ACLL") | $ 26,288 | | $ 23,842 | | $ 23,767 | | $ 9,964 | | $ 10,228 |
| ACLL to Total Loans6 | 1.20 % | | 1.06 % | | 1.06 % | | 1.02 % | | 1.05 % |
| ACLL to Nonperforming Assets | 248.26 % | | 357.18 % | | 327.82 % | | 336.85 % | | 358.12 % |
| Net (recoveries) chargeoffs | $ (20) | | $ 70 | | $ 195 | | $ (12) | | $ (97) |
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| (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 June 30, | ||||||||||
| | | 2024 | | 2023 | ||||||||
| (Dollars in thousands) | | Avg Bal | | Interest (2) | | Yield/Rate | | Avg Bal | | Interest (2) | | Yield/Rate |
| Int. Earn. Cash | | $ 121,340 | | $ 1,395 | | 4.62 % | | $ 66,149 | | $ 708 | | 4.29 % |
| Securities | | | | | | | | | | | | |
| Taxable (1) | | 125,885 | | 1,592 | | 5.09 % | | 86,366 | | 822 | | 3.82 % |
| Tax-Exempt | | 41,776 | | 443 | | 4.26 % | | 39,139 | | 378 | | 3.87 % |
| Total Securities | | 167,661 | | 2,035 | | 4.88 % | | 125,505 | | 1,200 | | 3.84 % |
| Total Cash Equiv. and Investments | | 289,001 | | 3,430 | | 4.77 % | | 191,654 | | 1,908 | | 3.99 % |
| Total Loans (3)(4) | | 2,280,041 | | 36,112 | | 6.37 % | | 963,824 | | 12,499 | | 5.20 % |
| Total Earning Assets | | 2,569,042 | | 39,542 | | 6.19 % | | 1,155,478 | | 14,407 | | 5.00 % |
| Other Assets | | 212,097 | | | | | | 95,531 | | | | |
| Total Assets | | $ 2,781,139 | | | | | | $ 1,251,009 | | | | |
| Interest bearing demand(5) | | $ 446,109 | | $ 2,457 | | 2.22 % | | $ 243,539 | | $ 1,261 | | 2.08 % |
| Money market demand(5) | | 581,223 | | 3,271 | | 2.26 % | | 244,355 | | 1,589 | | 2.61 % |
| Time deposits(5) | | 642,919 | | 7,343 | | 4.59 % | | 299,398 | | 2,392 | | 3.20 % |
| Total Borrowings | | 151,596 | | 1,894 | | 5.02 % | | 95,792 | | 995 | | 4.17 % |
| Total Interest-Bearing Liabilities | | 1,821,847 | | 14,965 | | 3.30 % | | 883,084 | | 6,237 | | 2.83 % |
| Non Interest-Bearing Deposits(5) | | 657,939 | | | | | | 209,072 | | | | |
| Total Cost of Funds | | $ 2,479,786 | | $ 14,965 | | 2.43 % | | $ 1,092,156 | | $ 6,237 | | 2.29 % |
| Other Liabilities | | 31,519 | | | | | | 17,073 | | | | |
| Total Liabilities | | $ 2,511,305 | | | | | | $ 1,109,229 | | | | |
| Shareholders' Equity | | $ 269,834 | | | | | | $ 141,780 | | | | |
| Total Liabilities & Shareholders' Equity | | $ 2,781,139 | | | | | | $ 1,251,009 | | | | |
| Net Interest Income/Spread (FTE) | | | | 24,577 | | 2.89 % | | | | 8,170 | | 2.17 % |
| Tax-Equivalent Basis Adjustment | | | | (93) | | | | | | (81) | | |
| Net Interest Income | | | | $ 24,484 | | | | | | $ 8,089 | | |
| Net Interest Margin | | | | | | 3.83 % | | | | | | 2.81 % |
| | ||||||||||||
| (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 | ||||||||||
| | | June 30, 2024 | | March 31, 2024 | ||||||||
| (Dollars in thousands) | | Avg Bal | | Interest (2) | | Yield/Rate | | Avg Bal | | Interest (2) | | Yield/Rate |
| Int. Earn. Cash | | $ 121,340 | | $ 1,395 | | 4.62 % | | $ 82,420 | | $ 898 | | 4.38 % |
| Securities | | | | | | | | | | | | |
| Taxable (1) | | 125,885 | | 1,592 | | 5.09 % | | 114,896 | | 1,391 | | 4.87 % |
| Tax-Exempt | | 41,776 | | 443 | | 4.26 % | | 42,984 | | 457 | | 4.28 % |
| Total Securities | | 167,661 | | 2,035 | | 4.88 % | | 157,880 | | 1,848 | | 4.71 % |
| Total Cash Equiv. and Investments | | 289,001 | | 3,430 | | 4.77 % | | 240,300 | | 2,746 | | 4.60 % |
| Total Loans (3)(4) | | 2,280,041 | | 36,112 | | 6.37 % | | 2,240,714 | | 36,125 | | 6.48 % |
| Total Earning Assets | | 2,569,042 | | 39,542 | | 6.19 % | | 2,481,014 | | 38,871 | | 6.30 % |
| Other Assets | | 212,097 | | | | | | 210,826 | | | | |
| Total Assets | | $ 2,781,139 | | | | | | $ 2,691,840 | | | | |
| Interest bearing demand(5) | | $ 446,109 | | $ 2,457 | | 2.22 % | | $ 424,781 | | $ 1,942 | | 1.84 % |
| Money market demand(5) | | 581,223 | | 3,271 | | 2.26 % | | 587,455 | | 3,174 | | 2.17 % |
| Time deposits(5) | | 642,919 | | 7,343 | | 4.59 % | | 608,192 | | 6,731 | | 4.45 % |
| Total Borrowings | | 151,596 | | 1,894 | | 5.02 % | | 140,621 | | 2,044 | | 5.85 % |
| Total Interest-Bearing Liabilities | | 1,821,847 | | 14,965 | | 3.30 % | | 1,761,049 | | 13,891 | | 3.17 % |
| Non Interest-Bearing Deposits(5) | | 657,939 | | | | | | 632,637 | | | | |
| Total Cost of Funds | | $ 2,479,786 | | $ 14,965 | | 2.43 % | | $ 2,393,686 | | $ 13,891 | | 2.33 % |
| Other Liabilities | | 31,519 | | | | | | 31,359 | | | | |
| Total Liabilities | | $ 2,511,305 | | | | | | $ 2,425,045 | | | | |
| Shareholders' Equity | | $ 269,834 | | | | | | $ 266,795 | | | | |
| Total Liabilities & Shareholders' Equity | | $ 2,781,139 | | | | | | $ 2,691,840 | | | | |
| Net Interest Income/Spread (FTE) | | | | 24,577 | | 2.89 % | | | | 24,980 | | 3.13 % |
| Tax-Equivalent Basis Adjustment | | | | (93) | | | | | | (96) | | |
| Net Interest Income | | | | $ 24,484 | | | | | | $ 24,884 | | |
| Net Interest Margin | | | | | | 3.83 % | | | | | | 4.03 % |
| | ||||||||||||
| (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 Six Months Ended June 30, | ||||||||||
| | | 2024 | | 2023 | ||||||||
| (Dollars in thousands) | | Avg Bal | | Interest (2) | | Yield/Rate | | Avg Bal | | Interest (2) | | Yield/Rate |
| Int. Earn. Cash | | $ 102,471 | | $ 2,293 | | 4.50 % | | $ 55,618 | | $ 983 | | 3.56 % |
| Securities | | | | | | | | | | | | |
| Taxable (1) | | 121,333 | | 2,983 | | 4.94 % | | 84,101 | | 1,475 | | 3.54 % |
| Tax-Exempt | | 42,344 | | 900 | | 4.27 % | | 38,774 | | 756 | | 3.93 % |
| Total Securities | | 163,677 | | 3,883 | | 4.77 % | | 122,875 | | 2,231 | | 3.66 % |
| Total Cash Equiv. and Investments | | 266,148 | | 6,176 | | 4.67 % | | 178,493 | | 3,214 | | 3.63 % |
| Total Loans (3)(4) | | 2,263,595 | | 72,237 | | 6.42 % | | 952,142 | | 24,261 | | 5.14 % |
| Total Earning Assets | | 2,529,743 | | 78,413 | | 6.23 % | | 1,130,635 | | 27,475 | | 4.90 % |
| Other Assets | | 211,138 | | | | | | 93,481 | | | | |
| Total Assets | | $ 2,740,881 | | | | | | $ 1,224,116 | | | | |
| Interest bearing demand(5) | | $ 437,011 | | $ 4,400 | | 2.02 % | | $ 246,235 | | $ 2,449 | | 2.01 % |
| Money market demand(5) | | 584,121 | | 6,445 | | 2.22 % | | 245,747 | | 2,939 | | 2.41 % |
| Time deposits(5) | | 628,616 | | 14,073 | | 4.50 % | | 295,440 | | 4,371 | | 2.98 % |
| Total Borrowings | | 144,509 | | 3,938 | | 5.48 % | | 76,820 | | 1,514 | | 3.97 % |
| Total Interest-Bearing Liabilities | | 1,794,257 | | 28,856 | | 3.23 % | | 864,242 | | 11,273 | | 2.63 % |
| Non Interest-Bearing Deposits(5) | | 646,728 | | | | | | 202,610 | | | | |
| Total Cost of Funds | | $ 2,440,985 | | $ 28,856 | | 2.38 % | | $ 1,066,852 | | $ 11,273 | | 2.13 % |
| Other Liabilities | | 31,360 | | | | | | 16,905 | | | | |
| Total Liabilities | | $ 2,472,345 | | | | | | $ 1,083,757 | | | | |
| Shareholders' Equity | | $ 268,536 | | | | | | $ 140,359 | | | | |
| Total Liabilities & Shareholders' Equity | | $ 2,740,881 | | | | | | $ 1,224,116 | | | | |
| Net Interest Income/Spread (FTE) | | | | 49,557 | | 3.00 % | | | | 16,202 | | 2.27 % |
| Tax-Equivalent Basis Adjustment | | | | (189) | | | | | | (159) | | |
| Net Interest Income | | | | $ 49,368 | | | | | | $ 16,043 | | |
| Net Interest Margin | | | | | | 3.92 % | | | | | | 2.86 % |
| | ||||||||||||
| (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) | | June 30, 2024 | | March 31, 2024 | | December 31, 2023 | | September 30, 2023 | | June 30, 2023 |
| Agriculture and farmland loans | | $ 66,937 | | $ 67,359 | | $ 65,861 | | $ 50,584 | | $ 50,552 |
| Construction loans | | 201,174 | | 194,391 | | 178,483 | | 65,836 | | 75,628 |
| Commercial & industrial loans | | 247,190 | | 218,724 | | 238,343 | | 115,572 | | 104,869 |
| Commercial real estate loans | | | | | | | | | | |
| Multifamily | | 199,740 | | 190,146 | | 180,788 | | 111,853 | | 113,254 |
| Owner occupied | | 492,065 | | 489,467 | | 501,732 | | 160,929 | | 154,520 |
| Non-owner occupied | | 610,649 | | 589,731 | | 580,972 | | 257,344 | | 254,691 |
| Residential real estate loans | | | | | | | | | | |
| First liens | | 400,098 | | 403,300 | | 402,433 | | 172,481 | | 170,271 |
| Second liens and lines of credit | | 71,168 | | 71,060 | | 70,747 | | 27,870 | | 30,148 |
| Consumer and other loans | | 15,514 | | 16,810 | | 16,756 | | 11,869 | | 11,308 |
| Municipal loans | | 4,362 | | 4,473 | | 5,244 | | 4,137 | | 3,929 |
| | | 2,308,897 | | 2,245,461 | | 2,241,359 | | 978,475 | | 969,170 |
| Deferred costs | | 478 | | 356 | | 174 | | 437 | | 363 |
| Total loans receivable | | 2,309,375 | | 2,245,817 | | 2,241,533 | | 978,912 | | 969,533 |
| Less: Loans held for sale | | 116,178 | | 115,898 | | 113,249 | | - | | - |
| Loans Held for Investment | | $ 2,193,197 | | $ 2,129,919 | | $ 2,128,284 | | $ 978,912 | | $ 969,533 |
| LINKBANCORP, Inc. and Subsidiaries | | | ||||||
| Investments in Securities Detail (Unaudited) | | | ||||||
| | | | | | | | | |
| | | June 30, 2024 | | | ||||
| (In Thousands) | | Amortized | | Net | | Fair | | |
| Available for Sale: | | | | | | | | |
| US Government Agency securities | | $ 12,841 | | $ 115 | | $ 12,956 | | |
| US Government Treasury securities | | 3,979 | | (2) | | 3,977 | | |
| Obligations of state and political subdivisions | | 49,242 | | (3,826) | | 45,416 | | |
| Mortgage-backed securities in government-sponsored entities | | 80,363 | | (3,130) | | 77,233 | | |
| Other securities | | 550 | | (11) | | 539 | | |
| | | $ 146,975 | | $ (6,854) | | $ 140,121 | | |
| | | | | | | | | |
| | | Amortized | | Net Unrealized | | Fair Value | | Allowance for |
| Held to Maturity: | | | | | | | | |
| Corporate debentures | | $ 15,000 | | $ (1,794) | | $ 13,206 | | $ (502) |
| Structured mortgage-backed securities | | 20,845 | | (843) | | 20,002 | | - |
| | | $ 35,845 | | $ (2,637) | | $ 33,208 | | $ (502) |
| | | | | | | | | |
| | | December 31, 2023 | | | ||||
| (In Thousands) | | Amortized | | Net | | Fair | | |
| Available for Sale: | | | | | | | | |
| US Government Agency securities | | $ 12,711 | | $ 274 | | $ 12,985 | | |
| US Government Treasury securities | | 4,925 | | 17 | | 4,942 | | |
| Obligations of state and political subdivisions | | 49,640 | | (2,595) | | 47,045 | | |
| Mortgage-backed securities in government-sponsored entities | | 50,795 | | (2,614) | | 48,181 | | |
| Other securities | | 2,301 | | 36 | | 2,337 | | |
| | | $ 120,372 | | $ (4,882) | | $ 115,490 | | |
| | | | | | | | | |
| | | Amortized | | Net Unrealized | | Fair Value | | Allowance for |
| Held to Maturity: | | | | | | | | |
| Corporate debentures | | $ 15,000 | | $ (1,592) | | $ 13,408 | | $ (512) |
| Structured mortgage-backed securities | | 21,735 | | (907) | | 20,828 | | - |
| | | $ 36,735 | | $ (2,499) | | $ 34,236 | | $ (512) |
| LINKBANCORP, Inc. and Subsidiaries | ||||||||||
| Deposits Detail (Unaudited) | ||||||||||
| | | | | | | | | | | |
| (In Thousands) | | June 30, 2024 | | March 31, 2024 | | December 31, 2023 | | September 30, 2023 | | June 30, 2023 |
| Demand, noninterest-bearing | | $ 692,095 | | $ 653,719 | | $ 655,953 | | $ 210,404 | | $ 240,729 |
| Demand, interest-bearing | | 488,043 | | 447,412 | | 438,765 | | 273,673 | | 237,114 |
| Money market and savings | | 582,561 | | 591,982 | | 577,448 | | 258,334 | | 254,632 |
| Time deposits, $250 and over | | 156,621 | | 147,898 | | 134,324 | | 51,563 | | 57,194 |
| Time deposits, other | | 393,603 | | 398,365 | | 372,572 | | 172,798 | | 185,121 |
| Brokered deposits | | 144,429 | | 146,653 | | 119,411 | | 75,000 | | 60,052 |
| | | 2,457,352 | | 2,386,029 | | 2,298,473 | | 1,041,772 | | 1,034,842 |
| Less: Deposits held for sale | | 96,840 | | 105,628 | | 99,674 | | — | | — |
| Total deposits | | $ 2,360,512 | | $ 2,280,401 | | $ 2,198,799 | | $ 1,041,772 | | $ 1,034,842 |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Average Deposits Detail, for the Three Months Ended (Unaudited) | ||||||||||
| | | | | | | | | | | |
| (In Thousands) | | June 30, 2024 | | March 31, 2024 | | December 31, 2023 | | September 30, 2023 | | June 30, 2023 |
| Demand, noninterest-bearing | | $ 657,939 | | $ 632,637 | | $ 371,051 | | $ 209,054 | | $ 209,072 |
| Demand, interest-bearing | | 446,109 | | 424,781 | | 328,342 | | 254,725 | | 243,539 |
| Money market and savings | | 581,223 | | 587,455 | | 367,821 | | 254,849 | | 244,355 |
| Time deposits | | 547,582 | | 518,929 | | 317,747 | | 236,869 | | 236,059 |
| Brokered deposits | | 95,337 | | 89,263 | | 30,832 | | 28,705 | | 63,339 |
| Total deposits | | $ 2,328,190 | | $ 2,253,065 | | $ 1,415,793 | | $ 984,202 | | $ 996,364 |
| | ||||||||||
| 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 Six Months Ended | ||||||
| (Dollars in thousands) | 6/30/2024 | | 3/31/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 |
| Net income (loss) | $ 5,804 | | $ 5,726 | | $ 1,347 | | $ 11,530 | | $ (207) |
| Average assets | 2,781,139 | | 2,691,840 | | 1,251,009 | | 2,740,881 | | 1,224,116 |
| Return on average assets (annualized) | 0.84 % | | 0.86 % | | 0.43 % | | 0.85 % | | -0.03 % |
| Net income (loss) | 5,804 | | 5,726 | | 1,347 | | 11,530 | | (207) |
| Net (gains) losses on sale of securities | (4) | | - | | - | | (4) | | 2,370 |
| Tax effect at 21% | 1 | | - | | - | | 1 | | (498) |
| Merger & restructuring expenses | 631 | | 56 | | 315 | | 687 | | 902 |
| Tax effect at 21% | (133) | | (12) | | (66) | | (144) | | (189) |
| Adjusted Net Income (Non-GAAP) | 6,299 | | 5,770 | | 1,596 | | 12,070 | | 2,378 |
| Average assets | 2,781,139 | | 2,691,840 | | 1,251,009 | | 2,740,881 | | 1,224,116 |
| Adjusted return on average assets (annualized) | 0.91 % | | 0.86 % | | 0.51 % | | 0.89 % | | 0.39 % |
| Adjusted Return on Average Shareholders' Equity | |||||||||
| | For the Three Months Ended | | For the Six Months Ended | ||||||
| (Dollars in thousands) | 6/30/2024 | | 3/31/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 |
| Net income (loss) | $ 5,804 | | $ 5,726 | | $ 1,347 | | $ 11,530 | | $ (207) |
| Average shareholders' equity | 269,834 | | 266,795 | | 141,780 | | 268,536 | | 140,359 |
| Return on average shareholders' equity (annualized) | 8.65 % | | 8.63 % | | 3.81 % | | 8.61 % | | -0.30 % |
| Net income (loss) | 5,804 | | 5,726 | | 1,347 | | 11,530 | | (207) |
| Net (gains) losses on sale of securities | (4) | | - | | - | | (4) | | 2,370 |
| Tax effect at 21% | 1 | | - | | - | | 1 | | (498) |
| Merger & restructuring expenses | 631 | | 56 | | 315 | | 687 | | 902 |
| Tax effect at 21% | (133) | | (12) | | (66) | | (144) | | (189) |
| Adjusted Net Income (Non-GAAP) | 6,299 | | 5,770 | | 1,596 | | 12,070 | | 2,378 |
| Average shareholders' equity | 269,834 | | 266,795 | | 141,780 | | 268,536 | | 140,359 |
| Adjusted return on average shareholders' equity (annualized) | 9.39 % | | 8.70 % | | 4.51 % | | 9.04 % | | 3.42 % |
| Adjusted Efficiency Ratio | |||||||||
| | For the Three Months Ended | | For the Six Months Ended | ||||||
| (Dollars in thousands) | 6/30/2024 | | 3/31/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 |
| GAAP-based efficiency ratio | 71.75 % | | 72.33 % | | 87.09 % | | 72.04 % | | 103.16 % |
| Net interest income | $ 24,484 | | $ 24,884 | | $ 8,089 | | $ 49,368 | | $ 16,043 |
| Noninterest income | 1,858 | | 1,729 | | 886 | | 3,587 | | (967) |
| Less: net gains (losses) on sales of securities | 4 | | - | | - | | 4 | | (2,370) |
| Adjusted revenue (Non-GAAP) | 26,346 | | 26,613 | | 8,975 | | 52,951 | | 17,446 |
| Total noninterest expense | 18,900 | | 19,250 | | 7,816 | | 38,150 | | 15,553 |
| Less: Merger & restructuring expenses | 631 | | 56 | | 315 | | 687 | | 902 |
| Adjusted non-interest expense | 18,269 | | 19,194 | | 7,501 | | 37,463 | | 14,651 |
| Efficiency ratio, as adjusted (Non-GAAP) | 69.34 % | | 72.12 % | | 83.58 % | | 70.75 % | | 83.98 % |
| Adjusted Earnings Per Share | |||||||||
| | For the Three Months Ended | | For the Six Months Ended | ||||||
| (Dollars in thousands, except per share data) | 6/30/2024 | | 3/31/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 |
| GAAP-Based Earnings (Loss) Per Share, Basic | $ 0.16 | | $ 0.15 | | $ 0.08 | | $ 0.31 | | $ (0.01) |
| GAAP-Based Earnings (Loss) Per Share, Diluted | $ 0.16 | | $ 0.15 | | $ 0.08 | | $ 0.31 | | $ (0.01) |
| Net Income (Loss) | $ 5,804 | | $ 5,726 | | $ 1,347 | | $ 11,530 | | $ (207) |
| Net (gains) losses on sale of securities | (4) | | - | | - | | (4) | | 2,370 |
| Tax effect at 21% | 1 | | - | | - | | 1 | | (498) |
| Merger & restructuring expenses | 631 | | 56 | | 315 | | 687 | | 902 |
| Tax effect at 21% | (133) | | (12) | | (66) | | (144) | | (189) |
| Adjusted Net Income (Non-GAAP) | 6,299 | | 5,770 | | 1,596 | | 12,070 | | 2,378 |
| Adjusted Earnings per Share, Basic (Non-GAAP) | $ 0.17 | | $ 0.16 | | $ 0.10 | | $ 0.33 | | $ 0.15 |
| Adjusted Earnings per Share, Diluted (Non-GAAP) | $ 0.17 | | $ 0.16 | | $ 0.10 | | $ 0.33 | | $ 0.15 |
| Tangible Common Equity and Tangible Book Value | ||||||||||
| | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | 6/30/2023 |
| Tangible Common Equity | | (Dollars in thousands, except for share data) | ||||||||
| Total shareholders' equity | | $ 271,409 | | $ 268,243 | | $ 265,796 | | $ 141,351 | | $ 142,452 |
| Adjustments: | | | | | | | | | | |
| Goodwill | | (58,806) | | (56,968) | | (56,968) | | (35,842) | | (35,842) |
| Other intangible assets | | (23,323) | | (24,526) | | (25,733) | | (873) | | (932) |
| Tangible common equity (Non-GAAP) | | $ 189,280 | | $ 186,749 | | $ 183,095 | | $ 104,636 | | $ 105,678 |
| Common shares outstanding | | 37,356,278 | | 37,348,151 | | 37,340,700 | | 16,235,871 | | 16,228,440 |
| Book value per common share | | $ 7.27 | | $ 7.18 | | $ 7.12 | | $ 8.71 | | $ 8.78 |
| Tangible book value per common share (Non-GAAP) | | $ 5.07 | | $ 5.00 | | $ 4.90 | | $ 6.44 | | $ 6.51 |
| Tangible Assets | | | | | | | | | | |
| Total assets | | $ 2,858,593 | | $ 2,785,669 | | $ 2,669,325 | | $ 1,255,695 | | $ 1,308,472 |
| Adjustments: | | | | | | | | | | |
| Goodwill | | (58,806) | | (56,968) | | (56,968) | | (35,842) | | (35,842) |
| Other intangible assets | | (23,323) | | (24,526) | | (25,733) | | (873) | | (932) |
| Tangible assets (Non-GAAP) | | $ 2,776,464 | | $ 2,704,175 | | $ 2,586,624 | | $ 1,218,980 | | $ 1,271,698 |
| Tangible common equity to tangible assets (Non-GAAP) | | 6.82 % | | 6.91 % | | 7.08 % | | 8.58 % | | 8.31 % |
| 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) | 6/30/2024 | | 3/31/2024 | | 6/30/2023 | | 6/30/2024 | | 6/30/2023 |
| Net Income (Loss) - GAAP | $ 5,804 | | $ 5,726 | | $ 1,347 | | $ 11,530 | | $ (207) |
| Net (gains) losses on sale of securities | (4) | | - | | - | | (4) | | 2,370 |
| Tax effect at 21% | 1 | | - | | - | | 1 | | (498) |
| Merger & restructuring expenses | 631 | | 56 | | 315 | | 687 | | 902 |
| Tax effect at 21% | (133) | | (12) | | (66) | | (144) | | (189) |
| Adjusted Net Income (Non-GAAP) | 6,299 | | 5,770 | | 1,596 | | 12,070 | | 2,378 |
| Income tax expense (benefit) | 1,638 | | 1,597 | | 305 | | 3,235 | | (70) |
| Provision for (credit to) credit losses | - | | 40 | | (493) | | 40 | | (200) |
| Tax effect included in Adjusted Net Income | 132 | | 12 | | 66 | | 143 | | 687 |
| Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP) | $ 8,069 | | $ 7,419 | | $ 1,474 | | $ 15,488 | | $ 2,795 |
Contact:
Nicole Davis
Corporate and Investor Relations Officer
717.803.8895
[email protected]
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SOURCE LINKBANCORP, Inc.