HARRISBURG, Pa., Oct. 30,
2023 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB)
(the "Company"), the parent company of LINKBANK (the "Bank")
reported net income of $1.24 million,
or $0.08 per diluted share, for the
quarter ended September 30, 2023.
Excluding merger related expenses, adjusted earnings were
$1.85 million1, or
$0.111 per diluted share
for the third quarter of 2023.
Third Quarter 2023 Highlights
- Total deposits grew $6.9 million,
or 2.66% annualized during the third quarter of 2023. For the nine
months ended September 30, 2023,
total deposits grew $95.0 million, or
13.42% annualized, including $17.6
million in growth in noninterest-bearing deposit,
representing 12.23% annualized. Estimated uninsured deposits,
excluding collateralized public funds and affiliate company
accounts, totaled $398.6 million, or
37.8% of total deposits as of September 30,
2023, compared with $378.7
million, or 36.7% of total deposits as of June 30, 2023.
- Total loans grew $9.4 million
during the third quarter of 2023, representing a 3.84% annualized
growth rate, driven primarily by commercial and industrial loan
activity. For the nine months ended September 30, 2023, total loans grew $51.0 million or 7.35% annualized.
- Net interest income for the third quarter of 2023 was
$8.4 million, compared to
$8.1 million for the second quarter
of 2023. Net interest margin expanded slightly from 2.81% for the
second quarter of 2023 to 2.89% for the third quarter of 2023. The
linked quarter increase was primarily due to an increase in average
yield on loans outpacing the increase in cost of funds.
- The Company recorded a $349
thousand negative provision for credit losses for the third
quarter of 2023, resulting in an allowance for credit losses of
$10.0 million, or 1.02% of total
loans at September 30, 2023,
determined in accordance with the current expected credit losses
("CECL") accounting standard. The negative provision for credit
losses was primarily driven by improvements in external forecast
indexes, as well as $12 thousand in
net recoveries, offset by loan growth in the period.
- On October 13, 2023, the Company
and Partners Bancorp ("Partners") announced the receipt of FDIC and
state regulatory approvals for the pending merger of equals, which
is anticipated to close in the fourth quarter of 2023, subject to
the approval of the Board of Governors of the Federal Reserve
System and other customary closing conditions.
1 See
Appendix A — Reconciliation to Non-GAAP Financial Measures for the
computation of this non-GAAP measure.
"This quarter's core results demonstrate progress in our efforts
to position the Company in response to the external environment for
continued growth and performance, including stabilization in net
interest margin and excellent credit quality," said Andrew Samuel, Chief Executive Officer. "With
the anticipated closing of the merger with Partners Bancorp in the
fourth quarter, we continue to place an emphasis on initiatives to
support a strong balance sheet and core earnings as our teams seek
to provide clients with the highest level of service to meet their
needs."
Income Statement
Net interest income before the provision for credit losses for
the third quarter of 2023 increased to $8.4
million compared to $8.1
million in the second quarter of 2023. Net interest margin
was 2.89% for the third quarter of 2023 compared to 2.81% for the
second quarter of 2023. The increase in net interest margin
for the current quarter was primarily due to the higher average
yield on interest earning assets, which outpaced the increase in
the average rate paid on interest bearing liabilities. The overall
yield and rate increases were driven by the multiple federal funds
rate increases that occurred over the preceding twelve months,
coupled with competition for deposits in the market. The average
yield on interest-earning assets increased by 13 basis points over
the prior quarter, primarily due to the increase in the average
yield on loans of 13 basis points to 5.33% during the third
quarter. The increase in the average yield on
interest-earning assets was partially offset by a 6 basis points
increase in the cost of funds to 2.35%.
The Company's core deposit generation strategies continue
to yield positive results, including 88 net new checking accounts
opened during the third quarter of 2023 for a total of $17.5 million in new deposits.
Additionally, further momentum in executing the Company's
strategies to service the needs of professional services firms
resulted in 73 new accounts opened during the quarter, which are
generally expected to fund over the course of the fourth
quarter.
Noninterest income remained consistent quarter over quarter at
$880 thousand for the third quarter
of 2023 compared to $886 thousand in
income for the second quarter of 2023, primarily due to a decline
in gain on sale of loans, offset by a gain related to the
settlement of a legal matter.
Noninterest expense for the third quarter of 2023 increased
to $8.0 million compared to
$7.8 million for the second
quarter of 2023. Excluding one time charges relating to the pending
merger with Partners of $777 thousand
in the third quarter of 2023 and $315
thousand in the second quarter of 2023, adjusted noninterest
expense decreased by $284 thousand to
$7.2 million1 in the third
quarter, impacted primarily by a decrease in recognized external
fraud losses.
1 See
Appendix A — Reconciliation to Non-GAAP Financial Measures for the
computation of this non-GAAP measure.
Balance Sheet
Total assets were $1.26 billion at
September 30, 2023 compared to
$1.31 billion at June 30, 2023 and $1.16
billion at December 31, 2022.
Deposits and net loans as of September
30, 2023 totaled $1.04 billion
and $969.0 million, respectively,
compared to deposits and net loans of $1.03
billion and $959.3 million,
respectively, at June 30, 2023 and
$946.8 million and $923.2 million, respectively, at December 31, 2022.
Total loans increased $9.4 million
from June 30, 2023 to September 30, 2023, or 3.84% annualized, with the
average commercial loan commitment originated during the third
quarter of 2023 totaling approximately $565
thousand with an average outstanding balance of
$306 thousand.
Cash and cash equivalents decreased to $68.0 million at September
30, 2023 compared to $123.2
million at June 30, 2023,
while increasing compared to the $30.0
million balance at December
31, 2022. In addition to loan growth, this change was
primarily a result of the Company decreasing alternative funding by
approximately $45.0 million in the
third quarter.
Deposits at September 30, 2023
totaled $1.042 billion, an increase
of $6.9 million compared to
$1.035 billion at June 30, 2023. Average deposits decreased
by $12.2 million during the current
quarter, driven by a $33.8 million
decrease in average time deposits from $299.4 million for the second quarter of 2023 to
$265.6 million for the third quarter
of 2023, as the Company allowed certain higher cost deposits to
mature. This decline was offset by increases in average
interest-bearing demand and money market deposits as average
noninterest-bearing deposits remained flat.
Shareholders' equity decreased slightly from $142.5 million at June 30,
2023 to $141.4 million at
September 30, 2023. The
decrease was primarily attributed to a $1.2
million increase in other comprehensive loss resulting from
changes in the interest rate environment.
Asset Quality
In the third quarter of 2023, the Company recorded a negative
provision for credit losses, calculated under the CECL model, of
$349 thousand, compared to a negative
provision for credit losses of $493
thousand in the second quarter. The negative provision
for credit losses included the impact of improvements in
external forecast indexes, as well as $12
thousand in net recoveries, offset by loan growth in the
period.
Asset quality metrics remain strong. As of September 30, 2023, the Company's non-performing
assets were $3.0 million,
representing 0.24% of total assets. Non-performing assets at
September 30, 2023 excluded purchased
with credit deterioration ("PCD") loans with a balance of
$2.1 million. Loans 30-89 days
past due at September 30, 2023 were
$1.8 million, representing 0.18% of
total loans.
The allowance for credit losses-loans was $10.0 million, or 1.02% of total loans at
September 30, 2023, compared to the
allowance for credit losses-loans of $10.2
million, or 1.05% of total loans at June 30, 2023. The allowance for credit
losses-loans to nonperforming assets was 336.85% at September 30, 2023, compared to 358.12% at
June 30, 2023.
Capital
The Bank's regulatory capital ratios are well in excess of
regulatory minimums to be considered "well capitalized" as of
September 30, 2023. The Bank's Total
Capital Ratio and Tier 1 Capital Ratio was 12.92% and 12.37%,
respectively, at September 30, 2023,
compared to 12.88% and 12.29%, respectively, at June 30, 2023 and 12.89% and 12.41%,
respectively, at December 31, 2022.
The Company's ratio of Tangible Common Equity to Tangible Assets
was 8.58%1 at September 30,
2023.
1 See
Appendix A — Reconciliation to Non-GAAP Financial Measures for the
computation of this non-GAAP measure.
ABOUT LINKBANCORP, Inc.
LINKBANCORP, Inc. was formed in 2018 with a mission to
positively impact lives through community banking. Its subsidiary
bank, LINKBANK, is a Pennsylvania
state-chartered bank serving individuals, families, nonprofits and
business clients throughout Central and Southeastern Pennsylvania through 10 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 proposed merger with
Partners; changes in general economic trends, including inflation
and changes in interest rates; increased competition; changes in
consumer demand for financial services; our ability to control
costs and expenses; adverse developments in borrower industries
and, in particular, declines in real estate values; changes in and
compliance with federal and state laws that regulate our business
and capital levels; our ability to raise capital as needed; and the
effects of the COVID-19 pandemic and actions taken by governments,
businesses and individuals in response. 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
(In Thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
cash equivalents
|
|
$
5,447
|
|
$
4,736
|
|
$
4,545
|
|
$
4,209
|
|
$
8,711
|
|
Interest-bearing
deposits with other institutions
|
|
62,532
|
|
118,438
|
|
47,190
|
|
25,802
|
|
66,085
|
|
Cash and cash equivalents
|
|
67,979
|
|
123,174
|
|
51,735
|
|
30,011
|
|
74,796
|
|
Certificates of deposit
with other banks
|
|
249
|
|
498
|
|
745
|
|
5,623
|
|
8,358
|
|
Securities available
for sale, at fair value
|
|
78,779
|
|
83,620
|
|
86,804
|
|
78,813
|
|
78,698
|
|
Securities held to
maturity, net of allowance for credit
losses
|
|
37,266
|
|
38,220
|
|
38,986
|
|
31,822
|
|
32,571
|
|
Loans receivable,
gross
|
|
978,912
|
|
969,533
|
|
945,371
|
|
927,871
|
|
863,969
|
|
Allowance for credit
losses - loans
|
|
(9,964)
|
|
(10,228)
|
|
(10,526)
|
|
(4,666)
|
|
(4,569)
|
|
Loans receivable,
net
|
|
968,948
|
|
959,305
|
|
934,845
|
|
923,205
|
|
859,400
|
|
Investments in
restricted bank stock
|
|
3,107
|
|
5,544
|
|
4,134
|
|
3,377
|
|
3,327
|
|
Premises and equipment,
net
|
|
6,414
|
|
6,292
|
|
6,497
|
|
6,743
|
|
9,087
|
|
Right-of-use asset –
premises
|
|
9,727
|
|
9,896
|
|
10,058
|
|
10,219
|
|
8,920
|
|
Bank-owned life
insurance
|
|
24,732
|
|
24,554
|
|
24,384
|
|
19,244
|
|
19,127
|
|
Goodwill and other
intangible assets
|
|
36,715
|
|
36,774
|
|
36,833
|
|
36,894
|
|
36,955
|
|
Deferred tax
asset
|
|
6,880
|
|
6,571
|
|
6,749
|
|
5,619
|
|
6,378
|
|
Accrued interest
receivable and other assets
|
|
14,899
|
|
14,024
|
|
12,188
|
|
12,084
|
|
7,256
|
|
TOTAL
ASSETS
|
|
$
1,255,695
|
|
$
1,308,472
|
|
$
1,213,958
|
|
$
1,163,654
|
|
$
1,144,873
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Demand, noninterest bearing
|
|
$
210,404
|
|
$
240,729
|
|
$
204,495
|
|
$
192,773
|
|
$
184,857
|
|
Interest bearing
|
|
831,368
|
|
794,113
|
|
780,003
|
|
753,999
|
|
766,853
|
|
Total
deposits
|
|
1,041,772
|
|
1,034,842
|
|
984,498
|
|
946,772
|
|
951,710
|
|
Other
Borrowings
|
|
15,000
|
|
74,899
|
|
31,250
|
|
20,938
|
|
—
|
|
Subordinated
Debt
|
|
40,354
|
|
40,398
|
|
40,441
|
|
40,484
|
|
40,526
|
|
Operating Lease
Liabilities
|
|
9,728
|
|
9,896
|
|
10,058
|
|
10,219
|
|
8,921
|
|
Accrued interest
payable and other liabilities
|
|
7,490
|
|
5,985
|
|
6,130
|
|
6,688
|
|
6,774
|
|
TOTAL
LIABILITIES
|
|
1,114,344
|
|
1,166,020
|
|
1,072,377
|
|
1,025,101
|
|
1,007,931
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Common stock
|
|
162
|
|
162
|
|
250
|
|
149
|
|
149
|
|
Surplus
|
|
127,856
|
|
127,818
|
|
127,659
|
|
117,709
|
|
117,698
|
|
Retained
earnings
|
|
19,062
|
|
19,039
|
|
18,911
|
|
27,100
|
|
27,525
|
|
Accumulated other
comprehensive loss
|
|
(5,729)
|
|
(4,567)
|
|
(5,239)
|
|
(6,405)
|
|
(8,430)
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
|
141,351
|
|
142,452
|
|
141,581
|
|
138,553
|
|
136,942
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
1,255,695
|
|
$
1,308,472
|
|
$
1,213,958
|
|
$
1,163,654
|
|
$
1,144,873
|
|
Common shares
outstanding
|
|
16,235,871
|
|
16,228,440
|
|
16,221,692
|
|
14,939,640
|
|
14,939,640
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Consolidated
Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
9/30/2023
|
|
6/30/2023
|
|
9/30/2022
|
|
|
9/30/2023
|
|
9/30/2022
|
|
(In Thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST AND DIVIDEND
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable,
including fees
|
|
$
13,068
|
|
$
12,499
|
|
$
9,410
|
|
|
$
37,330
|
|
$
25,287
|
|
Other
|
|
1,710
|
|
1,827
|
|
1,170
|
|
|
4,765
|
|
2,771
|
|
Total interest and
dividend income
|
|
14,778
|
|
14,326
|
|
10,580
|
|
|
42,095
|
|
28,058
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
5,434
|
|
5,242
|
|
1,389
|
|
|
15,193
|
|
2,872
|
|
Other
Borrowings
|
|
550
|
|
558
|
|
82
|
|
|
1,196
|
|
106
|
|
Subordinated
Debt
|
|
442
|
|
437
|
|
439
|
|
|
1,311
|
|
1,080
|
|
Total interest
expense
|
|
6,426
|
|
6,237
|
|
1,910
|
|
|
17,700
|
|
4,058
|
|
NET INTEREST INCOME
BEFORE (CREDIT TO)
PROVISION FOR CREDIT LOSSES
|
|
8,352
|
|
8,089
|
|
8,670
|
|
|
24,395
|
|
24,000
|
|
(Credit to) provision
for credit losses
|
|
(349)
|
|
(493)
|
|
515
|
|
|
(549)
|
|
1,190
|
|
NET INTEREST INCOME
AFTER (CREDIT TO)
PROVISION FOR CREDIT LOSSES
|
|
8,701
|
|
8,582
|
|
8,155
|
|
|
24,944
|
|
22,810
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
198
|
|
197
|
|
216
|
|
|
593
|
|
644
|
|
Bank-owned life
insurance
|
|
177
|
|
170
|
|
156
|
|
|
488
|
|
381
|
|
Net realized (losses)
gains on the sale of debt securities
|
|
—
|
|
—
|
|
—
|
|
|
(2,370)
|
|
13
|
|
Gain on sale of
loans
|
|
—
|
|
296
|
|
420
|
|
|
296
|
|
753
|
|
Other
|
|
505
|
|
223
|
|
249
|
|
|
905
|
|
658
|
|
Total noninterest
income
|
|
880
|
|
886
|
|
1,041
|
|
|
(88)
|
|
2,449
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
4,193
|
|
4,037
|
|
4,234
|
|
|
12,350
|
|
11,612
|
|
Occupancy
|
|
701
|
|
696
|
|
596
|
|
|
2,104
|
|
1,503
|
|
Equipment and data
processing
|
|
934
|
|
893
|
|
666
|
|
|
2,519
|
|
1,858
|
|
Professional
fees
|
|
363
|
|
418
|
|
330
|
|
|
1,162
|
|
865
|
|
FDIC
insurance
|
|
276
|
|
184
|
|
141
|
|
|
619
|
|
483
|
|
Bank Shares
Tax
|
|
278
|
|
278
|
|
201
|
|
|
834
|
|
585
|
|
Merger & system
conversion related expenses
|
|
777
|
|
315
|
|
—
|
|
|
1,679
|
|
—
|
|
Other
|
|
472
|
|
995
|
|
877
|
|
|
2,280
|
|
2,481
|
|
Total noninterest
expense
|
|
7,994
|
|
7,816
|
|
7,045
|
|
|
23,547
|
|
19,387
|
|
Income before income
tax expense
|
|
1,587
|
|
1,652
|
|
2,151
|
|
|
1,309
|
|
5,872
|
|
Income tax
expense
|
|
347
|
|
305
|
|
379
|
|
|
276
|
|
970
|
|
NET
INCOME
|
|
$
1,240
|
|
$
1,347
|
|
$
1,772
|
|
|
$
1,033
|
|
$
4,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE,
BASIC
|
|
$
0.08
|
|
$
0.08
|
|
$
0.17
|
|
|
$
0.06
|
|
$
0.49
|
|
EARNINGS PER
SHARE, DILUTED
|
|
$
0.08
|
|
$
0.08
|
|
$
0.17
|
|
|
$
0.06
|
|
$
0.48
|
|
WEIGHTED-AVERAGE COMMON
SHARES
OUTSTANDING,
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
16,235,144
|
|
16,228,069
|
|
10,590,079
|
|
|
15,984,151
|
|
10,087,341
|
|
DILUTED
|
|
16,235,144
|
|
16,228,069
|
|
10,590,079
|
|
|
15,984,151
|
|
10,136,457
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Financial Highlights
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
('Dollars In
Thousands)
|
9/30/2023
|
|
6/30/2023
|
|
9/30/2022
|
|
9/30/2023
|
|
9/30/2022
|
|
Operating
Highlights
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
1,240
|
|
$
1,347
|
|
$
1,772
|
|
$
1,033
|
|
$
4,902
|
|
Net Interest
Income
|
8,352
|
|
8,089
|
|
8,670
|
|
24,395
|
|
24,000
|
|
(Credit to) provision
for Credit Losses
|
(349)
|
|
(493)
|
|
515
|
|
(549)
|
|
1,190
|
|
Non-Interest
Income
|
880
|
|
886
|
|
1,041
|
|
(88)
|
|
2,449
|
|
Non-Interest
Expense
|
7,994
|
|
7,816
|
|
7,045
|
|
23,547
|
|
19,387
|
|
Earnings per Share,
Basic
|
0.08
|
|
0.08
|
|
0.17
|
|
0.06
|
|
0.49
|
|
Adjusted Earnings per
Share, Basic (2)
|
0.11
|
|
0.10
|
|
0.17
|
|
0.26
|
|
0.48
|
|
Earnings per Share,
Diluted
|
0.08
|
|
0.08
|
|
0.17
|
|
0.06
|
|
0.48
|
|
Adjusted Earnings per
Share, Diluted (2)
|
0.11
|
|
0.10
|
|
0.17
|
|
0.26
|
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Ratios
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
2.89 %
|
|
2.81 %
|
|
3.51 %
|
|
2.88 %
|
|
3.40 %
|
|
Annualized Return on
Assets ("ROA")
|
0.39 %
|
|
0.43 %
|
|
0.65 %
|
|
0.11 %
|
|
0.63 %
|
|
Adjusted
ROA2
|
0.59 %
|
|
0.51 %
|
|
0.65 %
|
|
0.46 %
|
|
0.63 %
|
|
Annualized Return on
Equity ("ROE")
|
3.46 %
|
|
3.81 %
|
|
6.48 %
|
|
0.98 %
|
|
7.68 %
|
|
Adjusted
ROE2
|
5.17 %
|
|
4.51 %
|
|
6.48 %
|
|
4.00 %
|
|
7.66 %
|
|
Efficiency
Ratio
|
86.59 %
|
|
87.09 %
|
|
72.55 %
|
|
96.87 %
|
|
73.30 %
|
|
Adjusted Efficiency
Ratio3
|
78.17 %
|
|
83.58 %
|
|
72.55 %
|
|
81.97 %
|
|
73.34 %
|
|
Noninterest Income to
Avg. Assets
|
0.28 %
|
|
0.29 %
|
|
0.38 %
|
|
-0.01 %
|
|
0.32 %
|
|
Noninterest Expense to
Avg. Assets
|
2.54 %
|
|
2.52 %
|
|
2.60 %
|
|
2.56 %
|
|
2.51 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2023
|
|
6/30/2023
|
|
3/31/2023
|
|
12/31/2022
|
|
9/30/2022
|
|
Financial Condition
Data
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
1,255,695
|
|
$
1,308,472
|
|
$
1,213,958
|
|
$
1,163,654
|
|
$
1,144,873
|
|
Loans Receivable,
Net
|
968,948
|
|
959,305
|
|
934,845
|
|
923,205
|
|
859,400
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
Deposits
|
210,404
|
|
240,729
|
|
204,495
|
|
192,773
|
|
184,857
|
|
Interest-bearing
Deposits
|
831,368
|
|
794,113
|
|
780,003
|
|
753,999
|
|
766,853
|
|
Total
Deposits
|
1,041,772
|
|
1,034,842
|
|
984,498
|
|
946,772
|
|
951,710
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance
Sheet Ratios
|
|
|
|
|
|
|
|
|
|
|
Total Capital
Ratio1
|
12.92 %
|
|
12.88 %
|
|
13.53 %
|
|
12.89 %
|
|
11.55 %
|
|
Tier 1 Capital
Ratio1
|
12.37 %
|
|
12.29 %
|
|
12.32 %
|
|
12.41 %
|
|
11.04 %
|
|
Common Equity Tier 1
Capital Ratio1
|
12.37 %
|
|
12.29 %
|
|
12.32 %
|
|
12.41 %
|
|
11.04 %
|
|
Leverage
Ratio1
|
10.71 %
|
|
10.41 %
|
|
10.78 %
|
|
10.93 %
|
|
9.74 %
|
|
Tangible Common Equity
to Tangible Assets4
|
8.58 %
|
|
8.31 %
|
|
8.90 %
|
|
9.02 %
|
|
9.02 %
|
|
Tangible Book Value per
Share5
|
$
6.44
|
|
$
6.51
|
|
$
6.46
|
|
$
6.80
|
|
$
6.69
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Data
|
|
|
|
|
|
|
|
|
|
|
Non-performing
Assets
|
$
2,958
|
|
$
2,856
|
|
$
2,398
|
|
$
2,500
|
|
$
1,979
|
|
Non-performing Assets
to Total Assets
|
0.24 %
|
|
0.22 %
|
|
0.20 %
|
|
0.21 %
|
|
0.17 %
|
|
Non-performing Loans to
Total Loans
|
0.30 %
|
|
0.29 %
|
|
0.25 %
|
|
0.27 %
|
|
0.23 %
|
|
Allowance for Credit
Losses - Loans ("ACLL")
|
$
9,964
|
|
$
10,228
|
|
$
10,526
|
|
$
4,666
|
|
$
4,569
|
|
ACLL to Total
Loans
|
1.02 %
|
|
1.05 %
|
|
1.11 %
|
|
0.50 %
|
|
0.53 %
|
|
ACLL to Nonperforming
Assets
|
336.85 %
|
|
358.12 %
|
|
438.95 %
|
|
186.64 %
|
|
230.87 %
|
|
Net chargeoffs
(recoveries)
|
$
(12)
|
|
$
(97)
|
|
$
(2)
|
|
$
(60)
|
|
$
(164)
|
|
|
|
|
|
|
|
|
|
|
|
(1) - These capital
ratios have been calculated using bank-level capital
|
|
(2) - This is a
non-GAAP financial measure. See our reconciliation of
non-GAAP financial measures to their most directly comparable GAAP
financial measures at the end of this release.
|
|
(3) - The efficiency
ratio, as adjusted represents noninterest expense divided by the
sum of net interest income and noninterest income, excluding gains
or losses from securities sales and merger related expenses.
This is a non-GAAP financial measure. See our reconciliation
of non-GAAP financial measures to their most directly comparable
GAAP financial measures at the end of this release.
|
|
(4) - We calculate
tangible common equity as total shareholders' equity less goodwill
and other intangibles, and we calculate tangible assets as total
assets less goodwill and other intangibles. This is a
non-GAAP financial measure. See our reconciliation of
non-GAAP financial measures to their most directly comparable GAAP
financial measures at the end of this release.
|
|
(5) - We calculate
tangible book value per common share as total shareholders' equity
less goodwill and other intangibles, divided by the outstanding
number of shares of our common stock at the end of the relevant
period. Tangible book value per common share is a non-GAAP
financial measure, and, as we calculate tangible book value per
common share, the most directly comparable GAAP financial measure
is book value per common share. See our reconciliation of
non-GAAP financial measures to their most directly comparable GAAP
financial measures at the end of this release.
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Net Interest Margin
- Quarter-To-Date (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30,
|
|
|
2023
|
|
2022
|
|
(Dollars in
thousands)
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
55,514
|
|
$
577
|
|
4.12 %
|
|
$
30,630
|
|
$
157
|
|
2.03 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
82,499
|
|
833
|
|
4.01 %
|
|
86,330
|
|
745
|
|
3.42 %
|
|
Tax-Exempt
|
|
38,589
|
|
378
|
|
3.89 %
|
|
39,258
|
|
339
|
|
3.43 %
|
|
Total
Securities
|
|
121,088
|
|
1,211
|
|
3.97 %
|
|
125,588
|
|
1,084
|
|
3.42 %
|
|
Total Cash Equiv. and
Investments
|
|
176,602
|
|
1,788
|
|
4.02 %
|
|
156,218
|
|
1,241
|
|
3.15 %
|
|
Total Loans
(3)
|
|
971,877
|
|
13,068
|
|
5.33 %
|
|
824,309
|
|
9,410
|
|
4.53 %
|
|
Total Earning
Assets
|
|
1,148,479
|
|
14,856
|
|
5.13 %
|
|
980,527
|
|
10,651
|
|
4.31 %
|
|
Other Assets
|
|
97,995
|
|
|
|
|
|
93,116
|
|
|
|
|
|
Total
Assets
|
|
$
1,246,474
|
|
|
|
|
|
$
1,073,643
|
|
|
|
|
|
Interest bearing
demand
|
|
$
254,725
|
|
$
1,490
|
|
2.32 %
|
|
$
278,637
|
|
$
400
|
|
0.57 %
|
|
Money market
demand
|
|
254,849
|
|
1,827
|
|
2.84 %
|
|
244,107
|
|
568
|
|
0.92 %
|
|
Time
deposits
|
|
265,573
|
|
2,117
|
|
3.16 %
|
|
205,792
|
|
421
|
|
0.81 %
|
|
Total
Borrowings
|
|
102,669
|
|
992
|
|
3.83 %
|
|
52,562
|
|
521
|
|
3.93 %
|
|
Total Interest-Bearing
Liabilities
|
|
877,816
|
|
6,426
|
|
2.90 %
|
|
781,098
|
|
1,910
|
|
0.97 %
|
|
Non Int. Bearing
Deposits
|
|
209,054
|
|
|
|
|
|
170,863
|
|
|
|
|
|
Total Cost of
Funds
|
|
$
1,086,870
|
|
$
6,426
|
|
2.35 %
|
|
$
951,961
|
|
$
1,910
|
|
0.80 %
|
|
Other
Liabilities
|
|
17,230
|
|
|
|
|
|
13,243
|
|
|
|
|
|
Total
Liabilities
|
|
$
1,104,100
|
|
|
|
|
|
$
965,204
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
142,374
|
|
|
|
|
|
$
108,439
|
|
|
|
|
|
Total Liabilities
& Shareholders' Equity
|
|
$
1,246,474
|
|
|
|
|
|
$
1,073,643
|
|
|
|
|
|
Net Interest
Income/Spread (FTE)
|
|
|
|
8,430
|
|
2.23 %
|
|
|
|
8,741
|
|
3.34 %
|
|
Tax-Equivalent Basis
Adjustment
|
|
|
|
(78)
|
|
|
|
|
|
(71)
|
|
|
|
Net Interest
Income
|
|
|
|
$
8,352
|
|
|
|
|
|
$
8,670
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
2.89 %
|
|
|
|
|
|
3.51 %
|
|
(1)
Taxable income on securities includes
income from available for sale securities and income from
certificates of deposits with other banks.
|
|
(2)
Income stated on a tax equivalent basis
which is a non-GAAP measure and reconciled to GAAP at the bottom of
the table
|
|
(3)
Includes the balances of nonaccrual
loans
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Net Interest Margin
- Linked Quarter-To-Date (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
September 30,
2023
|
|
June 30,
2023
|
|
(Dollars in
thousands)
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
55,514
|
|
$
577
|
|
4.12 %
|
|
$
66,149
|
|
$
708
|
|
4.29 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
82,499
|
|
833
|
|
4.01 %
|
|
86,366
|
|
822
|
|
3.82 %
|
|
Tax-Exempt
|
|
38,589
|
|
378
|
|
3.89 %
|
|
39,139
|
|
378
|
|
3.87 %
|
|
Total
Securities
|
|
121,088
|
|
1,211
|
|
3.97 %
|
|
125,505
|
|
1,200
|
|
3.84 %
|
|
Total Cash Equiv. and
Investments
|
|
176,602
|
|
1,788
|
|
4.02 %
|
|
191,654
|
|
1,908
|
|
3.99 %
|
|
Total Loans
(3)
|
|
971,877
|
|
13,068
|
|
5.33 %
|
|
963,824
|
|
12,499
|
|
5.20 %
|
|
Total Earning
Assets
|
|
1,148,479
|
|
14,856
|
|
5.13 %
|
|
1,155,478
|
|
14,407
|
|
5.00 %
|
|
Other Assets
|
|
97,995
|
|
|
|
|
|
95,531
|
|
|
|
|
|
Total
Assets
|
|
$
1,246,474
|
|
|
|
|
|
$
1,251,009
|
|
|
|
|
|
Interest bearing
demand
|
|
$
254,725
|
|
$
1,490
|
|
2.32 %
|
|
$
243,539
|
|
$
1,261
|
|
2.08 %
|
|
Money market
demand
|
|
254,849
|
|
1,827
|
|
2.84 %
|
|
244,355
|
|
1,589
|
|
2.61 %
|
|
Time
deposits
|
|
265,573
|
|
2,117
|
|
3.16 %
|
|
299,398
|
|
2,392
|
|
3.20 %
|
|
Total
Borrowings
|
|
102,669
|
|
992
|
|
3.83 %
|
|
95,792
|
|
995
|
|
4.17 %
|
|
Total Interest-Bearing
Liabilities
|
|
877,816
|
|
6,426
|
|
2.90 %
|
|
883,084
|
|
6,237
|
|
2.83 %
|
|
Non Int Bearing
Deposits
|
|
209,054
|
|
|
|
|
|
209,072
|
|
|
|
|
|
Total Cost of
Funds
|
|
$
1,086,870
|
|
$
6,426
|
|
2.35 %
|
|
$
1,092,156
|
|
$
6,237
|
|
2.29 %
|
|
Other
Liabilities
|
|
17,230
|
|
|
|
|
|
17,073
|
|
|
|
|
|
Total
Liabilities
|
|
$
1,104,100
|
|
|
|
|
|
$
1,109,229
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
142,374
|
|
|
|
|
|
$
141,780
|
|
|
|
|
|
Total Liabilities
& Shareholders' Equity
|
|
$
1,246,474
|
|
|
|
|
|
$
1,251,009
|
|
|
|
|
|
Net Interest
Income/Spread (FTE)
|
|
|
|
8,430
|
|
2.23 %
|
|
|
|
8,170
|
|
2.17 %
|
|
Tax-Equivalent Basis
Adjustment
|
|
|
|
(78)
|
|
|
|
|
|
(81)
|
|
|
|
Net Interest
Income
|
|
|
|
$
8,352
|
|
|
|
|
|
$
8,089
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
2.89 %
|
|
|
|
|
|
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
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Net Interest Margin
- Year-To-Date (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended September 30,
|
|
|
2023
|
|
2022
|
|
(Dollars in
thousands)
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Avg
Bal
|
|
Interest
(2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
51,547
|
|
$
1,561
|
|
4.05 %
|
|
$
50,254
|
|
$
306
|
|
0.81 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
83,343
|
|
2,309
|
|
3.70 %
|
|
86,590
|
|
1,608
|
|
2.48 %
|
|
Tax-Exempt
|
|
38,617
|
|
1,133
|
|
3.92 %
|
|
41,438
|
|
1,085
|
|
3.50 %
|
|
Total
Securities
|
|
121,960
|
|
3,442
|
|
3.77 %
|
|
128,028
|
|
2,693
|
|
2.81 %
|
|
Total Cash Equiv. and
Investments
|
|
173,507
|
|
5,003
|
|
3.86 %
|
|
178,282
|
|
2,999
|
|
2.25 %
|
|
Total Loans
(3)
|
|
958,839
|
|
37,330
|
|
5.21 %
|
|
765,267
|
|
25,287
|
|
4.42 %
|
|
Total Earning
Assets
|
|
1,132,346
|
|
42,333
|
|
5.00 %
|
|
943,549
|
|
28,286
|
|
4.01 %
|
|
Other Assets
|
|
95,406
|
|
|
|
|
|
90,970
|
|
|
|
|
|
Total
Assets
|
|
$
1,227,752
|
|
|
|
|
|
$
1,034,519
|
|
|
|
|
|
Interest bearing
demand
|
|
$
251,058
|
|
$
3,938
|
|
2.10 %
|
|
$
269,282
|
|
$
905
|
|
0.45 %
|
|
Money market
demand
|
|
248,921
|
|
4,766
|
|
2.56 %
|
|
228,105
|
|
945
|
|
0.55 %
|
|
Time
deposits
|
|
283,851
|
|
6,489
|
|
3.06 %
|
|
203,947
|
|
1,022
|
|
0.67 %
|
|
Total
Borrowings
|
|
81,873
|
|
2,507
|
|
4.09 %
|
|
84,382
|
|
1,186
|
|
1.88 %
|
|
Total Interest-Bearing
Liabilities
|
|
865,703
|
|
17,700
|
|
2.73 %
|
|
785,716
|
|
4,058
|
|
0.69 %
|
|
Non Int Bearing
Deposits
|
|
203,415
|
|
|
|
|
|
151,941
|
|
|
|
|
|
Total Cost of
Funds
|
|
$
1,069,118
|
|
$
17,700
|
|
2.21 %
|
|
$
937,657
|
|
$
4,058
|
|
0.58 %
|
|
Other
Liabilities
|
|
17,033
|
|
|
|
|
|
11,517
|
|
|
|
|
|
Total
Liabilities
|
|
$
1,086,151
|
|
|
|
|
|
$
949,174
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
141,601
|
|
|
|
|
|
$
85,345
|
|
|
|
|
|
Total Liabilities
& Shareholders' Equity
|
|
$
1,227,752
|
|
|
|
|
|
$
1,034,519
|
|
|
|
|
|
Net Interest
Income/Spread (FTE)
|
|
|
|
24,633
|
|
2.27 %
|
|
|
|
24,228
|
|
3.32 %
|
|
Tax-Equivalent
Basis Adjustment
|
|
|
|
(238)
|
|
|
|
|
|
(228)
|
|
|
|
Net Interest
Income
|
|
|
|
$
24,395
|
|
|
|
|
|
$
24,000
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
2.88 %
|
|
|
|
|
|
3.40 %
|
|
(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)
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
Agriculture and
farmland loans
|
|
$
50,584
|
|
$
50,552
|
|
$
53,301
|
|
$
55,746
|
|
$
53,570
|
|
Construction
loans
|
|
65,836
|
|
75,628
|
|
67,934
|
|
57,713
|
|
49,311
|
|
Commercial &
industrial loans
|
|
115,572
|
|
104,869
|
|
99,356
|
|
104,755
|
|
98,475
|
|
Commercial real
estate loans
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily
|
|
111,853
|
|
113,254
|
|
111,461
|
|
105,390
|
|
95,537
|
|
Owner
occupied
|
|
161,751
|
|
154,520
|
|
151,407
|
|
139,554
|
|
114,863
|
|
Non-owner
occupied
|
|
256,522
|
|
254,691
|
|
249,638
|
|
245,274
|
|
233,887
|
|
Residential real
estate loans
|
|
|
|
|
|
|
|
|
|
|
|
First
liens
|
|
172,481
|
|
170,271
|
|
166,478
|
|
168,084
|
|
166,388
|
|
Second liens and lines
of credit
|
|
27,870
|
|
30,148
|
|
30,720
|
|
35,576
|
|
34,620
|
|
Consumer and
other loans
|
|
11,869
|
|
11,308
|
|
10,472
|
|
10,057
|
|
11,929
|
|
Municipal
loans
|
|
4,137
|
|
3,929
|
|
4,292
|
|
5,466
|
|
5,404
|
|
|
978,475
|
|
969,170
|
|
945,059
|
|
927,615
|
|
863,984
|
|
Deferred costs
(fees)
|
|
437
|
|
363
|
|
312
|
|
256
|
|
(15)
|
|
Total loans
receivable
|
|
$
978,912
|
|
$
969,533
|
|
$
945,371
|
|
$
927,871
|
|
$
863,969
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
|
|
Investments in
Securities Detail (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2023
|
|
|
|
(In
Thousands)
|
|
Amortized
Cost
|
|
Net
Unrealized
Losses
|
|
Fair
Value
|
|
|
|
Available for
Sale:
|
|
|
|
|
|
|
|
|
|
U.S. government agency
securities
|
|
$
2,000
|
|
$
(18)
|
|
$
1,982
|
|
|
|
Small Business
Administration loan pools
|
|
693
|
|
(14)
|
|
679
|
|
|
|
Obligations of state
and political subdivisions
|
|
45,614
|
|
(5,935)
|
|
39,679
|
|
|
|
Mortgage-backed
securities in government-sponsored entities
|
|
40,987
|
|
(4,548)
|
|
36,439
|
|
|
|
|
$
89,294
|
|
$
(10,515)
|
|
$
78,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost
|
|
Net
Unrealized
Losses
|
|
Fair
Value
|
|
Allowance
for Credit
Losses
|
|
Held to
Maturity:
|
|
|
|
|
|
|
|
|
|
Corporate
debentures
|
|
$
15,000
|
|
$
(1,963)
|
|
$
13,037
|
|
$
512
|
|
Structured
mortgage-backed securities
|
|
22,778
|
|
(1,227)
|
|
21,551
|
|
-
|
|
|
$
37,778
|
|
$
(3,190)
|
|
$
34,588
|
|
$
512
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2022
|
|
|
|
(In
Thousands)
|
|
Amortized
Cost
|
|
Net
Unrealized
Losses
|
|
Fair
Value
|
|
|
|
Available for
Sale:
|
|
|
|
|
|
|
|
|
|
Small Business
Administration loan pools
|
|
$
858
|
|
$
(15)
|
|
$
843
|
|
|
|
Obligations of state
and political subdivisions
|
|
44,189
|
|
(4,020)
|
|
40,169
|
|
|
|
Mortgage-backed
securities in government-sponsored entities
|
|
41,873
|
|
(4,072)
|
|
37,801
|
|
|
|
|
$
86,920
|
|
$
(8,107)
|
|
$
78,813
|
|
|
|
Held to
Maturity:
|
|
|
|
|
|
|
|
|
|
Corporate
debentures
|
|
$
14,993
|
|
$
(994)
|
|
$
13,999
|
|
|
|
Structured
mortgage-backed securities
|
|
16,829
|
|
(748)
|
|
16,081
|
|
|
|
|
$
31,822
|
|
$
(1,742)
|
|
$
30,080
|
|
|
|
LINKBANCORP, Inc.
and Subsidiaries
|
|
Deposits Detail
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands)
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
Demand,
noninterest-bearing
|
$
210,404
|
|
$
240,729
|
|
$
204,495
|
|
$
192,773
|
|
$
184,857
|
|
Demand,
interest-bearing
|
|
273,673
|
|
237,114
|
|
250,944
|
|
254,478
|
|
305,934
|
|
Money market and
savings
|
|
258,334
|
|
254,632
|
|
241,858
|
|
228,048
|
|
266,743
|
|
Time deposits, $250 and
over
|
51,563
|
|
57,194
|
|
51,855
|
|
46,116
|
|
39,123
|
|
Time deposits,
other
|
|
247,798
|
|
245,173
|
|
235,346
|
|
225,357
|
|
155,053
|
|
|
$ 1,041,772
|
|
$ 1,034,842
|
|
$
984,498
|
|
$
946,772
|
|
$
951,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Deposits
Detail, for the Three Months Ended (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands)
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
Demand,
noninterest-bearing
|
$
209,054
|
|
$
209,072
|
|
$
192,135
|
|
$
199,556
|
|
$
170,863
|
|
Demand,
interest-bearing
|
|
254,725
|
|
243,539
|
|
251,103
|
|
278,816
|
|
278,637
|
|
Money market and
savings
|
|
254,849
|
|
244,355
|
|
245,563
|
|
245,154
|
|
244,107
|
|
Time
deposits
|
|
265,573
|
|
299,398
|
|
290,605
|
|
211,090
|
|
205,792
|
|
|
$
984,201
|
|
$
996,364
|
|
$
979,406
|
|
$
934,616
|
|
$
899,399
|
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 Nine Months
Ended
|
|
(Dollars in
thousands)
|
9/30/2023
|
|
6/30/2023
|
|
9/30/2022
|
|
9/30/2023
|
|
9/30/2022
|
|
Net
income
|
$
1,240
|
|
$
1,347
|
|
$
1,772
|
|
$
1,033
|
|
$
4,902
|
|
Average
assets
|
1,246,474
|
|
1,251,009
|
|
1,073,643
|
|
1,227,752
|
|
1,034,519
|
|
Return on average
assets (annualized)
|
0.39 %
|
|
0.43 %
|
|
0.65 %
|
|
0.11 %
|
|
0.63 %
|
|
Net
income
|
1,240
|
|
1,347
|
|
1,772
|
|
1,033
|
|
4,902
|
|
Net losses (gains) on
sale of securities
|
-
|
|
-
|
|
-
|
|
2,370
|
|
(13)
|
|
Tax effect at
21%
|
-
|
|
-
|
|
-
|
|
(498)
|
|
3
|
|
Merger & system
conversion related expenses
|
777
|
|
315
|
|
-
|
|
1,679
|
|
-
|
|
Tax effect at
21%
|
(163)
|
|
(66)
|
|
-
|
|
(353)
|
|
-
|
|
Adjusted Net Income
(Non-GAAP)
|
1,854
|
|
1,596
|
|
1,772
|
|
4,231
|
|
4,892
|
|
Average
assets
|
1,246,474
|
|
1,251,009
|
|
1,073,643
|
|
1,227,752
|
|
1,034,519
|
|
Adjusted return on
average assets (annualized)
(Non-GAAP)
|
0.59 %
|
|
0.51 %
|
|
0.65 %
|
|
0.46 %
|
|
0.63 %
|
|
Adjusted Return on
Average Shareholders' Equity
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
(Dollars in
thousands)
|
9/30/2023
|
|
6/30/2023
|
|
9/30/2022
|
|
9/30/2023
|
|
9/30/2022
|
|
Net
income
|
$
1,240
|
|
$
1,347
|
|
$ 1,772
|
|
$
1,033
|
|
$
4,902
|
|
Average shareholders'
equity
|
142,374
|
|
141,780
|
|
108,439
|
|
141,601
|
|
85,345
|
|
Return on average
shareholders' equity (annualized)
|
3.46 %
|
|
3.81 %
|
|
6.48 %
|
|
0.98 %
|
|
7.68 %
|
|
Net
income
|
1,240
|
|
1,347
|
|
1,772
|
|
1,033
|
|
4,902
|
|
Net losses (gains) on
sale of securities
|
-
|
|
-
|
|
-
|
|
2,370
|
|
(13)
|
|
Tax effect at
21%
|
-
|
|
-
|
|
-
|
|
(498)
|
|
3
|
|
Merger & system
conversion related expenses
|
777
|
|
315
|
|
-
|
|
1,679
|
|
-
|
|
Tax effect at
21%
|
(163)
|
|
(66)
|
|
-
|
|
(353)
|
|
-
|
|
Adjusted Net Income
(Non-GAAP)
|
1,854
|
|
1,596
|
|
1,772
|
|
4,231
|
|
4,892
|
|
Average shareholders'
equity
|
142,374
|
|
141,780
|
|
108,439
|
|
141,601
|
|
85,345
|
|
Adjusted return on
average shareholders' equity (annualized)
(Non-GAAP)
|
5.17 %
|
|
4.51 %
|
|
6.48 %
|
|
4.00 %
|
|
7.66 %
|
|
Adjusted Efficiency
Ratio
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
(Dollars in
thousands)
|
9/30/2023
|
|
6/30/2023
|
|
9/30/2022
|
|
9/30/2023
|
|
9/30/2022
|
|
GAAP-based
efficiency ratio
|
86.59 %
|
|
87.09 %
|
|
72.55 %
|
|
96.87 %
|
|
73.30 %
|
|
Net interest
income
|
$
8,352
|
|
$
8,089
|
|
$ 8,670
|
|
$
24,395
|
|
$ 24,000
|
|
Noninterest
income
|
880
|
|
886
|
|
1,041
|
|
(88)
|
|
2,449
|
|
Less: net gains
(losses) on sales of securities
|
-
|
|
-
|
|
-
|
|
(2,370)
|
|
13
|
|
Adjusted revenue
(Non-GAAP)
|
9,232
|
|
8,975
|
|
9,711
|
|
26,677
|
|
26,436
|
|
Total noninterest
expense
|
7,994
|
|
7,816
|
|
7,045
|
|
23,547
|
|
19,387
|
|
Less: Merger &
system conversion related expenses
|
777
|
|
315
|
|
-
|
|
1,679
|
|
-
|
|
Adjusted non-interest
expense
|
7,217
|
|
7,501
|
|
7,045
|
|
21,868
|
|
19,387
|
|
Efficiency ratio, as
adjusted (Non-GAAP)
|
78.17 %
|
|
83.58 %
|
|
72.55 %
|
|
81.97 %
|
|
73.34 %
|
|
Adjusted Earnings
Per Share
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
(Dollars in thousands,
except per share data)
|
9/30/2023
|
|
6/30/2023
|
|
9/30/2022
|
|
|
9/30/2023
|
|
9/30/2022
|
|
GAAP-Based Earnings
Per Share, Basic
|
$
0.08
|
|
$
0.08
|
|
$
0.17
|
|
|
$
0.06
|
|
$
0.49
|
|
GAAP-Based
Earnings Per Share, Diluted
|
$
0.08
|
|
$
0.08
|
|
$
0.17
|
|
|
$
0.06
|
|
$
0.48
|
|
Net
Income
|
$ 1,240
|
|
$
1,347
|
|
$
1,772
|
|
|
$
1,033
|
|
$
4,902
|
|
Net losses (gains) on
sale of securities
|
-
|
|
-
|
|
-
|
|
|
2,370
|
|
(13)
|
|
Tax effect at
21%
|
-
|
|
-
|
|
-
|
|
|
(498)
|
|
3
|
|
Merger & system
conversion related expenses
|
777
|
|
315
|
|
-
|
|
|
1,679
|
|
-
|
|
Tax effect at
21%
|
(163)
|
|
(66)
|
|
-
|
|
|
(353)
|
|
-
|
|
Adjusted Net Income
(Non-GAAP)
|
1,854
|
|
1,596
|
|
1,772
|
|
|
4,231
|
|
4,892
|
|
Adjusted Earnings
per Share, Basic (Non-GAAP)
|
$
0.11
|
|
$
0.10
|
|
$
0.17
|
|
|
$
0.26
|
|
$
0.48
|
|
Adjusted Earnings
per Share, Diluted (Non-GAAP)
|
$
0.11
|
|
$
0.10
|
|
$
0.17
|
|
|
$
0.26
|
|
$
0.48
|
|
Tangible Common
Equity and Tangible Book Value
|
|
|
9/30/2023
|
|
6/30/2023
|
|
3/31/2023
|
|
12/31/2022
|
|
9/30/2022
|
|
Tangible Common
Equity
|
|
(Dollars in thousands,
except for share data)
|
|
Total shareholders'
equity
|
|
$ 141,351
|
|
$
142,452
|
|
$ 141,581
|
|
$ 138,553
|
|
$
136,942
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
Other intangible
assets
|
|
(873)
|
|
(932)
|
|
(991)
|
|
(1,052)
|
|
(1,113)
|
|
Tangible common equity
(Non-GAAP)
|
|
$ 104,636
|
|
$
105,678
|
|
$ 104,748
|
|
$ 101,659
|
|
$
99,987
|
|
Common shares
outstanding
|
|
16,235,871
|
|
16,228,440
|
|
16,221,692
|
|
14,939,640
|
|
14,939,640
|
|
Book value per
common share
|
|
$
8.71
|
|
$
8.78
|
|
$
8.73
|
|
$
9.27
|
|
$
9.17
|
|
Tangible book value
per common share
(Non-GAAP)
|
|
$
6.44
|
|
$
6.51
|
|
$
6.46
|
|
$
6.80
|
|
$
6.69
|
|
Tangible
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
1,255,695
|
|
$
1,308,472
|
|
$
1,213,958
|
|
$
1,163,654
|
|
$
1,144,873
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
Other intangible
assets
|
|
(873)
|
|
(932)
|
|
(991)
|
|
(1,052)
|
|
(1,113)
|
|
Tangible assets
(Non-GAAP)
|
|
$
1,218,980
|
|
$
1,271,698
|
|
$
1,177,125
|
|
$
1,126,760
|
|
$
1,107,918
|
|
Tangible common
equity to tangible
assets (Non-GAAP)
|
|
8.58 %
|
|
8.31 %
|
|
8.90 %
|
|
9.02 %
|
|
9.02 %
|
|
Adjusted Pre-tax,
Pre-provision Net Income (Non-GAAP)
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
(Dollars in thousands,
except per share data)
|
9/30/2023
|
|
6/30/2023
|
|
9/30/2022
|
|
9/30/2023
|
|
9/30/2022
|
|
Net Income (Loss) -
GAAP
|
$ 1,240
|
|
$
1,347
|
|
$
1,772
|
|
$
1,033
|
|
$
4,902
|
|
Net losses (gains) on
sale of securities
|
-
|
|
-
|
|
-
|
|
2,370
|
|
(13)
|
|
Tax effect at
21%
|
-
|
|
-
|
|
-
|
|
(498)
|
|
3
|
|
Merger & system
conversion related expenses
|
777
|
|
315
|
|
-
|
|
1,679
|
|
-
|
|
Tax effect at
21%
|
(163)
|
|
(66)
|
|
-
|
|
(353)
|
|
-
|
|
Adjusted Net Income
(Non-GAAP)
|
1,854
|
|
1,596
|
|
1,772
|
|
4,231
|
|
4,892
|
|
Income tax
expense
|
347
|
|
305
|
|
379
|
|
276
|
|
970
|
|
(Credit to) provision
for credit losses
|
(349)
|
|
(493)
|
|
515
|
|
(549)
|
|
1,190
|
|
Tax effect included in
Adjusted Net Income
|
163
|
|
66
|
|
-
|
|
851
|
|
(3)
|
|
Adjusted Pre-tax,
Pre-provision Net Income (Non-GAAP)
|
$ 2,015
|
|
$
1,474
|
|
$
2,666
|
|
$
4,809
|
|
$
7,049
|
Contact:
Nicole Davis
Corporate and Investor Relations Officer
717.803.8895
IR@LINKBANCORP.COM
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