HARRISBURG, Pa., July 31,
2023 /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB)
(the "Company"), the parent company of LINKBANK (the "Bank")
reported net income of $1.35 million,
or $0.08 per diluted share, for the
quarter ended June 30, 2023.
Excluding merger related expenses, adjusted earnings were
$1.60 million1, or
$0.101 per diluted share
for the second quarter of 2023.
Second Quarter 2023 Highlights
- Total deposits grew $50.3
million, or 20.5% annualized during the second quarter over
the prior quarter end, including an increase in noninterest bearing
deposits of $36.2 million, and
$14.1 million in interest bearing
deposits. Estimated uninsured deposits, excluding collateralized
public funds and affiliate company accounts, totaled $378.7 million, or 36.7% of total deposits as of
June 30, 2023, compared with
$387.8 million, or 39.4% of total
deposits as of March 31, 2023.
- The Company enhanced its on-balance sheet liquidity, with cash
and cash equivalents as of June 30,
2023 of $123.2 million, up
from $51.7 million at March 31, 2023 and $30.0
million at December 31, 2022.
Total liquidity, including all available borrowing capacity and
brokered deposit availability, together with cash and cash
equivalents and unpledged investment securities, totaled
approximately $507.4 million as of
June 30, 2023.
- Total loans grew $24.2 million
during the second quarter, representing a 10.3% annualized growth
rate, driven primarily by commercial and industrial and commercial
real estate loan activity.
- Net interest income for the second quarter of 2023 was
$8.1 million, compared to
$8.0 million for the first quarter of
2023. Net interest margin was 2.81% for the second quarter of 2023,
compared to 2.95% for the first quarter of 2023. The linked quarter
decrease was primarily due to higher interest expense on deposits
continuing to outpace the increase in interest income from
loans.
- The Company recorded a $493
thousand negative provision for credit losses for the second
quarter of 2023, resulting in an allowance for credit losses of
$10.2 million, or 1.05% of total
loans at June 30, 2023. The negative
provision for credit losses was primarily driven by refinement of
the population of loans individually assessed for impairment under
the current expected credit losses ("CECL") accounting standard,
improvements in internal credit metrics and external forecast
indexes, as well as $97 thousand in
net recoveries, offset by loan growth in the period.
- On June 22, 2023, shareholders of
the Company and Partners Bancorp ("Partners"), each approved the
merger of Partners with and into the Company, with the Company as
the surviving corporation pursuant to the Agreement and Plan of
Merger, dated as of February 22,
2023. The merger is expected to close in the third or fourth
quarter of 2023, subject to regulatory approvals and certain other
customary closing conditions.
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1
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See Appendix A —
Reconciliation to Non-GAAP Financial Measures for the computation
of this non-GAAP measure.
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"We are pleased to report results that evidence continued
balance sheet strength, including increased on-balance sheet
liquidity, a growing core deposit base, and excellent credit
quality." said Andrew Samuel, Chief
Executive Officer. "Although significant uncertainty remains in the
external environment, we are optimistic that the pace of margin
compression will continue to stabilize. Our teams are highly
focused on providing superior service to meet our clients' needs
and we believe the Company is well positioned to successfully
navigate through this climate."
Income Statement
Net interest income before the provision for credit losses for
the second quarter of 2023 increased to $8.1
million compared to $8.0
million in the first quarter of 2023. Net interest margin
was 2.81% for the second quarter of 2023 compared to 2.95% for the
first quarter of 2023. The decrease in net interest margin
for the current quarter was due to the higher average rate paid on
interest-bearing liabilities, which outpaced the increase in the
average yield on interest earning assets. The overall rate and
yield 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 rate of increase
in the cost of funds moderated to 30 basis points in the second
quarter of 2023, primarily resulting from strong growth in the
average balance of non-interest bearing deposits, which increased
approximately $17.0 million to
$209.1 million, compared to
$192.1 million for the first
quarter. The 30 basis points increase in the cost of funds to
2.29% during the second quarter of 2023 was partially offset by a
15 basis point increase in the average yield on interest-earning
assets to 5.00%. The increase in the average yield on
interest-earning assets was primarily due to the increase in the
average yield on loans of 11 basis points to 5.20% during the
second quarter of 2023.
During the second quarter, the Company continued to recognize
results from its increased internal focus and strategy on core
deposit generation, including 123 net new checking accounts opened
for a total of $38 million in new
deposits. Additionally, further momentum in executing the
Company's strategies to service the needs of professional services
firms resulted in 58 new accounts opened during the quarter,
which are expected to fund over the course of the third
quarter. As a result of these positive trends, the Company
expects to allow higher cost brokered deposits to mature, replaced
by core accounts at a lower cost, contributing to further
stabilization in net interest margin.
Noninterest income (expense) improved from a $1.9 million expense in the first quarter of
2023, driven by recognition of a loss upon the sale of debt
securities of $2.37 million, to
$886 thousand in income in the second
quarter of 2023. Excluding the first quarter loss on
the sale of debt securities, adjusted noninterest income for the
second quarter of 2023 increased $369
thousand to $886 thousand,
primarily due to gains on the sale of Small Business Administration
("SBA") loans of $296 thousand and
$57 thousand in commercial
loan-related interest rate swap fees.
Noninterest expense for the second quarter of 2023
increased to $7.8 million compared to
$7.7 million for the first
quarter of 2023. Excluding one time charges relating to the pending
merger with Partners Bancorp of $587
thousand in the first quarter of 2023 and $315 thousand in the second quarter of 2023,
adjusted noninterest expense increased by $351 thousand in the second quarter, impacted by
increased equipment and data processing expense as the Company
continues to enhance its technology platform, as well as elevated
accrual of fraud and operating losses.
Balance Sheet
Total assets were $1.31 billion at
June 30, 2023 compared to
$1.21 billion at March 31, 2023 and $1.06
billion at June 30, 2022.
Deposits and net loans as of June 30,
2023 totaled $1.03 billion and
$959.3 million, respectively,
compared to deposits and net loans of $984.5
million and $934.8 million,
respectively, at March 31, 2023 and
$902.4 million and $786.5 million, respectively, at June 30, 2022.
Total loans increased $24.2
million from March 31, 2023 to
June 30, 2023, or 10.25% annualized,
with the average commercial loan commitment originated during the
second quarter of 2023 totaling approximately $500,000.
The Company has proactively taken additional steps during the
quarter to enhance its on-balance sheet liquidity. Cash and cash
equivalents increased to $123.2
million at June 30, 2023
compared to $51.7 million at March 31,
2023 and $30.0 million at
December 31, 2022. In addition
to growth in core deposits, this position was supported by an
additional $43.7 million in
borrowings related to $75.0 million
in wholesale funding in connection with the execution of a
pay-fixed/receive-floating interest rate swap. The interest
rate swap has a fixed rate of 3.28%, a maturity of five years and
is designated against either a mix of one-month FHLB advances or
brokered certificates of deposits. Classified as a cash flow
hedge, the market fluctuations will not impact future earnings, but
will impact accumulated other comprehensive loss.
Deposits at June 30, 2023 totaled
$1.03 billion, an increase of
$50.3 million compared to
$984.5 million at March 31, 2023. Average deposits increased
by $17.0 million during the quarter,
or 6.9% annualized, driven by a 35.3% increase in average
noninterest bearing deposits from $192.1
million for the first quarter of 2023 to $209.1 million for the second quarter of
2023.
Shareholders' equity increased from $141.6 million at March
31, 2023 to $142.5 million at
June 30, 2023. The increase
included an increase in retained earnings due to net income for the
current quarter, and a decrease in other comprehensive loss
resulting from changes in the interest rate environment, offset by
dividends paid of $1.2
million.
Asset Quality
In the second quarter of 2023, the Company recorded a negative
provision for credit losses, calculated under the CECL model, of
$493 thousand, compared to a
provision for credit losses of $293
thousand in the first quarter. The negative provision
for credit losses included the impact of reductions in the
allowance for credit losses due to refinement of the population of
loans individually assessed for impairment under CECL, improvements
in internal credit metrics and external forecast indexes, as well
as $97 thousand in net recoveries,
offset by loan growth in the period.
Asset quality metrics remain strong. As of June 30, 2023, the Company's non-performing
assets were $2.9 million,
representing 0.22% of total assets. Non-performing assets at
June 30, 2023 excluded purchased with
credit deterioration ("PCD") loans with a balance of $2.1 million. Loans 30-89 days past due at
June 30, 2023 were $1.8 million, representing 0.18% of total
loans.
The allowance for credit losses-loans was $10.2 million, or 1.05% of total loans at
June 30, 2023, compared to the
allowance for credit losses-loans of $10.5
million, or 1.11% of total loans, at March 31, 2023. The allowance for credit
losses-loans to nonperforming assets was 358.12% at June 30, 2023, compared to 438.95% at
March 31, 2023.
The Company's risk management function incorporates extensive
diversification, monitoring and hold limits with respect to the
commercial real estate loan portfolio and management closely
monitors concentration reports and related analyses. The
commercial real estate loan portfolio is well-diversified, with
limited exposure to higher risk segments such as hotels and retail.
Management believes that the office space portfolio,
which includes medical and mixed-use space, and does not involve
properties in major metropolitan business districts, is stable and
does not pose excessive risk. Specifically, at June 30, 2023, the Company had 68 loans related
to office space, with an average loan size of $1.8 million and total current outstanding
balances of $103.0 million. The
largest exposure relating to office space is $8.8 million for a construction loan that will
constitute owner-occupied real estate upon completion.
Eighty-four percent (84%) of office space loans are
guaranteed by high-quality principals and no office loans are past
due 30 days or greater.
Capital
The Bank's regulatory capital ratios are well in excess of
regulatory minimums to be considered "well capitalized" as of
June 30, 2023. The Bank's Total
Capital Ratio and Tier 1 Capital Ratio was 13.55% and 12.94% ,
respectively, at June 30, 2023,
compared to 13.53% and 12.32%, respectively, at March 31, 2023 and 12.89% and 12.41%,
respectively, at December 31, 2022.
The Company's ratio of Tangible Common Equity to Tangible Assets
was 8.31%2 at June 30,
2023.
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.
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2
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See Appendix A —
Reconciliation to Non-GAAP Financial Measures for the computation
of this non-GAAP measure.
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LB-E
LB-D
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LINKBANCORP, Inc. and
Subsidiaries
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Consolidated Balance Sheet
(Unaudited)
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June 30, 2023
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March 31, 2023
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December 31,
2022
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September 30,
2022
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June 30, 2022
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(In Thousands, except share and per share
data)
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ASSETS
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Noninterest-bearing
cash equivalents
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$
4,736
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$
4,545
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$
4,209
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$
8,711
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$
7,563
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Interest-bearing
deposits with other institutions
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118,438
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47,190
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25,802
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66,085
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55,433
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Cash and cash
equivalents
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$
123,174
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$
51,735
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$
30,011
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$
74,796
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$
62,996
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Certificates of
deposit with other banks
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498
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745
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5,623
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8,358
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11,088
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Securities available
for sale, at fair value
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83,620
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86,804
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78,813
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78,698
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85,756
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Securities held to
maturity, net of allowance for credit losses
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38,220
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38,986
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31,822
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32,571
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28,816
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Loans receivable,
gross
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969,533
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945,371
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|
927,871
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863,969
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790,406
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Allowance for credit
losses - loans
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(10,228)
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(10,526)
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(4,666)
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(4,569)
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(3,890)
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Loans receivable,
net
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959,305
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934,845
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923,205
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859,400
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786,516
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Investments in
restricted bank stock
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5,544
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4,134
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|
3,377
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|
3,327
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|
2,567
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Premises and
equipment, net
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6,292
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|
6,497
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|
6,743
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|
9,087
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|
7,915
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Right-of-Use Asset –
Premises
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|
9,896
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|
10,058
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|
10,219
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|
8,920
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|
4,513
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Bank-owned life
insurance
|
|
24,554
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|
24,384
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|
19,244
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|
19,127
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|
19,012
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Goodwill and other
intangible assets
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36,774
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|
36,833
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|
36,894
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|
36,955
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|
37,020
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Deferred tax
asset
|
|
6,571
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|
6,749
|
|
5,619
|
|
6,378
|
|
5,777
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Accrued interest
receivable and other assets
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|
14,024
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|
12,188
|
|
12,084
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|
7,256
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|
7,909
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TOTAL ASSETS
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$
1,308,472
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$
1,213,958
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$
1,163,654
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$
1,144,873
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$
1,059,885
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LIABILITIES
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Deposits:
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Demand, noninterest
bearing
|
|
$
240,729
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|
$
204,495
|
|
$
192,773
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|
$
184,857
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|
$
184,345
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Interest
bearing
|
|
794,113
|
|
780,003
|
|
753,999
|
|
766,853
|
|
718,028
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Total
deposits
|
|
1,034,842
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|
984,498
|
|
946,772
|
|
951,710
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|
902,373
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Other
Borrowings
|
|
74,899
|
|
31,250
|
|
20,938
|
|
—
|
|
1,639
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Subordinated
Debt
|
|
40,398
|
|
40,441
|
|
40,484
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|
40,526
|
|
40,585
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Operating Lease
Liabilities
|
|
9,896
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|
10,058
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|
10,219
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|
8,921
|
|
4,513
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Accrued interest
payable and other liabilities
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|
5,985
|
|
6,130
|
|
6,688
|
|
6,774
|
|
6,004
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TOTAL LIABILITIES
|
|
1,166,020
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1,072,377
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1,025,101
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1,007,931
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955,114
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SHAREHOLDERS' EQUITY
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Preferred
stock
|
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—
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—
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—
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—
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—
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Common
stock
|
|
162
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|
250
|
|
149
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|
149
|
|
99
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Surplus
|
|
127,818
|
|
127,659
|
|
117,709
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|
117,698
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|
83,070
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Retained
earnings
|
|
19,039
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|
18,911
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|
27,100
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|
27,525
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|
26,491
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Accumulated other
comprehensive (loss) income
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|
(4,567)
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|
(5,239)
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|
(6,405)
|
|
(8,430)
|
|
(4,889)
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TOTAL SHAREHOLDERS' EQUITY
|
|
142,452
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|
141,581
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|
138,553
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|
136,942
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|
104,771
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TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
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$
1,308,472
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$
1,213,958
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$
1,163,654
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$
1,144,873
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$
1,059,885
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Common shares
outstanding
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16,228,440
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16,221,692
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14,939,640
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14,939,640
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|
9,838,435
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LINKBANCORP, Inc. and
Subsidiaries
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Consolidated Statements of Operations
(Unaudited)
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|
|
|
|
|
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Three Months Ended
|
|
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Six Months Ended
|
|
|
6/30/2023
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|
3/31/2023
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|
6/30/2022
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|
|
|
6/30/2023
|
|
6/30/2022
|
|
(In Thousands, except share and per share
data)
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|
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INTEREST AND DIVIDEND
INCOME
|
|
|
|
|
|
|
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|
|
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Loans receivable,
including fees
|
|
$
12,499
|
|
$
11,762
|
|
$
8,114
|
|
|
|
$
24,261
|
|
$
15,877
|
|
Other
|
|
1,827
|
|
1,228
|
|
981
|
|
|
|
3,055
|
|
1,600
|
|
Total interest and
dividend income
|
|
14,326
|
|
12,990
|
|
9,095
|
|
|
|
27,316
|
|
17,477
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
5,242
|
|
4,517
|
|
818
|
|
|
|
9,759
|
|
1,483
|
|
Other
Borrowings
|
|
558
|
|
87
|
|
2
|
|
|
|
645
|
|
35
|
|
Subordinated
Debt
|
|
437
|
|
432
|
|
422
|
|
|
|
869
|
|
629
|
|
Total interest
expense
|
|
6,237
|
|
5,036
|
|
1,242
|
|
|
|
11,273
|
|
2,147
|
|
NET INTEREST INCOME
BEFORE (CREDIT TO)
PROVISION FOR CREDIT LOSSES
|
|
8,089
|
|
7,954
|
|
7,853
|
|
|
|
16,043
|
|
15,330
|
|
(Recovery of)
provision for credit losses
|
|
(493)
|
|
293
|
|
395
|
|
|
|
(200)
|
|
675
|
|
NET INTEREST INCOME
AFTER (CREDIT TO)
PROVISION FOR CREDIT LOSSES
|
|
8,582
|
|
7,661
|
|
7,458
|
|
|
|
16,243
|
|
14,655
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
197
|
|
199
|
|
218
|
|
|
|
396
|
|
428
|
|
Bank-owned life
insurance
|
|
170
|
|
140
|
|
114
|
|
|
|
310
|
|
224
|
|
Net realized (losses)
gains on the sale of debt securities
|
|
—
|
|
(2,370)
|
|
—
|
|
|
|
(2,370)
|
|
13
|
|
Gain on sale of
loans
|
|
296
|
|
—
|
|
153
|
|
|
|
296
|
|
333
|
|
Other
|
|
223
|
|
178
|
|
211
|
|
|
|
401
|
|
409
|
|
Total noninterest
income
|
|
886
|
|
(1,853)
|
|
696
|
|
|
|
(967)
|
|
1,407
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
4,037
|
|
4,120
|
|
3,722
|
|
|
|
8,157
|
|
7,378
|
|
Occupancy
|
|
696
|
|
707
|
|
433
|
|
|
|
1,403
|
|
906
|
|
Equipment and data
processing
|
|
893
|
|
693
|
|
595
|
|
|
|
1,586
|
|
1,192
|
|
Professional
fees
|
|
418
|
|
381
|
|
307
|
|
|
|
799
|
|
535
|
|
FDIC
insurance
|
|
184
|
|
159
|
|
138
|
|
|
|
343
|
|
342
|
|
Bank Shares
Tax
|
|
278
|
|
278
|
|
201
|
|
|
|
556
|
|
384
|
|
Merger & system
conversion related expenses
|
|
315
|
|
587
|
|
—
|
|
|
|
902
|
|
—
|
|
Other
|
|
995
|
|
812
|
|
846
|
|
|
|
1,807
|
|
1,603
|
|
Total noninterest
expense
|
|
7,816
|
|
7,737
|
|
6,242
|
|
|
|
15,553
|
|
12,340
|
|
Income (loss) before
income tax expense (benefit)
|
|
1,652
|
|
(1,929)
|
|
1,912
|
|
|
|
(277)
|
|
3,722
|
|
Income tax expense
(benefit)
|
|
305
|
|
(376)
|
|
306
|
|
|
|
(70)
|
|
592
|
|
NET INCOME
(LOSS)
|
|
$
1,347
|
|
$
(1,553)
|
|
$
1,606
|
|
|
|
$
(207)
|
|
$
3,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE, BASIC
|
|
$
0.08
|
|
$
(0.10)
|
|
$
0.16
|
|
|
|
$
(0.01)
|
|
$
0.32
|
|
EARNINGS (LOSS)
PER SHARE, DILUTED
|
|
$
0.08
|
|
$
(0.10)
|
|
$
0.16
|
|
|
|
$
(0.01)
|
|
$
0.31
|
|
WEIGHTED-AVERAGE COMMON
SHARES
OUTSTANDING,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
16,228,069
|
|
15,480,951
|
|
9,836,984
|
|
|
|
15,856,574
|
|
9,831,739
|
|
DILUTED
|
|
16,228,069
|
|
15,480,951
|
|
9,913,477
|
|
|
|
15,856,574
|
|
9,983,742
|
|
LINKBANCORP, Inc. and
Subsidiaries
|
|
Financial Highlights
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
|
('Dollars In Thousands)
|
6/30/2023
|
|
3/31/2023
|
|
6/30/2022
|
|
6/30/2023
|
|
6/30/2022
|
|
Operating Highlights
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
$
1,347
|
|
$
(1,553)
|
|
$
1,606
|
|
$
(207)
|
|
$
3,130
|
|
Net Interest
Income
|
8,089
|
|
7,954
|
|
7,853
|
|
16,043
|
|
15,330
|
|
Provision for (credit
to) Credit Losses
|
(493)
|
|
293
|
|
395
|
|
(200)
|
|
675
|
|
Non-Interest
Income
|
886
|
|
(1,853)
|
|
696
|
|
(967)
|
|
1,407
|
|
Non-Interest
Expense
|
7,816
|
|
7,737
|
|
6,242
|
|
15,553
|
|
12,340
|
|
Earnings (loss) per
Share, Basic
|
0.08
|
|
(0.10)
|
|
0.16
|
|
(0.01)
|
|
0.32
|
|
Adjusted Earnings per
Share, Basic (2)
|
0.10
|
|
0.05
|
|
0.16
|
|
0.15
|
|
0.32
|
|
Earnings (loss) per
Share, Diluted
|
0.08
|
|
(0.10)
|
|
0.16
|
|
(0.01)
|
|
0.31
|
|
Adjusted Earnings per
Share, Diluted (2)
|
0.10
|
|
0.05
|
|
0.16
|
|
0.15
|
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating Ratios
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
2.81 %
|
|
2.95 %
|
|
3.38 %
|
|
2.86 %
|
|
3.39 %
|
|
Annualized Return on
Assets ("ROA")
|
0.43 %
|
|
-0.53 %
|
|
0.63 %
|
|
-0.03 %
|
|
0.63 %
|
|
Adjusted
ROA2
|
0.51 %
|
|
0.27 %
|
|
0.63 %
|
|
0.39 %
|
|
0.63 %
|
|
Annualized Return on
Equity ("ROE")
|
3.81 %
|
|
-4.56 %
|
|
6.13 %
|
|
-0.30 %
|
|
12.31 %
|
|
Adjusted
ROE2
|
4.51 %
|
|
2.30 %
|
|
6.13 %
|
|
3.42 %
|
|
12.27 %
|
|
Efficiency
Ratio
|
87.09 %
|
|
126.82 %
|
|
73.01 %
|
|
103.16 %
|
|
73.73 %
|
|
Adjusted Efficiency
Ratio3
|
83.58 %
|
|
84.41 %
|
|
73.01 %
|
|
83.98 %
|
|
73.79 %
|
|
Noninterest Income to
Avg. Assets
|
0.28 %
|
|
-0.59 %
|
|
0.27 %
|
|
-0.16 %
|
|
0.28 %
|
|
Noninterest Expense to
Avg. Assets
|
2.51 %
|
|
2.59 %
|
|
2.45 %
|
|
2.56 %
|
|
2.49 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2023
|
|
3/31/2023
|
|
12/31/2022
|
|
9/30/2022
|
|
6/30/2022
|
|
Financial Condition Data
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
1,308,472
|
|
$
1,213,958
|
|
$
1,163,654
|
|
$
1,144,873
|
|
$
1,059,885
|
|
Loans Receivable,
Net
|
959,305
|
|
934,845
|
|
923,205
|
|
859,400
|
|
786,516
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
Deposits
|
240,729
|
|
204,495
|
|
192,773
|
|
184,857
|
|
184,345
|
|
Interest-bearing
Deposits
|
794,113
|
|
780,003
|
|
753,999
|
|
766,853
|
|
718,028
|
|
Total
Deposits
|
1,034,842
|
|
984,498
|
|
946,772
|
|
951,710
|
|
902,373
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Ratios
|
|
|
|
|
|
|
|
|
|
|
Total Capital
Ratio1
|
13.55 %
|
|
13.53 %
|
|
12.89 %
|
|
11.55 %
|
|
12.42 %
|
|
Tier 1 Capital
Ratio1
|
12.94 %
|
|
12.32 %
|
|
12.41 %
|
|
11.04 %
|
|
11.94 %
|
|
Common Equity Tier 1
Capital Ratio1
|
12.94 %
|
|
12.32 %
|
|
12.41 %
|
|
11.04 %
|
|
11.94 %
|
|
Leverage
Ratio1
|
10.41 %
|
|
10.78 %
|
|
10.93 %
|
|
9.74 %
|
|
10.10 %
|
|
Tangible Common Equity
to Tangible Assets4
|
8.31 %
|
|
8.90 %
|
|
9.02 %
|
|
9.02 %
|
|
6.62 %
|
|
Tangible Book Value per
Share5
|
$
6.51
|
|
$
6.46
|
|
$
6.80
|
|
$
6.69
|
|
$
6.89
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Data
|
|
|
|
|
|
|
|
|
|
|
Non-performing
Assets
|
$
2,856
|
|
$
2,398
|
|
$
2,500
|
|
$
1,979
|
|
$
1,494
|
|
Non-performing Assets
to Total Assets
|
0.22 %
|
|
0.20 %
|
|
0.21 %
|
|
0.17 %
|
|
0.14 %
|
|
Non-performing Loans to
Total Loans
|
0.29 %
|
|
0.25 %
|
|
0.27 %
|
|
0.23 %
|
|
0.19 %
|
|
Allowance for Credit
Losses - Loans ("ACLL")
|
$
10,228
|
|
$
10,526
|
|
$
4,666
|
|
$
4,569
|
|
$
3,890
|
|
ACLL to Total
Loans
|
1.05 %
|
|
1.11 %
|
|
0.50 %
|
|
0.53 %
|
|
0.49 %
|
|
ACLL to Nonperforming
Assets
|
358.12 %
|
|
438.95 %
|
|
186.64 %
|
|
230.87 %
|
|
260.37 %
|
|
Net chargeoffs
(recoveries)
|
$
(97)
|
|
$
(2)
|
|
$
(60)
|
|
$
(164)
|
|
$
(52)
|
|
|
|
|
|
|
|
|
|
|
|
(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 June
30,
|
|
|
2023
|
|
2022
|
|
(Dollars in thousands)
|
|
Avg Bal
|
|
Interest (2)
|
|
Yield/Rate
|
|
Avg Bal
|
|
Interest (2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
66,149
|
|
$
708
|
|
4.29 %
|
|
$
60,718
|
|
$
97
|
|
0.64 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
86,366
|
|
822
|
|
3.82 %
|
|
74,105
|
|
587
|
|
3.18 %
|
|
Tax-Exempt
|
|
39,139
|
|
378
|
|
3.87 %
|
|
45,030
|
|
377
|
|
3.36 %
|
|
Total
Securities
|
|
125,505
|
|
1,200
|
|
3.84 %
|
|
119,135
|
|
964
|
|
3.25 %
|
|
Total Cash Equiv. and
Investments
|
|
191,654
|
|
1,908
|
|
3.99 %
|
|
179,853
|
|
1,061
|
|
2.37 %
|
|
Total Loans
(3)
|
|
963,824
|
|
12,499
|
|
5.20 %
|
|
751,347
|
|
8,114
|
|
4.33 %
|
|
Total Earning Assets
|
|
1,155,478
|
|
14,407
|
|
5.00 %
|
|
931,200
|
|
9,175
|
|
3.95 %
|
|
Other Assets
|
|
95,531
|
|
|
|
|
|
90,361
|
|
|
|
|
|
Total Assets
|
|
$
1,251,009
|
|
|
|
|
|
$
1,021,561
|
|
|
|
|
|
Interest bearing
demand
|
|
$
243,539
|
|
$
1,261
|
|
2.08 %
|
|
$
270,844
|
|
$
260
|
|
0.39 %
|
|
Money market
demand
|
|
244,355
|
|
1,589
|
|
2.61 %
|
|
224,483
|
|
238
|
|
0.43 %
|
|
Time
deposits
|
|
299,398
|
|
2,392
|
|
3.20 %
|
|
211,033
|
|
320
|
|
0.61 %
|
|
Total
Borrowings
|
|
95,792
|
|
995
|
|
4.17 %
|
|
46,961
|
|
424
|
|
3.62 %
|
|
Total Interest-Bearing
Liabilities
|
|
883,084
|
|
6,237
|
|
2.83 %
|
|
753,321
|
|
1,242
|
|
0.66 %
|
|
Non Int Bearing
Deposits
|
|
209,072
|
|
|
|
|
|
152,691
|
|
|
|
|
|
Total Cost of Funds
|
|
$
1,092,156
|
|
$
6,237
|
|
2.29 %
|
|
$
906,012
|
|
$
1,242
|
|
0.55 %
|
|
Other
Liabilities
|
|
17,073
|
|
|
|
|
|
10,489
|
|
|
|
|
|
Total Liabilities
|
|
$
1,109,229
|
|
|
|
|
|
$
916,501
|
|
|
|
|
|
Shareholders' Equity
|
|
$
141,780
|
|
|
|
|
|
$
105,060
|
|
|
|
|
|
Total Liabilities & Shareholders'
Equity
|
|
$
1,251,009
|
|
|
|
|
|
$
1,021,561
|
|
|
|
|
|
Net Interest Income/Spread
(FTE)
|
|
|
|
8,170
|
|
2.17 %
|
|
|
|
7,933
|
|
3.29 %
|
|
Tax-Equivalent Basis Adjustment
|
|
|
|
(81)
|
|
|
|
|
|
(80)
|
|
|
|
Net Interest Income
|
|
|
|
$
8,089
|
|
|
|
|
|
$
7,853
|
|
|
|
Net Interest Margin
|
|
|
|
|
|
2.81 %
|
|
|
|
|
|
3.38 %
|
|
(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
|
|
|
June 30, 2023
|
|
March 31, 2023
|
|
(Dollars in thousands)
|
|
Avg Bal
|
|
Interest (2)
|
|
Yield/Rate
|
|
Avg Bal
|
|
Interest (2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
66,149
|
|
$
708
|
|
4.29 %
|
|
$
36,470
|
|
$
275
|
|
3.06 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
86,366
|
|
822
|
|
3.82 %
|
|
81,899
|
|
653
|
|
3.23 %
|
|
Tax-Exempt
|
|
39,139
|
|
378
|
|
3.87 %
|
|
38,368
|
|
377
|
|
3.98 %
|
|
Total
Securities
|
|
125,505
|
|
1,200
|
|
3.84 %
|
|
120,267
|
|
1,030
|
|
3.47 %
|
|
Total Cash Equiv. and
Investments
|
|
191,654
|
|
1,908
|
|
3.99 %
|
|
156,737
|
|
1,305
|
|
3.38 %
|
|
Total Loans
(3)
|
|
963,824
|
|
12,499
|
|
5.20 %
|
|
936,510
|
|
11,762
|
|
5.09 %
|
|
Total Earning Assets
|
|
1,155,478
|
|
14,407
|
|
5.00 %
|
|
1,093,247
|
|
13,067
|
|
4.85 %
|
|
Other Assets
|
|
95,531
|
|
|
|
|
|
90,938
|
|
|
|
|
|
Total Assets
|
|
$
1,251,009
|
|
|
|
|
|
$
1,184,185
|
|
|
|
|
|
Interest bearing
demand
|
|
$
243,539
|
|
$
1,261
|
|
2.08 %
|
|
$
251,103
|
|
$
1,188
|
|
1.92 %
|
|
Money market
demand
|
|
244,355
|
|
1,589
|
|
2.61 %
|
|
245,563
|
|
1,350
|
|
2.23 %
|
|
Time
deposits
|
|
299,398
|
|
2,392
|
|
3.20 %
|
|
290,605
|
|
1,979
|
|
2.76 %
|
|
Total
Borrowings
|
|
95,792
|
|
995
|
|
4.17 %
|
|
49,246
|
|
519
|
|
4.27 %
|
|
Total Interest-Bearing
Liabilities
|
|
883,084
|
|
6,237
|
|
2.83 %
|
|
836,517
|
|
5,036
|
|
2.44 %
|
|
Non Int Bearing
Deposits
|
|
209,072
|
|
|
|
|
|
192,135
|
|
|
|
|
|
Total Cost of Funds
|
|
$
1,092,156
|
|
$
6,237
|
|
2.29 %
|
|
$
1,028,652
|
|
$
5,036
|
|
1.99 %
|
|
Other
Liabilities
|
|
17,073
|
|
|
|
|
|
17,508
|
|
|
|
|
|
Total Liabilities
|
|
$
1,109,229
|
|
|
|
|
|
$
1,046,160
|
|
|
|
|
|
Shareholders' Equity
|
|
$
141,780
|
|
|
|
|
|
$
138,025
|
|
|
|
|
|
Total Liabilities & Shareholders'
Equity
|
|
$
1,251,009
|
|
|
|
|
|
$
1,184,185
|
|
|
|
|
|
Net Interest Income/Spread
(FTE)
|
|
|
|
8,170
|
|
2.17 %
|
|
|
|
8,031
|
|
2.41 %
|
|
Tax-Equivalent Basis Adjustment
|
|
|
|
(81)
|
|
|
|
|
|
(77)
|
|
|
|
Net Interest Income
|
|
|
|
$
8,089
|
|
|
|
|
|
$
7,954
|
|
|
|
Net Interest Margin
|
|
|
|
|
|
2.81 %
|
|
|
|
|
|
2.95 %
|
|
(1) Taxable income on securities
includes income from available for sale securities and income from
certificates of deposits with other banks.
|
|
(2) Income stated on a tax equivalent
basis which is a non-GAAP measure and reconciled to GAAP at the
bottom of the table
|
|
(3) Includes the balances of nonaccrual
loans
|
|
LINKBANCORP, Inc. and
Subsidiaries
|
|
Net Interest Margin - Year-To-Date
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June
30,
|
|
|
2023
|
|
2022
|
|
(Dollars in thousands)
|
|
Avg Bal
|
|
Interest (2)
|
|
Yield/Rate
|
|
Avg Bal
|
|
Interest (2)
|
|
Yield/Rate
|
|
Int. Earn.
Cash
|
|
$
55,618
|
|
$
983
|
|
3.56 %
|
|
$
60,229
|
|
$
149
|
|
0.50 %
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
(1)
|
|
84,101
|
|
1,475
|
|
3.54 %
|
|
70,674
|
|
863
|
|
2.46 %
|
|
Tax-Exempt
|
|
38,774
|
|
756
|
|
3.93 %
|
|
45,030
|
|
746
|
|
3.34 %
|
|
Total
Securities
|
|
122,875
|
|
2,231
|
|
3.66 %
|
|
115,704
|
|
1,609
|
|
2.80 %
|
|
Total Cash Equiv. and
Investments
|
|
178,493
|
|
3,214
|
|
3.63 %
|
|
175,933
|
|
1,758
|
|
2.02 %
|
|
Total Loans
(3)
|
|
952,142
|
|
24,261
|
|
5.14 %
|
|
735,256
|
|
15,877
|
|
4.35 %
|
|
Total Earning Assets
|
|
1,130,635
|
|
27,475
|
|
4.90 %
|
|
911,189
|
|
17,635
|
|
3.90 %
|
|
Other Assets
|
|
93,481
|
|
|
|
|
|
88,189
|
|
|
|
|
|
Total Assets
|
|
$
1,224,116
|
|
|
|
|
|
$
999,378
|
|
|
|
|
|
Interest bearing
demand
|
|
$
246,235
|
|
$
2,449
|
|
2.01 %
|
|
$
264,527
|
|
$
505
|
|
0.38 %
|
|
Money market
demand
|
|
245,747
|
|
2,939
|
|
2.41 %
|
|
219,972
|
|
377
|
|
0.35 %
|
|
Time
deposits
|
|
295,440
|
|
4,371
|
|
2.98 %
|
|
203,009
|
|
601
|
|
0.60 %
|
|
Total
Borrowings
|
|
76,820
|
|
1,514
|
|
3.97 %
|
|
52,433
|
|
665
|
|
2.56 %
|
|
Total Interest-Bearing
Liabilities
|
|
864,242
|
|
11,273
|
|
2.63 %
|
|
739,941
|
|
2,148
|
|
0.59 %
|
|
Non Int Bearing
Deposits
|
|
202,610
|
|
|
|
|
|
142,323
|
|
|
|
|
|
Total Cost of Funds
|
|
$
1,066,852
|
|
$
11,273
|
|
2.13 %
|
|
$
882,264
|
|
$
2,148
|
|
0.49 %
|
|
Other
Liabilities
|
|
16,905
|
|
|
|
|
|
10,347
|
|
|
|
|
|
Total Liabilities
|
|
$
1,083,757
|
|
|
|
|
|
$
892,611
|
|
|
|
|
|
Shareholders' Equity
|
|
$
140,359
|
|
|
|
|
|
$
106,767
|
|
|
|
|
|
Total Liabilities & Shareholders'
Equity
|
|
$
1,224,116
|
|
|
|
|
|
$
999,378
|
|
|
|
|
|
Net Interest Income/Spread
(FTE)
|
|
|
|
16,202
|
|
2.27 %
|
|
|
|
15,487
|
|
3.31 %
|
|
Tax-Equivalent Basis
Adjustment
|
|
|
|
(159)
|
|
|
|
|
|
(157)
|
|
|
|
Net Interest Income
|
|
|
|
$
16,043
|
|
|
|
|
|
$
15,330
|
|
|
|
Net Interest Margin
|
|
|
|
|
|
2.86 %
|
|
|
|
|
|
3.39 %
|
|
(1) Taxable income on securities
includes income from available for sale securities and income from
certificates of deposits with other banks.
|
|
(2) Income stated on a tax equivalent
basis which is a non-GAAP measure and reconciled to GAAP at the
bottom of the table
|
|
(3) Includes the balances of nonaccrual
loans
|
|
LINKBANCORP, Inc. and
Subsidiaries
|
|
Loans Receivable Detail
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
|
Agriculture and
farmland loans
|
|
$
50,552
|
|
$
53,301
|
|
$
55,746
|
|
$
53,570
|
|
$ 45,424
|
|
Construction
loans
|
|
75,628
|
|
67,934
|
|
57,713
|
|
49,311
|
|
36,135
|
|
Commercial &
industrial loans
|
|
104,869
|
|
99,356
|
|
104,755
|
|
98,475
|
|
90,979
|
|
Commercial real
estate loans
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily
|
|
113,254
|
|
111,461
|
|
105,390
|
|
95,537
|
|
78,082
|
|
Owner
occupied
|
|
154,520
|
|
151,407
|
|
139,554
|
|
114,863
|
|
164,937
|
|
Non-owner
occupied
|
|
254,691
|
|
249,638
|
|
245,274
|
|
233,887
|
|
165,893
|
|
Residential real
estate loans
|
|
|
|
|
|
|
|
|
|
|
|
First liens
|
|
170,271
|
|
166,478
|
|
168,084
|
|
166,388
|
|
158,774
|
|
Second liens and lines
of credit
|
|
30,148
|
|
30,720
|
|
35,576
|
|
34,620
|
|
35,454
|
|
Consumer and
other loans
|
|
11,308
|
|
10,472
|
|
10,057
|
|
11,929
|
|
8,689
|
|
Municipal
loans
|
|
3,929
|
|
4,292
|
|
5,466
|
|
5,404
|
|
5,814
|
|
|
969,170
|
|
945,059
|
|
927,615
|
|
863,984
|
|
790,181
|
|
Deferred costs
(fees)
|
|
363
|
|
312
|
|
256
|
|
(15)
|
|
225
|
|
Total loans receivable
|
|
$
969,533
|
|
$
945,371
|
|
$
927,871
|
|
$
863,969
|
|
$
790,406
|
|
LINKBANCORP, Inc. and
Subsidiaries
|
|
|
|
Investments in Securities Detail
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2023
|
|
|
|
(In Thousands)
|
|
Amortized
Cost
|
|
Net
Unrealized
Losses
|
|
Fair
Value
|
|
|
|
Available for Sale:
|
|
|
|
|
|
|
|
|
|
U.S. government agency
securities
|
|
$
2,000
|
|
$
(19)
|
|
$
1,981
|
|
|
|
Small Business
Administration loan pools
|
|
726
|
|
(15)
|
|
711
|
|
|
|
Obligations of state
and political subdivisions
|
|
45,651
|
|
(3,721)
|
|
41,930
|
|
|
|
Mortgage-backed
securities in government-sponsored entities
|
|
42,946
|
|
(3,948)
|
|
38,998
|
|
|
|
|
$
91,323
|
|
$
(7,703)
|
|
$
83,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost
|
|
Net
Unrealized
Losses
|
|
Fair Value
|
|
Allowance for
Credit Losses
|
|
Held to Maturity:
|
|
|
|
|
|
|
|
|
|
Corporate
debentures
|
|
$
15,000
|
|
$
(1,782)
|
|
$
13,218
|
|
$
586
|
|
Structured
mortgage-backed securities
|
|
23,806
|
|
(966)
|
|
22,840
|
|
-
|
|
|
$
38,806
|
|
$
(2,748)
|
|
$
36,058
|
|
$
586
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
June 30, 2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30, 2022
|
|
June 30,
2022
|
|
Demand,
noninterest-bearing
|
$
240,729
|
|
$
204,495
|
|
$
192,773
|
|
$
184,857
|
|
$ 184,345
|
|
Demand,
interest-bearing
|
|
237,114
|
|
250,944
|
|
254,478
|
|
305,934
|
|
269,493
|
|
Money market and
savings
|
|
254,632
|
|
241,858
|
|
228,048
|
|
266,743
|
|
235,411
|
|
Time deposits, $250 and
over
|
57,194
|
|
51,855
|
|
46,116
|
|
39,123
|
|
55,507
|
|
Time deposits,
other
|
|
245,173
|
|
235,346
|
|
225,357
|
|
155,053
|
|
157,617
|
|
|
$
1,034,842
|
|
$ 984,498
|
|
$
946,772
|
|
$
951,710
|
|
$
902,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Deposits Detail, for the Three Months Ended
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
June 30, 2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30, 2022
|
|
June 30,
2022
|
|
Demand,
noninterest-bearing
|
$
209,072
|
|
$
192,135
|
|
$
199,556
|
|
$
170,863
|
|
$ 152,691
|
|
Demand,
interest-bearing
|
|
243,539
|
|
251,103
|
|
278,816
|
|
278,637
|
|
270,844
|
|
Money market and
savings
|
|
244,355
|
|
245,563
|
|
245,154
|
|
244,107
|
|
224,483
|
|
Time
deposits
|
|
299,398
|
|
290,605
|
|
211,090
|
|
205,792
|
|
211,033
|
|
|
$ 996,364
|
|
$ 979,406
|
|
$
934,616
|
|
$
899,399
|
|
$
859,051
|
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)
|
6/30/2023
|
|
3/31/2023
|
|
6/30/2022
|
|
6/30/2023
|
|
6/30/2022
|
|
Net income
(loss)
|
$
1,347
|
|
$
(1,553)
|
|
$
1,606
|
|
$
(207)
|
|
$
3,130
|
|
Average
assets
|
1,251,009
|
|
1,184,185
|
|
1,021,561
|
|
1,224,116
|
|
999,378
|
|
Return on average assets
(annualized)
|
0.43 %
|
|
-0.53 %
|
|
0.63 %
|
|
-0.03 %
|
|
0.63 %
|
|
Net income
(loss)
|
1,347
|
|
(1,553)
|
|
1,606
|
|
(207)
|
|
3,130
|
|
Net losses (gains) on
sale of securities
|
-
|
|
2,370
|
|
-
|
|
2,370
|
|
(13)
|
|
Tax effect at
21%
|
-
|
|
(498)
|
|
-
|
|
(498)
|
|
3
|
|
Merger & system
conversion related expenses
|
315
|
|
587
|
|
-
|
|
902
|
|
-
|
|
Tax effect at
21%
|
(66)
|
|
(123)
|
|
-
|
|
(189)
|
|
-
|
|
Adjusted Net Income
(Non-GAAP)
|
1,596
|
|
783
|
|
1,606
|
|
2,378
|
|
3,120
|
|
Average
assets
|
1,251,009
|
|
1,184,185
|
|
1,021,561
|
|
1,224,116
|
|
999,378
|
|
Adjusted return on average assets (annualized)
(Non-GAAP)
|
0.51 %
|
|
0.27 %
|
|
0.63 %
|
|
0.39 %
|
|
0.63 %
|
|
Adjusted Return on Average Shareholders'
Equity
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
|
(Dollars in
thousands)
|
6/30/2023
|
|
3/31/2023
|
|
6/30/2022
|
|
6/30/2023
|
|
6/30/2022
|
|
Net income
(loss)
|
$
1,347
|
|
$
(1,553)
|
|
$
1,606
|
|
$
(207)
|
|
$
3,130
|
|
Average shareholders'
equity
|
141,780
|
|
138,025
|
|
105,060
|
|
140,359
|
|
51,257
|
|
Return on average shareholders' equity
(annualized)
|
3.81 %
|
|
-4.56 %
|
|
6.13 %
|
|
-0.30 %
|
|
12.31 %
|
|
Net income
(loss)
|
1,347
|
|
(1,553)
|
|
1,606
|
|
(207)
|
|
3,130
|
|
Net losses (gains) on
sale of securities
|
-
|
|
2,370
|
|
-
|
|
2,370
|
|
(13)
|
|
Tax effect at
21%
|
-
|
|
(498)
|
|
-
|
|
(498)
|
|
3
|
|
Merger & system
conversion related expenses
|
315
|
|
587
|
|
-
|
|
902
|
|
-
|
|
Tax effect at
21%
|
(66)
|
|
(123)
|
|
-
|
|
(189)
|
|
-
|
|
Adjusted Net Income
(Non-GAAP)
|
1,596
|
|
783
|
|
1,606
|
|
2,378
|
|
3,120
|
|
Average shareholders'
equity
|
141,780
|
|
138,025
|
|
105,060
|
|
140,359
|
|
51,257
|
|
Adjusted return on average shareholders' equity
(annualized)
(Non-GAAP)
|
4.51 %
|
|
2.30 %
|
|
6.13 %
|
|
3.42 %
|
|
12.27 %
|
|
Adjusted Efficiency Ratio
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
|
(Dollars in
thousands)
|
6/30/2023
|
|
3/31/2023
|
|
6/30/2022
|
|
6/30/2023
|
|
6/30/2022
|
|
GAAP-based efficiency ratio
|
87.09 %
|
|
126.82 %
|
|
73.01 %
|
|
103.16 %
|
|
73.73 %
|
|
Net interest
income
|
$
8,089
|
|
$
7,954
|
|
$
7,853
|
|
$
16,043
|
|
$
15,330
|
|
Noninterest
income
|
886
|
|
(1,853)
|
|
696
|
|
(967)
|
|
1,407
|
|
Less: net gains
(losses) on sales of securities
|
-
|
|
(2,370)
|
|
-
|
|
(2,370)
|
|
13
|
|
Adjusted revenue
(Non-GAAP)
|
8,975
|
|
8,471
|
|
8,549
|
|
17,446
|
|
16,724
|
|
Total noninterest
expense
|
7,816
|
|
7,737
|
|
6,242
|
|
15,553
|
|
12,340
|
|
Less: Merger &
system conversion related expenses
|
315
|
|
587
|
|
-
|
|
902
|
|
-
|
|
Adjusted non-interest
expense
|
7,501
|
|
7,150
|
|
6,242
|
|
14,651
|
|
12,340
|
|
Efficiency ratio, as adjusted
(Non-GAAP)
|
83.58 %
|
|
84.41 %
|
|
73.01 %
|
|
83.98 %
|
|
73.79 %
|
|
Tangible Common Equity and Tangible Book
Value
|
|
|
6/30/2023
|
|
3/31/2023
|
|
12/31/2022
|
|
9/30/2022
|
|
6/30/2022
|
|
Tangible Common Equity
|
|
(Dollars in
thousands, except for share data)
|
|
Total shareholders'
equity
|
|
$
142,452
|
|
$
141,581
|
|
$
138,553
|
|
$
136,942
|
|
$
104,771
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
Other intangible
assets
|
|
(932)
|
|
(991)
|
|
(1,052)
|
|
(1,113)
|
|
(1,178)
|
|
Tangible common equity
(Non-GAAP)
|
|
$
105,678
|
|
$
104,748
|
|
$
101,659
|
|
$
99,987
|
|
$
67,751
|
|
Common shares
outstanding
|
|
16,228,440
|
|
16,221,692
|
|
14,939,640
|
|
14,939,640
|
|
9,838,435
|
|
Book value per common share
|
|
$
8.78
|
|
$
8.73
|
|
$
9.27
|
|
$
9.17
|
|
$
10.65
|
|
Tangible book value per common share
(Non-GAAP)
|
|
$
6.51
|
|
$
6.46
|
|
$
6.80
|
|
$
6.69
|
|
$
6.89
|
|
Tangible Assets
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
1,308,472
|
|
$ 1,213,958
|
|
$ 1,163,654
|
|
$ 1,144,873
|
|
$ 1,059,885
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
(35,842)
|
|
Other intangible
assets
|
|
(932)
|
|
(991)
|
|
(1,052)
|
|
(1,113)
|
|
(1,178)
|
|
Tangible assets
(Non-GAAP)
|
|
$
1,271,698
|
|
$ 1,177,125
|
|
$ 1,126,760
|
|
$ 1,107,918
|
|
$ 1,022,865
|
|
Tangible common equity to tangible assets
(Non-GAAP)
|
|
8.31 %
|
|
8.90 %
|
|
9.02 %
|
|
9.02 %
|
|
6.62 %
|
|
Adjusted Earnings Per Share
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
|
(Dollars in thousands,
except per share data)
|
6/30/2023
|
|
3/31/2023
|
|
6/30/2022
|
|
6/30/2023
|
|
6/30/2022
|
|
GAAP-Based Earnings (Loss) Per Share,
Basic
|
$
0.08
|
|
$
(0.10)
|
|
$
0.16
|
|
$
(0.01)
|
|
$
0.32
|
|
GAAP-Based Earnings (Loss) Per Share,
Diluted
|
$
0.08
|
|
$
(0.10)
|
|
$
0.16
|
|
$
(0.01)
|
|
$
0.31
|
|
Net Income
(Loss)
|
$
1,347
|
|
$
(1,553)
|
|
$
1,606
|
|
$
(207)
|
|
$
3,130
|
|
Net losses (gains) on
sale of securities
|
-
|
|
2,370
|
|
-
|
|
2,370
|
|
(13)
|
|
Tax effect at
21%
|
-
|
|
(498)
|
|
-
|
|
(498)
|
|
3
|
|
Merger & system
conversion related expenses
|
315
|
|
587
|
|
-
|
|
902
|
|
-
|
|
Tax effect at
21%
|
(66)
|
|
(123)
|
|
-
|
|
(189)
|
|
-
|
|
Adjusted Net Income
(Non-GAAP)
|
1,596
|
|
783
|
|
1,606
|
|
2,378
|
|
3,120
|
|
Adjusted Earnings per Share, Basic
(Non-GAAP)
|
$
0.10
|
|
$
0.05
|
|
$
0.16
|
|
$
0.15
|
|
$
0.32
|
|
Adjusted Earnings per Share, Diluted
(Non-GAAP)
|
$
0.10
|
|
$
0.05
|
|
$
0.16
|
|
$
0.15
|
|
$
0.31
|
|
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)
|
6/30/2023
|
|
3/31/2023
|
|
6/30/2022
|
|
6/30/2023
|
|
6/30/2022
|
|
Net Income (Loss) - GAAP
|
$
1,347
|
|
$
(1,553)
|
|
$
1,606
|
|
$
(207)
|
|
$
3,130
|
|
Net losses (gains) on
sale of securities
|
-
|
|
2,370
|
|
-
|
|
2,370
|
|
(13)
|
|
Tax effect at
21%
|
-
|
|
(498)
|
|
-
|
|
(498)
|
|
3
|
|
Merger & system
conversion related expenses
|
315
|
|
587
|
|
-
|
|
902
|
|
-
|
|
Tax effect at
21%
|
(66)
|
|
(123)
|
|
-
|
|
(189)
|
|
-
|
|
Adjusted Net Income (Non-GAAP)
|
1,596
|
|
783
|
|
1,606
|
|
2,378
|
|
3,120
|
|
Income tax
expense (benefit)
|
305
|
|
(376)
|
|
306
|
|
(70)
|
|
592
|
|
Provision for
(credit to) credit losses
|
(493)
|
|
293
|
|
395
|
|
(200)
|
|
675
|
|
Tax effect included in
Adjusted Net Income
|
66
|
|
621
|
|
-
|
|
687
|
|
(3)
|
|
Adjusted Pre-tax, Pre-provision Net Income
(Non-GAAP)
|
$
1,474
|
|
$
1,321
|
|
$
2,307
|
|
$
2,795
|
|
$
4,384
|
Contact:
Nicole Ulmer
Corporate and Investor Relations Officer
717.803.8895
IR@LINKBANCORP.COM
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