LINKBANCORP, Inc. Announces Strong Second Quarter 2025 Earnings and Declares Dividend
July 28, 2025 – HARRISBURG, PA – LINKBANCORP, Inc. (NASDAQ: LNKB) (the “Company”), the parent company of LINKBANK (the “Bank”), reported net income of $7.4 million, or $0.20 per diluted share, for the quarter ended June 30, 2025, compared to net income of $15.3 million, or $0.41 per diluted share, for the quarter ended March 31, 2025. Excluding the sale of branches, merger and restructuring related income and expenses, adjusted earnings were $7.4 million1, or $0.201 per diluted share for both the first and second quarter of 2025.
Additionally, the Company announced that the Board of Directors declared a quarterly cash dividend of $0.075 per share of common stock which is expected to be paid on September 15, 2025 to shareholders of record on August 29, 2025.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Page 2 of 21
Second Quarter 2025 Highlights
•
Stable, strong core earnings. Annualized return on average assets was 1.05% for the second quarter of 2025, compared to 2.19% for the first quarter of 2025 and 0.84% for the second quarter of 2024. Adjusted return on average assets was 1.05%1 for the second quarter of 2025, compared to 1.05%1 for the first quarter of 2025 and 0.91%1 for the second quarter of 2024.
•
Robust balance sheet growth. Total loans at June 30, 2025 were $2.36 billion, compared to $2.27 billion at March 31, 2025 and $2.35 billion at December 31, 2024, representing a quarterly increase of $82.7 million or 14.58% annualized and a year-to-date increase of $107.0 million2or 9.19% annualized excluding the impact of the sale of banking operations and branches in New Jersey, including related loans and deposits (the "Branch Sale"). Total deposits at June 30, 2025 were $2.46 billion compared to $2.43 billion at March 31, 2025 and $2.45 billion at December 31, 2024, representing a quarterly increase of $22.7 million, or 3.74% annualized and a year-to-date increase of $89.36 million2 or 7.34% excluding the impact of the Branch Sale.
•
Improving credit quality. The Company’s non-performing assets declined by $4.2 million to $21.9 million, representing 0.76% of total assets at June 30, 2025, compared to $26.0 million, representing 0.91% of total assets at March 31, 2025. This decrease was driven by resolutions to several loan relationships including a purchased credit deteriorated loan that was resolved at an amount greater than its purchase date fair value. The successful resolutions have decreased specific reserve needs by $2.5 million while enhancing the ratio of the allowance for credit losses-loans to nonperforming assets to 112.68% at June 30, 2025, compared to 102.22% at March 31, 2025.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 3 of 21
•
Disciplined expense management. GAAP noninterest expense for the second quarter of 2025 was $18.1 million with an efficiency ratio of 64.79%, compared to $19.7 million of GAAP noninterest expense with an efficiency ratio of 50.29% for the first quarter of 2025. Excluding non-core operating expenses, the adjusted noninterest expense decreased $697 thousand1 quarter over quarter from $18.7 million1 for the quarter ended March 31, 2025 to $18.0 million1for the quarter ended June 30, 2025. The Company’s adjusted efficiency ratio improved to 64.73%1 for the quarter ended June 30, 2025 compared to 66.96%1for the quarter ended March 31, 2025.
“We are pleased to report another quarter of strong core earnings, combined with exceptional loan and deposit growth throughout our entire footprint,” said Andrew Samuel, Chief Executive Officer of LINKBANCORP. “We remain focused on improving operating efficiency and expanding noninterest income to support our core business and enabling us to deliver sustainable long-term value to our shareholders.”
Income Statement
Net interest income before the provision for credit losses for the second quarter of 2025 was $24.9 million compared to $25.8 million in the first quarter of 2025 and $24.5 million for the second quarter of 2024. Net interest margin was 3.80% for the second quarter of 2025 compared to 3.94% for the first quarter of 2025. Net interest income was impacted by a linked quarter decline in purchase accounting accretion, together with a decrease in the average balances of loans and deposits due to the March 31, 2025 completion of the Branch Sale. Interest income from purchase accounting accretion during the current quarter was approximately $922 thousand less than that recognized in the first quarter of 2025. Cost of funds increased to 2.31% for the second quarter of 2025, compared to 2.29% for the first quarter of 2025, reflecting the lower cost of deposits included in the Branch Sale as well as continued competition for deposits in the Bank’s markets.
Noninterest income decreased quarter-over-quarter to $2.9 million for the second quarter of 2025 compared to $13.3 million for the first quarter of 2025 due to the $11.1 million pre-tax gain from the Branch Sale in the first quarter. Excluding the gain on sale of the New Jersey branches, noninterest income grew by $769 thousand quarter-over-quarter, including increases in swap fee
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 4 of 21
income and interchange income. Year-over-year, noninterest income increased $1.1 million from $1.9 million for the second quarter of 2024.
Noninterest expense for the second quarter of 2025 was $18.1 million compared to $19.7 million for the first quarter of 2025 and $18.9 million for the second quarter of 2024. Excluding non-core operating costs totaling $16 thousand in the second quarter of 2025, $912 thousand in the first quarter of 2025 and $631 thousand in the second quarter of 2024, adjusted noninterest expense decreased $697 thousand1 from $18.7 million1for the first quarter of 2025 to $18.0 million1 for the second quarter of 2025 while decreasing $220 thousand1 year-over-year from $18.3 million1 for the second quarter of 2024. Adjusted non-interest expense for the first quarter of 2025 excludes expenses related to the reduction of the size of the Board of Directors included in other noninterest expense, as well as bonus accruals related to the completion of the Branch Sale included in salaries and employee benefits expense, and other merger and restructuring costs.
Income tax expense was $2.1 million for the second quarter of 2025, reflecting an effective tax rate of 22.0% compared to $3.9 million for the first quarter of 2025, reflecting an effective tax rate of 20.1% and $1.6 million for the second quarter of 2024, reflecting an effective tax rate of 22.0%, respectively. The tax rate increased quarter-over-quarter due to a state income tax apportionment adjustment in the first quarter of 2025.
Balance Sheet
Total assets were $2.89 billion at June 30, 2025 compared to $2.86 billion at March 31, 2025 and $2.88 billion at December 31, 2024. Deposits and net loans as of June 30, 2025 totaled $2.46 billion and $2.33 billion, respectively, compared to deposits and net loans of $2.43 billion and $2.25 billion, respectively at March 31, 2025 and $2.36 billion and $2.23 billion, respectively, at December 31, 2024. Deposits and net loans exclude recorded balances held for sale in the Branch Sale of $93.6 million and $91.8 million, respectively, at December 31, 2024, which are reflected within liabilities held for sale and assets held for sale.
Total loans at June 30, 2025 were $2.36 billion, compared to $2.27 billion at March 31, 2025, representing an increase of $82.7 million. Year-to-date, total loans have increased $107.0 million2 from December 31, 2024, excluding the impact of the Branch Sale, or 9.19% annualized. Total commercial loan commitments originated in the second quarter of 2025 were $154.6
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 5 of 21
million with funded balances of $137.1 million. The average commercial loan commitment originated during the second quarter of 2025 totaled approximately $985 thousand with an average outstanding funded balance of $873 thousand.
Total deposits at June 30, 2025 were $2.46 billion compared to $2.43 billion at March 31, 2025, representing an increase of $22.7 million. Year-to-date, total deposits have increased $89.4 million2from December 31, 2024, excluding the impact of the Branch Sale, or 7.34% annualized. Noninterest bearing deposits totaled $646.7 million at June 30, 2025, generally flat from March 31, 2025. Brokered deposits decreased $28.6 million from $103.6 million at March 31, 2025 to $75.0 million at June 30, 2025. Excluding the $28.6 million change in brokered deposits and the impact from the Branch Sale, deposits increased $118.0 million2 year-to-date representing an annualized growth rate of 10.1%.
The Company continues to maintain strong on-balance sheet liquidity, as cash and cash equivalents were $155.1 million at June 30, 2025 compared to $220.2 million at March 31, 2025 and $166.1 million at December 31, 2024.
Shareholders’ equity increased to $298.0 million at June 30, 2025 from $294.1 million at March 31, 2025 primarily as a result of a $4.6 million increase in retained earnings. Book value per share increased to $7.96 at June 30, 2025 compared to $7.87 at March 31, 2025. Tangible book value per share increased to $5.921 at June 30, 2025 compared to $5.801 at March 31, 2025 and $5.071 at June 30, 2024, representing 17% growth year over year.
Asset Quality
The Company recorded a $344 thousand provision for credit losses during the second quarter of 2025, after recording a $228 thousand provision for credit losses in the first quarter of 2025. The increase in provision was primarily related to commercial loan growth during the second quarter of 2025.
As of June 30, 2025, the Company’s non-performing assets declined by $4.2 million to $21.9 million, representing 0.76% of total assets, compared to $26.0 million, representing 0.91% of total assets at March 31, 2025. This improvement was driven largely by the favorable resolution of a purchased credit deteriorated (PCD) loan above its purchase date fair value.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 6 of 21
Loans 30-89 days past due at June 30, 2025 were $14.5 million, representing 0.62% of total loans compared to $12.7 million or 0.56% of total loans at March 31, 2025 and $2.9 million or 0.13% of total loans at December 31, 2024.
The allowance for credit losses for loans was $24.7 million, or 1.05% of total loans held for investment at June 30, 2025, compared to $26.6 million, or 1.17% of total loans held for investment at March 31, 2025. Due to the resolution of certain nonperforming loans resulting in the improvement in nonperforming assets noted above, the required specific reserve on loans decreased by $2.5 million from March 31, 2025 to June 30, 2025. The ratio of the allowance for credit losses for loans to nonperforming assets increased to 112.68% at June 30, 2025, compared to 102.22% at March 31, 2025.
Net charge-offs continue to improve as the Company recorded $40 thousand in net charge-offs during the second quarter of 2025 compared to $81 thousand for the first quarter of 2025 and $252 thousand in the fourth quarter of 2024.
Capital
The Bank’s regulatory capital ratios were well in excess of regulatory minimums to be considered “well capitalized” as of June 30, 2025. The Bank’s Total Capital Ratio and Tier 1 Capital Ratio were 12.43% and 11.51% respectively, at June 30, 2025, compared to 12.61% and 11.71%, respectively, at March 31, 2025 and 11.09% and 10.30%, respectively, at June 30, 2024. The Company’s ratio of Tangible Common Equity to Tangible Assets was 7.89%1 at June 30, 2025 compared to 7.78%1 at March 31, 2025.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 7 of 21
ABOUT LINKBANCORP, Inc.
LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, LINKBANK, is a Pennsylvania state-chartered bank serving individuals, families, nonprofits and business clients throughout Pennsylvania, Maryland, Delaware and Virginia, through 24 client solutions centers and www.linkbank.com. LINKBANCORP, Inc. common stock is traded on the Nasdaq Capital Market under the symbol "LNKB". For further company information, visit ir.linkbancorp.com.
Forward Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties associated with newly developed or acquired operations; changes in general economic trends, including inflation, tariffs and changes in interest rates; increased competition; changes in consumer demand for financial services; our ability to control costs and expenses; adverse developments in borrower industries and, in particular, declines in real estate values; changes in and compliance with federal and state laws that regulate our business and capital levels; our ability to raise capital as needed; and the effects of any cybersecurity breaches. The Company does not undertake, and specifically disclaims, any obligation to publicly revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. Accordingly, you should not place undue reliance on forward-looking statements.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 8 of 21
LINKBANCORP, Inc. and Subsidiaries
Consolidated Balance Sheet (Unaudited)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
(In Thousands, except share and per share data)
ASSETS
Noninterest-bearing cash equivalents
$
15,319
$
14,830
$
13,834
$
15,295
$
14,516
Interest-bearing deposits with other institutions
139,764
205,352
152,266
175,937
167,141
Cash and cash equivalents
155,083
220,182
166,100
191,232
181,657
Securities available for sale, at fair value
169,569
159,183
145,590
149,315
140,121
Securities held to maturity, net of allowance for credit losses
26,809
27,662
31,508
34,155
35,343
Loans receivable, gross
2,356,609
2,273,941
2,255,749
2,215,868
2,193,197
Allowance for credit losses - loans
(24,651
)
(26,619
)
(26,435
)
(26,542
)
(26,288
)
Loans receivable, net
2,331,958
2,247,322
2,229,314
2,189,326
2,166,909
Investments in restricted bank stock
4,821
4,780
5,209
4,904
4,928
Premises and equipment, net
15,861
17,920
18,029
17,623
18,364
Right-of-Use Asset – premises
15,410
14,537
14,913
14,150
13,970
Bank-owned life insurance
52,943
52,507
52,079
51,646
49,616
Goodwill and other intangible assets
76,296
77,379
79,761
80,924
82,129
Deferred tax asset
16,474
16,729
18,866
21,662
22,024
Assets held for sale
—
—
94,146
104,660
118,362
Accrued interest receivable and other assets
21,330
23,288
23,263
20,344
25,170
TOTAL ASSETS
$
2,886,554
$
2,861,489
$
2,878,778
$
2,879,941
$
2,858,593
LIABILITIES
Deposits:
Demand, noninterest bearing
$
646,654
$
646,002
$
658,646
$
658,473
$
661,292
Interest bearing
1,809,755
1,787,692
1,701,936
1,714,179
1,699,220
Total deposits
2,456,409
2,433,694
2,360,582
2,372,652
2,360,512
Long-term borrowings
40,000
40,000
40,000
40,000
40,000
Short-term borrowings
—
—
10,000
—
—
Note payable
—
559
565
572
578
Subordinated debt
62,279
62,129
61,984
61,843
61,706
Lease liabilities
15,740
15,284
15,666
14,911
14,746
Liabilities held for sale
—
—
93,777
94,228
96,916
Accrued interest payable and other liabilities
14,128
15,757
15,983
18,382
12,726
TOTAL LIABILITIES
2,588,556
2,567,423
2,598,557
2,602,588
2,587,184
SHAREHOLDERS’ EQUITY
Preferred stock
—
—
—
—
—
Common stock
370
370
370
370
370
Surplus
265,293
264,871
264,449
264,059
263,795
Retained earnings
37,107
32,507
19,947
15,147
10,826
Accumulated other comprehensive loss
(4,772
)
(3,682
)
(4,545
)
(2,223
)
(3,582
)
TOTAL SHAREHOLDERS' EQUITY
297,998
294,066
280,221
277,353
271,409
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
2,886,554
$
2,861,489
$
2,878,778
$
2,879,941
$
2,858,593
Common shares outstanding
37,441,879
37,377,342
37,370,917
37,361,560
37,356,278
Page 9 of 21
LINKBANCORP, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
Three Months Ended
Six Months Ended
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
(In Thousands, except share and per share data)
INTEREST AND DIVIDEND INCOME
Loans receivable, including fees
$
36,032
$
37,041
$
36,112
$
73,073
$
72,237
Other
3,294
3,101
3,337
6,395
5,987
Total interest and dividend income
39,326
40,142
39,449
79,468
78,224
INTEREST EXPENSE
Deposits
12,467
12,357
13,071
24,824
24,918
Other Borrowings
931
986
932
1,917
2,018
Subordinated Debt
979
968
962
1,947
1,920
Total interest expense
14,377
14,311
14,965
28,688
28,856
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
24,949
25,831
24,484
50,780
49,368
Provision for credit losses
344
228
—
572
40
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
24,605
25,603
24,484
50,208
49,328
NONINTEREST INCOME
Service charges on deposit accounts
1,056
1,061
865
2,117
1,645
Bank-owned life insurance
436
428
386
864
769
Net realized gains (losses) on the sale of debt securities
—
—
4
—
4
Gain on sale of loans
128
77
12
205
62
Gain on sale of branches
—
11,093
—
11,093
—
Other
1,313
598
591
1,911
1,107
Total noninterest income
2,933
13,257
1,858
16,190
3,587
NONINTEREST EXPENSE
Salaries and employee benefits
10,252
11,156
9,941
21,408
21,059
Occupancy
1,308
1,464
1,559
2,772
3,137
Equipment and data processing
2,052
2,043
1,824
4,095
3,650
Professional fees
728
487
788
1,215
1,536
FDIC insurance and supervisory fees
537
599
545
1,136
897
Bank Shares Tax
(82
)
614
760
532
1,351
Intangible amortization
1,083
1,084
1,204
2,167
2,411
Merger & restructuring expenses
16
41
631
57
687
Advertising
176
144
241
320
475
Other
1,995
2,026
1,407
4,021
2,947
Total noninterest expense
18,065
19,658
18,900
37,723
38,150
Income before income tax expense
9,473
19,202
7,442
28,675
14,765
Income tax expense
2,086
3,859
1,638
5,945
3,235
NET INCOME
$
7,387
$
15,343
$
5,804
$
22,730
$
11,530
EARNINGS PER SHARE, BASIC
$
0.20
$
0.41
$
0.16
$
0.61
$
0.31
EARNINGS PER SHARE, DILUTED
$
0.20
$
0.41
$
0.16
$
0.61
$
0.31
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING,
BASIC
37,136,851
37,105,480
36,970,768
37,122,883
36,966,371
DILUTED
37,244,008
37,221,939
37,040,748
37,231,839
37,042,895
Page 10 of 21
LINKBANCORP, Inc. and Subsidiaries
Financial Highlights (Unaudited)
For the Three Months Ended
For the Six Months Ended
(Dollars In Thousands, except per share data)
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
Operating Highlights
Net Income
$
7,387
$
15,343
$
5,804
$
22,730
$
11,530
Net Interest Income
24,949
25,831
24,484
50,780
49,368
Provision for Credit Losses
344
228
—
572
40
Non-Interest Income
2,933
13,257
1,858
16,190
3,587
Non-Interest Expense
18,065
19,658
18,900
37,723
38,150
Earnings per Share, Basic
0.20
0.41
0.16
0.61
0.31
Adjusted Earnings per Share, Basic (2)
0.20
0.20
0.17
0.40
0.33
Earnings per Share, Diluted
0.20
0.41
0.16
0.61
0.31
Adjusted Earnings per Share, Diluted (2)
0.20
0.20
0.17
0.40
0.33
Selected Operating Ratios
Net Interest Margin
3.80
%
3.94
%
3.83
%
3.87
%
3.92
%
Annualized Return on Assets ("ROA")
1.05
%
2.19
%
0.84
%
1.62
%
0.85
%
Adjusted ROA2
1.05
%
1.05
%
0.91
%
1.05
%
0.89
%
Annualized Return on Equity ("ROE")
10.04
%
21.90
%
8.65
%
15.83
%
8.63
%
Adjusted ROE2
10.06
%
10.56
%
9.39
%
10.31
%
9.04
%
Efficiency Ratio
64.79
%
50.29
%
71.75
%
56.33
%
72.04
%
Adjusted Efficiency Ratio3
64.73
%
66.96
%
69.36
%
65.85
%
70.75
%
Noninterest Income to Avg. Assets
0.42
%
1.89
%
0.27
%
1.15
%
0.26
%
Noninterest Expense to Avg. Assets
2.57
%
2.80
%
2.73
%
2.68
%
2.80
%
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
Financial Condition Data
Total Assets
$
2,886,554
$
2,861,489
$
2,878,778
$
2,879,941
$
2,858,593
Loans Receivable, Net
2,331,958
2,247,322
2,229,314
2,189,326
2,166,909
Noninterest-bearing Deposits
646,654
646,002
658,646
658,473
661,292
Interest-bearing Deposits
1,809,755
1,787,692
1,701,936
1,714,179
1,699,220
Total Deposits
$
2,456,409
$
2,433,694
$
2,360,582
$
2,372,652
$
2,360,512
Selected Balance Sheet Ratios
Total Capital Ratio1
12.43
%
12.61
%
11.55
%
11.44
%
11.09
%
Tier 1 Capital Ratio1
11.51
%
11.71
%
10.74
%
10.62
%
10.30
%
Common Equity Tier 1 Capital Ratio1
11.51
%
11.71
%
10.74
%
10.62
%
10.30
%
Leverage Ratio1
10.34
%
10.02
%
9.49
%
9.41
%
9.17
%
Tangible Common Equity to Tangible Assets4
7.89
%
7.78
%
7.16
%
7.02
%
6.82
%
Tangible Book Value per Share5
$
5.92
$
5.80
$
5.36
$
5.26
$
5.07
Asset Quality Data
Non-performing Assets
$
21,877
$
26,041
$
17,173
$
17,378
$
10,589
Non-performing Assets to Total Assets
0.76
%
0.91
%
0.60
%
0.60
%
0.37
%
Non-performing Loans to Total Loans
0.93
%
1.15
%
0.76
%
0.78
%
0.48
%
Allowance for Credit Losses - Loans ("ACLL")
$
24,651
$
26,619
$
26,435
$
26,542
$
26,288
ACLL to Total Loans
1.05
%
1.17
%
1.17
%
1.20
%
1.20
%
ACLL to Nonperforming Assets
112.68
%
102.22
%
153.93
%
152.73
%
248.26
%
Net chargeoffs (recoveries)(6)
$
40
$
81
$
252
$
(28
)
$
(20
)
(1) - These capital ratios have been calculated using bank-level capital
(2) - This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.
Page 11 of 21
(3) - The efficiency ratio, as adjusted represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains or losses from securities sales and merger related expenses. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.
(4) - We calculate tangible common equity as total shareholders' equity less goodwill and other intangibles, and we calculate tangible assets as total assets less goodwill and other intangibles. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.
(5) - We calculate tangible book value per common share as total shareholders' equity less goodwill and other intangibles, divided by the outstanding number of shares of our common stock at the end of the relevant period. Tangible book value per common share is a non-GAAP financial measure, and, as we calculate tangible book value per common share, the most directly comparable GAAP financial measure is book value per common share. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.
(6) - Charge offs for the three months ended June 30, 2025 do not include the impact of a settlement of a purchase credit deteriorated loan ("PCD") that resulted in a net decrease to the allowance of $2.0 million, which was covered by a specific reserve established on this PCD loan at the time of acquisition.
Page 12 of 21
LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Quarter-To-Date (Unaudited)
For the Three Months Ended June 30,
2025
2024
(Dollars in thousands)
Avg Bal
Interest (2)
Yield/Rate
Avg Bal
Interest (2)
Yield/Rate
Int. Earn. Cash
$
114,315
$
1,097
3.85
%
$
121,340
$
1,395
4.62
%
Securities
Taxable (1)
152,185
1,819
4.79
%
125,885
1,592
5.09
%
Tax-Exempt
42,688
478
4.50
%
41,776
443
4.26
%
Total Securities
194,873
2,297
4.73
%
167,661
2,035
4.88
%
Total Cash Equiv. and Investments
309,188
3,394
4.40
%
289,001
3,430
4.77
%
Total Loans (3)
2,324,897
36,032
6.22
%
2,280,041
36,112
6.37
%
Total Earning Assets
2,634,085
39,426
6.00
%
2,569,042
39,542
6.19
%
Other Assets
183,203
212,097
Total Assets
$
2,817,288
$
2,781,139
Interest bearing demand
$
547,177
3,207
2.35
%
$
446,109
2,457
2.22
%
Money market demand
553,294
3,099
2.25
%
581,223
3,271
2.26
%
Time deposits
609,322
6,161
4.06
%
642,919
7,343
4.59
%
Total Borrowings
152,668
1,910
5.02
%
151,596
1,894
5.02
%
Total Interest-Bearing Liabilities
1,862,461
14,377
3.10
%
1,821,847
14,965
3.30
%
Non Interest-Bearing Deposits
628,962
657,939
Total Cost of Funds
2,491,423
14,377
2.31
%
2,479,786
14,965
2.43
%
Other Liabilities
30,826
31,519
Total Liabilities
2,522,249
2,511,305
Shareholders' Equity
295,039
269,834
Total Liabilities & Shareholders' Equity
$
2,817,288
$
2,781,139
Net Interest Income/Spread (FTE)
25,049
2.90
%
24,577
2.89
%
Tax-Equivalent Basis Adjustment
(100
)
(93
)
Net Interest Income
$
24,949
$
24,484
Net Interest Margin
3.80
%
3.83
%
(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.
(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table
(3) Includes the balances of nonaccrual loans
Page 13 of 21
LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Linked Quarter-To-Date (Unaudited)
For the Three Months Ended
June 30, 2025
March 31, 2025
(Dollars in thousands)
Avg Bal
Interest (2)
Yield/Rate
Avg Bal
Interest (2)
Yield/Rate
Int. Earn. Cash
$
114,315
$
1,097
3.85
%
$
119,269
$
972
3.31
%
Securities
Taxable (1)
152,185
1,819
4.79
%
142,867
1,749
4.96
%
Tax-Exempt
42,688
478
4.50
%
43,845
481
4.45
%
Total Securities
194,873
2,297
4.73
%
186,712
2,230
4.84
%
Total Cash Equiv. and Investments
309,188
3,394
4.40
%
305,981
3,202
4.24
%
Total Loans (3)
2,324,897
36,032
6.22
%
2,350,031
37,041
6.39
%
Total Earning Assets
2,634,085
39,426
6.00
%
2,656,012
40,243
6.14
%
Other Assets
183,203
191,469
Total Assets
$
2,817,288
$
2,847,481
Interest bearing demand
$
547,177
3,207
2.35
%
$
545,475
3,048
2.27
%
Money market demand
553,294
3,099
2.25
%
555,663
2,937
2.14
%
Time deposits
609,322
6,161
4.06
%
632,649
6,372
4.08
%
Total Borrowings
152,668
1,910
5.02
%
149,922
1,954
5.29
%
Total Interest-Bearing Liabilities
1,862,461
14,377
3.10
%
1,883,709
14,311
3.08
%
Non Interest-Bearing Deposits
628,962
649,440
Total Cost of Funds
2,491,423
14,377
2.31
%
2,533,149
14,311
2.29
%
Other Liabilities
30,826
30,229
Total Liabilities
2,522,249
2,563,378
Shareholders' Equity
295,039
284,103
Total Liabilities & Shareholders' Equity
$
2,817,288
$
2,847,481
Net Interest Income/Spread (FTE)
25,049
2.90
%
25,932
3.06
%
Tax-Equivalent Basis Adjustment
(100
)
(101
)
Net Interest Income
$
24,949
$
25,831
Net Interest Margin
3.80
%
3.94
%
(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.
(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table
(3) Includes the balances of nonaccrual loans
Page 14 of 21
LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Year-To-Date (Unaudited)
For the Six Months Ended June 30,
2025
2024
(Dollars in thousands)
Avg Bal
Interest (2)
Yield/Rate
Avg Bal
Interest (2)
Yield/Rate
Int. Earn. Cash
$
113,957
$
2,069
3.66
%
$
102,471
$
2,293
4.50
%
Securities
Taxable (1)
147,952
3,568
4.86
%
121,333
2,983
4.94
%
Tax-Exempt
43,240
959
4.47
%
42,344
900
4.27
%
Total Securities
191,192
4,527
4.78
%
163,677
3,883
4.77
%
Total Cash Equiv. and Investments
305,149
6,596
4.36
%
266,148
6,176
4.67
%
Total Loans (3)
2,340,413
73,073
6.30
%
2,263,595
72,237
6.42
%
Total Earning Assets
2,645,562
79,669
6.07
%
2,529,743
78,413
6.23
%
Other Assets
191,799
211,138
Total Assets
$
2,837,361
$
2,740,881
Interest bearing demand
$
546,906
$
6,255
2.31
%
$
437,011
$
4,400
2.02
%
Money market demand
557,551
6,036
2.18
%
584,121
6,445
2.22
%
Time deposits
621,040
12,533
4.07
%
628,616
14,073
4.50
%
Total Borrowings
151,269
3,864
5.15
%
144,509
3,938
5.48
%
Total Interest-Bearing Liabilities
1,876,766
28,688
3.08
%
1,794,257
28,856
3.23
%
Non Interest-Bearing Deposits
640,730
646,728
Total Cost of Funds
$
2,517,496
$
28,688
2.30
%
$
2,440,985
$
28,856
2.38
%
Other Liabilities
30,368
31,360
Total Liabilities
$
2,547,864
$
2,472,345
Shareholders' Equity
$
289,497
$
268,536
Total Liabilities & Shareholders' Equity
$
2,837,361
$
2,740,881
Net Interest Income/Spread (FTE)
50,981
2.99
%
49,557
3.00
%
Tax-Equivalent Basis Adjustment
(201
)
(189
)
Net Interest Income
$
50,780
$
49,368
Net Interest Margin
3.87
%
3.92
%
(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.
(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table
(3) Includes the balances of nonaccrual loans
Page 15 of 21
LINKBANCORP, Inc. and Subsidiaries
Loans Receivable Detail (Unaudited)
(In Thousands)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
Agriculture and farmland loans
$
61,996
$
66,684
$
67,741
$
65,166
$
66,937
Construction loans
140,976
136,421
158,296
175,373
201,174
Commercial & industrial loans
259,877
257,302
252,163
241,597
247,190
Commercial real estate loans
Multifamily
231,469
215,916
217,331
212,444
199,740
Owner occupied
502,515
472,895
493,906
500,643
492,065
Non-owner occupied
681,521
645,793
658,615
626,030
610,649
Residential real estate loans
First liens
375,879
378,420
399,476
400,869
400,098
Second liens and lines of credit
81,194
79,905
78,410
73,591
71,168
Consumer and other loans
17,525
17,097
17,087
17,498
15,514
Municipal loans
2,917
3,012
3,886
4,296
4,362
2,355,869
2,273,445
2,346,911
2,317,507
2,308,897
Deferred costs
740
496
645
634
478
Total loans receivable
2,356,609
2,273,941
2,347,556
2,318,141
2,309,375
Less: Loans held for sale
—
—
91,807
102,273
116,178
Loans Held for Investment
$
2,356,609
$
2,273,941
$
2,255,749
$
2,215,868
$
2,193,197
LINKBANCORP, Inc. and Subsidiaries
Loan Growth Calculation Excluding Branch Sale (Unaudited)
(In Thousands)
June 30, 2025
Total Loans at June 30, 2025
$
2,356,609
Total Loans at December 31, 2024
2,347,556
Year-to-date Change
9,053
Net Book Value of Loans Sold
97,952
Loan Growth Excluding Branch Sale
107,005
Annualized Growth Rate
9.19
%
Page 16 of 21
LINKBANCORP, Inc. and Subsidiaries
Investments in Securities Detail (Unaudited)
June 30, 2025
(In Thousands)
Amortized Cost
Net Unrealized Gains (Losses)
Fair Value
Available for Sale:
US Government Agency securities
$
13,177
$
168
$
13,345
Obligations of state and political subdivisions
50,758
(4,438
)
46,320
Mortgage-backed securities in government-sponsored entities
111,564
(2,010
)
109,554
Other securities
357
(7
)
350
$
175,856
$
(6,287
)
$
169,569
Amortized Cost
Net Unrealized Losses
Fair Value
Allowance for Credit Losses
Held to Maturity:
Corporate debentures
$
12,250
$
(728
)
$
11,522
$
(475
)
Structured mortgage-backed securities
15,034
(452
)
14,582
—
$
27,284
$
(1,180
)
$
26,104
$
(475
)
December 31, 2024
(In Thousands)
Amortized Cost
Net Unrealized Gains (Losses)
Fair Value
Available for Sale:
US Government Agency securities
$
13,017
$
56
$
13,073
Obligations of state and political subdivisions
51,254
(4,053
)
47,201
Mortgage-backed securities in government-sponsored entities
88,289
(3,506
)
84,783
Other securities
542
(9
)
533
$
153,102
$
(7,512
)
$
145,590
Amortized Cost
Net Unrealized Losses
Fair Value
Allowance for Credit Losses
Held to Maturity:
Corporate debentures
$
15,250
$
(984
)
$
14,266
$
(459
)
Structured mortgage-backed securities
16,717
(699
)
16,018
—
$
31,967
$
(1,683
)
$
30,284
$
(459
)
Page 17 of 21
LINKBANCORP, Inc. and Subsidiaries
Deposits Detail (Unaudited)
(In Thousands)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
Demand, noninterest-bearing
$
646,654
$
646,002
$
686,510
$
687,536
$
692,095
Demand, interest-bearing
576,050
577,170
537,546
547,099
488,043
Money market and savings
580,143
553,240
553,807
585,395
582,561
Time deposits, $250 and over
177,897
166,441
167,165
169,616
156,621
Time deposits, other
400,665
387,226
405,493
401,976
393,603
Brokered deposits
75,000
103,615
103,615
75,000
144,429
2,456,409
2,433,694
2,454,136
2,466,622
2,457,352
Less: Deposits held for sale
—
—
93,554
93,970
96,840
Total deposits
$
2,456,409
$
2,433,694
$
2,360,582
$
2,372,652
$
2,360,512
Average Deposits Detail, for the Three Months Ended (Unaudited)
(In Thousands)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
Demand, noninterest-bearing
$
628,962
$
649,440
$
665,276
$
659,825
$
657,939
Demand, interest-bearing
547,177
545,475
537,856
497,100
446,109
Money market and savings
553,294
555,663
567,593
580,766
581,223
Time deposits
575,205
576,366
568,615
560,815
547,582
Brokered deposits
34,117
56,283
38,616
52,587
95,337
Total deposits
$
2,338,755
$
2,383,227
$
2,377,956
$
2,351,093
$
2,328,190
Balances in table above include deposits held for sale
LINKBANCORP, Inc. and Subsidiaries
Deposit Growth Calculation Excluding Branch Sale (Unaudited)
(In Thousands)
June 30, 2025
Total Deposits at June 30, 2025
$
2,456,409
Total Deposits at December 31, 2024
2,454,136
Year-to-date Change
2,273
Net Book Value of Deposits Sold
87,086
Quarterly Deposit Growth Excluding Branch Sale
89,359
Annualized Growth Rate
7.34
%
Page 18 of 21
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.
Page 19 of 21
Adjusted Return on Average Assets
For the Three Months Ended
For the Six Months Ended
(Dollars in thousands)
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
Net income
$
7,387
$
15,343
$
5,804
$
22,730
$
11,530
Average assets
2,817,288
2,847,481
2,781,139
2,837,361
2,740,881
Return on average assets (annualized)
1.05
%
2.19
%
0.84
%
1.62
%
0.85
%
Net income
$
7,387
$
15,343
$
5,804
22,730
11,530
Gain on sale of branches
—
(11,093
)
—
(11,093
)
—
Tax effect(1)
—
2,440
—
2,440
—
Transaction bonus accrual
—
490
—
490
—
Tax effect(1)
—
(108
)
—
(108
)
—
Board restructuring accrual
—
381
—
381
—
Tax effect(1)
—
(84
)
—
(84
)
—
Net losses on sale of securities
—
—
(4
)
—
(4
)
Tax effect(1)
—
—
1
—
1
Merger & restructuring expenses
16
41
631
57
687
Tax effect(1)
(4
)
(9
)
(133
)
(13
)
(144
)
Adjusted Net Income (Non-GAAP)
$
7,399
$
7,401
$
6,299
$
14,800
12,070
Average assets
$
2,817,288
$
2,847,481
$
2,781,139
$
2,837,361
2,740,881
Adjusted return on average assets (annualized) (Non-GAAP)
1.05
%
1.05
%
0.91
%
1.05
%
0.89
%
(1) Tax effect was 22% for the three months ended June 30, 2025 and March 31, 2025, and six months ended June 30, 2025, and 21% for all other periods
Adjusted Return on Average Shareholders' Equity
For the Three Months Ended
For the Six Months Ended
(Dollars in thousands)
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
Net income
$
7,387
$
15,343
$
5,804
$
22,730
$
11,530
Average shareholders' equity
295,039
284,103
269,834
289,497
268,536
Return on average shareholders' equity (annualized)
10.04
%
21.90
%
8.65
%
15.83
%
8.63
%
Net income
$
7,387
$
15,343
$
5,804
$
22,730
$
11,530
Gain on sale of branches
—
(11,093
)
—
(11,093
)
—
Tax effect(1)
—
2,440
—
2,440
—
Transaction bonus accrual
—
490
—
490
—
Tax effect(1)
—
(108
)
—
(108
)
—
Board restructuring accrual
—
381
—
381
—
Tax effect(1)
—
(84
)
—
(84
)
—
Merger & restructuring expenses
16
41
631
57
687
Tax effect(1)
(4
)
(9
)
(133
)
(13
)
(144
)
Net (gains) losses on sale of securities
—
—
(4
)
—
(4
)
Tax effect(1)
—
—
1
—
1
Adjusted Net Income (Non-GAAP)
$
7,399
$
7,401
$
6,299
$
14,800
$
12,070
Average shareholders' equity
$
295,039
$
284,103
$
269,834
$
289,497
$
268,536
Adjusted return on average shareholders' equity (annualized) (Non-GAAP)
10.06
%
10.56
%
9.39
%
10.31
%
9.04
%
(1) Tax effect was 22% for the three months ended June 30, 2025 and March 31, 2025, and six months ended June 30, 2025, and 21% for all other periods
Page 20 of 21
Adjusted Earnings Per Share
For the Three Months Ended
For the Six Months Ended
(Dollars in thousands, except per share data)
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
GAAP-Based Earnings Per Share, Basic
$
0.20
$
0.41
$
0.16
$
0.61
$
0.31
GAAP-Based Earnings Per Share, Diluted
$
0.20
$
0.41
$
0.16
$
0.61
$
0.31
Net Income
$
7,387
$
15,343
$
5,804
$
22,730
$
11,530
Gain on sale of branches
—
(11,093
)
—
(11,093
)
—
Tax effect(1)
—
2,440
—
2,440
—
Transaction bonus accrual
—
490
—
490
—
Tax effect(1)
—
(108
)
—
(108
)
—
Board restructuring accrual
—
381
—
381
—
Tax effect(1)
—
(84
)
—
(84
)
—
Merger & restructuring expenses
16
41
631
57
687
Tax effect(1)
(4
)
(9
)
(133
)
(13
)
(144
)
Net (gains) losses on sale of securities
—
—
(4
)
—
(4
)
Tax effect(1)
—
—
1
—
1
Adjusted Net Income (Non-GAAP)
$
7,399
$
7,401
$
6,299
$
14,800
$
12,070
Adjusted Earnings per Share, Basic (Non-GAAP)
$
0.20
$
0.20
$
0.17
$
0.40
$
0.33
Adjusted Earnings per Share, Diluted (Non-GAAP)
$
0.20
$
0.20
$
0.17
$
0.40
$
0.33
(1) Tax effect was 22% for the three months ended June 30, 2025 and March 31, 2025, and six months ended June 30, 2025, and 21% for all other periods
Adjusted Efficiency Ratio
For the Three Months Ended
For the Six Months Ended
(Dollars in thousands)
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
GAAP-based efficiency ratio
64.79
%
50.29
%
71.75
%
56.33
%
72.04
%
Net interest income
$
24,949
$
25,831
$
24,484
$
50,780
$
49,368
Noninterest income
2,933
13,257
1,858
16,190
3,587
Less: Gain on sale of branches
—
(11,093
)
—
(11,093
)
—
Less: net gains (losses) on sale of securities
—
—
(4
)
—
(4
)
Adjusted revenue (Non-GAAP)
27,882
27,995
26,338
55,877
52,951
Total noninterest expense
18,065
19,658
18,900
37,723
38,150
Less: Merger & restructuring expenses
16
41
631
57
687
Less: Transaction bonus accrual
—
490
—
490
—
Less: Board restructuring accrual
—
381
—
381
—
Adjusted non-interest expense
$
18,049
$
18,746
$
18,269
$
36,795
$
37,463
Efficiency ratio, as adjusted (Non-GAAP)
64.73
%
66.96
%
69.36
%
65.85
%
70.75
%
Page 21 of 21
Tangible Common Equity and Tangible Book Value
(Dollars in thousands, except per share data)
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
Tangible Common Equity
Total shareholders’ equity
$
297,998
$
294,066
$
280,221
$
277,353
$
271,409
Adjustments:
Goodwill
(58,806
)
(58,806
)
(58,806
)
(58,806
)
(58,806
)
Other intangible assets
(17,490
)
(18,573
)
(20,955
)
(22,118
)
(23,323
)
Tangible common equity (Non-GAAP)
$
221,702
$
216,687
$
200,460
$
196,429
$
189,280
Common shares outstanding
37,441,879
37,377,342
37,370,917
37,361,560
37,356,278
Book value per common share
$
7.96
$
7.87
$
7.50
$
7.42
$
7.27
Tangible book value per common share (Non-GAAP)
$
5.92
$
5.80
$
5.36
$
5.26
$
5.07
Tangible Assets
Total assets
$
2,886,554
$
2,861,489
$
2,878,778
$
2,879,941
$
2,858,593
Adjustments:
Goodwill
(58,806
)
(58,806
)
(58,806
)
(58,806
)
(58,806
)
Other intangible assets
(17,490
)
(18,573
)
(20,955
)
(22,118
)
(23,323
)
Tangible assets (Non-GAAP)
$
2,810,258
$
2,784,110
$
2,799,017
$
2,799,017
$
2,776,464
Tangible common equity to tangible assets (Non-GAAP)
7.89
%
7.78
%
7.16
%
7.02
%
6.82
%
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)
For the Three Months Ended
For the Six Months Ended
(Dollars in thousands, except per share data)
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
Net Income (GAAP)
$
7,387
$
15,343
$
5,804
$
22,730
$
11,530
Gain on sale of branches
—
(11,093
)
—
(11,093
)
—
Tax effect(1)
—
2,440
—
2,440
—
Transaction bonus accrual
—
490
—
490
—
Tax effect(1)
—
(108
)
—
(108
)
—
Board restructuring accrual
—
381
—
381
—
Tax effect(1)
—
(84
)
—
(84
)
—
Net (gains) losses on sale of securities
—
—
(4
)
—
(4
)
Tax effect(1)
—
—
1
—
1
Merger & restructuring expenses
16
41
631
57
687
Tax effect(1)
(4
)
(9
)
(133
)
(13
)
(144
)
Adjusted Net Income (Non-GAAP)
7,399
7,401
6,299
14,800
12,070
Income tax expense
2,086
3,859
1,638
5,945
3,235
Provision for credit losses
344
228
—
572
40
Tax effect included in Adjusted Net Income
4
(2,239
)
132
(2,235
)
143
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)
$
9,833
$
9,249
$
8,069
$
19,082
$
15,488
(1) Tax effect was 22% for the three months ended June 30, 2025 and March 31, 2025, and six months ended June 30, 2025, and 21% for all other periods
