UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
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(Address of Principal Executive Offices) |
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Registrant’s Telephone Number, Including Area Code: |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On February 2, 2023, LINKBANCORP, Inc. (the “Company”) issued a press release reporting its financial results at and for the three and twelve months ended December 31, 2022.
A copy of the press release is attached as Exhibit 99.1 to this report and is being furnished to the Securities and Exchange Commission and shall not be deemed filed for any purpose.
Item 8.01 Other Events.
On February 2, 2023, the Company announced a quarterly cash dividend of $0.075 per share, which is expected to be paid on March 15, 2023 to shareholders of record on February 28, 2023.
Item 9.01 Financial Statements and Exhibits.
(a) |
Financial statements of businesses acquired. None. |
(b) |
Pro forma financial information. None. |
(c) |
Shell company transactions. None. |
(d) |
Exhibits. |
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99.1 Press release dated February 2, 2023
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104 Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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LINKBANCORP, INC. |
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Date: |
February 2, 2023 |
By: |
/s/ Carl D. Lundblad |
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Carl D. Lundblad |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Nicole Ulmer
Corporate and Investor Relations Officer
717.803.8895
LINKBANCORP, Inc. Announces Fourth Quarter 2022 and
Full Year 2022 Financial Results and Declares Dividend
February 2, 2023 – HARRISBURG, PA -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the “Company”), the parent company of LINKBANK (the “Bank”) reported net income of $696 thousand, or $0.05 per diluted share, for the quarter ended December 31, 2022 and $5.6 million, or $0.49 per diluted share, for the year ended December 31, 2022. Excluding merger and system conversion related expenses of $973 thousand, adjusted earnings were $1.47 million1, or $0.101 per diluted share for the fourth quarter of 2022 and $6.36 million1, or $0.561 per diluted share, for the full year ended December 31, 2022.
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 March 15, 2023 to shareholders of record on February 28, 2023.
Fourth Quarter 2022 Highlights
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Andrew Samuel, Chief Executive Officer, commented, “We are very pleased by the many accomplishments our team achieved in 2022 to positively impact the lives of our employees, clients, communities and shareholders, including tremendous balance sheet and revenue growth, expansion of our presence in the Delaware Valley Region, a successful core technology conversion, and successful initial public offering and Nasdaq listing, all while remaining disciplined to maintain strong credit quality and operational excellence as we navigate an uncertain national economy.” He continued, “We believe we have built a strong foundation with a solid and scalable infrastructure and talented community bankers that positions our Company for continued and even greater success in this new year.”
Income Statement
Net interest income before the provision for loan losses for the fourth quarter of 2022 increased to $9.0 million compared to $8.7 million in the third quarter of 2022. Net interest margin was 3.36% for the fourth quarter of 2022 compared to 3.51% for the third quarter of 2022. The decrease in net interest margin was the result of a 47 basis points increase in cost of funds due to increased deposit costs and borrowings, partially offset by a 29 basis points increase in the average yield on interest-earning assets. The increase in the average yield on interest-earning assets was primarily due to the increase of the average yield on loans of 37 basis points, to 4.90% during the fourth quarter of 2022.
Noninterest income decreased from $1.0 million in the third quarter of 2022 to $508 thousand in the fourth quarter of 2022, resulting from a decline in gain on sale of loans due to a decreased volume in Small Business Administration (“SBA”) loans. Noninterest expense for the fourth quarter of 2022 increased to $8.4 million compared to $7.0 million for the third quarter of 2022. The increase included $973 thousand in nonrecurring charges relating to the core system conversion as well as the accrual of accelerated retirement benefits resulting from the merger with GNB Financial. Increased salary and employee benefits expenses included a $112 thousand additional paid-time-off (PTO) accrual expense in connection with the core system conversion, as well as an increased incentive compensation accrual due to conversion-related bonuses and the achievement of year end performance objectives.
For the year ended December 31, 2022, net interest income before provision for loan losses increased $16.9 million to $33.0 million compared to $16.1 million for the year ended December 31, 2021. Net interest margin for the year ended December 31, 2022 was 3.39% compared to 3.07% for the prior year. Noninterest income experienced 38% growth year-over-year to $3.0
million for 2022 from $2.1 million in 2021 primarily due to increased gain on sale of loans following the Bank’s successful introduction of SBA lending.
Balance Sheet
Total assets were $1.164 billion at December 31, 2022 compared to $1.145 billion at September 30, 2022 and $932.8 million at December 31, 2021. Deposits and net loans as of December 31, 2022 totaled $946.8 million and $923.2 million, respectively, compared to deposits and net loans of $951.7 million and $859.4 million, respectively, at September 30, 2022 and $771.7 million and $711.7 million, respectively, at December 31, 2021.
Total loans increased $63.9 million from September 30, 2022 to December 31, 2022, or 29.3% annualized, with the average commercial loan size during the fourth quarter of 2022 of approximately $550,000.
As a result of the Bank’s strategic decision to delay certain deposit gathering initiatives during the critical period surrounding the core system conversion in the fourth quarter, year-end deposits experienced a slight decrease from September 30, 2022 to December 31, 2022. However, average deposits for the fourth quarter of 2022 increased $35.2 million to $934.6 million compared to $899.4 million for the third quarter of 2022, driven primarily by a $28.7 million increase in average noninterest-bearing demand deposits. Given increased volatility in deposits due to additional clients utilizing excess liquidity and market competition amid rising rates, the Bank increased Federal Home Loan Bank borrowings to provide additional liquidity to meet the credit needs of clients. As a result, other borrowings increased to $20.9 million at December 31, 2022.
Total assets and net loans at December 31, 2022 increased to $1.164 billion and $923.2 million, respectively, compared to $932.8 million and $711.7 million, respectively, at December 31, 2021, representing 29.7% growth in net loans and a 24.8% increase in total assets year over year. In addition, total deposits grew $175.1 million over the year, including a $63.5 million, or 49.2%, increase in noninterest bearing deposits.
Shareholders’ equity increased from $136.9 million at September 30, 2022 to $138.6 million at December 31, 2022 due primarily to a $2.0 million decrease in accumulated other comprehensive loss as a result of decreased unrealized losses on available-for-sale securities. Year-over-year, shareholders' equity increased $28.9 million due to net proceeds from the Company’s Initial Public Offering and an increase in retained earnings, partially offset by a $8.2 million accumulated other comprehensive loss recognized during the year due to the rising interest rate environment in 2022.
Asset Quality
As of December 31, 2022, the Company’s non-performing assets were $2.5 million, representing 0.21% of total assets. Non-performing assets at December 31, 2022 excluded purchased credit impaired loans with a balance of $2.5 million.
The allowance for loan losses measured 0.50% of total loans, or approximately 0.78% of the non-purchased portfolio, at December 31, 2022, compared to 0.53% of total loans, or approximately 0.89% of the non-purchased portfolio, at September 30, 2022. The total of the allowance for loan losses and the credit fair value adjustment made to loans acquired in the GNB Financial merger equaled $9.7 million or approximately 1.04% of the combined portfolio at December 31, 2022.
Capital
The Bank’s regulatory capital ratios are in excess of regulatory minimums to be considered “well capitalized” as of December 31, 2022. The Bank’s Total Capital Ratio and Tier 1 Capital Ratio increased to 12.89% and 12.41%, respectively, at December 31, 2022 from 11.55% and 11.04% at September 30, 2022, respectively. The Company’s ratio of Tangible Common Equity to Tangible Assets was 9.02%2 at December 31, 2022.
2 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
ABOUT LINKBANCORP, Inc.
LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, LINKBANK, is a Pennsylvania state-chartered bank serving individuals, families, nonprofits and business clients throughout Central and Southeastern Pennsylvania through 10 client solutions centers and www.linkbank.com. LINKBANCORP, Inc. common stock is traded on the Nasdaq Capital Market under the symbol “LNKB”. For further company information, visit ir.linkbancorp.com.
Forward Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties associated with newly developed or acquired operations; 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.
LINKBANCORP, Inc. and Subsidiaries |
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Consolidated Balance Sheet (Unaudited) |
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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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March 31, 2022 |
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December 31, 2021 |
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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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$ |
4,209 |
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$ |
8,711 |
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$ |
7,563 |
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$ |
6,425 |
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$ |
8,620 |
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Interest-bearing deposits with other institutions |
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25,802 |
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66,085 |
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55,433 |
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102,704 |
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13,970 |
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Cash and cash equivalents |
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$ |
30,011 |
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$ |
74,796 |
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$ |
62,996 |
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$ |
109,129 |
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$ |
22,590 |
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Certificates of deposit with other banks |
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5,623 |
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8,358 |
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11,088 |
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12,828 |
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12,828 |
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Securities available for sale, at fair value |
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78,813 |
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78,698 |
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85,756 |
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93,202 |
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103,783 |
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Securities held to maturity |
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31,822 |
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32,571 |
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28,816 |
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5,000 |
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— |
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Loans held for sale |
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— |
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— |
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— |
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4,074 |
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3,860 |
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Loans receivable, gross |
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927,871 |
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863,969 |
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790,406 |
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731,061 |
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714,816 |
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Allowance for Loan Losses |
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(4,666 |
) |
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(4,569 |
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(3,890 |
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(3,443 |
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(3,152 |
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Loans receivable, net |
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923,205 |
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859,400 |
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786,516 |
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727,618 |
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711,664 |
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Investments in restricted bank stock |
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3,377 |
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3,327 |
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2,567 |
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3,612 |
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2,685 |
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Premises and equipment, net |
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6,743 |
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9,087 |
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7,915 |
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5,253 |
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5,289 |
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Right-of-Use Asset – Premises |
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10,219 |
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8,920 |
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4,513 |
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4,605 |
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4,680 |
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Bank-owned life insurance |
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19,244 |
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19,127 |
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19,012 |
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18,898 |
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18,787 |
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Goodwill and other intangible assets |
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36,894 |
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36,955 |
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37,020 |
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37,085 |
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37,152 |
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Deferred tax asset |
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5,619 |
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6,378 |
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5,777 |
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5,092 |
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4,038 |
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Accrued interest receivable and other assets |
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12,084 |
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7,256 |
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7,909 |
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9,280 |
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5,407 |
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TOTAL ASSETS |
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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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$ |
1,035,676 |
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$ |
932,763 |
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LIABILITIES |
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Deposits: |
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Demand, noninterest bearing |
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$ |
192,773 |
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$ |
184,857 |
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$ |
184,345 |
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$ |
165,228 |
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$ |
129,243 |
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Interest bearing |
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753,999 |
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766,853 |
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718,028 |
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696,942 |
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642,422 |
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Total deposits |
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946,772 |
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951,710 |
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902,373 |
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862,170 |
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771,665 |
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Other Borrowings |
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20,938 |
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— |
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1,639 |
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36,117 |
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19,814 |
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Subordinated Debt |
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40,484 |
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40,526 |
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40,585 |
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20,653 |
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20,696 |
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Operating Lease Liabilities |
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10,219 |
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8,921 |
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4,513 |
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4,606 |
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4,680 |
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Accrued interest payable and other liabilities |
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6,688 |
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6,774 |
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6,004 |
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5,790 |
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6,285 |
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TOTAL LIABILITIES |
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1,025,101 |
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1,007,931 |
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955,114 |
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929,336 |
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823,140 |
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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 |
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149 |
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149 |
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99 |
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99 |
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99 |
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Surplus |
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117,709 |
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117,698 |
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83,070 |
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82,930 |
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82,910 |
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Retained earnings |
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27,100 |
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27,525 |
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26,491 |
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25,623 |
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24,836 |
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Accumulated other comprehensive (loss) income |
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(6,405 |
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(8,430 |
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(4,889 |
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(2,312 |
) |
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1,778 |
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TOTAL SHAREHOLDERS’ EQUITY |
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138,553 |
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136,942 |
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104,771 |
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106,340 |
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109,623 |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
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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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$ |
1,035,676 |
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$ |
932,763 |
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Common shares outstanding |
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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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9,826,435 |
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9,826,435 |
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LINKBANCORP, Inc. and Subsidiaries |
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Consolidated Statements of Operations (Unaudited) |
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Three Months Ended |
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Twelve Months Ended |
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12/31/2022 |
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9/30/2022 |
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12/31/2021 |
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12/31/2022 |
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12/31/2021 |
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(In Thousands, except share and per share data) |
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INTEREST AND DIVIDEND INCOME |
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Loans receivable, including fees |
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$ |
11,109 |
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$ |
9,410 |
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$ |
7,286 |
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$ |
36,396 |
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$ |
15,924 |
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Other |
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1,097 |
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1,170 |
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|
|
651 |
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3,868 |
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|
2,572 |
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Total interest and dividend income |
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12,206 |
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10,580 |
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7,937 |
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40,264 |
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18,496 |
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INTEREST EXPENSE |
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Deposits |
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2,465 |
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1,389 |
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|
621 |
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|
|
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|
5,337 |
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|
2,091 |
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Other Borrowings |
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|
335 |
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|
82 |
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25 |
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|
441 |
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|
50 |
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Subordinated Debt |
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|
421 |
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|
439 |
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|
212 |
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|
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1,501 |
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|
249 |
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Total interest expense |
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3,221 |
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|
1,910 |
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|
858 |
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|
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|
7,279 |
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|
|
2,390 |
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NET INTEREST INCOME BEFORE PROVISION FOR |
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8,985 |
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|
8,670 |
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|
7,079 |
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|
|
32,985 |
|
|
|
16,106 |
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Provision for loan losses |
|
|
100 |
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|
|
515 |
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|
|
100 |
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|
|
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|
1,290 |
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|
|
648 |
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NET INTEREST INCOME AFTER PROVISION FOR |
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|
8,885 |
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|
8,155 |
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|
6,979 |
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|
31,695 |
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|
|
15,458 |
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NONINTEREST INCOME |
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Service charges on deposit accounts |
|
|
188 |
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|
|
216 |
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|
|
216 |
|
|
|
|
|
832 |
|
|
|
733 |
|
Bank-owned life insurance |
|
|
116 |
|
|
|
156 |
|
|
|
77 |
|
|
|
|
|
497 |
|
|
|
253 |
|
Net realized gains on the sales of debt securities, available for sale |
|
|
— |
|
|
|
— |
|
|
|
74 |
|
|
|
|
|
13 |
|
|
|
74 |
|
Gain on sale of loans |
|
|
— |
|
|
|
420 |
|
|
|
— |
|
|
|
|
|
753 |
|
|
|
316 |
|
Other |
|
|
204 |
|
|
|
249 |
|
|
|
214 |
|
|
|
|
|
862 |
|
|
|
763 |
|
Total noninterest income |
|
|
508 |
|
|
|
1,041 |
|
|
|
581 |
|
|
|
|
|
2,957 |
|
|
|
2,139 |
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
|
4,612 |
|
|
|
4,234 |
|
|
|
3,602 |
|
|
|
|
|
16,224 |
|
|
|
6,999 |
|
Occupancy |
|
|
616 |
|
|
|
596 |
|
|
|
406 |
|
|
|
|
|
2,119 |
|
|
|
913 |
|
Equipment and data processing |
|
|
751 |
|
|
|
666 |
|
|
|
537 |
|
|
|
|
|
2,609 |
|
|
|
1,340 |
|
Professional fees |
|
|
371 |
|
|
|
330 |
|
|
|
421 |
|
|
|
|
|
1,236 |
|
|
|
685 |
|
FDIC insurance |
|
|
157 |
|
|
|
141 |
|
|
|
81 |
|
|
|
|
|
640 |
|
|
|
231 |
|
Bank Shares Tax |
|
|
201 |
|
|
|
201 |
|
|
|
174 |
|
|
|
|
|
786 |
|
|
|
434 |
|
Merger & system conversion related expenses |
|
|
973 |
|
|
|
— |
|
|
|
616 |
|
|
|
|
|
973 |
|
|
|
4,584 |
|
Other |
|
|
764 |
|
|
|
877 |
|
|
|
957 |
|
|
|
|
|
3,245 |
|
|
|
2,311 |
|
Total noninterest expense |
|
|
8,445 |
|
|
|
7,045 |
|
|
|
6,794 |
|
|
|
|
|
27,832 |
|
|
|
17,497 |
|
Income before income tax (benefit) expense |
|
|
948 |
|
|
|
2,151 |
|
|
|
766 |
|
|
|
|
|
6,820 |
|
|
|
100 |
|
Income tax (benefit) expense |
|
|
252 |
|
|
|
379 |
|
|
|
(22 |
) |
|
|
|
|
1,222 |
|
|
|
(189 |
) |
NET INCOME |
|
$ |
696 |
|
|
$ |
1,772 |
|
|
$ |
788 |
|
|
|
|
$ |
5,598 |
|
|
$ |
289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
EARNINGS PER SHARE, BASIC |
|
$ |
0.05 |
|
|
$ |
0.17 |
|
|
$ |
0.08 |
|
|
|
|
$ |
0.49 |
|
|
$ |
0.04 |
|
EARNINGS PER SHARE, DILUTED |
|
$ |
0.05 |
|
|
$ |
0.17 |
|
|
$ |
0.08 |
|
|
|
|
$ |
0.49 |
|
|
$ |
0.04 |
|
WEIGHTED-AVERAGE COMMON SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
BASIC |
|
|
14,939,640 |
|
|
|
10,590,079 |
|
|
|
9,822,273 |
|
|
|
|
|
11,310,386 |
|
|
|
6,879,658 |
|
DILUTED |
|
|
14,939,640 |
|
|
|
10,590,079 |
|
|
|
10,178,487 |
|
|
|
|
|
11,310,386 |
|
|
|
7,250,463 |
|
LINKBANCORP, Inc. and Subsidiaries |
|
||||||||||||||||||
Financial Highlights (Unaudited) |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
For the Three Months Ended |
|
|
For the Twelve Months Ended |
|
||||||||||||||
('Dollars In Thousands) |
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
|
12/31/2022 |
|
|
12/31/2021 |
|
|||||
Operating Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Income |
$ |
696 |
|
|
$ |
1,772 |
|
|
$ |
788 |
|
|
$ |
5,598 |
|
|
$ |
289 |
|
Net Interest Income |
|
8,985 |
|
|
|
8,670 |
|
|
|
7,079 |
|
|
|
32,985 |
|
|
|
16,106 |
|
Provision for Loan Losses |
|
100 |
|
|
|
515 |
|
|
|
100 |
|
|
|
1,290 |
|
|
|
648 |
|
Non-Interest Income |
|
508 |
|
|
|
1,041 |
|
|
|
581 |
|
|
|
2,957 |
|
|
|
2,139 |
|
Non-Interest Expense |
|
8,445 |
|
|
|
7,045 |
|
|
|
6,794 |
|
|
|
27,832 |
|
|
|
17,497 |
|
Earnings per Share, Basic |
|
0.05 |
|
|
|
0.17 |
|
|
|
0.08 |
|
|
|
0.49 |
|
|
|
0.04 |
|
Adjusted Earnings per Share, Basic (2) |
|
0.10 |
|
|
|
0.17 |
|
|
|
0.12 |
|
|
|
0.56 |
|
|
|
0.56 |
|
Earnings per Share, Diluted |
|
0.05 |
|
|
|
0.17 |
|
|
|
0.08 |
|
|
|
0.49 |
|
|
|
0.04 |
|
Adjusted Earnings per Share, Diluted (2) |
|
0.10 |
|
|
|
0.17 |
|
|
|
0.12 |
|
|
|
0.56 |
|
|
|
0.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Selected Operating Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Interest Margin |
|
3.36 |
% |
|
|
3.51 |
% |
|
|
3.27 |
% |
|
|
3.39 |
% |
|
|
3.07 |
% |
Annualized Return on Assets ("ROA") |
|
0.24 |
% |
|
|
0.65 |
% |
|
|
0.33 |
% |
|
|
0.53 |
% |
|
|
0.05 |
% |
Adjusted ROA2 |
|
0.50 |
% |
|
|
0.65 |
% |
|
|
0.51 |
% |
|
|
0.60 |
% |
|
|
0.68 |
% |
Annualized Return on Equity ("ROE") |
|
2.02 |
% |
|
|
6.48 |
% |
|
|
3.14 |
% |
|
|
5.22 |
% |
|
|
0.56 |
% |
Adjusted ROE2 |
|
4.24 |
% |
|
|
6.48 |
% |
|
|
4.90 |
% |
|
|
5.93 |
% |
|
|
7.52 |
% |
Efficiency Ratio |
|
88.96 |
% |
|
|
72.55 |
% |
|
|
88.69 |
% |
|
|
77.44 |
% |
|
|
95.90 |
% |
Adjusted Efficiency Ratio3 |
|
78.71 |
% |
|
|
72.55 |
% |
|
|
81.44 |
% |
|
|
74.76 |
% |
|
|
71.06 |
% |
Noninterest Income to Avg. Assets |
|
0.17 |
% |
|
|
0.36 |
% |
|
|
0.24 |
% |
|
|
0.28 |
% |
|
|
0.37 |
% |
Noninterest Expense to Avg. Assets |
|
2.90 |
% |
|
|
2.60 |
% |
|
|
2.84 |
% |
|
|
2.63 |
% |
|
|
3.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
12/31/2022 |
|
|
9/30/2022 |
|
|
6/30/2022 |
|
|
3/31/2022 |
|
|
12/31/2021 |
|
|||||
Financial Condition Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Assets |
$ |
1,163,654 |
|
|
$ |
1,144,873 |
|
|
$ |
1,059,885 |
|
|
$ |
1,035,676 |
|
|
$ |
932,763 |
|
Loans Receivable, Net |
|
923,205 |
|
|
|
859,400 |
|
|
|
786,516 |
|
|
|
727,618 |
|
|
|
711,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing Deposits |
|
192,773 |
|
|
|
184,857 |
|
|
|
184,345 |
|
|
|
165,228 |
|
|
|
129,243 |
|
Interst-bearing Deposits |
|
753,999 |
|
|
|
766,853 |
|
|
|
718,028 |
|
|
|
696,942 |
|
|
|
642,422 |
|
Total Deposits |
|
946,772 |
|
|
|
951,710 |
|
|
|
902,373 |
|
|
|
862,170 |
|
|
|
771,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Selected Balance Sheet Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Capital Ratio1 |
|
12.89 |
% |
|
|
11.55 |
% |
|
|
12.42 |
% |
|
|
11.14 |
% |
|
|
11.50 |
% |
Tier 1 Capital Ratio1 |
|
12.41 |
% |
|
|
11.04 |
% |
|
|
11.94 |
% |
|
|
10.67 |
% |
|
|
11.02 |
% |
Common Equity Tier 1 Capital Ratio1 |
|
12.41 |
% |
|
|
11.04 |
% |
|
|
11.94 |
% |
|
|
10.67 |
% |
|
|
11.02 |
% |
Leverage Ratio1 |
|
10.93 |
% |
|
|
9.74 |
% |
|
|
10.10 |
% |
|
|
8.71 |
% |
|
|
8.85 |
% |
Tangible Common Equity to Tangible Assets4 |
|
9.02 |
% |
|
|
9.02 |
% |
|
|
6.62 |
% |
|
|
6.94 |
% |
|
|
8.09 |
% |
Tangible Book Value per Share5 |
$ |
6.80 |
|
|
$ |
6.69 |
|
|
$ |
6.89 |
|
|
$ |
7.05 |
|
|
$ |
7.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Asset Quality Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing Assets |
$ |
2,500 |
|
|
$ |
1,979 |
|
|
$ |
1,494 |
|
|
$ |
1,246 |
|
|
$ |
1,396 |
|
Non-performing Assets to Total Assets |
|
0.21 |
% |
|
|
0.17 |
% |
|
|
0.14 |
% |
|
|
0.12 |
% |
|
|
0.15 |
% |
Non-performing Loans to Total Loans |
|
0.27 |
% |
|
|
0.23 |
% |
|
|
0.19 |
% |
|
|
0.17 |
% |
|
|
0.20 |
% |
Allowance for Loan Losses ("AFLL") |
$ |
4,666 |
|
|
$ |
4,569 |
|
|
$ |
3,890 |
|
|
$ |
3,443 |
|
|
$ |
3,152 |
|
AFLL to Total Loans |
|
0.50 |
% |
|
|
0.53 |
% |
|
|
0.49 |
% |
|
|
0.47 |
% |
|
|
0.44 |
% |
AFLL to Nonperforming Assets |
|
186.64 |
% |
|
|
230.87 |
% |
|
|
260.37 |
% |
|
|
276.32 |
% |
|
|
225.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(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 noninterst 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 Interst Margin - Quarter-To-Date (Unaudited) |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the Three Months Ended December 31, |
|
|||||||||||||||||||||
|
|
2022 |
|
|
2021 |
|
||||||||||||||||||
(Dollars in thousands) |
|
Avg Bal |
|
|
Interest (2) |
|
|
Yield/Rate |
|
|
Avg Bal |
|
|
Interest (2) |
|
|
Yield/Rate |
|
||||||
Int. Earn. Cash |
|
$ |
42,925 |
|
|
$ |
227 |
|
|
|
2.10 |
% |
|
$ |
51,293 |
|
|
$ |
15 |
|
|
|
0.12 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable (1) |
|
|
80,842 |
|
|
|
567 |
|
|
|
2.78 |
% |
|
|
74,022 |
|
|
|
290 |
|
|
|
1.55 |
% |
Tax-Exempt |
|
|
37,169 |
|
|
|
384 |
|
|
|
4.10 |
% |
|
|
47,027 |
|
|
|
438 |
|
|
|
3.70 |
% |
Total Securities |
|
|
118,011 |
|
|
|
951 |
|
|
|
3.20 |
% |
|
|
121,049 |
|
|
|
728 |
|
|
|
2.39 |
% |
Total Cash Equiv. and Investments |
|
|
160,936 |
|
|
|
1,178 |
|
|
|
2.90 |
% |
|
|
172,342 |
|
|
|
743 |
|
|
|
1.71 |
% |
Total Loans (3) |
|
|
899,028 |
|
|
|
11,109 |
|
|
|
4.90 |
% |
|
|
686,589 |
|
|
|
7,286 |
|
|
|
4.21 |
% |
Total Earning Assets |
|
|
1,059,964 |
|
|
|
12,287 |
|
|
|
4.60 |
% |
|
|
858,931 |
|
|
|
8,029 |
|
|
|
3.71 |
% |
Other Assets |
|
|
94,628 |
|
|
|
|
|
|
|
|
|
89,829 |
|
|
|
|
|
|
|
||||
Total Assets |
|
$ |
1,154,592 |
|
|
|
|
|
|
|
|
$ |
948,760 |
|
|
|
|
|
|
|
||||
Interest bearing demand |
|
$ |
278,816 |
|
|
$ |
808 |
|
|
|
1.15 |
% |
|
$ |
218,173 |
|
|
$ |
234 |
|
|
|
0.43 |
% |
Money market demand |
|
|
245,154 |
|
|
|
966 |
|
|
|
1.56 |
% |
|
|
206,482 |
|
|
|
125 |
|
|
|
0.24 |
% |
Time deposits |
|
|
211,090 |
|
|
|
691 |
|
|
|
1.30 |
% |
|
|
191,411 |
|
|
|
262 |
|
|
|
0.54 |
% |
Total Borrowings |
|
|
68,160 |
|
|
|
756 |
|
|
|
4.40 |
% |
|
|
49,917 |
|
|
|
237 |
|
|
|
1.88 |
% |
Total Interest-Bearing Liabilities |
|
|
803,220 |
|
|
|
3,221 |
|
|
|
1.59 |
% |
|
|
665,983 |
|
|
|
858 |
|
|
|
0.51 |
% |
Non Int Bearing Deposits |
|
|
199,556 |
|
|
|
|
|
|
|
|
|
171,885 |
|
|
|
|
|
|
|
||||
Total Cost of Funds |
|
$ |
1,002,776 |
|
|
$ |
3,221 |
|
|
|
1.27 |
% |
|
$ |
837,868 |
|
|
$ |
858 |
|
|
|
0.41 |
% |
Other Liabilities |
|
|
14,864 |
|
|
|
|
|
|
|
|
|
11,308 |
|
|
|
|
|
|
|
||||
Total Liabilities |
|
$ |
1,017,640 |
|
|
|
|
|
|
|
|
$ |
849,176 |
|
|
|
|
|
|
|
||||
Shareholders' Equity |
|
$ |
136,952 |
|
|
|
|
|
|
|
|
$ |
99,584 |
|
|
|
|
|
|
|
||||
Total Liabilities & Shareholders' Equity |
|
$ |
1,154,592 |
|
|
|
|
|
|
|
|
$ |
948,760 |
|
|
|
|
|
|
|
||||
Net Interest Income/Spread (FTE) |
|
|
|
|
|
9,066 |
|
|
|
3.01 |
% |
|
|
|
|
|
7,171 |
|
|
|
3.20 |
% |
||
Tax-Equivalent Basis Adjustment |
|
|
|
|
|
(81 |
) |
|
|
|
|
|
|
|
|
(92 |
) |
|
|
|
||||
Net Interest Income |
|
|
|
|
$ |
8,985 |
|
|
|
|
|
|
|
|
$ |
7,079 |
|
|
|
|
||||
Net Interest Margin |
|
|
|
|
|
|
|
|
3.36 |
% |
|
|
|
|
|
|
|
|
3.27 |
% |
||||
(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 Interst Margin - Linked Quarter-To-Date (Unaudited) |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the Three Months Ended |
|
|||||||||||||||||||||
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
||||||||||||||||||
(Dollars in thousands) |
|
Avg Bal |
|
|
Interest (2) |
|
|
Yield/Rate |
|
|
Avg Bal |
|
|
Interest (2) |
|
|
Yield/Rate |
|
||||||
Int. Earn. Cash |
|
$ |
42,925 |
|
|
$ |
227 |
|
|
|
2.10 |
% |
|
$ |
30,630 |
|
|
$ |
157 |
|
|
|
2.03 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable (1) |
|
|
80,842 |
|
|
|
567 |
|
|
|
2.78 |
% |
|
|
86,330 |
|
|
|
745 |
|
|
|
3.42 |
% |
Tax-Exempt |
|
|
37,169 |
|
|
|
384 |
|
|
|
4.10 |
% |
|
|
39,258 |
|
|
|
339 |
|
|
|
3.43 |
% |
Total Securities |
|
|
118,011 |
|
|
|
951 |
|
|
|
3.20 |
% |
|
|
125,588 |
|
|
|
1,084 |
|
|
|
3.42 |
% |
Total Cash Equiv. and Investments |
|
|
160,936 |
|
|
|
1,178 |
|
|
|
2.90 |
% |
|
|
156,218 |
|
|
|
1,241 |
|
|
|
3.15 |
% |
Total Loans (3) |
|
|
899,028 |
|
|
|
11,109 |
|
|
|
4.90 |
% |
|
|
824,309 |
|
|
|
9,410 |
|
|
|
4.53 |
% |
Total Earning Assets |
|
|
1,059,964 |
|
|
|
12,287 |
|
|
|
4.60 |
% |
|
|
980,527 |
|
|
|
10,651 |
|
|
|
4.31 |
% |
Other Assets |
|
|
94,628 |
|
|
|
|
|
|
|
|
|
93,116 |
|
|
|
|
|
|
|
||||
Total Assets |
|
$ |
1,154,592 |
|
|
|
|
|
|
|
|
$ |
1,073,643 |
|
|
|
|
|
|
|
||||
Interest bearing demand |
|
$ |
278,816 |
|
|
$ |
808 |
|
|
|
1.15 |
% |
|
$ |
278,637 |
|
|
$ |
400 |
|
|
|
0.57 |
% |
Money market demand |
|
|
245,154 |
|
|
|
966 |
|
|
|
1.56 |
% |
|
|
244,107 |
|
|
|
568 |
|
|
|
0.92 |
% |
Time deposits |
|
|
211,090 |
|
|
|
691 |
|
|
|
1.30 |
% |
|
|
205,792 |
|
|
|
421 |
|
|
|
0.81 |
% |
Total Borrowings |
|
|
68,160 |
|
|
|
756 |
|
|
|
4.40 |
% |
|
|
52,562 |
|
|
|
521 |
|
|
|
3.93 |
% |
Total Interest-Bearing Liabilities |
|
|
803,220 |
|
|
|
3,221 |
|
|
|
1.59 |
% |
|
|
781,098 |
|
|
|
1,910 |
|
|
|
0.97 |
% |
Non Int Bearing Deposits |
|
|
199,556 |
|
|
|
|
|
|
|
|
|
170,863 |
|
|
|
|
|
|
|
||||
Total Cost of Funds |
|
$ |
1,002,776 |
|
|
$ |
3,221 |
|
|
|
1.27 |
% |
|
$ |
951,961 |
|
|
$ |
1,910 |
|
|
|
0.80 |
% |
Other Liabilities |
|
|
14,864 |
|
|
|
|
|
|
|
|
|
13,243 |
|
|
|
|
|
|
|
||||
Total Liabilities |
|
$ |
1,017,640 |
|
|
|
|
|
|
|
|
$ |
965,204 |
|
|
|
|
|
|
|
||||
Shareholders' Equity |
|
$ |
136,952 |
|
|
|
|
|
|
|
|
$ |
108,439 |
|
|
|
|
|
|
|
||||
Total Liabilities & Shareholders' Equity |
|
$ |
1,154,592 |
|
|
|
|
|
|
|
|
$ |
1,073,643 |
|
|
|
|
|
|
|
||||
Net Interest Income/Spread (FTE) |
|
|
|
|
|
9,066 |
|
|
|
3.01 |
% |
|
|
|
|
|
8,741 |
|
|
|
3.34 |
% |
||
Tax-Equivalent Basis Adjustment |
|
|
|
|
|
(81 |
) |
|
|
|
|
|
|
|
|
(71 |
) |
|
|
|
||||
Net Interest Income |
|
|
|
|
$ |
8,985 |
|
|
|
|
|
|
|
|
$ |
8,670 |
|
|
|
|
||||
Net Interest Margin |
|
|
|
|
|
|
|
|
3.36 |
% |
|
|
|
|
|
|
|
|
3.51 |
% |
||||
(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks. |
|
|||||||||||||||||||||||
(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table |
|
|||||||||||||||||||||||
(3) Includes the balances of nonaccrual loans |
|
|||||||||||||||||||||||
LINKBANCORP, Inc. and Subsidiaries |
|
|||||||||||||||||||||||
Net Interst Margin - Year-To-Date (Unaudited) |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the Year Ended December 31, |
|
|||||||||||||||||||||
|
|
2022 |
|
|
2021 |
|
||||||||||||||||||
(Dollars in thousands) |
|
Avg Bal |
|
|
Interest (2) |
|
|
Yield/Rate |
|
|
Avg Bal |
|
|
Interest (2) |
|
|
Yield/Rate |
|
||||||
Int. Earn. Cash |
|
$ |
56,783 |
|
|
$ |
533 |
|
|
|
0.94 |
% |
|
$ |
35,279 |
|
|
$ |
381 |
|
|
|
1.08 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable (1) |
|
|
78,629 |
|
|
|
2,175 |
|
|
|
2.77 |
% |
|
|
73,960 |
|
|
|
939 |
|
|
|
1.27 |
% |
Tax-Exempt |
|
|
40,388 |
|
|
|
1,468 |
|
|
|
3.63 |
% |
|
|
44,719 |
|
|
|
1,585 |
|
|
|
3.54 |
% |
Total Securities |
|
|
119,017 |
|
|
|
3,643 |
|
|
|
3.06 |
% |
|
|
118,679 |
|
|
|
2,524 |
|
|
|
2.13 |
% |
Total Cash Equiv. and Investments |
|
|
175,800 |
|
|
|
4,176 |
|
|
|
2.38 |
% |
|
|
153,958 |
|
|
|
2,905 |
|
|
|
1.89 |
% |
Total Loans (3) |
|
|
795,908 |
|
|
|
36,396 |
|
|
|
4.57 |
% |
|
|
369,849 |
|
|
|
15,924 |
|
|
|
4.31 |
% |
Total Earning Assets |
|
|
971,708 |
|
|
|
40,572 |
|
|
|
4.18 |
% |
|
|
523,807 |
|
|
|
18,829 |
|
|
|
3.59 |
% |
Other Assets |
|
|
88,485 |
|
|
|
|
|
|
|
|
|
46,615 |
|
|
|
|
|
|
|
||||
Total Assets |
|
$ |
1,060,193 |
|
|
|
|
|
|
|
|
$ |
570,422 |
|
|
|
|
|
|
|
||||
Interest bearing demand |
|
$ |
271,681 |
|
|
$ |
1,713 |
|
|
|
0.63 |
% |
|
$ |
175,133 |
|
|
$ |
1,034 |
|
|
|
0.59 |
% |
Money market demand |
|
|
229,979 |
|
|
|
1,911 |
|
|
|
0.83 |
% |
|
|
112,511 |
|
|
|
198 |
|
|
|
0.18 |
% |
Time deposits |
|
|
205,636 |
|
|
|
1,713 |
|
|
|
0.83 |
% |
|
|
110,928 |
|
|
|
859 |
|
|
|
0.77 |
% |
Total Borrowings |
|
|
55,980 |
|
|
|
1,942 |
|
|
|
3.47 |
% |
|
|
14,881 |
|
|
|
299 |
|
|
|
2.01 |
% |
Total Interest-Bearing Liabilities |
|
|
763,276 |
|
|
|
7,279 |
|
|
|
0.95 |
% |
|
|
413,453 |
|
|
|
2,390 |
|
|
|
0.58 |
% |
Non Int Bearing Deposits |
|
|
173,938 |
|
|
|
|
|
|
|
|
|
99,747 |
|
|
|
|
|
|
|
||||
Total Cost of Funds |
|
$ |
937,214 |
|
|
$ |
7,279 |
|
|
|
0.78 |
% |
|
$ |
513,200 |
|
|
$ |
2,390 |
|
|
|
0.47 |
% |
Other Liabilities |
|
|
15,806 |
|
|
|
|
|
|
|
|
|
5,965 |
|
|
|
|
|
|
|
||||
Total Liabilities |
|
$ |
953,020 |
|
|
|
|
|
|
|
|
$ |
519,165 |
|
|
|
|
|
|
|
||||
Shareholders' Equity |
|
$ |
107,173 |
|
|
|
|
|
|
|
|
$ |
51,257 |
|
|
|
|
|
|
|
||||
Total Liabilities & Shareholders' Equity |
|
$ |
1,060,193 |
|
|
|
|
|
|
|
|
$ |
570,422 |
|
|
|
|
|
|
|
||||
Net Interest Income/Spread (FTE) |
|
|
|
|
|
33,293 |
|
|
|
3.22 |
% |
|
|
|
|
|
16,439 |
|
|
|
3.01 |
% |
||
Tax-Equivalent Basis Adjustment |
|
|
|
|
|
(308 |
) |
|
|
|
|
|
|
|
|
(333 |
) |
|
|
|
||||
Net Interest Income |
|
|
|
|
$ |
32,985 |
|
|
|
|
|
|
|
|
$ |
16,106 |
|
|
|
|
||||
Net Interest Margin |
|
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
3.07 |
% |
||||
(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) |
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|||||
Agriculture loans |
|
$ |
15,591 |
|
|
$ |
13,977 |
|
|
$ |
7,710 |
|
|
$ |
8,111 |
|
|
$ |
9,341 |
|
Commercial loans |
|
|
103,874 |
|
|
|
97,542 |
|
|
|
88,452 |
|
|
|
94,114 |
|
|
|
98,604 |
|
Paycheck Protection Program ("PPP") loans |
|
|
881 |
|
|
|
933 |
|
|
|
2,527 |
|
|
|
10,586 |
|
|
|
23,774 |
|
Commercial real estate loans |
|
|
540,914 |
|
|
|
482,367 |
|
|
|
435,588 |
|
|
|
353,559 |
|
|
|
338,749 |
|
Residential real estate loans |
|
|
250,832 |
|
|
|
251,832 |
|
|
|
241,401 |
|
|
|
252,158 |
|
|
|
231,302 |
|
Consumer and other loans |
|
|
10,057 |
|
|
|
11,929 |
|
|
|
8,689 |
|
|
|
6,359 |
|
|
|
7,087 |
|
Municipal loans |
|
|
5,466 |
|
|
|
5,404 |
|
|
|
5,814 |
|
|
|
6,193 |
|
|
|
6,182 |
|
|
|
|
927,615 |
|
|
|
863,984 |
|
|
|
790,181 |
|
|
|
731,080 |
|
|
|
715,039 |
|
Deferred costs (fees) |
|
|
256 |
|
|
|
(15 |
) |
|
|
225 |
|
|
|
(19 |
) |
|
|
(223 |
) |
Total loans receivable |
|
$ |
927,871 |
|
|
$ |
863,969 |
|
|
$ |
790,406 |
|
|
$ |
731,061 |
|
|
$ |
714,816 |
|
LINKBANCORP, Inc. and Subsidiaries |
|
|||||||||||
Investments in Securities Detail (Unaudited) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
December 31, 2022 |
|
|||||||||
(In Thousands) |
|
Amortized |
|
|
Net |
|
|
Fair |
|
|||
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 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
December 31, 2021 |
|
|||||||||
(In Thousands) |
|
Amortized |
|
|
Net |
|
|
Fair |
|
|||
Available for Sale: |
|
|
|
|
|
|
|
|
|
|||
Small Business Administration loan pools |
|
$ |
1,099 |
|
|
$ |
(15 |
) |
|
$ |
1,084 |
|
Obligations of state and political subdivisions |
|
|
46,115 |
|
|
|
2,367 |
|
|
|
48,482 |
|
Mortgage-backed securities in government-sponsored entities |
|
|
54,239 |
|
|
|
(22 |
) |
|
|
54,217 |
|
|
|
$ |
101,453 |
|
|
$ |
2,330 |
|
|
$ |
103,783 |
|
LINKBANCORP, Inc. and Subsidiaries |
|
|||||||||||||||||||
Deposits Detail (Unaudited) |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(In Thousands) |
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|||||
Demand, noninterest-bearing |
|
$ |
192,773 |
|
|
$ |
184,857 |
|
|
$ |
184,345 |
|
|
$ |
165,228 |
|
|
$ |
129,243 |
|
Demand, interest-bearing |
|
|
254,478 |
|
|
|
305,934 |
|
|
|
269,493 |
|
|
|
269,222 |
|
|
|
256,258 |
|
Money market and savings |
|
|
228,048 |
|
|
|
266,743 |
|
|
|
235,411 |
|
|
|
224,673 |
|
|
|
205,843 |
|
Time deposits, $250 and over |
|
|
46,116 |
|
|
|
39,123 |
|
|
|
55,507 |
|
|
|
55,514 |
|
|
|
56,266 |
|
Time deposits, other |
|
|
225,357 |
|
|
|
155,053 |
|
|
|
157,617 |
|
|
|
147,533 |
|
|
|
124,055 |
|
|
|
$ |
946,772 |
|
|
$ |
951,710 |
|
|
$ |
902,373 |
|
|
$ |
862,170 |
|
|
$ |
771,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average Deposits Detail, for the Three Months Ended (Unaudited) |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(In Thousands) |
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|||||
Demand, noninterest-bearing |
|
$ |
199,556 |
|
|
$ |
170,863 |
|
|
$ |
152,691 |
|
|
$ |
131,841 |
|
|
$ |
171,885 |
|
Demand, interest-bearing |
|
|
278,816 |
|
|
|
278,637 |
|
|
|
270,844 |
|
|
|
258,140 |
|
|
|
218,173 |
|
Money market and savings |
|
|
245,154 |
|
|
|
244,107 |
|
|
|
224,483 |
|
|
|
215,410 |
|
|
|
206,482 |
|
Time deposits |
|
|
211,090 |
|
|
|
205,792 |
|
|
|
211,033 |
|
|
|
194,897 |
|
|
|
191,411 |
|
|
|
$ |
934,616 |
|
|
$ |
899,399 |
|
|
$ |
859,051 |
|
|
$ |
800,288 |
|
|
$ |
787,951 |
|
Non-GAAP Financial Measure Reconciliation
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 Year Ended |
|
||||||||||||||||
(Dollars in thousands) |
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
|
12/31/2022 |
|
|
12/31/2021 |
|
|||||
Net income |
$ |
696 |
|
|
$ |
1,772 |
|
|
$ |
788 |
|
|
$ |
5,598 |
|
|
$ |
289 |
|
Average assets |
|
1,154,592 |
|
|
|
1,073,643 |
|
|
|
948,760 |
|
|
|
1,060,193 |
|
|
|
570,422 |
|
Return on average assets (annualized) |
|
0.24 |
% |
|
|
0.65 |
% |
|
|
0.33 |
% |
|
|
0.53 |
% |
|
|
0.05 |
% |
Net income |
|
696 |
|
|
|
1,772 |
|
|
|
788 |
|
|
|
5,598 |
|
|
|
289 |
|
Net gains on sale of securities |
|
- |
|
|
|
- |
|
|
|
(74 |
) |
|
|
(13 |
) |
|
|
(74 |
) |
Tax effect at 21% |
|
- |
|
|
|
- |
|
|
|
16 |
|
|
|
3 |
|
|
|
16 |
|
Merger & system conversion related expenses |
|
973 |
|
|
|
- |
|
|
|
616 |
|
|
|
973 |
|
|
|
4,584 |
|
Tax effect at 21% |
|
(204 |
) |
|
|
- |
|
|
|
(129 |
) |
|
|
(204 |
) |
|
|
(963 |
) |
Adjusted Net Income (Non-GAAP) |
|
1,465 |
|
|
|
1,772 |
|
|
|
1,217 |
|
|
|
6,357 |
|
|
|
3,852 |
|
Average assets |
|
1,154,592 |
|
|
|
1,073,643 |
|
|
|
948,760 |
|
|
|
1,060,193 |
|
|
|
570,422 |
|
Adjusted return on average assets (annualized) |
|
0.50 |
% |
|
|
0.65 |
% |
|
|
0.51 |
% |
|
|
0.60 |
% |
|
|
0.68 |
% |
Adjusted Return on Average Shareholders' Equity |
|
||||||||||||||||||
|
For the Three Months Ended |
For the Year Ended |
|
||||||||||||||||
(Dollars in thousands) |
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
|
12/31/2022 |
|
|
12/31/2021 |
|
|||||
Net income |
$ |
696 |
|
|
$ |
1,772 |
|
|
$ |
788 |
|
|
$ |
5,598 |
|
|
$ |
289 |
|
Average shareholders' equity |
|
136,952 |
|
|
|
108,439 |
|
|
|
99,584 |
|
|
|
107,173 |
|
|
|
51,257 |
|
Return on average shareholders' equity (annualized) |
|
2.02 |
% |
|
|
6.48 |
% |
|
|
3.14 |
% |
|
|
5.22 |
% |
|
|
0.56 |
% |
Net income |
|
696 |
|
|
|
1,772 |
|
|
|
788 |
|
|
|
5,598 |
|
|
|
289 |
|
Net gains on sale of securities |
|
- |
|
|
|
- |
|
|
|
(74 |
) |
|
|
(13 |
) |
|
|
(74 |
) |
Tax effect at 21% |
|
- |
|
|
|
|
|
|
16 |
|
|
|
3 |
|
|
|
16 |
|
|
Merger & system conversion related expenses |
|
973 |
|
|
|
- |
|
|
|
616 |
|
|
|
973 |
|
|
|
4,584 |
|
Tax effect at 21% |
|
(204 |
) |
|
|
- |
|
|
|
(129 |
) |
|
|
(204 |
) |
|
|
(963 |
) |
Adjusted Net Income (Non-GAAP) |
|
1,465 |
|
|
|
1,772 |
|
|
|
1,217 |
|
|
|
6,357 |
|
|
|
3,852 |
|
Average shareholders' equity |
|
136,952 |
|
|
|
108,439 |
|
|
|
99,584 |
|
|
|
107,173 |
|
|
|
51,257 |
|
Adjusted return on average shareholders' equity (annualized) |
|
4.24 |
% |
|
|
6.48 |
% |
|
|
4.90 |
% |
|
|
5.93 |
% |
|
|
7.52 |
% |
Adjusted Efficiency Ratio |
|
||||||||||||||||||
|
For the Three Months Ended |
For the Year Ended |
|
||||||||||||||||
(Dollars in thousands) |
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
|
12/31/2022 |
|
|
12/31/2021 |
|
|||||
GAAP-based efficiency ratio |
|
88.96 |
% |
|
|
72.55 |
% |
|
|
88.69 |
% |
|
|
77.44 |
% |
|
|
95.90 |
% |
Net interest income |
$ |
8,985 |
|
|
$ |
8,670 |
|
|
$ |
7,079 |
|
|
$ |
32,985 |
|
|
$ |
16,106 |
|
Noninterest income |
|
508 |
|
|
|
1,041 |
|
|
|
581 |
|
|
|
2,957 |
|
|
|
2,139 |
|
Less: net gains on sales of securities |
|
- |
|
|
|
- |
|
|
|
74 |
|
|
|
13 |
|
|
|
74 |
|
Adjusted revenue (Non-GAAP) |
|
9,493 |
|
|
|
9,711 |
|
|
|
7,586 |
|
|
|
35,929 |
|
|
|
18,171 |
|
Total noninterest expense |
|
8,445 |
|
|
|
7,045 |
|
|
|
6,794 |
|
|
|
27,832 |
|
|
|
17,497 |
|
Less: Merger & system conversion related expenses |
|
973 |
|
|
|
- |
|
|
|
616 |
|
|
|
973 |
|
|
|
4,584 |
|
Adjusted non-interest expense |
|
7,472 |
|
|
|
7,045 |
|
|
|
6,178 |
|
|
|
26,859 |
|
|
|
12,913 |
|
Efficiency ratio, as adjusted (Non-GAAP) |
|
78.71 |
% |
|
|
72.55 |
% |
|
|
81.44 |
% |
|
|
74.76 |
% |
|
|
71.06 |
% |
Tangible Common Equity and Tangible Book Value |
|
|||||||||||||||||||
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
6/30/2022 |
|
|
3/31/2022 |
|
|
12/31/2021 |
|
|||||
Tangible Common Equity |
|
(Dollars in thousands, except for share data) |
|
|||||||||||||||||
Total shareholders’ equity |
|
$ |
138,553 |
|
|
$ |
136,942 |
|
|
$ |
104,771 |
|
|
$ |
106,340 |
|
|
$ |
109,623 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Goodwill |
|
|
(35,842 |
) |
|
|
(35,842 |
) |
|
|
(35,842 |
) |
|
|
(35,842 |
) |
|
|
(35,512 |
) |
Other intangible assets |
|
|
(1,052 |
) |
|
|
(1,113 |
) |
|
|
(1,178 |
) |
|
|
(1,243 |
) |
|
|
(1,310 |
) |
Tangible common equity (Non-GAAP) |
|
$ |
101,659 |
|
|
$ |
99,987 |
|
|
$ |
67,751 |
|
|
$ |
69,255 |
|
|
$ |
72,801 |
|
Common shares outstanding |
|
|
14,939,640 |
|
|
|
14,939,640 |
|
|
|
9,838,435 |
|
|
|
9,826,435 |
|
|
|
9,826,435 |
|
Book value per common share |
|
$ |
9.27 |
|
|
$ |
9.17 |
|
|
$ |
10.65 |
|
|
$ |
10.82 |
|
|
$ |
11.16 |
|
Tangible book value per common share |
|
$ |
6.80 |
|
|
$ |
6.69 |
|
|
$ |
6.89 |
|
|
$ |
7.05 |
|
|
$ |
7.41 |
|
Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets |
|
$ |
1,163,654 |
|
|
$ |
1,144,873 |
|
|
$ |
1,059,885 |
|
|
$ |
1,035,676 |
|
|
$ |
932,763 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Goodwill |
|
|
(35,842 |
) |
|
|
(35,842 |
) |
|
|
(35,842 |
) |
|
|
(35,842 |
) |
|
|
(35,512 |
) |
Other intangible assets |
|
|
(1,052 |
) |
|
|
(1,113 |
) |
|
|
(1,178 |
) |
|
|
(1,243 |
) |
|
|
(1,310 |
) |
Tangible assets (Non-GAAP) |
|
$ |
1,126,760 |
|
|
$ |
1,107,918 |
|
|
$ |
1,022,865 |
|
|
$ |
998,591 |
|
|
$ |
895,941 |
|
Tangible common equity to tangible assets (Non-GAAP) |
|
|
9.02 |
% |
|
|
9.02 |
% |
|
|
6.62 |
% |
|
|
6.94 |
% |
|
|
8.13 |
% |
Adjusted Earnings Per Share |
|
||||||||||||||||||
|
For the Three Months Ended |
For the Year Ended |
|
||||||||||||||||
(Dollars in thousands, except per share data) |
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
|
12/31/2022 |
|
|
12/31/2021 |
|
|||||
GAAP-Based Earnings Per Share, Basic |
$ |
0.05 |
|
|
$ |
0.17 |
|
|
$ |
0.08 |
|
|
$ |
0.49 |
|
|
$ |
0.04 |
|
GAAP-Based Earnings Per Share, Diluted |
$ |
0.05 |
|
|
$ |
0.17 |
|
|
$ |
0.08 |
|
|
$ |
0.49 |
|
|
$ |
0.04 |
|
Net Income |
$ |
696 |
|
|
$ |
1,772 |
|
|
$ |
788 |
|
|
$ |
5,598 |
|
|
$ |
289 |
|
Net gains on sale of securities |
|
- |
|
|
|
- |
|
|
|
(74 |
) |
|
|
(13 |
) |
|
|
(74 |
) |
Tax effect at 21% |
|
- |
|
|
|
- |
|
|
|
16 |
|
|
|
3 |
|
|
|
16 |
|
Merger & system conversion related expenses |
|
973 |
|
|
|
- |
|
|
|
616 |
|
|
|
973 |
|
|
|
4,584 |
|
Tax effect at 21% |
|
(204 |
) |
|
|
- |
|
|
|
(129 |
) |
|
|
(204 |
) |
|
|
(963 |
) |
Adjusted Net Income (Non-GAAP) |
|
1,465 |
|
|
|
1,772 |
|
|
|
1,217 |
|
|
|
6,357 |
|
|
|
3,852 |
|
Adjusted Earnings per Share, Basic (Non-GAAP) |
$ |
0.10 |
|
|
$ |
0.17 |
|
|
$ |
0.12 |
|
|
$ |
0.56 |
|
|
$ |
0.56 |
|
Adjusted Earnings per Share, Diluted (Non-GAAP) |
$ |
0.10 |
|
|
$ |
0.17 |
|
|
$ |
0.12 |
|
|
$ |
0.56 |
|
|
$ |
0.53 |
|