EX-99.1 2 lnkb-ex99_1.htm EX-99.1 EX-99.1

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Exhibit 99.1

FOR IMMEDIATE RELEASE

 

Contact:

Nicole Ulmer

Corporate and Investor Relations Officer

717.803.8895

IR@LINKBANCORP.COM

 

LINKBANCORP, Inc. Announces Third Quarter 2022

Financial Results and Quarterly Dividend

Octoeber 31, 2022 – HARRISBURG, PA -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the “Company”), the parent company of The Gratz Bank, including its LINKBANK division (the “Bank”) reported net income of $1.8 million, or $0.17 per diluted share, for the quarter ended September 30, 2022, compared to net income of $1.6 million, or $0.16 per diluted share, for the quarter ended June 30, 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 December 15, 2022 to shareholders of record on November 30, 2022.

Third Quarter 2022 Highlights

•
The Company completed its initial public offering (“IPO”) and its common stock began trading on the Nasdaq Capital Market under the symbol “LNKB.” Net proceeds to the Company were $34.7 million.
•
Net loans grew $72.9 million during the third quarter, representing a 40% annualized growth rate.
•
Total deposits grew $49.3 million during the third quarter, representing a 23% annualized growth rate.
•
Net interest income increased $817 thousand to $8.7 million, a 10.4% increase over the linked quarter with net interest margin expanding 13 basis points to 3.51% for the third quarter of 2022.

 

 

 

Andrew Samuel, Chief Executive Officer, commented, “We are very pleased with not only the strong loan growth achieved by our commercial lending teams during the third quarter, but also the high quality credits represented across all regions. Accompanied by continued growth in core deposits, we have good momentum to finish the year strong and further build operating leverage to progress toward our profitability targets.” He continued, “The additional capital provided by our successful IPO will support the Company’s continuing growth strategy and ensures that LINKBANCORP is well-positioned as we navigate an uncertain economic outlook.”

Income Statement

Net interest income before the provision for loan losses for the third quarter of 2022 increased to $8.7 million compared to $7.9 million in the second quarter of 2022 primarily as a result of average loan growth and the impact of the continued rising interest rate environment. Net interest margin expanded to 3.51% for the third quarter of 2022 as compared to 3.38% for the second quarter of 2022 despite a mild increase in funding costs, as the Bank’s cost of deposits increased 23 basis points from 0.38% for the second quarter of 2022 to 0.61% for the third quarter of 2022. Net interest margin is anticipated to remain relatively stable with modest expansion in the near term.

Noninterest income increased from $696 thousand in the second quarter of 2022 to $1.0 million in the third quarter of 2022, primarily driven by gains on sale of Small Business Administration (“SBA”) loans. Noninterest expense for the third quarter of 2022 increased $803 thousand to $7.0 million compared to $6.2 million for the second quarter of 2022. The increase included a $512 thousand increase in salaries and employee benefits as well as a $163 thousand increase in occupancy expense. The higher salaries and employee benefits were primarily a result of vacant positions filled late in the second quarter, several mid-year promotions, and an increase in incentive compensation accrual due to strong performance for the quarter. Increased occupancy costs related to the relocation of the Company’s operations and corporate center. The Bank has received all required approvals to legally change its name to LINKBANK effective November 4, 2022, thereafter eliminating costs associated with operating under multiple tradenames.

Balance Sheet

Total assets were $1.145 billion at September 30, 2022 compared to $1.060 billion at June 30, 2022 and $932.8 million at December 31, 2021. Deposits and net loans as of September 30, 2022 totaled $951.7 million and $859.4 million, respectively, compared to deposits and net loans of

 

 

 

$902.4 million and $786.5 million, respectively, at June 30, 2022 and $771.7 million and $711.7 million, respectively, at December 31, 2021. The loan growth from June 30, 2022 represents $73.6 million in primarily organic loan growth including the impact of forgiven loans under the SBA Paycheck Protection Program (PPP), which declined $1.6 million to $933 thousand at September 30, 2022. Loan growth was well diversified, with the average commercial loan size originated during the third quarter of approximately $725,000. The $49.3 million increase in deposits from June 30, 2022 included a $37.0 million increase in demand accounts and a $31.3 million increase in money market and savings accounts, offset by declines in time deposits.

Shareholders’ equity increased from $104.8 million at June 30, 2022 to $136.9 million at September 30, 2022 due primarily to IPO proceeds and net income, offset by a $3.5 million increase in accumulated other comprehensive loss as a result of increased unrealized losses on available-for-sale securities due to the increase in market interest rates and dividends declared.

Asset Quality

The provision for loan losses was $515 thousand for the three months ended September 30, 2022, an increase of $120 thousand compared to the prior quarter, related primarily to organic loan growth. The allowance for loan losses measured 0.53% of total loans, or approximately 0.89% of the non-purchased portfolio, at September 30, 2022, compared to 0.49% of total loans, or approximately 0.89% of the non-purchased portfolio, at June 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 $10.1 million or approximately 1.17% of the combined portfolio at September 30, 2022. The allowance for loan losses and the related provision reflects the Company’s continued application of the incurred loss method for estimating credit losses. The Company will adopt the current expected credit losses (“CECL”) accounting standard, as required, effective January 1, 2023.

As of September 30, 2022, the Company’s non-performing assets were $2.0 million, representing 0.17% of total assets. Non-performing assets at September 30, 2022 excluded purchased credit impaired loans with a balance of $4.8 million.

Regulatory Capital

The Bank’s regulatory capital ratios are in excess of regulatory minimums to be considered “well capitalized” as of September 30, 2022 and are expected to be further strengthened during the

 

 

 

fourth quarter, reflecting an additional $20 million in capital contributed to the Bank in October 2022 from the net proceeds of the Company’s IPO.

ABOUT LINKBANCORP, Inc.

LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, The Gratz Bank, is a Pennsylvania state-chartered bank serving individuals, families, nonprofits and business clients throughout Central and Southeastern Pennsylvania through 10 client solutions centers of The Gratz Bank and LINKBANK, a division of The Gratz Bank. 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

 

Consolidated Balance Sheet (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

 

 

June 30, 2022

 

 

March 31, 2022

 

 

December 31, 2021

 

 

September 30, 2021

 

(In Thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing cash equivalents

 

$

8,711

 

 

$

7,563

 

 

$

6,425

 

 

$

8,620

 

 

$

17,073

 

Interest-bearing deposits with other institutions

 

 

66,085

 

 

 

55,433

 

 

 

102,704

 

 

 

13,970

 

 

 

86,471

 

Cash and cash equivalents

 

$

74,796

 

 

$

62,996

 

 

$

109,129

 

 

$

22,590

 

 

$

103,544

 

Certificates of deposit with other banks

 

 

8,358

 

 

 

11,088

 

 

 

12,828

 

 

 

12,828

 

 

 

13,077

 

Securities available for sale, at fair value

 

 

78,698

 

 

 

85,756

 

 

 

93,202

 

 

 

103,783

 

 

 

122,748

 

Securities held to maturity

 

 

32,571

 

 

 

28,816

 

 

 

5,000

 

 

 

—

 

 

 

—

 

Loans held for sale

 

 

—

 

 

 

—

 

 

 

4,074

 

 

 

3,860

 

 

 

—

 

Loans receivable, gross

 

 

863,969

 

 

 

790,406

 

 

 

731,061

 

 

 

714,816

 

 

 

668,398

 

Allowance for Loan Losses

 

 

(4,569

)

 

 

(3,890

)

 

 

(3,443

)

 

 

(3,152

)

 

 

(3,335

)

Loans receivable, net

 

 

859,400

 

 

 

786,516

 

 

 

727,618

 

 

 

711,664

 

 

 

665,063

 

Investments in restricted bank stock

 

 

3,327

 

 

 

2,567

 

 

 

3,612

 

 

 

2,685

 

 

 

3,586

 

Premises and equipment, net

 

 

9,087

 

 

 

7,915

 

 

 

5,253

 

 

 

5,289

 

 

 

5,250

 

Right-of-Use Asset – Premises

 

 

8,920

 

 

 

4,513

 

 

 

4,605

 

 

 

4,680

 

 

 

4,748

 

Bank-owned life insurance

 

 

19,127

 

 

 

19,012

 

 

 

18,898

 

 

 

18,787

 

 

 

13,683

 

Goodwill and other intangible assets

 

 

36,955

 

 

 

37,020

 

 

 

37,085

 

 

 

37,152

 

 

 

36,890

 

Deferred tax asset

 

 

6,378

 

 

 

5,777

 

 

 

5,092

 

 

 

4,038

 

 

 

4,382

 

Accrued interest receivable and other assets

 

 

7,256

 

 

 

7,909

 

 

 

9,280

 

 

 

5,407

 

 

 

6,198

 

TOTAL ASSETS

 

$

1,144,873

 

 

$

1,059,885

 

 

$

1,035,676

 

 

$

932,763

 

 

$

979,169

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand, noninterest bearing

 

$

184,857

 

 

$

184,345

 

 

$

165,228

 

 

$

129,243

 

 

$

175,609

 

Interest bearing

 

 

766,853

 

 

 

718,028

 

 

 

696,942

 

 

 

642,422

 

 

 

626,986

 

Total deposits

 

 

951,710

 

 

 

902,373

 

 

 

862,170

 

 

 

771,665

 

 

 

802,595

 

Other Borrowings

 

 

—

 

 

 

1,639

 

 

 

36,117

 

 

 

19,814

 

 

 

33,034

 

Subordinated Debt

 

 

40,526

 

 

 

40,585

 

 

 

20,653

 

 

 

20,696

 

 

 

20,740

 

Operating Lease Liabilities

 

 

8,921

 

 

 

4,513

 

 

 

4,606

 

 

 

4,680

 

 

 

4,748

 

Accrued interest payable and other liabilities

 

 

6,774

 

 

 

6,004

 

 

 

5,790

 

 

 

6,285

 

 

 

8,091

 

TOTAL LIABILITIES

 

 

1,007,931

 

 

 

955,114

 

 

 

929,336

 

 

 

823,140

 

 

 

869,208

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock

 

 

149

 

 

 

99

 

 

 

99

 

 

 

99

 

 

 

98

 

Surplus

 

 

117,698

 

 

 

83,070

 

 

 

82,930

 

 

 

82,910

 

 

 

82,771

 

Retained earnings

 

 

27,525

 

 

 

26,491

 

 

 

25,623

 

 

 

24,836

 

 

 

24,785

 

Accumulated other comprehensive (loss) income

 

 

(8,430

)

 

 

(4,889

)

 

 

(2,312

)

 

 

1,778

 

 

 

2,307

 

TOTAL SHAREHOLDERS’ EQUITY

 

 

136,942

 

 

 

104,771

 

 

 

106,340

 

 

 

109,623

 

 

 

109,961

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

1,144,873

 

 

$

1,059,885

 

 

$

1,035,676

 

 

$

932,763

 

 

$

979,169

 

Common shares outstanding

 

 

14,939,640

 

 

 

9,838,435

 

 

 

9,826,435

 

 

 

9,826,435

 

 

 

9,814,447

 

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Consolidated Statements of Operations (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

9/30/2022

 

 

6/30/2022

 

 

9/30/2021

 

 

 

 

9/30/2022

 

 

9/30/2021

 

(In Thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, including fees

 

$

9,410

 

 

$

8,114

 

 

$

3,267

 

 

 

 

$

25,287

 

 

$

8,638

 

Other

 

 

1,170

 

 

 

981

 

 

 

636

 

 

 

 

 

2,771

 

 

 

1,921

 

Total interest and dividend income

 

 

10,580

 

 

 

9,095

 

 

 

3,903

 

 

 

 

 

28,058

 

 

 

10,559

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,389

 

 

 

818

 

 

 

504

 

 

 

 

 

2,872

 

 

 

1,470

 

Other Borrowings

 

 

82

 

 

 

2

 

 

 

14

 

 

 

 

 

106

 

 

 

25

 

Subordinated Debt

 

 

439

 

 

 

422

 

 

 

37

 

 

 

 

 

1,080

 

 

 

37

 

Total interest expense

 

 

1,910

 

 

 

1,242

 

 

 

555

 

 

 

 

 

4,058

 

 

 

1,532

 

NET INTEREST INCOME BEFORE PROVISION FOR
   LOAN LOSSES

 

 

8,670

 

 

 

7,853

 

 

 

3,348

 

 

 

 

 

24,000

 

 

 

9,027

 

Provision for loan losses

 

 

515

 

 

 

395

 

 

 

457

 

 

 

 

 

1,190

 

 

 

548

 

NET INTEREST INCOME AFTER PROVISION FOR
   LOAN LOSSES

 

 

8,155

 

 

 

7,458

 

 

 

2,891

 

 

 

 

 

22,810

 

 

 

8,479

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

216

 

 

 

218

 

 

 

177

 

 

 

 

 

644

 

 

 

517

 

Bank-owned life insurance

 

 

156

 

 

 

114

 

 

 

54

 

 

 

 

 

381

 

 

 

176

 

Net realized gains on the sales of debt securities, available for sale

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

13

 

 

 

—

 

Gain on sale of loans

 

 

420

 

 

 

153

 

 

 

53

 

 

 

 

 

753

 

 

 

316

 

Other

 

 

249

 

 

 

211

 

 

 

87

 

 

 

 

 

658

 

 

 

549

 

Total noninterest income

 

 

1,041

 

 

 

696

 

 

 

371

 

 

 

 

 

2,449

 

 

 

1,558

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

4,234

 

 

 

3,722

 

 

 

1,151

 

 

 

 

 

11,612

 

 

 

3,397

 

Occupancy

 

 

596

 

 

 

433

 

 

 

232

 

 

 

 

 

1,503

 

 

 

507

 

Equipment and data processing

 

 

666

 

 

 

595

 

 

 

335

 

 

 

 

 

1,858

 

 

 

803

 

Professional fees

 

 

330

 

 

 

307

 

 

 

75

 

 

 

 

 

865

 

 

 

264

 

FDIC insurance

 

 

141

 

 

 

138

 

 

 

90

 

 

 

 

 

483

 

 

 

150

 

Bank Shares Tax

 

 

201

 

 

 

201

 

 

 

87

 

 

 

 

 

585

 

 

 

260

 

Merger Related Expenses

 

 

—

 

 

 

—

 

 

 

3,864

 

 

 

 

 

—

 

 

 

3,968

 

Other

 

 

877

 

 

 

846

 

 

 

767

 

 

 

 

 

2,481

 

 

 

1,354

 

Total noninterest expense

 

 

7,045

 

 

 

6,242

 

 

 

6,601

 

 

 

 

 

19,387

 

 

 

10,703

 

Income (Loss) before income tax (benefit) expense

 

 

2,151

 

 

 

1,912

 

 

 

(3,339

)

 

 

 

 

5,872

 

 

 

(666

)

Income tax (benefit) expense

 

 

379

 

 

 

306

 

 

 

(542

)

 

 

 

 

970

 

 

 

(167

)

NET INCOME (LOSS)

 

$

1,772

 

 

$

1,606

 

 

$

(2,797

)

 

 

 

$

4,902

 

 

$

(499

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS (LOSS) PER SHARE, BASIC

 

$

0.17

 

 

$

0.16

 

 

$

(0.45

)

 

 

 

$

0.49

 

 

$

(0.08

)

EARNINGS (LOSS) PER SHARE, DILUTED

 

$

0.17

 

 

$

0.16

 

 

$

(0.45

)

 

 

 

$

0.48

 

 

$

(0.08

)

WEIGHTED-AVERAGE COMMON SHARES
   OUTSTANDING,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC

 

 

10,590,079

 

 

 

9,836,984

 

 

 

6,274,250

 

 

 

 

 

10,087,341

 

 

 

5,888,008

 

DILUTED

 

 

10,590,079

 

 

 

9,913,477

 

 

 

6,274,250

 

 

 

 

 

10,136,457

 

 

 

5,888,008

 

 

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Financial Highlights (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

('Dollars In Thousands)

 

9/30/2022

 

 

6/30/2022

 

 

9/30/2022

 

 

9/30/2021

 

Operating Highlights

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

1,772

 

 

$

1,606

 

 

$

4,902

 

 

$

(499

)

Net Interest Income

 

 

8,670

 

 

 

7,853

 

 

 

24,000

 

 

 

9,027

 

Provision for Loan Losses

 

 

515

 

 

 

395

 

 

 

1,190

 

 

 

548

 

Non-Interest Income

 

 

1,041

 

 

 

696

 

 

 

2,449

 

 

 

1,558

 

Non-Interest Expense

 

 

7,045

 

 

 

6,242

 

 

 

19,387

 

 

 

10,703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Operating Ratios

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

 

3.51

%

 

 

3.38

%

 

 

3.40

%

 

 

2.73

%

Annualized Return on Assets ("ROA")

 

 

0.65

%

 

 

0.63

%

 

 

0.63

%

 

 

-0.14

%

Adjusted ROA2

 

 

0.65

%

 

 

0.63

%

 

 

0.63

%

 

 

0.76

%

Annualized Return on Equity ("ROE")

 

 

6.48

%

 

 

6.13

%

 

 

7.68

%

 

 

-1.26

%

Adjusted ROE2

 

 

6.48

%

 

 

6.13

%

 

 

7.66

%

 

 

6.68

%

Efficiency Ratio

 

 

72.55

%

 

 

73.01

%

 

 

73.30

%

 

 

101.11

%

Adjusted Efficiency Ratio3

 

 

72.55

%

 

 

73.01

%

 

 

73.34

%

 

 

63.63

%

Noninterest Income to Avg. Assets

 

 

0.38

%

 

 

0.27

%

 

 

0.32

%

 

 

0.45

%

Noninterest Expense to Avg. Assets

 

 

2.60

%

 

 

2.42

%

 

 

2.51

%

 

 

3.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

 

12/31/2021

 

Financial Condition Data

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

1,144,873

 

 

$

1,059,885

 

 

$

1,035,676

 

 

$

932,763

 

Loans Receivable, Net

 

 

859,400

 

 

 

786,516

 

 

 

727,618

 

 

 

711,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing Deposits

 

 

184,857

 

 

 

184,345

 

 

 

165,228

 

 

 

129,243

 

Interest-bearing Deposits

 

 

766,853

 

 

 

718,028

 

 

 

696,942

 

 

 

642,422

 

Total Deposits

 

 

951,710

 

 

 

902,373

 

 

 

862,170

 

 

 

771,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Ratios

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital Ratio1

 

 

11.55

%

 

 

12.42

%

 

 

11.14

%

 

 

11.50

%

Tier 1 Capital Ratio1

 

 

11.04

%

 

 

11.94

%

 

 

10.67

%

 

 

11.02

%

Common Equity Tier 1 Capital Ratio1

 

 

11.04

%

 

 

11.94

%

 

 

10.67

%

 

 

11.02

%

Leverage Ratio1

 

 

9.74

%

 

 

10.10

%

 

 

8.71

%

 

 

8.85

%

Tangible Common Equity to Tangible Assets4

 

 

9.02

%

 

 

6.62

%

 

 

6.94

%

 

 

8.09

%

Tangible Book Value per Share5

 

$

6.69

 

 

$

6.89

 

 

$

7.05

 

 

$

7.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets

 

$

1,979

 

 

$

1,494

 

 

$

1,246

 

 

$

1,396

 

Non-performing Assets to Total Assets

 

 

0.17

%

 

 

0.14

%

 

 

0.12

%

 

 

0.15

%

Non-performing Loans to Total Loans

 

 

0.23

%

 

 

0.19

%

 

 

0.17

%

 

 

0.20

%

Allowance for Loan Losses ("AFLL")

 

$

4,569

 

 

$

3,890

 

 

$

3,443

 

 

$

3,152

 

AFLL to Total Loans

 

 

0.53

%

 

 

0.49

%

 

 

0.47

%

 

 

0.44

%

AFLL to Nonperforming Assets

 

 

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 noninterest expense divided by the sum of net interest income and noninterest income, excluding gains or losses from securities sales and merger related expenses. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

 

(4) - We calculate tangible common equity as total shareholders' equity less goodwill and other intangibles, and we calculate tangible assets as total assets less goodwill and other intangibles. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

 

(5) - We calculate tangible book value per common share as total shareholders' equity less goodwill and other intangibles, divided by the outstanding number of shares of our common stock at the end of the relevant period. Tangible book value per common share is a non-GAAP financial measure, and, as we calculate tangible book value per common share, the most directly comparable GAAP financial measure is book value per common share. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

 

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Net Interest Margin - Quarter-To-Date (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Avg Bal

 

 

Interest

 

 

Yield/Rate

 

 

Avg Bal

 

 

Interest

 

 

Yield/Rate

 

Interest Earning Cash

 

$

30,630

 

 

$

157

 

 

 

2.03

%

 

$

53,214

 

 

$

134

 

 

 

1.00

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (1)

 

 

86,330

 

 

 

745

 

 

 

3.42

%

 

 

72,386

 

 

 

202

 

 

 

1.11

%

Tax-Exempt

 

 

39,258

 

 

 

339

 

 

 

3.43

%

 

 

48,298

 

 

 

380

 

 

 

3.12

%

Total Securities

 

 

125,588

 

 

 

1,084

 

 

 

3.42

%

 

 

120,684

 

 

 

582

 

 

 

1.91

%

Total Cash Equiv. and Investments

 

 

156,218

 

 

 

1,241

 

 

 

3.15

%

 

 

173,898

 

 

 

716

 

 

 

1.63

%

Total Loans

 

 

824,309

 

 

 

9,410

 

 

 

4.53

%

 

 

313,636

 

 

 

3,267

 

 

 

4.13

%

Total Earning Assets

 

 

980,527

 

 

 

10,651

 

 

 

4.31

%

 

 

487,534

 

 

 

3,983

 

 

 

3.24

%

Other Assets

 

 

93,116

 

 

 

 

 

 

 

 

 

30,471

 

 

 

 

 

 

 

Total Assets

 

$

1,073,643

 

 

 

 

 

 

 

 

$

518,005

 

 

 

 

 

 

 

Interest bearing demand

 

$

278,637

 

 

$

400

 

 

 

0.57

%

 

$

168,662

 

 

$

264

 

 

 

0.62

%

Money market demand

 

 

244,107

 

 

 

568

 

 

 

0.92

%

 

 

96,450

 

 

 

37

 

 

 

0.15

%

Time deposits

 

 

205,792

 

 

 

421

 

 

 

0.81

%

 

 

71,219

 

 

 

203

 

 

 

1.13

%

Total Borrowings

 

 

52,562

 

 

 

521

 

 

 

3.93

%

 

 

8,172

 

 

 

51

 

 

 

2.48

%

Total Interest-Bearing Liabilities

 

 

781,098

 

 

 

1,910

 

 

 

0.97

%

 

 

344,503

 

 

 

555

 

 

 

0.64

%

Non Int Bearing Deposits

 

 

170,863

 

 

 

 

 

 

 

 

 

90,429

 

 

 

 

 

 

 

Total Cost of Funds

 

$

951,961

 

 

$

1,910

 

 

 

0.80

%

 

$

434,932

 

 

$

555

 

 

 

0.51

%

Other Liabilities

 

 

13,243

 

 

 

 

 

 

 

 

 

4,459

 

 

 

 

 

 

 

Total Liabilities

 

$

965,204

 

 

 

 

 

 

 

 

$

439,391

 

 

 

 

 

 

 

Shareholders' Equity

 

$

108,439

 

 

 

 

 

 

 

 

$

78,614

 

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

 

$

1,073,643

 

 

 

 

 

 

 

 

$

518,005

 

 

 

 

 

 

 

Net Interest Income/Spread (FTE)

 

 

 

 

 

8,741

 

 

 

3.34

%

 

 

 

 

 

3,428

 

 

 

2.60

%

Tax-Equivalent Basis Adjustment

 

 

 

 

 

(71

)

 

 

 

 

 

 

 

 

(80

)

 

 

 

Net Interest Income

 

 

 

 

$

8,670

 

 

 

 

 

 

 

 

$

3,348

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

3.51

%

 

 

 

 

 

 

 

 

2.72

%

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

 

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Net Interest Margin - Year-To-Date (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Avg Bal

 

 

Interest

 

 

Yield/Rate

 

 

Avg Bal

 

 

Interest

 

 

Yield/Rate

 

Interest Earning Cash

 

$

50,254

 

 

$

306

 

 

 

0.81

%

 

$

51,665

 

 

$

366

 

 

 

0.95

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (1)

 

 

86,590

 

 

 

1,608

 

 

 

2.48

%

 

 

81,654

 

 

 

649

 

 

 

1.06

%

Tax-Exempt

 

 

41,438

 

 

 

1,085

 

 

 

3.50

%

 

 

46,548

 

 

 

1,147

 

 

 

3.29

%

Total Securities

 

 

128,028

 

 

 

2,693

 

 

 

2.81

%

 

 

128,202

 

 

 

1,796

 

 

 

1.87

%

Total Cash Equiv. and Investments

 

 

178,282

 

 

 

2,999

 

 

 

2.25

%

 

 

179,867

 

 

 

2,162

 

 

 

1.61

%

Total Loans

 

 

765,267

 

 

 

25,287

 

 

 

4.42

%

 

 

262,051

 

 

 

8,638

 

 

 

4.41

%

Total Earning Assets

 

 

943,549

 

 

 

28,286

 

 

 

4.01

%

 

 

441,918

 

 

 

10,800

 

 

 

3.27

%

Other Assets

 

 

90,970

 

 

 

 

 

 

 

 

 

21,729

 

 

 

 

 

 

 

Total Assets

 

$

1,034,519

 

 

 

 

 

 

 

 

$

463,647

 

 

 

 

 

 

 

Interest bearing demand

 

$

269,282

 

 

$

905

 

 

 

0.45

%

 

$

162,587

 

 

$

800

 

 

 

0.66

%

Money market demand

 

 

228,105

 

 

 

945

 

 

 

0.55

%

 

 

79,637

 

 

 

73

 

 

 

0.12

%

Time deposits

 

 

203,947

 

 

 

1,022

 

 

 

0.67

%

 

 

83,495

 

 

 

597

 

 

 

0.96

%

Total Borrowings

 

 

84,382

 

 

 

1,186

 

 

 

1.88

%

 

 

2,236

 

 

 

62

 

 

 

3.71

%

Total Interest-Bearing Liabilities

 

 

785,716

 

 

 

4,058

 

 

 

0.69

%

 

 

327,955

 

 

 

1,532

 

 

 

0.62

%

Non Int Bearing Deposits

 

 

151,941

 

 

 

 

 

 

 

 

 

78,770

 

 

 

 

 

 

 

Total Cost of Funds

 

$

937,657

 

 

$

4,058

 

 

 

0.58

%

 

$

406,725

 

 

$

1,532

 

 

 

0.50

%

Other Liabilities

 

 

11,517

 

 

 

 

 

 

 

 

 

4,151

 

 

 

 

 

 

 

Total Liabilities

 

$

949,174

 

 

 

 

 

 

 

 

$

410,876

 

 

 

 

 

 

 

Shareholders' Equity

 

$

85,345

 

 

 

 

 

 

 

 

$

52,771

 

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

 

$

1,034,519

 

 

 

 

 

 

 

 

$

463,647

 

 

 

 

 

 

 

Net Interest Income/Spread (FTE)

 

 

 

 

 

24,228

 

 

 

3.32

%

 

 

 

 

 

9,268

 

 

 

2.65

%

Tax-Equivalent Basis Adjustment

 

 

 

 

 

(228

)

 

 

 

 

 

 

 

 

(241

)

 

 

 

Net Interest Income

 

 

 

 

$

24,000

 

 

 

 

 

 

 

 

$

9,027

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

3.40

%

 

 

 

 

 

 

 

 

2.73

%

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Loans Receivable Detail (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

September 30, 2022

 

 

June 30, 2022

 

 

March 31, 2022

 

 

December 31, 2021

 

 

September 30, 2021

 

Agriculture loans

 

$

13,977

 

 

$

7,710

 

 

$

8,111

 

 

$

9,341

 

 

$

8,873

 

Commercial loans

 

 

97,542

 

 

 

88,452

 

 

 

94,114

 

 

 

98,604

 

 

 

83,742

 

Paycheck Protection Program ("PPP") loans

 

 

933

 

 

 

2,527

 

 

 

10,586

 

 

 

23,774

 

 

 

39,794

 

Commercial real estate loans

 

 

482,367

 

 

 

435,588

 

 

 

353,559

 

 

 

338,749

 

 

 

309,079

 

Residential real estate loans

 

 

251,832

 

 

 

241,401

 

 

 

252,158

 

 

 

231,302

 

 

 

216,524

 

Consumer and other loans

 

 

11,929

 

 

 

8,689

 

 

 

6,359

 

 

 

7,087

 

 

 

4,309

 

Municipal loans

 

 

5,404

 

 

 

5,814

 

 

 

6,193

 

 

 

6,182

 

 

 

6,351

 

 

 

 

863,984

 

 

 

790,181

 

 

 

731,080

 

 

 

715,039

 

 

 

668,672

 

Deferred costs (fees)

 

 

(15

)

 

 

225

 

 

 

(19

)

 

 

(223

)

 

 

(274

)

Total loans receivable

 

$

863,969

 

 

$

790,406

 

 

$

731,061

 

 

$

714,816

 

 

$

668,398

 

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Investments in Securities Detail (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

 

(In Thousands)

 

Amortized
Cost

 

 

Net
Unrealized
Losses

 

 

Fair
Value

 

Available for Sale:

 

 

 

 

 

 

 

 

 

Small Business Administration loan pools

 

$

914

 

 

$

(13

)

 

$

901

 

Obligations of state and political subdivisions

 

 

44,352

 

 

 

(6,005

)

 

 

38,347

 

Mortgage-backed securities in government-sponsored entities

 

 

44,102

 

 

 

(4,652

)

 

 

39,450

 

 

 

$

89,368

 

 

$

(10,670

)

 

$

78,698

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

14,993

 

 

$

(883

)

 

$

14,110

 

Structured mortgage-backed securities

 

 

17,578

 

 

 

(773

)

 

 

16,805

 

 

 

$

32,571

 

 

$

(1,656

)

 

$

30,915

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Deposits Detail (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

September 30, 2022

 

 

June 30, 2022

 

 

March 31, 2022

 

 

December 31, 2021

 

 

September 30, 2021

 

Demand, noninterest-bearing

 

$

184,857

 

 

$

184,345

 

 

$

165,228

 

 

$

129,243

 

 

$

175,609

 

Demand, interest-bearing

 

 

305,934

 

 

 

269,493

 

 

 

269,222

 

 

 

256,258

 

 

 

217,857

 

Money market and savings

 

 

266,743

 

 

 

235,411

 

 

 

224,673

 

 

 

205,843

 

 

 

207,460

 

Time deposits, $250 and over

 

 

39,123

 

 

 

55,507

 

 

 

55,514

 

 

 

56,266

 

 

 

55,844

 

Time deposits, other

 

 

155,053

 

 

 

157,617

 

 

 

147,533

 

 

 

124,055

 

 

 

145,825

 

 

 

$

951,710

 

 

$

902,373

 

 

$

862,170

 

 

$

771,665

 

 

$

802,595

 

 

 

 

 

 

 

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 Nine Months Ended

 

(Dollars in thousands)

9/30/2022

 

 

6/30/2022

 

 

9/30/2022

 

 

9/30/2021

 

Net income (loss)

$

1,772

 

 

$

1,606

 

 

$

4,902

 

 

$

(499

)

Average assets

 

1,073,643

 

 

 

1,021,561

 

 

 

1,034,519

 

 

 

463,647

 

Return on average assets (annualized)

 

0.65

%

 

 

0.63

%

 

 

0.63

%

 

 

-0.14

%

Net income (loss)

 

1,772

 

 

 

1,606

 

 

 

4,902

 

 

 

(499

)

Net gains on sale of securities

 

-

 

 

 

-

 

 

 

(13

)

 

 

-

 

Tax effect at 21%

 

-

 

 

 

-

 

 

 

3

 

 

 

-

 

Merger Expenses

 

-

 

 

 

-

 

 

 

-

 

 

 

3,968

 

Tax effect at 21%

 

-

 

 

 

-

 

 

 

-

 

 

 

(833

)

Adjusted Net Income

 

1,772

 

 

 

1,606

 

 

 

4,892

 

 

 

2,636

 

Average assets

 

1,073,643

 

 

 

1,021,561

 

 

 

1,034,519

 

 

 

463,647

 

Adjusted return on average assets (annualized)

 

0.65

%

 

 

0.63

%

 

 

0.63

%

 

 

0.76

%

 

Adjusted Return on Average Shareholders' Equity

 

 

For the Three Months Ended

For the Nine Months Ended

 

(Dollars in thousands)

9/30/2022

 

 

6/30/2022

 

 

9/30/2022

 

 

9/30/2021

 

Net income (loss)

$

1,772

 

 

$

1,606

 

 

$

4,902

 

 

$

(499

)

Average shareholders' equity

 

108,439

 

 

 

105,060

 

 

 

85,345

 

 

 

52,771

 

Return on average shareholders' equity (annualized)

 

6.48

%

 

 

6.13

%

 

 

7.68

%

 

 

-1.26

%

Net income (loss)

 

1,772

 

 

 

1,606

 

 

 

4,902

 

 

 

(499

)

Net gains on sale of securities

 

-

 

 

 

-

 

 

 

(13

)

 

 

-

 

Tax effect at 21%

 

-

 

 

 

-

 

 

 

3

 

 

 

-

 

Merger Expenses

 

-

 

 

 

-

 

 

 

-

 

 

 

3,968

 

Tax effect at 21%

 

-

 

 

 

-

 

 

 

-

 

 

 

(833

)

Adjusted Net Income

 

1,772

 

 

 

1,606

 

 

 

4,892

 

 

 

2,636

 

Average shareholders' equity

 

108,439

 

 

 

105,060

 

 

 

85,345

 

 

 

52,771

 

Adjusted return on average shareholders' equity (annualized)

 

6.48

%

 

 

6.13

%

 

 

7.66

%

 

 

6.68

%

 

 

 

 

Adjusted Efficiency Ratio

 

 

For the Three Months Ended

For the Nine Months Ended

 

(Dollars in thousands)

9/30/2022

 

 

6/30/2022

 

 

9/30/2022

 

 

9/30/2021

 

GAAP-based efficiency ratio

 

72.55

%

 

 

73.01

%

 

 

73.30

%

 

 

101.11

%

Net interest income

$

8,670

 

 

$

7,853

 

 

$

24,000

 

 

$

9,027

 

Noninterest income

 

1,041

 

 

 

696

 

 

 

2,449

 

 

 

1,558

 

Less: net gains on sales of securities

 

-

 

 

 

-

 

 

 

13

 

 

 

-

 

Adjusted revenue

 

9,711

 

 

 

8,549

 

 

 

26,436

 

 

 

10,585

 

Total noninterest expense

 

7,045

 

 

 

6,242

 

 

 

19,387

 

 

 

10,703

 

Less: Merger expenses

 

-

 

 

 

-

 

 

 

-

 

 

 

3,968

 

Adjusted non-interest expense

 

7,045

 

 

 

6,242

 

 

 

19,387

 

 

 

6,735

 

Efficiency ratio, as adjusted

 

72.55

%

 

 

73.01

%

 

 

73.34

%

 

 

63.63

%

 

Tangible Common Equity and Tangible Book Value

 

 

 

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

 

$

136,942

 

 

$

104,771

 

 

$

106,340

 

 

$

109,623

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(35,842

)

 

 

(35,842

)

 

 

(35,842

)

 

 

(35,842

)

Other intangible assets

 

 

(1,113

)

 

 

(1,178

)

 

 

(1,243

)

 

 

(1,310

)

Tangible common equity

 

$

99,987

 

 

$

67,751

 

 

$

69,255

 

 

$

72,471

 

Common shares outstanding

 

 

14,939,640

 

 

 

9,838,435

 

 

 

9,826,435

 

 

 

9,826,435

 

Book value per common share

 

$

9.17

 

 

$

10.65

 

 

$

10.82

 

 

$

11.16

 

Tangible book value per common share

 

$

6.69

 

 

$

6.89

 

 

$

7.05

 

 

$

7.38

 

Tangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,144,873

 

 

$

1,059,885

 

 

$

1,035,676

 

 

$

932,763

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(35,842

)

 

 

(35,842

)

 

 

(35,842

)

 

 

(35,842

)

Other intangible assets

 

 

(1,113

)

 

 

(1,178

)

 

 

(1,243

)

 

 

(1,310

)

Tangible assets

 

$

1,107,918

 

 

$

1,022,865

 

 

$

998,591

 

 

$

895,611

 

Tangible common equity to tangible assets

 

 

9.02

%

 

 

6.62

%

 

 

6.94

%

 

 

8.09

%