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

img53420396_0.jpg 

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Nicole Davis

Corporate and Investor Relations Officer

717.803.8895

IR@LINKBANCORP.COM

LINKBANCORP, Inc. Announces Record First Quarter Earnings

April 29, 2024 – HARRISBURG, PA – LINKBANCORP, Inc. (NASDAQ: LNKB) (the “Company”), the parent company of LINKBANK (the “Bank”) reported net income of $5.73 million, or $0.15 per diluted share, for the quarter ended March 31, 2024. Excluding merger related expenses, adjusted earnings were $5.77 million1, or $0.161 per diluted share for the first quarter of 2024.

First Quarter 2024 Highlights

•
Net interest income before provision was $24.9 million for the first quarter of 2024, compared to $14.3 million in the fourth quarter of 2023. Net interest margin grew from 3.55% for the fourth quarter of 2023 to 4.03% for the first quarter of 2024.
•
Total deposits increased to $2.39 billion at March 31, 2024 from $2.30 billion at December 31, 2023 and $984.5 million at March 31, 2023. Total loans increased slightly to $2.25 billion at March 31, 2024, compared to $2.24 billion at December 31, 2023 and $945.4 million at March 31, 2023.
•
The Company enhanced its on-balance sheet liquidity with cash and cash equivalents at March 31, 2024 of $172.3 million, up from $80.2 million at December 31, 2023 and $51.7 million at March 31, 2023.
•
Asset quality remained strong as non-performing assets were $6.7 million, representing 0.25% of total assets at March 31, 2024, compared to $7.3 million, representing 0.27% of total assets at December 31, 2023. The allowance for credit

 

1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.

 

 

losses-loans was 1.06% of total loans at March 31, 2024, unchanged from December 31, 2023.

Given that the merger with Partners Bancorp (“Partners”) was completed on November 30, 2023 (the “Merger”), fourth quarter 2023 results do not represent a full quarter of comparable combined earnings. Reported results prior to the fourth quarter of 2023 reflect legacy LINKBANCORP results only.

“We are very pleased by the strong results of the first quarter of 2024, which represents the first full quarter following completion of our merger with Partners Bancorp,” said Andrew Samuel, Chief Executive Officer of LINKBANCORP. “Following a very successful conversion during the fourth quarter, we have continued to make significant progress in integrating our institutions and executing on the actions needed to achieve the operational efficiencies and other benefits of this combination, including recognizing a 14% reduction in headcount since the close of the transaction and positive steps in implementing our bank-wide branch rationalization initiative.” He continued, “Loan activity during the quarter was consistent with our expectations and solid deposit growth will support growing loan pipelines.”

Income Statement

Net interest income before the provision for credit losses for the first quarter of 2024 increased to $24.9 million compared to $14.3 million in the fourth quarter of 2023. Net interest margin was 4.03% for the first quarter of 2024 compared to 3.55% for the fourth quarter of 2023. The average yield on interest-earning assets increased by 56 basis points over the prior linked quarter, due to an increase in the average yield on loans of 45 basis points to 6.48% as well as a 61 basis points increase in the average yield on securities to 4.71%. Cost of funds increased slightly to 2.33% for the first quarter of 2024 compared to 2.28% for the fourth quarter of 2023. The increase in net interest income was primarily a result of the Merger, including the lower cost deposits from legacy Partners and the impact of purchase accounting accretion.

Noninterest income increased quarter-over-quarter to $1.7 million for the first quarter of 2024 compared to $1.2 million for the fourth quarter of 2023. This increase was primarily related to a $395 thousand increase in service charges on deposit accounts resulting from the Merger, offset by a decrease in gain on sale of loans.

 

 

Noninterest expense for the first quarter of 2024 was $19.3 million compared to $22.3 million for the fourth quarter of 2023. Excluding one-time charges related to the Merger of $56 thousand in the first quarter of 2024 and $9.5 million in the fourth quarter of 2023, noninterest expense increased by $6.4 million to $19.2 million in the first quarter of 2024 from $12.8 million in the fourth quarter1. This increase was primarily due to the increased headcount and infrastructure resulting from the Merger, and amortization of the core deposit intangible assets. Salary and employee benefit expenses for the first quarter of 2024 included costs for personnel retained for post-conversion support through January 2024, as well as increased incentive compensation expense.

Income tax expense was $1.6 million for the first quarter of 2024, reflecting an effective tax rate of 21.8%.

Balance Sheet

Total assets were $2.78 billion at March 31, 2024 compared to $2.67 billion at December 31, 2023 and $1.21 billion at March 31, 2023. Deposits and net loans as of March 31, 2024 totaled $2.39 billion and $2.22 billion, respectively, compared to deposits and net loans of $2.30 billion and $2.22 billion, respectively, at December 31, 2023 and $984.5 million and $934.8 million, respectively, at March 31, 2023.

Total loans increased $4.3 million during the first quarter of 2024 to $2.25 billion at March 31, 2024, with muted net loan growth reflecting the continued integration following the completion of the Merger and introduction of the Company to new markets. Total commercial loan commitments for the first quarter of 2024 were $77.0 million with funded balances of $45.2 million. The average commercial loan commitment originated during the first quarter of 2024 totaled approximately $664 thousand with an average outstanding funded balance of $390 thousand.

Cash and cash equivalents increased $92.1 million to $172.3 million at March 31, 2024 compared to $80.2 million at December 31, 2023 and $51.7 million at March 31, 2023. The increase was due to deposit growth outpacing net loan growth, as well as an increase in long term FHLB borrowings as the Company took steps to extend the maturity of its liabilities.

 

1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.

 

Deposits at March 31, 2024 totaled $2.39 billion, an increase of $87.6 million compared to $2.30 billion at December 31, 2023. This increase was driven by significant growth in interest bearing deposits, including a $14.5 million increase in money market and savings accounts and $39.4 million increase in retail time deposits. Additionally, brokered certificates of deposits increased by $27.2 million to $146.7 million at March 31, 2024, as compared to at December 31, 2023, which includes $75 million related to an interest rate swap executed in 2023.

Shareholders’ equity increased from $265.8 million at December 31, 2023 to $268.2 million at March 31, 2024 primarily as a result of a $2.9 million increase in retained earnings. Book value per share increased to $7.18 at March 31, 2024 compared to $7.12 at December 31, 2023. Tangible book value per share increased $0.10 to $5.00 at March 31, 2024 compared to $4.90 at December 31, 20231.

Asset Quality

In the first quarter of 2024, the Company recorded a provision for credit losses of $40 thousand, compared to a $9.8 million provision for credit losses in the fourth quarter of 2023, which included $9.7 million associated with the day one accounting provision required for loans acquired not designated as purchase credit deteriorated in the Merger.

Asset quality metrics remain strong. As of March 31, 2024, the Company’s non-performing assets were $6.7 million, representing 0.25% of total assets. Loans 30-89 days past due at March 31, 2024 were $15.3 million, representing 0.68% of total loans.

The allowance for credit losses-loans was $23.8 million, or 1.06% of total loans at March 31, 2024, which remained consistent quarter over quarter with the allowance for credit losses-loans of $23.8 million, or 1.06% of total loans at December 31, 2023. The allowance for credit losses-loans to nonperforming assets was 357.18% at March 31, 2024, compared to 327.82% at December 31, 2023.

Capital

The Bank’s regulatory capital ratios were well in excess of regulatory minimums to be considered “well capitalized” as of March 31, 2024. The Bank’s Total Capital Ratio and Tier 1 Capital Ratio were 11.04% and 10.24%, respectively, at March 31, 2024, compared to 10.62% and 9.92%, respectively, at December 31, 2023 and 13.53% and 12.32%, respectively, at March

 

1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.

 

31, 2023. The Company’s ratio of Tangible Common Equity to Tangible Assets was 6.91%1 at March 31, 2024.

ABOUT LINKBANCORP, Inc.

LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, LINKBANK, is a Pennsylvania state-chartered bank serving individuals, families, nonprofits and business clients throughout Pennsylvania, Maryland, Delaware, Virginia, and New Jersey through 29 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.

 

 

 

1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.

 

 

Forward Looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties associated with newly developed or acquired operations; risks related to the integration of the merger with Partners; changes in general economic trends, including inflation and changes in interest rates; increased competition; changes in consumer demand for financial services; our ability to control costs and expenses; adverse developments in borrower industries and, in particular, declines in real estate values; changes in and compliance with federal and state laws that regulate our business and capital levels; our ability to raise capital as needed; and the effects of any cybersecurity breaches. The Company does not undertake, and specifically disclaims, any obligation to publicly revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. Accordingly, you should not place undue reliance on forward-looking statements.

LB-E

LB-D

 

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Consolidated Balance Sheet (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30, 2023

 

 

March 31, 2023

 

(In Thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing cash equivalents

 

$

13,552

 

 

$

13,089

 

 

$

5,447

 

 

$

4,736

 

 

$

4,545

 

Interest-bearing deposits with other institutions

 

 

158,731

 

 

 

67,101

 

 

 

62,532

 

 

 

118,438

 

 

 

47,190

 

Cash and cash equivalents

 

 

172,283

 

 

 

80,190

 

 

 

67,979

 

 

 

123,174

 

 

 

51,735

 

Certificates of deposit with other banks

 

 

—

 

 

 

—

 

 

 

249

 

 

 

498

 

 

 

745

 

Securities available for sale, at fair value

 

 

133,949

 

 

 

115,490

 

 

 

78,779

 

 

 

83,620

 

 

 

86,804

 

Securities held to maturity, net of allowance for credit losses

 

 

36,109

 

 

 

36,223

 

 

 

37,266

 

 

 

38,220

 

 

 

38,986

 

Loans receivable, gross

 

 

2,245,817

 

 

 

2,241,533

 

 

 

978,912

 

 

 

969,533

 

 

 

945,371

 

Allowance for credit losses - loans

 

 

(23,842

)

 

 

(23,767

)

 

 

(9,964

)

 

 

(10,228

)

 

 

(10,526

)

Loans receivable, net

 

 

2,221,975

 

 

 

2,217,766

 

 

 

968,948

 

 

 

959,305

 

 

 

934,845

 

Investments in restricted bank stock

 

 

4,286

 

 

 

3,965

 

 

 

3,107

 

 

 

5,544

 

 

 

4,134

 

Premises and equipment, net

 

 

22,233

 

 

 

22,279

 

 

 

6,414

 

 

 

6,292

 

 

 

6,497

 

Right-of-Use Asset – Premises

 

 

14,663

 

 

 

15,598

 

 

 

9,727

 

 

 

9,896

 

 

 

10,058

 

Bank-owned life insurance

 

 

49,230

 

 

 

48,847

 

 

 

24,732

 

 

 

24,554

 

 

 

24,384

 

Goodwill and other intangible assets

 

 

81,494

 

 

 

82,701

 

 

 

36,715

 

 

 

36,774

 

 

 

36,833

 

Deferred tax asset

 

 

23,463

 

 

 

24,153

 

 

 

6,880

 

 

 

6,571

 

 

 

6,749

 

Accrued interest receivable and other assets

 

 

24,579

 

 

 

22,113

 

 

 

14,899

 

 

 

14,024

 

 

 

12,188

 

TOTAL ASSETS

 

$

2,784,264

 

 

$

2,669,325

 

 

$

1,255,695

 

 

$

1,308,472

 

 

$

1,213,958

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand, noninterest bearing

 

$

653,719

 

 

$

655,953

 

 

$

210,404

 

 

$

240,729

 

 

$

204,495

 

Interest bearing

 

 

1,732,310

 

 

 

1,642,520

 

 

 

831,368

 

 

 

794,113

 

 

 

780,003

 

Total deposits

 

 

2,386,029

 

 

 

2,298,473

 

 

 

1,041,772

 

 

 

1,034,842

 

 

 

984,498

 

Other Borrowings

 

 

40,499

 

 

 

10,590

 

 

 

15,000

 

 

 

74,899

 

 

 

31,250

 

Subordinated Debt

 

 

61,573

 

 

 

61,444

 

 

 

40,354

 

 

 

40,398

 

 

 

40,441

 

Lease liabilities

 

 

15,445

 

 

 

16,464

 

 

 

9,728

 

 

 

9,896

 

 

 

10,058

 

Accrued interest payable and other liabilities

 

 

12,475

 

 

 

16,558

 

 

 

7,490

 

 

 

5,985

 

 

 

6,130

 

TOTAL LIABILITIES

 

 

2,516,021

 

 

 

2,403,529

 

 

 

1,114,344

 

 

 

1,166,020

 

 

 

1,072,377

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock

 

 

369

 

 

 

369

 

 

 

162

 

 

 

162

 

 

 

250

 

Surplus

 

 

263,577

 

 

 

263,310

 

 

 

127,856

 

 

 

127,818

 

 

 

127,659

 

Retained earnings

 

 

7,724

 

 

 

4,843

 

 

 

19,062

 

 

 

19,039

 

 

 

18,911

 

Accumulated other comprehensive loss

 

 

(3,427

)

 

 

(3,209

)

 

 

(5,729

)

 

 

(4,567

)

 

 

(5,239

)

        Total equity attributable to parent

 

 

268,243

 

 

 

265,313

 

 

 

141,351

 

 

 

142,452

 

 

 

141,581

 

        Noncontrolling interest in consolidated subsidiary

 

 

—

 

 

 

483

 

 

 

—

 

 

 

—

 

 

 

—

 

TOTAL SHAREHOLDERS' EQUITY

 

 

268,243

 

 

 

265,796

 

 

 

141,351

 

 

 

142,452

 

 

 

141,581

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

2,784,264

 

 

$

2,669,325

 

 

$

1,255,695

 

 

$

1,308,472

 

 

$

1,213,958

 

Common shares outstanding

 

 

37,348,151

 

 

 

37,340,700

 

 

 

16,235,871

 

 

 

16,228,440

 

 

 

16,221,692

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Consolidated Statements of Operations (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

3/31/2024

 

 

12/31/2023

 

 

3/31/2023

 

(In Thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

Loans receivable, including fees

 

$

36,125

 

 

$

21,461

 

 

$

11,762

 

Other

 

 

2,650

 

 

 

1,642

 

 

 

1,228

 

Total interest and dividend income

 

 

38,775

 

 

 

23,103

 

 

 

12,990

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

 

11,847

 

 

 

7,445

 

 

 

4,517

 

Other Borrowings

 

 

1,152

 

 

 

727

 

 

 

87

 

Subordinated Debt

 

 

892

 

 

 

615

 

 

 

432

 

Total interest expense

 

 

13,891

 

 

 

8,787

 

 

 

5,036

 

NET INTEREST INCOME BEFORE
   PROVISION FOR CREDIT LOSSES

 

 

24,884

 

 

 

14,316

 

 

 

7,954

 

Provision for credit losses

 

 

40

 

 

 

9,844

 

 

 

293

 

NET INTEREST INCOME AFTER
   PROVISION FOR CREDIT LOSSES

 

 

24,844

 

 

 

4,472

 

 

 

7,661

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

780

 

 

 

385

 

 

 

199

 

Bank-owned life insurance

 

 

383

 

 

 

250

 

 

 

140

 

Net realized losses on the sale of debt securities

 

 

—

 

 

 

—

 

 

 

(2,370

)

Gain on sale of loans

 

 

50

 

 

 

166

 

 

 

—

 

Other

 

 

516

 

 

 

374

 

 

 

178

 

Total noninterest income

 

 

1,729

 

 

 

1,175

 

 

 

(1,853

)

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

11,118

 

 

 

8,262

 

 

 

4,120

 

Occupancy

 

 

1,578

 

 

 

911

 

 

 

707

 

Equipment and data processing

 

 

1,826

 

 

 

1,201

 

 

 

693

 

Professional fees

 

 

748

 

 

 

536

 

 

 

381

 

FDIC insurance

 

 

352

 

 

 

198

 

 

 

159

 

Bank Shares Tax

 

 

591

 

 

 

323

 

 

 

278

 

Intangible amortization

 

 

1,206

 

 

 

484

 

 

 

61

 

Merger & system conversion related expenses

 

 

56

 

 

 

9,496

 

 

 

587

 

Other

 

 

1,775

 

 

 

874

 

 

 

751

 

Total noninterest expense

 

 

19,250

 

 

 

22,285

 

 

 

7,737

 

Income (loss) before income tax expense (benefit)

 

 

7,323

 

 

 

(16,638

)

 

 

(1,929

)

Income tax expense (benefit)

 

 

1,597

 

 

 

(3,641

)

 

 

(376

)

NET INCOME (LOSS)

 

$

5,726

 

 

$

(12,997

)

 

$

(1,553

)

 

 

 

 

 

 

 

 

 

 

EARNINGS (LOSS) PER SHARE, BASIC

 

$

0.15

 

 

$

(0.56

)

 

$

(0.10

)

 EARNINGS (LOSS) PER SHARE, DILUTED

 

$

0.15

 

 

$

(0.56

)

 

$

(0.10

)

WEIGHTED-AVERAGE COMMON SHARES
   OUTSTANDING,

 

 

 

 

 

 

 

 

 

BASIC

 

 

36,962,005

 

 

 

23,063,202

 

 

 

15,480,951

 

DILUTED

 

 

37,038,230

 

 

 

23,063,202

 

 

 

15,480,951

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Financial Highlights (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

 

('Dollars In Thousands, except per share data)

3/31/2024

 

 

12/31/2023

 

 

3/31/2023

 

 

 

 

 

 

 

Operating Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (loss)

$

5,726

 

 

$

(12,997

)

 

$

(1,553

)

 

 

 

 

 

 

Net Interest Income

 

24,884

 

 

 

14,316

 

 

 

7,954

 

 

 

 

 

 

 

Provision for Credit Losses

 

40

 

 

 

9,844

 

 

 

293

 

 

 

 

 

 

 

Non-Interest Income

 

1,729

 

 

 

1,175

 

 

 

(1,853

)

 

 

 

 

 

 

Non-Interest Expense

 

19,250

 

 

 

22,285

 

 

 

7,737

 

 

 

 

 

 

 

Earnings (loss) per Share, Basic

 

0.15

 

 

 

(0.56

)

 

 

(0.10

)

 

 

 

 

 

 

Adjusted Earnings per Share, Basic (2)

 

0.16

 

 

 

0.09

 

 

 

0.05

 

 

 

 

 

 

 

Earnings (loss) per Share, Diluted

 

0.15

 

 

 

(0.56

)

 

 

(0.10

)

 

 

 

 

 

 

Adjusted Earnings per Share, Diluted (2)

 

0.16

 

 

 

0.09

 

 

 

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Operating Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

4.03

%

 

 

3.55

%

 

 

2.95

%

 

 

 

 

 

 

Annualized Return on Assets ("ROA")

 

0.86

%

 

 

-2.96

%

 

 

-0.53

%

 

 

 

 

 

 

Adjusted ROA2

 

0.86

%

 

 

0.49

%

 

 

0.27

%

 

 

 

 

 

 

Annualized Return on Equity ("ROE")

 

8.63

%

 

 

-28.24

%

 

 

-4.56

%

 

 

 

 

 

 

Adjusted ROE2

 

8.70

%

 

 

4.70

%

 

 

2.30

%

 

 

 

 

 

 

Efficiency Ratio

 

72.33

%

 

 

143.86

%

 

 

126.82

%

 

 

 

 

 

 

Adjusted Efficiency Ratio3

 

72.12

%

 

 

82.56

%

 

 

84.41

%

 

 

 

 

 

 

Noninterest Income to Avg. Assets

 

0.26

%

 

 

0.27

%

 

 

-0.63

%

 

 

 

 

 

 

Noninterest Expense to Avg. Assets

 

2.88

%

 

 

5.08

%

 

 

2.65

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

Financial Condition Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

2,784,264

 

 

$

2,669,325

 

 

$

1,255,695

 

 

$

1,308,472

 

 

$

1,213,958

 

Loans Receivable, Net

 

2,221,975

 

 

 

2,217,766

 

 

 

968,948

 

 

 

959,305

 

 

 

934,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Noninterest-bearing Deposits

 

653,719

 

 

 

655,953

 

 

 

210,404

 

 

 

240,729

 

 

 

204,495

 

     Interest-bearing Deposits

 

1,732,310

 

 

 

1,642,520

 

 

 

831,368

 

 

 

794,113

 

 

 

780,003

 

Total Deposits

 

2,386,029

 

 

 

2,298,473

 

 

 

1,041,772

 

 

 

1,034,842

 

 

 

984,498

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital Ratio1

 

11.04

%

 

 

10.62

%

 

 

12.92

%

 

 

12.88

%

 

 

13.53

%

Tier 1 Capital Ratio1

 

10.24

%

 

 

9.92

%

 

 

12.37

%

 

 

12.29

%

 

 

12.32

%

Common Equity Tier 1 Capital Ratio1

 

10.24

%

 

 

9.92

%

 

 

12.37

%

 

 

12.29

%

 

 

12.32

%

Leverage Ratio1

 

9.23

%

 

 

14.13

%

 

 

10.71

%

 

 

10.41

%

 

 

10.78

%

Tangible Common Equity to Tangible Assets4

 

6.91

%

 

 

7.08

%

 

 

8.58

%

 

 

8.31

%

 

 

8.90

%

Tangible Book Value per Share5

$

5.00

 

 

$

4.90

 

 

$

6.44

 

 

$

6.51

 

 

$

6.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing Assets

$

6,675

 

 

$

7,250

 

 

$

2,958

 

 

$

2,856

 

 

$

2,398

 

Non-performing Assets to Total Assets

 

0.25

%

 

 

0.27

%

 

 

0.24

%

 

 

0.22

%

 

 

0.20

%

Non-performing Loans to Total Loans

 

0.30

%

 

 

0.32

%

 

 

0.30

%

 

 

0.29

%

 

 

0.25

%

Allowance for Credit Losses - Loans ("ACLL")

$

23,842

 

 

$

23,767

 

 

$

9,964

 

 

$

10,228

 

 

$

10,526

 

ACLL to Total Loans

 

1.06

%

 

 

1.06

%

 

 

1.02

%

 

 

1.05

%

 

 

1.11

%

ACLL to Nonperforming Assets

 

357.18

%

 

 

327.82

%

 

 

336.85

%

 

 

358.12

%

 

 

438.95

%

Net chargeoffs (recoveries)

$

70

 

 

$

195

 

 

$

(12

)

 

$

(97

)

 

$

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 March 31,

 

 

 

2024

 

 

2023

 

(Dollars in thousands)

 

Avg Bal

 

 

Interest (2)

 

 

Yield/Rate

 

 

Avg Bal

 

 

Interest (2)

 

 

Yield/Rate

 

Int. Earn. Cash

 

$

82,420

 

 

$

898

 

 

 

4.38

%

 

$

36,470

 

 

$

275

 

 

 

3.06

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (1)

 

 

114,896

 

 

 

1,391

 

 

 

4.87

%

 

 

81,899

 

 

 

653

 

 

 

3.23

%

Tax-Exempt

 

 

42,984

 

 

 

457

 

 

 

4.28

%

 

 

38,368

 

 

 

377

 

 

 

3.98

%

Total Securities

 

 

157,880

 

 

 

1,848

 

 

 

4.71

%

 

 

120,267

 

 

 

1,030

 

 

 

3.47

%

Total Cash Equiv. and Investments

 

 

240,300

 

 

 

2,746

 

 

 

4.60

%

 

 

156,737

 

 

 

1,305

 

 

 

3.38

%

Total Loans (3)

 

 

2,240,714

 

 

 

36,125

 

 

 

6.48

%

 

 

936,510

 

 

 

11,762

 

 

 

5.09

%

Total Earning Assets

 

 

2,481,014

 

 

 

38,871

 

 

 

6.30

%

 

 

1,093,247

 

 

 

13,067

 

 

 

4.85

%

Other Assets

 

 

210,826

 

 

 

 

 

 

 

 

 

90,938

 

 

 

 

 

 

 

Total Assets

 

$

2,691,840

 

 

 

 

 

 

 

 

$

1,184,185

 

 

 

 

 

 

 

Interest bearing demand

 

$

424,781

 

 

$

1,942

 

 

 

1.84

%

 

$

251,103

 

 

$

1,188

 

 

 

1.92

%

Money market demand

 

 

587,455

 

 

 

3,174

 

 

 

2.17

%

 

 

245,563

 

 

 

1,350

 

 

 

2.23

%

Time deposits

 

 

608,192

 

 

 

6,731

 

 

 

4.45

%

 

 

290,605

 

 

 

1,979

 

 

 

2.76

%

Total Borrowings

 

 

140,621

 

 

 

2,044

 

 

 

5.85

%

 

 

49,246

 

 

 

519

 

 

 

4.27

%

Total Interest-Bearing Liabilities

 

 

1,761,049

 

 

 

13,891

 

 

 

3.17

%

 

 

836,517

 

 

 

5,036

 

 

 

2.44

%

Non Int Bearing Deposits

 

 

632,637

 

 

 

 

 

 

 

 

 

192,135

 

 

 

 

 

 

 

Total Cost of Funds

 

$

2,393,686

 

 

$

13,891

 

 

 

2.33

%

 

$

1,028,652

 

 

$

5,036

 

 

 

1.99

%

Other Liabilities

 

 

31,359

 

 

 

 

 

 

 

 

 

17,508

 

 

 

 

 

 

 

Total Liabilities

 

$

2,425,045

 

 

 

 

 

 

 

 

$

1,046,160

 

 

 

 

 

 

 

Shareholders' Equity

 

$

266,795

 

 

 

 

 

 

 

 

$

138,025

 

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

 

$

2,691,840

 

 

 

 

 

 

 

 

$

1,184,185

 

 

 

 

 

 

 

Net Interest Income/Spread (FTE)

 

 

 

 

 

24,980

 

 

 

3.13

%

 

 

 

 

 

8,031

 

 

 

2.41

%

Tax-Equivalent Basis Adjustment

 

 

 

 

 

(96

)

 

 

 

 

 

 

 

 

(77

)

 

 

 

Net Interest Income

 

 

 

 

$

24,884

 

 

 

 

 

 

 

 

$

7,954

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

4.03

%

 

 

 

 

 

 

 

 

2.95

%

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

 

(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table

 

(3) Includes the balances of nonaccrual loans

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

March 31, 2024

 

 

December 31, 2023

 

(Dollars in thousands)

 

Avg Bal

 

 

Interest (2)

 

 

Yield/Rate

 

 

Avg Bal

 

 

Interest (2)

 

 

Yield/Rate

 

Int. Earn. Cash

 

$

82,420

 

 

$

898

 

 

 

4.38

%

 

$

63,572

 

 

$

405

 

 

 

2.53

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (1)

 

 

114,896

 

 

 

1,391

 

 

 

4.87

%

 

 

88,632

 

 

 

951

 

 

 

4.26

%

Tax-Exempt

 

 

42,984

 

 

 

457

 

 

 

4.28

%

 

 

38,269

 

 

 

362

 

 

 

3.75

%

Total Securities

 

 

157,880

 

 

 

1,848

 

 

 

4.71

%

 

 

126,901

 

 

 

1,313

 

 

 

4.10

%

Total Cash Equiv. and Investments

 

 

240,300

 

 

 

2,746

 

 

 

4.60

%

 

 

190,473

 

 

 

1,718

 

 

 

3.58

%

Total Loans (3)

 

 

2,240,714

 

 

 

36,125

 

 

 

6.48

%

 

 

1,411,129

 

 

 

21,461

 

 

 

6.03

%

Total Earning Assets

 

 

2,481,014

 

 

 

38,871

 

 

 

6.30

%

 

 

1,601,602

 

 

 

23,179

 

 

 

5.74

%

Other Assets

 

 

210,826

 

 

 

 

 

 

 

 

 

138,537

 

 

 

 

 

 

 

Total Assets

 

$

2,691,840

 

 

 

 

 

 

 

 

$

1,740,139

 

 

 

 

 

 

 

Interest bearing demand

 

$

424,781

 

 

$

1,942

 

 

 

1.84

%

 

$

328,342

 

 

$

1,746

 

 

 

2.11

%

Money market demand

 

 

587,455

 

 

 

3,174

 

 

 

2.17

%

 

 

367,821

 

 

 

2,287

 

 

 

2.47

%

Time deposits

 

 

608,192

 

 

 

6,731

 

 

 

4.45

%

 

 

348,580

 

 

 

3,412

 

 

 

3.88

%

Total Borrowings

 

 

140,621

 

 

 

2,044

 

 

 

5.85

%

 

 

113,492

 

 

 

1,342

 

 

 

4.69

%

Total Interest-Bearing Liabilities

 

 

1,761,049

 

 

 

13,891

 

 

 

3.17

%

 

 

1,158,235

 

 

 

8,787

 

 

 

3.01

%

Non Int Bearing Deposits

 

 

632,637

 

 

 

 

 

 

 

 

 

371,051

 

 

 

 

 

 

 

Total Cost of Funds

 

$

2,393,686

 

 

$

13,891

 

 

 

2.33

%

 

$

1,529,286

 

 

$

8,787

 

 

 

2.28

%

Other Liabilities

 

 

31,359

 

 

 

 

 

 

 

 

 

28,244

 

 

 

 

 

 

 

Total Liabilities

 

$

2,425,045

 

 

 

 

 

 

 

 

$

1,557,530

 

 

 

 

 

 

 

Shareholders' Equity

 

$

266,795

 

 

 

 

 

 

 

 

$

182,609

 

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

 

$

2,691,840

 

 

 

 

 

 

 

 

$

1,740,139

 

 

 

 

 

 

 

Net Interest Income/Spread (FTE)

 

 

 

 

 

24,980

 

 

 

3.13

%

 

 

 

 

 

14,392

 

 

 

2.73

%

Tax-Equivalent Basis Adjustment

 

 

 

 

 

(96

)

 

 

 

 

 

 

 

 

(76

)

 

 

 

Net Interest Income

 

 

 

 

$

24,884

 

 

 

 

 

 

 

 

$

14,316

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

4.03

%

 

 

 

 

 

 

 

 

3.55

%

(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)

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30, 2023

 

 

March 31, 2023

 

 Agriculture and farmland loans

 

$

67,359

 

 

$

65,861

 

 

$

50,584

 

 

$

50,552

 

 

$

53,301

 

 Construction loans

 

 

194,391

 

 

 

178,483

 

 

 

65,836

 

 

 

75,628

 

 

 

67,934

 

 Commercial & industrial loans

 

 

218,724

 

 

 

238,343

 

 

 

115,572

 

 

 

104,869

 

 

 

99,356

 

 Commercial real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Multifamily

 

 

190,146

 

 

 

180,788

 

 

 

111,853

 

 

 

113,254

 

 

 

111,461

 

      Owner occupied

 

 

489,467

 

 

 

501,732

 

 

 

160,929

 

 

 

154,520

 

 

 

151,407

 

      Non-owner occupied

 

 

589,731

 

 

 

580,972

 

 

 

257,344

 

 

 

254,691

 

 

 

249,638

 

 Residential real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      First liens

 

 

403,300

 

 

 

402,433

 

 

 

172,481

 

 

 

170,271

 

 

 

166,478

 

      Second liens and lines of credit

 

 

71,060

 

 

 

70,747

 

 

 

27,870

 

 

 

30,148

 

 

 

30,720

 

 Consumer and other loans

 

 

16,810

 

 

 

16,756

 

 

 

11,869

 

 

 

11,308

 

 

 

10,472

 

 Municipal loans

 

 

4,473

 

 

 

5,244

 

 

 

4,137

 

 

 

3,929

 

 

 

4,292

 

 

 

 

2,245,461

 

 

 

2,241,359

 

 

 

978,475

 

 

 

969,170

 

 

 

945,059

 

Deferred costs

 

 

356

 

 

 

174

 

 

 

437

 

 

 

363

 

 

 

312

 

Total loans receivable

 

$

2,245,817

 

 

$

2,241,533

 

 

$

978,912

 

 

$

969,533

 

 

$

945,371

 

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

 

 

 

Investments in Securities Detail (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2024

 

 

 

 

(In Thousands)

 

Amortized
Cost

 

 

Net
Unrealized Gains
(Losses)

 

 

Fair
Value

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

US Government Agency securities

 

$

12,743

 

 

$

106

 

 

$

12,849

 

 

 

 

US Government Treasury securities

 

 

4,942

 

 

 

2

 

 

 

4,944

 

 

 

 

Obligations of state and political subdivisions

 

 

49,231

 

 

 

(3,264

)

 

 

45,967

 

 

 

 

Mortgage-backed securities in government-sponsored entities

 

 

71,276

 

 

 

(3,316

)

 

 

67,960

 

 

 

 

Other securities

 

 

2,250

 

 

 

(21

)

 

 

2,229

 

 

 

 

 

 

$

140,442

 

 

$

(6,493

)

 

$

133,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

 

Net Unrealized Gains (Losses)

 

 

Fair Value

 

 

Allowance for Credit Losses

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

15,000

 

 

$

(1,455

)

 

$

13,545

 

 

$

(507

)

Structured mortgage-backed securities

 

 

21,616

 

 

 

(892

)

 

 

20,724

 

 

 

-

 

 

 

$

36,616

 

 

$

(2,347

)

 

$

34,269

 

 

$

(507

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

(In Thousands)

 

Amortized
Cost

 

 

Net
Unrealized Gains
(Losses)

 

 

Fair
Value

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

US Government Agency securities

 

$

12,711

 

 

$

274

 

 

$

12,985

 

 

 

 

US Government Treasury securities

 

 

4,925

 

 

 

17

 

 

 

4,942

 

 

 

 

Obligations of state and political subdivisions

 

 

49,640

 

 

 

(2,595

)

 

 

47,045

 

 

 

 

Mortgage-backed securities in government-sponsored entities

 

 

50,795

 

 

 

(2,614

)

 

 

48,181

 

 

 

 

Other securities

 

 

2,301

 

 

 

36

 

 

 

2,337

 

 

 

 

 

 

$

120,372

 

 

$

(4,882

)

 

$

115,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

 

Net Unrealized Gains (Losses)

 

 

Fair Value

 

 

Allowance for Credit Losses

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

15,000

 

 

$

(1,592

)

 

$

13,408

 

 

$

(512

)

Structured mortgage-backed securities

 

 

21,735

 

 

 

(907

)

 

 

20,828

 

 

 

-

 

 

 

$

36,735

 

 

$

(2,499

)

 

$

34,236

 

 

$

(512

)

 

 

 

LINKBANCORP, Inc. and Subsidiaries

 

Deposits Detail (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30, 2023

 

 

March 31, 2023

 

Demand, noninterest-bearing

 

$

653,719

 

 

$

655,953

 

 

$

210,404

 

 

$

240,729

 

 

$

204,495

 

Demand, interest-bearing

 

 

447,412

 

 

 

438,765

 

 

 

273,673

 

 

 

237,114

 

 

 

250,944

 

Money market and savings

 

 

591,982

 

 

 

577,448

 

 

 

258,334

 

 

 

254,632

 

 

 

241,858

 

Time deposits, $250 and over

 

 

147,898

 

 

 

134,324

 

 

 

51,563

 

 

 

57,194

 

 

 

51,855

 

Time deposits, other

 

 

398,365

 

 

 

372,572

 

 

 

172,798

 

 

 

185,121

 

 

 

165,310

 

Brokered deposits

 

 

146,653

 

 

 

119,411

 

 

 

75,000

 

 

 

60,052

 

 

 

70,036

 

 

 

$

2,386,029

 

 

$

2,298,473

 

 

$

1,041,772

 

 

$

1,034,842

 

 

$

984,498

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits Detail, for the Three Months Ended (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30, 2023

 

 

March 31, 2023

 

Demand, noninterest-bearing

 

$

632,637

 

 

$

371,051

 

 

$

209,054

 

 

$

209,072

 

 

$

192,135

 

Demand, interest-bearing

 

 

424,781

 

 

 

328,342

 

 

 

254,725

 

 

 

243,539

 

 

 

251,103

 

Money market and savings

 

 

587,455

 

 

 

367,821

 

 

 

254,849

 

 

 

244,355

 

 

 

245,563

 

Time deposits

 

 

518,929

 

 

 

317,747

 

 

 

236,869

 

 

 

236,059

 

 

 

212,478

 

Brokered deposits

 

 

89,263

 

 

 

30,832

 

 

 

28,705

 

 

 

63,339

 

 

 

78,127

 

 

 

$

2,253,065

 

 

$

1,415,793

 

 

$

984,202

 

 

$

996,364

 

 

$

979,406

 

 

 

 

 

 

Appendix A – Reconciliation to Non-GAAP Financial Measures

This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these non-GAAP measures in its analysis of the Company’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of non-GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company’s financial condition and results. Non-GAAP measures are not formally defined under GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to GAAP financial measures, our management believes these non-GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-GAAP measures. See the tables below for a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures.

 

Adjusted Return on Average Assets

 

 

For the Three Months Ended

 

(Dollars in thousands)

3/31/2024

 

 

12/31/2023

 

 

3/31/2023

 

Net income (loss)

$

5,726

 

 

$

(12,997

)

 

$

(1,553

)

Average assets

 

2,691,840

 

 

 

1,740,139

 

 

 

1,184,185

 

Return on average assets (annualized)

 

0.86

%

 

 

-2.96

%

 

 

-0.53

%

Net income (loss)

 

5,726

 

 

 

(12,997

)

 

 

(1,553

)

Net losses on sale of securities

 

-

 

 

 

-

 

 

 

2,370

 

Tax effect at 21%

 

-

 

 

 

-

 

 

 

(498

)

Merger & system conversion related expenses

 

56

 

 

 

9,496

 

 

 

587

 

Tax effect at 21%

 

(12

)

 

 

(1,994

)

 

 

(123

)

Non-purchase credit deteriorated provision for credit losses

 

-

 

 

 

9,694

 

 

 

-

 

Tax effect at 21%

 

-

 

 

 

(2,036

)

 

 

-

 

Adjusted Net Income (Non-GAAP)

 

5,770

 

 

 

2,163

 

 

 

783

 

Average assets

 

2,691,840

 

 

 

1,740,139

 

 

 

1,184,185

 

Adjusted return on average assets (annualized)
(Non-GAAP)

 

0.86

%

 

 

0.49

%

 

 

0.27

%

 

Adjusted Return on Average Shareholders' Equity

 

 

For the Three Months Ended

 

(Dollars in thousands)

3/31/2024

 

 

12/31/2023

 

 

3/31/2023

 

Net income (loss)

$

5,726

 

 

$

(12,997

)

 

$

(1,553

)

Average shareholders' equity

 

266,795

 

 

 

182,609

 

 

 

138,025

 

Return on average shareholders' equity (annualized)

 

8.63

%

 

 

-28.24

%

 

 

-4.56

%

Net income (loss)

 

5,726

 

 

 

(12,997

)

 

 

(1,553

)

Net losses (gains) on sale of securities

 

-

 

 

 

-

 

 

 

2,370

 

Tax effect at 21%

 

-

 

 

 

-

 

 

 

(498

)

Merger & system conversion related expenses

 

56

 

 

 

9,496

 

 

 

587

 

Tax effect at 21%

 

(12

)

 

 

(1,994

)

 

 

(123

)

Non-purchase credit deteriorated provision for credit losses

 

-

 

 

 

9,694

 

 

 

-

 

Tax effect at 21%

 

-

 

 

 

(2,036

)

 

 

-

 

Adjusted Net Income (Non-GAAP)

 

5,770

 

 

 

2,163

 

 

 

783

 

Average shareholders' equity

 

266,795

 

 

 

182,609

 

 

 

138,025

 

Adjusted return on average shareholders' equity (annualized)
(Non-GAAP)

 

8.70

%

 

 

4.70

%

 

 

2.30

%

 

 

 

Adjusted Efficiency Ratio

 

 

For the Three Months Ended

 

(Dollars in thousands)

3/31/2024

 

 

12/31/2023

 

 

3/31/2023

 

GAAP-based efficiency ratio

 

72.33

%

 

 

143.86

%

 

 

126.82

%

Net interest income

$

24,884

 

 

$

14,316

 

 

$

7,954

 

Noninterest income

 

1,729

 

 

 

1,175

 

 

 

(1,853

)

Less: net gains (losses) on sales of securities

 

-

 

 

 

-

 

 

 

(2,370

)

Adjusted revenue (Non-GAAP)

 

26,613

 

 

 

15,491

 

 

 

8,471

 

Total noninterest expense

 

19,250

 

 

 

22,285

 

 

 

7,737

 

Less: Merger & system conversion related expenses

 

56

 

 

 

9,496

 

 

 

587

 

Adjusted non-interest expense

 

19,194

 

 

 

12,789

 

 

 

7,150

 

Efficiency ratio, as adjusted (Non-GAAP)

 

72.12

%

 

 

82.56

%

 

 

84.41

%

 

Tangible Common Equity and Tangible Book Value

 

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

Tangible Common Equity

 

(Dollars in thousands, except for share data)

 

Total shareholders’ equity

 

$

268,243

 

 

$

265,796

 

 

$

141,351

 

 

$

142,452

 

 

$

141,581

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(56,968

)

 

 

(56,968

)

 

 

(35,842

)

 

 

(35,842

)

 

 

(35,842

)

Other intangible assets

 

 

(24,526

)

 

 

(25,733

)

 

 

(873

)

 

 

(932

)

 

 

(991

)

Tangible common equity (Non-GAAP)

 

$

186,749

 

 

$

183,095

 

 

$

104,636

 

 

$

105,678

 

 

$

104,748

 

Common shares outstanding

 

 

37,348,151

 

 

 

37,340,700

 

 

 

16,235,871

 

 

 

16,228,440

 

 

 

16,221,692

 

Book value per common share

 

$

7.18

 

 

$

7.12

 

 

$

8.71

 

 

$

8.78

 

 

$

8.73

 

Tangible book value per common share
(Non-GAAP)

 

$

5.00

 

 

$

4.90

 

 

$

6.44

 

 

$

6.51

 

 

$

6.46

 

Tangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,784,264

 

 

$

2,669,325

 

 

$

1,255,695

 

 

$

1,308,472

 

 

$

1,213,958

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(56,968

)

 

 

(56,968

)

 

 

(35,842

)

 

 

(35,842

)

 

 

(35,842

)

Other intangible assets

 

 

(24,526

)

 

 

(25,733

)

 

 

(873

)

 

 

(932

)

 

 

(991

)

Tangible assets (Non-GAAP)

 

$

2,702,770

 

 

$

2,586,624

 

 

$

1,218,980

 

 

$

1,271,698

 

 

$

1,177,125

 

Tangible common equity to tangible assets (Non-GAAP)

 

 

6.91

%

 

 

7.08

%

 

 

8.58

%

 

 

8.31

%

 

 

8.90

%

 

Adjusted Earnings Per Share

 

 

For the Three Months Ended

 

(Dollars in thousands, except per share data)

3/31/2024

 

 

12/31/2023

 

 

3/31/2023

 

GAAP-Based Earnings (Loss) Per Share, Basic

$

0.15

 

 

$

(0.56

)

 

$

(0.10

)

GAAP-Based Earnings (Loss) Per Share, Diluted

$

0.15

 

 

$

(0.56

)

 

$

(0.10

)

Net Income (Loss)

$

5,726

 

 

$

(12,997

)

 

$

(1,553

)

Net losses on sale of securities

 

-

 

 

 

-

 

 

 

2,370

 

Tax effect at 21%

 

-

 

 

 

-

 

 

 

(498

)

Merger & system conversion related expenses

 

56

 

 

 

9,496

 

 

 

587

 

 Tax effect at 21%

 

(12

)

 

 

(1,994

)

 

 

(123

)

Non-purchase credit deteriorated provision for credit losses

 

-

 

 

 

9,694

 

 

 

-

 

 Tax effect at 21%

 

-

 

 

 

(2,036

)

 

 

-

 

Adjusted Net Income (Non-GAAP)

 

5,770

 

 

 

2,163

 

 

 

783

 

Adjusted Earnings per Share, Basic (Non-GAAP)

$

0.16

 

 

$

0.09

 

 

$

0.05

 

Adjusted Earnings per Share, Diluted (Non-GAAP)

$

0.16

 

 

$

0.09

 

 

$

0.05

 

 

 

 

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)

 

 

For the Three Months Ended

 

(Dollars in thousands, except per share data)

3/31/2024

 

 

12/31/2023

 

 

3/31/2023

 

Net Income (Loss) - GAAP

$

5,726

 

 

$

(12,997

)

 

$

(1,553

)

Net losses on sale of securities

 

-

 

 

 

-

 

 

 

2,370

 

Tax effect at 21%

 

-

 

 

 

-

 

 

 

(498

)

Merger & system conversion related expenses

 

56

 

 

 

9,496

 

 

 

587

 

 Tax effect at 21%

 

(12

)

 

 

(1,994

)

 

 

(123

)

Adjusted Net Income (Loss) (Non-GAAP)

 

5,770

 

 

 

(5,495

)

 

 

783

 

Income tax expense (benefit)

 

1,597

 

 

 

(3,641

)

 

 

(376

)

 Provision for credit losses

 

40

 

 

 

9,844

 

 

 

293

 

Tax effect included in Adjusted Net Income

 

12

 

 

 

1,994

 

 

 

621

 

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)

$

7,419

 

 

$

2,702

 

 

$

1,321