Merger and Acquisition (Tables)

3 Months Ended

Mar. 31, 2024

Business Combinations [Abstract]

Allocation of Purchase Price for Merger

The following condensed statement reflects the amounts acquired at the acquisition date for each major class of assets acquired and liabilities assumed.

Total Consideration in the Merger				$	135,779
Calculated Fair Value of Assets Acquired
	Cash and cash equivalents	$	34,586
	Federal Funds Sold		7,159
	Securities available for sale		123,440
	Loans, net of ACL		1,240,334
	Premises and equipment		15,504
	Right-of-use asset		6,042
	Core deposit intangibles		25,344
	Deferred taxes		14,466
	Investments in restricted bank stock		6,763
	Accrued interest receivable and other assets		29,884
Total Assets Acquired			1,503,522
Calculated Fair Value of Liabilities Assumed
	Deposits		1,299,867
	Long term borrowings		55,292
	Subordinated debt		21,078
	Operating lease liabilities		6,908
	Other liabilities		5,724
Total Liabilities Assumed			1,388,869
Net Assets Acquired					114,653
Goodwill From the Merger				$	21,126

Summary of Merger

The following table summarizes the Partners Merger as of November 30, 2023:

Consideration paid
(dollars in thousands)
Common stock consideration:
Common shares of Partners Bancorp					17,985,577
Exchange ratio					1.15
LINKBANCORP, Inc. common stock issued					20,683,158
LINKBANCORP, Inc. stock price on acquisition date				$	6.47
Purchase price assigned to Partners Bancorp common shares					133,820
Restricted stock consideration
Partners Bancorp restricted stock shares					297,726
LINKBANCORP, Inc. stock price on acquisition date				$	6.47
Total purchase price assigned to Partners Bancorp restricted shares					1,926
Cash paid in exchange for Partners Bancorp stock options and fractional shares					33
Total consideration				$	135,779
Net Assets Acquired
Partners Bancorp shareholders’ equity	$	143,817
Partners Bancorp goodwill and intangibles		(10,699	)
Fair Value Adjustments:
Securities available for sale		(921	)
Loans
Interest rate		(53,681	)
General credit		(11,607	)
Credit adjustment for loans acquired with deteriorated credit quality		(6,016	)
Remove existing deferred loan fees, net at acquisition		2,462
Remove the allowance for credit losses present at acquisition		16,124
Premises and equipment		3,045
Core deposit intangible		25,344
Other assets		4,036
Liabilities
Time deposits		3,595
Subordinated debt		1,179
Other liabilities		(2,025	)
					114,653
Goodwill From the Merger				$	21,126

Summary of Proforma Information

The pro forma amounts for the three months ended March 31, 2023 do not reflect the anticipated cost savings that had not yet been realized.

	Three Months Ended March 31,
(Dollars in thousands)	2023
Net interest income	$	25,902
Non-interest income		(600	)
Net income (loss)		4,695
Basic earnings (loss) per common share	$	0.13
Diluted earnings (loss) per common share	$	0.13