1. LINKBANCORP reported record Q1 2025 net income of $15.3 million. 2. The quarterly dividend of $0.075 per share will be distributed in June 2025. 3. Adjusted earnings came in at $7.4 million, slightly down from Q4 2024. 4. Net interest margin expanded to 3.94%, reflecting improved earnings from interest-earning assets. 5. Non-performing assets increased to $26 million, or 0.91% of total assets.
The increase in net income and improved dividend prospects are generally favorable signals for shareholders, likely to bolster investor sentiment. Historically, such performance metrics correlate with positive stock price movements in financial institutions.
The reported earnings and dividend changes are likely to attract investor interest, leading to potential price movement.
The immediate boost from the earnings report and dividend announcement can lead to quick market reactions; however, longer-term impacts depend on sustained performance and asset quality.
LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank"), reported record net income of $15.3 million, or $0.41 per diluted share, for the quarter ended March 31, 2025, compared to net income of $7.6 million, or $0.20 per diluted share, for the quarter ended December 31, 2024. Excluding income and expenses associated with the sale of the Bank's New Jersey operations and expenses related to the reduction of the size of the Board of Directors, adjusted earnings were $7.4 million, or $0.20 per diluted share for the first quarter of 2025, compared with $7.6 million, or $0.21 per diluted share for the fourth quarter of 2024.
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 June 16, 2025 to shareholders of record on May 30, 2025.
"We are very pleased to present consistent core earnings in addition to the successful sale of our New Jersey operations," said Andrew Samuel, Chief Executive Officer of LINKBANCORP. "Strong core deposit growth and the gain from the New Jersey sale has well positioned our teams to support our loan pipeline headed into the second quarter. Our strengthened liquidity and capital positions provide the foundation for continued growth, with an emphasis on creating long-term shareholder value as we positively impact our local communities."
Net interest income before the provision for credit losses for the first quarter of 2025 was $25.8 million compared to $25.5 million in the fourth quarter of 2024 and $24.9 million for the first quarter of 2024. Net interest margin expanded to 3.94% for the first quarter of 2025 compared to 3.85% for the fourth quarter of 2024. The improvement in net interest margin was driven by a 5 basis points increase in average yield on interest-earning assets from 6.09% for the fourth quarter of 2024 compared to 6.14% for the first quarter of 2025. This increase included an increase in purchase accounting accretion while core loan yields increased marginally quarter-over-quarter.
Total assets were $2.86 billion at March 31, 2025 compared to $2.88 billion at December 31, 2024 and $2.79 billion at March 31, 2024. Total loans at March 31, 2025 were $2.27 billion, compared to $2.35 billion at December 31, 2024. The Company continues to maintain strong on-balance sheet liquidity, as cash and cash equivalents increased 32.6% to $220.2 million at March 31, 2025 compared to $166.1 million at December 31, 2024.
The Company recorded a $228 thousand provision for credit losses during the first quarter of 2025, after recording a $132 thousand provision for credit losses in the fourth quarter of 2024. As of March 31, 2025, the Company's non-performing assets were $26.0 million, representing 0.91% of total assets.
The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of March 31, 2025.
LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, LINKBANK, is a Pennsylvania state-chartered bank serving individuals, families, nonprofits, and business clients throughout Pennsylvania, Maryland, Delaware, and Virginia, through 24 client solutions centers.
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.
Contact: Nick West Director, Corporate Development 717.678.7935 info@linkbancorp.com
SOURCE LINKBANCORP, Inc.