LINKBANCORP, Inc. Announces Record Fourth Quarter 2024 and Full Year 2024 Financial Results and Declares Dividend

1. LINKBANCORP reported record net income of $7.6 million in Q4 2024. 2. Adjusted earnings per share rose to $0.21 compared to $0.19 in Q3 2024. 3. Quarterly dividend declared at $0.075 per share, payable March 14, 2025. 4. Total assets remained stable at $2.88 billion, with loan growth of $29.4 million. 5. Non-performing assets were stable at 0.60% of total assets despite economic pressures.

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NASDAQ: LNKB

HARRISBURG, Pa., Jan. 27, 2025 /PRNewswire/ -- LINKBANCORP, Inc. Reports Record Net Income

LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank"), reported record net income of $7.6 million, or $0.20 per diluted share, for the quarter ended December 31, 2024, compared to net income of $7.1 million, or $0.19 per diluted share, for the quarter ended September 30, 2024.

Excluding expenses associated with the pending sale of its New Jersey branches and branch consolidations, adjusted earnings were $7.6 million, or $0.21 per diluted share for the fourth quarter of 2024, compared with $7.2 million, or $0.19 per diluted share for the third quarter of 2024. Net income for the year ended December 31, 2024 was $26.2 million, or $0.71 per diluted share. Excluding merger and restructuring related expenses, adjusted net income was $26.9 million, or $0.73 per diluted share for the year ended December 31, 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 March 14, 2025 to shareholders of record on February 28, 2025.

Fourth Quarter 2024 Highlights

Total loans and total deposits include balances held for sale in the Branch Sale of $91.8 million and $93.6 million, respectively, at December 31, 2024. These balances were $102.3 million and $94.0 million respectively at September 30, 2024. Average deposits include deposits held for sale in the Branch Sale.

As a result of the Branch Sale announcement, associated loans and deposits were reclassified as held for sale, impacting the Company's allowance for credit losses and purchase accounting amortization related to the loans held for sale.

"We are very pleased to announce record earnings for both the fourth quarter and the full year 2024, after a full year of implementing and executing on strategic initiatives to improve our performance. Our teams have continued to focus on reducing costs, generating additional fee income and growing interest income with solid growth in quality loans and core deposits throughout the year," said Andrew Samuel, Chief Executive Officer of LINKBANCORP.

Income Statement

Net interest income before the provision for credit losses for the fourth quarter of 2024 was $25.5 million compared to $25.0 million in the third quarter of 2024. Net interest margin expanded to 3.85% for the fourth quarter of 2024 compared to 3.82% for the third quarter of 2024. The improvement in net interest margin was driven by a 10 basis points decrease in cost of funds to 2.32% for the fourth quarter of 2024 compared to 2.42% for the third quarter of 2024, while the average yield on interest-earning assets decreased seven basis points to 6.09% for the fourth quarter of 2024 from 6.16% for the third quarter of 2024 due to the cut in the target federal funds rate.

Noninterest income decreased slightly quarter-over-quarter to $2.6 million for the fourth quarter of 2024 compared to $2.7 million for the third quarter of 2024, as decreases in swap fee income and gain on sale of loans were partially offset by continued growth in service charges on deposit accounts.

Noninterest expense for the fourth quarter of 2024 was $18.3 million compared to $18.5 million for the third quarter of 2024.

Balance Sheet

Total assets were $2.88 billion at December 31, 2024 compared to $2.88 billion at September 30, 2024 and $2.67 billion at December 31, 2023. Deposits and net loans as of December 31, 2024 totaled $2.36 billion and $2.23 billion, respectively.

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 26 client solutions centers and www.linkbank.com. LINKBANCORP, Inc. common stock is traded on the Nasdaq Capital Market under the symbol LNKB.

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.