1. LINKBANCORP reported Q2 2025 net income of $7.4 million. 2. Total loans increased by $82.7 million, 14.58% annualized growth. 3. Non-performing assets declined to $21.9 million, improving credit quality. 4. Quarterly cash dividend declared at $0.075 per share, payable September 15. 5. Adjusted efficiency ratio improved to 64.73%, indicating better cost management.
Improved loan growth and reduced non-performing assets strengthen LNKB's financial position. Historical trends show such metrics often correlate with rising stock prices.
The growth in loans and low non-performing assets indicate strong operational health, highly relevant for potential stock investors.
The immediate positive metrics in the report are likely to attract investor interest shortly after publication.
LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank"), reported net income of $7.4 million, or $0.20 per diluted share, for the quarter ended June 30, 2025, compared to net income of $15.3 million, or $0.41 per diluted share, for the quarter ended March 31, 2025. Excluding the sale of branches, merger and restructuring related income and expenses, adjusted earnings were $7.4 million, or $0.20 per diluted share for both the first and second quarter of 2025.
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 September 15, 2025 to shareholders of record on August 29, 2025.
We are pleased to report another quarter of strong core earnings, combined with exceptional loan and deposit growth throughout our entire footprint," said Andrew Samuel, Chief Executive Officer of LINKBANCORP. "We remain focused on improving operating efficiency and expanding noninterest income to support our core business and enabling us to deliver sustainable long-term value to our shareholders.
Net interest income before the provision for credit losses for the second quarter of 2025 was $24.9 million compared to $25.8 million in the first quarter of 2025 and $24.5 million for the second quarter of 2024. Net interest margin was 3.80% for the second quarter of 2025 compared to 3.94% for the first quarter of 2025. Net interest income was impacted by a linked quarter decline in purchase accounting accretion, together with a decrease in the average balances of loans and deposits due to the March 31, 2025 completion of the Branch Sale. Interest income from purchase accounting accretion during the current quarter was approximately $922 thousand less than that recognized in the first quarter of 2025. Cost of funds increased to 2.31% for the second quarter of 2025, compared to 2.29% for the first quarter of 2025, reflecting the lower cost of deposits included in the Branch Sale as well as continued competition for deposits in the Bank's markets.
Noninterest income decreased quarter-over-quarter to $2.9 million for the second quarter of 2025 compared to $13.3 million for the first quarter of 2025 due to the $11.1 million pre-tax gain from the Branch Sale in the first quarter. Excluding the gain on sale of the New Jersey branches, noninterest income grew by $769 thousand quarter-over-quarter, including increases in swap fee income and interchange income. Year-over-year, noninterest income increased $1.1 million from $1.9 million for the second quarter of 2024.
Noninterest expense for the second quarter of 2025 was $18.1 million compared to $19.7 million for the first quarter of 2025 and $18.9 million for the second quarter of 2024. Excluding non-core operating costs totaling $16 thousand in the second quarter of 2025, $912 thousand in the first quarter of 2025 and $631 thousand in the second quarter of 2024, adjusted noninterest expense decreased $697 thousand from $18.7 million for the first quarter of 2025 to $18.0 million for the second quarter of 2025 while decreasing $220 thousand year-over-year from $18.3 million for the second quarter of 2024. Adjusted non-interest expense for the first quarter of 2025 excludes expenses related to the reduction of the size of the Board of Directors included in other noninterest expense, as well as bonus accruals related to the completion of the Branch Sale included in salaries and employee benefits expense, and other merger and restructuring costs.
Income tax expense was $2.1 million for the second quarter of 2025, reflecting an effective tax rate of 22.0% compared to $3.9 million for the first quarter of 2025, reflecting an effective tax rate of 20.1% and $1.6 million for the second quarter of 2024, reflecting an effective tax rate of 22.0%, respectively. The tax rate increased quarter-over-quarter due to a state income tax apportionment adjustment in the first quarter of 2025.
Total assets were $2.89 billion at June 30, 2025 compared to $2.86 billion at March 31, 2025 and $2.88 billion at December 31, 2024. Deposits and net loans as of June 30, 2025 totaled $2.46 billion and $2.33 billion, respectively, compared to deposits and net loans of $2.43 billion and $2.25 billion, respectively at March 31, 2025 and $2.36 billion and $2.23 billion, respectively, at December 31, 2024. Deposits and net loans exclude recorded balances held for sale in the Branch Sale of $93.6 million and $91.8 million, respectively, at December 31, 2024, which are reflected within liabilities held for sale and assets held for sale.
Total loans at June 30, 2025 were $2.36 billion, compared to $2.27 billion at March 31, 2025, representing an increase of $82.7 million. Year-to-date, total loans have increased $107.0 million from December 31, 2024, excluding the impact of the Branch Sale, or 9.19% annualized. Total commercial loan commitments originated in the second quarter of 2025 were $154.6 million with funded balances of $137.1 million. The average commercial loan commitment originated during the second quarter of 2025 totaled approximately $985 thousand with an average outstanding funded balance of $873 thousand.
Total deposits at June 30, 2025 were $2.46 billion compared to $2.43 billion at March 31, 2025, representing an increase of $22.7 million. Year-to-date, total deposits have increased $89.4 million from December 31, 2024, excluding the impact of the Branch Sale, or 7.34% annualized. Noninterest bearing deposits totaled $646.7 million at June 30, 2025, generally flat from March 31, 2025. Brokered deposits decreased $28.6 million from $103.6 million at March 31, 2025 to $75.0 million at June 30, 2025. Excluding the $28.6 million change in brokered deposits and the impact from the Branch Sale, deposits increased $118.0 million year-to-date representing an annualized growth rate of 10.1%.
The Company continues to maintain strong on-balance sheet liquidity, as cash and cash equivalents were $155.1 million at June 30, 2025 compared to $220.2 million at March 31, 2025 and $166.1 million at December 31, 2024.
Shareholders' equity increased to $298.0 million at June 30, 2025 from $294.1 million at March 31, 2025 primarily as a result of a $4.6 million increase in retained earnings. Book value per share increased to $7.96 at June 30, 2025 compared to $7.87 at March 31, 2025. Tangible book value per share increased to $5.92 at June 30, 2025 compared to $5.80 at March 31, 2025 and $5.07 at June 30, 2024, representing 17% growth year over year.
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 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.
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, tariffs 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.
Contact: Nick West, Director, Corporate Development, 717.678.7935, [email protected]
SOURCE LINKBANCORP, Inc.