LINKBANCORP Inc.
10/28/2024 | Press release | Distributed by Public on 10/28/2024 14:40
LINKBANCORP, Inc. Announces Record Third Quarter Net Income of $7.1 Million Form 8 K
LINKBANCORP, Inc. Announces Record Third Quarter Net Income of $7.1 Million
October 28, 2024 - HARRISBURG, PA - LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank") reported record net income of $7.1 million, or $0.19 per diluted share, for the quarter ended September 30, 2024, demonstrating continued growth compared to net income of $5.8 million, or $0.16 per diluted share, for the linked quarter ended June 30, 2024. Excluding expenses associated with the sale of its New Jersey branches and branch consolidations, adjusted earnings were $7.2 million1, or $0.191 per diluted share for the third quarter of 2024, compared with $6.3 million1, or $0.171 per diluted share for the second quarter of 2024.
Third Quarter 2024 Highlights
•
Annualized return on average assets was 1.00% for the third quarter of 2024, compared to 0.84% for the the second quarter of 2024. Adjusted return on average assets was 1.02%1 for the third quarter of 2024, compared to 0.91%1 for the second quarter of 2024.
•
Total deposits2increased $9.3 million from $2.46 billion at June 30, 2024 to $2.47 billion at September 30, 2024, as strong growth in demand deposit accounts of $54.5 million and retail time deposits of $21.4 million exceeded a $69.4 million decrease in brokered deposits. Excluding loans held for sale, total loans increased $22.7 million to $2.22 billion at September 30, 2024, compared to $2.19 billion at
1See Appendix A - Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2Total loans and total deposits include balances held for sale in the Branch Sale of $102.3 million and $94.0 million, respectively, at September 30, 2024. These balances were $116.2 million and $96.8 million, respectively, at June 30, 2024.
Page 2 of 18
June 30, 2024. Total loans2 increased $8.8 million from $2.31 billion at June 30, 2024 to $2.32 billion at September 30, 2024.
•
Noninterest income increased $822 thousand quarter-over-quarter to $2.7 million for the third quarter of 2024 compared to $1.9 million for the second quarter of 2024.
•
Noninterest expense decreased $448 thousand quarter over quarter to $18.5 million in the third quarter of 2024, as the Company continued to execute on post-merger efficiency strategies.
•
Net interest income before provision for credit losses was $25.0 million for the third quarter of 2024 compared to $24.5 million in the second quarter of 2024. Net interest margin was 3.82% for the third quarter of 2024 compared to 3.83% for the second quarter of 2024.
•
Non-performing assets were $17.4 million, representing 0.60% of total assets at September 30, 2024, compared to $10.6 million, representing 0.37% of total assets at June 30, 2024. Loans 30-89 days past due at September 30, 2024 were $2.7 million, representing 0.12% of total loans, an improvement compared to $5.2 million or 0.24% of total loans at June 30, 2024. The allowance for credit losses-loans was 1.20% of total loans held for investment at September 30, 2024, unchanged from June 30, 2024.
•
On May 9, 2024, the Company announced that LINKBANK had entered into a definitive purchase and assumption agreement for the sale of the Bank's banking operations and three branches in New Jersey, including related loans and deposits (the "Branch Sale"). The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2024 or the first quarter of 2025.
1See Appendix A - Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Page 3 of 18
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 pleased to announce another quarter of record earnings for the third quarter of 2024, representing an annualized 1.00% return on average assets for the quarter and demonstrating solid progress toward achieving our target profitability metrics. This is a result of prioritizing high quality loan and strong core deposit growth, with an emphasis on achieving cost efficiencies from the merger and branch consolidations, while also executing on non-interest income initiatives," said Andrew Samuel, Chief Executive Officer of LINKBANCORP. "As we look to close 2024 with a strong fourth quarter, our teams continue to implement strategies to reduce funding costs and operational expenses and generate additional revenue to support further earnings growth."
Income Statement
Net interest income before the provision for credit losses for the third quarter of 2024 was $25.0 million compared to $24.5 million in the second quarter of 2024. Net interest margin was 3.82% for the third quarter of 2024 compared to 3.83% for the second quarter of 2024. Cost of funds decreased to 2.42% for the third quarter of 2024 compared to 2.43% for the second quarter of 2024, while the average yield on interest earning assets decreased from 6.19% for the second quarter of 2024 to 6.16% for the third quarter of 2024 due to the cut in the target federal funds rate.
Noninterest income increased $822 thousand quarter-over-quarter to $2.7 million for the third quarter of 2024 compared to $1.9 million for the second quarter of 2024, and included strong growth in service charges on deposit accounts and gain on sale of loans, as well as increases in merchant fees and swap fee income.
Noninterest expense for the third quarter of 2024 was $18.5 million compared to $18.9 million for the second quarter of 2024. Excluding one-time costs associated with the Branch Sale and branch consolidations of $171 thousand in the third quarter of 2024 and $631 thousand in the second quarter of 2024, adjusted noninterest expense was generally flat at $18.3 million for the second and third quarter of 20241 , as decreases in personnel and occupancy costs were offset by increases in FDIC deposit insurance and fraud-related operating losses.
1See Appendix A - Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Page 4 of 18
Income tax expense was $2.0 million for the third quarter of 2024, reflecting an effective tax rate of 22.2%.
Balance Sheet
Total assets were $2.88 billion at September 30, 2024 compared to $2.86 billion at June 30, 2024 and $1.26 billion at September 30, 2023. Deposits and net loans as of September 30, 2024 totaled $2.37 billion and $2.19 billion, respectively, compared to deposits and net loans of $2.36 billion and $2.17 billion, respectively, at June 30, 2024 and $1.04 billion and $969.0 million, respectively, at September 30, 2023. Deposits and net loans exclude balances held for sale in the Branch Sale of $94.0 million and $102.3 million, respectively, at September 30, 2024, which are reflected in liabilities held for sale and assets held for sale. These balances were $96.8 million and $116.2 million respectively, at June 30, 2024.
Including loans held for sale, total loans increased $8.8 million, from $2.31 billion at June 30, 2024 to $2.32 billion at September 30, 2024. Total commercial loan commitments for the third quarter of 2024 were $111.0 million with funded balances of $74.8 million. The average commercial loan commitment originated during the third quarter of 2024 totaled approximately $810 thousand with an average outstanding funded balance of $546 thousand.
Including deposits held for sale, total deposits at September 30, 2024 totaled $2.47 billion, an increase of $9.3 million from $2.46 billion at June 30, 2024. This increase included growth of $54.5 million in demand deposit accounts and $21.4 million in retail time deposits, offset by a decrease in brokered deposits of $69.4 million quarter over quarter.
The Company maintains strong on-balance sheet liquidity, as cash and cash equivalents increased to $191.2 million at September 30, 2024 compared to $181.7 million at June 30, 2024.
Shareholders' equity increased from $271.4 million at June 30, 2024 to $277.4 million at September 30, 2024 primarily as a result of a $4.3 million increase in retained earnings. Book value per share increased to $7.42 at September 30, 2024 compared to $7.27 at June 30, 2024. Tangible book value per share increased to $5.26 at September 30, 2024 compared to $5.07 at June 30, 20241.
1See Appendix A - Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Page 5 of 18
Asset Quality
The Company recorded a $84 thousand provision for credit losses during the third quarter of 2024, after recording no provision for credit losses in the second quarter of 2024.
As of September 30, 2024, the Company's non-performing assets were $17.4 million, representing 0.60% of total assets, compared to $10.6 million, representing 0.37% of total assets at June 30, 2024. The increase related primarily to a single real estate secured loan acquired in the merger with Partners Bancorp (the "Partners Merger") with an outstanding principal balance of approximately $5.5 million at September 30, 2024. Based on a recent appraisal and application of the Company's reserve methodology, a specific reserve was not needed for this loan as of September 30, 2024.
Loans 30-89 days past due at September 30, 2024 were $2.7 million, representing 0.12% of total loans, an improvement compared to $5.2 million or 0.24% of total loans at June 30, 2024.
The allowance for credit losses-loans was $26.5 million, or 1.20% of total loans held for investment at September 30, 2024, compared to $26.3 million, or 1.20% of total loans held for investment at June 30, 2024. In addition to the recorded provision, the increased allowance resulted from a reallocation of a portion of the allowance for credit losses-unfunded commitments to the allowance for credit losses-loans. The allowance for credit losses-loans to nonperforming assets was 152.73% at September 30, 2024, compared to 248.26% at June 30, 2024.
Capital
The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of September 30, 2024. The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 11.44% and 10.62% respectively, at September 30, 2024, compared to 11.09% and 10.30%, respectively, at June 30, 2024 and 12.92% and 12.37%, respectively, at September 30, 2023. The Company's ratio of Tangible Common Equity to Tangible Assets was 7.02%1 at September 30, 2024.
1See Appendix A - Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Page 6 of 18
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". For further company information, visit ir.linkbancorp.com.
1See Appendix A - Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Page 7 of 18
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 Partners Merger; the timing and receipt of regulatory approvals to complete the Branch Sale; 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.
Given that the Company's merger with Partners Bancorp was completed on November 30, 2023, reported results prior to the fourth quarter of 2023 included in the following tables reflect legacy LINKBANCORP results only.
1See Appendix A - Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Page 8 of 18
|
LINKBANCORP, Inc. and Subsidiaries |
||||||||||
|
Consolidated Balance Sheet (Unaudited) |
||||||||||
|
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||
|
(In Thousands, except share and per share data) |
||||||||||
|
ASSETS |
||||||||||
|
Noninterest-bearing cash equivalents |
$ |
15,295 |
$ |
14,516 |
$ |
13,552 |
$ |
13,089 |
$ |
5,447 |
|
Interest-bearing deposits with other institutions |
175,937 |
167,141 |
158,731 |
67,101 |
62,532 |
|||||
|
Cash and cash equivalents |
191,232 |
181,657 |
172,283 |
80,190 |
67,979 |
|||||
|
Certificates of deposit with other banks |
- |
- |
- |
- |
249 |
|||||
|
Securities available for sale, at fair value |
149,315 |
140,121 |
133,949 |
115,490 |
78,779 |
|||||
|
Securities held to maturity, net of allowance for credit losses |
34,155 |
35,343 |
36,109 |
36,223 |
37,266 |
|||||
|
Loans receivable, gross |
2,215,868 |
2,193,197 |
2,129,919 |
2,128,284 |
978,912 |
|||||
|
Allowance for credit losses - loans |
(26,542 |
) |
(26,288 |
) |
(23,842 |
) |
(23,767 |
) |
(9,964 |
) |
|
Loans receivable, net |
2,189,326 |
2,166,909 |
2,106,077 |
2,104,517 |
968,948 |
|||||
|
Investments in restricted bank stock |
4,904 |
4,928 |
4,286 |
3,965 |
3,107 |
|||||
|
Premises and equipment, net |
17,623 |
18,364 |
20,102 |
20,130 |
6,414 |
|||||
|
Right-of-Use Asset - premises |
14,150 |
13,970 |
14,577 |
15,497 |
9,727 |
|||||
|
Bank-owned life insurance |
51,646 |
49,616 |
49,230 |
48,847 |
24,732 |
|||||
|
Goodwill and other intangible assets |
80,924 |
82,129 |
81,494 |
82,701 |
36,715 |
|||||
|
Deferred tax asset |
21,662 |
22,024 |
22,717 |
24,153 |
6,880 |
|||||
|
Assets held for sale |
104,660 |
118,362 |
118,115 |
115,499 |
- |
|||||
|
Accrued interest receivable and other assets |
20,344 |
25,170 |
26,730 |
22,113 |
14,899 |
|||||
|
TOTAL ASSETS |
$ |
2,879,941 |
$ |
2,858,593 |
$ |
2,785,669 |
$ |
2,669,325 |
$ |
1,255,695 |
|
LIABILITIES |
||||||||||
|
Deposits: |
||||||||||
|
Demand, noninterest bearing |
$ |
658,473 |
$ |
661,292 |
$ |
618,277 |
$ |
624,780 |
$ |
210,404 |
|
Interest bearing |
1,714,179 |
1,699,220 |
1,662,124 |
1,574,019 |
831,368 |
|||||
|
Total deposits |
2,372,652 |
2,360,512 |
2,280,401 |
2,198,799 |
1,041,772 |
|||||
|
Long-term borrowings |
40,000 |
40,000 |
40,000 |
- |
- |
|||||
|
Short-term borrowings |
- |
- |
- |
10,000 |
15,000 |
|||||
|
Note payable |
572 |
578 |
584 |
590 |
- |
|||||
|
Subordinated debt |
61,843 |
61,706 |
61,573 |
61,444 |
40,354 |
|||||
|
Lease liabilities |
14,911 |
14,746 |
15,357 |
16,361 |
9,728 |
|||||
|
Liabilities held for sale |
94,228 |
96,916 |
105,716 |
99,777 |
- |
|||||
|
Accrued interest payable and other liabilities |
18,382 |
12,726 |
13,795 |
16,558 |
7,490 |
|||||
|
TOTAL LIABILITIES |
2,602,588 |
2,587,184 |
2,517,426 |
2,403,529 |
1,114,344 |
|||||
|
SHAREHOLDERS' EQUITY |
||||||||||
|
Preferred stock |
- |
- |
- |
- |
- |
|||||
|
Common stock |
370 |
370 |
369 |
369 |
162 |
|||||
|
Surplus |
264,059 |
263,795 |
263,577 |
263,310 |
127,856 |
|||||
|
Retained earnings |
15,147 |
10,826 |
7,724 |
4,843 |
19,062 |
|||||
|
Accumulated other comprehensive loss |
(2,223 |
) |
(3,582 |
) |
(3,427 |
) |
(3,209 |
) |
(5,729 |
) |
|
Total equity attributable to parent |
277,353 |
271,409 |
268,243 |
265,313 |
141,351 |
|||||
|
Noncontrolling interest in consolidated subsidiary |
- |
- |
- |
483 |
- |
|||||
|
TOTAL SHAREHOLDERS' EQUITY |
277,353 |
271,409 |
268,243 |
265,796 |
141,351 |
|||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
2,879,941 |
$ |
2,858,593 |
$ |
2,785,669 |
$ |
2,669,325 |
$ |
1,255,695 |
|
Common shares outstanding |
37,361,560 |
37,356,278 |
37,348,151 |
37,340,700 |
16,235,871 |
Page 9 of 18
|
LINKBANCORP, Inc. and Subsidiaries |
||||||||||
|
Consolidated Statements of Operations (Unaudited) |
||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||
|
9/30/2024 |
6/30/2024 |
9/30/2023 |
9/30/2024 |
9/30/2023 |
||||||
|
(In Thousands, except share and per share data) |
||||||||||
|
INTEREST AND DIVIDEND INCOME |
||||||||||
|
Loans receivable, including fees |
$ |
36,856 |
$ |
36,112 |
$ |
13,068 |
$ |
109,093 |
$ |
37,330 |
|
Other |
3,338 |
3,337 |
1,710 |
9,325 |
4,765 |
|||||
|
Total interest and dividend income |
40,194 |
39,449 |
14,778 |
118,418 |
42,095 |
|||||
|
INTEREST EXPENSE |
||||||||||
|
Deposits |
13,292 |
13,071 |
5,434 |
38,210 |
15,193 |
|||||
|
Other Borrowings |
949 |
932 |
550 |
2,967 |
1,196 |
|||||
|
Subordinated Debt |
972 |
962 |
442 |
2,892 |
1,311 |
|||||
|
Total interest expense |
15,213 |
14,965 |
6,426 |
44,069 |
17,700 |
|||||
|
NET INTEREST INCOME BEFORE |
24,981 |
24,484 |
8,352 |
74,349 |
24,395 |
|||||
|
Provision for (credit to) credit losses |
84 |
- |
(349 |
) |
125 |
(549 |
) |
|||
|
NET INTEREST INCOME AFTER |
24,897 |
24,484 |
8,701 |
74,224 |
24,944 |
|||||
|
NONINTEREST INCOME |
||||||||||
|
Service charges on deposit accounts |
1,052 |
865 |
198 |
2,697 |
593 |
|||||
|
Bank-owned life insurance |
430 |
386 |
177 |
1,199 |
488 |
|||||
|
Net realized gains (losses) on the sale of debt securities |
- |
4 |
- |
4 |
(2,370 |
) |
||||
|
Gain on sale of loans |
138 |
12 |
- |
200 |
296 |
|||||
|
Other |
1,060 |
591 |
505 |
2,167 |
905 |
|||||
|
Total noninterest income |
2,680 |
1,858 |
880 |
6,267 |
(88 |
) |
||||
|
NONINTEREST EXPENSE |
||||||||||
|
Salaries and employee benefits |
9,855 |
9,941 |
4,193 |
30,914 |
12,350 |
|||||
|
Occupancy |
1,440 |
1,559 |
701 |
4,577 |
2,104 |
|||||
|
Equipment and data processing |
1,640 |
1,824 |
934 |
5,290 |
2,519 |
|||||
|
Professional fees |
763 |
788 |
363 |
2,299 |
1,162 |
|||||
|
FDIC insurance and supervisory fees |
812 |
545 |
276 |
1,709 |
619 |
|||||
|
Bank Shares Tax |
752 |
760 |
278 |
2,103 |
834 |
|||||
|
Intangible amortization |
1,205 |
1,204 |
59 |
3,616 |
179 |
|||||
|
Merger & restructuring expenses |
171 |
631 |
777 |
858 |
1,679 |
|||||
|
Advertising |
163 |
241 |
77 |
505 |
268 |
|||||
|
Other |
1,651 |
1,407 |
336 |
4,730 |
1,833 |
|||||
|
Total noninterest expense |
18,452 |
18,900 |
7,994 |
56,601 |
23,547 |
|||||
|
Income before income tax expense |
9,125 |
7,442 |
1,587 |
23,890 |
1,309 |
|||||
|
Income tax expense |
2,030 |
1,638 |
347 |
5,265 |
276 |
|||||
|
NET INCOME |
$ |
7,095 |
$ |
5,804 |
$ |
1,240 |
$ |
18,625 |
$ |
1,033 |
|
EARNINGS PER SHARE, BASIC |
$ |
0.19 |
$ |
0.16 |
$ |
0.08 |
$ |
0.50 |
$ |
0.06 |
|
EARNINGS PER SHARE, DILUTED |
$ |
0.19 |
$ |
0.16 |
$ |
0.08 |
$ |
0.50 |
$ |
0.06 |
|
WEIGHTED-AVERAGE COMMON SHARES |
||||||||||
|
BASIC |
36,983,637 |
36,970,768 |
16,235,144 |
36,972,127 |
15,984,151 |
|||||
|
DILUTED |
37,090,111 |
37,040,748 |
16,235,144 |
37,061,512 |
15,984,151 |
Page 10 of 18
|
LINKBANCORP, Inc. and Subsidiaries |
|||||||||||||
|
Financial Highlights (Unaudited) |
|||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||
|
(Dollars In Thousands, except per share data) |
9/30/2024 |
6/30/2024 |
9/30/2023 |
9/30/2024 |
9/30/2023 |
||||||||
|
Operating Highlights |
|||||||||||||
|
Net Income |
$ |
7,095 |
$ |
5,804 |
$ |
1,240 |
$ |
18,625 |
$ |
1,033 |
|||
|
Net Interest Income |
24,981 |
24,484 |
8,352 |
74,349 |
24,395 |
||||||||
|
Provision for (credit to) Credit Losses |
84 |
- |
(349 |
) |
125 |
(549 |
) |
||||||
|
Non-Interest Income |
2,680 |
1,858 |
880 |
6,267 |
(88 |
) |
|||||||
|
Non-Interest Expense |
18,452 |
18,900 |
7,994 |
56,601 |
23,547 |
||||||||
|
Earnings per Share, Basic |
0.19 |
0.16 |
0.08 |
0.50 |
0.06 |
||||||||
|
Adjusted Earnings per Share, Basic (2) |
0.20 |
0.17 |
0.11 |
0.52 |
0.26 |
||||||||
|
Earnings per Share, Diluted |
0.19 |
0.16 |
0.08 |
0.50 |
0.06 |
||||||||
|
Adjusted Earnings per Share, Diluted (2) |
0.19 |
0.17 |
0.11 |
0.52 |
0.26 |
||||||||
|
Selected Operating Ratios |
|||||||||||||
|
Net Interest Margin |
3.82 |
% |
3.83 |
% |
2.89 |
% |
3.89 |
% |
2.88 |
% |
|||
|
Annualized Return on Assets ("ROA") |
1.00 |
% |
0.84 |
% |
0.39 |
% |
0.90 |
% |
0.11 |
% |
|||
|
Adjusted ROA2 |
1.02 |
% |
0.91 |
% |
0.59 |
% |
0.93 |
% |
0.46 |
% |
|||
|
Annualized Return on Equity ("ROE") |
10.30 |
% |
8.65 |
% |
3.46 |
% |
9.20 |
% |
0.99 |
% |
|||
|
Adjusted ROE2 |
10.50 |
% |
9.39 |
% |
5.17 |
% |
9.53 |
% |
4.04 |
% |
|||
|
Efficiency Ratio |
66.71 |
% |
71.75 |
% |
86.59 |
% |
70.21 |
% |
96.87 |
% |
|||
|
Adjusted Efficiency Ratio3 |
66.09 |
% |
69.36 |
% |
78.17 |
% |
69.15 |
% |
81.97 |
% |
|||
|
Noninterest Income to Avg. Assets |
0.38 |
% |
0.27 |
% |
0.28 |
% |
0.30 |
% |
-0.01 |
% |
|||
|
Noninterest Expense to Avg. Assets |
2.61 |
% |
2.73 |
% |
2.54 |
% |
2.73 |
% |
2.56 |
% |
|||
|
9/30/2024 |
6/30/2024 |
3/31/2024 |
12/31/2023 |
9/30/2023 |
|||||||||
|
Financial Condition Data |
|||||||||||||
|
Total Assets |
$ |
2,879,941 |
$ |
2,858,593 |
$ |
2,785,669 |
$ |
2,669,325 |
$ |
1,255,695 |
|||
|
Loans Receivable, Net |
2,189,326 |
2,166,909 |
2,106,077 |
2,104,517 |
968,948 |
||||||||
|
Noninterest-bearing Deposits |
658,473 |
661,292 |
618,277 |
624,780 |
210,404 |
||||||||
|
Interest-bearing Deposits |
1,714,179 |
1,699,220 |
1,662,124 |
1,574,019 |
831,368 |
||||||||
|
Total Deposits |
2,372,652 |
2,360,512 |
2,280,401 |
2,198,799 |
1,041,772 |
||||||||
|
Selected Balance Sheet Ratios |
|||||||||||||
|
Total Capital Ratio1 |
11.44 |
% |
11.09 |
% |
11.04 |
% |
10.62 |
% |
12.92 |
% |
|||
|
Tier 1 Capital Ratio1 |
10.62 |
% |
10.30 |
% |
10.24 |
% |
9.92 |
% |
12.37 |
% |
|||
|
Common Equity Tier 1 Capital Ratio1 |
10.62 |
% |
10.30 |
% |
10.24 |
% |
9.92 |
% |
12.37 |
% |
|||
|
Leverage Ratio1 |
9.41 |
% |
9.17 |
% |
9.23 |
% |
14.13 |
% |
10.71 |
% |
|||
|
Tangible Common Equity to Tangible Assets4 |
7.02 |
% |
6.82 |
% |
6.91 |
% |
7.08 |
% |
8.58 |
% |
|||
|
Tangible Book Value per Share5 |
$ |
5.26 |
$ |
5.07 |
$ |
5.00 |
$ |
4.90 |
$ |
6.44 |
|||
|
Asset Quality Data |
|||||||||||||
|
Non-performing Assets |
$ |
17,378 |
$ |
10,589 |
$ |
6,675 |
$ |
7,250 |
$ |
2,958 |
|||
|
Non-performing Assets to Total Assets |
0.60 |
% |
0.37 |
% |
0.24 |
% |
0.27 |
% |
0.24 |
% |
|||
|
Non-performing Loans to Total Loans |
0.78 |
% |
0.48 |
% |
0.31 |
% |
0.34 |
% |
0.30 |
% |
|||
|
Allowance for Credit Losses - Loans ("ACLL") |
$ |
26,542 |
$ |
26,288 |
$ |
23,842 |
$ |
23,767 |
$ |
9,964 |
|||
|
ACLL to Total Loans6 |
1.20 |
% |
1.20 |
% |
1.06 |
% |
1.06 |
% |
1.02 |
% |
|||
|
ACLL to Nonperforming Assets |
152.73 |
% |
248.26 |
% |
357.18 |
% |
327.82 |
% |
336.85 |
% |
|||
|
Net (recoveries) chargeoffs |
$ |
(28 |
) |
$ |
(20 |
) |
$ |
70 |
$ |
195 |
$ |
(12 |
) |
|
(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. |
Page 11 of 18
|
(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. |
|
(6) - The historical ratios have not been recast for the reclassification of loans held for sale. |
|
LINKBANCORP, Inc. and Subsidiaries |
||||||||||||
|
Net Interest Margin - Quarter-To-Date (Unaudited) |
||||||||||||
|
For the Three Months Ended September 30, |
||||||||||||
|
2024 |
2023 |
|||||||||||
|
(Dollars in thousands) |
Avg Bal |
Interest (2) |
Yield/Rate |
Avg Bal |
Interest (2) |
Yield/Rate |
||||||
|
Int. Earn. Cash |
$ |
114,383 |
$ |
1,296 |
4.51 |
% |
$ |
55,514 |
$ |
577 |
4.12 |
% |
|
Securities |
||||||||||||
|
Taxable (1) |
133,443 |
1,683 |
5.02 |
% |
82,499 |
833 |
4.01 |
% |
||||
|
Tax-Exempt |
42,800 |
453 |
4.21 |
% |
38,589 |
378 |
3.89 |
% |
||||
|
Total Securities |
176,243 |
2,136 |
4.82 |
% |
121,088 |
1,211 |
3.97 |
% |
||||
|
Total Cash Equiv. and Investments |
290,626 |
3,432 |
4.70 |
% |
176,602 |
1,788 |
4.02 |
% |
||||
|
Total Loans (3)(4) |
2,313,228 |
36,856 |
6.34 |
% |
971,877 |
13,068 |
5.33 |
% |
||||
|
Total Earning Assets |
2,603,854 |
40,288 |
6.16 |
% |
1,148,479 |
14,856 |
5.13 |
% |
||||
|
Other Assets |
208,407 |
97,995 |
||||||||||
|
Total Assets |
$ |
2,812,261 |
$ |
1,246,474 |
||||||||
|
Interest bearing demand(5) |
$ |
497,100 |
$ |
2,902 |
2.32 |
% |
$ |
254,725 |
$ |
1,490 |
2.32 |
% |
|
Money market demand(5) |
580,766 |
3,396 |
2.33 |
% |
254,849 |
1,827 |
2.84 |
% |
||||
|
Time deposits(5) |
613,402 |
6,993 |
4.54 |
% |
265,573 |
2,117 |
3.16 |
% |
||||
|
Total Borrowings |
153,699 |
1,922 |
0.00 |
% |
102,669 |
992 |
3.83 |
% |
||||
|
Total Interest-Bearing Liabilities |
1,844,967 |
15,213 |
3.28 |
% |
877,816 |
6,426 |
2.90 |
% |
||||
|
Non Interest-Bearing Deposits(5) |
659,825 |
209,054 |
||||||||||
|
Total Cost of Funds |
$ |
2,504,792 |
$ |
15,213 |
2.42 |
% |
$ |
1,086,870 |
$ |
6,426 |
2.35 |
% |
|
Other Liabilities |
33,534 |
17,230 |
||||||||||
|
Total Liabilities |
$ |
2,538,326 |
$ |
1,104,100 |
||||||||
|
Shareholders' Equity |
$ |
273,935 |
$ |
142,374 |
||||||||
|
Total Liabilities & Shareholders' Equity |
$ |
2,812,261 |
$ |
1,246,474 |
||||||||
|
Net Interest Income/Spread (FTE) |
25,075 |
2.88 |
% |
8,430 |
2.23 |
% |
||||||
|
Tax-Equivalent Basis Adjustment |
(94 |
) |
(78 |
) |
||||||||
|
Net Interest Income |
$ |
24,981 |
$ |
8,352 |
||||||||
|
Net Interest Margin |
3.82 |
% |
2.89 |
% |
||||||||
|
(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 |
||||||||||||
|
(4) Includes the balances of loans held for sale |
||||||||||||
|
(5) Includes the balances of deposits held for sale |
Page 12 of 18
|
LINKBANCORP, Inc. and Subsidiaries |
||||||||||||
|
Net Interest Margin - Linked Quarter-To-Date (Unaudited) |
||||||||||||
|
For the Three Months Ended |
||||||||||||
|
September 30, 2024 |
June 30, 2024 |
|||||||||||
|
(Dollars in thousands) |
Avg Bal |
Interest (2) |
Yield/Rate |
Avg Bal |
Interest (2) |
Yield/Rate |
||||||
|
Int. Earn. Cash |
$ |
114,383 |
$ |
1,296 |
4.51 |
% |
$ |
121,340 |
$ |
1,395 |
4.62 |
% |
|
Securities |
||||||||||||
|
Taxable (1) |
133,443 |
1,683 |
5.02 |
% |
125,885 |
1,592 |
5.09 |
% |
||||
|
Tax-Exempt |
42,800 |
453 |
4.21 |
% |
41,776 |
443 |
4.26 |
% |
||||
|
Total Securities |
176,243 |
2,136 |
4.82 |
% |
167,661 |
2,035 |
4.88 |
% |
||||
|
Total Cash Equiv. and Investments |
290,626 |
3,432 |
4.70 |
% |
289,001 |
3,430 |
4.77 |
% |
||||
|
Total Loans (3)(4) |
2,313,228 |
36,856 |
6.34 |
% |
2,280,041 |
36,112 |
6.37 |
% |
||||
|
Total Earning Assets |
2,603,854 |
40,288 |
6.16 |
% |
2,569,042 |
39,542 |
6.19 |
% |
||||
|
Other Assets |
208,407 |
212,097 |
||||||||||
|
Total Assets |
$ |
2,812,261 |
$ |
2,781,139 |
||||||||
|
Interest bearing demand(5) |
$ |
497,100 |
2,902 |
2.32 |
% |
$ |
446,109 |
$ |
2,457 |
2.22 |
% |
|
|
Money market demand(5) |
580,766 |
3,396 |
2.33 |
% |
581,223 |
3,271 |
2.26 |
% |
||||
|
Time deposits(5) |
613,402 |
6,993 |
4.54 |
% |
642,919 |
7,343 |
4.59 |
% |
||||
|
Total Borrowings |
153,699 |
1,922 |
4.97 |
% |
151,596 |
1,894 |
5.02 |
% |
||||
|
Total Interest-Bearing Liabilities |
1,844,967 |
15,213 |
3.28 |
% |
1,821,847 |
14,965 |
3.30 |
% |
||||
|
Non Interest-Bearing Deposits(5) |
659,825 |
657,939 |
||||||||||
|
Total Cost of Funds |
$ |
2,504,792 |
$ |
15,213 |
2.42 |
% |
$ |
2,479,786 |
$ |
14,965 |
2.43 |
% |
|
Other Liabilities |
33,534 |
31,519 |
||||||||||
|
Total Liabilities |
$ |
2,538,326 |
$ |
2,511,305 |
||||||||
|
Shareholders' Equity |
$ |
273,935 |
$ |
269,834 |
||||||||
|
Total Liabilities & Shareholders' Equity |
$ |
2,812,261 |
$ |
2,781,139 |
||||||||
|
Net Interest Income/Spread (FTE) |
25,075 |
2.88 |
% |
24,577 |
2.89 |
% |
||||||
|
Tax-Equivalent Basis Adjustment |
(94 |
) |
(93 |
) |
||||||||
|
Net Interest Income |
$ |
24,981 |
$ |
24,484 |
||||||||
|
Net Interest Margin |
3.82 |
% |
3.83 |
% |
||||||||
|
(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 |
||||||||||||
|
(4) Includes the balances of loans held for sale |
||||||||||||
|
(5) Includes the balances of deposits held for sale |
Page 13 of 18
|
LINKBANCORP, Inc. and Subsidiaries |
||||||||||||
|
Net Interest Margin - Year-To-Date (Unaudited) |
||||||||||||
|
For the Nine Months Ended September 30, |
||||||||||||
|
2024 |
2023 |
|||||||||||
|
(Dollars in thousands) |
Avg Bal |
Interest (2) |
Yield/Rate |
Avg Bal |
Interest (2) |
Yield/Rate |
||||||
|
Int. Earn. Cash |
$ |
106,334 |
$ |
3,590 |
4.51 |
% |
$ |
51,547 |
$ |
1,561 |
4.05 |
% |
|
Securities |
||||||||||||
|
Taxable (1) |
125,264 |
4,666 |
4.98 |
% |
83,449 |
2,309 |
3.70 |
% |
||||
|
Tax-Exempt |
42,606 |
1,353 |
4.24 |
% |
38,617 |
1,133 |
3.92 |
% |
||||
|
Total Securities |
167,870 |
6,019 |
4.79 |
% |
122,066 |
3,442 |
3.77 |
% |
||||
|
Total Cash Equiv. and Investments |
274,204 |
9,609 |
4.68 |
% |
173,613 |
5,003 |
3.85 |
% |
||||
|
Total Loans (3)(4) |
2,279,378 |
109,093 |
6.39 |
% |
958,382 |
37,330 |
5.21 |
% |
||||
|
Total Earning Assets |
2,553,582 |
118,702 |
6.21 |
% |
1,131,995 |
42,333 |
5.00 |
% |
||||
|
Other Assets |
210,962 |
95,400 |
||||||||||
|
Total Assets |
$ |
2,764,544 |
$ |
1,227,395 |
||||||||
|
Interest bearing demand(5) |
$ |
458,184 |
$ |
7,301 |
2.13 |
% |
$ |
250,830 |
$ |
3,938 |
2.10 |
% |
|
Money market demand(5) |
582,998 |
9,841 |
2.25 |
% |
248,731 |
4,766 |
2.56 |
% |
||||
|
Time deposits(5) |
621,881 |
21,068 |
4.53 |
% |
285,666 |
6,489 |
3.04 |
% |
||||
|
Total Borrowings |
147,557 |
5,859 |
5.30 |
% |
81,749 |
2,507 |
4.10 |
% |
||||
|
Total Interest-Bearing Liabilities |
1,810,620 |
44,069 |
3.25 |
% |
866,976 |
17,700 |
2.73 |
% |
||||
|
Non Interest-Bearing Deposits(5) |
650,384 |
203,284 |
||||||||||
|
Total Cost of Funds |
$ |
2,461,004 |
$ |
44,069 |
2.39 |
% |
$ |
1,070,260 |
$ |
17,700 |
2.21 |
% |
|
Other Liabilities |
33,086 |
17,024 |
||||||||||
|
Total Liabilities |
$ |
2,494,090 |
$ |
1,087,284 |
||||||||
|
Shareholders' Equity |
$ |
270,454 |
$ |
140,005 |
||||||||
|
Total Liabilities & Shareholders' Equity |
$ |
2,764,544 |
$ |
1,227,289 |
||||||||
|
Net Interest Income/Spread (FTE) |
74,633 |
2.96 |
% |
24,633 |
2.27 |
% |
||||||
|
Tax-Equivalent Basis Adjustment |
(284 |
) |
(238 |
) |
||||||||
|
Net Interest Income |
$ |
74,349 |
$ |
24,395 |
||||||||
|
Net Interest Margin |
3.89 |
% |
2.88 |
% |
||||||||
|
(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 |
||||||||||||
|
(4) Includes the balances of loans held for sale |
||||||||||||
|
(5) Includes the balances of deposits held for sale |
Page 14 of 18
|
LINKBANCORP, Inc. and Subsidiaries |
||||||||||
|
Loans Receivable Detail (Unaudited) |
||||||||||
|
(In Thousands) |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||
|
Agriculture and farmland loans |
$ |
65,166 |
$ |
66,937 |
$ |
67,359 |
$ |
65,861 |
$ |
50,584 |
|
Construction loans |
175,373 |
201,174 |
194,391 |
178,483 |
65,836 |
|||||
|
Commercial & industrial loans |
241,597 |
247,190 |
218,724 |
238,343 |
115,572 |
|||||
|
Commercial real estate loans |
||||||||||
|
Multifamily |
212,444 |
199,740 |
190,146 |
180,788 |
111,853 |
|||||
|
Owner occupied |
500,643 |
492,065 |
489,467 |
501,732 |
160,929 |
|||||
|
Non-owner occupied |
626,030 |
610,649 |
589,731 |
580,972 |
257,344 |
|||||
|
Residential real estate loans |
||||||||||
|
First liens |
400,869 |
400,098 |
403,300 |
402,433 |
172,481 |
|||||
|
Second liens and lines of credit |
73,591 |
71,168 |
71,060 |
70,747 |
27,870 |
|||||
|
Consumer and other loans |
17,498 |
15,514 |
16,810 |
16,756 |
11,869 |
|||||
|
Municipal loans |
4,296 |
4,362 |
4,473 |
5,244 |
4,137 |
|||||
|
2,317,507 |
2,308,897 |
2,245,461 |
2,241,359 |
978,475 |
||||||
|
Deferred costs |
634 |
478 |
356 |
174 |
437 |
|||||
|
Total loans receivable |
2,318,141 |
2,309,375 |
2,245,817 |
2,241,533 |
978,912 |
|||||
|
Less: Loans held for sale |
102,273 |
116,178 |
115,898 |
113,249 |
- |
|||||
|
Loans Held for Investment |
$ |
2,215,868 |
$ |
2,193,197 |
$ |
2,129,919 |
$ |
2,128,284 |
$ |
978,912 |
Page 15 of 18
|
LINKBANCORP, Inc. and Subsidiaries |
||||||||||
|
Investments in Securities Detail (Unaudited) |
||||||||||
|
September 30, 2024 |
||||||||||
|
(In Thousands) |
Amortized |
Net |
Fair |
|||||||
|
Available for Sale: |
||||||||||
|
US Government Agency securities |
$ |
11,935 |
$ |
442 |
$ |
12,377 |
||||
|
Obligations of state and political subdivisions |
51,124 |
(2,529 |
) |
48,595 |
||||||
|
Mortgage-backed securities in government-sponsored entities |
88,528 |
(700 |
) |
87,828 |
||||||
|
Other securities |
524 |
(9 |
) |
515 |
||||||
|
$ |
152,111 |
$ |
(2,796 |
) |
$ |
149,315 |
||||
|
Amortized |
Net Unrealized Gains (Losses) |
Fair Value |
Allowance for Credit Losses |
|||||||
|
Held to Maturity: |
||||||||||
|
Corporate debentures |
$ |
15,000 |
$ |
(1,198 |
) |
$ |
13,802 |
$ |
(471 |
) |
|
Structured mortgage-backed securities |
19,626 |
(605 |
) |
19,021 |
- |
|||||
|
$ |
34,626 |
$ |
(1,803 |
) |
$ |
32,823 |
$ |
(471 |
) |
|
|
December 31, 2023 |
||||||||||
|
(In Thousands) |
Amortized |
Net |
Fair |
|||||||
|
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 |
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 |
) |
Page 16 of 18
|
LINKBANCORP, Inc. and Subsidiaries |
||||||||||
|
Deposits Detail (Unaudited) |
||||||||||
|
(In Thousands) |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||
|
Demand, noninterest-bearing |
$ |
687,536 |
$ |
692,095 |
$ |
653,719 |
$ |
655,953 |
$ |
210,404 |
|
Demand, interest-bearing |
547,099 |
488,043 |
447,412 |
438,765 |
273,673 |
|||||
|
Money market and savings |
585,395 |
582,561 |
591,982 |
577,448 |
258,334 |
|||||
|
Time deposits, $250 and over |
169,616 |
156,621 |
147,898 |
134,324 |
51,563 |
|||||
|
Time deposits, other |
401,976 |
393,603 |
398,365 |
372,572 |
172,798 |
|||||
|
Brokered deposits |
75,000 |
144,429 |
146,653 |
119,411 |
75,000 |
|||||
|
2,466,622 |
2,457,352 |
2,386,029 |
2,298,473 |
1,041,772 |
||||||
|
Less: Deposits held for sale |
93,970 |
96,840 |
105,628 |
99,674 |
- |
|||||
|
Total deposits |
$ |
2,372,652 |
$ |
2,360,512 |
$ |
2,280,401 |
$ |
2,198,799 |
$ |
1,041,772 |
|
Average Deposits Detail, for the Three Months Ended (Unaudited) |
||||||||||
|
(In Thousands) |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||
|
Demand, noninterest-bearing |
$ |
659,825 |
$ |
657,939 |
$ |
632,637 |
$ |
371,051 |
$ |
209,054 |
|
Demand, interest-bearing |
497,100 |
446,109 |
424,781 |
328,342 |
254,725 |
|||||
|
Money market and savings |
580,766 |
581,223 |
587,455 |
367,821 |
254,849 |
|||||
|
Time deposits |
560,815 |
547,582 |
518,929 |
317,747 |
236,869 |
|||||
|
Brokered deposits |
52,587 |
95,337 |
89,263 |
30,832 |
28,705 |
|||||
|
Total deposits |
$ |
2,351,093 |
$ |
2,328,190 |
$ |
2,253,065 |
$ |
1,415,793 |
$ |
984,202 |
|
Balances in table above include deposits held for sale |
Page 17 of 18
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 |
For the Nine Months Ended |
|||||||||
|
(Dollars in thousands) |
9/30/2024 |
6/30/2024 |
9/30/2023 |
9/30/2024 |
9/30/2023 |
|||||
|
Net income |
$ |
7,095 |
$ |
5,804 |
$ |
1,240 |
$ |
18,625 |
$ |
1,033 |
|
Average assets |
2,812,261 |
2,781,139 |
1,246,474 |
2,764,544 |
1,227,395 |
|||||
|
Return on average assets (annualized) |
1.00 |
% |
0.84 |
% |
0.39 |
% |
0.90 |
% |
0.11 |
% |
|
Net income |
7,095 |
5,804 |
1,240 |
18,625 |
1,033 |
|||||
|
Net (gains) losses on sale of securities |
- |
(4 |
) |
- |
(4 |
) |
2,370 |
|||
|
Tax effect at 21% |
- |
1 |
- |
1 |
(498 |
) |
||||
|
Merger & restructuring expenses |
171 |
631 |
777 |
858 |
1,679 |
|||||
|
Tax effect at 21% |
(36 |
) |
(133 |
) |
(163 |
) |
(180 |
) |
(353 |
) |
|
Adjusted Net Income (Non-GAAP) |
7,230 |
6,299 |
1,854 |
19,300 |
4,231 |
|||||
|
Average assets |
2,812,261 |
2,781,139 |
1,246,474 |
2,764,544 |
1,227,395 |
|||||
|
Adjusted return on average assets (annualized) |
1.02 |
% |
0.91 |
% |
0.59 |
% |
0.93 |
% |
0.46 |
% |
Page 18 of 18
|
Adjusted Return on Average Shareholders' Equity |
||||||||||
|
For the Three Months Ended |
For the Nine Months Ended |
|||||||||
|
(Dollars in thousands) |
9/30/2024 |
6/30/2024 |
9/30/2023 |
9/30/2024 |
9/30/2023 |
|||||
|
Net income |
$ |
7,095 |
$ |
5,804 |
$ |
1,240 |
$ |
18,625 |
$ |
1,033 |
|
Average shareholders' equity |
273,935 |
269,834 |
142,374 |
270,454 |
140,005 |
|||||
|
Return on average shareholders' equity (annualized) |
10.30 |
% |
8.65 |
% |
3.46 |
% |
9.20 |
% |
0.99 |
% |
|
Net income |
7,095 |
5,804 |
1,240 |
18,625 |
1,033 |
|||||
|
Net (gains) losses on sale of securities |
- |
(4 |
) |
- |
(4 |
) |
2,370 |
|||
|
Tax effect at 21% |
- |
1 |
- |
1 |
(498 |
) |
||||
|
Merger & restructuring expenses |
171 |
631 |
777 |
858 |
1,679 |
|||||
|
Tax effect at 21% |
(36 |
) |
(133 |
) |
(163 |
) |
(180 |
) |
(353 |
) |
|
Adjusted Net Income (Non-GAAP) |
7,230 |
6,299 |
1,854 |
19,300 |
4,231 |
|||||
|
Average shareholders' equity |
273,935 |
269,834 |
142,374 |
270,454 |
140,005 |
|||||
|
Adjusted return on average shareholders' equity (annualized) |
10.50 |
% |
9.39 |
% |
5.17 |
% |
9.53 |
% |
4.04 |
% |
|
Adjusted Efficiency Ratio |
||||||||||
|
For the Three Months Ended |
For the Nine Months Ended |
|||||||||
|
(Dollars in thousands) |
9/30/2024 |
6/30/2024 |
9/30/2023 |
9/30/2024 |
9/30/2023 |
|||||
|
GAAP-based efficiency ratio |
66.71 |
% |
71.75 |
% |
86.59 |
% |
70.21 |
% |
96.87 |
% |
|
Net interest income |
$ |
24,981 |
$ |
24,484 |
$ |
8,352 |
$ |
74,349 |
$ |
24,395 |
|
Noninterest income |
2,680 |
1,858 |
880 |
6,267 |
(88 |
) |
||||
|
Less: net gains (losses) on sales of securities |
- |
4 |
- |
4 |
(2,370 |
) |
||||
|
Adjusted revenue (Non-GAAP) |
27,661 |
26,338 |
9,232 |
80,612 |
26,677 |
|||||
|
Total noninterest expense |
18,452 |
18,900 |
7,994 |
56,601 |
23,547 |
|||||
|
Less: Merger & restructuring expenses |
171 |
631 |
777 |
858 |
1,679 |
|||||
|
Adjusted non-interest expense |
18,281 |
18,269 |
7,217 |
55,743 |
21,868 |
|||||
|
Efficiency ratio, as adjusted (Non-GAAP) |
66.09 |
% |
69.36 |
% |
78.17 |
% |
69.15 |
% |
81.97 |
% |
|
Adjusted Earnings Per Share |
||||||||||
|
For the Three Months Ended |
For the Nine Months Ended |
|||||||||
|
(Dollars in thousands, except per share data) |
9/30/2024 |
6/30/2024 |
9/30/2023 |
9/30/2024 |
9/30/2023 |
|||||
|
GAAP-Based Earnings Per Share, Basic |
$ |
0.19 |
$ |
0.16 |
$ |
0.08 |
$ |
0.50 |
$ |
0.06 |
|
GAAP-Based Earnings Per Share, Diluted |
$ |
0.19 |
$ |
0.16 |
$ |
0.08 |
$ |
0.50 |
$ |
0.06 |
|
Net Income |
$ |
7,095 |
$ |
5,804 |
$ |
1,240 |
$ |
18,625 |
$ |
1,033 |
|
Net (gains) losses on sale of securities |
- |
(4 |
) |
- |
(4 |
) |
2,370 |
|||
|
Tax effect at 21% |
- |
1 |
- |
1 |
(498 |
) |
||||
|
Merger & restructuring expenses |
171 |
631 |
777 |
858 |
1,679 |
|||||
|
Tax effect at 21% |
(36 |
) |
(133 |
) |
(163 |
) |
(180 |
) |
(353 |
) |
|
Adjusted Net Income (Non-GAAP) |
7,230 |
6,299 |
1,854 |
19,300 |
4,231 |
|||||
|
Adjusted Earnings per Share, Basic (Non-GAAP) |
$ |
0.20 |
$ |
0.17 |
$ |
0.11 |
$ |
0.52 |
$ |
0.26 |
|
Adjusted Earnings per Share, Diluted (Non-GAAP) |
$ |
0.19 |
$ |
0.17 |
$ |
0.11 |
$ |
0.52 |
$ |
0.26 |
Page 19 of 18
|
Tangible Common Equity and Tangible Book Value |
||||||||||
|
(Dollars in thousands, except per share data) |
9/30/2024 |
6/30/2024 |
3/31/2024 |
12/31/2023 |
9/30/2023 |
|||||
|
Tangible Common Equity |
(Dollars in thousands, except for share data) |
|||||||||
|
Total shareholders' equity |
$ |
277,353 |
$ |
271,409 |
$ |
268,243 |
$ |
265,796 |
$ |
141,351 |
|
Adjustments: |
||||||||||
|
Goodwill |
(58,806 |
) |
(58,806 |
) |
(56,968 |
) |
(56,968 |
) |
(35,842 |
) |
|
Other intangible assets |
(22,118 |
) |
(23,323 |
) |
(24,526 |
) |
(25,733 |
) |
(873 |
) |
|
Tangible common equity (Non-GAAP) |
$ |
196,429 |
$ |
189,280 |
$ |
186,749 |
$ |
183,095 |
$ |
104,636 |
|
Common shares outstanding |
37,361,560 |
37,356,278 |
37,348,151 |
37,340,700 |
16,235,871 |
|||||
|
Book value per common share |
$ |
7.42 |
$ |
7.27 |
$ |
7.18 |
$ |
7.12 |
$ |
8.71 |
|
Tangible book value per common share |
$ |
5.26 |
$ |
5.07 |
$ |
5.00 |
$ |
4.90 |
$ |
6.44 |
|
Tangible Assets |
||||||||||
|
Total assets |
$ |
2,879,941 |
$ |
2,858,593 |
$ |
2,785,669 |
$ |
2,669,325 |
$ |
1,255,695 |
|
Adjustments: |
||||||||||
|
Goodwill |
(58,806 |
) |
(58,806 |
) |
(56,968 |
) |
(56,968 |
) |
(35,842 |
) |
|
Other intangible assets |
(22,118 |
) |
(23,323 |
) |
(24,526 |
) |
(25,733 |
) |
(873 |
) |
|
Tangible assets (Non-GAAP) |
$ |
2,799,017 |
$ |
2,776,464 |
$ |
2,704,175 |
$ |
2,586,624 |
$ |
1,218,980 |
|
Tangible common equity to tangible assets (Non-GAAP) |
7.02 |
% |
6.82 |
% |
6.91 |
% |
7.08 |
% |
8.58 |
% |
|
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP) |
||||||||||
|
For the Three Months Ended |
For the Nine Months Ended |
|||||||||
|
(Dollars in thousands, except per share data) |
9/30/2024 |
6/30/2024 |
9/30/2023 |
9/30/2024 |
9/30/2023 |
|||||
|
Net Income - GAAP |
$ |
7,095 |
$ |
5,804 |
$ |
1,240 |
$ |
18,625 |
$ |
1,033 |
|
Net (gains) losses on sale of securities |
- |
(4 |
) |
- |
(4 |
) |
2,370 |
|||
|
Tax effect at 21% |
- |
1 |
- |
1 |
(498 |
) |
||||
|
Merger & restructuring expenses |
171 |
631 |
777 |
858 |
1,679 |
|||||
|
Tax effect at 21% |
(36 |
) |
(133 |
) |
(163 |
) |
(180 |
) |
(353 |
) |
|
Adjusted Net Income (Non-GAAP) |
7,230 |
6,299 |
1,854 |
19,300 |
4,231 |
|||||
|
Income tax expense |
2,030 |
1,638 |
347 |
5,265 |
276 |
|||||
|
Provision for (credit to) credit losses |
84 |
- |
(349 |
) |
125 |
(549 |
) |
|||
|
Tax effect included in Adjusted Net Income |
36 |
132 |
163 |
179 |
851 |
|||||
|
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP) |
$ |
9,380 |
$ |
8,069 |
$ |
2,015 |
$ |
24,869 |
$ |
4,809 |