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LINKBANCORP Reports Strong Earnings for Second Quarter 2025

On July 28, 2025, LINKBANCORP, Inc. (NASDAQ: LNKB), the parent company of LINKBANK, announced its second quarter earnings for 2025. The company reported a net income of $7.4 million, translating to approximately $0.20 per diluted share. This reflects a decrease from the first quarter of 2025, where net income reached $15.3 million, or $0.41 per diluted share. However, excluding impact from branch sales, adjusted earnings were stable at $7.4 million for both quarters.

Financial Highlights

During the second quarter, LINKBANCORP showcased an annualized return on average assets at 1.05%. This figure contrasts with a higher 2.19% from the first quarter of 2025 and shows a year-over-year increase from 0.84% in Q2 of 2024. The company experienced significant growth in its balance sheet, with total loans amounting to $2.36 billion, marking a quarterly increase of $82.7 million—an annualized growth rate of 14.58%. Year-to-date, total loans saw an increase of $107.0 million, or 9.19% annually when excluding effects from branch sales.

The total deposits also experienced growth, rising to $2.46 billion from $2.43 billion in the prior quarter. This indicates a quarterly increase of $22.7 million, which is equivalent to an annualized growth rate of 3.74%. Furthermore, year-to-date deposits have increased by $89.4 million, a 7.34% growth rate when excluding the impact of branch sales.

Credit Quality and Expense Management

A notable aspect of the report is the improvement in credit quality. The company reported a decrease in non-performing assets by $4.2 million, dropping to $21.9 million, which accounts for 0.76% of total assets. Several loan resolutions contributed to this improvement, reducing reserve needs by $2.5 million and enhancing the ratio of the allowance for credit losses to non-performing assets to 112.68%.

LINKBANCORP's mentioned discipline in managing expenses is evident as GAAP non-interest expenses accounted for $18.1 million in the second quarter, reflecting an efficiency ratio of 64.79%. This indicates continued efforts to cut costs compared to the previous quarter’s expense of $19.7 million with an efficiency ratio of 50.29%.

Dividend Declaration

In addition to the robust earnings report, LINKBANCORP has declared a quarterly cash dividend of $0.075 per share. This dividend is set to be paid on September 15, 2025, to shareholders recorded by August 29, 2025. The decision underscores the company’s solid performance and commitment to returning value to its shareholders.

Management Insights

Andrew Samuel, the CEO of LINKBANCORP, expressed satisfaction with the performance stating, "We are pleased to report another quarter of strong core earnings, combined with exceptional loan and deposit growth throughout our entire footprint." He emphasized the company’s focus on enhancing operational efficiency and expanding non-interest income to deliver sustainable long-term value for shareholders.

Furthermore, the net interest income before the provision for credit losses was reported at $24.9 million for the second quarter. However, net interest margin slightly dipped to 3.80%, down from 3.94% in the previous quarter. This reduction was influenced by lower balances of loans and deposits post-branch sale and increased competition for deposits in their markets.

Conclusion

Overall, LINKBANCORP, Inc.'s second quarter 2025 results highlight stable earnings amidst potential challenges, and show a strong foundation for future growth with ongoing strategies to optimize operational efficiency and enhance profitability. This strategic approach, along with a commitment to shareholder value through dividends, positions the company favorably in the financial services landscape.