LINKBANCORP Reports $7.8 Million Net Income for Q3 2025, Driven by Interest and Noninterest Income Growth

LINKBANCORP, Inc. reported a net income of $7.8 million for the third quarter of 2025, reflecting a 10.5% increase from $7.1 million in the same period last year. This translates to earnings per share of $0.21, up from $0.19 in the prior year. For the nine months ending September 30, 2025, net income reached $30.6 million, a significant increase of $11.9 million compared to $18.7 million for the same period in 2024. The growth in net income was primarily driven by a rise in interest income, which increased by $3.1 million to $121.5 million, and a notable boost in noninterest income, largely attributed to an $11.1 million gain from the sale of the New Jersey operations.

Total assets for LINKBANCORP increased to $3.12 billion as of September 30, 2025, marking an 8.5% rise from $2.88 billion at the end of 2024. This growth was fueled by a $202.3 million increase in net loans receivable, which rose to $2.43 billion, and a $122.3 million increase in securities available for sale, totaling $267.9 million. The company also reported a significant increase in deposits, which grew by $307.5 million, or 13%, to $2.67 billion, driven by new account openings and increased balances in interest-bearing accounts.

In terms of operational developments, LINKBANCORP completed the sale of its New Jersey operations on March 31, 2025, which included three branch locations and resulted in an after-tax gain of approximately $8.7 million. The transaction involved the transfer of $105 million in loans and $87.1 million in deposits to American Heritage Federal Credit Union. This strategic move is part of LINKBANCORP's ongoing efforts to streamline operations and focus on core markets.

The company’s loan portfolio showed diverse growth, with commercial real estate loans increasing by $172.2 million during the nine months ended September 30, 2025. Notably, non-owner occupied commercial real estate loans represented 357.68% of total risk-based capital, a decrease from 365.65% at the end of 2024, indicating a slight improvement in capital ratios. The allowance for credit losses on loans decreased to $25.3 million, representing 1.03% of total gross loans, down from 1.17% at the end of the previous year.

Looking ahead, LINKBANCORP remains focused on maintaining its status as a well-capitalized institution while navigating the challenges posed by economic conditions and regulatory requirements. The company is committed to enhancing its community banking services and expanding its market presence, particularly in its primary operating regions across Pennsylvania, Maryland, Delaware, and Virginia. The management anticipates continued growth in both loan and deposit volumes, supported by strategic initiatives and a strong focus on customer relationships.