LINKBANCORP Reports $15.3 Million Net Income in Q1 2025, Up from $5.7 Million Last Year

LINKBANCORP, Inc. reported significant financial performance improvements for the first quarter of 2025, with net income reaching $15.3 million, a substantial increase from $5.7 million in the same period last year. This translates to earnings per share of $0.41, compared to $0.15 in the prior year. The company's total interest and dividend income rose to $40.1 million, up from $38.8 million, primarily driven by an increase in interest income from loans, which amounted to $37.0 million, compared to $36.1 million in the previous year. The net interest income before provision for credit losses also saw a rise, increasing by 3.8% to $25.8 million.

In terms of operational changes, LINKBANCORP completed the sale of its New Jersey operations on March 31, 2025, which resulted in an after-tax gain of approximately $8.7 million. This transaction involved the sale of $105 million in loans and $87.1 million in deposits to American Heritage Federal Credit Union. The sale contributed significantly to the increase in non-interest income, which surged to $13.3 million from $1.7 million in the previous year, reflecting the impact of this strategic divestiture.

The company's total assets decreased slightly to $2.86 billion from $2.88 billion at the end of 2024, primarily due to the removal of assets held for sale related to the New Jersey branch sale. However, cash and cash equivalents increased by 32.6% to $220.2 million, bolstered by a net increase in deposits of $66.2 million. The total deposits rose to $2.43 billion, reflecting a 3.1% increase from the previous quarter. The loan portfolio also expanded, with net loans receivable increasing to $2.25 billion, up from $2.23 billion.

The provision for credit losses increased to $228,000 from $40,000 in the prior year, reflecting a proactive approach to managing potential credit risks. Non-performing loans rose to $26 million, or 1.15% of total gross loans, compared to $17.2 million, or 0.76%, at the end of 2024. The allowance for credit losses on loans was $26.6 million, representing 1.17% of total gross loans, consistent with the previous quarter.

Looking ahead, LINKBANCORP aims to continue its growth trajectory while managing risks associated with its loan portfolio and market conditions. The company remains focused on enhancing its community banking services and expanding its market presence, particularly following the recent merger with Partners Bancorp. The management's outlook emphasizes maintaining strong capital ratios and effective liquidity management to support ongoing operations and strategic initiatives.