LINKBANCORP Reports 27.6% Increase in Net Income for Q2 2025

LINKBANCORP, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $7.4 million, or $0.20 per diluted share, compared to $5.8 million, or $0.16 per diluted share, for the same period in 2024. This represents a year-over-year increase of approximately 27.6%. For the first half of 2025, net income reached $22.7 million, significantly up from $11.5 million in the prior year. The increase in profitability was primarily driven by a rise in noninterest income, which included an $11.1 million gain from the sale of the New Jersey operations, and a decrease in interest expense.

Total assets as of June 30, 2025, stood at $2.89 billion, reflecting a modest increase of $7.8 million, or 0.27%, from $2.88 billion at the end of 2024. The growth in assets was largely attributed to a $102.6 million increase in net loans receivable, which rose to $2.33 billion, and a $24 million increase in securities available for sale. However, this was partially offset by a decrease in cash and cash equivalents, which fell by $11 million to $155.1 million, and a reduction in assets held for sale.

In terms of operational metrics, LINKBANCORP's total deposits increased by $95.8 million, or 4.1%, to $2.46 billion, driven by new account openings and growth in interest-bearing demand deposits. The company reported a total loan portfolio of $2.36 billion, with notable increases in commercial real estate loans, particularly in the multifamily and owner-occupied segments. The allowance for credit losses on loans decreased to $24.7 million, representing 1.05% of total gross loans, down from 1.17% at the end of 2024.

Strategically, 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. This transaction is part of the company's broader strategy to streamline operations and focus on core markets. The company also continues to manage its capital effectively, maintaining a well-capitalized status under regulatory standards, with total shareholders' equity increasing to $298 million as of June 30, 2025.

Looking ahead, LINKBANCORP aims to leverage its recent operational changes and market position to enhance profitability and shareholder value. The company remains focused on its community banking mission, emphasizing strong relationships and service offerings tailored to small businesses and nonprofit organizations. Management anticipates that ongoing economic conditions and strategic initiatives will support continued growth in both loans and deposits in the coming quarters.