LINKBANCORP, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>LINKBANCORP, Inc. has filed its 2023 annual report (10-K), providing a comprehensive overview of its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

LINKBANCORP, Inc. (LNKB) filed a Annual Report (10-K) with the SEC on March 29, 2024. LINKBANCORP, Inc. filed its 2023 Form 10-K on March 29, 2024. The filing covers the fiscal year ending December 31, 2023. Key dates and financial data points from 2022 and 2023 are referenced. The company is classified under SIC code 6022 for State Commercial Banks. The filing includes details on various loan portfolio segments and asset classifications.

Why It Matters

For investors and stakeholders tracking LINKBANCORP, Inc., this filing contains several important signals. This 10-K filing is crucial for investors and analysts to assess LINKBANCORP's financial health, operational performance, and strategic direction over the past fiscal year. The detailed financial data and risk factors presented will inform investment decisions and provide insights into the company's position within the commercial banking sector.

Risk Assessment

Risk Level: medium — LINKBANCORP, Inc. shows moderate risk based on this filing. The company operates in the commercial banking sector, which is subject to significant regulatory oversight and economic fluctuations, as indicated by the detailed reporting of loan portfolio segments and past-due receivables.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand LINKBANCORP's performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-29 — Filing Date (Date the 10-K was filed)
• 6022 — SIC Code (Standard Industrial Classification for State Commercial Banks)
• PA — State of Incorporation (Pennsylvania)

Key Players & Entities

• LINKBANCORP, Inc. (company) — Filer name and company conformed name
• 0000950170-24-038491 (other) — Accession number for the filing
• 20240329 (date) — Filing date
• 20231231 (date) — Fiscal year end date
• PA (location) — State of incorporation
• 6022 (other) — Standard Industrial Classification code
• PartnersBancorp (company) — Mentioned in relation to a change
• 1250 CAMP HILL BYPASS (address) — Business and mailing address

FAQ

Risk Factors

• Loan Portfolio Risk [medium — financial]: The filing details various loan portfolio segments including Commercial and Industrial, Commercial Real Estate, Municipal Loans, Consumer, and Agriculture, with specific data on past-due receivables (30-59 days, >=90 days) and substandard assets.
• Accounting Standards Updates [low — regulatory]: References to Accounting Standards Update ASU 2014-09 indicate potential impacts from new revenue recognition standards.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-29: Filing Date — Date LINKBANCORP, Inc. filed its 10-K.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share LNKB The NASDAQ
• $7.50 — mon stock at a public offering price of $7.50 per share and thereafter the Company's
• $34.7 million — t. The Company received net proceeds of $34.7 million after deducting underwriting discounts
• $2.5 million — derwriting discounts and commissions of $2.5 million and other offering expenses of $1.1 mil
• $1.1 million — million and other offering expenses of $1.1 million. The Company contributed $20.0 million
• $20.0 million — f $1.1 million. The Company contributed $20.0 million in capital to the Bank in October 2022.
• $10.0 million — ANCORP completed a private placement of $10.0 million with certain directors of LINKBANCORP a
• $2.67 b — al consolidated assets of approximately $2.67 billion, total loans of approximately $2.
• $2.24 b — 7 billion, total loans of approximately $2.24 billion, total deposits of approximately
• $2.30 billion — illion, total deposits of approximately $2.30 billion and total consolidated shareholders' eq
• $265.8 million — d shareholders' equity of approximately $265.8 million. LINKBANCORP's principal executive of
• $946.8 million — er 30, 2023; Total deposits grew from $946.8 million at December 31, 2022 to $2.30 billion a
• $927.9 million — 142.9%; Total loans grew 141.4% from $927.9 million at December 31, 2022 to $2.24 billion a
• $2.24 billion — $927.9 million at December 31, 2022 to $2.24 billion at December 31, 2023; Maintained stro
• $238.3 million — nding . As of December 31, 2023, we had $238.3 million in commercial business loans, represent

Filing Documents

• lnkb-20231231.htm (10-K) — 6601KB
• lnkb-ex21_1.htm (EX-21.1) — 4KB
• lnkb-ex23_1.htm (EX-23.1) — 7KB
• lnkb-ex31_1.htm (EX-31.1) — 14KB
• lnkb-ex31_2.htm (EX-31.2) — 14KB
• lnkb-ex32.htm (EX-32) — 7KB
• lnkb-ex97.htm (EX-97) — 44KB
• img159094136_0.jpg (GRAPHIC) — 14KB
• 0000950170-24-038491.txt (&nbsp;) — 30758KB
• lnkb-20231231.xsd (EX-101.SCH) — 3168KB
• lnkb-20231231_htm.xml (XML) — 8064KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 31 Item 1C. Cybersecurity 31 Item 2.

Properties

Properties 32 Item 3.

Legal Proceedings

Legal Proceedings 35 Item 4. Mine Safety Disclosures 35 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36 Item 6. Reserved 36 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 51 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 105 Item 9A.

Controls and Procedures

Controls and Procedures 105 Item 9B. Other Information 105 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 106 PART III Item 10. Directors, Executive Officers and Corporate Governance 106 Item 11.

Executive Compensation

Executive Compensation 106 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 106 Item 13. Certain Relationships and Related Transactions, and Director Independence 106 Item 14. Principal Accounting Fees and Services 106 PART IV Item 15. Exhibits, Financial Statement Schedules 107 Item 16. Form 10-K Summary 110 1

Forward Looking Statements

Forward Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 ("Exchange Act"), which can be identified by the use of words such as "estimate," "project," "believe," "intend," "anticipate," "plan," "seek," "expect" or words of similar meaning, or future or conditional verbs, such as "will," "would," "should," "could," or "may." A forward-looking statement is neither a prediction nor a guarantee of future events. These forward-looking statements include, but are not limited to: estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in market interest rates that reduce our margins and yields, reduce the fair value of financial instruments or reduce our volume of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make, whether held in portfolio or sold in the secondary market; general economic conditions, either nationally or in our market area, that are worse than expected; competition within our market area that is stronger than expected; ch

Business

Item 1. Business . Description of Business LINKBANCORP, Inc. ("LINKBANCORP" or the "Company") was incorporated under the laws of the Commonwealth of Pennsylvania on April 6, 2018 and is a bank holding company under the Bank Holding Company Act of 1956, as amended. In October 2018, LINKBANCORP became a bank holding company when it completed the acquisition of Stonebridge Bank, which was subsequently renamed LINKBANK. On September 18, 2021, the Company completed its merger with GNB Financial Services, Inc. ("GNBF") and its wholly owned subsidiary, The Gratz Bank pursuant to which GNBF merged with and into the Company with the Company as the surviving corporation and LINKBANK merged with and into The Gratz Bank, with The Gratz Bank as the surviving institution (collectively, the "Gratz Merger"). Effective November 4, 2022, The Gratz Bank legally changed its name and began to operate under one brand under the name LINKBANK (the "Bank"). In September 2022, the Company completed its initial public offering ("IPO") whereby it issued and sold 5,101,205 shares of common stock at a public offering price of $7.50 per share and thereafter the Company's common shares began trading on the Nasdaq Capital Market. The Company received net proceeds of $34.7 million after deducting underwriting discounts and commissions of $2.5 million and other offering expenses of $1.1 million. The Company contributed $20.0 million in capital to the Bank in October 2022. On November 30, 2023, the Company completed its merger with Partners Bancorp ("Partners"), and its wholly owned subsidiaries, The Bank of Delmarva and Virginia Partners Bank, pursuant to which Partners merged with and into the Company with the Company as the surviving corporation (the "Partners Merger"). The Bank of Delmarva and Virginia Partners Bank merged with and into LINKBANK with LINKBANK as the surviving bank (the "Bank Mergers"). In connection with the announcement of the Partners Merger in the first quarter of 202

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