LINKBANCORP Q2 adjusted net income misses estimates

Overview

• LINKBANCORP Q2 net income falls to $7.4 mln, misses analyst estimates

• Co's adjusted EPS meets expectations, per LSEG data

• Total loans saw a quarterly rise of $82.7 mln, indicating robust balance sheet growth

• Non-performing assets decline, improving credit quality

Outlook

• Company focuses on improving operating efficiency and expanding noninterest income

Result Drivers

• CORE EARNINGS - Stable core earnings with annualized return on average assets at 1.05% for Q2, unchanged from Q1

• BALANCE SHEET GROWTH - Total loans increased by $82.7 mln or 14.58% annualized, and total deposits grew by $22.7 mln, or 3.74% annualized, excluding the impact of the Branch Sale

• CREDIT QUALITY - Non-performing assets declined by $4.2 mln to $21.9 mln, driven by resolutions to several loan relationships, improving the ratio of allowance for credit losses-loans to nonperforming assets to 112.68%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for LINKBANCORP Inc is $8.25, about 11% above its July 25 closing price of $7.34

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn5rwryRa