Executive Summary

Record first full post-merger quarter: net income $5.73M ($0.15 diluted EPS) on materially higher net interest income as NIM expanded to 4.03% from 3.55% in Q4; adjusted EPS $0.16 .
Balance sheet growth and mix improved: deposits rose to $2.39B (+$87.6M QoQ), cash and equivalents increased to $172.3M; net loans were $2.22B with muted growth as integration continued .
Asset quality remained strong: NPAs $6.7M (0.25% of assets) and ACL/loans 1.06%; provision was $40K versus $9.8M in Q4 (Merger day-one CECL) .
Cost actions and integration progressing: 14% headcount reduction since close and branch rationalization underway; management expects operational efficiencies to support profitable growth .
Post-quarter catalyst: agreement to sell three New Jersey branches (~$105M deposits, ~$123M loans) to re-allocate capital to core PA/Northern VA/MD markets; expected close 2H24 .

What Went Well and What Went Wrong

What Went Well

Material NIM and NII expansion: NIM rose 48 bps QoQ to 4.03% and net interest income increased to $24.9M from $14.3M, driven by lower-cost deposits from legacy Partners and purchase accounting accretion .
Strong funding and liquidity: deposits climbed to $2.39B (+$87.6M QoQ) and cash/equivalents to $172.3M, as deposit growth outpaced net loan growth and the company extended liability maturities (long-term FHLB) .
Integration and cost initiatives: management highlighted “significant progress” on integration with a “14% reduction in headcount” and branch rationalization advancing; “Loan activity … was consistent with our expectations and solid deposit growth will support growing loan pipelines” .

What Went Wrong

Core expense run-rate higher: while reported noninterest expense fell to $19.3M from $22.3M due to lower one-time charges, underlying noninterest expense increased to $19.2M vs $12.8M in Q4, reflecting added headcount/infrastructure and core deposit intangible amortization; personnel costs also included post-conversion support and higher incentives .
Funding costs edged up: cost of funds increased to 2.33% from 2.28% in Q4, partially offsetting asset yield gains .
Muted loan growth and some reliance on brokered CDs: net loans were essentially flat QoQ (+$4.3M gross) and brokered CDs increased $27.2M to $146.7M, indicating some use of wholesale deposits during integration .

Financial Results

Metric	Q1 2023	Q4 2023	Q1 2024
Net Interest Income ($MM)	$7.95	$14.32	$24.88
Noninterest Income ($MM)	$(1.85)	$1.18	$1.73
Net Income ($MM)	$(1.55)	$(13.00)	$5.73
Diluted EPS ($)	$(0.10)	$(0.56)	$0.15
Net Interest Margin (%)	2.95%	3.55%	4.03%
Efficiency Ratio (%)	126.82%	143.86%	72.33%
Total Deposits ($B)	$0.98	$2.30	$2.39
Net Loans ($B)	$0.93	$2.22	$2.22
Non-performing Assets (% of Assets)	0.20%	0.27% (as shown in Q1 PR tables)	0.25%

Notes: The Q4 2023 8‑K initially reported NPAs of $9.0M (0.34% of assets) at 12/31/23, while the Q1 2024 press release tables show $7.25M (0.27%); LNKB’s Q1 release appears to update or restate the year-end statistic versus .

KPIs

KPI	Q1 2023	Q4 2023	Q1 2024
ROA (annualized)	-0.53%	-3.01%	0.86%
ROE (annualized)	-4.56%	-28.24%	8.63%
Tangible Common Equity / Tangible Assets (%)	8.90%	7.09%	6.91%
ACL / Total Loans (%)	1.11%	1.06%	1.06%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quantitative financial guidance (revenue, margins, opex, tax, etc.)	FY 2024	None disclosed	None disclosed	Maintained (no formal guidance)
Strategic footprint (branch portfolio)	2H 2024 (expected close)	N/A	Divest NJ ops: ~$105M deposits, ~$123M loans to American Heritage FCU; close expected 2H24	New strategic action

Earnings Call Themes & Trends

No Q1 2024 earnings call transcript was available in our document set.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 2024)	Trend
Merger integration & cost saves	Q3’23: pending Partners merger; focus on margin stabilization and core deposits . Q4’23: one-time merger costs drove net loss; post-close core results solid .	First full post-merger quarter; 14% headcount reduction; branch rationalization advancing .	Improving efficiency as integration progresses.
Margin trajectory	Q3’23 NIM 2.89% (+8 bps QoQ) . Q4’23 NIM 3.55% (+66 bps QoQ) .	NIM 4.03% (+48 bps QoQ) on lower-cost deposits, accretion; cost of funds up slightly .	Positive momentum.
Deposits & liquidity	Q3’23: steady deposit growth; uninsured deposit monitoring . Q4’23: deposits up to $2.30B; noninterest-bearing 28.5% .	Deposits $2.39B; cash $172.3M; brokered CDs +$27.2M; enhanced liquidity .	Higher balances; mix optimization ongoing.
Asset quality & CECL	Q3’23: negative provision; NPAs 0.24% . Q4’23: $9.8M provision (day-one CECL); NPAs initially disclosed 0.34% .	Provision $40K; NPAs 0.25%; ACL 1.06% .	Stable/strong credit metrics post-merger.
Footprint optimization	Q3’23: pre-merger positioning . Q4’23: conversion completed Dec 4, 2023 .	Sale of NJ operations announced to re-allocate capital to core/growth markets .	Sharpening market focus.

Management Commentary

“We are very pleased by the strong results of the first quarter of 2024, which represents the first full quarter following completion of our merger with Partners Bancorp.”
“We have continued to make significant progress in integrating our institutions… including recognizing a 14% reduction in headcount since the close of the transaction and positive steps in implementing our bank-wide branch rationalization initiative.”
“Loan activity during the quarter was consistent with our expectations and solid deposit growth will support growing loan pipelines.”
On divestiture: The NJ branch sale “will enable us to re-allocate capital toward our core Pennsylvania markets and accelerate growth in the robust Northern Virginia and Maryland markets.”

Q&A Highlights

No Q1 2024 earnings call transcript was available for LNKB in our document set; therefore, there are no transcript-based Q&A highlights to report.

Estimates Context

Wall Street consensus (S&P Global) for Q1 2024 EPS and revenue was not available in our data pull; as a result, we cannot assess beat/miss versus consensus for this quarter. We attempted to retrieve S&P Global estimates but did not obtain values.

Key Takeaways for Investors

First full post-merger quarter delivered a sharp step-up in core earnings power: NIM expanded to 4.03% and net interest income rose to $24.9M, translating to $0.15 diluted EPS despite higher core operating costs from the combined platform .
Funding and liquidity position strengthened (deposits $2.39B; cash $172.3M), providing dry powder for loan pipeline conversion as integration normalizes .
Credit remains a relative strength (NPAs 0.25%, ACL/loans 1.06%), and provision normalized to $40K after the Q4 day‑one CECL charge tied to acquired loans .
Near-term opex optics may remain elevated (core deposit intangible amortization, integration build), but efficiency ratio improved markedly to 72.3% with further synergy capture implied by headcount/branch actions .
Strategic pruning via NJ branch sale should improve focus and capital allocation to faster-growth core markets, a potential medium-term ROA/ROE catalyst post-close (2H24 expected) .
Watch deposit mix and funding costs: cost of funds ticked up to 2.33% and brokered balances rose; pace of remixing toward core accounts will be important for sustaining NIM gains .
Lack of formal guidance and limited external estimates make tracking quarterly trajectory more dependent on core KPIs (NIM, efficiency, deposit mix, credit) until a fuller cadence of post-merger quarters is established .

Citations

Q1 2024 8‑K and press release with full financials and highlights:
Q4 2023 8‑K and press release for prior-quarter comparisons:
Q3 2023 8‑K and press release for trend context:
Post‑quarter strategic press releases: NJ branch sale (May 9, 2024) ; Chief Risk Officer appointment (May 7, 2024)

LINKBANCORP, Inc. (LNKB)·Q1 2024 Earnings Summary