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HARRISBURG - LINKBANCORP, Inc. (NASDAQ:LNKB), the parent company of LINKBANK, reported net income of $7.4 million, or $0.20 per diluted share, for the quarter ended June 30, 2025, compared to $15.3 million, or $0.41 per diluted share, for the first quarter of 2025. The company, currently trading at a P/E ratio of 7.49, is showing signs of being undervalued according to InvestingPro analysis.
The company’s board of directors declared a quarterly cash dividend of $0.075 per share, payable on September 15, 2025, to shareholders of record on August 29, 2025. With an attractive dividend yield of 4.09%, the stock is currently trading near its 52-week high of $7.98.
Second quarter results reflected stable core earnings with an annualized return on average assets of 1.05%, compared to 2.19% in the first quarter. The significant difference between quarters was due to the first quarter including an $11.1 million pre-tax gain from the sale of banking operations and branches in New Jersey.
Total loans grew to $2.36 billion at quarter-end, up from $2.27 billion at March 31, representing a quarterly increase of $82.7 million or 14.58% annualized. Total deposits reached $2.46 billion, up from $2.43 billion at the end of the previous quarter.
Credit quality improved as non-performing assets declined by $4.2 million to $21.9 million, representing 0.76% of total assets, compared to $26.0 million or 0.91% of total assets at March 31. This decrease was driven by resolutions to several loan relationships.
The bank’s regulatory capital ratios remained well above the minimums to be considered "well capitalized," with a Total Capital Ratio of 12.43% and Tier 1 Capital Ratio of 11.51% as of June 30, 2025. InvestingPro data shows the company maintains a "GOOD" overall Financial Health Score, with particularly strong marks in relative value and growth metrics. Subscribers can access detailed analysis and additional financial health indicators.
Net interest income before the provision for credit losses was $24.9 million for the second quarter, compared to $25.8 million in the first quarter. Net interest margin was 3.80%, down from 3.94% in the previous quarter.
The company reported that these financial results are based on a press release statement. InvestingPro subscribers have access to additional insights, including multiple ProTips and comprehensive financial metrics that can help better evaluate LINKBANCORP’s performance and potential.
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