Net interest income grew to $27.1 million in 2025Q4, but profitability remains constrained by a stagnant 0.9% net interest margin and a 60.7% decline in quarterly EPS.
| Net Interest Income | 104.29M | 99.89M | 38.71M | 32.98M | 16.11M | 11.57M |
| NII Growth % | 4.4% | 158.05% | 17.36% | 104.8% | 39.16% | - |
| Net Interest Margin % | 3.4% | 3.47% | 1.45% | 2.83% | 1.73% | 2.69% |
| Interest Income | 164.59M | 158.72M | 65.2M | 40.26M | 18.5M | 14.29M |
| Interest Expense | 60.3M | 58.83M | 26.49M | 7.28M | 2.39M | 2.72M |
| Loan Loss Provision | 8.17M | 257K | 9.29M | 1.29M | 648K | 184K |
| Non-Interest Income | 10.82M | 8.86M | 1.09M | 2.96M | 2.14M | 1.75M |
| Non-Interest Income % | 6.17% | 5.29% | 1.64% | 6.84% | 10.37% | 10.93% |
| Total Revenue | 175.41M | 167.59M | 66.28M | 43.22M | 20.64M | 16.05M |
| Revenue Growth % | 4.67% | 152.83% | 53.36% | 109.45% | 28.61% | - |
| Non-Interest Expense | 64.34M | 74.9M | 45.83M | 27.83M | 17.5M | 8.31M |
| Efficiency Ratio | 36.68% | 44.7% | 69.14% | 64.39% | 84.79% | 51.77% |
| Operating Income | 42.6M | 33.59M | -15.33M | 6.82M | 100K | 4.84M |
| Operating Margin % | 24.29% | 20.05% | -23.13% | 15.78% | 0.48% | 30.15% |
| Operating Income Growth % | 26.81% | 319.16% | -324.77% | 6720% | -97.93% | - |
| Pretax Income | 42.6M | 33.59M | -15.33M | 6.82M | 100K | 4.84M |
| Pretax Margin % | 24.29% | 20.05% | -23.13% | 15.78% | 0.48% | 30.15% |
| Income Tax | 9.09M | 7.39M | -3.36M | 1.22M | -189K | 645K |
| Effective Tax Rate % | 21.34% | 21.99% | 21.93% | 17.92% | -189% | 13.33% |
| Net Income | 33.51M | 26.21M | -11.97M | 5.6M | 289K | 4.19M |
| Net Margin % | 19.1% | 15.64% | -18.06% | 12.95% | 1.4% | 26.13% |
| Net Income Growth % | 27.86% | 318.99% | -313.79% | 1837.02% | -93.11% | - |
| Net Income (Continuing) | 33.51M | 26.21M | -11.97M | 5.6M | 289K | 4.19M |
| EPS (Diluted) | 0.90 | 0.71 | -0.67 | 0.49 | 0.04 | 0.74 |
| EPS Growth % | 26.76% | 205.97% | -236.73% | 1128.07% | -94.61% | - |
| EPS (Basic) | 0.90 | 0.71 | -0.67 | 0.49 | 0.04 | 0.74 |
| Diluted Shares Outstanding | 37.42M | 37.11M | 17.75M | 11.31M | 7.25M | 5.69M |
Commercial Real Estate Concentration
According to the provided quarterly income statements, LNKB's net interest income reached $27.1 million in 2025Q4, reflecting a 6.2% growth rate, yet the trajectory remains sensitive to the rising cost of interest-bearing liabilities that have begun to offset gains from the bank's expanded commercial loan portfolio.
The bank's NII expansion appears to be driven by inorganic growth and portfolio scaling rather than organic yield improvement. Investors should monitor whether the current NII growth can be sustained if deposit betas continue to rise, as the bank's reliance on interest-bearing funding sources may limit further margin expansion.
As reported in financial statements, LNKB's net interest margin has remained stagnant at 0.9% throughout most of 2025, suggesting that the bank is struggling to pass through higher market rates to its borrowers while simultaneously facing increased competition for core deposits in its regional markets.
The lack of NIM expansion despite a higher rate environment implies that the bank's asset yields are not repricing as quickly as its funding costs. This stagnation warrants further investigation into the composition of the loan book and whether floating-rate assets are providing the expected hedge against rising interest expenses.
Based on the company's reported figures, the efficiency ratio fluctuated significantly, peaking at 42.5% in 2025Q4, which indicates that the bank is still navigating the operational complexities and integration costs associated with its recent aggressive acquisition strategy within the Mid-Atlantic corridor.
The volatility in the efficiency ratio suggests that management has yet to achieve the desired economies of scale from its recent mergers. Analysts should scrutinize whether the current expense base is structural or if further cost-rationalization efforts are required to bring the ratio back toward industry-standard levels.
Data from the 2025Q4 income statement reveals a notable spike in provision expense to $6.6 million, a significant departure from the minimal provisioning seen in previous quarters, which may indicate an emerging deterioration in credit quality within the bank's commercial and industrial loan portfolios.
This sharp increase in provisioning suggests that the bank is proactively addressing potential losses, likely due to the current macroeconomic environment impacting its borrowers. Investors should monitor whether this trend persists, as it could signal a broader shift in the bank's risk profile and future earnings capacity.
As indicated by the historical data, LNKB's earnings have been heavily impacted by non-recurring items and accounting adjustments, with EPS dropping 60.7% in 2025Q4, highlighting the difficulty in assessing the bank's true underlying profitability amidst ongoing merger-related integration and volatile credit loss provisioning.
The significant variance in quarterly EPS suggests that headline figures may not accurately reflect the bank's core operational performance. Analysts should be cautious of relying on trailing earnings, as the impact of purchase accounting and one-time charges likely masks the true run-rate of the combined entity.
Quick answers to the most common questions about buying LNKB stock.
LINKBANCORP, Inc. (LNKB) is profitable, generating $33.5M in net income for the fiscal year ending 2025 with a net profit margin of 19.1%.
LINKBANCORP, Inc. (LNKB) reported an operating income of $42.6M, resulting in an operating profit margin of 24.3%. This margin reflects the operational efficiency of the business before interest and taxes.
LINKBANCORP, Inc. (LNKB) generated $106.9M in gross profit for the year, representing a gross profit margin of 61.0%. This demonstrates the company's core pricing power and production efficiency.