Market Signal Briefing

The US government has been trying to execute a historic pivot with its Bitcoin holdings, shifting from a messy, case-by-case inventory of seized crypto into a strategic national reserve for almost a year now.

That ambition, often framed as a “digital Fort Knox,” is now facing a credibility test after allegations that roughly $40 million in crypto was siphoned from government-linked seizure wallets.

Even if the reported loss is small relative to the roughly $28 billion in Bitcoin the US is widely believed to control, the episode cuts at the core premise of the new posture. It raises doubts about whether Washington can manage a sovereign-scale Bitcoin balance sheet with reserve-grade security and auditable controls.

The alleged insider breachOver the weekend, blockchain investigator ZachXBT alleged that more than $40 million in crypto was siphoned from US government-linked seizure wallets.

ZachXBT linked the alleged theft to John Daghita, popularly known as Licks, who he said maintains family ties to the executive leadership of Command Services & Support (CMDSS), a private firm contracted to support US Marshals Service (USMS) crypto seizure operations.

Corporate filings indicate that Dean Daghita serves as president of CMDSS. The firm is based in Haymarket, Virginia, and is contracted by the USMS to manage and dispose of specific categories of seized cryptocurrency.

ZachXBT said he was able to connect John Daghita to the alleged theft after what he described as a “band-for-band” argument on Telegram, a dispute in which two individuals attempted to prove their wealth by comparing wallet balances.

The dispute allegedly culminated in a persona identified as “Lick” screen-sharing an Exodus wallet and moving large sums in real time.

That screen-shared activity provided a trail ZachXBT said he used to trace a cluster of addresses that is linked to more than $90 million in suspected illicit flows. Of this, roughly $24.9 million moved from a US-controlled wallet in March 2024.

This scenario spotlights a vulnerability that has less to do with sophisticated protocol exploits and more with custody governance, contractor access, and the kinds of human failure modes that tend to scale poorly when real money and real operational complexity collide.

Meanwhile, this is also not the first time federal crypto custody operations have faced scrutiny. In October 2024, a wallet linked to the Bitfinex hack proceeds was drained of approximately $20 million, though the funds were largely recovered.

Fragmentation creates riskIn popular imagination, the US government's roughly $28 billion Bitcoin position sounds like a single stockpile sitting behind a single set of controls.

US Government Bitcoin Holdings (Source: Bitcoin Treasuries)However, the operational reality for these assets is far more fragmented.

Custody arrangements for seized crypto are a patchwork of agencies, legal statuses, and storage solutions. Funds can sit at different points in the forfeiture pipeline, and “US holdings” is not a single ledger entry but rather a complex operational system.

That variance matters because security in a multi-agency mesh depends on process discipline, consistent standards, and the rapid migration of funds from temporary seizure wallets into long-term cold storage.

This is because a single custodian can be defended with fortress-like protocols.

However, a system involving multiple vendors and handoffs behaves differently. It relies on the consistency of controls across every node in the network, including the people and contractors who touch the process.

So, the ambiguity around which agency holds which keys and when expands the attack surface.

Thus, oversight can slip in the gaps between organizations, between temporary wallets and long-term storage, and between policy ambition and day-to-day operational reality.

In that context, the significance of this reported $40 million loss becomes bigger as it implies a process failure.

Such custody failure suggests unknown exposure elsewhere, especially if the weakness is rooted in vendor governance or insider access rather than a one-off technical exploit.

The contractor's “hard tail” vulnerabilityContractors like CMDSS are central to understanding this risk profile because they sit where the government’s custody system becomes most complicated.

A Government Accountability Office (GAO) decision from March 2025 confirmed that the USMS awarded CMDSS a contract to manage “Class 2–4 cryptocurrencies.”

The GAO document draws a distinction between asset classes that helps explain why contractors matter.

Class 1 assets are generally liquid and can be readily supported by standard cold storage. Class 2–4 assets, by contrast, are described as “less popular” and require specialized handling, often involving bespoke software or hardware wallets.

That is the hard tail of crypto custody, the long list of assets that are not simply Bitcoin and a handful of other liquid tokens, but the messy inventory that arrives through seizures. Managing those assets can require navigating different blockchains, unfamiliar signing flows, and complex liquidation requirements.

In practical terms, it creates a reliance on external expertise to manage the most challenging aspects of custody. Under this model, the government effectively outsources the messiest corner of crypto operations.

The GAO notes that contractors are strictly prohibited from using government assets for staking, borrowing, or investing.

But contractual prohibitions are not physical controls. They cannot, on their own, prevent misuse of a private key if human controls are bypassed.

That is why the allegations, framed as contractor ecosystem risk and social engineering rather than protocol failure, carry weight beyond the specific theft claim. If the system’s resilience depends on discipline across every vendor and handoff, then the weakest node becomes the most attractive target.

Notably, warnings about custody gaps are not new. A 2025 report highlighted that the USMS could not provide even a rough estimate of its BTC holdings and had previously relied on spreadsheets lacking adequate inventory controls. A 2022 Department of Justice Office of Inspector General audit explicitly warned that gaps like these could result in the loss of assets.

Is the US prepared to hodl?The stakes of these operational gaps have risen because US policy is shifting.

The White House has moved to establish a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile, with directives for the Treasury to administer custodial accounts where Bitcoin “shall not be sold.”

That policy change shifts the government’s role from a temporary custodian, historically associated with auctions and evidence disposal, to a long-term holder.

For years, the crypto markets treated the US government’s stash as a potential supply overhang, a source of latent selling pressure if seized coins were liquidated.

However, the strategic reserve framing shifts the lens, as the central question becomes custody credibility.

If Bitcoin is to be treated as a reserve asset analogous to gold, the standard investors will implicitly demand is vault-grade security, clear custodianship, consistent controls, and auditable procedures.

So, this alleged $40 million theft draws attention back to whether the infrastructure supporting this ambition still resembles an ad hoc evidence workflow or is being scaled for long-term stewardship.

This is because a large, well-known government Bitcoin hoard could become a prime target for malicious actors seeking to exploit a porous system. Crypto analyst Murtuza Merchant said:

“If criminals believe seized funds can be siphoned from government wallets, they may treat forfeiture as a temporary inconvenience, not an endpoint, especially if laundering routes exist through exchanges and cross-chain hops.”

Mentioned in this article

TL;DR

New Zealand is preparing to introduce Bitcoin and digital asset education as part of its financial literacy framework for students in Years 1–10. The content is expected to scale by age, starting with basic digital money concepts and moving toward more advanced topics such as wallets, security, and responsible use. A mandatory rollout is planned for 2027, positioning New Zealand among the early adopters of formal crypto education within a national curriculum.
New Zealand is moving to bring Bitcoin education into classrooms, linking digital assets to everyday financial literacy rather than treating them as a niche topic. The plan reflects a broader shift in how governments approach money in a world shaped by online payments, mobile banking, and emerging financial tools.

🇳🇿 NEW ZEALAND TO TEACH BITCOIN CRYPTO IN SCHOOLS

Digital currency will be added to the financial curriculum for Years 1–10 with full mandatory rollout in 2027. pic.twitter.com/ATdDxzDHsr

— Trending Bitcoin (@TrendingBitcoin) January 26, 2026

The initiative, shared by crypto-focused outlets and local observers, places Bitcoin and digital currency concepts inside a framework designed for Years 1–10. While curriculum details are still being finalized, the program is expected to become mandatory by 2027, meaning schools would deliver consistent instruction nationwide.

New Zealand Moves To Teach Bitcoin Through Financial Literacy Education officials have increasingly emphasized that students need practical skills for managing money, including saving, budgeting, and understanding digital transactions. Adding Bitcoin content fits into that direction, especially as more young people interact with digital payments long before they open a traditional bank account.

For younger students, lessons are likely to focus on what money is, how digital value can be transferred, and why security matters when using online tools. For older groups, schools may introduce how Bitcoin works at a basic level, what a wallet does, and how private keys differ from passwords. Risk awareness is expected to remain central, including scams, volatility, and responsible decision-making.

This approach also supports consumer protection goals. Teaching the fundamentals early can reduce confusion later, when students encounter crypto through social media, apps, or peers without structured guidance.

Global Education Shifts Toward Digital Assets And Bitcoin New Zealand’s direction mirrors a growing international interest in teaching modern finance earlier. Several education systems already cover topics such as online fraud prevention, digital identity, and electronic payments. Bitcoin education builds on those themes by introducing a new form of money that operates without a central issuer.

The move also aligns with New Zealand’s tech-friendly reputation in financial services, where digital banking and cashless payments are widely used. By focusing on knowledge instead of fear-based messaging, policymakers may help students develop clearer judgment when evaluating financial products later in life.

For the crypto industry, this kind of policy signals long-term adoption driven by understanding, not marketing.

The bitcoin price steadied a bit today after an early slide to $86,000 over the weekend, as traders weighed Federal Reserve risk, heavy recent liquidations, and growing technical pressure.

The largest cryptocurrency was up about 1% at $87,850 by midafternoon, after falling as low as $86,000.13 earlier in the session. Price action remained volatile, with market participants cautious about sharp reversals following a weekend selloff.

Attention is now centered on the Federal Reserve’s policy decision due Wednesday. The central bank is widely expected to keep interest rates in the 3.50%–3.75% range, but the meeting has drawn unusual scrutiny amid debate over the Fed’s independence. 

Recently, President Trump’s administration escalated its fight with Federal Reserve Chair Jerome Powell by starting a rare criminal-investigation threat tied to Powell’s oversight of a big Fed renovation project.

At the same time, Trump is pushing to reshape the central bank leadership as Powell’s term ends this spring, drawing legal pushback (including a Supreme Court case over Trump’s attempt to remove a Fed governor) and sparking a broader debate over the Fed’s independence from politics.

Crypto markets continue to absorb the impact of continued selloffs, which was exacerbated by forced liquidations across leveraged positions. 

U.S.-listed spot bitcoin exchange-traded funds remained a source of pressure. Spot bitcoin ETFs recorded $1.33 billion in net outflows in the week ending Jan. 23, marking the largest weekly outflow in nearly a year. 

The redemptions have contributed to selling pressure amid already fragile market conditions.

Corporate bitcoin accumulation persisted but failed to stabilize sentiment. Strategy., the software company that has shifted toward a leveraged bitcoin acquisition strategy, disclosed in a recent SEC filing that it purchased 2,932 bitcoin between Jan. 20 and Jan. 25 for approximately $264.1 million, paying an average of $90,061 per coin. 

The firm now holds 712,647 bitcoin, with the latest purchases financed primarily through its at-the-market equity offering program. These purchases did little to change the bitcoin price.

The company’s aggregate purchase price for its holdings stands at approximately $54.2 billion, including fees and expenses, translating to an average acquisition bitcoin price of $76,037.

Bitcoin price analysis According to Bitcoin Magazine analysts, the bitcoin price posted a sharp bearish reversal last week, closing the week near $86,588 after failing to hold momentum following a test of $98,000 resistance. The move marked a decisive loss of the $87,000 support level and shifted near-term market control back to sellers.

The $84,000 level is now critical. A sustained daily close below that support could accelerate downside pressure toward the $72,000–$68,000 zone, with a deeper retracement toward $58,000 possible if selling intensifies. 

Bulls are expected to defend $84,000 aggressively to avoid a broader breakdown.

On the upside, buyers must first reclaim $88,000 to stabilize price action. Additional resistance sits at $91,400 and $94,000, while $98,000 remains a major ceiling. A move above that level is considered unlikely in the near term, though a breakout could open a path toward $103,500.

Technical indicators reinforce the bearish outlook. Bitcoin price closed below the 100-week simple moving average, the MACD remains in bearish territory, and the relative strength index has turned lower again. 

This coming week is pivotal, with broader market earnings potentially influencing sentiment, though correlations with equities remain uncertain.

At the time of writing, the Bitcoin Fear and Greed Index is currently at 20 out of 100, signaling extreme fear among market participants. Historically, periods of extreme fear have coincided with heightened uncertainty and, at times, potential buying opportunities as prices trade below perceived value.

The bitcoin price is currently $87,698. It is currently -1% from its 7-day all-time high of $88,635, and 2% from its 7-day all-time low of $86,126.

Micah Zimmerman

Micah first discovered Bitcoin in 2018 but remained a skeptic on the sidelines for too long. Since 2021, he has covered crypto and business and now works as a news reporter for Bitcoin Magazine, based in North Carolina.

Journalist

Posted: January 27, 2026

Crypto asset manager Bitwise announced the launch of non-custodial yield strategies as a curator on Morpho on 26 January. This launch marks a measured step into decentralised finance as institutional interest in onchain yield continues to build.

The move represents Bitwise’s first direct participation in DeFi vault curation, positioning the firm as an active strategy manager rather than a custodial intermediary.

Vault structure targets overcollateralised lending yield The new offering allows users to allocate assets to Bitwise-curated vaults on Morpho that target an annualised yield of up to 6% through overcollateralised lending pools. 

The vaults are non-custodial, meaning users retain control of their assets while Bitwise defines allocation parameters and risk controls.

The firm has not disclosed initial deposits, vault size, or minimum allocation requirements.

Bitwise curator model avoids custody and regulatory exposure By acting as a curator rather than a custodian, Bitwise avoids taking direct control of client assets — a design choice that addresses long-standing institutional concerns around custody, operational risk, and regulatory exposure in decentralised finance.

The structure reflects a broader trend among asset managers exploring modular DeFi components, where strategy selection and risk management are layered on top of transparent onchain infrastructure rather than bundled into vertically integrated platforms.

Risks remain despite professional management Despite the involvement of an established asset manager, the strategy remains exposed to protocol-level and market risks inherent to decentralised lending. 

Yields are variable and depend on borrowing demand, collateral quality, and broader market conditions, while smart-contract risk and liquidation dynamics remain structural features of onchain lending markets.

Bitwise has not indicated whether the vaults are open to retail users or restricted to sophisticated or institutional participants, leaving questions around accessibility and regulatory positioning unresolved.

A test case for institutional DeFi participation The launch is best viewed as an early test of whether professionally curated, non-custodial vaults can attract sustained interest from institutions and sophisticated investors. 

Broader adoption may depend on performance across market cycles and on vault structures’ ability to deliver consistent, risk-adjusted returns without operational disruptions.

Final Thoughts Bitwise’s Morpho vault launch reflects growing institutional interest in non-custodial, onchain yield structures rather than custodial DeFi products. The initiative serves as a test case for whether professional curation can make decentralised lending more accessible to sophisticated investors.

DOGE is facing the risk of being sidelined from the broader bull run, as shifting market dynamics leave Dogecoin price predictions on an uncertain footing.

Journalist

Posted: January 27, 2026

After World Liberty Financial dropped to a low of $0.15, the altcoin rebounded to a high of $0.18, then retraced towards $0.16.

As of this writing, World Liberty Financial [WLFI] traded at $0.1641, down 6.21% on the daily charts. Before this slip, WLFI had been on an upward trajectory, rising by 2.56% on the weekly charts. 

This volatility to the upside has created a favorable environment for market participants to make strategic moves.

World Liberty Financial moves 250 million According to Onchain Lens, World Liberty Financial deposited 235 million WLFI, worth $40.63 million, into Binance.

This team’s wallet has not made any deposits into Binance since WLFI was launched, signaling a major market shift. Following the transfer, the team wallet still holds $1.7 billion worth of WLFI, according to Arkham data. 

Source: Arkham

In many cases, such a massive move indicates the market is preparing for market-making or liquidity.

For instance, one crypto analyst, 0xShonkovich, suggested that the transfers are likely an airdrop for USD1 holders since the program is expected to run for 4 weeks.

Despite that, holders and traders could interpret the transfers as bearish. As a result, market participants panic-sell even before the news is confirmed, creating significant sell pressure.

Selling pressure on the rise again On the 25th of January, buyers stepped into the market aggressively to defend $0.17 levels, but their efforts proved futile, as WLFI closed at a lower low.

This sentiment shifted drastically on the 26th of January, with participants across the market flipping bearish. As a result, the altcoin’s Spot Netflow turned positive, climbing to $5.18 million, a significant jump from -$2.33 million.

Source: CoinGlass

When this metric turns positive, it suggests that most traders increased their exchange deposits, a sign of increased selling.

Coupled with that, World Liberty Financial Top Holders increased outflows, offloading 254.9 million tokens compared to 240 million in inflows. As a result, the balance change turned negative, dropping to -14 million, suggesting increased selling from the group.

Source: Nansen

Historically, higher selling activity across market participants has accelerated downside momentum, leading to lower prices.

What’s next for WLFI? World Liberty Financial’s weakness returned to the market after the team transferred WLFI into exchanges. As a result, the altcoin’s Relative Strength Index (RSI) fell into the bearish zone after it formed a bearish crossover the previous day.

As such, RSI dropped to 47, which suggested that sellers stepped into the market, as noted earlier. At the same time, its Stochastic Momentum Index (SMI) dropped from 13 to 4.4, indicating strengthened downside momentum.

Source: TradingView

With these momentum indicators dropping to such areas, they suggested weakened upside momentum, with buyers displaced from the market.

Such market conditions leave WLFI vulnerable and could lead to further losses. If it happens, with sellers increasing spending, WLFI will seek support around $1.5.

However, if the market neutralizes the team’s transfers, WLFI will seek to reclaim $0.17 and target $0.19 in the short term.

Final Thoughts World Liberty Financial deposited 235 million WLFI, worth $40.63 million. WLFI declined 6.2% to a low of $0.1602 after investors flipped bearish and panic sold. 

Leadership transition reflects FUTR's shift from platform build to commercial scale across consumer finance Toronto, Ontario--(Newsfile Corp. - January 26, 2026) - The FUTR Corporation (TSXV: FTRC) (OTCQB: FTRCF) (FSE: QA20) (WKN: A4165Y) (ISIN: CA3609521057) ("FUTR" or the "Company"), creator of the FUTR Agent App which enables users to store, manage, access, and monetize their personal information and make real-time payments, today announced the appointment of Alex McDougall as Chief Executive Officer. Michael Hilmer, who previously held the role of Chief Executive Officer, will remain with the Company and has been appointed Vice Chairman.

January 26, 2026 16:00 ET  | Source: Priority Income Fund, Inc.

NEW YORK, Jan. 26, 2026 (GLOBE NEWSWIRE) -- Priority Income Fund, Inc. (“Priority Income Fund” or the “Fund”) announced today that it will redeem 790,000 of the 1,580,000 outstanding shares of its 6.000% Series J Term Preferred Stock Due 2028 (CUSIP: 74274W772; NYSE: PRIFPJ) (the “Series J Preferred Shares”) at a price of $25 per Series J Preferred Share, plus accrued but unpaid dividends per Series J Preferred Share from December 31, 2025, to but excluding, the Redemption Date (the “Redemption Price”). The redemption date will be February 25, 2026 (the “Redemption Date”).

On the Redemption Date, the Redemption Price will become due and payable on the Series J Preferred Shares that are redeemed and any dividends shall cease to accumulate on the Series J Preferred Shares that are redeemed from and after such date. Unless the Fund defaults in the payment of the Redemption Price, dividends on the Series J Preferred Shares that are redeemed will cease to accumulate on and after the Redemption Date, and the only remaining right of the holders of the Series J Preferred Shares that are redeemed is to receive payment of the Redemption Price.

The Series J Preferred Shares that are redeemed are held through The Depository Trust Company and will be redeemed in accordance with the applicable procedures. The shares of the Series J Preferred Shares to be redeemed shall be selected by lot (as determined by The Depository Trust Company).

This press release does not constitute a notice of redemption under the articles supplementary governing the shares.

Following redemption of such portion of the Series J Preferred Shares, the Fund will have outstanding shares of 7.00% Series D Term Preferred Stock due 2029 (NYSE: PRIF PRD), 7.000% Series K Cumulative Preferred Stock (NYSE: PRIF PRK), and 6.375% Series L Term Preferred Stock due 2029 (NYSE: PRIF PRL).

About Priority Income Fund
Priority Income Fund, Inc. is a registered closed-end fund that was created to acquire and grow an investment portfolio primarily consisting of senior secured loans or pools of senior secured loans known as collateralized loan obligations ("CLOs"). Such loans will generally have a floating interest rate and include a first lien on the assets of the respective borrowers, which typically are private and public companies based in the United States. The Fund is managed by Priority Senior Secured Income Management, LLC, which is led by a team of investment professionals from the investment and operations team of Prospect Capital Management L.P. (“Prospect”). For more information, visit https://www.priorityincomefund.com or call (212) 448-0702.

About Prospect Capital Management L.P.
Prospect, headquartered in New York City, is an SEC-registered investment adviser that, along with its predecessors and affiliates, has 38 years of experience investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of over 150 professionals who focus on credit-oriented investments yielding attractive current income. Prospect, together with its affiliates, has $9.8 billion of assets under management as of September 30, 2025. Prospect is the investment adviser to Prospect Capital Corporation (NASDAQ: PSEC).

Additional Information

Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future performance of Priority Income Fund, Inc. Words such as “believes," "expects," "projects," and “future" or similar expressions are intended to identify forward-looking statements. Any such statements, other than statements of historical fact, are highly likely to be affected by unknowable future events and conditions, including elements of the future that are or are not under the control of Priority Income Fund, Inc. and that Priority Income Fund, Inc. may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and Priority Income Fund, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

-

MILWAUKEE--(BUSINESS WIRE)--The Manitowoc Company, Inc. (NYSE: MTW) announced today that it will release its fourth-quarter 2025 and full-year 2025 results on Monday, February 9, 2026, after the close of market. The Company will host a conference call to discuss its results and outlook on Tuesday, February 10, 2026, at 10:00 a.m. ET (9:00 a.m. CT).

The conference call will be available via webcast on the Manitowoc website at http://ir.manitowoc.com in the “Events & Presentations” section. A replay of the conference call will also be available at the same location on the website.

About The Manitowoc Company, Inc.

The Manitowoc Company, Inc. was founded in 1902 and has over a 120-year tradition of providing high-quality, customer-focused products and support services to its markets. Manitowoc is one of the world's leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, and supports comprehensive product lines of mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, and tower cranes under the Grove, Manitowoc, MGX Equipment Services, National Crane, Potain, Shuttlelift, and Upfits by Aspen Equipment brand names.

More News From The Manitowoc Company, Inc.

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January 26, 2026 16:01 ET  | Source: C4 Therapeutics, Inc.

WATERTOWN, Mass., Jan. 26, 2026 (GLOBE NEWSWIRE) -- C4 Therapeutics, Inc. (C4T) (Nasdaq: CCCC), a clinical-stage biopharmaceutical company dedicated to advancing targeted protein degradation science, today announced that the independent directors serving on the Organization, Leadership and Compensation Committee of the Company’s Board of Directors approved the grant of non-qualified stock options to purchase 85,480 shares of the Company’s common stock to one new employee (the “Inducement Grant”), with the grant made on January 26, 2026 (the “Grant Date”). The Inducement Grant was granted as a material inducement to this individual entering into employment with C4T in accordance with Nasdaq Listing Rule 5635(c)(4).

The Inducement Grant has an exercise price per share that is equal to the closing price of C4T’s common stock on the Grant Date. The Inducement Grant will vest over a four-year period, with 25% of the shares vesting on the first-year anniversary of the employee’s start date, with the remainder of the shares vesting in thirty-six equal monthly installments thereafter, subject to the employee’s continued employment with C4T through each vesting date.

About C4 Therapeutics
C4 Therapeutics (C4T) (Nasdaq: CCCC) is a clinical-stage biopharmaceutical company dedicated to delivering on the promise of targeted protein degradation science to create a new generation of medicines that transforms patients’ lives. C4T is progressing targeted oncology programs through clinical studies and leveraging its TORPEDO® platform to efficiently design and optimize small-molecule medicines to address difficult-to-treat diseases. C4T’s degrader medicines are designed to harness the body’s natural protein recycling system to rapidly degrade disease-causing proteins, offering the potential to overcome drug resistance, drug undruggable targets and improve patient outcomes. For more information, please visit www.c4therapeutics.com.

Contacts:
Investors: 
Courtney Solberg
Associate Director, Investor Relations
[email protected]

Media: 
Loraine Spreen 
Senior Director, Corporate Communications & Patient Advocacy 
[email protected]

, /PRNewswire/ -- Sanmina Corporation ("Sanmina" or the "Company") (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the first quarter ended December 27, 2025 and outlook for its second fiscal quarter ending March 28, 2026.

First Quarter Fiscal 2026 Financial Highlights

Revenue: $3.19 billion GAAP operating margin: 2.3% GAAP diluted EPS: $0.89 Non-GAAP(1) operating margin: 6.0% Non-GAAP(1) diluted EPS: $2.38 Additional Highlights

Cash flow from operations: $179 million Free cash flow(2): $92 million Share repurchases: 516 thousand shares for $79 million Ending cash and cash equivalents: $1.42 billion (1) 

See Schedule 1 below for information regarding the items excluded from and our use of non-GAAP financial measures. A reconciliation of the non-GAAP financial information contained in this release to their most directly comparable GAAP measures is included in the financial statements furnished with this release.

(2)  

Free cash flow is defined as net cash provided by operating activity adjusted for net purchases of property and equipment. See Condensed Consolidated Cash Flow Statement included in the financial statements furnished with this release.

"Fiscal 2026 is off to a great start, with Q1 revenue and non-GAAP operating margin at the high-end of our outlook and non-GAAP EPS exceeding our outlook. In addition, the team did an excellent job delivering solid cash flow from operations," stated Jure Sola, Chairman and CEO of Sanmina Corporation. 

"Our Communications Networks and Cloud & AI Infrastructure end-markets continue to be strong as a result of ongoing demand for AI-driven hardware. The integration of ZT Systems is in line with our expectations and we are excited about the opportunities ahead. We remain focused on building broader and deeper partnerships with our customers, which enables us to deliver profitable growth, generate cash and maintain a healthy balance sheet to drive long-term shareholder value."

Second Quarter Fiscal 2026 Outlook
The following outlook is for the second fiscal quarter ending March 28, 2026. These statements are forward-looking and actual results may differ materially. 

Revenue between $3.1 billion to $3.4 billion Non-GAAP diluted earnings per share between $2.25 to $2.55 Safe Harbor Statement
The statements above relating to our financial outlook for the second quarter fiscal 2026 constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these statements as a result of a number of factors, including the risk that the integration of and expected benefits from the ZT Systems acquisition may not be realized or may take longer to realize than anticipated; adverse changes in the key markets we target, in particular the cloud and AI infrastructure sectors; the impact of recent or future changes in tariffs and trade policy, which may adversely affect our costs, supply chain, and customer demand; our reliance on a limited number of customers for a substantial portion of our sales; risks arising from our international operations and expansion into new geographic markets; geopolitical uncertainty, and the other risk factors set forth in the Company's annual and quarterly reports filed with the Securities Exchange Commission.

The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law.

Company Conference Call Information
Sanmina will hold a conference call to review its financial results for the first quarter and outlook for the second quarter of fiscal 2026 on Monday, January 26, 2026 at 5:00 p.m. ET (2:00 p.m. PT). The access numbers are: domestic 800-836-8184 and international 646-357-8785. The conference call will also be webcast live over the Internet. You can log on to the live webcast at Q1'26 Earnings. Additional information in the form of a slide presentation is available on Sanmina's website at www.sanmina.com. A replay of the conference call will be available for 48-hours. The access numbers are: domestic 888-660-6345 and international 646-517-4150, access code is 51961#.

About Sanmina
Sanmina Corporation, a Fortune 500 company, is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the industrial and energy, medical, defense and aerospace, automotive and transportation, communications networks, and cloud and AI infrastructure markets. Sanmina has facilities strategically located in key regions throughout the world. More information about the Company is available at www.sanmina.com.  

Sanmina Contact
Paige Melching
SVP, Investor Communications
408-964-3610

Logo - https://mma.prnewswire.com/media/10544/SANMINA_CORPORATION_LOGO.jpg

Sanmina Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(GAAP)

(Unaudited)

December 27,
2025

September 27,
2025

ASSETS

Current assets:

Cash and cash equivalents

$       1,415,541

$          926,267

Accounts receivable, net

2,646,068

1,400,129

Contract assets

430,906

425,944

Inventories

3,053,201

1,988,462

Prepaid expenses and other current assets

307,004

124,656

Total current assets

7,852,720

4,865,458

Property, plant and equipment, net

954,803

682,354

Deferred income tax assets

379,324

171,218

Goodwill

306,680

30,386

Other assets

307,501

108,757

Total assets

$       9,801,028

$       5,858,173

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$       2,348,214

$       1,578,895

Accrued liabilities

627,876

179,605

Deferred revenue and customer advances

1,250,508

878,474

Accrued payroll and related benefits

216,837

167,541

Short-term debt, including current portion of long-term debt

172,000

17,500

Total current liabilities

4,615,435

2,822,015

Long-term liabilities:

Long-term debt

1,998,601

282,974

Other liabilities

525,695

214,021

Total long-term liabilities

2,524,296

496,995

Stockholders' equity

2,661,297

2,539,163

Total liabilities and stockholders' equity

$       9,801,028

$       5,858,173

Sanmina Corporation

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

(GAAP)

(Unaudited)

Three Months Ended

December 27,
2025

December 28,
2024

Net sales

$     3,189,693

$     2,006,348

Cost of sales

2,947,331

1,838,433

Gross profit

242,362

167,915

Operating expenses:

Selling, general and administrative

114,886

70,845

Research and development

8,658

7,024

Acquisition and integration

43,363

—

Amortization of intangibles

1,187

—

Restructuring

670

1,436

Total operating expenses

168,764

79,305

Operating income

73,598

88,610

Interest income

8,058

3,396

Interest expense

(24,722)

(5,001)

Other income (expense), net

4,648

(729)

Interest and other, net

(12,016)

(2,334)

Income before income taxes

61,582

86,276

Provision for income taxes

9,827

15,392

Net income before noncontrolling interest

51,755

70,884

     Less: Net income attributable to noncontrolling interest

2,469

5,881

Net income attributable to common shareholders

$          49,286

$          65,003

Net income attributable to common shareholders per share:

Basic

$               0.91

$               1.20

Diluted

$               0.89

$               1.16

Weighted-average shares used in computing per share amounts:

Basic

54,160

54,206

Diluted

55,519

55,853

Sanmina Corporation

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

December 27,
2025

September 27,
2025

December 28,
2024

GAAP Operating income

$           73,598

$           78,465

$          88,610

GAAP Operating margin

2.3 %

3.7 %

4.4 %

Adjustments:

Stock compensation expense (1)

23,620

16,233

15,292

Amortization of inventory fair value adjustment (2)

49,000

—

—

Amortization of intangible assets (3)

1,720

—

—

Acquisition and integration charges (4)

43,363

27,082

—

Distressed customer charges (5)

—

—

6,872

Legal (6)

—

1,250

450

Restructuring

670

3,420

1,436

Non-GAAP Operating income

$         191,971

$         126,450

$        112,660

Non-GAAP Operating margin

6.0 %

6.0 %

5.6 %

GAAP Net income attributable to common shareholders

$           49,286

$           48,066

$          65,003

Adjustments:

Operating income adjustments (see above)

118,373

47,985

24,050

Legal (6)

(3,745)

—

—

Gain on sale of investment (7)

(4,710)

—

—

Loss on debt extinguishment

1,345

—

—

Adjustments for taxes (8)

(28,199)

(4,604)

(8,880)

Non-GAAP Net income attributable to common shareholders

$         132,350

$           91,447

$          80,173

GAAP Net income attributable to common shareholders per share:

Basic

$               0.91

$               0.90

$               1.20

Diluted

$               0.89

$               0.88

$               1.16

Non-GAAP Net income attributable to common shareholders per share:

Basic

$               2.44

$               1.71

$               1.48

Diluted

$               2.38

$               1.67

$               1.44

Weighted-average shares used in computing per share amounts:

Basic

54,160

53,567

54,206

Diluted

55,519

54,860

55,853

(1)

Stock compensation expense

Cost of sales

$             5,995

$             5,225

$            5,024

Selling, general and administrative

17,274

10,621

9,962

Research and development

351

387

306

Total

$           23,620

$           16,233

$          15,292

(2)

Relates to the amortization of the fair value step up on inventory from the ZT acquisition.

(3)

Relates to amortization of intangible assets acquired from the ZT acquisition.

(4)

Relates to fees on the bridge loan facility as well as professional and legal fees incurred in connection with the ZT acquisition.

(5)

Relates to accounts receivable and inventory write-downs or recoveries associated with distressed customers.

(6)

Represents expenses, charges and recoveries associated with certain legal matters.

(7)

Related to gain on sale of equity interest.

(8)

Adjustments for taxes include the tax effects of the various adjustments we exclude from our non-GAAP measures, and adjustments related to deferred tax and discrete tax items.

Sanmina Corporation

Condensed Consolidated Cash Flow

(in thousands)

(GAAP)

(Unaudited)

Three Months Ended

December 27,
2025

December 28,
2024

Net income before noncontrolling interest

$          51,755

$          70,884

Depreciation and intangibles amortization

39,531

31,845

Amortization of inventory fair value adjustment

49,000

—

Other, net

17,794

21,154

Net change in net working capital

20,648

(59,945)

Cash provided by operating activities

178,728

63,938

Proceeds from sales (purchase) of investments

8,710

(300)

Net purchases of property, plant and equipment

(86,769)

(16,921)

Cash paid for businesses acquisition, net of cash acquired

(1,355,801)

—

Cash used in investing activities

(1,433,860)

(17,221)

Proceeds from long-term debt

2,200,000

—

Repayment of borrowings

(301,875)

(4,375)

Repurchases of common stock

(79,794)

(16,113)

Payments for tax withholding on stock-based compensation

(33,715)

(8,343)

Debt issuance costs

(28,703)

—

Cash provided by (used in) financing activities

1,755,913

(28,831)

Effect of exchange rate changes

(187)

(1,344)

Net change in cash, cash equivalents and restricted cash equivalents

$        500,594

$          16,542

Free cash flow:

Cash provided by operating activities

$        178,728

$          63,938

Net purchases of property & equipment

(86,769)

(16,921)

$          91,959

$          47,017

Schedule 1

The statements above and financial information provided in this earnings release include non-GAAP measures of operating income, operating margin, net income and earnings per share. Management excludes from these measures stock-based compensation, restructuring, acquisition and integration expenses, impairment charges, amortization charges and other unusual or infrequent items, as adjusted for taxes, as more fully described below.

Management excludes these items principally because such charges or benefits are not directly related to the Company's ongoing core business operations. We use such non-GAAP measures in order to (1) make more meaningful period-to-period comparisons of the Company's operations, both internally and externally, (2) guide management in assessing the performance of the business, internally allocating resources and making decisions in furtherance of Company's strategic plan, (3) provide investors with a better understanding of how management plans and measures the business and (4) provide investors with a better understanding of our ongoing, core business. The material limitations to management's approach include the fact that the charges, benefits and expenses excluded are nonetheless charges, benefits and expenses required to be recognized under GAAP and, in some cases, consume cash which reduces the Company's liquidity. Management compensates for these limitations primarily by reviewing GAAP results to obtain a complete picture of the Company's performance and by including a reconciliation of non-GAAP results to GAAP results in its earnings releases.

Additional information regarding the economic substance of each exclusion, management's use of the resultant non-GAAP measures, the material limitations of management's approach and management's methods for compensating for such limitations is provided below.

Stock-based Compensation Expense, which consists of non-cash charges for the estimated fair value of equity awards granted to employees and directors, is excluded in order to permit more meaningful period-to-period comparisons of the Company's results since the Company grants different amounts and value of equity awards each quarter. In addition, given the fact that competitors grant different amounts and types of equity awards and may use different valuation assumptions, excluding stock-based compensation permits more accurate comparisons of the Company's core results with those of its competitors.

Restructuring, Acquisition and Integration Expenses, which consist of employee severance, lease termination costs, exit costs, environmental investigation, remediation and related employee costs and other charges primarily related to closing and consolidating manufacturing facilities and those associated with the acquisition and integration of acquired businesses, are excluded because such charges (1) can be driven by the timing of acquisitions and exit activities which are difficult to predict, (2) are not directly related to ongoing business results and (3) generally do not reflect expected future operating expenses. In addition, given the fact that the Company's competitors complete acquisitions and adopt restructuring plans at different times and in different amounts than the Company, excluding these charges or benefits permits more accurate comparisons of the Company's core results with those of its competitors. Items excluded by the Company may be different from those excluded by the Company's competitors and restructuring and integration expenses include both cash and non-cash expenses. Cash expenses reduce the Company's liquidity. Therefore, management also reviews GAAP results including these amounts.

Impairment Charges for Goodwill and Other Assets, which consist of non-cash charges, are excluded because such charges are non-recurring and do not reduce the Company's liquidity. In addition, given the fact that the Company's competitors may record impairment charges at different times, excluding these charges permits more accurate comparisons of the Company's core results with those of its competitors.

Amortization Charges, which consist of non-cash charges impacted by the timing and magnitude of acquisitions of businesses or assets, are also excluded because such charges do not reduce the Company's liquidity. In addition, such charges can be driven by the timing of acquisitions, which is difficult to predict. Excluding these charges permits more accurate comparisons of the Company's core results with those of its competitors because the Company's competitors complete acquisitions at different times and for different amounts than the Company.

Other Unusual or Infrequent Items, such as charges or benefits associated with distressed customers, expenses, charges and recoveries relating to certain legal matters, and gains and losses on sales of assets, are excluded because such items are typically non-recurring, difficult to predict or not directly related to the Company's ongoing or core operations and are therefore not considered by management in assessing the current operating performance of the Company and forecasting earnings trends. However, items excluded by the Company may be different from those excluded by the Company's competitors. In addition, these items include both cash and non-cash expenses. Cash expenses reduce the Company's liquidity. Management compensates for these limitations by reviewing GAAP results including these amounts.

Adjustments for Taxes, which consist of the tax effects of the various adjustments that we exclude from our non-GAAP measures and adjustments related to deferred tax and discrete tax items. Including these adjustments permits more accurate comparisons of the Company's core results with those of its competitors. We determine the tax adjustments based upon the various applicable effective tax rates. In those jurisdictions in which we do not expect to realize a tax cost or benefit (due to a history of operating losses or other factors), a reduced tax rate is applied.

SOURCE Sanmina Corporation

HomeStock IdeasLong Ideas

SummaryGeopolitical uncertainty has once again created dislocations between price and fundamentals.Three stocks reflect a similar pattern: Short-term pressure driven by risk-off sentiment rather than deteriorating business conditions.While the potential for further volatility remains, and investors should proceed with caution, these companies all exhibit durable growth, improving profitability, and exposure to long-term secular trends.As history has shown, when geopolitical noise fades, fundamentals tend to reclaim center stage, rewarding investors willing to act during periods of uncertainty.I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them. PhanuwatNandee/iStock via Getty Images

Headline Noise: A Short-Term Distraction from Top Growth Stocks Geopolitical headlines continue to inject uncertainty into global markets with renewed U.S. tensions involving Greenland’s sovereignty, while Iran and Venezuela have also weighed on investor sentiment. Some company-specific headlines are also cropping up as

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given that any particular security, portfolio, transaction or investment strategy is suitable for any specific person. The author is not advising you personally concerning the nature, potential, value or suitability of any particular security or other matter. You alone are solely responsible for determining whether any investment, security or strategy, or any product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. Steven Cress is the Head of Quantitative Strategy at Seeking Alpha. Any views or opinions expressed herein may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.

, /PRNewswire/ -- LINKBANCORP, Inc. (NASDAQ: LNKB) (the "Company"), the parent company of LINKBANK (the "Bank"), reported net income of $2.9 million, or $0.08 per diluted share, for the quarter ended December 31, 2025, compared to net income of $7.8 million, or $0.21 per diluted share, for the quarter ended September 30, 2025. Excluding expenses associated with the pending merger with Burke & Herbert Financial Services Corp. ("Burke & Herbert") and other non-core expenses, adjusted pre-tax, pre-provision net income was $11.7 million1 for the quarter ended December 31, 2025, compared to $11.0 million1 for the quarter ended September 30, 2025. Net income for the year ended December 31, 2025 was $33.5 million, or $0.90 per diluted share, compared to $26.2 million, or $0.71 for the year ended December 31, 2024. Earnings for the fourth quarter of 2025 were adversely affected by increased provision expense primarily related to a specific reserve established for a single commercial credit (the "Commercial Relationship") with total exposure of $5.0 million, requiring a full impairment, with an after-tax effect of $4.0 million. The determination of this reserve resulted from concerns with the Commercial Relationship raised during the fourth quarter of 2025, leading to the identification of purported fraudulent activity in January 2026.

Additionally, the Company announced that the Board of Directors declared a quarterly cash dividend of $0.075 per share of common stock which is expected to be paid on March 16, 2026 to shareholders of record on February 27, 2026.

1 See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this Non-GAAP measure.

FULL YEAR 2025 HIGHLIGHTS:

Annual Earnings Grow 26.8% over Prior Year. Earnings for the year ended December 31, 2025 were $33.5 million, or $0.90 per diluted share compared to $26.2 million, or $0.71 per diluted share for the year ended December 31, 2024, an increase of 26.8%. Adjusted pre-tax, pre-provision net income grew 20% year over year from $34.8 million1 for the year ended December 31, 2024 to $41.8 million1 for the year ended December 31, 2025. 15.7% Year over Year Increase in Tangible Book Value. Book value per share increased to $8.18 at December 31, 2025 compared to $8.16 at September 30, 2025 and $7.50 at December 31, 2024. Tangible book value per share increased to $6.201 at December 31, 2025 compared to $6.151 at September 30, 2025 and $5.361 at December 31, 2024. Expanding Deposit Franchise with 10.9% Annual Growth. Total deposits at December 31, 2025 were $2.55 billion compared to $2.67 billion at September 30, 2025 and $2.45 billion at December 31, 2024, representing an annual increase of $256.3 million2, or 10.9%, adjusting for the impact of the sale of banking operations and branches in New Jersey, including related loans and deposits (the "Branch Sale") and changes in brokered deposits. Robust Commercial Loan Growth. Total loans at December 31, 2025 were $2.56 billion, compared to $2.46 billion at September 30, 2025 and $2.35 billion at December 31, 2024, representing an annualized increase of $307.1 million2 or 13.1% annualized excluding the impact of the Branch Sale. Strategic Merger with Burke & Herbert. On December 18, 2025, the Company entered into a definitive agreement with Burke & Herbert, the parent company of Burke & Herbert Bank, under which the companies will combine in an all-stock combination, valued at approximately $354.2 million or $9.38 per share of Company common stock, based on the closing price for Burke & Herbert's common stock of $69.45 as of December 17, 2025, the day prior to the merger announcement. When the transaction is complete, the combined organization will be a leading Mid-Atlantic community banking franchise with approximately $11.0 billion in assets. Completion of the proposed transaction is subject to receiving the requisite approvals of each party's shareholders, receipt of all required regulatory approvals, and fulfillment of other customary closing conditions. 1 See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this Non-GAAP measure.

2 See Loan and Deposit tables for total loan and deposit growth reconciliations.

"Overall, we were pleased with the core performance reflected in our quarterly and annual results, despite the impact of the required provision for a single commercial lending relationship," said Andrew Samuel, Chief Executive Officer of LINKBANCORP. "Annual net income reached an all-time high on strong growth in net interest income, continued progress in fee income and continued discipline in operating expenses. Looking ahead to 2026, we are excited to build on our strong organic growth, deliver exceptional service to our clients, and prepare for a successful merger with Burke & Herbert to create value for our shareholders."

Income Statement
Net interest income before the provision for credit losses for the fourth quarter of 2025 was $27.1 million compared to $26.4 million in the third quarter of 2025 and $25.5 million for the fourth quarter of 2024. The increase was primarily driven by the significant growth in average earnings assets. Net interest margin was 3.74% for the fourth quarter of 2025 compared to 3.75% for the third quarter of 2025, and 3.85% for the fourth quarter of 2024. The spread on interest rates was stable quarter over quarter as the average loan yield decreased from 6.26% for the third quarter of 2025 to 6.22% for the fourth quarter of 2025, while the cost of funds decreased from 2.34% for the third quarter of 2025 to 2.32% for the fourth quarter of 2025. Interest income from purchase accounting accretion during the fourth quarter of 2025 was approximately $150 thousand less than that recognized in the third quarter of 2025 and $813 thousand less than the fourth quarter of 2024.

Noninterest income increased slightly quarter-over-quarter to $2.9 million for the fourth quarter of 2025 compared to $2.8 million for the third quarter of 2025. Year-over-year, noninterest income increased $326 thousand from $2.6 million for the fourth quarter of 2024.

Noninterest expense for the fourth quarter of 2025 was $19.5 million compared to $18.2 million for the third quarter of 2025 and $18.3 million for the fourth quarter of 2024. The increase resulted primarily from an increased incentive compensation accrual, which was driven by achievement of organic growth goals, as well as a $500 thousand impairment on assets included in other expense.

Income tax expense was $1.0 million for the fourth quarter of 2025, reflecting an effective tax rate of 26.1% compared to $2.2 million for the third quarter of 2025, reflecting an effective tax rate of 21.7% and $2.1 million for the fourth quarter of 2024, reflecting an effective tax rate of 21.9%.

Balance Sheet
Total assets were $3.07 billion at December 31, 2025 compared to $3.12 billion at September 30, 2025 and $2.88 billion at December 31, 2024. Deposits and net loans as of December 31, 2025 totaled $2.55 billion and $2.53 billion, respectively, compared to deposits and net loans of $2.67 billion and $2.43 billion, respectively at September 30, 2025 and $2.36 billion and $2.23 billion, respectively, at December 31, 2024. Deposits and net loans exclude recorded balances held for sale in the Branch Sale of $93.6 million and $91.8 million, respectively, at December 31, 2024, which are reflected within liabilities held for sale and assets held for sale.

Total loans at December 31, 2025 were $2.56 billion, compared to $2.46 billion at September 30, 2025, representing an increase of $99.8 million, with the majority of the growth in commercial loans. For the full year, total loans have increased $307.1 million2 from December 31, 2024, excluding the impact of the Branch Sale, or 13.1% annualized. Total commercial loan commitments originated in the fourth quarter of 2025 were $199.4 million with funded balances of $132.7 million. The average commercial loan commitment originated during the fourth quarter of 2025 totaled approximately $1.1 million with an average outstanding funded balance of $750 thousand. Total deposits at December 31, 2025 were $2.55 billion compared to $2.67 billion at September 30, 2025, representing a decrease of $113.3 million or -4.3% annualized driven by seasonal outflows related primarily to professional services and commercial clients. For the full year, total deposits have increased $256.3 million2 from December 31, 2024, or 10.9%, adjusting for the impact of the Branch Sale and changes in brokered deposits. Noninterest bearing deposits totaled $603.7 million at December 31, 2025, down from $640.1 million at September 30, 2025. Brokered deposits decreased $40.0 million to $35.0 million at December 31, 2025. Average deposits increased $57.4 million, or 2.3%, to $2.56 billion for the quarter ended December 31, 2025, compared to $2.50 billion for the quarter ended September 30, 2025. This continued growth reflects our focus on developing deep relationships with our retail, professional services, and commercial clients to build a strong deposit franchise.

The Company continues to maintain strong on-balance sheet liquidity, as total cash, cash equivalents, and securities available for sale were $314.9 million at December 31, 2025 compared to $462.1 million at September 30, 2025 and $311.7 million at December 31, 2024. Available sources of liquidity remain stable, with total availability of sources of liquidity of $1.31 billion at December 31, 2025.

Shareholders' equity increased to $306.4 million at December 31, 2025 from $305.5 million at September 30, 2025. Book value per share increased to $8.18 at December 31, 2025 compared to $8.16 at September 30, 2025. Tangible book value per share increased to $6.201 at December 31, 2025 compared to $6.151 at September 30, 2025 and $5.361 at December 31, 2024, representing 15.7% growth year over year.

1 See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this Non-GAAP measure.

2 See Loan and Deposit tables for total loan and deposit growth reconciliations.

Asset Quality
The Company recorded a $6.6 million provision for credit losses during the fourth quarter of 2025, $5.0 million of which related to a specific reserve for the Commercial Relationship referenced above. As noted above, the impairment resulted from concerns with the Commercial Relationship raised during the fourth quarter of 2025, leading to the identification of purported fraudulent activity in January 2026. The Company is pursuing all available sources of recovery. Based on the Company's review of the circumstances of the purported fraudulent activity involving this borrower, the Company believes this incident is an isolated occurrence and not indicative of a broader increase in exposure to fraud-related losses in connection with its lending businesses. The remaining $1.6 million in provision recorded was driven by the strong loan growth experienced in the fourth quarter.

As of December 31, 2025, the Company's non-performing assets decreased to $24.4 million, representing 0.79% of total assets, compared to $24.6 million, representing 0.79% of total assets at September 30, 2025, resulting from the successful sale of multiple properties from one credit relationship, offset by the addition of the Commercial Relationship. Loans 30-89 days past due at December 31, 2025 were $8.22 million, representing 0.32% of total loans compared to $4.73 million or 0.19% of total loans at September 30, 2025 and $2.89 million or 0.13% of total loans at December 31, 2024. The increase was driven entirely by the inclusion of the Commercial Relationship, without which loans 30-89 days past due at December 31, 2025 would have decreased to $3.24 million.

The allowance for credit losses for loans was $31.7 million, or 1.24% of total loans held for investment at December 31, 2025, compared to $25.3 million, or 1.03% of total loans held for investment at September 30, 2025. The ratio of the allowance for credit losses for loans to nonperforming assets was 129.85% at December 31, 2025, compared to 102.90% at September 30, 2025. The increase in the allowance for credit losses was primarily due to the $5.0 million specific reserve for the Commercial Relationship.

The Company recorded $57 thousand in net recoveries during the fourth quarter of 2025 compared to $300 thousand in net charge-offs for the third quarter of 2025.

Capital
The Bank's regulatory capital ratios were well in excess of regulatory minimums to be considered "well capitalized" as of December 31, 2025. The Bank's Total Capital Ratio and Tier 1 Capital Ratio were 12.07% and 10.94% respectively, at December 31, 2025, compared to 12.31% and 11.39%, respectively, at September 30, 2025 and 11.55% and 10.74%, respectively, at December 31, 2024. The Company's ratio of Tangible Common Equity to Tangible Assets was 7.75%1 at December 31, 2025 compared to 7.56%1 at September 30, 2025 and 7.16%1 at December 31, 2024.

1 See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this Non-GAAP measure.

ABOUT LINKBANCORP, Inc.

LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, LINKBANK, is a Pennsylvania state-chartered bank serving individuals, families, nonprofits and business clients throughout Pennsylvania, Maryland, Delaware and Virginia, through 24 client solutions centers and www.linkbank.com. LINKBANCORP, Inc. common stock is traded on the Nasdaq Capital Market under the symbol "LNKB". For further company information, visit ir.linkbancorp.com.

Forward Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties associated with newly developed or acquired operations; changes in general economic trends, including inflation, tariffs and changes in interest rates; increased competition; changes in consumer demand for financial services; our ability to control costs and expenses; adverse developments in borrower industries and, in particular, declines in real estate values; changes in and compliance with federal and state laws that regulate our business and capital levels; our ability to raise capital as needed; and the effects of any cybersecurity breaches. In addition, factors from the proposed merger with Burke & Herbert that could cause actual results to differ materially include the following: the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between Burke & Herbert and the Company; the outcome of any legal proceedings that may be instituted against Burke & Herbert or the Company; the possibility that the proposed transaction will not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated (and the risk that required regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); the ability of Burke & Herbert and the Company to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of either or both parties to the proposed transaction; the possibility that the anticipated benefits of the proposed transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Burke & Herbert and the Company do business; certain restrictions during the pendency of the proposed transaction that may impact the parties' ability to pursue certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management's attention from ongoing business operations and opportunities; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all and to successfully integrate the Company's operations and those of Burke & Herbert; such integration may be more difficult, time- consuming or costly than expected; revenues following the proposed transaction may be lower than expected; Burke & Herbert's and the Company's success in executing their respective business plans and strategies and managing the risks involved in the foregoing; the dilution caused by Burke & Herbert's issuance of additional shares of its capital stock in connection with the proposed transaction; effects of the announcement, pendency or completion of the proposed transaction on the ability of Burke & Herbert and the Company to retain customers and retain and hire key personnel and maintain relationships with their suppliers, and on their operating results and businesses generally; and risks related to the potential impact of general economic, political and market factors on the companies or the proposed transaction and other factors that may affect future results of Burke & Herbert and the Company; and the other factors discussed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of each of Burke & Herbert's and the Company's Quarterly Report on Form 10–Q for the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025, and other reports Burke & Herbert and the Company file with the Securities and Exchange Commission (the "SEC").

The Company does not undertake, and specifically disclaims, any obligation to publicly revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. Accordingly, you should not place undue reliance on forward-looking statements.

Additional Information and Where to Find It
In connection with the proposed transaction, Burke & Herbert will file a registration statement on Form S-4 with the SEC to register the shares of Burke & Herbert common stock to be issued in connection with the proposed transaction. The registration statement will include a joint proxy statement of Burke & Herbert and the Company, which also constitutes a prospectus of Burke & Herbert, that will be sent to shareholders of Burke & Herbert and shareholders of the Company seeking certain approvals related to the proposed transaction. Each of Burke & Herbert and the Company may file with the SEC other relevant documents concerning the proposed transaction. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any offer or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended. INVESTORS AND SHAREHOLDERS OF THE COMPANY AND THEIR RESPECTIVE AFFILIATES ARE URGED TO READ, WHEN AVAILABLE, THE REGISTRATION STATEMENT ON FORM S-4, THE JOINT PROXY STATEMENT/PROSPECTUS TO BE INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT BURKE & HERBERT, THE COMPANY AND THE PROPOSED TRANSACTION. Investors and shareholders will be able to obtain a free copy of the registration statement, including the joint proxy statement/prospectus, as well as other relevant documents filed with the SEC containing information about Burke & Herbert and the Company, without charge, at the SEC's website www.sec.gov. Copies of documents filed with the SEC by Burke & Herbert will be made available free of charge in the "Investor Relations" section of Burke & Herbert's website, www.burkeandherbertbank.com, under the heading "Financials." Copies of documents filed with the SEC by the Company will be made available free of charge in the "Investor Relations" section of the Company's website, www.linkbank.com, under the heading "Financials." The information on Burke & Herbert's or the Company's respective websites is not, and shall not be deemed to be, a part of this press release or incorporated into other filings either company makes with the SEC.

Participants in Solicitation
Burke & Herbert, the Company, and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from shareholders of Burke & Herbert and shareholders of the Company in respect of the proposed transaction under the rules of the SEC. Information regarding Burke & Herbert's directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on March 31, 2025, and certain other documents filed by Burke & Herbert with the SEC. Information regarding the Company's directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on April 17, 2025, and certain other documents filed by the Company with the SEC. Other information regarding the participants in the solicitation of proxies in respect of the proposed transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.

LB-E
LB-D

LINKBANCORP, Inc. and Subsidiaries

Consolidated Balance Sheet (Unaudited)

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

(In Thousands, except share and per share data)

ASSETS

Noninterest-bearing cash equivalents

$         15,482

$          15,321

$         15,319

$           14,830

$         13,834

Interest-bearing deposits with other institutions

36,811

178,832

139,764

205,352

152,266

Cash and cash equivalents

52,293

194,153

155,083

220,182

166,100

Securities available for sale, at fair value

262,620

267,930

169,569

159,183

145,590

Securities held to maturity, net of allowance for credit losses

25,485

26,595

26,809

27,662

31,508

Loans receivable, gross

2,556,729

2,456,977

2,356,609

2,273,941

2,255,749

Allowance for credit losses - loans

(31,674)

(25,342)

(24,651)

(26,619)

(26,435)

Loans receivable, net

2,525,055

2,431,635

2,331,958

2,247,322

2,229,314

Investments in restricted bank stock

7,735

4,791

4,821

4,780

5,209

Premises and equipment, net

15,957

15,822

15,861

17,920

18,029

Right-of-Use Asset – premises

15,225

15,632

15,410

14,537

14,913

Bank-owned life insurance

53,708

53,263

52,943

52,507

52,079

Goodwill and other intangible assets

74,172

75,213

76,296

77,379

79,761

Deferred tax asset

15,952

15,003

16,474

16,729

18,866

Assets held for sale

—

—

—

—

94,146

Accrued interest receivable and other assets

21,790

22,334

21,330

23,288

23,263

TOTAL ASSETS

$    3,069,992

$     3,122,371

$    2,886,554

$      2,861,489

$    2,878,778

LIABILITIES

Deposits:

Demand, noninterest bearing

$       603,728

$        640,100

$       646,654

$         646,002

$       658,646

Interest bearing

1,951,024

2,027,999

1,809,755

1,787,692

1,701,936

Total deposits

2,554,752

2,668,099

2,456,409

2,433,694

2,360,582

Long-term borrowings

—

40,000

40,000

40,000

40,000

Short-term borrowings

115,000

—

—

—

10,000

Note payable

—

—

—

559

565

Subordinated debt

62,281

62,255

62,279

62,129

61,984

Lease liabilities

15,564

15,965

15,740

15,284

15,666

Liabilities held for sale

—

—

—

—

93,777

Accrued interest payable and other liabilities

15,963

30,595

14,128

15,757

15,983

TOTAL LIABILITIES

2,763,560

2,816,914

2,588,556

2,567,423

2,598,557

SHAREHOLDERS' EQUITY

Preferred stock

—

—

—

—

—

Common stock

370

370

370

370

370

Surplus

266,090

265,637

265,293

264,871

264,449

Retained earnings

42,300

42,157

37,107

32,507

19,947

Accumulated other comprehensive loss

(2,328)

(2,707)

(4,772)

(3,682)

(4,545)

TOTAL SHAREHOLDERS' EQUITY

306,432

305,457

297,998

294,066

280,221

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$     3,069,992

$      3,122,371

$    2,886,554

$      2,861,489

$     2,878,778

Common shares outstanding

37,457,914

37,447,026

37,441,879

37,377,342

37,370,917

LINKBANCORP, Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

Three Months Ended

Twelve Months Ended

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

(In Thousands, except share and per share data)

INTEREST AND DIVIDEND INCOME

Loans receivable, including fees

$        39,123

$        37,755

$        37,082

$      149,951

$      146,175

Other

3,974

4,269

3,224

14,638

12,549

Total interest and dividend income

43,097

42,024

40,306

164,589

158,724

INTEREST EXPENSE

Deposits

13,614

13,677

12,823

52,115

51,033

Other Borrowings

1,098

950

962

3,965

3,977

Subordinated Debt

1,261

1,011

976

4,219

3,820

Total interest expense

15,973

15,638

14,761

60,299

58,830

NET INTEREST INCOME BEFORE
   PROVISION FOR CREDIT LOSSES

27,124

26,386

25,545

104,290

99,894

Provision for credit losses

6,594

1,003

132

8,169

257

NET INTEREST INCOME AFTER
   PROVISION FOR CREDIT LOSSES

20,530

25,383

25,413

96,121

99,637

NONINTEREST INCOME

Service charges on deposit accounts

1,074

1,120

1,339

4,311

4,036

Bank-owned life insurance

445

463

433

1,772

1,633

Net realized gains (losses) on the sale of debt securities

—

—

—

—

4

Gain on sale of loans

358

157

70

719

270

Gain on sale of branches

—

—

—

11,093

—

Other

1,043

1,065

752

4,020

2,919

Total noninterest income

2,920

2,805

2,594

21,915

8,862

NONINTEREST EXPENSE

Salaries and employee benefits

11,223

10,513

10,147

43,144

41,061

Occupancy

1,373

1,356

1,368

5,501

5,945

Equipment and data processing

1,631

2,063

1,884

7,789

7,174

Professional fees

745

593

531

2,553

2,830

FDIC insurance and supervisory fees

255

439

687

1,830

2,396

Intangible amortization

1,041

1,083

1,162

4,291

4,778

Merger & restructuring expenses

650

—

56

707

914

Advertising

155

128

128

603

633

Other

2,466

1,996

2,339

9,015

9,173

Total noninterest expense

19,539

18,171

18,302

75,433

74,904

Income before income tax expense 

3,911

10,017

9,705

42,603

33,595

Income tax expense

969

2,178

2,121

9,092

7,386

NET  INCOME

$         2,942

$         7,839

$         7,584

$       33,511

$       26,209

EARNINGS PER SHARE, BASIC

$           0.08

$           0.21

$           0.20

$           0.90

$           0.71

 EARNINGS PER SHARE, DILUTED

$           0.08

$           0.21

$           0.20

$           0.90

$           0.71

WEIGHTED-AVERAGE COMMON SHARES
   OUTSTANDING,

BASIC

37,266,414

37,192,313

37,045,701

37,173,548

36,990,672

DILUTED

37,415,446

37,335,646

37,166,107

37,315,644

37,105,614

LINKBANCORP, Inc. and Subsidiaries

Financial Highlights (Unaudited)

For the Three Months Ended

For the Twelve Months Ended

(Dollars In Thousands, except per share data)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Operating Highlights

Net Income

$        2,942

$        7,839

$        7,584

$      33,511

$      26,209

Net Interest Income

27,124

26,386

25,545

104,290

99,894

Provision for Credit Losses

6,594

1,003

132

8,169

257

Non-Interest Income

2,920

2,805

2,594

21,915

8,862

Non-Interest Expense

19,539

18,171

18,302

75,433

74,904

Earnings per Share, Basic

0.08

0.21

0.20

0.90

0.71

Adjusted Earnings per Share, Basic (2)

0.10

0.21

0.21

0.71

0.73

Earnings per Share, Diluted

0.08

0.21

0.20

0.90

0.71

Adjusted Earnings per Share, Diluted (2)

0.10

0.21

0.21

0.71

0.73

Selected Operating Ratios

Net Interest Margin

3.74 %

3.75 %

3.85 %

3.81 %

3.88 %

Annualized Return on Assets ("ROA")

0.38 %

1.04 %

1.06 %

1.14 %

0.94 %

Adjusted ROA2

0.50 %

1.04 %

1.07 %

0.90 %

0.97 %

Annualized Return on Equity ("ROE")

3.78 %

10.33 %

10.82 %

11.28 %

9.62 %

Adjusted ROE2

4.93 %

10.33 %

10.88 %

8.92 %

9.89 %

Efficiency Ratio

65.03 %

62.25 %

65.04 %

59.77 %

68.87 %

Adjusted Efficiency Ratio3

61.21 %

62.25 %

64.84 %

63.72 %

68.04 %

Noninterest Income to Avg. Assets

0.38 %

0.37 %

0.36 %

0.75 %

0.32 %

Noninterest Expense to Avg. Assets

2.52 %

2.42 %

2.56 %

2.57 %

2.70 %

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Financial Condition Data

Total Assets

$ 3,069,992

$ 3,122,371

$ 2,886,554

$ 2,861,489

$ 2,878,778

Loans Receivable, Net

2,525,055

2,431,635

2,331,958

2,247,322

2,229,314

     Noninterest-bearing Deposits

603,728

640,100

646,654

646,002

658,646

     Interest-bearing Deposits

1,951,024

2,027,999

1,809,755

1,787,692

1,701,936

Total Deposits

$ 2,554,752

$ 2,668,099

$ 2,456,409

$ 2,433,694

$ 2,360,582

Selected Balance Sheet Ratios

Total Capital Ratio1

12.07 %

12.31 %

12.43 %

12.61 %

11.55 %

Tier 1 Capital Ratio1

10.94 %

11.39 %

11.51 %

11.71 %

10.74 %

Common Equity Tier 1 Capital Ratio1

10.94 %

11.39 %

11.51 %

11.71 %

10.74 %

Leverage Ratio1

9.69 %

9.95 %

10.34 %

10.02 %

9.49 %

Tangible Common Equity to Tangible Assets4

7.75 %

7.56 %

7.89 %

7.78 %

7.16 %

Tangible Book Value per Share5

$          6.20

$          6.15

$          5.92

$          5.80

$          5.36

Asset Quality Data

Non-performing Assets

$      24,393

$      24,627

$      21,877

$      26,041

$      17,173

Non-performing Assets to Total Assets

0.79 %

0.79 %

0.76 %

0.91 %

0.60 %

Non-performing Loans to Total Loans

0.95 %

1.00 %

0.93 %

1.15 %

0.76 %

Allowance for Credit Losses - Loans ("ACLL")

$      31,674

$      25,342

$      24,651

$      26,619

$      26,435

ACLL to Total Loans

1.24 %

1.03 %

1.05 %

1.17 %

1.17 %

ACLL to Nonperforming Assets

129.85 %

102.90 %

112.68 %

102.22 %

153.93 %

Net chargeoffs (recoveries)(6)

$           (57)

$           300

$             40

$             81

$           252

(1) - These capital ratios have been calculated using bank-level capital

(2) - This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

(3) - The efficiency ratio, as adjusted represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains or losses from securities sales and merger related expenses. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

(4) - We calculate tangible common equity as total shareholders' equity less goodwill and other intangibles, and we calculate tangible assets as total assets less goodwill and other intangibles. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

(5) - We calculate tangible book value per common share as total shareholders' equity less goodwill and other intangibles, divided by the outstanding number of shares of our common stock at the end of the relevant period. Tangible book value per common share is a non-GAAP financial measure, and, as we calculate tangible book value per common share, the most directly comparable GAAP financial measure is book value per common share.  See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.

(6) - Charge offs for the twelve months ended December 31, 2025 do not include the impact of a settlement of a purchase credit deteriorated loan ("PCD") that resulted in a net decrease to the allowance of $2.0 million, which was covered by a specific reserve established on this PCD loan at the time of acquisition.

LINKBANCORP, Inc. and Subsidiaries

Net Interest Margin - Linked Quarter-To-Date (Unaudited)

For the Three Months Ended

December 31, 2025

September 30, 2025

(Dollars in thousands)

Avg Bal

Interest (2)

Yield/Rate

Avg Bal

Interest (2)

Yield/Rate

Int. Earn. Cash

$          90,179

$         672

2.96 %

$        190,584

$      1,893

3.94 %

Securities

Taxable (1)

247,687

2,950

4.73 %

162,865

2,089

5.09 %

Tax-Exempt

44,550

474

4.22 %

42,763

363

3.37 %

Total Securities

292,237

3,424

4.65 %

205,628

2,452

4.73 %

Total Cash Equiv. and Investments

382,416

4,096

4.25 %

396,212

4,345

4.35 %

Total Loans (3)

2,497,355

39,123

6.22 %

2,393,119

37,755

6.26 %

Total Earning Assets

2,879,771

43,219

5.95 %

2,789,331

42,100

5.99 %

Other Assets

191,711

194,442

Total Assets

$     3,071,482

$     2,983,773

Interest bearing demand

$        644,650

3,643

2.24 %

$        592,572

3,498

2.34 %

Money market demand

633,856

3,597

2.25 %

635,450

3,985

2.49 %

Time deposits

630,472

6,374

4.01 %

623,505

6,194

3.94 %

Total Borrowings

182,877

2,359

5.12 %

153,493

1,961

5.07 %

Total Interest-Bearing Liabilities

2,091,855

15,973

3.03 %

2,005,020

15,638

3.09 %

Non Interest-Bearing Deposits

635,055

646,608

Total Cost of Funds

2,726,910

15,973

2.32 %

2,651,628

15,638

2.34 %

Other Liabilities

35,907

31,044

Total Liabilities

2,762,817

2,682,672

Shareholders' Equity

308,665

301,101

Total Liabilities & Shareholders' Equity

$     3,071,482

$     2,983,773

Net Interest Income/Spread (FTE)

27,246

2.92 %

26,462

2.90 %

Tax-Equivalent Basis Adjustment

(122)

(76)

Net Interest Income

$    27,124

$    26,386

Net Interest Margin

3.74 %

3.75 %

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table

(3) Includes the balances of nonaccrual loans

LINKBANCORP, Inc. and Subsidiaries

Net Interest Margin - Quarter-To-Date (Unaudited)

For the Three Months Ended December 31,

2025

2024

(Dollars in thousands)

Avg Bal

Interest (2)

Yield/Rate

Avg Bal

Interest (2)

Yield/Rate

Int. Earn. Cash

$         90,179

$        672

2.96 %

$       128,802

$     1,300

4.02 %

Securities

Taxable (1)

247,687

2,950

4.73 %

138,168

1,540

4.43 %

Tax-Exempt

44,550

474

4.22 %

44,958

486

4.30 %

Total Securities

292,237

3,424

4.65 %

183,126

2,026

4.40 %

Total Cash Equiv. and Investments

382,416

4,096

4.25 %

311,928

3,326

4.24 %

Total Loans (3)

2,497,355

39,123

6.22 %

2,327,829

37,082

6.34 %

Total Earning Assets

2,879,771

43,219

5.95 %

2,639,757

40,408

6.09 %

Other Assets

191,711

202,693

Total Assets

$    3,071,482

$    2,842,450

Interest bearing demand

$       644,650

3,643

2.24 %

$       537,856

3,043

2.25 %

Money market demand

633,856

3,597

2.25 %

567,593

3,139

2.20 %

Time deposits

630,472

6,374

4.01 %

607,231

6,641

4.35 %

Total Borrowings

182,877

2,359

5.12 %

153,117

1,938

5.04 %

Total Interest-Bearing Liabilities

2,091,855

15,973

3.03 %

1,865,797

14,761

3.15 %

Non Interest-Bearing Deposits

635,055

665,276

Total Cost of Funds

2,726,910

15,973

2.32 %

2,531,073

14,761

2.32 %

Other Liabilities

35,907

32,493

Total Liabilities

2,762,817

2,563,566

Shareholders' Equity

308,665

278,884

Total Liabilities & Shareholders' Equity

$    3,071,482

$ 2,842,450

Net Interest Income/Spread (FTE)

27,246

2.92 %

25,647

2.94 %

Tax-Equivalent Basis Adjustment

(122)

(102)

Net Interest Income

$   27,124

$   25,545

Net Interest Margin

3.74 %

3.85 %

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table

(3) Includes the balances of nonaccrual loans

LINKBANCORP, Inc. and Subsidiaries

Net Interest Margin - Year-To-Date (Unaudited)

For the Twelve Months Ended December 31,

2025

2024

(Dollars in thousands)

Avg Bal

Interest (2)

Yield/Rate

Avg Bal

Interest (2)

Yield/Rate

Int. Earn. Cash

$    126,531

$       4,633

3.66 %

$     111,790

$      4,890

4.37 %

Securities

Taxable (1)

176,647

8,608

4.87 %

128,140

6,206

4.84 %

Tax-Exempt

43,468

1,768

4.07 %

43,134

1,839

4.26 %

Total Securities

220,115

10,376

4.71 %

171,274

8,045

4.70 %

Total Cash Equiv. and Investments

346,646

15,009

4.33 %

283,064

12,935

4.57 %

Total Loans (3)

2,392,590

149,951

6.27 %

2,290,618

146,175

6.38 %

Total Earning Assets

2,739,236

164,960

6.02 %

2,573,682

159,110

6.18 %

Other Assets

192,063

205,568

Total Assets

$ 2,931,299

$ 2,779,250

Interest bearing demand

$    582,618

$     13,396

2.30 %

$    476,686

$    10,344

2.17 %

Money market demand

595,229

13,619

2.29 %

579,232

12,981

2.24 %

Time deposits

596,161

25,100

4.21 %

617,894

27,708

4.48 %

Total Borrowings

187,859

8,184

4.36 %

149,572

7,797

5.21 %

Total Interest-Bearing Liabilities

1,961,867

60,299

3.07 %

1,823,384

58,830

3.23 %

Non Interest-Bearing Deposits

640,536

653,966

Total Cost of Funds

$ 2,602,403

$     60,299

2.32 %

$ 2,477,350

$    58,830

2.37 %

Other Liabilities

31,938

29,515

Total Liabilities

$ 2,634,341

$ 2,506,865

Shareholders' Equity

$    296,958

$    272,385

Total Liabilities & Shareholders' Equity

$ 2,931,299

$ 2,779,250

Net Interest Income/Spread (FTE)

104,661

2.95 %

100,280

2.95 %

Tax-Equivalent Basis Adjustment

(371)

(386)

Net Interest Income

$   104,290

$    99,894

Net Interest Margin

3.81 %

3.88 %

(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.

(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table

(3) Includes the balances of nonaccrual loans

LINKBANCORP, Inc. and Subsidiaries

Loans Receivable Detail (Unaudited)

(In Thousands)

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

 Agriculture and farmland loans 

$          61,611

$           62,098

$           61,996

$         66,684

$          67,741

 Construction loans 

172,917

155,542

140,976

136,421

158,296

 Commercial & industrial loans 

275,824

266,765

259,877

257,302

252,163

 Commercial real estate loans 

      Multifamily 

244,554

236,534

231,469

215,916

217,331

      Owner occupied 

545,837

522,674

502,515

472,895

493,906

      Non-owner occupied 

771,537

730,740

681,521

645,793

658,615

 Residential real estate loans 

      First liens 

377,108

377,226

375,879

378,420

399,476

      Second liens and lines of credit 

87,051

84,395

81,194

79,905

78,410

 Consumer and other loans 

17,062

17,645

17,525

17,097

17,087

 Municipal loans 

2,767

2,816

2,917

3,012

3,886

2,556,268

2,456,435

2,355,869

2,273,445

2,346,911

Deferred costs

461

542

740

496

645

Total loans receivable

2,556,729

2,456,977

2,356,609

2,273,941

2,347,556

Less: Loans held for sale

—

—

—

—

91,807

Loans Held for Investment

$    2,556,729

$       2,456,977

$      2,356,609

$    2,273,941

$     2,255,749

LINKBANCORP, Inc. and Subsidiaries

Loan Growth Calculation Excluding Branch Sale (Unaudited)

(In Thousands)

December 31,
2025

 Total Loans at December 31, 2025 

$      2,556,729

 Total Loans at December 31, 2024 

2,347,556

 Year-to-date Change 

209,173

 Net Book Value of Loans Sold 

97,952

 Loan Growth Excluding Branch Sale 

307,125

 Annualized Growth Rate 

13.08 %

LINKBANCORP, Inc. and Subsidiaries

Investments in Securities Detail (Unaudited)

December 31, 2025

(In Thousands)

Amortized
Cost

Net
Unrealized Gains
(Losses)

Fair
Value

Available for Sale:

US Government Agency securities

$     11,337

$                  292

$     11,629

Obligations of state and political subdivisions

49,892

(2,378)

47,514

Mortgage-backed securities in government-sponsored entities

203,984

(935)

203,049

Other securities

434

(6)

428

$ 265,647

$           (3,027)

$ 262,620

 Amortized
Cost 

 Net Unrealized
Losses 

 Fair Value 

 Allowance for
Credit Losses 

Held to Maturity:

Corporate debentures

$     12,250

$                (367)

$     11,883

$              (391)

Structured mortgage-backed securities

13,626

(298)

13,328

—

$     25,876

$                (665)

$     25,211

$              (391)

December 31, 2024

(In Thousands)

Amortized
Cost

Net
Unrealized Gains
(Losses)

Fair
Value

Available for Sale:

US Government Agency securities

$     13,017

$                    56

$     13,073

Obligations of state and political subdivisions

51,254

(4,053)

47,201

Mortgage-backed securities in government-sponsored entities

88,289

(3,506)

84,783

Other securities

542

(9)

533

$   153,102

$             (7,512)

$   145,590

Amortized
Cost

Net Unrealized
Losses

Fair Value

Allowance for
Credit Losses

Held to Maturity:

Corporate debentures

$     15,250

$                (984)

$     14,266

$              (459)

Structured mortgage-backed securities

16,717

(699)

16,018

—

$     31,967

$             (1,683)

$     30,284

$              (459)

LINKBANCORP, Inc. and Subsidiaries

Deposits Detail (Unaudited)

(In Thousands)

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

Demand, noninterest-bearing

$                        603,728

$                           640,100

$              646,654

$         646,002

$                686,510

Demand, interest-bearing

658,523

677,496

576,050

577,170

537,546

Money market and savings

617,534

656,727

580,143

553,240

553,807

Time deposits, $250 and over

210,105

201,648

177,897

166,441

167,165

Time deposits, other

429,862

417,128

400,665

387,226

405,493

Brokered deposits

35,000

75,000

75,000

103,615

103,615

2,554,752

2,668,099

2,456,409

2,433,694

2,454,136

Less: Deposits held for sale

—

—

—

—

93,554

Total deposits  

$                     2,554,752

$                        2,668,099

$          2,456,409

$      2,433,694

$             2,360,582

Average Deposits Detail, for the Three Months Ended (Unaudited)

(In Thousands)

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

Demand, noninterest-bearing

$                        635,055

$                           646,608

$              628,962

$         649,440

$                665,276

Demand, interest-bearing

644,650

592,572

547,177

545,475

537,856

Money market and savings

633,856

635,450

553,294

555,663

567,593

Time deposits

630,472

599,048

575,205

576,366

568,615

Brokered deposits

11,467

24,457

34,117

56,283

38,616

Total deposits  

$                     2,555,500

$                        2,498,135

$           2,338,755

$     2,383,227

$            2,377,956

Balances in table above include deposits held for sale for the three months ended December 31, 2024.

LINKBANCORP, Inc. and Subsidiaries

Core Deposit Growth Calculation Excluding Branch Sale (Unaudited)

(In Thousands)

December 31, 2025

 Total Deposits at December 31, 2025 

$                        2,554,752

 Less:  Brokered Deposits at December 31, 2025 

(35,000)

 Total Core Deposits at December 31, 2025 

$                        2,519,752

 Total Deposits at December 31, 2024 

$                        2,454,136

 Less:  Brokered Deposits at December 31, 2024 

(103,615)

 Total Core Deposits at December 31, 2024 

$                        2,350,521

 Year-to-date Change in Core Deposits 

169,231

 Net Book Value of Deposits Sold 

87,086

 Deposit Growth Excluding Branch Sale 

256,317

 Annualized Growth Rate 

10.90 %

Appendix A – Reconciliation to Non-GAAP Financial Measures
This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these non-GAAP measures in its analysis of the Company's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of non-GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company's financial condition and results. Non-GAAP measures are not formally defined under GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to GAAP financial measures, our management believes these non-GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-GAAP measures. See the tables below for a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures.

Adjusted Return on Average Assets

For the Three Months Ended

For the Twelve Months Ended

(Dollars in thousands)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Net income

$         2,942

$         7,839

$         7,584

$       33,511

$       26,209

Average assets

3,071,482

2,983,773

2,842,450

2,931,299

2,779,250

Return on average assets (annualized)

0.38 %

1.04 %

1.06 %

1.14 %

0.94 %

Net income

$         2,942

$         7,839

$         7,584

33,511

26,209

Gain on sale of branches

—

—

—

(11,093)

—

Tax effect(1)

—

—

—

2,440

—

Transaction bonus accrual

—

—

—

490

—

Tax effect(1)

—

—

—

(108)

—

Board restructuring accrual

—

—

—

381

—

Tax effect(1)

—

—

—

(84)

—

Net (gains) losses on sale or impairment of assets

500

—

—

500

(4)

Tax effect(1)

(110)

—

—

(110)

1

Merger & restructuring expenses

650

—

56

707

914

Tax effect(1)

(143)

—

(12)

(156)

(192)

Adjusted Net Income (Non-GAAP)

$         3,839

$         7,839

$         7,628

$       26,478

26,928

Average assets

$  3,071,482

$  2,983,773

$  2,842,450

$  2,931,299

2,779,250

Adjusted return on average assets (annualized)
(Non-GAAP)

0.50 %

1.04 %

1.07 %

0.90 %

0.97 %

(1) Tax effect was 22% for the three months ended December 31, 2025 and September 30, 2025, and twelve months ended December 31, 2025, and 21% for all other periods

Adjusted Return on Average Shareholders' Equity

For the Three Months Ended

For the Twelve Months Ended

(Dollars in thousands)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Net income

$         2,942

$      7,839

$         7,584

$       33,511

$       26,209

Average shareholders' equity

308,665

301,101

278,884

296,958

272,385

Return on average shareholders' equity (annualized)

3.78 %

10.33 %

10.82 %

11.28 %

9.62 %

Net income

$         2,942

$      7,839

$         7,584

$       33,511

$       26,209

Gain on sale of branches

—

—

—

(11,093)

—

Tax effect(1)

—

—

—

2,440

—

Transaction bonus accrual

—

—

—

490

—

Tax effect(1)

—

—

—

(108)

—

Board restructuring accrual

—

—

—

381

—

Tax effect(1)

—

—

—

(84)

—

Merger & restructuring expenses

650

—

56

707

914

Tax effect(1)

(143)

—

(12)

(156)

(192)

Net (gains) losses on sale or impairment of assets

500

—

—

500

(4)

Tax effect(1)

(110)

—

—

(110)

1

Adjusted Net Income (Non-GAAP)

$         3,839

$      7,839

$         7,628

$       26,478

$       26,928

Average shareholders' equity

$     308,665

$  301,101

$     278,884

$     296,958

$     272,385

Adjusted return on average shareholders' equity (annualized)
(Non-GAAP)

4.93 %

10.33 %

10.88 %

8.92 %

9.89 %

(1) Tax effect was 22% for the three months ended December 31, 2025 and September 30, 2025, and twelve months ended December 31, 2025, and 21% for all other periods

Adjusted Earnings Per Share

For the Three Months Ended

For the Twelve Months Ended

(Dollars in thousands, except per share data)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

GAAP-Based Earnings Per Share, Basic

$         0.08

$       0.21

$         0.20

$         0.90

$         0.71

GAAP-Based Earnings Per Share, Diluted

$         0.08

$       0.21

$         0.20

$         0.90

$         0.71

Net Income

$       2,942

$     7,839

$       7,584

$     33,511

$     26,209

Gain on sale of branches

—

—

—

(11,093)

—

Tax effect(1)

—

—

—

2,440

—

Transaction bonus accrual

—

—

—

490

—

Tax effect(1)

—

—

—

(108)

—

Board restructuring accrual

—

—

—

381

—

Tax effect(1)

—

—

—

(84)

—

Merger & restructuring expenses

650

—

56

707

914

Tax effect(1)

(143)

—

(12)

(156)

(192)

Net (gains) losses on sale or impairment of assets

500

—

—

500

(4)

Tax effect(1)

(110)

—

—

(110)

1

Adjusted Net Income (Non-GAAP)

$       3,839

$     7,839

$       7,628

$     26,478

$     26,928

Adjusted Earnings per Share, Basic (Non-GAAP)

$         0.10

$       0.21

$         0.21

$         0.71

$         0.73

Adjusted Earnings per Share, Diluted (Non-GAAP)

$         0.10

$       0.21

$         0.21

$         0.71

$         0.73

(1) Tax effect was 22% for the three months ended December 31, 2025 and September 30, 2025, and twelve months ended December 31, 2025, and 21% for all other periods

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)

For the Three Months Ended

For the Twelve Months Ended

(Dollars in thousands, except per share data)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Net Income (GAAP)

$             2,942

$      7,839

$         7,584

$       33,511

$       26,209

Gain on sale of branches

—

—

—

(11,093)

—

Tax effect(1)

—

—

—

2,440

—

Transaction bonus accrual

—

—

—

490

—

Tax effect(1)

—

—

—

(108)

—

Board restructuring accrual

—

—

—

381

—

Tax effect(1)

—

—

—

(84)

—

Net (gains) losses on sale or impairment of assets

500

—

—

500

(4)

Tax effect(1)

(110)

—

—

(110)

1

Merger & restructuring expenses

650

—

56

707

914

Tax effect(1)

(143)

—

(12)

(156)

(192)

Adjusted Net Income (Non-GAAP)

3,839

7,839

7,628

26,478

26,928

Income tax expense

969

2,178

2,121

9,092

7,386

 Provision for credit losses

6,594

1,003

132

8,169

257

Tax effect included in Adjusted Net Income

253

—

12

(1,982)

191

Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)

$           11,655

$    11,020

$         9,893

$       41,757

$       34,762

(1) Tax effect was 22% for the three months ended December 31, 2025 and September 30, 2025, and twelve months ended December 31, 2025, and 21% for all other periods

Tangible Common Equity and Tangible Book Value

(Dollars in thousands, except per share data)

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Tangible Common Equity

Total shareholders' equity 

$    306,432

$        305,457

$    297,998

$    294,066

$    280,221

Adjustments:

Goodwill 

(58,806)

(58,806)

(58,806)

(58,806)

(58,806)

Other intangible assets 

(15,366)

(16,407)

(17,490)

(18,573)

(20,955)

Tangible common equity (Non-GAAP)

$    232,260

$        230,244

$    221,702

$    216,687

$    200,460

Common shares outstanding 

37,457,914

37,447,026

37,441,879

37,377,342

37,370,917

Book value per common share 

$          8.18

$              8.16

$          7.96

$          7.87

$          7.50

Tangible book value per common share
(Non-GAAP)

$          6.20

$              6.15

$          5.92

$          5.80

$          5.36

Tangible Assets

Total assets 

$ 3,069,992

$     3,122,371

$ 2,886,554

$ 2,861,489

$ 2,878,778

Adjustments:

Goodwill 

(58,806)

(58,806)

(58,806)

(58,806)

(58,806)

Other intangible assets 

(15,366)

(16,407)

(17,490)

(18,573)

(20,955)

Tangible assets (Non-GAAP)

$ 2,995,820

$     3,047,158

$ 2,810,258

$ 2,784,110

$ 2,799,017

Tangible common equity to tangible
assets (Non-GAAP)

7.75 %

7.56 %

7.89 %

7.78 %

7.16 %

Return on Tangible Common Equity

For the Three Months Ended

For the Twelve Months Ended

(Dollars in thousands)

12/31/2025

12/31/2025

Net income

$                                        2,942

$                                       33,511

Average shareholders' equity

308,665

296,958

Adjustments:

Goodwill

(58,806)

(58,806)

Other intangible assets

(16,020)

(15,366)

Average tangible common equity (Non-GAAP)

$                                    233,839

$                                     222,786

Return on tangible common equity (annualized) (Non-GAAP)

4.99 %

15.04 %

Adjusted Efficiency Ratio

For the Three Months Ended

For the Twelve Months Ended

(Dollars in thousands)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

GAAP-based efficiency ratio

65.03 %

62.25 %

65.04 %

59.77 %

68.87 %

Net interest income 

$              27,124

$    26,386

$       25,545

$     104,290

$       99,894

Noninterest income 

2,920

2,805

2,594

21,915

8,862

Less: Gain on sale of branches

—

—

—

(11,093)

—

Less: net gains (losses) on sale of securities 

—

—

—

—

(4)

Adjusted revenue (Non-GAAP)

30,044

29,191

28,139

115,112

108,752

Total noninterest expense 

19,539

18,171

18,302

75,433

74,904

Less: Merger & restructuring expenses

650

—

56

707

914

Less: Transaction bonus accrual

—

—

—

490

—

Less: Board restructuring accrual

—

—

—

381

—

Less:  Impairment of assets

500

—

—

500

—

Adjusted non-interest expense

$              18,389

$    18,171

$       18,246

$       73,355

$       73,990

Efficiency ratio, as adjusted (Non-GAAP)

61.21 %

62.25 %

64.84 %

63.72 %

68.04 %

Adjusted noninterest expense (Non-GAAP)

For the Three Months Ended

(Dollars in thousands, except per share data)

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Noninterest expense - GAAP

$       19,539

$    18,171

$    18,065

$    19,658

$       18,302

Merger & restructuring expenses

650

—

16

41

56

Transaction bonus accrual

—

—

—

490

—

Board restructuring accrual

—

—

—

381

—

Impairment of assets

500

—

—

—

—

Adjusted noninterest expense (Non-GAAP)

$       18,389

$    18,171

$    18,049

$    18,746

$       18,246

Contact:
Nick West
Director, Corporate Development
717.678.7935
[email protected]

SOURCE LINKBANCORP, Inc.