About LINKBANCORP

LINKBANCORP, Inc. operates as a bank holding company for LINKBANK that provides various commercial banking products and services. The bank is a full-service commercial bank providing personal and business lending and deposit services to individuals, families, nonprofit and business clients throughout Central and Southeastern Pennsylvania, primarily through its digital presence on the internet and client solutions centers in Chester, Cumberland, Dauphin, Lancaster, Northumberland and Schuylkill counties; and loan production offices in Chester and York counties. Strategy and Recent Growth The company’s core strategy is to further its intention of ‘positively impacting lives’ through community banking by building strong relationships that bring value to the company’s customers, employees, the communities the company serves and its shareholders. The company’s business strategy seeks to provide its customers with personal service, financial sophistication and the full array of product offerings of a larger regional bank, focusing on developing local lending relationships funded by the generation of local retail and business deposits. The company is committed to increasing the company’s market share in the communities the company serves by continuing to leverage available technology, existing branch locations, and new branch locations, and by considering other strategic growth opportunities throughout Central and Southeastern Pennsylvania and surrounding areas. The bank provides traditional lending, deposit gathering and cash services to retail customers, small businesses and nonprofit organizations. The company offers a full array of technology solutions to the company’s clients and continually evaluate new technologies that enhance the customer experience and allow the bank to operate more efficiently. Market Area The company conducts its business principally through Customer Solutions Centers in Chester, Cumberland, Dauphin, Lancaster, Northumberland and Schuylkill counties, Pennsylvania. In 2021 and 2022 respectively, the company established loan production offices in York and Chester counties, and will continue to consider other strategic locations in Central and Southeastern Pennsylvania to further the company’s objective to become the bank of choice in the markets the company serves. The company occasionally makes loans secured by properties located outside of the company’s primary lending market, usually to borrowers with whom the company has an existing relationship and who have a presence within the company’s primary market. Lending Activities The company’s principal lending activity has been the origination of commercial real estate loans, commercial business loans, and to a lesser extent, commercial real estate construction and land development loans, residential real estate loans, home equity loans, consumer loans and agriculture loans. The company’s commercial customers are primarily small- and medium-sized businesses. Commercial Business (C&I) Lending. The company’s business strategy is to increase the company’s originations of commercial business loans. The company offers commercial term loans, lines of credit, agricultural production, equipment financing, and revolving lines of credit with a target loan size of $100,000 to $5.0 million to small businesses in the company’s market area to finance short-term working capital needs such as accounts receivable and inventory. The company’s commercial lines of credit are typically adjustable-rate. The company generally obtains personal guarantees with respect to all commercial business lines of credit. The company typically originates commercial business loans on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business, the experience and stability of the borrower’s management team, earnings projections and the underlying assumptions, and the value and marketability of any collateral securing the loan. Commercial business loans that the company originates generally have greater credit risk than one-to-four family residential real estate loans or consumer loans. In addition, commercial business loans often result in larger outstanding balances to single borrowers, or related groups of borrowers, and also generally require substantially greater evaluation and oversight efforts. As a result of the Gratz Merger, the company acquired loans made through the Paycheck Protection Program (‘PPP’), administered directly by the U.S. Small Business Administration (‘SBA’). The PPP provides loans to small businesses who were affected by economic conditions as a result of COVID-19 to provide cash-flow assistance to employers who maintain their payroll (including healthcare and certain related expenses), mortgage interest, rent, leases, utilities and interest on existing debt during the COVID-19 emergency. Commercial Real Estate Lending. The company’s commercial real estate and multi-family loans generally have amortization terms of 15 to 25 years and have adjustable interest rates. The adjustable rate loans are typically fixed for the first five years and either adjust annually thereafter or have a balloon payment due at the end of the fixed term. The company’s commercial real estate loans are typically secured by multi-family, hotel, agricultural, medical, retail, churches or other commercial properties. Construction and Land Development Lending: The company offers both fixed-rate and adjustable-rate construction and land loans. One-to-four family Residential Real Estate Lending: Residential real estate loans are originated by the bank and underwritten by the correspondent lender in accordance with secondary market standards and The Federal National Mortgage Association, commonly known as Fannie Mae, underwriting guidelines to comply with ability to repay and qualified mortgage rules. Certain mortgage loans, such as adjustable rate jumbo loans may be retained in the bank’s loan portfolio. Home Equity Loans: Home equity loans consists of either revolving lines of credit, term, or second mortgage loans secured by one-to-four family residential real estate. The company’s home equity loans are secured by a first or second mortgage on the borrower’s principal residence or their second/vacation home (excluding investment/rental property) generally at a maximum current loan-to-value of 80%. Consumer Lending. To a much lesser extent, the company offers a variety of consumer loans to individuals who reside or work in the company’s market area. The company’s consumer loans may be secured with deposits, automobiles, motorcycles, or real property. Other Loans. In addition to the loan types discussed above, the company originates agricultural loans and municipal loans. The agricultural loan portfolio consists of loans to local farmers and agricultural businesses that are generally secured by farmland and equipment. The municipal loan portfolio consists of loans to qualified local municipalities, which are generally supported by the taxing authority of the borrowing municipality, and is frequently secured by collateral. Deposits The company obtains most of its deposits from small- and medium-sized businesses, retail customers, and non-profit customers within the company’s market area. The company solicits deposits through its relationship-driven team of dedicated and accessible bankers and through community-focused marketing. The company emphasizes obtaining deposit relationships at loan origination. The company has invested in personnel, business and compliance processes and technology that enable the company to acquire, and efficiently and effectively serve, a wide array of business deposit accounts, while continuing to provide the level of customer service for which the company is known. The company offers a comprehensive range of business deposit products and services to assist with the banking needs of the company’s business customers, including a variety of remote deposit and cash management products along with commercial transaction accounts. The company also provides online banking, mobile banking, and direct deposit services. The company offers a selection of deposit accounts, including demand accounts (interest-bearing and noninterest-bearing), money market deposit accounts, savings accounts and certificates of deposit. All deposits are generated from in-market relationships through the company’s Client Solutions Centers. Investment Securities As of December 31, 2022, the company’s investment securities included Small Business Administration loan pools, obligations of state and political subdivisions, and mortgage-backed securities in government-sponsored entities. Regulation and Supervision The company is a bank holding company within the meaning of the bank Holding Company Act of 1956, as amended (the ‘BHC Act’). As such, it is registered with, subject to examination and supervision by, and otherwise required to comply with the rules and regulations of the Board of Governors of the Federal Reserve System (the ‘Federal Reserve’). LINKBANK, a Pennsylvania-chartered, non-Federal Reserve member bank, is subject to regulation by the Pennsylvania Department of Banking and Securities (‘PADOBS’) and the Federal Deposit Insurance Corporation (‘FDIC’). The bank’s deposit accounts are insured up to applicable limits by the FDIC. The company is subject to the disclosure and regulatory requirements of the Securities Act and Exchange Act and, in accordance with the Exchange Act, it files annual, quarterly, and current reports, proxy statements, and other information with the SEC. The FDIC is required to assess the bank’s record of compliance with the Community Reinvestment Act. The bank’s authority to extend credit to its directors, executive officers and 10% shareholders, as well as to entities controlled by such persons, is governed by the requirements of Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O of the Federal Reserve. The bank is a member of the FHLB System. The bank’s operations are also subject to federal laws applicable to credit transactions, such as the: Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers; Real Estate Settlement Procedures Act, requiring that borrowers for mortgage loans for one-to four-family residential real estate receive various disclosures, including good faith estimates of settlement costs, lender servicing and escrow account practices, and prohibiting certain practices that increase the cost of settlement services; Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies; Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; Truth in Savings Act; and Rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws. The operations of the bank also are subject to the: Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers' rights and liabilities arising from the use of automated teller machines and other electronic banking services; Check Clearing for the 21st Century Act (also known as ‘Check 21’), which gives ‘substitute checks,’ such as digital check images and copies made from that image, the same legal standing as the original paper check; USA PATRIOT Act, which requires banks operating to, among other things, establish broadened anti-money laundering compliance programs, due diligence policies and controls to ensure the detection and reporting of money laundering. Such required compliance programs are intended to supplement existing compliance requirements, also applicable to financial institutions, under the bank Secrecy Act and the Office of Foreign Assets Control regulations; and Gramm-Leach-Bliley Act, which places limitations on the sharing of consumer financial information by financial institutions with unaffiliated third parties. Specifically, the Gramm-Leach-Bliley Act requires all financial institutions offering financial products or services to retail customers to provide such customers with the financial institution's privacy policy and provide such customers the opportunity to ‘opt out’ of the sharing of certain personal financial information with unaffiliated third parties. The company qualifies as an emerging growth company under the Jumpstart Our Business Startups Act. History LINKBANCORP, Inc. was founded in 2018. The company was incorporated under the laws of the Commonwealth of Pennsylvania in 2018.