Exhibit 99.1

PRESS RELEASE

Partners Bancorp Reports Results of Operations for the First Quarter 2023

SALISBURY, MD – May 1, 2023 – Partners Bancorp (NASDAQ: PTRS) (the “Company”), the parent company of The Bank of Delmarva (“Delmarva”), Seaford, Delaware, and Virginia Partners Bank (“Virginia Partners”), Fredericksburg, Virginia, reported net income attributable to the Company of $3.3 million, or $0.19 per diluted share, for the three months ended March 31, 2023, a $1.2 million or 57.9% increase when compared to net income attributable to the Company of $2.1 million, or $0.12 per diluted share, for the same period in 2022.

As previously disclosed, on February 22, 2023, the Company and LINKBANCORP, Inc. (“LINK”) (NASDAQ: LNKB), parent company of LINKBANK, announced that they have entered into a definitive agreement and plan of merger pursuant to which the Company will merge into LINK, with LINK surviving, and following which Delmarva and Virginia Partners will each successively merge with and into LINKBANK, with LINKBANK surviving. Upon completion of the transaction, the Company’s shareholders will own approximately 56% and LINK shareholders, inclusive of shares issued in a concurrent private placement of common stock by LINK, will own approximately 44% of the combined company. The mergers are subject to receiving the requisite approval of the Company’s and LINK’s stockholders, receipt of all required regulatory approvals, and fulfillment of other customary closing conditions.

John W. Breda, the Company’s President and Chief Executive Officer, commented, “Despite the impact of significant merger related expenses related to the pending merger with LINK, I am pleased with our start to 2023.  During the first quarter of 2023, the Company generated loan growth of 1.4%, and finished the period maintaining strong asset quality. While the Company’s net interest margin improved by 1.10% compared to the same period of 2022, we did experience a slight decline of 0.01% when compared to the fourth quarter of 2022. The Company’s total deposits decreased by 2.0% as compared to December 31, 2022, representing minimal deposit outflow in the first quarter. As expected, given the impact of rising market interest rates, competition for deposits, increased borrowing costs, and negative banking industry developments, the Company experienced an increase in its overall cost of funds during the first quarter of 2023 by 0.33% when compared to the same period of 2022, and by 0.34% when compared to the fourth quarter of 2022. Despite these negative factors and banking industry developments, the Company remains well capitalized and its liquidity position and balance sheet remain strong.”

Breda continued, “We continue to be very excited about our transformational merger of equals with LINK and are diligently focused on the steps necessary to successfully complete the merger and combine our two exceptional organizations.”

Also as previously disclosed, on April 26, 2023, the Company’s board of directors declared a cash dividend of $0.04 per share, which is payable on May 17, 2023, to holders of record of its common stock as of the close of business on May 10, 2023.

Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13 “ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the prior incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (or the “CECL Standard”).

The Company’s results for reporting periods beginning after January 1, 2023 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to the Company’s financial statements as of January 1, 2023:

⁽¹⁾ This amount represents a gross-up of the balance sheet related to purchased credit-impaired loans resulting from adoption of the CECL Standard on January 1, 2023.

The Company’s results of operations for the three months ended March 31, 2023 were directly impacted by the following:

Positive Impacts:

Negative Impacts:

For the three months ended March 31, 2023, the Company’s annualized return on average assets, annualized return on average equity and efficiency ratio were 0.87%, 9.65% and 70.65%, respectively, as compared to 0.51%, 6.17% and 78.41%, respectively, for the same period in 2022.

The increase in net income attributable to the Company for the three months ended March 31, 2023, as compared to the same period in 2022, was driven by an increase in net interest income, and was partially offset by a higher provision for credit losses, a decrease in other income, an increase in other expenses, and higher federal and state income taxes.

Interest Income and Expense – Three Months Ended March 31, 2023 and 2022

Net interest income and net interest margin

Net interest income in the first quarter of 2023 increased by $3.3 million, or 27.4%, when compared to the first quarter of 2022. The Company’s net interest margin (tax equivalent basis) increased to 4.14%, representing an increase of 110 basis points for the three months ended March 31, 2023 as compared to the same period in 2022. The increase in the net interest margin (tax equivalent basis) was primarily due to higher average balances of and yields earned on loans and investment securities, higher yields earned on average interest-bearing deposits in other financial institutions and federal funds sold, and lower average balances of interest-bearing liabilities, which were partially offset by lower average balances of interest-bearing deposits in other financial institutions and federal funds sold, and higher rates paid on average interest-bearing liabilities. Total interest income increased by $4.3 million, or 31.8%, for the three months ended March 31, 2023, while total interest expense increased by $1.1 million, or 61.4%, both as compared to the same period in 2022.

The most significant factors impacting net interest income during the three month period ended March 31, 2023 were as follows:

Positive Impacts:

Negative Impacts:

Loans

Average loan balances increased by $112.7 million, or 9.9%, and average yields earned increased by 0.64% to 5.25% for the three months ended March 31, 2023, as compared to the same period in 2022. The increase in average loan balances was primarily due to organic loan growth, including growth in average loan balances of approximately $63.3 million related to Virginia Partners’ expansion into the Greater Washington market, which was partially offset by the forgiveness of loans originated and funded under the PPP. The increase in average yields earned was primarily due to repricing of variable rate loans and higher average yields on new loan originations, which were partially offset by lower net loan fees earned related to the forgiveness of loans originated and funded under the PPP and pay-offs of higher yielding fixed rate loans. Total average loans were 83.6% of total average interest-earning assets for the three months ended March 31, 2023, compared to 71.1% for the three months ended March 31, 2022.

Investment securities

Average total investment securities balances increased by $20.0 million, or 14.8%, and average yields earned increased by 0.54% to 2.61% for the three months ended March 31, 2023, as compared to the same period in 2022. The increases in average total investment securities balances and average yields earned was primarily due to management of the investment securities portfolio in light of the Company’s liquidity needs and higher interest rates over the comparable periods. Total average investment securities were 10.4% of total average interest-earning assets for the three months ended March 31, 2023, compared to 8.4% for the three months ended March 31, 2022.

Interest-bearing deposits

Average total interest-bearing deposit balances decreased by $140.3 million, or 15.0%, and average rates paid increased by 0.46% to 1.00% for the three months ended March 31, 2023, as compared to the same period in 2022, primarily due to scheduled maturities of time deposits that were not replaced and deposit outflows due to competitive pressures in the higher interest rate environment and the negative banking industry developments associated with multiple high-profile bank failures during the first quarter of 2023, partially offset by organic deposit growth, including average growth of approximately $5.9 million in interest-bearing deposits related to Virginia Partners’ expansion into the Greater Washington market.

Borrowings

Average total borrowings increased by $27.9 million, or 56.8%, and average rates paid increased by 0.40% to 4.44% for the three months ended March 31, 2023, as compared to the same period in 2022. The increase in average total borrowings balances and rates paid was primarily due to an increase in the average balance of short-term Federal Home Loan Bank advances due to the aforementioned decrease in average interest-bearing deposit balances, which was partially offset by a decrease in the average balance of long-term Federal Home Loan Bank advances resulting from maturities and payoffs of borrowings that were not replaced and scheduled principal curtailments.

Provision for Credit Losses

The provision for credit losses in the first quarter of 2023 was $300 thousand, an increase of $235 thousand, or 362.2%, when compared to the provision for credit losses of $65 thousand in the first quarter of 2022. The increase in the provision for credit losses during the three months ended March 31, 2023, as compared to the same period of 2022, was primarily due to changes in the assessment of economic factors, and for March 31, 2023, updated views on the downside risks to the economic forecast compared to January 1, 2023, and organic loan growth, which were partially offset by lower net charge-offs and a lower required reserve on unfunded credit commitments.

The provision for credit losses during the three months ended March 31, 2023, as well as the allowance for credit losses as of March 31, 2023, represents management’s best estimate of the impact of current economic trends, including the impact of the COVID-19 pandemic, forecasts of a potential recession in the U.S. and recent negative banking industry developments associated with multiple high-profile bank failures, on the ability of the Company’s borrowers to repay their loans. Management continues to carefully assess the exposure of the Company’s loan portfolio to COVID-19 pandemic related factors, economic trends, such as forecasts of a potential recession and the aforementioned recent banking industry developments, and their potential effects on asset quality. As of March 31, 2023, the Company’s delinquencies and nonperforming assets had not been materially impacted by the COVID-19 pandemic.

Other Income

Other income in the first quarter of 2023 decreased by $39 thousand, or 3.0%, when compared to the first quarter of 2022. Key changes in the components of other income for the three months ended March 31, 2023, as compared to the same period in 2022, are as follows:

Other Expenses

Other expenses in the first quarter of 2023 increased by $1.3 million, or 12.0%, when compared to the first quarter of 2022. Key changes in the components of other expenses for the three months ended March 31, 2023, as compared to the same period in 2022, are as follows:

Federal and State Income Taxes

Federal and state income taxes for the three months ended March 31, 2023 increased by $490 thousand, or 70.4%, when compared to the three months ended March 31, 2022. This increase was due primarily to higher consolidated income before taxes and higher merger related expenses, which are typically non-deductible. For the three months ended March 31, 2023, the Company’s effective tax rate was approximately 26.3% as compared to 24.8% for the same period in 2022.

Virginia Partners is not subject to Virginia state income tax, but instead pays Virginia franchise tax. The Virginia franchise tax paid by Virginia Partners is recorded in the “Other expenses” line item on the Consolidated Statements of Income for the three months ended March 31, 2023 and 2022.

Balance Sheet

Changes in key balance sheet components as of March 31, 2023 compared to December 31, 2022 were as follows:

Changes in key balance sheet components as of March 31, 2023 compared to March 31, 2022 were as follows:

As of March 31, 2023, all of the capital ratios of Delmarva and Virginia Partners continue to exceed regulatory requirements, with total risk-based capital substantially above well-capitalized regulatory requirements.

Asset Quality

The asset quality measures depicted below continue to reflect the Company’s efforts to prudently charge-off loans as losses are identified and maintain an appropriate allowance for credit losses.

The following table depicts the net (recovery) charge-off activity for the three months ended March 31, 2023 and 2022:

*  Annualized for the three months ended March 31, 2023 and 2022, respectively.

The following table depicts the level of the allowance for credit losses as of March 31, 2023, December 31, 2022 and March 31, 2022:

The following table depicts the unamortized discounts on acquired loans related to the acquisitions of Liberty Bell Bank and Virginia Partners:

The following table depicts the level of nonperforming assets as of March 31, 2023, December 31, 2022 and March 31, 2022:

About Partners Bancorp

Partners Bancorp is the holding company for The Bank of Delmarva and Virginia Partners Bank. The Bank of Delmarva commenced operations in 1896. The Bank of Delmarva’s main office is in Seaford, Delaware and it conducts full service commercial banking through eleven branch locations in Maryland and Delaware, and three branches, operating under the name Liberty Bell Bank, in the South Jersey/Philadelphia metro market. The Bank of Delmarva focuses on serving its local communities, knowing its customers and providing superior customer service. Virginia Partners Bank, headquartered in Fredericksburg, Virginia, was founded in 2008 and has three branches in Fredericksburg, Virginia and operates a full service branch and commercial banking office in Reston, Virginia. In Maryland, Virginia Partners Bank trades under the name Maryland Partners Bank (a division of Virginia Partners Bank), and operates a full service branch and commercial banking office in La Plata, Maryland and a Loan Production Office in Annapolis, Maryland. Virginia Partners Bank also owns a controlling stake in Johnson Mortgage Company, LLC, which is a residential mortgage company headquartered in Newport News, Virginia, with a branch office in Fredericksburg, Virginia. For more information, visit www.partnersbancorp.com, www.bankofdelmarvahb.com and www.vapartnersbank.com.

For further information, please contact John W. Breda, President and Chief Executive Officer, at 410-548-1100 x10233, Lloyd B. Harrison, III, Senior Executive Vice President, at 540-899-2234, J. Adam Sothen, Chief Financial Officer, at 540-322-5521, or Betsy Eicher, Chief Accounting Officer, at 667-253-2904.

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, projections, predictions, expectations, or beliefs about future events or results that are not statements of historical fact. Statements in this press release which express “belief,” “intention,” “expectation,” “potential” and similar expressions, or which use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “intend,” “should,” “could,” or similar expressions, identify forward-looking statements. These forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company’s management. These statements are inherently uncertain, and there can be no assurance that the underlying assumptions will prove to be accurate. Actual results could differ materially from those anticipated or implied by such statements. Forward-looking statements in this release may include, without limitation, statements related to the completion and benefits of the merger with LINK, statements related to the termination of the merger with OceanFirst, statements in Mr. Breda’s quote regarding expected future financial performance, potential effects of the COVID-19 pandemic, strategic business initiatives including growth in the Greater Washington market and the anticipated effects thereof, margin expansion or compression, technology initiatives, asset quality, adequacy of allowances for credit losses and the level of future charge-offs, capital levels, the effect of future market and industry trends and the effects of future interest rate fluctuations. Factors that could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to:

These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. For additional information on risk factors that could affect the forward-looking statements contained herein, see the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission (“SEC”).

PARTNERS BANCORP
CONSOLIDATED BALANCE SHEETS

The amounts presented in the Consolidated Balance Sheets as of March 31, 2023 and 2022 are unaudited but include all adjustments which, in management's opinion, are necessary for fair presentation. 

PARTNERS BANCORP

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

The amounts presented in these Consolidated Statements of Income for the three months ended March 31, 2023 and 2022 are unaudited

but include all adjustments which, in management's opinion, are necessary for fair presentation.