Burke & Herbert Financial Services Corp. (NASDAQ: BHRB) and LINKBANCORP, Inc. (NASDAQ: LNKB) have entered into a definitive merger agreement that values the transaction at approximately $354.2 million in an all‑stock deal. Under the terms, each LINK share will be exchanged for 0.1350 BHRB shares, giving BHRB shareholders an estimated 75% ownership stake in the combined company while LINK shareholders will hold about 25%. The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and shareholder votes.
The combined institution will have pro‑forma total assets of roughly $11.0 billion and deposits of about $9.1 billion, a significant expansion of Burke & Herbert’s balance sheet. The deal adds roughly $2.8 billion of commercial real‑estate exposure and enhances the bank’s deposit base through LINK’s core deposit intangible, which is being amortized over seven years. The all‑stock structure preserves liquidity for both parties and aligns management incentives for a smooth integration.
Strategically, the merger extends Burke & Herbert’s footprint into Pennsylvania and strengthens its presence across the Mid‑Atlantic region, covering Delaware, Kentucky, Maryland, Virginia, West Virginia, and the new Pennsylvania market. The expanded geographic reach positions the combined bank to serve a broader customer base and leverage cross‑sell opportunities in a region that has seen steady economic growth. The transaction also delivers expected cost synergies and a broadened loan portfolio, supporting the bank’s long‑term growth strategy.
Leadership integration is a key focus of the deal. Key LINK executives, including CEO Andrew Samuel, will join Burke & Herbert’s board and management team, while BHRB’s chair and CEO David P. Boyle has described the acquisition as a “transformative milestone” that will reinforce the bank’s reputation as a trusted financial partner. The cultural alignment between the two institutions is expected to facilitate a seamless transition and preserve customer relationships.
Financially, BHRB reported net income of $29.7 million and diluted EPS of $1.97 for the quarter ended September 30, 2025, a beat of $0.09 per share against a consensus estimate of $1.88. The company’s revenue of $85.36 million missed the consensus by 1.78%, reflecting modest pressure on fee income. LNKB posted net income of $7.8 million and diluted EPS of $0.21 for the same quarter, matching its Q3 2024 EPS and showing a slight improvement over Q2 2025. These results underscore the solid earnings performance of both banks and provide a strong foundation for the combined entity’s profitability.
The merger is expected to create a more diversified and resilient community bank, with enhanced scale, a broader geographic footprint, and a stronger balance sheet. Management anticipates that the combined bank will achieve the projected cost synergies and benefit from a broadened loan portfolio, positioning it to capture growth opportunities in the Mid‑Atlantic region while maintaining disciplined capital and risk management practices.
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