Burke & Herbert Financial Services and LINKBANCORP's Major Merger Agreement Set to Transform Community Banking Landscape

Burke & Herbert and LINKBANCORP Unite for a Stronger Future in Community Banking

In a significant move, Burke & Herbert Financial Services Corp. has entered into a merger agreement with LINKBANCORP, Inc., marking a transformative moment for both institutions and the communities they serve. This all-stock merger, valued at approximately $354.2 million or $9.38 per share of LINK common stock, is expected to bolster their combined operations this coming 2026.

Transaction Overview

The merger is poised to expand Burke & Herbert's footprint into Pennsylvania, significantly enhancing their presence with over 100 locations across key states including Delaware, Kentucky, Maryland, Virginia, and West Virginia. The newly formed bank holding company will boast total assets nearing $11 billion and total deposits around $9.1 billion, solidifying its position as a formidable player in the Mid-Atlantic banking sector.

This strategic acquisition is more than a numerical expansion; it signifies a commitment to delivering exceptional value to customers and stakeholders alike. Both CEOs, David P. Boyle of Burke & Herbert and Andrew Samuel of LINK, emphasize the aligned cultures between their banks, focusing on community investment and leadership development within the banking sector.

Financial Implications

The merger indicates an optimistic financial forecast for the combined operations, with an anticipated earnings per share of approximately $9.18 in the first full year. Such projections are based on the realization of expected cost savings and the successful integration of operations while maintaining current service excellence.

The merger agreement allows LINK shareholders to receive 0.1350 shares of Burke & Herbert for each share of LINK common stock. Based on this structure, existing shareholders of Burke & Herbert will control around 75% of the newly formed entity, while LINK shareholders will hold about 25%. This arrangement is designed to ensure continuity for shareholders, with dividends remaining neutral in cash flow impact.

Leadership Transition and Integration Plans

As part of the merger process, two members of LINK's board will join Burke & Herbert's board, alongside LINK's CEO Andrew Samuel, who will serve as a Senior Advisor. Meanwhile, select LINK executives will be integrated into Burke & Herbert's management team, reinforcing a unified leadership strategy.

Advisory roles have also been outlined, with Keefe, Bruyette & Woods acting as financial advisors for Burke & Herbert and Stephens Inc. supporting LINK. Legal counsel for both parties highlights the serious commitment to ensuring compliance and strategic alignment throughout the merger process.

Anticipated Timeline and Next Steps

The completion of this merger is anticipated in the second quarter of 2026, pending necessary regulatory approvals and common shareholder consent. To facilitate transparency, both companies are committed to sharing detailed updates through their respective Investor Relations channels and the SEC.

Investors and stakeholders are encouraged to review related documents and the definitive merger agreement once filed. This will outline the comprehensive details surrounding the transaction and provide further context into its implications for the banking community.

The Future of Community Banking

This merger represents more than a financial transaction; it signals a robust commitment to community banking values and the essential role of trust in financial services. By pooling resources and expertise, Burke & Herbert and LINKBANCORP are not only seeking to streamline their operational efficiencies but are also demonstrating their dedication to serving their communities better than ever before. As they navigate this exciting new chapter, customers can expect innovative solutions and enhanced service offerings as a testament to their commitment to delivering more value.

In conclusion, as Burke & Herbert and LINKBANCORP embark on this transformative journey together, they are set to make waves in the community banking landscape, reinforcing their leadership roles while fostering economic growth and social prosperity within their respective markets.