- Key insight: Burke & Herbert in Alexandria, Virginia, would gain its first exposure to Pennsylvania's banking market with a $354 million stock deal for Linkbancorp in Camp Hill.
- Expert quote: The transaction "appears to be sound and helps provide geographic diversification to Burke & Herbert's footprint," Janney Montgomery Scott Analyst Daniel Cardenas wrote Friday in a research note.
- Supporting data: Burke & Herbert says its previous deal, a merger with Summit Financial Group in Moorefield, West Virginia, exceeded expectations for cost savings, capital generation and return on average assets.
A Virginia bank that waited more than 170 years to make its
The $7.9 billion-asset Burke & Herbert Financial Services Corp. in Alexandria disclosed late Thursday that it has agreed to buy Linkbancorp of Camp Hill, Pennsylvania, for $354.2 million in stock. The deal would move Burke & Herbert into Pennsylvania. It also continues the regional bank transformation that started in 2023, when the 173-year-old company, Virginia's oldest bank, announced a merger-of-equals with Summit Financial Group in Moorefield, West Virginia.
"This strategic acquisition marks another transformative milestone in Burke & Herbert's long history," Burke & Herbert Chairman and CEO David Boyle said in a press release. "Our entry into Pennsylvania and the expanded presence across key Mid-Atlantic markets underscores our unwavering commitment to community banking and reinforces our reputation as a trusted financial partner wherever we operate."
The combined company would start with $11 billion in assets and $9.1 billion of deposits. Burke & Herbert is projecting cost savings equal to 37.5% of Linkbancorp's noninterest expense base, which totaled $74.9 million in 2024 and $55.9 million through the first nine months of 2025. It's projecting earnings-per-share accretion totaling 18% in 2027, the first full year of combined operations.
Janney Montgomery Scott Analyst Daniel Cardenas termed the deal "transformative" in a research note Friday. Cardenas noted it expands the company's footprint into the Pennsylvania market and is expected to be a meaningful additive to earnings-per-share in 2027. It also pushes Burke & Herbert well beyond $10 billion of assets, softening the blow from the loss of interchange income that occurs after banks exceed the Durbin-Amendment threshold.
Burke & Herbert expects the transaction to close in the second quarter of 2026.
Boyle, who has led Burke & Herbert since 2020, has been at the center of the company's transformation. Boyle has presided over Burke & Herbert's
Founded in 2018, the $3.1 billion-asset Linkbancorp has also resorted to merger-and-acquisition activity to spur growth. It
Combining with the larger Burke & Herbert "accelerates our ability to deliver value for all our stakeholders," Linkbancorp CEO Andrew Samuel said in the press release.
Linkbancorp shareholders are expected to own about 25% of the merged company. Two Linkbancorp directors are expected to join Burke & Herbert's board. Samuel will join the board of Burke & Herbert Bank and serve as a senior advisor. Two Linkbancorp executives, Carl Lundblad and Brent Smith, are slated to join the Burke & Herbert management team.
Dan Sondhelm, CEO of Sondhelm Partners, an Alexandria-based financial services consulting firm, called the deal "a straightforward play for scale and expanded footprint," in an email Friday. "Burke & Herbert pushes into Pennsylvania and gets to over 100 locations across six states. The value is cost elimination when you combine two banks into an $11 billion operation."
The transaction "appears to be sound and helps provide geographic diversification to Burke & Herbert's footprint," Janney's Cardenas wrote.
Though Burke & Herbert doesn't have a long track record in M&A, its one foray into the space has gone better-than-expected. The deal for Summit surpassed projections for capital generation, cost savings and return on average assets, according to the company.
