Alexandria Bank to buy Pennsylvania bank for $354 million

Alexandria’s oldest bank, Burke & Herbert, has made a significant move by announcing its acquisition of LINKBANCORP, Inc., the parent company of LINKBANK, in a deal worth approximately $354.2 million. This all-stock transaction marks a pivotal moment in Burke & Herbert’s history, expanding its reach into Pennsylvania and further solidifying its presence in several key Mid-Atlantic markets. The merger will result in more than 100 banking locations spanning across Delaware, Kentucky, Maryland, Pennsylvania, Virginia, and West Virginia.

With this acquisition, the combined assets of Burke & Herbert and LINK will amount to around $11 billion, with total deposits of approximately $9.1 billion. The deal is poised to generate a combined earnings per share of approximately $9.18 in the first year of operations, considering the anticipated cost savings from the merger. Both institutions share a commitment to their customers, communities, employees, and shareholders, aligning their core values towards mutual success.

David P. Boyle, chair and CEO of Burke & Herbert, expressed enthusiasm about the merger, emphasizing the value it will provide to stakeholders. By leveraging the strengths of both entities, Boyle believes that they can deliver unmatched service to customers and communities in the region. The entrance into Pennsylvania underscores Burke & Herbert’s dedication to community banking, reinforcing its position as a trusted financial partner wherever it operates.

Andrew Samuel, the CEO of LINK, echoed Boyle’s sentiments, highlighting the shared vision of investing in future leaders and fostering economic and social prosperity through community banking. The alignment of values between the two institutions sets the stage for continued growth, emphasizing the integral role that community banks play in local development.

In detailing the specifics of the merger agreement, holders of LINK common stock will receive 0.1350 shares of Burke & Herbert common stock for each share of LINK common stock. Post-merger, existing Burke & Herbert shareholders are projected to hold approximately 75% of the combined company’s shares, with LINK shareholders owning the remaining 25%. The exchange is expected to maintain the current cash dividend rates for LINK shareholders.

Upon completion of the transaction, two members of the LINK board of directors will join Burke & Herbert’s board, signaling a collaborative approach to governance. Andrew Samuel will also join Burke & Herbert’s board as a Senior Advisor, further solidifying the partnership between the two institutions. KEY officials will assume key positions in Burke & Herbert’s executive management team, with a focus on driving growth and market leadership in Pennsylvania.

The closure of the transaction is anticipated in the second quarter of 2026, subject to regulatory approvals and shareholder consent from both companies. Directors from both organizations have committed to voting in favor of the merger, underlining their confidence in the strategic alignment and value creation opportunities from the deal. Shareholders are encouraged to review the definitive agreement, which will be filed with the Securities and Exchange Commission (“SEC”), for further insights into the merger’s details.