Burke & Herbert Financial Services in Alexandria, Va., has agreed to buy LINKBANCORP in Camp Hill, Pa.
The $8 billion-asset Burke & Herbert said in a press release that it will pat $354.2 million in stock for the $3.1 billion-asset LINKBANCORP. The deal, which is expected to close in the second quarter, priced LINKBANCORP at 151% of its tangible book value.
The acquisition “marks another transformative milestone in Burke & Herbert’s long history,” David Boyle, Burke & Herbert’s chairman and CEO, said in the 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.”
Three LINKBANCORP directors will join Burke & Herbert’s board. Andrew Samuel, LINKBANCORP’s CEO, will serve as a senior adviser and join the board of Burke & Herbert Bank.
The deal is expected to by 18% accretive to Burke & Herbert’s 2027 earnings per share. It should take a little more than three years for Burke & Herbert to earn back any dilution to its tangible book value.
Burke & Herbert plans to cut 37.5% of LINKBANCORP’s annual noninterest expenses. Burke & Herbert expects to incur $41.3 million of merger-related expenses.
Keefe, Bruyette & Woods and Troutman Pepper Locke advised Burke & Herbert. Stephens and Luse Gorman advised LINKBANCORP.