LinkBancor Q4 Earnings Affected by Credit Provision
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Should l Buy LNKB?
Earnings for the fourth quarter of 2025 were adversely affected by increased provision expense primarily related to a specific reserve established for a single commercial credit with total exposure of $5M, requiring a full impairment, with an after-tax effect of $4M. The determination of this reserve resulted from concerns with the Commercial Relationship raised during the fourth quarter of 2025, leading to the identification of purported fraudulent activity in January 2026. "Overall, we were pleased with the core performance reflected in our quarterly and annual results, despite the impact of the required provision for a single commercial lending relationship," said Andrew Samuel, CEO of LinkBancor. "Annual net income reached an all-time high on strong growth in net interest income, continued progress in fee income and continued discipline in operating expenses. Looking ahead to 2026, we are excited to build on our strong organic growth, deliver exceptional service to our clients, and prepare for a successful merger with Burke & Herbert to create value for our shareholders."
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Analyst Views on LNKB
Wall Street analysts forecast LNKB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LNKB is 9.42 USD with a low forecast of 9.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 9.220
Low
9.00
Averages
9.42
High
10.00
Current: 9.220
Low
9.00
Averages
9.42
High
10.00
About LNKB
LINKBANCORP, Inc. is a bank holding company. The Company's subsidiary bank, LINKBANK (the Bank), is a Pennsylvania state-chartered bank serving individuals, families, nonprofits and business clients throughout Pennsylvania, Maryland, Delaware and Virginia through 24 client solutions centers and www.linkbank.com. It offers a full suite of deposit products and cash management services focused on the small business and nonprofit segments. Its principal lending activity has been the origination of commercial real estate loans, commercial business loans, and to a lesser extent, commercial real estate construction and land development loans, residential real estate loans, home equity loans, consumer loans and agriculture loans. Its commercial real estate and multi-family loans generally have amortization terms of 15 to 25 years and have adjustable interest rates. It offers both fixed-rate and adjustable-rate construction and land loans, although most of these loans have fixed interest rates.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- LINKBANCORP Transaction Review: The sale of LINKBANCORP, Inc. (NASDAQ:LNKB) to Burke & Herbert Financial Services Corp. involves an exchange of 0.1350 shares of Burke & Herbert common stock for each LINKBANCORP share, with Halper Sadeh LLC potentially seeking increased consideration for shareholders.
- Merger Impact Analysis: The merger between Burke & Herbert Financial Services Corp. (NASDAQ:BHRB) and LINKBANCORP is expected to result in Burke & Herbert shareholders owning approximately 75% of the combined entity, with Halper Sadeh LLC encouraging shareholders to understand their legal rights and options.
- No-Risk Legal Consultation: Halper Sadeh LLC offers legal consultations without upfront fees, aiming to provide affected shareholders with additional disclosures and relief, ensuring their rights are fully protected in the transaction.
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LINKBANCORP Reports Q4 Earnings Amid Acquisition Uncertainty
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- Deteriorating Loan Quality: Signs of declining loan quality raise market concerns, potentially impacting future financial stability, especially in light of the upcoming acquisition.
- Acquisition Deal: Burke & Herbert is set to acquire LINKBANCORP in an all-stock transaction valued at $354 million, which will reshape the market positioning of both companies.
- Market Reaction: Seeking Alpha’s Quant Rating reflects a cautious stance on LINKBANCORP, as investors express concerns regarding its future profitability and the integration capabilities post-merger.
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LINKBANCORP Reports 2025 Financial Highlights
- Net Income Decline: LINKBANCORP reported a net income of $2.9 million for Q4 2025, a 63.7% decrease from $7.8 million in Q3 2025, primarily due to a full impairment on a commercial credit relationship, adversely impacting profitability.
- Merger Costs Impact: The adjusted pre-tax net income during the merger with Burke & Herbert Financial Services Corp. was $11.7 million, slightly up from $11.0 million in the previous quarter, indicating stability in core operations, although merger costs continue to pressure overall financial performance.
- Loan and Deposit Changes: As of December 31, 2025, LINKBANCORP's total loans reached $2.56 billion, a 4.1% increase from $2.46 billion on September 30, 2025, reflecting strong growth in commercial loans, despite deposits decreasing to $2.55 billion, down 4.3%, indicating seasonal outflows.
- Shareholder Equity Growth: LINKBANCORP's shareholder equity increased to $306.4 million as of December 31, 2025, up 0.3% from $305.5 million on September 30, 2025, with book value per share rising to $8.18, demonstrating robust capital management.
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- Valuation Advantage: The company boasts a price-to-earnings ratio of 1.10, significantly lower than the industry average of 11.70, suggesting its stock is undervalued, potentially drawing interest from value investors and enhancing market competitiveness.
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- Market Expansion: The acquisition will allow BHRB to enter parts of central and eastern Pennsylvania while deepening its presence in Maryland and Delaware, thereby enhancing its deposit franchise and competitive positioning in these markets.
- Loan and Deposit Metrics: Post-merger, BHRB will have total loans of $8 billion and deposits of $9.1 billion, with a loan-to-deposit ratio of 88%, and expected deposit costs tracking below peer averages, further solidifying its financial stability.
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- Shareholder Rights Concerns: Burke & Herbert shareholders will own about 75% of the combined entity, while LINKBANCORP shareholders will hold only 25%, which may severely diminish LINKBANCORP shareholders' decision-making power and interests post-merger.
- Board Responsibility Investigation: The Ademi Firm is investigating whether LINKBANCORP's board has fulfilled its fiduciary duties to all shareholders, particularly regarding the restrictions on competing transactions and the associated penalty clauses.
- Legal Compliance Risks: The significant penalties imposed by the transaction agreement on LINKBANCORP for accepting competing bids could lead to legal challenges, impacting the company's reputation and future shareholder trust.
See More
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- Legal Investigation Launched: Halper Sadeh LLC is investigating SkyWater Technology, Inc. (NASDAQ:SKYT) for its sale to IonQ, involving $15.00 in cash and $20.00 in IonQ common stock, potentially violating fiduciary duties to shareholders, urging them to contact the firm to enforce their rights.
- LINKBANCORP Transaction Review: The sale of LINKBANCORP, Inc. (NASDAQ:LNKB) to Burke & Herbert Financial Services Corp. involves an exchange of 0.1350 shares of Burke & Herbert common stock for each LINKBANCORP share, with Halper Sadeh LLC potentially seeking increased consideration for shareholders.
- Merger Impact Analysis: The merger between Burke & Herbert Financial Services Corp. (NASDAQ:BHRB) and LINKBANCORP is expected to result in Burke & Herbert shareholders owning approximately 75% of the combined entity, with Halper Sadeh LLC encouraging shareholders to understand their legal rights and options.
- No-Risk Legal Consultation: Halper Sadeh LLC offers legal consultations without upfront fees, aiming to provide affected shareholders with additional disclosures and relief, ensuring their rights are fully protected in the transaction.
See More
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- Earnings Report: LINKBANCORP's Q4 GAAP EPS stands at $0.08 with revenues of $30.04 million, indicating stable income performance but underlying profitability pressures.
- Deteriorating Loan Quality: Signs of declining loan quality raise market concerns, potentially impacting future financial stability, especially in light of the upcoming acquisition.
- Acquisition Deal: Burke & Herbert is set to acquire LINKBANCORP in an all-stock transaction valued at $354 million, which will reshape the market positioning of both companies.
- Market Reaction: Seeking Alpha’s Quant Rating reflects a cautious stance on LINKBANCORP, as investors express concerns regarding its future profitability and the integration capabilities post-merger.
See More
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- Net Income Decline: LINKBANCORP reported a net income of $2.9 million for Q4 2025, a 63.7% decrease from $7.8 million in Q3 2025, primarily due to a full impairment on a commercial credit relationship, adversely impacting profitability.
- Merger Costs Impact: The adjusted pre-tax net income during the merger with Burke & Herbert Financial Services Corp. was $11.7 million, slightly up from $11.0 million in the previous quarter, indicating stability in core operations, although merger costs continue to pressure overall financial performance.
- Loan and Deposit Changes: As of December 31, 2025, LINKBANCORP's total loans reached $2.56 billion, a 4.1% increase from $2.46 billion on September 30, 2025, reflecting strong growth in commercial loans, despite deposits decreasing to $2.55 billion, down 4.3%, indicating seasonal outflows.
- Shareholder Equity Growth: LINKBANCORP's shareholder equity increased to $306.4 million as of December 31, 2025, up 0.3% from $305.5 million on September 30, 2025, with book value per share rising to $8.18, demonstrating robust capital management.
See More
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- Earnings Estimate Boost: Prairie Operating Co. has seen its earnings estimate increase by 4.5% over the last 60 days, indicating strong market confidence in its future performance, which could drive stock price appreciation and attract more investor interest.
- Valuation Advantage: The company boasts a price-to-earnings ratio of 1.10, significantly lower than the industry average of 11.70, suggesting its stock is undervalued, potentially drawing interest from value investors and enhancing market competitiveness.
- LINKBANCORP's Strong Performance: LINKBANCORP, Inc. has experienced a 2.1% increase in its earnings estimate over the past 60 days, reflecting robust business operations in Central and Southeastern Pennsylvania, which may strengthen its market share and customer base.
- Skyworks Solutions Growth Potential: Skyworks Solutions has seen a 0.9% increase in its earnings estimate over the last 60 days, with a price-to-earnings ratio of 12.94, lower than the industry average of 21.30, highlighting its competitive edge in the high-performance analog and mixed-signal semiconductor market.
See More
Burke & Herbert to Acquire LINKBANCORP for $354 Million in All-Stock Deal
- Merger Agreement: Burke & Herbert Financial Services Corp. announced a definitive merger agreement with LINKBANCORP valued at approximately $354 million, expected to close in Q2 2026, significantly enhancing the company's scale by surpassing the $10 billion asset threshold.
- Market Expansion: The acquisition will allow BHRB to enter parts of central and eastern Pennsylvania while deepening its presence in Maryland and Delaware, thereby enhancing its deposit franchise and competitive positioning in these markets.
- Loan and Deposit Metrics: Post-merger, BHRB will have total loans of $8 billion and deposits of $9.1 billion, with a loan-to-deposit ratio of 88%, and expected deposit costs tracking below peer averages, further solidifying its financial stability.
- Capital Management: Although BHRB's CET1 ratio will decrease to 11.4% post-merger, the company's historical prudent capital management suggests it will maintain robust capital levels, reflecting a strong strategy following its recent merger with Summit Financial Group in Q2 2024.
See More
Ademi Firm Investigates LINKBANCORP's Transaction with Burke & Herbert
- Transaction Structure Analysis: LINKBANCORP shareholders will receive 0.1350 shares of Burke & Herbert common stock for each LINKBANCORP share, equating to approximately $9.38 per share, indicating potential value implications for LINKBANCORP shareholders.
- Shareholder Rights Concerns: Burke & Herbert shareholders will own about 75% of the combined entity, while LINKBANCORP shareholders will hold only 25%, which may severely diminish LINKBANCORP shareholders' decision-making power and interests post-merger.
- Board Responsibility Investigation: The Ademi Firm is investigating whether LINKBANCORP's board has fulfilled its fiduciary duties to all shareholders, particularly regarding the restrictions on competing transactions and the associated penalty clauses.
- Legal Compliance Risks: The significant penalties imposed by the transaction agreement on LINKBANCORP for accepting competing bids could lead to legal challenges, impacting the company's reputation and future shareholder trust.
See More
