An all-stock transaction is a deal where one company acquires another using only its own shares instead of cash or other assets. For investors, this means exchanging ownership stakes rather than cash, which can affect the value and control of the companies involved. It often signals a focus on growth and can influence the stock prices of both companies.
loan-to-deposit ratiofinancial
Loan-to-deposit ratio measures how much a bank has lent out compared with the money customers have deposited, expressed as a percentage. Think of it like the share of a household’s savings that has been loaned to others: a higher ratio can boost earnings but reduce cash on hand and increase risk, while a lower ratio means more liquidity but potentially lower returns—key for investors assessing a bank’s balance of profit and safety.
cet1 ratiofinancial
CET1 ratio measures a bank's core equity capital (the most loss-absorbing funds like common stock and retained earnings) relative to the size of its risk-adjusted assets. It shows how big the bank's financial cushion is compared with what it has on its books; a higher ratio means greater ability to absorb losses, lower regulatory risk, and generally more investor confidence in the bank's stability.
NEW YORK--(BUSINESS WIRE)--
On December 18, 2025, Burke & Herbert Financial Services Corp. (NASDAQ: BHRB) (KBRA senior unsecured rating of BBB / Stable Outlook), the parent company of Burke and Herbert Bank and Trust Company, announced a definitive merger agreement with LINKBANCORP, Inc. (NASDAQ: LNKB), the parent company of LINKBANK, pursuant to which BHRB will acquire LNKB in an all-stock transaction. The transaction, which had an estimated value of approximately $354 million, is expected to close in 2Q26.
The proposed transaction would provide BHRB with meaningful scale, pushing the company beyond the $10 billion in asset threshold, with pro forma assets of $11.0 billion, loans of $8.0 billion, and deposits of $9.1 billion. Additionally, LNKB would expand BHRB's market of operations into parts of central and eastern PA while also deepening its presence across parts of the Eastern Shore of MD and DE. The expansion into these markets along with LNKB's solid funding base would enhance BHRB's existing deposit franchise that is considered by KBRA to be a key driver of the company's ratings. Notably, BHRB reported a pro forma loan-to-deposit ratio of 88%, with deposit costs expected to continue to track below the rated peer average (pro forma cost of deposits is 1.96%). BHRB estimates a gross credit mark of $36 million, or 1.5% of LNKB's loan portfolio, as well as interest rate marks of approximately $38 million that is accretable over the next four years. LNKB's rather granular loan portfolio that includes an elevated CRE concentration (pro forma CRE concentration of ~350%) fits well within BHRB's relationship focused lending strategy. With regards to capital, BHRB's capital ratios would decrease materially, with the company reporting a pro forma CET1 ratio of 11.4% (BHRB's CET1 ratio was 12.8% at 3Q25). That said, BHRB has historically demonstrated rather prudent management of capital as reflected in its capital trends following its most recent merger with Summit Financial Group, Inc. completed in 2Q24 (BHRB's CET1 ratio has increased nearly 200 bps since 2Q24).
About KBRA
KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.
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