LINKBANCORP (LNKB) AI Stock Analysis

• Market Cap: $307.61M
• Dividend Yield: 3.61%
• Average Volume (3M): 136.35K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.61
• Revenue Growth: 15.66%
• EPS Growth: N/A
• Country: US
• Employees: 298
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.10
• Shares Outstanding: 37,467,594
• 10 Day Avg. Volume: 161,318
• 30 Day Avg. Volume: 136,351
• PEG Ratio: 0.34
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 12.93
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 9.55
• 1Y Price Target: $9.00
• Price Target Upside: 9.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.98
• Revenue Forecast (FY): $127.50M

• Rating: 60 Neutral
• Price Target: $8.50 ▲(3.53% Upside)
• Action: Downgraded Date: 03/13/26
• Date: Action: Downgraded 03/13/26

The score is primarily supported by improving profitability and a reasonably stable balance sheet, but it is held back by inconsistent cash-flow conversion and weak technical momentum. Valuation is mixed (good yield but elevated P/E), while corporate events are broadly constructive yet include notable credit/impairment risk.

Positive Factors

Strategic merger and scale

The announced all-stock merger materially increases scale and regional footprint, which should lower unit costs, broaden deposit and loan diversification, and enhance competitive positioning. Over months this can enable stronger pricing, cross-sell and efficiency gains that support durable earnings.

Improving profitability and margins

The rebound from a 2023 loss into materially higher net and operating margins in 2024–25 indicates stronger core profitability and operating leverage. Sustained margins support internal capital generation, dividend capacity, and a higher tolerance for provisioning through credit cycles over the next several months.

Manageable leverage and capital growth

A declining debt-to-equity ratio and expanding equity base provide a firmer capital buffer to absorb losses, support lending growth, and underwrite capital returns. Stronger tangible book and measured leverage increase balance-sheet resilience during integration and future lending cycles.

Negative Factors

Credit loss from single relationship

A large impairment from one commercial borrower highlights concentration and underwriting risk. Such single-counterparty losses can recur and force higher provisioning, tighter underwriting, and slower loan growth, weighing on durable earnings and capital planning over the medium term.

Deteriorating free cash flow quality

A pronounced FCF decline reduces organic funding for dividends, M&A, and balance-sheet growth. Mixed cash conversion versus reported earnings implies potential earnings that are less cash-backed, increasing reliance on deposits or external funding and limiting durable financial flexibility.

Earnings volatility and historical loss

The swing to a 2023 loss and subsequent volatility in cash-flow and earnings underscore sensitivity to credit events and operating swings. Persistent volatility complicates forecasting, capital allocation and investor confidence, and may hinder consistent longer-term strategic execution.

LINKBANCORP Business Overview & Revenue Model

Company Description

LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, a full-service state chartered commercial bank in Pennsylvania. The company's deposit products include checking accounts, saving accounts, money market accounts, and certificates of deposits. The company's loan portfolio comprises small business, real estate, agricultural, home equity, consumer lending, commercial, municipal, term, lines of credit, auto, and home mortgage and construction loans. It also provides debit cards, mobile banking, card valet app, e-statements, ATMs, online banking and bill pay, and other services. The company operates through a main office located in Gratz, Pennsylvania, as well as bank offices located in Camp Hill, Gratz, Valley View, Harrisburg, Herndon, Lancaster, Pottsville, Trevorton, West Chester, and Minersville. Pennsylvania. LINKBANCORP, Inc. was incorporated in 2018 and is based in Camp Hill, Pennsylvania.

How the Company Makes Money

LINKBANCORP primarily makes money through its banking subsidiary by generating net interest income and noninterest income. Net interest income is earned from the spread between (1) interest and fees collected on interest-earning assets—primarily loans (such as commercial real estate, commercial and industrial, construction, and consumer loans, depending on the bank’s mix) and investment securities—and (2) interest paid on funding sources, mainly customer deposits (checking, savings, money market, and certificates of deposit) and, when used, wholesale borrowings. Noninterest income typically comes from bank service charges and fees (such as deposit account service charges and transaction-related fees) and other fee-based services offered to customers; if specific fee categories are not publicly detailed, they are null. The company’s earnings are also influenced by credit performance (loan loss provisioning can reduce earnings), the level and mix of deposits versus higher-cost borrowings, the interest-rate environment (which affects asset yields and deposit costs), and operating efficiency.

LINKBANCORP Financial Statement Overview

Summary

Financials show a clear earnings rebound in 2024–2025 with improving margins and ROE, and leverage looks manageable. However, the 2023 loss and mixed cash-flow quality (including a sharp free-cash-flow decline in 2025) reduce confidence in consistency.

Income Statement

Profitability improved materially after a loss in 2023, with 2024 and 2025 returning to solid earnings (net margin ~15.6% in 2024 rising to ~19.1% in 2025) and stronger operating profitability (operating margin ~20.0% to ~24.3%). Revenue has grown rapidly in recent years (2024 and 2025 each showing strong year-over-year growth), but results have been somewhat volatile given the sharp downturn in 2023.

Balance Sheet

Leverage appears manageable with debt-to-equity improving to ~0.43 in 2025 from ~0.46 in 2024, while equity has expanded alongside a growing asset base. Returns on equity are positive and improving (about ~9.4% in 2024 to ~10.9% in 2025), but the historical swing to negative returns in 2023 highlights sensitivity to earnings pressure.

Cash Flow

Cash generation is positive in 2024–2025, with operating cash flow around $25M in both years and free cash flow positive; however, free cash flow declined sharply in 2025 (growth about -29.6%). Cash flow quality versus reported earnings is mixed, including weak/zero reported coverage and conversion metrics in 2025 and the negative cash flow period in 2023.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	175.41M	167.59M	66.28M	43.22M	20.64M
Gross Profit	106.94M	108.50M	30.50M	34.65M	17.60M
EBITDA	44.25M	40.27M	-13.54M	7.93M	580.00K
Net Income	33.51M	26.21M	-11.97M	5.60M	289.00K
Balance Sheet
Total Assets	3.07B	2.88B	2.67B	1.16B	932.76M
Cash, Cash Equivalents and Short-Term Investments	278.10M	166.75M	195.68M	114.45M	139.20M
Total Debt	130.56M	128.22M	88.39M	81.86M	25.38M
Total Liabilities	2.76B	2.60B	2.40B	1.03B	823.14M
Stockholders Equity	306.43M	280.22M	265.31M	138.55M	109.62M
Cash Flow
Free Cash Flow	23.80M	22.56M	-1.38M	-2.25M	4.51M
Operating Cash Flow	25.27M	25.44M	-10.00K	2.34M	4.77M
Investing Cash Flow	-380.10M	-122.02M	58.58M	-222.59M	-5.04M
Financing Cash Flow	241.03M	182.49M	-8.39M	227.67M	-10.30M

LINKBANCORP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNKB, the sentiment is Negative. The current price of 8.21 is below the 20-day moving average (MA) of 8.58, below the 50-day MA of 8.70, and above the 200-day MA of 7.58, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 38.02 is Neutral, neither overbought nor oversold. The STOCH value of 19.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LNKB.

LINKBANCORP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSBK	82 Outperform	$303.23M	8.59	11.73%	2.91%	8.17%	21.95%
COSO	72 Outperform	$314.21M	10.76	10.81%	―	―	―
PKBK	71 Outperform	$325.91M	6.62	12.02%	2.84%	12.91%	21.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FRST	62 Neutral	$314.17M	5.58	15.78%	3.06%	9.90%	―
LNKB	60 Neutral	$307.61M	9.19	11.13%	3.61%	15.66%	―
ISBA	57 Neutral	$333.52M	19.51	8.45%	2.13%	7.29%	33.75%

LINKBANCORP Corporate Events

LINKBANCORP Declares Dividend Amid Weaker Quarter Results

On January 22, 2026, LINKBANCORP’s board declared a quarterly cash dividend of $0.075 per share, payable on March 16, 2026 to shareholders of record on February 27, 2026, underscoring continued capital returns despite a weaker fourth quarter. The bank reported net income of $2.9 million, or $0.08 per diluted share, for the fourth quarter of 2025, down sharply from $7.8 million in the prior quarter due to a full $5 million impairment on a single commercial lending relationship tied to purported fraudulent activity identified in January 2026, but delivered record full-year 2025 earnings of $33.5 million, or $0.90 per diluted share, up 26.8% from 2024. Adjusted pre-tax, pre-provision net income rose to $11.7 million in the quarter and $41.8 million for the year, tangible book value per share climbed 15.7% year over year, and the bank logged robust commercial loan growth and 10.9% adjusted deposit growth, even as year-end deposits dipped sequentially on seasonal outflows. These results, alongside a stable net interest margin and expanding balance sheet, come as LINKBANCORP advances a strategic all-stock merger with Burke & Herbert Financial Services Corp. announced on December 18, 2025, which is expected to create a roughly $11 billion-asset Mid-Atlantic community banking franchise, potentially strengthening the company’s competitive position and scale for stakeholders once customary approvals and closing conditions are met.

The most recent analyst rating on (LNKB) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on LINKBANCORP stock, see the LNKB Stock Forecast page.

LINKBANCORP to Merge with Burke & Herbert

On December 18, 2025, LINKBANCORP, Inc. and Burke & Herbert Financial Services Corp. announced they had executed an Agreement and Plan of Merger under which LINKBANCORP will merge with and into Burke & Herbert as part of a strategic business combination. As a condition to this merger, certain LINKBANCORP shareholders entered into support agreements committing to vote their shares in favor of the merger, against competing acquisition proposals, and to restrict transfers of their stock until shareholder approval or termination of the agreement, steps that solidify shareholder backing and help ensure the completion of the transaction, with implications for the companies’ future scale and positioning in the regional banking market.

The most recent analyst rating on (LNKB) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on LINKBANCORP stock, see the LNKB Stock Forecast page.