LINKBANCORP (LNKB) AI Stock Analysis

• Market Cap: $344.99M
• Dividend Yield: 3.61%
• Average Volume (3M): 136.35K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.56
• 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: 37,457,912
• 10 Day Avg. Volume: 161,318
• 30 Day Avg. Volume: 136,351
• PEG Ratio: -0.05
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 12.27
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 8.45
• 1Y Price Target: $9.42
• Price Target Upside: 2.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $10.00 ▲(8.58% Upside)

The score is driven primarily by solid financial performance (growth, improving profitability, and strong cash generation) and favorable valuation (low P/E plus a meaningful dividend). Technicals are supportive with the stock trading above key moving averages and neutral momentum, while corporate events add both upside (planned merger, dividend continuity) and a risk flag from the quarter’s impairment-related earnings hit.

Positive Factors

Revenue and Profitability Growth

Sustained TTM revenue growth (14.8%) and an improved net margin (22.5%) indicate durable core earnings expansion from lending and fee businesses. Over the next 2–6 months this supports recurring profitability, reinvestment capacity, and resilience versus peers reliant on transient trading or fee spikes.

Strong Cash Generation

High FCF growth and an operating cash flow to net income ratio of 2.40 demonstrate persistent cash conversion from banking operations. That cash strength underpins dividend continuity, merger integration funding and buffers against credit volatility, improving medium-term strategic flexibility.

Merger to Materially Increase Scale

The planned Burke & Herbert combination creates meaningful regional scale (~$11B assets), which should strengthen funding diversity, commercial lending capabilities, and product distribution. Increased scale can sustainably lower per-unit costs and improve competitive positioning over months following closing.

Negative Factors

Single-Loan Credit Loss / Fraud Exposure

A full $5M impairment from one commercial relationship, tied to alleged fraud, highlights borrower concentration and underwriting gaps. Such isolated losses show structural credit-risk sensitivity that can recur without stronger controls or diversified lending mix, pressuring long-term loss provisions.

Rising Total Debt Over Time

An increasing absolute debt load raises interest and refinancing exposure even if D/E remains stable. Over 2–6 months higher leverage can constrain capital actions, raise funding costs in stress periods, and reduce strategic flexibility for acquisitions or loan-loss absorption.

Declining Gross Profit Margin Trend

A declining gross margin signals potential yield compression or rising funding costs that can erode the bank's core spread. If the trend persists, sustaining net margin and ROE will require either cost cuts or higher-risk asset growth, both of which carry structural downside risk over the medium term.

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 generates revenue through multiple streams typical of commercial banking operations. The primary source of income is net interest income, which is derived from the difference between the interest earned on loans and the interest paid on deposits. This is complemented by non-interest income from fees associated with banking services, such as transaction fees, account maintenance fees, and service charges. Additionally, LINKBANCORP earns revenue from mortgage origination and loan servicing. Key partnerships with local businesses and organizations enhance their service offerings and customer base, while strategic investments in technology and digital banking solutions help reduce costs and improve customer experience, contributing to overall profitability.

LINKBANCORP Financial Statement Overview

Summary

Strong fundamentals overall: TTM revenue growth of 14.8%, improved net margin to 22.5%, and robust free cash flow growth of 39.3% with strong cash conversion (operating cash flow to net income of 2.40). Offsets include a declining gross margin trend and rising total debt over time (despite a stable debt-to-equity of 0.39).

Income Statement

LINKBANCORP shows strong revenue growth with a TTM growth rate of 14.8%. The gross profit margin is healthy at 49.2%, and the net profit margin has improved to 22.5% in the TTM. EBIT and EBITDA margins also show positive trends, indicating operational efficiency. However, the gross profit margin has decreased from previous years, which could be a concern if the trend continues.

Balance Sheet

The debt-to-equity ratio is stable at 0.39, indicating a balanced leverage position. Return on equity has improved to 12.96% in the TTM, reflecting better profitability. The equity ratio is strong, showing a solid capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Free cash flow growth is robust at 39.3% in the TTM, and the operating cash flow to net income ratio is strong at 2.40, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also healthy at 0.96. However, past fluctuations in free cash flow highlight potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	172.29M	167.59M	66.28M	43.22M	20.64M	16.05M
Gross Profit	111.50M	108.50M	30.50M	34.65M	17.60M	13.14M
EBITDA	54.52M	40.27M	-13.54M	7.93M	580.00K	5.15M
Net Income	38.15M	26.21M	-11.97M	5.60M	289.00K	4.19M
Balance Sheet
Total Assets	3.12B	2.88B	2.67B	1.16B	932.76M	429.54M
Cash, Cash Equivalents and Short-Term Investments	403.73M	166.75M	195.68M	114.45M	139.20M	175.66M
Total Debt	118.22M	128.22M	88.39M	81.86M	25.38M	1.49M
Total Liabilities	2.82B	2.60B	2.40B	1.03B	823.14M	378.87M
Stockholders Equity	305.46M	280.22M	265.31M	138.55M	109.62M	50.67M
Cash Flow
Free Cash Flow	35.90M	22.56M	-1.38M	-2.25M	4.51M	3.02M
Operating Cash Flow	38.27M	25.44M	-10.00K	2.34M	4.77M	3.13M
Investing Cash Flow	-312.10M	-122.02M	58.58M	-222.59M	-5.04M	-38.82M
Financing Cash Flow	276.75M	182.49M	-8.39M	227.67M	-10.30M	41.15M

LINKBANCORP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNKB, the sentiment is Positive. The current price of 9.21 is above the 20-day moving average (MA) of 8.66, above the 50-day MA of 8.29, and above the 200-day MA of 7.31, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 68.50 is Neutral, neither overbought nor oversold. The STOCH value of 89.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNKB.

LINKBANCORP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSBK	79 Outperform	$308.30M	10.15	11.48%	2.91%	8.17%	21.95%
LNKB	77 Outperform	$344.99M	10.07	13.09%	3.61%	15.66%	―
PKBK	76 Outperform	$331.86M	9.03	11.15%	2.84%	12.91%	21.72%
ISBA	68 Neutral	$367.12M	20.45	8.27%	2.13%	7.29%	33.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COSO	63 Neutral	$341.64M	11.69	12.63%	―	―	―
FRST	58 Neutral	$352.66M	5.68	2.25%	3.06%	9.90%	―

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.

LINKBANCORP Reports Strong Q3 2025 Financial Results

LINKBANCORP, Inc. reported strong financial results for the third quarter of 2025, with net income rising to $7.8 million, up from $7.4 million in the previous quarter. The company declared a quarterly cash dividend of $0.075 per share, payable on December 15, 2025. The quarter saw significant growth in deposits and loans, with total deposits increasing by 8.62% from the prior quarter and total loans growing by 16.90% annualized. The company’s disciplined expense management and robust growth in core deposits and quality loans position it well for future performance.

The most recent analyst rating on (LNKB) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on LINKBANCORP stock, see the LNKB Stock Forecast page.