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Stock impact report

Deteriorating Loan Quality And Recent Merger Create Uncertainty For Burke & Herbert Financial Services [Seeking Alpha]

Burke & Herbert Financial Services Corp. (BHRB) 
NASDAQ:AMEX Investor Relations: skiburke.com
Company Research Source: Seeking Alpha
BHRB's recent revenue growth is driven by a merger from 2024, but asset quality has deteriorated, with non-performing loans rising to 1.6% and reserve coverage falling to 75.9%. The LKNB deal will expand BHRB's footprint to six states and give access to markets in Pennsylvania, but it is also expected to dilute loan yields and raise deposit costs. BHRB trades at an attractive 9.22x P/E, but near-term earnings growth is projected below 1%, and integration risks remain elevated post-merger. Ceri Breeze/iStock Editorial via Getty Images On December 18, Burke & Herbert Financial Services ( BHRB ) announced a deal to acquire LINKBANCORP (LKNB) in an all-stock transaction worth about $354 million. LKNB shareholders will receive 0.135 shares of BHRB at This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this arti Show less Read more
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