LINKBANCORP to divest New Jersey operations to enhance focus on core markets
LINKBANCORP, Inc. (NASDAQ: LNKB), a notable name in community banking, has announced a pivotal transaction involving its wholly owned subsidiary, LINKBANK. Under a definitive purchase and assumption agreement, American Heritage Federal Credit Union, based in Philadelphia, Pennsylvania, will acquire LINKBANK’s operations in New Jersey, including three branches that house approximately $105 million in deposits and $123 million in loans. This move is part of a strategic refocus following LINKBANCORP’s recent merger with Partners Bancorp.
The branches involved in this transaction were previously part of the Liberty Bell Bank division of The Bank of Delmarva, which merged with LINKBANK as part of the company’s expansive strategy. The divestiture is seen as a step towards optimizing operational efficiencies and fostering growth in the company’s core markets of Pennsylvania, Northern Virginia, and Maryland.
Andrew Samuel, CEO of LINKBANCORP, emphasized the strategic nature of this divestiture: “As we continue to execute on initiatives to achieve the operational efficiencies and revenue growth of the Partners combination, we believe this divestiture will enable us to re-allocate capital toward our core Pennsylvania markets and accelerate growth in the robust Northern Virginia and Maryland markets.”
The transaction, which is subject to customary closing conditions including regulatory approvals, is expected to close in the second half of 2024. Stephens Inc. served as the financial adviser, while Luse Gorman, PC provided legal counsel to LINKBANCORP during this deal. For American Heritage Federal Credit Union, financial advisory services were provided by Olden Lane Securities, LLC, with legal guidance from Honigman LLP and The Weber Firm, LLC.
Formed in 2018, LINKBANCORP, Inc. has committed to positively impacting lives through its community banking services. Its subsidiary, LINKBANK, operates as a Pennsylvania state-chartered bank, serving a diverse clientele that includes individuals, families, nonprofits, and business clients across Pennsylvania, Maryland, Delaware, Virginia, and New Jersey. The bank operates through 29 client solutions centers.