Burke & Hebert Challenged on Bid for LINKBANK FRB 3 AI Letters Rubberstamp

Burke & Hebert Challenged on Bid for LINKBANK FRB 3 AI Letters Rubberstamp by Matthew Russell Lee, Patreon Book Substack Federal Court, April 10 – As banks rush to merge given rubberstamping signals from US regulators, LinkBank has done too far with Burke & Herbert.   Back in 2023 Fair Finance Watch got the FDIC to impose a Community Reinvestment Act condition on LINKBANK, here.  Now with no indication of compliance, LINKBANK proposes to sell itself to also-disparate Burke & Hubert.   FFW on December 22 filed challenges with the Federal Reserve Board and FDIC. FRB version:  Dear Chairman Powell, Secretary Misback:   This concerns the proposal by Burke & Herbert to acquire LINKBANCORP and LINKBANK.    This is opposition at the earliest possible time. In light of a recent proposal in which only the OCC is considering a multi-billion merger, we are submitting this to the FRB as soon as possible. Please immediate inform FFW if Burke & Herbert is applying to the FRS, and consider this comment on any and all Burke & Herbert applications.    FFW previously raised disparities of LINKBANK to the FDIC - resulting on a CRA condition being opposed on October 3, 2023.  It is imperative that compliance be reviewed, including at the requested public evidentiary hearing. Given recent developments, there is no reason to believe that the FDIC would or will enforce even its own conditions.      Burke & Herbert in Virginia in 2024 made 83 mortgage loans to whites, and only SEVEN to African Americans. Meanwhile it denied two applications from African Americans, and only four from whites.   This is disparate.        Burke & Herbert in West Virginia in 2024 made 165 mortgage loans to whites, and only TWO to African Americans. Meanwhile it denied one application from an African Americans, and only 29 from whites.     Burke & Herbert in Maryland in 2024 made 18 mortgage loans to whites, and only TWO to African Americans.     Now Burke & Herbert wants to buy LINKBANK, on which FFW had a CRA condition imposed. The FDIC wrote:  CRA Protest In the course of reviewing public input on the application, the FDIC received an adverse comment from a protester that was considered a CRA protest... the FDIC decided to approve the application with the following condition. On January 7, the FRS wrote back: "The Federal Reserve Bank of Richmond received your correspondence on  December 23, 2025, regarding a future application by Burke & Herbert Financial Services Corporation (“B&H”) to acquire LINKBANCORP (“LINK”). The Federal Reserve has not yet received an application by B&H to acquire LINK. Accordingly, no immediate action will be taken on the correspondence dated December 23, 2025. If a filing is received in the next three months, your comment may be considered as part of the application record for the filing." MAY be considered? On February 25 the Fed asked 10 more questions, including on fair lending, letter on Patreon here On March 3, the Fed asked 7 multi-part questions, including "Following the proposed transaction, CRE levels would continue to exceed the threshold for enhanced monitoring noted in SR 07-1. Accordingly, discuss whether and, if so, how the oversight of the loan portfolio, including concentration risk management practices and management's responsiveness to changing market conditions, would be enhanced. 5. Discuss the number of LINKBANK employees that B&H Bank would retain following the proposed transaction (aside from Messrs. Andrew Samual, Carl Lundblad, and Brent Smith)" - full letter on Patreon here On April 10 the Fed rubberstamped the application: "The commenter also noted that, in connection with its approval of an acquisition by LINKBANK in 2023, the FDIC placed a condition on the bank requiring the bank to take certain specific actions related to mortgage lending and related activities in certain areas, particularly with respect to African American consumers and LMI communities." No follow up. Even when banks are bad enough to have conditions imposed, there is no follow up. But we will follow up. Watch this site.   Watch this site. *** Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron. Feedback: Editorial [at] innercitypress.com SDNY Press Room 500 Pearl Street, NY NY 10007 USA Mail: Box 130222, Chinatown Station, NY NY 10013 Reporter's mobile (and weekends): 718-716-3540 Other, earlier Inner City Press are listed here, and some are available in the ProQuest service, and now on Lexis-Nexis.  Copyright 2006-2026 Inner City Press, Inc. To request reprint or other permission, e-contact Editorial [at] innercitypress.com