Burke & Herbert Financial Services Corp. Announces Second Quarter 2025 Results and Declares Common Stock Dividend
Burke & Herbert Financial Services Corp. (NASDAQ: BHRB) reported strong Q2 2025 financial results with net income of $29.7 million and diluted EPS of $1.97, up from $27.0 million and $1.80 EPS in Q1 2025. The company declared a $0.55 per share dividend payable on September 2, 2025.
Key metrics include a 4.17% net interest margin, total gross loans of $5.6 billion, and deposits of $6.4 billion. The company maintains strong capital ratios with 12.2% Common Equity Tier 1 and 15.3% Total risk-based capital. Asset quality remains solid with adequate reserves, and total liquidity stands at $4.4 billion.
The company is executing its strategic plan, replacing non-strategic loans with relationship-based assets while expanding into new markets including Bethesda, Maryland, and Fredericksburg and Richmond, Virginia.
Burke & Herbert Financial Services Corp. (NASDAQ: BHRB) ha riportato risultati finanziari solidi per il secondo trimestre del 2025, con un utile netto di 29,7 milioni di dollari e un utile diluito per azione di 1,97 dollari, in aumento rispetto ai 27,0 milioni di dollari e 1,80 dollari per azione nel primo trimestre del 2025. La societ脿 ha dichiarato un dividendo di 0,55 dollari per azione pagabile il 2 settembre 2025.
I principali indicatori includono un margine di interesse netto del 4,17%, prestiti lordi totali per 5,6 miliardi di dollari e depositi per 6,4 miliardi di dollari. L'azienda mantiene solidi rapporti patrimoniali con un Common Equity Tier 1 al 12,2% e un capitale totale basato sul rischio al 15,3%. La qualit脿 degli attivi resta solida con riserve adeguate e la liquidit脿 totale ammonta a 4,4 miliardi di dollari.
La societ脿 sta attuando il suo piano strategico, sostituendo prestiti non strategici con asset basati sulle relazioni, espandendosi in nuovi mercati tra cui Bethesda, Maryland, e Fredericksburg e Richmond, Virginia.
Burke & Herbert Financial Services Corp. (NASDAQ: BHRB) report贸 s贸lidos resultados financieros para el segundo trimestre de 2025, con un ingreso neto de 29,7 millones de d贸lares y un beneficio diluido por acci贸n de 1,97 d贸lares, superior a los 27,0 millones y 1,80 d贸lares por acci贸n del primer trimestre de 2025. La compa帽铆a declar贸 un dividendo de 0,55 d贸lares por acci贸n pagadero el 2 de septiembre de 2025.
Las m茅tricas clave incluyen un margen neto de inter茅s del 4,17%, pr茅stamos brutos totales de 5,6 mil millones de d贸lares y dep贸sitos de 6,4 mil millones de d贸lares. La empresa mantiene s贸lidos 铆ndices de capital con un Common Equity Tier 1 del 12,2% y un capital total basado en riesgo del 15,3%. La calidad de los activos se mantiene s贸lida con reservas adecuadas, y la liquidez total es de 4,4 mil millones de d贸lares.
La compa帽铆a est谩 ejecutando su plan estrat茅gico, reemplazando pr茅stamos no estrat茅gicos con activos basados en relaciones mientras se expande a nuevos mercados, incluyendo Bethesda, Maryland, y Fredericksburg y Richmond, Virginia.
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Burke & Herbert Financial Services Corp. (NASDAQ : BHRB) a annonc茅 de solides r茅sultats financiers pour le deuxi猫me trimestre 2025 avec un revenu net de 29,7 millions de dollars et un BPA dilu茅 de 1,97 $, en hausse par rapport 脿 27,0 millions de dollars et 1,80 $ au T1 2025. La soci茅t茅 a d茅clar茅 un dividende de 0,55 $ par action payable le 2 septembre 2025.
Les indicateurs cl茅s comprennent une marge nette d鈥檌nt茅r锚t de 4,17%, des pr锚ts bruts totaux de 5,6 milliards de dollars et des d茅p么ts de 6,4 milliards de dollars. La soci茅t茅 maintient des ratios de capital solides avec un Common Equity Tier 1 de 12,2% et un capital total pond茅r茅 en fonction des risques de 15,3%. La qualit茅 des actifs reste solide avec des r茅serves ad茅quates, et la liquidit茅 totale s鈥櫭﹍猫ve 脿 4,4 milliards de dollars.
La soci茅t茅 ex茅cute son plan strat茅gique en rempla莽ant les pr锚ts non strat茅giques par des actifs bas茅s sur les relations tout en s鈥櫭﹖endant 脿 de nouveaux march茅s, notamment Bethesda, Maryland, ainsi que Fredericksburg et Richmond, Virginie.
Burke & Herbert Financial Services Corp. (NASDAQ: BHRB) meldete starke Finanzergebnisse f眉r das zweite Quartal 2025 mit einem Nettoeinkommen von 29,7 Millionen US-Dollar und einem verw盲sserten Ergebnis je Aktie von 1,97 US-Dollar, was eine Steigerung gegen眉ber 27,0 Millionen US-Dollar und 1,80 US-Dollar je Aktie im ersten Quartal 2025 darstellt. Das Unternehmen erkl盲rte eine Dividende von 0,55 US-Dollar je Aktie, zahlbar am 2. September 2025.
Wichtige Kennzahlen umfassen eine Nettozinsmarge von 4,17%, Gesamtbruttokredite von 5,6 Milliarden US-Dollar und Einlagen von 6,4 Milliarden US-Dollar. Das Unternehmen h盲lt starke Kapitalquoten mit 12,2% Common Equity Tier 1 und 15,3% Gesamtrisikobasiertem Kapital. Die Verm枚gensqualit盲t bleibt solide mit angemessenen R眉ckstellungen, und die gesamte Liquidit盲t betr盲gt 4,4 Milliarden US-Dollar.
Das Unternehmen setzt seinen strategischen Plan um, indem es nicht-strategische Kredite durch beziehungsbasierte Verm枚genswerte ersetzt und in neue M盲rkte expandiert, darunter Bethesda, Maryland, sowie Fredericksburg und Richmond, Virginia.
- Net income increased to $29.7 million from $27.0 million quarter-over-quarter
- Strong capital position with 12.2% Common Equity Tier 1 ratio, well above 6.5% requirement
- Robust liquidity position of $4.4 billion
- Non-interest income increased to $12.9 million from $10.0 million in previous quarter
- Cost of total deposits decreased to 1.90% from 1.99% quarter-over-quarter
- Strategic expansion into new markets in Maryland and Virginia
- Total gross loans decreased by $57.1 million from previous quarter
- Total deposits declined by $150.9 million quarter-over-quarter
- Net interest margin slightly decreased to 4.17% from 4.18% in Q1 2025
Insights
Burke & Herbert reports strong Q2 with rising profits, healthy margins, and solid capital position despite strategic loan reduction.
Burke & Herbert delivered robust quarterly results with
The bank's profitability metrics are particularly strong, with
Management's strategic decision to exit
The
The declared quarterly dividend of
Q2 2025 Highlights
- For the quarter, net income applicable to common shares totaled
$29.7 million $1.97 $27.0 million $1.80 - For the quarter, the annualized return on average assets was
1.51% and the annualized return on average equity was15.50% . - Ending total gross loans were
$5.6 billion $6.4 billion 87.5% . The net interest margin (non-GAAP1) was4.17% for the three months ended June听30, 2025. - The balance sheet remains strong with ample liquidity. Total liquidity, including all available borrowing capacity with cash and cash equivalents, totaled
$4.4 billion - Asset quality metrics remain within the Company's moderate risk profile with adequate reserve coverage.
- The Company continues to be well-capitalized, ending the quarter with
12.2% 2 Common Equity Tier 1 capital to risk-weighted assets,15.3% 2 Total risk-based capital to risk-weighted assets, and a leverage ratio of10.4% .2
From David P. Boyle, Company Chair and Chief Executive Officer
"I'm pleased with our first half 2025 results and how our balance sheet is positioned. We're successfully replacing non-strategic loans with assets that meet our relationship-based approach and maintaining ample liquidity, solid capital ratios, and adequate loss reserves. Our provision for credit losses reflects the confidence we have in our ability to manage and maintain asset quality metrics within our moderate risk appetite. We're keeping our focus on expense management while we continue to invest for the future, including our planned expansion in
Results of Operations
Second Quarter听2025 compared to First Quarter 2025
The Company reported second quarter 2025 net income applicable to common shares of
- Period-end total gross loans were
$5.6 billion $57.1 million $90.8 million $200.0 million - Period-end total deposits were
$6.4 billion $150.9 million $114.8 million - Net interest income for the quarter was
$74.2 million $73.0 million $0.2 million $1.1 million - Net interest margin on a fully taxable equivalent basis (non-GAAP1) decreased to
4.17% versus4.18% in the first quarter of 2025, mainly attributable to a lower yield on the loan portfolio offset by an increase in yield on the securities portfolio and a decrease in yield on interest-bearing liabilities compared to the听 first quarter of 2025. - Accretion income on loans during the quarter was
$11.5 million $1.4 million $11.4 million $2.2 million - The cost of total deposits, including non-interest bearing deposits, was
1.90% in the second quarter of 2025, compared to1.99% in the first quarter of 2025. The decrease in the cost of deposits was mostly due to a decrease in amortization of acquired time deposits of$0.8 million - The Company recorded credit provision expense in the second quarter of 2025 of
$624 thousand $67.3 million 1.2% of total loans. - Total non-interest income for the second quarter of 2025 was
$12.9 million $10.0 million $1.8 million $1.3 million - Non-interest expense for the second quarter of 2025 was
$49.3 million $49.7 million
Regulatory capital ratios2
The Company continues to be well-capitalized with capital ratios that are above regulatory requirements. As of June听30, 2025, our Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were
Burke & Herbert Bank & Trust Company ("the Bank"), the Company's wholly-owned bank subsidiary, also continues to be well-capitalized with capital ratios that are above regulatory requirements. As of June 30, 2025, the Bank's Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were
For more information about the Company's financial condition, including additional disclosures pertinent to recent events in the banking industry, please see our financial statements and supplemental information attached to this release.
About Burke & Herbert
Burke & Herbert Financial Services Corp. is the financial holding company for Burke & Herbert Bank & Trust Company. Burke & Herbert Bank & Trust Company is the oldest continuously operating bank under its original name headquartered in the greater
Cautionary Note Regarding Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the beliefs, goals, intentions, and expectations of the Company regarding revenues, earnings, earnings per share, loan production, asset quality, and capital levels, among other matters; our estimates of future costs and benefits of the actions we may take; our assessments of expected losses on loans; our assessments of interest rate and other market risks; our ability to achieve our financial and other strategic goals; and other statements that are not historical facts.
Forward鈥搇ooking statements are typically identified by such words as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "will," "should," and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which change over time. Additionally, forward鈥搇ooking statements speak only as of the date they are made; the Company does not assume any duty, does not undertake, and specifically disclaims any obligation to update such forward鈥搇ooking statements, whether written or oral, that may be made from time to time, whether because of new information, future events, or otherwise, except as required by law. Furthermore, because forward鈥搇ooking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those indicated in or implied by such forward-looking statements because of a variety of factors, many of which are beyond the control of the Company. Further, factors identified herein are not necessarily all of the factors that could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm the Company. Accordingly, you should consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by the Company and not place undue reliance on forward-looking statements.听
The risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to, the following: costs or difficulties associated with newly developed or acquired operations; changes in general economic, political, or market trends (either nationally or locally in the areas in which we conduct, or will conduct, business), including inflation, changes in interest rates, market volatility and monetary fluctuations, and changes in federal government policies and practices, as well as the impact from recently announced and future tariffs on the markets we serve; increased competition; changes in consumer confidence and demand for financial services, including changes in consumer borrowing, repayment, investment, and deposit practices; changes in asset quality and credit risk; our ability to control costs and expenses; adverse developments in borrower industries or declines in real estate values; changes in and compliance with federal and state laws and regulations that pertain to our business and capital levels; our ability to raise capital as needed; the impact, extent and timing of technological changes; the effects of any cybersecurity breaches; and the other factors discussed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of the Company's Annual Report on Form 10鈥揔 for the year ended December 31, 2024, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and other reports the Company files with the SEC.
听
Burke & Herbert Financial Services Corp. Consolidated Statements of Income (unaudited) (In thousands) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | March 31 | June 30, | ||||||||
2025 | 2024 | 2025 | 2025 | 2024 | ||||||
Interest income | ||||||||||
Taxable loans, including fees | $听听听听听听 96,803 | $听听听听听听 81,673 | $听听听听听听 97,031 | $听听听听 193,834 | $听听听听 109,718 | |||||
Tax-exempt loans, including fees | 43 | 33 | 46 | 89 | 33 | |||||
Taxable securities | 9,303 | 10,930 | 9,487 | 18,790 | 19,873 | |||||
Tax-exempt securities | 3,939 | 2,556 | 3,267 | 7,206 | 3,917 | |||||
Other interest income | 1,770 | 905 | 955 | 2,725 | 1,301 | |||||
Total interest income | 111,858 | 96,097 | 110,786 | 222,644 | 134,842 | |||||
Interest expense | ||||||||||
Deposits | 30,431 | 30,373 | 31,851 | 62,282 | 43,304 | |||||
Short-term borrowings | 4,438 | 4,071 | 3,192 | 7,630 | 7,726 | |||||
Subordinated debt | 2,730 | 1,860 | 2,729 | 5,459 | 1,860 | |||||
Other interest expense | 26 | 28 | 27 | 53 | 56 | |||||
Total interest expense | 37,625 | 36,332 | 37,799 | 75,424 | 52,946 | |||||
Net interest income | 74,233 | 59,765 | 72,987 | 147,220 | 81,896 | |||||
Credit loss expense - loans and available-for- | 717 | 20,100 | 900 | 1,617 | 19,430 | |||||
Credit loss (recapture) - off-balance sheet credit | (93) | 3,810 | (399) | (492) | 3,810 | |||||
Total provision for credit losses | 624 | 23,910 | 501 | 1,125 | 23,240 | |||||
Net interest income after credit loss expense | 73,609 | 35,855 | 72,486 | 146,095 | 58,656 | |||||
Non-interest income | ||||||||||
Fiduciary and wealth management | 2,425 | 2,211 | 2,443 | 4,868 | 3,630 | |||||
Service charges and fees | 2,036 | 1,813 | 2,089 | 4,125 | 2,470 | |||||
Net gains on securities | 38 | 613 | 1 | 39 | 613 | |||||
Income from company-owned life insurance | 2,982 | 922 | 1,193 | 4,175 | 1,469 | |||||
Bank debit and other card revenue | 3,024 | 2,457 | 2,884 | 5,908 | 3,588 | |||||
Other non-interest income | 2,372 | 1,489 | 1,413 | 3,785 | 1,989 | |||||
Total non-interest income | 12,877 | 9,505 | 10,023 | 22,900 | 13,759 | |||||
Non-interest expense | ||||||||||
Salaries and wages | 21,320 | 20,895 | 20,941 | 42,261 | 30,413 | |||||
Pensions and other employee benefits | 4,067 | 5,303 | 5,136 | 9,203 | 7,668 | |||||
Occupancy | 3,521 | 2,997 | 4,045 | 7,566 | 4,535 | |||||
Equipment rentals, depreciation and | 4,100 | 12,663 | 4,084 | 8,184 | 13,944 | |||||
Other operating | 16,297 | 22,574 | 15,458 | 31,755 | 29,037 | |||||
Total non-interest expense | 49,305 | 64,432 | 49,664 | 98,969 | 85,597 | |||||
Income (loss) before income taxes | 37,181 | (19,072) | 32,845 | 70,026 | (13,182) | |||||
Income tax expense (benefit) | 7,284 | (2,153) | 5,644 | 12,928 | (1,475) | |||||
Net income (loss) | 29,897 | (16,919) | 27,201 | 57,098 | (11,707) | |||||
Preferred stock dividends | 225 | 225 | 225 | 450 | 225 | |||||
Net income (loss) applicable to | $听听听听听听 29,672 | $听听听听 (17,144) | $听听听听听听 26,976 | $听听听听听听 56,648 | $听听听听 (11,932) | |||||
听
Burke & Herbert Financial Services Corp. Consolidated Balance Sheets (In thousands) | ||||
June 30, 2025 | December 31, 2024 | |||
(Unaudited) | (Audited) | |||
Assets | ||||
Cash and due from banks | $听听听听听听听听听听听听听听 65,173 | $听听听听听听听听听听听听听听听 35,554 | ||
Interest-earning deposits with banks | 259,973 | 99,760 | ||
Cash and cash equivalents | 325,146 | 135,314 | ||
Securities available-for-sale, at fair value | 1,522,611 | 1,432,371 | ||
Restricted stock, at cost | 42,189 | 33,559 | ||
Loans held-for-sale, at fair value | 1,511 | 2,331 | ||
Loans | 5,590,457 | 5,672,236 | ||
Allowance for credit losses | (67,256) | (68,040) | ||
Net loans | 5,523,201 | 5,604,196 | ||
Premises and equipment, net | 133,997 | 132,270 | ||
Other real estate owned | 2,742 | 2,783 | ||
Accrued interest receivable | 35,453 | 34,454 | ||
Intangible assets | 49,114 | 57,300 | ||
Goodwill | 34,149 | 32,783 | ||
Company-owned life insurance | 182,181 | 182,834 | ||
Other assets | 205,687 | 161,990 | ||
Total Assets | $听听听听听听听听听 8,057,981 | $听听听听听听听听听听 7,812,185 | ||
Liabilities and Shareholders' Equity | ||||
Liabilities | ||||
Non-interest-bearing deposits | $听听听听听听听听听 1,363,617 | $听听听听听听听听听听 1,379,940 | ||
Interest-bearing deposits | 5,027,357 | 5,135,299 | ||
Total deposits | 6,390,974 | 6,515,239 | ||
Short-term borrowings | 650,000 | 365,000 | ||
Subordinated debentures, net | 97,552 | 94,872 | ||
Subordinated debentures owed to unconsolidated subsidiary trusts | 17,140 | 17,013 | ||
Accrued interest and other liabilities | 122,297 | 89,904 | ||
Total Liabilities | 7,277,963 | 7,082,028 | ||
Shareholders' Equity | ||||
Preferred stock and surplus | 10,413 | 10,413 | ||
Common stock | 7,790 | 7,770 | ||
Common stock, additional paid-in capital | 403,234 | 401,172 | ||
Retained earnings | 474,019 | 434,106 | ||
Accumulated other comprehensive income (loss) | (87,854) | (95,720) | ||
Treasury stock | (27,584) | (27,584) | ||
Total Shareholders' Equity | 780,018 | 730,157 | ||
Total Liabilities and Shareholders' Equity | $听听听听听听听听听 8,057,981 | $听听听听听听听听听听 7,812,185 | ||
听
Burke & Herbert Financial Services Corp. Details of Net Interest Margin (unaudited) For the three months ended | |||||||||
Details of Net Interest Margin - Yield Percentages | |||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||
2025 | 2025 | 2024 | 2024 | 2024 | |||||
Interest-earning assets: | |||||||||
Loans: | |||||||||
Taxable loans | 6.90听% | 6.96听% | 6.91听% | 7.34听% | 7.33听% | ||||
Tax-exempt loans | 5.90 | 5.80 | 5.87 | 5.63 | 5.55 | ||||
Total loans | 6.90 | 6.96 | 6.91 | 7.34 | 7.33 | ||||
Interest-earning deposits and | 4.68 | 5.76 | 4.48 | 3.43 | 3.54 | ||||
Securities: | |||||||||
Taxable securities | 3.83 | 3.85 | 3.82 | 4.05 | 4.48 | ||||
Tax-exempt securities | 4.20 | 3.85 | 3.55 | 3.58 | 3.05 | ||||
Total securities | 3.95 | 3.85 | 3.75 | 3.91 | 4.05 | ||||
Total interest-earning assets | 6.25听% | 6.31听% | 6.22听% | 6.56听% | 6.49听% | ||||
Interest-bearing liabilities: | |||||||||
Deposits: | |||||||||
Interest-bearing demand | 2.21听% | 2.16听% | 2.51听% | 3.19听% | 3.00听% | ||||
Money market & savings | 2.01 | 2.02 | 1.60 | 1.43 | 1.53 | ||||
Brokered CDs & time | 3.37 | 3.85 | 4.55 | 4.82 | 4.55 | ||||
Total interest-bearing | 2.41 | 2.53 | 2.76 | 3.02 | 2.90 | ||||
Borrowings: | |||||||||
Short-term borrowings | 3.91 | 3.88 | 4.17 | 4.06 | 4.38 | ||||
Subordinated debt | 9.62 | 9.85 | 9.87 | 10.16 | 10.30 | ||||
Total interest-bearing | 2.68听% | 2.76听% | 2.98听% | 3.21听% | 3.14听% | ||||
Taxable-equivalent net | 3.57 | 3.55 | 3.24 | 3.35 | 3.35 | ||||
Benefit from use of non- | 0.60 | 0.63 | 0.67 | 0.72 | 0.71 | ||||
Taxable-equivalent net | 4.17听% | 4.18听% | 3.91听% | 4.07听% | 4.06听% | ||||
听
Burke & Herbert Financial Services Corp. Details of Net Interest Margin (unaudited) For the three months ended (In thousands) | |||||||||
Details of Net Interest Margin - Average Balances | |||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||
2025 | 2025 | 2024 | 2024 | 2024 | |||||
Interest-earning assets: | |||||||||
Loans: | |||||||||
Taxable loans | $听听听听听听 5,627,236 | $听听听听听听 5,651,937 | $听听听听听听 5,634,157 | $听听听听听听 5,621,531 | $听听听听听听 4,481,993 | ||||
Tax-exempt loans | 3,737 | 4,057 | 3,115 | 4,310 | 3,041 | ||||
Total loans | 5,630,973 | 5,655,994 | 5,637,272 | 5,625,841 | 4,485,034 | ||||
Interest-earning deposits and | 81,369 | 40,757 | 152,537 | 175,265 | 94,765 | ||||
Securities: | |||||||||
Taxable securities | 1,059,310 | 1,039,391 | 1,031,024 | 996,749 | 988,492 | ||||
Tax-exempt securities | 476,586 | 435,789 | 452,937 | 440,781 | 426,092 | ||||
Total securities | 1,535,896 | 1,475,180 | 1,483,961 | 1,437,530 | 1,414,584 | ||||
Total interest-earning assets | $听听听听听听 7,248,238 | $听听听听听听 7,171,931 | $听听听听听听 7,273,770 | $听听听听听听 7,238,636 | $听听听听听听 5,994,383 | ||||
Interest-bearing liabilities: | |||||||||
Deposits: | |||||||||
Interest-bearing demand | $听听听听听听 2,239,100 | $听听听听听听 2,216,243 | $听听听听听听 2,560,445 | $听听听听听听 2,144,567 | $听听听听听听 1,587,914 | ||||
Money market & savings | 1,648,338 | 1,633,307 | 1,366,276 | 1,725,387 | 1,480,985 | ||||
Brokered CDs & time | 1,173,213 | 1,253,841 | 1,247,900 | 1,328,076 | 1,141,758 | ||||
Total interest-bearing | 5,060,651 | 5,103,391 | 5,174,621 | 5,198,030 | 4,210,657 | ||||
Borrowings: | |||||||||
Short-term borrowings | 457,775 | 336,245 | 325,084 | 304,849 | 376,063 | ||||
Subordinated debt | 113,813 | 112,383 | 111,021 | 109,557 | 72,643 | ||||
Total interest-bearing | $听听听听听听 5,632,239 | $听听听听听听 5,552,019 | $听听听听听听 5,610,726 | $听听听听听听 5,612,436 | $听听听听听听 4,659,363 | ||||
Non-interest-bearing deposits | $听听听听听听 1,352,785 | $听听听听听听 1,371,615 | $听听听听听听 1,411,202 | $听听听听听听 1,389,134 | $听听听听听听 1,207,443 | ||||
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Burke & Herbert Financial Services Corp. | |||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||
2025 | 2025 | 2024 | 2024 | 2024 | |||||
Per common share information | |||||||||
Basic earnings (loss) | $听听听听听听听听听听听听听听听 1.98 | $听听听听听听听听听听听听听听听 1.80 | $听听听听听听听听听听听听听听听 1.31 | $听听听听听听听听听听听听听听听 1.83 | $听听听听听听听听听听听听听听 (1.41) | ||||
Diluted earnings (loss) | 1.97 | 1.80 | 1.30 | 1.82 | (1.41) | ||||
Cash dividends | 0.55 | 0.55 | 0.55 | 0.53 | 0.53 | ||||
Book value | 51.28 | 49.90 | 48.08 | 48.63 | 45.72 | ||||
Tangible book value | 45.73 | 44.17 | 42.06 | 42.32 | 39.11 | ||||
Balance sheet-related (at period end, unless otherwise indicated) | |||||||||
Assets | $听听听听听听听 8,057,981 | $听听听听听听听 7,838,090 | $听听听听听听听 7,812,185 | $听听听听听听听 7,864,913 | $听听听听听听听 7,810,193 | ||||
Average interest-earning assets | 7,248,238 | 7,171,931 | 7,273,770 | 7,238,636 | 5,994,383 | ||||
Loans (gross) | 5,590,457 | 5,647,507 | 5,672,236 | 5,574,037 | 5,616,724 | ||||
Loans (net) | 5,523,201 | 5,579,754 | 5,604,196 | 5,506,220 | 5,548,707 | ||||
Securities, available-for- | 1,522,611 | 1,436,869 | 1,432,371 | 1,436,431 | 1,414,870 | ||||
Intangible assets | 49,114 | 53,002 | 57,300 | 61,598 | 65,895 | ||||
Goodwill | 34,149 | 32,842 | 32,783 | 32,783 | 32,783 | ||||
Non-interest-bearing | 1,363,617 | 1,382,427 | 1,379,940 | 1,392,123 | 1,397,030 | ||||
Interest-bearing deposits | 5,027,357 | 5,159,444 | 5,135,299 | 5,208,702 | 5,242,541 | ||||
Deposits, total | 6,390,974 | 6,541,871 | 6,515,239 | 6,600,825 | 6,639,571 | ||||
Brokered deposits | 132,098 | 246,902 | 244,802 | 345,328 | 403,668 | ||||
Uninsured deposits | 1,963,566 | 1,943,227 | 1,926,724 | 1,999,403 | 1,931,786 | ||||
Short-term borrowings | 650,000 | 300,000 | 365,000 | 320,163 | 285,161 | ||||
Subordinated debt, net | 114,692 | 113,289 | 111,885 | 110,482 | 109,064 | ||||
Unused borrowing | 4,075,313 | 4,082,879 | 4,092,378 | 2,353,963 | 2,162,112 | ||||
Total equity | 780,018 | 758,000 | 730,157 | 738,059 | 693,126 | ||||
Total common equity | 769,605 | 747,587 | 719,744 | 727,646 | 682,713 | ||||
Accumulated other | (87,854) | (88,024) | (95,720) | (75,758) | (100,430) | ||||
Asset Quality | |||||||||
Provision for credit losses | $听听听听听听听听听听听听听听听听 624 | $听听听听听听听听听听听听听听听听 501 | $听听听听听听听听听听听听听听听听 833 | $听听听听听听听听听听听听听听听听 147 | $听听听听听听听听听听听听 23,910 | ||||
Net loan charge-offs | 1,214 | 1,187 | 737 | 285 | 599 | ||||
Allowance for credit | 67,256 | 67,753 | 68,040 | 67,817 | 68,017 | ||||
Total delinquencies (4) | 29,056 | 86,223 | 38,213 | 12,486 | 16,334 | ||||
Nonperforming loans (5) | 85,531 | 64,756 | 38,368 | 35,872 | 32,842 | ||||
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Burke & Herbert Financial Services Corp. | |||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||
2025 | 2025 | 2024 | 2024 | 2024 | |||||
Income statement | |||||||||
Interest income | $听听听听听听听 111,858 | $听听听听听听听 110,786 | $听听听听听听听 112,793 | $听听听听听听听 118,526 | $听听听听听听听听 96,097 | ||||
Interest expense | 37,625 | 37,799 | 42,083 | 45,347 | 36,332 | ||||
Non-interest income | 12,877 | 10,023 | 11,791 | 10,616 | 9,505 | ||||
Total revenue (non- | 87,110 | 83,010 | 82,501 | 83,795 | 69,270 | ||||
Non-interest expense | 49,305 | 49,664 | 61,410 | 50,826 | 64,432 | ||||
Pretax, pre-provision | 37,805 | 33,346 | 21,091 | 32,969 | 4,838 | ||||
Provision for (recapture | 624 | 501 | 833 | 147 | 23,910 | ||||
Income (loss) before | 37,181 | 32,845 | 20,258 | 32,822 | (19,072) | ||||
Income tax expense | 7,284 | 5,644 | 465 | 5,200 | (2,153) | ||||
Net income (loss) | 29,897 | 27,201 | 19,793 | 27,622 | (16,919) | ||||
Preferred stock dividends | 225 | 225 | 225 | 225 | 225 | ||||
Net income (loss) | $听听听听听听听听 29,672 | $听听听听听听听听 26,976 | $听听听听听听听听 19,568 | $听听听听听听听听 27,397 | $听听听听听听听 (17,144) | ||||
Ratios | |||||||||
Return on average assets | 1.51听% | 1.41听% | 1.00听% | 1.40听% | (1.06)听% | ||||
Return on average equity | 15.50 | 14.57 | 10.49 | 15.20 | (12.44) | ||||
Net interest margin (non- | 4.17 | 4.18 | 3.91 | 4.07 | 4.06 | ||||
Efficiency ratio | 56.60 | 59.83 | 74.44 | 60.66 | 93.02 | ||||
Loan-to-deposit ratio | 87.47 | 86.33 | 87.06 | 84.44 | 84.59 | ||||
Consolidated Common | 12.21 | 11.77 | 11.53 | 11.40 | 10.91 | ||||
Consolidated Total risk- | 15.26 | 14.79 | 14.57 | 14.45 | 13.91 | ||||
Consolidated Leverage | 10.42 | 10.12 | 9.80 | 9.66 | 9.04 | ||||
Allowance coverage ratio | 1.20 | 1.20 | 1.20 | 1.22 | 1.21 | ||||
Allowance for credit losses | 78.63 | 104.63 | 177.34 | 189.05 | 207.10 | ||||
Non-performing loans as | 1.53 | 1.15 | 0.68 | 0.64 | 0.58 | ||||
Non-performing assets as | 1.10 | 0.86 | 0.53 | 0.49 | 0.46 | ||||
Net charge-offs to | 8.6 bps | 8.5 bps | 5.2 bps | 2.0 bps | 5.4 bps | ||||
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Burke & Herbert Financial Services Corp. Non-GAAP Reconciliations (unaudited) (In thousands, except ratios and per share amounts) | ||||||||||
Operating net income, adjusted diluted EPS, and adjusted non-interest expense (non-GAAP1) | ||||||||||
For the three months ended | ||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||
2025 | 2025 | 2024 | 2024 | 2024 | ||||||
Net income (loss) | $听听听听听听听听听听听 29,672 | $听听听听听听听听听听听 26,976 | $听听听听听听听听听听听 19,568 | $听听听听听听听听听听听 27,397 | $听听听听听听听听听 (17,144) | |||||
Add back significant items | ||||||||||
Merger-related | 鈥� | 鈥� | 7,069 | 2,449 | 18,806 | |||||
Day 2 non-PCD | 鈥� | 鈥� | 鈥� | 鈥� | 23,305 | |||||
Total significant items | 鈥� | 鈥� | 7,069 | 2,449 | 42,111 | |||||
Operating net income | $听听听听听听听听听听听 29,672 | $听听听听听听听听听听听 26,976 | $听听听听听听听听听听听 26,637 | $听听听听听听听听听听听 29,846 | $听听听听听听听听听听听 24,967 | |||||
Weighted average dilutive | 15,023,807 | 15,026,376 | 15,038,442 | 15,040,145 | 12,262,979 | |||||
Adjusted diluted EPS 6 | $听听听听听听听听听听听听听听 1.97 | $听听听听听听听听听听听听听听 1.80 | $听听听听听听听听听听听听听听 1.77 | $听听听听听听听听听听听听听听 1.98 | $听听听听听听听听听听听听听听 2.04 | |||||
Non-interest expense | $听听听听听听听听听听听 49,305 | $听听听听听听听听听听听 49,664 | $听听听听听听听听听听听 61,410 | $听听听听听听听听听听听 50,826 | $听听听听听听听听听听听 64,432 | |||||
Remove significant items: | ||||||||||
Merger-related | 鈥� | 鈥� | 8,948 | 3,101 | 23,805 | |||||
Total significant items | $听听听听听听听听听听听听听听听听听 鈥� | $听听听听听听听听听听听听听听听听听 鈥� | $听听听听听听听听听听听听听 8,948 | $听听听听听听听听听听听听听 3,101 | $听听听听听听听听听听听 23,805 | |||||
Adjusted non-interest | $听听听听听听听听听听听 49,305 | $听听听听听听听听听听听 49,664 | $听听听听听听听听听听听 52,462 | $听听听听听听听听听听听 47,725 | $听听听听听听听听听听听 40,627 | |||||
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Operating net income is a non-GAAP measure that is derived from net income adjusted for significant items. The Company believes that operating net income is useful in periods with certain significant items such as merger-related expenses or Day 2 non-PCD provision. The operating net income is more reflective of management's ability to grow the business and manage expenses. Adjusted non-interest expense also removes these significant items, such as merger-related expenses. Management believes it represents a more normalized non-interest expense total for periods with identified significant items.
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Total Revenue (non-GAAP1) | ||||||||||
For the three months ended | ||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||
2025 | 2025 | 2024 | 2024 | 2024 | ||||||
Interest income | $听听听听听听听听听 111,858 | $听听听听听听听听听 110,786 | $听听听听听听听听听 112,793 | $听听听听听听听听听 118,526 | $听听听听听听听听听听听 96,097 | |||||
Interest expense | 37,625 | 37,799 | 42,083 | 45,347 | 36,332 | |||||
Non-interest income | 12,877 | 10,023 | 11,791 | 10,616 | 9,505 | |||||
Total revenue (non- | $听听听听听听听听听听听 87,110 | $听听听听听听听听听听听 83,010 | $听听听听听听听听听听听 82,501 | $听听听听听听听听听听听 83,795 | $听听听听听听听听听听听 69,270 | |||||
Total revenue is a non-GAAP measure and is derived from total interest income less total interest expense plus total non-interest income. We believe that total revenue is a useful tool to determine how the Company is managing its business and demonstrates how stable our revenue sources are from period to period.
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Burke & Herbert Financial Services Corp. Non-GAAP Reconciliations (unaudited) (In thousands, except ratios and per share amounts) | ||||||||||
Pretax, Pre-Provision Earnings (non-GAAP1) | ||||||||||
For the three months ended | ||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||
2025 | 2025 | 2024 | 2024 | 2024 | ||||||
Income (loss) before taxes | $听听听听听听听听听听听 37,181 | $听听听听听听听听听听听 32,845 | $听听听听听听听听听听听 20,258 | $听听听听听听听听听听听 32,822 | $听听听听听听听听听听 (19,072) | |||||
Provision for (recapture of) | 624 | 501 | 833 | 147 | 23,910 | |||||
Pretax, pre- | $听听听听听听听听听听听 37,805 | $听听听听听听听听听听听 33,346 | $听听听听听听听听听听听 21,091 | $听听听听听听听听听听听 32,969 | $听听听听听听听听听听听听听 4,838 | |||||
Pretax, pre-provision earnings is a non-GAAP measure and is based on adjusting income before income taxes and to exclude provision for (recapture of) credit losses. We believe that pretax, pre-provision earnings is a useful tool to help evaluate the ability to provide for credit costs through operations and provides an additional basis to compare results between periods by isolating the impact of provision for (recapture of) credit losses, which can vary significantly between periods.
听
Tangible Common Equity (non-GAAP1) | ||||||||||
For the three months ended | ||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||
2025 | 2025 | 2024 | 2024 | 2024 | ||||||
Common shareholders' | $听听听听听听听听听 769,605 | $听听听听听听听听听 747,587 | $听听听听听听听听听 719,744 | $听听听听听听听听听 727,646 | $听听听听听听听听听 682,713 | |||||
Less: | ||||||||||
Intangible assets | 49,114 | 53,002 | 57,300 | 61,598 | 65,895 | |||||
Goodwill | 34,149 | 32,842 | 32,783 | 32,783 | 32,783 | |||||
Tangible common equity | $听听听听听听听听听 686,342 | $听听听听听听听听听 661,743 | $听听听听听听听听听 629,661 | $听听听听听听听听听 633,265 | $听听听听听听听听听 584,035 | |||||
Shares outstanding at end | 15,007,712 | 14,982,807 | 14,969,104 | 14,963,003 | 14,932,169 | |||||
Tangible book value per | $听听听听听听听听听听听听听 45.73 | $听听听听听听听听听听听听听 44.17 | $听听听听听听听听听听听听听 42.06 | $听听听听听听听听听听听听听 42.32 | $听听听听听听听听听听听听听 39.11 | |||||
听
In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength because they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive income/(loss) in stockholders' equity.
听
Burke & Herbert Financial Services Corp. Non-GAAP Reconciliations (unaudited) (In thousands, except ratios and per share amounts) | ||||||||||
Net Interest Margin & Taxable-Equivalent Net Interest Income (non-GAAP1) | ||||||||||
As of or for the three months ended | ||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||
2025 | 2025 | 2024 | 2024 | 2024 | ||||||
Net interest income | $听听听听听听听 74,233 | $听听听听听听听 72,987 | $听听听听听听听 70,710 | $听听听听听听听 73,179 | $听听听听听听听 59,765 | |||||
Taxable-equivalent | 1,059 | 881 | 858 | 847 | 688 | |||||
Net interest income | $听听听听听听听 75,292 | $听听听听听听听 73,868 | $听听听听听听听 71,568 | $听听听听听听听 74,026 | $听听听听听听听 60,453 | |||||
Average interest-earning | $听听听 7,248,238 | $听听听 7,171,931 | $听听听 7,273,770 | $听听听 7,238,636 | $听听听 5,994,383 | |||||
Net interest margin | 4.17听% | 4.18听% | 3.91听% | 4.07听% | 4.06听% | |||||
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use net interest income on a fully taxable-equivalent (FTE) basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. FTE net interest income is calculated by adding the tax benefit on certain financial interest earning assets, whose interest is tax-exempt, to total interest income then subtracting total interest expense. Management believes FTE net interest income is a standard practice in the banking industry, and when net interest income is adjusted on an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income and this adjustment is not permitted under GAAP. FTE net interest income is only used for calculating FTE net interest margin, which is calculated by annualizing FTE net interest income and then dividing by the average earning assets. The tax rate used for this adjustment is
(1) Non-GAAP financial measures referenced in this release are used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the non-GAAP reconciliation tables in this release. Non-GAAP measures should not be used as a substitute for the closest comparable GAAP measurements. (2) Ratios as of June 30, 2025, are estimated. | |
(3) Includes Federal Home Loan Bank, Borrower-in-Custody (BIC), and correspondent bank availability. | |
(4) Total delinquencies represent accruing loans 30 days or more past due. | |
(5) Includes non-accrual loans and loans 90 days past due and still accruing. | |
(6) Weighted average diluted shares for Q2 2024 calculated only for computation of adjusted diluted EPS. Weighted average diluted shares for GAAP diluted EPS are the same as shares for calculating basic EPS due to the antidilutive effect of the diluted shares when considering the GAAP net loss for the quarter. |
CONTACT:
Investor Relations
703-666-3555听
[email protected]听
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