Burke & Herbert Financial Services Corp. Announces Fourth Quarter and Full Year 2024 Results and Declares Common Stock Dividend
Burke & Herbert Financial Services Corp. (BHRB) has reported its Q4 and full-year 2024 results, declaring a $0.55 per share cash dividend payable on March 3, 2025. The company achieved Q4 net income of $19.6 million ($1.30 per diluted share), with adjusted operating net income of $26.6 million ($1.77 per diluted share).
The full-year 2024 results showed net income of $35.0 million ($2.82 per diluted share), with adjusted operating net income of $87.2 million ($7.01 per diluted share). The company maintains strong liquidity of $4.2 billion and reported total gross loans of $5.7 billion with total deposits of $6.5 billion.
Key financial metrics include an 11.5% Common Equity Tier 1 capital ratio, 14.6% Total risk-based capital ratio, and a 9.8% leverage ratio. The company completed its merger with Summit Financial Group in May 2024 and became a Federal Reserve System member on December 31, 2024.
Burke & Herbert Financial Services Corp. (BHRB) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, dichiarando un dividendo in contante di $0.55 per azione, pagabile il 3 marzo 2025. L'azienda ha registrato un reddito netto di $19.6 milioni ($1.30 per azione diluita) nel quarto trimestre, con un reddito netto operativo rettificato di $26.6 milioni ($1.77 per azione diluita).
I risultati dell'intero anno 2024 hanno mostrato un reddito netto di $35.0 milioni ($2.82 per azione diluita), con un reddito netto operativo rettificato di $87.2 milioni ($7.01 per azione diluita). L'azienda mantiene una solida liquidità di $4.2 miliardi e ha riportato prestiti lordi totali di $5.7 miliardi con depositi totali di $6.5 miliardi.
I principali indicatori finanziari includono un rapporto di capitale di base comune Tier 1 dell'11.5%, un rapporto di capitale totale basato sul rischio del 14.6% e un rapporto di leva finanziaria del 9.8%. L'azienda ha completato la sua fusione con il Summit Financial Group nel maggio 2024 ed è diventata membro del Federal Reserve System il 31 dicembre 2024.
Burke & Herbert Financial Services Corp. (BHRB) ha informado sobre sus resultados del cuarto trimestre y del año completo 2024, declarando un dividendo en efectivo de $0.55 por acción, pagadero el 3 de marzo de 2025. La compañía logró un ingreso neto de $19.6 millones ($1.30 por acción diluida) en el cuarto trimestre, con un ingreso neto operativo ajustado de $26.6 millones ($1.77 por acción diluida).
Los resultados del año completo 2024 mostraron un ingreso neto de $35.0 millones ($2.82 por acción diluida), con un ingreso neto operativo ajustado de $87.2 millones ($7.01 por acción diluida). La compañía mantiene una fuerte liquidez de $4.2 mil millones e informó de préstamos brutos totales de $5.7 mil millones con depósitos totales de $6.5 mil millones.
Los principales indicadores financieros incluyen una relación de capital de nivel 1 común del 11.5%, una relación de capital total basada en riesgos del 14.6% y una relación de apalancamiento del 9.8%. La empresa completó su fusión con Summit Financial Group en mayo de 2024 y se convirtió en miembro del Sistema de la Reserva Federal el 31 de diciembre de 2024.
버크 앤 허버트 금융 서비스 주식회사 (BHRB)는 2024년 4분기 및 전년 전체 결과를 보고하며, 2025년 3월 3일에 지급될 주당 $0.55의 현금 배당금을 선언했습니다. 이 회사는 4분기 순이익이 $1960만 달러(희석 주당 $1.30)로, 조정된 운영 순이익은 $2660만 달러(희석 주당 $1.77)에 달했습니다.
2024년 전체 결과는 순이익이 $3500만 달러(희석 주당 $2.82), 조정된 운영 순이익이 $8720만 달러(희석 주당 $7.01)임을 보여주었습니다. 이 회사는 42억 달러의 강력한 유동성을 유지하고 있으며, 총 대출액은 57억 달러, 총 예금액은 65억 달러입니다.
주요 재무 지표로는 11.5%의 보통주 자본 비율, 14.6%의 총 위험 기반 자본 비율, 9.8%의 레버리지 비율이 포함됩니다. 이 회사는 2024년 5월 써미트 금융 그룹과의 합병을 완료하고 2024년 12월 31일에 연방준비제도에 가입했습니다.
Burke & Herbert Financial Services Corp. (BHRB) a publié ses résultats pour le quatrième trimestre et l'année complète 2024, annonçant un dividende en espèces de 0,55 $ par action, payable le 3 mars 2025. L'entreprise a réalisé un bénéfice net de 19,6 millions de dollars (1,30 $ par action diluée) au quatrième trimestre, avec un bénéfice net opérationnel ajusté de 26,6 millions de dollars (1,77 $ par action diluée).
Les résultats de l'année complète 2024 ont montré un bénéfice net de 35,0 millions de dollars (2,82 $ par action diluée), avec un bénéfice net opérationnel ajusté de 87,2 millions de dollars (7,01 $ par action diluée). L'entreprise maintient une forte liquidité de 4,2 milliards de dollars et a déclaré des prêts bruts totaux de 5,7 milliards de dollars avec des dépôts totaux de 6,5 milliards de dollars.
Les principaux indicateurs financiers comprennent un ratio de capital de niveau 1 de 11,5%, un ratio de capital total basé sur le risque de 14,6% et un ratio de levier de 9,8%. L'entreprise a achevé sa fusion avec le Summit Financial Group en mai 2024 et est devenue membre du Système de la Réserve fédérale le 31 décembre 2024.
Burke & Herbert Financial Services Corp. (BHRB) hat seine Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 bekannt gegeben und einebar.dividende von 0,55 USD pro Aktie erklärt, die am 3. März 2025 zahlbar ist. Das Unternehmen erreichte im 4. Quartal einen Nettogewinn von 19,6 Millionen USD (1,30 USD pro verwässerter Aktie) und einen bereinigten operativen Nettogewinn von 26,6 Millionen USD (1,77 USD pro verwässerter Aktie).
Die Ergebnisse für das gesamte Jahr 2024 zeigten einen Nettogewinn von 35,0 Millionen USD (2,82 USD pro verwässerter Aktie) und einen bereinigten operativen Nettogewinn von 87,2 Millionen USD (7,01 USD pro verwässerter Aktie). Das Unternehmen hat eine starke Liquidität von 4,2 Milliarden USD und berichtete von Gesamtbrutto-krediten in Höhe von 5,7 Milliarden USD sowie Gesamteinlagen von 6,5 Milliarden USD.
Wichtige Finanzkennzahlen umfassen ein Verhältnis von 11,5% für das Eigenkapital der 1. Stufe, ein Verhältnis des Gesamtrisiko-Kapital von 14,6% und ein Hebelverhältnis von 9,8%. Das Unternehmen hat im Mai 2024 seine Fusion mit der Summit Financial Group abgeschlossen und wurde am 31. Dezember 2024 Mitglied des Federal Reserve Systems.
- Strong capital position with Common Equity Tier 1 ratio of 11.5%, well above the 6.5% requirement
- Healthy liquidity position of $4.2 billion
- Q4 adjusted operating net income of $26.6 million ($1.77 per diluted share)
- Loan growth of $98.2 million in Q4 2024
- Decreased cost of total deposits from 2.38% to 2.17% in Q4
- Net interest income decreased from $73.2M to $70.7M quarter-over-quarter
- Net interest margin declined to 3.91% from 4.07% in Q3 2024
- Total deposits decreased by $85.6 million from Q3 2024
- $8.9 million in merger-related expenses impacting Q4 results
Insights
Burke & Herbert's Q4 2024 results reveal a compelling financial narrative marked by strategic growth and operational efficiency. The completion of the Summit Financial Group merger has already demonstrated tangible benefits, with adjusted operating net income reaching
Three key developments warrant attention: First, the company's entry into the Federal Reserve System, accompanied by a
The bank's balance sheet exhibits robust health with:
- Total liquidity of
$4.2 billion , providing ample buffer for growth opportunities - Strong capital ratios significantly exceeding 'well-capitalized' thresholds
- Stable asset quality with reserves at
1.2% of total loans
The net interest margin compression to
Q4 2024 Highlights
- On December 31, 2024, Burke & Herbert Bank & Trust Company became a new member of the Federal Reserve System and purchased shares of Federal Reserve Bank Stock in the amount of
$14.8 million - On December 11, 2024, the Company's form S-3 was declared effective by the Securities and Exchange Commission and may allow the Company from time to time to offer securities whose aggregate initial offering price will not exceed
$350 million - Financial results reflect the May 3, 2024, completion of the merger of Summit Financial Group, Inc. ("Summit"), with and into Burke & Herbert and the merger of Summit Community Bank, Inc., with and into Burke & Herbert Bank & Trust Company.
- For the quarter, net income applicable to common shares totaled
$19.6 million $1.30 - For the quarter, adjusted (non-GAAP1) operating net income applicable to common shares totaled
$26.6 million $1.77 - For the twelve months ended December 31, 2024, net income applicable to common shares totaled
$35.0 million $2.82 - For the twelve months ended December 31, 2024, adjusted (non-GAAP1) operating net income applicable to common shares totaled
$87.2 million $7.01 - The balance sheet remains strong with ample liquidity. Total liquidity, including all available borrowing capacity with cash and cash equivalents, totaled
$4.2 billion - Ending total gross loans of
$5.7 billion $6.5 billion 87.1% . - Asset quality remains stable across the loan portfolio with adequate reserves.
- The Company continues to be well-capitalized, ending the quarter with
11.5% 2 Common Equity Tier 1 capital to risk-weighted assets,14.6% 2 Total risk-based capital to risk-weighted assets, and a leverage ratio of9.8% 2.
From David P. Boyle, Company Chair and Chief Executive Officer
"Our results for the quarter demonstrate the financial benefits of the merger with Summit and the teamwork involved with the systems integration that took place in November. Despite the amount of time and energy committed to the conversion, we grew both loans and core deposits during the quarter. In addition, the balance sheet reflects ample liquidity and capital as we enter 2025 and we look forward to delivering increased value for our customers, employees, communities, and shareholders."
Results of Operations
Fourth Quarter 2024
The Company reported fourth quarter 2024 net income applicable to common shares of
Included in the fourth quarter were pre-tax charges of
- Period-end total gross loans were
$5.7 billion $98.2 million - Period-end total deposits were
$6.5 billion $85.6 million $100.5 million - Net interest income for the quarter was
$70.7 million $73.2 million - Net interest margin on a fully taxable equivalent basis (non-GAAP1) decreased to
3.91% versus4.07% in the third quarter of 2024 primarily due to lower accelerated loan accretion income. - Accretion income on loans during the quarter was
$12.0 million $3.8 million $15.4 million $3.8 million - The cost of total deposits, including non-interest bearing deposits, was
2.17% in the fourth quarter of 2024, compared to2.38% in the third quarter of 2024. - The Company recorded a provision expense on loans in the fourth quarter of 2024 of
$1.0 million - The allowance for credit losses at December 31, 2024, was
$68.0 million 1.2% of total loans. - Total non-interest income for the fourth quarter of 2024 was
$11.8 million $10.6 million - Non-interest expense for the fourth quarter of 2024 was
$61.4 million $8.9 million
Regulatory capital ratios2
The Company continues to be well-capitalized with capital ratios that are above regulatory requirements. As of December 31, 2024, 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 December 31, 2024, 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; the expected cost savings, synergies, returns, and other anticipated benefits from the integration of Summit following the recently completed merger of Summit with and into the Company; and other statements that are not historical facts.
Forward–looking 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–looking 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–looking 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–looking 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. Accordingly, you should not place undue reliance on forward-looking statements.
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; risks related to our ability to successfully integrate Summit into the Company and operate the combined company; changes in general economic trends (either nationally or locally in the areas in which we conduct, or will conduct, business), including inflation, interest rates, market and monetary fluctuations; increased competition; changes in consumer demand for financial services; 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 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–K for the year ended December 31, 2023, the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, September 30, 2024, and other reports the Company files with the SEC.
Burke & Herbert Financial Services Corp. Consolidated Statements of Income (unaudited) (In thousands) | ||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
2024 | 2023 | 2024 | 20233 | |||||
Interest income | ||||||||
Taxable loans, including fees | $ 97,903 | $ 27,315 | $ 311,303 | $ 101,800 | ||||
Tax-exempt loans, including fees | 37 | — | 118 | — | ||||
Taxable securities | 9,868 | 9,049 | 39,817 | 37,179 | ||||
Tax-exempt securities | 3,191 | 1,372 | 10,243 | 5,615 | ||||
Other interest income | 1,794 | 444 | 4,680 | 2,302 | ||||
Total interest income | 112,793 | 38,180 | 366,161 | 146,896 | ||||
Interest expense | ||||||||
Deposits | 35,919 | 12,487 | 118,664 | 39,195 | ||||
Short-term borrowings | 3,383 | 3,361 | 14,189 | 13,856 | ||||
Subordinated debt | 2,754 | — | 7,412 | — | ||||
Other interest expense | 27 | 28 | 111 | 86 | ||||
Total interest expense | 42,083 | 15,876 | 140,376 | 53,137 | ||||
Net interest income | 70,710 | 22,304 | 225,785 | 93,759 | ||||
Credit loss expense (recapture) - loans and available-for-sale securities | 960 | (799) | 20,475 | 235 | ||||
Credit loss expense (recapture) - off-balance sheet credit exposures | (127) | 49 | 3,745 | (21) | ||||
Total provision for (recapture of) credit losses | 833 | (750) | 24,220 | 214 | ||||
Net interest income after credit loss expense | 69,877 | 23,054 | 201,565 | 93,545 | ||||
Non-interest income | ||||||||
Fiduciary and wealth management | 2,429 | 1,358 | 8,411 | 5,354 | ||||
Service charges and fees | 4,447 | 1,711 | 15,594 | 6,670 | ||||
Net gains (losses) on securities | 744 | — | 1,357 | (112) | ||||
Income from company-owned life insurance | 1,887 | 1,124 | 4,686 | 2,844 | ||||
Other non-interest income | 2,284 | 631 | 6,118 | 3,196 | ||||
Total non-interest income | 11,791 | 4,824 | 36,166 | 17,952 | ||||
Non-interest expense | ||||||||
Salaries and wages | 25,818 | 9,964 | 77,089 | 39,247 | ||||
Pensions and other employee benefits | 4,840 | 2,285 | 17,186 | 9,401 | ||||
Occupancy | 3,630 | 1,571 | 11,577 | 6,035 | ||||
Equipment rentals, depreciation and maintenance | 4,531 | 1,539 | 23,174 | 5,770 | ||||
Other operating | 22,591 | 6,941 | 68,807 | 25,983 | ||||
Total non-interest expense | 61,410 | 22,300 | 197,833 | 86,436 | ||||
Income before income taxes | 20,258 | 5,578 | 39,898 | 25,061 | ||||
Income tax expense | 465 | 500 | 4,190 | 2,369 | ||||
Net income | 19,793 | 5,078 | 35,708 | 22,692 | ||||
Preferred stock dividends | 225 | — | 675 | — | ||||
Net income applicable to common shares | $ 19,568 | $ 5,078 | $ 35,033 | $ 22,692 | ||||
Burke & Herbert Financial Services Corp. Consolidated Balance Sheets (In thousands) | ||||
December 31, 2024 | December 31, 2023 | |||
(Unaudited) | (Audited) | |||
Assets | ||||
Cash and due from banks | $ 35,554 | $ 8,896 | ||
Interest-earning deposits with banks | 99,760 | 35,602 | ||
Cash and cash equivalents | 135,314 | 44,498 | ||
Securities available-for-sale, at fair value | 1,432,371 | 1,248,439 | ||
Restricted stock, at cost | 33,559 | 5,964 | ||
Loans held-for-sale, at fair value | 2,331 | 1,497 | ||
Loans | 5,672,236 | 2,087,756 | ||
Allowance for credit losses | (68,040) | (25,301) | ||
Net loans | 5,604,196 | 2,062,455 | ||
Other real estate owned | 2,783 | — | ||
Premises and equipment, net | 132,270 | 61,128 | ||
Accrued interest receivable | 34,454 | 15,895 | ||
Intangible assets | 57,300 | — | ||
Goodwill | 32,783 | — | ||
Company-owned life insurance | 182,834 | 94,159 | ||
Other assets | 161,990 | 83,544 | ||
Total Assets | $ 7,812,185 | $ 3,617,579 | ||
Liabilities and Shareholders' Equity | ||||
Liabilities | ||||
Non-interest-bearing deposits | $ 1,379,940 | $ 830,320 | ||
Interest-bearing deposits | 5,135,299 | 2,171,561 | ||
Total deposits | 6,515,239 | 3,001,881 | ||
Short-term borrowings | 365,000 | 272,000 | ||
Subordinated debentures, net | 94,872 | — | ||
Subordinated debentures owed to unconsolidated subsidiary trusts | 17,013 | — | ||
Accrued interest and other liabilities | 89,904 | 28,948 | ||
Total Liabilities | 7,082,028 | 3,302,829 | ||
Shareholders' Equity | ||||
Preferred stock and surplus | 10,413 | — | ||
Common stock | 7,770 | 4,000 | ||
Common stock, additional paid-in capital | 401,172 | 14,495 | ||
Retained earnings | 434,106 | 427,333 | ||
Accumulated other comprehensive income (loss) | (95,720) | (103,494) | ||
Treasury stock | (27,584) | (27,584) | ||
Total Shareholders' Equity | 730,157 | 314,750 | ||
Total Liabilities and Shareholders' Equity | $ 7,812,185 | $ 3,617,579 | ||
Burke & Herbert Financial Services Corp. Details of Net Interest Margin (unaudited) For the three months ended
| |||||||||
Details of Net Interest Margin - Yield Percentages | |||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||
2024 | 2024 | 2024 | 2024 | 2023 | |||||
Interest-earning assets: | |||||||||
Loans: | |||||||||
Taxable loans | 6.91 % | 7.34 % | 7.33 % | 5.41 % | 5.24 % | ||||
Tax-exempt loans | 5.87 | 5.63 | 5.55 | — | — | ||||
Total loans | 6.91 | 7.34 | 7.33 | 5.41 | 5.24 | ||||
Interest-earning deposits and fed funds sold | 4.48 | 3.43 | 3.54 | 3.82 | 4.35 | ||||
Securities: | |||||||||
Taxable securities | 3.82 | 4.05 | 4.48 | 3.63 | 3.73 | ||||
Tax-exempt securities | 3.55 | 3.58 | 3.05 | 2.67 | 2.64 | ||||
Total securities | 3.75 | 3.91 | 4.05 | 3.43 | 3.50 | ||||
Total interest-earning assets | 6.22 % | 6.56 % | 6.49 % | 4.66 % | 4.59 % | ||||
Interest-bearing liabilities: | |||||||||
Deposits: | |||||||||
Interest-bearing demand | 2.51 % | 3.19 % | 3.00 % | 0.63 % | 0.61 % | ||||
Savings | 1.60 | 1.43 | 1.53 | 1.97 | 1.97 | ||||
Time | 4.55 | 4.82 | 4.55 | 4.12 | 3.97 | ||||
Total interest-bearing deposits | 2.76 | 3.02 | 2.90 | 2.41 | 2.31 | ||||
Borrowings: | |||||||||
Short-term borrowings | 4.17 | 4.06 | 4.38 | 4.82 | 4.76 | ||||
Subordinated debt borrowings and other | 9.87 | 10.16 | 10.30 | — | — | ||||
Total interest-bearing liabilities | 2.98 % | 3.21 % | 3.14 % | 2.71 % | 2.59 % | ||||
Taxable-equivalent net interest spread | 3.24 | 3.35 | 3.35 | 1.95 | 2.00 | ||||
Benefit from use of non-interest-bearing deposits | 0.67 | 0.72 | 0.71 | 0.73 | 0.70 | ||||
Taxable-equivalent net interest margin (non-GAAP1) | 3.91 % | 4.07 % | 4.06 % | 2.68 % | 2.70 % | ||||
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 | |||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||
2024 | 2024 | 2024 | 2024 | 2023 | |||||
Interest-earning assets: | |||||||||
Loans: | |||||||||
Taxable loans | $ 5,634,157 | $ 5,621,531 | $ 4,481,993 | $ 2,085,826 | $ 2,069,738 | ||||
Tax-exempt loans | 3,115 | 4,310 | 3,041 | — | — | ||||
Total loans | 5,637,272 | 5,625,841 | 4,485,034 | 2,085,826 | 2,069,738 | ||||
Interest-earning deposits and fed funds sold | 152,537 | 175,265 | 94,765 | 41,692 | 40,524 | ||||
Securities: | |||||||||
Taxable securities | 1,031,024 | 996,749 | 988,492 | 989,875 | 961,396 | ||||
Tax-exempt securities | 452,937 | 440,781 | 426,092 | 259,699 | 261,075 | ||||
Total securities | 1,483,961 | 1,437,530 | 1,414,584 | 1,249,574 | 1,222,471 | ||||
Total interest-earning assets | $ 7,273,770 | $ 7,238,636 | $ 5,994,383 | $ 3,377,092 | $ 3,332,733 | ||||
Interest-bearing liabilities: | |||||||||
Deposits: | |||||||||
Interest-bearing demand | $ 2,560,445 | $ 2,144,567 | $ 1,587,914 | $ 489,779 | $ 514,760 | ||||
Savings | 1,366,276 | 1,725,387 | 1,480,985 | 922,732 | 920,600 | ||||
Time | 1,247,900 | 1,328,076 | 1,141,758 | 745,945 | 711,575 | ||||
Total interest-bearing deposits | 5,174,621 | 5,198,030 | 4,210,657 | 2,158,456 | 2,146,935 | ||||
Borrowings: | |||||||||
Short-term borrowings | 325,084 | 304,849 | 376,063 | 307,446 | 282,426 | ||||
Subordinated debt borrowings and other | 111,021 | 109,557 | 72,643 | — | — | ||||
Total interest-bearing liabilities | $ 5,610,726 | $ 5,612,436 | $ 4,659,363 | $ 2,465,902 | $ 2,429,361 | ||||
Non-interest-bearing deposits | $ 1,411,202 | $ 1,389,134 | $ 1,207,443 | $ 812,199 | $ 852,120 | ||||
Burke & Herbert Financial Services Corp. Supplemental Information (unaudited) As of or for the three months ended (In thousands, except ratios and per share amounts) | |||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||
2024 | 2024 | 2024 | 2024 | 2023 | |||||
Per common share information | |||||||||
Basic earnings (loss) | $ 1.31 | $ 1.83 | $ (1.41) | $ 0.70 | $ 0.68 | ||||
Diluted earnings (loss) | 1.30 | 1.82 | (1.41) | 0.69 | 0.67 | ||||
Cash dividends | 0.55 | 0.53 | 0.53 | 0.53 | 0.53 | ||||
Book value | 48.08 | 48.63 | 45.72 | 42.92 | 42.37 | ||||
Tangible book value (non-GAAP1) | 42.06 | 42.32 | 39.11 | 42.92 | 42.37 | ||||
Balance sheet-related (at period end, unless otherwise indicated) | |||||||||
Assets | $ 7,812,185 | $ 7,864,913 | $ 7,810,193 | $ 3,696,390 | $ 3,617,579 | ||||
Average interest-earning assets | 7,273,770 | 7,238,636 | 5,994,383 | 3,377,092 | 3,332,733 | ||||
Loans (gross) | 5,672,236 | 5,574,037 | 5,616,724 | 2,118,155 | 2,087,756 | ||||
Loans (net) | 5,604,196 | 5,506,220 | 5,548,707 | 2,093,549 | 2,062,455 | ||||
Securities, available-for-sale, at fair value | 1,432,371 | 1,436,431 | 1,414,870 | 1,275,520 | 1,248,439 | ||||
Intangible assets | 57,300 | 61,598 | 65,895 | — | — | ||||
Goodwill | 32,783 | 32,783 | 32,783 | — | — | ||||
Non-interest-bearing deposits | 1,379,940 | 1,392,123 | 1,397,030 | 822,767 | 830,320 | ||||
Interest-bearing deposits | 5,135,299 | 5,208,702 | 5,242,541 | 2,167,346 | 2,171,561 | ||||
Deposits, total | 6,515,239 | 6,600,825 | 6,639,571 | 2,990,113 | 3,001,881 | ||||
Brokered deposits | 244,802 | 345,328 | 403,668 | 370,847 | 389,011 | ||||
Uninsured deposits | 1,926,724 | 1,999,403 | 1,931,786 | 700,846 | 677,308 | ||||
Short-term borrowings | 365,000 | 320,163 | 285,161 | 360,000 | 272,000 | ||||
Subordinated debt, net | 111,885 | 110,482 | 109,064 | — | — | ||||
Unused borrowing capacity4 | 4,092,378 | 2,353,963 | 2,162,112 | 704,233 | 914,980 | ||||
Total equity | 730,157 | 738,059 | 693,126 | 319,308 | 314,750 | ||||
Total common equity | 719,744 | 727,646 | 682,713 | 319,308 | 314,750 | ||||
Accumulated other comprehensive income (loss) | (95,720) | (75,758) | (100,430) | (100,954) | (103,494) | ||||
Burke & Herbert Financial Services Corp. Supplemental Information (unaudited) As of or for the three months ended (In thousands, except ratios and per share amounts) | |||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||
2024 | 2024 | 2024 | 2024 | 2023 | |||||
Income statement | |||||||||
Interest income | $ 112,793 | $ 118,526 | $ 96,097 | $ 38,745 | $ 38,180 | ||||
Interest expense | 42,083 | 45,347 | 36,332 | 16,614 | 15,876 | ||||
Non-interest income | 11,791 | 10,616 | 9,505 | 4,254 | 4,824 | ||||
Total revenue (non-GAAP1) | 82,501 | 83,795 | 69,270 | 26,385 | 27,128 | ||||
Non-interest expense | 61,410 | 50,826 | 64,432 | 21,165 | 22,300 | ||||
Pretax, pre-provision earnings (non-GAAP1) | 21,091 | 32,969 | 4,838 | 5,220 | 4,828 | ||||
Provision for (recapture of) credit losses | 833 | 147 | 23,910 | (670) | (750) | ||||
Income (loss) before income taxes | 20,258 | 32,822 | (19,072) | 5,890 | 5,578 | ||||
Income tax expense (benefit) | 465 | 5,200 | (2,153) | 678 | 500 | ||||
Net income (loss) | 19,793 | 27,622 | (16,919) | 5,212 | 5,078 | ||||
Preferred stock dividends | 225 | 225 | 225 | — | — | ||||
Net income (loss) applicable to common shares | $ 19,568 | $ 27,397 | $ (17,144) | $ 5,212 | $ 5,078 | ||||
Ratios | |||||||||
Return on average assets (annualized) | 1.00 % | 1.40 % | (1.06) % | 0.58 % | 0.56 % | ||||
Return on average equity (annualized) | 10.49 | 15.20 | (12.44) | 6.67 | 7.30 | ||||
Net interest margin (non-GAAP1) | 3.91 | 4.07 | 4.06 | 2.68 | 2.70 | ||||
Efficiency ratio | 74.44 | 60.66 | 93.02 | 80.22 | 82.20 | ||||
Loan-to-deposit ratio | 87.06 | 84.44 | 84.59 | 70.84 | 69.55 | ||||
Common Equity Tier 1 (CET1) capital ratio2 | 11.51 | 11.40 | 10.91 | 16.56 | 16.85 | ||||
Total risk-based capital ratio2 | 14.55 | 14.45 | 13.91 | 17.54 | 17.88 | ||||
Leverage ratio2 | 9.78 | 9.66 | 9.04 | 11.36 | 11.31 | ||||
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 | ||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||
2024 | 2024 | 2024 | 2024 | 2023 | ||||||
Net income (loss) applicable to common shares | $ 19,568 | $ 27,397 | $ (17,144) | $ 5,212 | $ 5,078 | |||||
Add back significant items (tax effected): | ||||||||||
Merger-related | 7,069 | 2,449 | 18,806 | 537 | 1,141 | |||||
Day 2 non-PCD Provision | — | — | 23,305 | — | — | |||||
Total significant items | 7,069 | 2,449 | 42,111 | 537 | 1,141 | |||||
Operating net income | $ 26,637 | $ 29,846 | $ 24,967 | $ 5,749 | $ 6,219 | |||||
Weighted average dilutive shares | 15,038,442 | 15,040,145 | 12,262,979 | 7,527,489 | 7,508,289 | |||||
Adjusted diluted EPS5 | $ 1.77 | $ 1.98 | $ 2.04 | $ 0.76 | $ 0.83 | |||||
Non-interest expense | $ 61,410 | $ 50,826 | $ 64,432 | $ 21,165 | $ 22,300 | |||||
Remove significant items: | ||||||||||
Merger-related | 8,948 | 3,101 | 23,805 | 680 | 1,444 | |||||
Total significant items | $ 8,948 | $ 3,101 | $ 23,805 | $ 680 | $ 1,444 | |||||
Adjusted non-interest expense | $ 52,462 | $ 47,725 | $ 40,627 | $ 20,485 | $ 20,856 | |||||
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.
Total Revenue (non-GAAP1) | ||||||||||
For the three months ended | ||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||
2024 | 2024 | 2024 | 2024 | 2023 | ||||||
Interest income | $ 112,793 | $ 118,526 | $ 96,097 | $ 38,745 | $ 38,180 | |||||
Interest expense | 42,083 | 45,347 | 36,332 | 16,614 | 15,876 | |||||
Non-interest income | 11,791 | 10,616 | 9,505 | 4,254 | 4,824 | |||||
Total revenue (non-GAAP1) | $ 82,501 | $ 83,795 | $ 69,270 | $ 26,385 | $ 27,128 | |||||
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.
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 | ||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||
2024 | 2024 | 2024 | 2024 | 2023 | ||||||
Income (loss) before taxes | $ 20,258 | $ 32,822 | $ (19,072) | $ 5,890 | $ 5,578 | |||||
Provision for (recapture of) credit losses | 833 | 147 | 23,910 | (670) | (750) | |||||
Pretax, pre-provision earnings (non-GAAP1) | $ 21,091 | $ 32,969 | $ 4,838 | $ 5,220 | $ 4,828 | |||||
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.
Tangible Common Equity (non-GAAP1) | ||||||||||
For the three months ended | ||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||
2024 | 2024 | 2024 | 2024 | 2023 | ||||||
Common shareholders' equity | $ 719,744 | $ 727,646 | $ 682,713 | $ 319,308 | $ 314,750 | |||||
Less: | ||||||||||
Intangible assets | 57,300 | 61,598 | 65,895 | — | — | |||||
Goodwill | 32,783 | 32,783 | 32,783 | — | — | |||||
Tangible common equity (non-GAAP1) | $ 629,661 | $ 633,265 | $ 584,035 | $ 319,308 | $ 314,750 | |||||
Shares outstanding at end of period | 14,969,104 | 14,963,003 | 14,932,169 | 7,440,025 | 7,428,710 | |||||
Tangible book value per common share | $ 42.06 | $ 42.32 | $ 39.11 | $ 42.92 | $ 42.37 | |||||
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.
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 | ||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||
2024 | 2024 | 2024 | 2024 | 2023 | ||||||
Net interest income | $ 70,710 | $ 73,179 | $ 59,765 | $ 22,131 | $ 22,304 | |||||
Taxable-equivalent adjustments | 858 | 847 | 688 | 362 | 365 | |||||
Net interest income (Fully Taxable-Equivalent - FTE) | $ 71,568 | $ 74,026 | $ 60,453 | $ 22,493 | $ 22,669 | |||||
Average interest-earning assets | $ 7,273,770 | $ 7,238,636 | $ 5,994,383 | $ 3,377,092 | $ 3,332,733 | |||||
Net interest margin (non-GAAP1) | 3.91 % | 4.07 % | 4.06 % | 2.68 % | 2.70 % | |||||
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) December 31, 2024, are estimated. (3) The full year 2023 Consolidated Income Statement is audited (4) Includes Federal Home Loan Bank, Borrower-in-Custody (BIC), and correspondent bank availability (5) 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. |
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SOURCE Burke & Herbert Financial Services Corp.
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