false000196433300019643332024-10-252024-10-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

October 25, 2024
Date of Report (date of earliest event reported)
___________________________________
Burke & Herbert Financial Services Corp.
(Exact name of registrant as specified in its charter)
___________________________________

Virginia
(State or other jurisdiction of
incorporation or organization)
001-41633
(Commission File Number)
92-0289417
(I.R.S. Employer Identification Number)
100 S. Fairfax Street
Alexandria, VA 22314
(Address of principal executive offices and zip code)
(703) 666-3555
(Registrant's telephone number, including area code)
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common stock, par value $0.50BHRBThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 - Results of Operations and Financial Condition.
On October 25, 2024, Burke & Herbert Financial Services Corp. (the "Company") issued a press release announcing its results of operations and financial condition for the quarter ended September 30, 2024. A copy of the press release is included as Exhibit 99.1 to this report.
Item 7.01 - Regulation FD Disclosure
The management of Burke & Herbert Financial Services Corp. anticipates meetings with investors during 2024. A copy of presentation materials will be made available on the investor relations section of the Company's website (https://www.burkeandherbertbank.com) and is furnished as exhibit 99.2 to this report. All information included in this presentation is presented as of the dates indicated, and the Company does not assume any obligation to correct or update such information in the future. The Company disclaims any inferences regarding the materiality of such information which otherwise may arise as a result of it furnishing such information under Item 7.01 of this Form 8-K.

In accordance with General Instruction B.2 of Form 8-K, the information furnished in this Item 7.01, including Exhibit 99.2, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject to the liabilities of Section 18 of the Exchange Act.
Item 8.01 - Other Events
On October 25, 2024, the Company announced its Board of Directors declared a regular quarterly cash dividend on the Company's common stock of $0.55 per share, payable on December 2, 2024, to shareholders of record as of the close of business on November 15, 2024.

Item 9.01 - Financial Statements and Exhibits
(d) The following exhibits are being filed herewith:

Exhibit No.Description
99.1
99.2
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 25th day of October, 2024.



Burke & Herbert Financial Services Corp.
By:
/s/ Roy E. Halyama
Name:
Roy E. Halyama
Title:
Executive Vice President, CFO

bh_logoxsubbrandxfinanciala.jpg

Burke & Herbert Financial Services Corp. Announces Third Quarter 2024 Results and Increases Common Stock Dividend

For Immediate Release
October 25, 2024

Alexandria, VA – Burke & Herbert Financial Services Corp. (the “Company” or “Burke & Herbert”) (Nasdaq: BHRB) reported financial results for the quarter ended September 30, 2024. In addition, at its meeting on October 24, 2024, the board of directors declared a $0.55 per share regular cash dividend to be paid on December 2, 2024, to shareholders of record as of the close of business on November 15, 2024, representing a 3.8% increase from the prior quarter dividend.

Q3 2024 Highlights

•Financial results reflect a full quarter following 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.

•Net income applicable to common shares of $27.4 million; adjusted (non-GAAP1) operating net income applicable to common shares of $29.8 million.

•Earnings per diluted common share (“EPS”) of $1.82; adjusted (non-GAAP1) diluted EPS of $1.98.

•Net interest income for the quarter was $73.2 million; net interest income on a fully taxable equivalent basis (non-GAAP1) for the quarter was $74.0 million.

•Net interest margin on a fully taxable equivalent basis (non-GAAP1) for the quarter was 4.07%.

•Non-interest expense for the quarter was $50.8 million; adjusted (non-GAAP1) non-interest expense for the quarter was $47.7 million.

•The balance sheet remains strong with ample liquidity. Total liquidity, including all available borrowing capacity with cash and cash equivalents, totaled $2.6 billion at the end of the third quarter.

•Ending total gross loans of $5.6 billion and ending total deposits of $6.6 billion; ending loan-to-deposit ratio of 84.4%.

•Asset quality remains stable across the loan portfolio with adequate reserves.

•The Company continues to be well-capitalized, ending the quarter with 11.3%2 Common Equity Tier 1 capital to risk-weighted assets, 14.3%2 Total risk-based capital to risk-weighted assets, and a leverage ratio of 9.6%2.

From David P. Boyle, Company Chair and Chief Executive Officer

"Our results for the third quarter and the increase in the dividend demonstrate the financial benefits of the merger with Summit and are in line with our expectations. In addition, the team is working diligently toward the planned systems integration in the fourth quarter, which should lead to additional efficiencies and position us to deliver even greater value for our shareholders.”




(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) September 30, 2024 are estimated.
1
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Results of Operations

Third Quarter 2024

The Company reported third quarter 2024 net income applicable to common shares of $27.4 million, or $1.82 per diluted common share.

Included in the third quarter were pre-tax charges of $3.1 million of expenses related to the merger with Summit. Excluding these items from the current quarter on a tax effected basis, adjusted (non-GAAP1) operating net income was $29.8 million, or $1.98 per diluted share.

•Period-end average total gross loans were $5.6 billion at September 30, 2024, up from $4.5 billion at June 30, 2024, primarily due to results that reflect a full quarter after the merger completion.

•Period-end average total deposits were $6.6 billion at September 30, 2024, up from $5.4 billion at June 30, 2024, primarily due to results that reflect a full quarter after the merger completion.

•Net interest income increased to $73.2 million in the third quarter of 2024 compared to $59.8 million in the second quarter of 2024, primarily due to results that reflect a full quarter of combined income after the merger completion.

•Net interest margin on a fully taxable equivalent basis (non-GAAP1) increased to 4.07% versus 4.06% in the second quarter of 2024.

•Accretion income on loans during the quarter was $15.4 million and the amortization expense impact on interest expense was $3.8 million, or 16.0 bps of net interest margin in the third quarter of 2024.

•The cost of total deposits was 2.38% in the third quarter of 2024, compared to 2.25% in the second quarter of 2024.

•The Company recorded a provision expense on loans in the third quarter of 2024 of $85.0 thousand, reflecting relatively stable asset quality.

•The allowance for credit losses at September 30, 2024, was $67.8 million, or 1.2% of total loans.

•Total non-interest income for the third quarter of 2024 was $10.6 million, an increase of $1.1 million from the second quarter of 2024, primarily due to results that reflect a full quarter of combined income after the merger completion.

•Non-interest expense for the third quarter of 2024 was $50.8 million and included $3.1 million of merger-related charges.

Regulatory capital ratios2

The Company continues to be well-capitalized with capital ratios that are above regulatory requirements. As of September 30, 2024, our Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were 11.3%2 and 14.3%2, respectively, and significantly above the well-capitalized requirements of 6.5% and 10%, respectively. The leverage ratio was 9.6%2 compared to a 5% level to be considered well-capitalized.

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 September 30, 2024, the Bank’s Common Equity Tier 1 capital to risk-weighted asset and Total risk-



2
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based capital to risk-weighted asset ratios were 13.0%2 and 14.1%2, respectively, and significantly above the well-capitalized requirements. In addition, the Bank’s leverage ratio of 10.6%2 is considered to be well-capitalized.

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 Washington, D.C. metropolitan area. With over 75 branches across Delaware, Kentucky, Maryland, Virginia, and West Virginia, Burke & Herbert Bank & Trust Company offers a full range of business and personal financial solutions designed to meet customers’ banking, borrowing, and investment needs. Learn more at investor.burkeandherbertbank.com.

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, and other reports the Company files with the SEC.



3
Burke & Herbert Financial Services Corp.
Consolidated Statements of Income (unaudited)
(In thousands)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Interest income
Taxable loans, including fees$103,682 $26,425 $213,400 $74,485 
Tax-exempt loans, including fees48 — 81 — 
Taxable securities10,076 8,909 29,949 28,130 
Tax-exempt securities3,135 1,376 7,052 4,243 
Other interest income1,585 562 2,886 1,858 
Total interest income118,526 37,272 253,368 108,716 
Interest expense
Deposits39,441 11,277 82,745 26,708 
Short-term borrowings3,080 3,078 10,806 10,495 
Subordinated debt2,798 — 4,658 — 
Other interest expense28 28 84 58 
Total interest expense45,347 14,383 98,293 37,261 
Net interest income73,179 22,889 155,075 71,455 
Credit loss expense - loans85 200 19,515 1,034 
Credit loss expense (recapture) - off-balance sheet credit exposures62 35 3,872 (70)
Total provision for credit losses147 235 23,387 964 
Net interest income after credit loss expense73,032 22,654 131,688 70,491 
Non-interest income
Fiduciary and wealth management2,352 1,354 5,982 3,996 
Service charges and fees5,453 1,583 11,147 4,959 
Net gains (losses) on securities— (1)613 (112)
Income from company-owned life insurance1,330 589 2,799 1,720 
Other non-interest income1,481 764 3,834 2,565 
Total non-interest income10,616 4,289 24,375 13,128 
Non-interest expense
Salaries and wages20,858 9,867 51,271 29,283 
Pensions and other employee benefits4,678 2,242 12,346 7,116 
Occupancy3,412 1,462 7,947 4,464 
Equipment rentals, depreciation and maintenance4,699 1,435 18,643 4,231 
Other operating17,179 7,417 46,216 19,042 
Total non-interest expense50,826 22,423 136,423 64,136 
Income before income taxes32,822 4,520 19,640 19,483 
Income tax expense 5,200 464 3,725 1,869 
Net income27,622 4,056 15,915 17,614 
Preferred stock dividends225 — 450 — 
Net income applicable to common shares$27,397 $4,056 $15,465 $17,614 



4
Burke & Herbert Financial Services Corp.
Consolidated Balance Sheets
(In thousands)
September 30, 2024December 31, 2023
(Unaudited)(Audited)
Assets
Cash and due from banks$44,902 $8,896 
Interest-earning deposits with banks246,863 35,602 
Cash and cash equivalents291,765 44,498 
Securities available-for-sale, at fair value1,436,431 1,248,439 
Restricted stock, at cost16,832 5,964 
Loans held-for-sale, at fair value4,216 1,497 
Loans5,574,037 2,087,756 
Allowance for credit losses(67,817)(25,301)
Net loans5,506,220 2,062,455 
Other real estate owned2,576 — 
Premises and equipment, net134,770 61,128 
Accrued interest receivable32,791 15,895 
Intangible assets61,598 — 
Goodwill32,783 — 
Company-owned life insurance182,380 94,159 
Other assets162,551 83,544 
Total Assets
$7,864,913 $3,617,579 
Liabilities and Shareholders’ Equity
Liabilities
Non-interest-bearing deposits$1,392,123 $830,320 
Interest-bearing deposits5,208,702 2,171,561 
Total deposits6,600,825 3,001,881 
Short-term borrowings320,163 272,000 
Subordinated debentures, net93,532 — 
Subordinated debentures owed to unconsolidated subsidiary trusts16,950 — 
Accrued interest and other liabilities95,384 28,948 
Total Liabilities 7,126,854 3,302,829 
Shareholders’ Equity
Preferred stock and surplus10,413 — 
Common stock7,767 4,000 
Common stock, additional paid-in capital400,377 14,495 
Retained earnings422,844 427,333 
Accumulated other comprehensive income (loss)(75,758)(103,494)
Treasury stock(27,584)(27,584)
Total Shareholders’ Equity 738,059 314,750 
Total Liabilities and Shareholders’ Equity $7,864,913 $3,617,579 




5
Burke & Herbert Financial Services Corp.
Details of Net Interest Margin (unaudited)
For the three months ended
Details of Net Interest Margin - Yield Percentages
September 30June 30March 31December 31September 30
20242024202420232023
Interest-earning assets:
Loans:
Taxable loans
7.34 %7.33 %5.41 %5.24 %5.15 %
Tax-exempt loans
5.63 5.55 — — — 
Total loans
7.34 7.33 5.41 5.24 5.15 
Interest-earning deposits and fed funds sold
3.43 3.54 3.82 4.35 4.50 
Securities:
Taxable securities
4.05 4.48 3.63 3.73 3.57 
Tax-exempt securities
3.58 3.05 2.67 2.64 2.63 
Total securities
3.91 4.05 3.43 3.50 3.37 
Total interest-earning assets6.56 %6.49 %4.66 %4.59 %4.47 %
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
3.19 %3.00 %0.63 %0.61 %0.56 %
Savings
1.43 1.53 1.97 1.97 1.82 
Time
4.82 4.55 4.12 3.97 3.73 
Total interest-bearing deposits
3.02 2.90 2.41 2.31 2.09 
Borrowings:
Short-term borrowings
4.06 4.38 4.82 4.76 4.69 
Subordinated debt borrowings and other
10.16 10.30 — — — 
Total interest-bearing liabilities
3.21 %3.14 %2.71 %2.59 %2.37 %
Taxable-equivalent net interest spread
3.35 3.35 1.95 2.00 2.10 
Benefit from use of non-interest-bearing deposits0.72 0.71 0.73 0.70 0.66 
Taxable-equivalent net interest margin (non-GAAP1)
4.07 %4.06 %2.68 %2.70 %2.76 %

6
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
September 30June 30March 31December 31September 30
20242024202420232023
Interest-earning assets:
Loans:
Taxable loans
$5,621,531 $4,481,993 $2,085,826 $2,069,738 $2,034,275 
Tax-exempt loans
4,310 3,041 — — — 
Total loans
5,625,841 4,485,034 2,085,826 2,069,738 2,034,275 
Interest-earning deposits and fed funds sold
175,265 94,765 41,692 40,524 49,501 
Securities:
Taxable securities
996,749 988,492 989,875 961,396 991,170 
Tax-exempt securities
440,781 426,092 259,699 261,075 262,336 
Total securities
1,437,530 1,414,584 1,249,574 1,222,471 1,253,506 
Total interest-earning assets$7,238,636 $5,994,383 $3,377,092 $3,332,733 $3,337,282 
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
$2,144,567 $1,587,914 $489,779 $514,760 $537,644 
Savings
1,725,387 1,480,985 922,732 920,600 952,001 
Time
1,328,076 1,141,758 745,945 711,575 654,952 
Total interest-bearing deposits
5,198,030 4,210,657 2,158,456 2,146,935 2,144,597 
Borrowings:
Short-term borrowings
304,849 376,063 307,446 282,426 262,521 
Subordinated debt borrowings and other
109,557 72,643 — — — 
Total interest-bearing liabilities
$5,612,436 $4,659,363 $2,465,902 $2,429,361 $2,407,118 
Non-interest-bearing deposits
$1,389,134 $1,207,443 $812,199 $852,120 $860,983 
7
Burke & Herbert Financial Services Corp.
Supplemental Information (unaudited)
As of or for the three months ended
(In thousands, except ratios and per share amounts)


September 30June 30March 31December 31September 30
20242024202420232023
Per common share information
Basic earnings (loss)
$1.83 $(1.41)$0.70 $0.68 $0.55 
Diluted earnings (loss)
1.82 (1.41)0.69 0.67 0.55 
Cash dividends0.53 0.53 0.53 0.53 0.53 
Book value48.63 45.72 42.92 42.37 36.46 
Tangible book value (non-GAAP1)
42.32 39.11 42.92 42.37 36.46 
Balance sheet-related (at period end, unless otherwise indicated)
Assets$7,864,913 $7,810,193 $3,696,390 $3,617,579 $3,585,188 
Average interest-earning assets
7,238,636 5,994,383 3,377,092 3,332,733 3,337,282 
Loans (gross)5,574,037 5,616,724 2,118,155 2,087,756 2,070,616 
Loans (net)5,506,220 5,548,707 2,093,549 2,062,455 2,044,505 
Securities, available-for-sale, at fair value1,436,431 1,414,870 1,275,520 1,248,439 1,224,395 
Intangible assets61,598 65,895 — — — 
Goodwill32,783 32,783 — — — 
Non-interest-bearing deposits1,392,123 1,397,030 822,767 830,320 853,385 
Interest-bearing deposits5,208,702 5,242,541 2,167,346 2,171,561 2,132,233 
Deposits, total6,600,825 6,639,571 2,990,113 3,001,881 2,985,618 
Brokered deposits345,328 403,668 370,847 389,011 389,018 
Uninsured deposits1,999,403 1,931,786 700,846 677,308 670,735 
Short-term borrowings320,163 285,161 360,000 272,000 299,000 
Subordinated debt, net110,482 109,064 — — — 
Unused borrowing capacity3
2,353,963 2,162,112 704,233 914,980 883,525 
Total equity738,059 693,126 319,308 314,750 270,819 
Total common equity727,646 682,713 319,308 314,750 270,819 
Accumulated other comprehensive income (loss)(75,758)(100,430)(100,954)(103,494)(146,159)




(3) Includes Federal Home Loan Bank, Borrower-in-Custody (BIC), and correspondent bank availability.



8
Burke & Herbert Financial Services Corp.
Supplemental Information (unaudited)
As of or for the three months ended
(In thousands, except ratios and per share amounts)


September 30June 30March 31December 31September 30
20242024202420232023
Income statement
Interest income$118,526 $96,097 $38,745 $38,180 $37,272 
Interest expense45,347 36,332 16,614 15,876 14,383 
Non-interest income10,616 9,505 4,254 4,824 4,289 
Total revenue (non-GAAP1)
83,795 69,270 26,385 27,128 27,178 
Non-interest expense50,826 64,432 21,165 22,300 22,423 
Pretax, pre-provision earnings (non-GAAP1)
32,969 4,838 5,220 4,828 4,755 
Provision for (recapture of) credit losses147 23,910 (670)(750)235 
Income (loss) before income taxes
32,822 (19,072)5,890 5,578 4,520 
Income tax expense (benefit)
5,200 (2,153)678 500 464 
Net income (loss)27,622 (16,919)5,212 5,078 4,056 
Preferred stock dividends225 225 — — — 
Net income (loss) applicable to common shares
$27,397 $(17,144)$5,212 $5,078 $4,056 
Ratios
Return on average assets (annualized)1.40 %(1.06)%0.58 %0.56 %0.45 %
Return on average equity (annualized)15.20 (12.44)6.67 7.30 5.60 
Net interest margin (non-GAAP1)
4.07 4.06 2.68 2.70 2.76 
Efficiency ratio60.66 93.02 80.22 82.20 82.50 
Loan-to-deposit ratio84.44 84.59 70.84 69.55 69.35 
Common Equity Tier 1 (CET1) capital ratio2
11.30 10.91 16.56 16.85 16.44 
Total risk-based capital ratio2
14.34 13.91 17.54 17.88 17.48 
Leverage ratio2
9.59 9.04 11.36 11.31 11.32 


9
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
September 30June 30March 31December 31September 30
20242024202420232023
Net income (loss) applicable to common shares$27,397 $(17,144)$5,212 $5,078 $4,056 
Add back significant items (tax effected):
Listing-related— — — — — 
Merger-related2,449 18,806 537 1,141 1,592 
Day 2 non-PCD Provision— 23,305 — — — 
Total significant items2,449 42,111 537 1,141 1,592 
Operating net income$29,846 $24,967 $5,749 $6,219 $5,648 
Weighted average dilutive shares15,040,145 12,262,979 7,527,489 7,508,289 7,499,278 
Adjusted diluted EPS4
$1.98 $2.04 $0.76 $0.83 $0.75 
Non-interest expense$50,826 $64,432 $21,165 $22,300 $22,423 
Remove significant items:
Listing-related— — — — — 
Merger-related3,101 23,805 680 1,444 2,015 
Total significant items$3,101 $23,805 $680 $1,444 $2,015 
Adjusted non-interest expense$47,725 $40,627 $20,485 $20,856 $20,408 

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 listing-related, 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 listing-related and 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
September 30June 30March 31December 31September 30
20242024202420232023
Interest income$118,526 $96,097 $38,745 $38,180 $37,272 
Interest expense45,347 36,332 16,614 15,876 14,383 
Non-interest income10,616 9,505 4,254 4,824 4,289 
Total revenue (non-GAAP1)
$83,795 $69,270 $26,385 $27,128 $27,178 
(4) 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.



10
Burke & Herbert Financial Services Corp.
Non-GAAP Reconciliations (unaudited)
(In thousands, except ratios and per share amounts)
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.

Pretax, Pre-Provision Earnings (non-GAAP1)
For the three months ended
September 30June 30March 31December 31September 30
20242024202420232023
Income (loss) before taxes
$32,822 $(19,072)$5,890 $5,578 $4,520 
Provision for (recapture of) credit losses147 23,910 (670)(750)235 
Pretax, pre-provision earnings (non-GAAP1)
$32,969 $4,838 $5,220 $4,828 $4,755 
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
September 30June 30March 31December 31September 30
20242024202420232023
Common shareholders' equity$727,646 $682,713 $319,308 $314,750 $270,819 
Less:
Intangible assets61,598 65,895 — — — 
Goodwill32,783 32,783 — — — 
Tangible common equity (non-GAAP1)
$633,265 $584,035 $319,308 $314,750 $270,819 
Shares outstanding at end of period14,963,003 14,932,169 7,440,025 7,428,710 7,428,710 
Tangible book value per common share$42.32 $39.11 $42.92 $42.37 $36.46 

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.

11
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
September 30June 30March 31December 31September 30
20242024202420232023
Net interest income$73,179 $59,765 $22,131 $22,304 $22,889 
Taxable-equivalent adjustments847 688 362 365 366 
Net interest income (Fully Taxable-Equivalent - FTE)$74,026 $60,453 $22,493 $22,669 $23,255 
Average interest-earning assets
$7,238,636 $5,994,383 $3,377,092 $3,332,733 $3,337,282 
Net interest margin (non-GAAP1)
4.07 %4.06 %2.68 %2.70 %2.76 %
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 21%. Net interest income shown elsewhere in this presentation is GAAP net interest income.
12
1 3Q24 Update (Nasdaq: BHRB) October 2024 Please Note: Third quarter 2024 financial results reflect a full quarter following the May 3, 2024, completion of the merger of Summit Financial Group, Inc. with and into Burke & Herbert Financial Services Corp. and the merger of Summit Community Bank, Inc. with and into Burke & Herbert Bank & Trust Company.

 
2 Cautionary Statement Regarding Forward-Looking Information This presentation 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 Report on Form 10-Q for the quarter ended March 31, 2024, June 30, 2024, and other reports the Company files with the SEC. Non-GAAP Financial Measures This presentation contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures may include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of the Company’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about the Company to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

 
3 Introduction • Thank you for your interest in Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company. A quintessential community banking institution, we are headquartered in Old Town Alexandria, Virginia and have served the banking, borrowing and investing needs of generations of businesses, organizations, families and individuals since 1852. • As a true community bank, we are deeply tied to the people, neighborhoods and institutions where we live and work. Our employees form a diverse, dedicated, close- knit team that upholds a culture of customer service and forges strong and lasting relationships with our customers and shared communities. We are selective in our hiring, proud of the caliber of our people, and encourage a collegial environment in which each individual feels valued. • On May 3, 2024, we merged with Summit Financial Group, Inc. (Summit), creating an $8 billion financial institution with more than 75 branches across Virginia, West Virginia, Maryland, Delaware, and Kentucky, with more than 800 employees serving our communities.

 
4 Business Model • Our business model is built on customer service - Being a trusted advisor by understanding our customers’ financial goals and offering our diverse products and services to help them achieve financial prosperity • Our approach is concentrated on growing and deepening relationships across our businesses that meet our risk/return measures • We are focused on our strategic priorities which are designed to enhance value over the long term - Profitably expanding our market share - Deepening customer relationships by delivering fee-based financial solutions - Leveraging technology to create efficiencies that help us better serve customers

 
5 Strategic Rationale for the Merger with Summit 1 2 3 4 5 Strategically Compelling: Strong pro forma profitability, complementary strengths and enhanced strategic positioning, particularly in Virginia, West Virginia, and Maryland Scale: Created an ~$8 billion bank with >75 branch locations across an attractive 5- state Mid-Atlantic and Southeast footprint Management Strength: Culturally compatible organizations with combined management depth supportive of growth to $10 billion of assets and beyond Investment in Franchise: >$115 million combined earnings stream and strong capital position provide runway for future investment and growth Balance Sheet Flexibility: >$600 million of marked securities able to be converted to immediate liquidity with no negative capital implications

 
6 An Attractive Footprint  Population: 137k  Pop. CAGR: 0.70%   Proj. Pop. CAGR: 0.57%   Median HHI: $70k  Proj. Median HHI: $81k Harrisonburg, VA Eastern Shore of MD (2)  Population: 70k  Pop. CAGR: 0.24%  Median HHI: $75k   Proj. Median HHI: $81k Charleston, WV  Population: 252k  Median HHI: $52k  Proj. Median HHI: $60k Hagerstown-Martinsburg, MD-WV  Population: 302k  Pop. CAGR: 0.88%   Proj. Pop. CAGR: 0.70%   Median HHI: $68k  Proj. Median HHI: $74k  Population: 6.44mm  Pop. CAGR: 1.01%   Proj. Pop. CAGR: 0.54%   Median HHI: $118k   Proj. Median HHI: $132k  Greater Washington D.C. Lexington-Fayette, KY  Population: 523k  Pop. CAGR: 0.79%   Proj. Pop. CAGR: 0.52%   Proj. Median HHI: $77k  Population: 147k  Pop. CAGR: 1.04%   Proj. Pop. CAGR: 0.95%   Median HHI: $82k   Proj. Median HHI: $93k  Winchester, VA-WV Huntington-Ashland, WV-KY-OH  Population: 354k  Median HHI: $54k  Proj. Median HHI: $59k Salisbury, MD-DE  Population: 436k  Pop. CAGR: 1.19%   Proj. Pop. CAGR: 1.03%   Median HHI: $68k  Proj. Median HHI: $74k Fastest Growing Metro in VA Horse Capital of the World Capital of the U.S. Capital of West Virginia Indicates higher than U.S. National Average (1) Source: S&P Global Market Intelligence. Current population and HHI metrics are for the year 2023. Population CAGR is based on through 2023; Projected population and HHI CAGRs are based on 2023 actual through 2028 projected (1) U.S. National Benchmark defined as the median for HHI metrics and as the growth rate pertaining to the total U.S. population for population CAGR metrics; U.S. population CAGR is 0.62%; U.S. projected population CAGR is 0.42%; U.S. median HHI is $74k; U.S. projected HHI is $83k (2) Eastern Shore of MD is made up of the Easton, MD and Cambridge, MD MSAs; Median HHI calculated using a weighted average based on pro forma deposits

 
7 Merger Announcement Estimates vs. Updated Estimates (in millions) Estimate at Aug. 24, 20231 merger announcement Estimate at May 3, 2024 merger closing Day 2 – CECL reserve $16.6 $29.5 PCD loan CECL mark 23.9 23.5 Gross CECL credit mark 40.5 53.0 Accretable loan mark 122.3 172.5 Core deposit intangible 66.0 68.8 Time deposit mark 15.5 7.1 Sub-debt mark 24.2 13.7 Preferred stock mark 5.6 4.5 Annualized cost savings goal 20.0 20.0 Total merger costs 57.0 42.0 Preliminary goodwill creation3 27.6 32.8 Estimate at Aug. 24, 20231 June 30, 2024 Sept. 30, 2024 Tangible book value per common share2 $34.57 $39.11 $42.32 Tangible common equity / tangible assets2 6.4% 7.6% 8.2% Leverage ratio3 8.1% 9.0% 9.6% Common equity tier 1 ratio3 10.4% 10.9% 11.3% Tier 1 capital ratio3 10.6% 11.3% 11.7% Total capital ratio3 12.5% 13.9% 14.3% (1) Reflected estimates assuming December 31, 2023, close. Actual closing was May 3, 2024. (2) Non-GAAP measure. See the appendix for further information. (3) September 30, 2024, is estimated. • Gross CECL credit mark higher primarily due to higher loan balances at close and broader macroeconomic trends • Integration efforts along with the accretion / amortization of marks provide positively trending earn-back on key capital ratios and per share metrics • Expected annualized cost savings delayed due to scheduled conversion later in 2024

 
8 3Q24 Balance Sheet Highlights • Repositioned balance sheet post closing - Sold approximately $366 million of securities - Relatively neutral interest rate position • Our objective is to build and maintain a fortress balance sheet - Maintain credit discipline through the cycle - Ensure proper allowances for credit losses - Stay liquid and have multiple sources of liquidity - Manage capital for the long term - Stress test the balance sheet for severe shocks - Continually improve risk, governance and controls - Operate an effective risk-adjusted return culture - Derive revenue from multiple sources Balance Sheet ($ in 000s) Sept. 30, 2024 June 30, 2024 Assets Cash and Cash Equivalents $ 291,765 $ 211,920 Investments 1,453,263 1,430,039 Loans Held for Sale 4,216 3,268 Gross Loans, (excluding HFS loans) 5,574,037 5,616,724 Allowance for Loan Losses (67,817) (68,017) Net Loans 5,506,220 5,548,707 Goodwill and Other Intangibles 94,381 98,678 Other Assets 515,068 517,581 Total Assets 7,864,913 7,810,193 Liabilities Total Deposits 6,600,825 6,639,571 Short-term Borrowings 320,163 285,161 Subordinated Debentures 110,482 109,064 Other Liablities 95,384 83,271 Total Liabilities 7,126,854 7,117,067 Shareholders' Equity Common Stock 7,767 7,752 Preferred Stock 10,413 10,413 Additional Paid-in Capital 400,377 399,553 Retained Earnings 422,844 403,422 Accumulated Other Comprehensive Income (75,758) (100,430) Treasury Stock (27,584) (27,584) Total Shareholders' Equity 738,059 693,126 Total Liabilities & Shareholders' Equity $ 7,864,913 $ 7,810,193

 
9 • Net interest income (non-FTE) between $141.0 million and $149.0 million • Noninterest income between $20.5 million and $22.0 million • Provision expense up to $5.0 million • Core noninterest expense2 (non-GAAP) between $100 million and $104 million • Merger-related expense between $15.0 million and $17.0 million • Effective tax rate between 17.0% and 18.5% • Estimated fully diluted weighted average shares of 15.1 million 3Q24 Income Statement Second Half 2024 Expectations Income Statement ($ in 000s) Sept. 30, 2024 3Q24 Operating Net Income1 Sept. 30, 2024 (1) Non-GAAP measure. See the appendix for further information. (2) Core noninterest expense excludes merger-related expense. Interest income 3 months ended 9 months ended Loans $ 103,730 $ 213,481 Securities 13,211 37,001 Other Interest Income 1,585 2,886 Total Interest Income 118,526 253,368 Interest expense Deposits 39,441 82,745 Borrowed Funds 3,080 10,806 Subordinated Debt and other interest 2,826 4,742 Total Interest Expense 45,347 98,293 Net Interest Income 73,179 155,075 Provision expense 147 23,387 Net Interest Income after Provision 73,032 131,688 Non-interest income Fiduciary and wealth management 2,352 5,982 Service charges and fees 5,453 11,147 Other non-interest income 2,811 7,246 Total Non-interest Income 10,616 24,375 Non-interest expense Salaries and other benefits 25,536 63,617 Occupancy 3,412 7,947 Other operating 21,878 64,859 Total Non-interest Expense 50,826 136,423 Income tax expense 5,200 3,725 Net income 27,622 15,915 Preferred stock dividends 225 450 Net income applicable to common shares $ 27,397 $ 15,465 Net Income (loss) applicable to common shares $ 27,397 Addback significant items (tax effected): Merger-related 2,449 Day 2 Non-PCD Provision - Total significant items 2,449 Operating net income $ 29,846 Weighted average dilutive shares 15,040,145 Adjusted diluted EPS $ 1.98 Non-interest expense $ 50,826 Remove significant items: Merger-related 3,101 Total significant items 3,101 Adjusted non-interest expense $ 47,725

 
10 Loan Portfolio as of 3Q24 ($ in 000s) Residential $1,197,245 Owner-Occupied CRE $637,175 Commercial & Industrial $562,653 AD&C $447,449 Consumer $202,570 Commercial Real Estate $2,526,945 Portfolio $5,574,037 Loan Segment Adjustable Rate Fixed Rate Commercial Real Estate $ 1,049,061 $ 1,477,884 Residential 599,796 597,449 Owner-occupied CRE 341,141 296,034 AD&C 342,411 105,038 Commercial & Industrial 409,899 152,754 Consumer 124,751 77,819 $ 2,867,059 $ 2,706,978 • The commercial real estate (CRE) portfolio is well-diversified across asset classes - CRE as a percentage of bank total risk-based capital is estimated at 333% - AD&C as a percentage of bank total risk-based capital is estimated at 50% • The CRE loan portfolio geographic footprint is spread across the West Virginia and greater DC / Maryland / Virginia (DMV) area with minimal office building exposure within Washington D.C. • In line with our overall strategy, we are focused on commercial & industrial loan growth and greater portfolio granularity Commercial Real Estate Category $ by Asset Class % by Asset Class Retail Real Estate $ 562,666 22% Multi-Family 496,257 20% Office Bldgs/Condos 407,027 16% Hotels/Motels 383,396 15% Industrial/Warehouse 223,271 9% Other 187,744 7% Self-Storage 126,308 5% Nursing-Assisted Living 71,731 3% Restaurants and Gas Stations 68,545 3% $ 2,526,945 100%

 
11 Security Portfolio as of 3Q24 ($in 000s) U.S Treasury & Agency $152,617 Municipal $655,646 Agency RMBS $54,766 Non-Agency RMBS $277,476 Agency CMBS $34,050 Non-Agency CMBS $153,694 Asset-Backed $70,635 Other $37,547 Portfolio FV $1,436,431 • Portfolio duration is approximately 4.3 years • 67% of unrealized losses have a duration of approximately 5.5 years; remainder less than 2.5 years • Unrealized losses are the result of the interest rate environment • AOCI accretion is expected to be approximately 5.7% per quarter assuming a stagnant interest rate environment • The current portfolio is held as available-for-sale, and there is no intent to reclassify any part • Majority of non-agency CMBS and ABS are equity enhanced through structure and credit support Category Net Unrealized Losses Amortized Cost WA Yield U.S. Treasury & Agency $ 13,383 $ 166,000 1.31% Municipal 57,394 713,040 2.58% Agency RMBS 2,797 57,562 3.88% Non-Agency RMBS 8,332 285,808 4.23% Agency CMBS 798 34,848 5.20% Non-Agency CMBS 3,875 157,569 4.30% Asset-Backed 438 71,073 6.44% Other 854 38,401 7.28% $ 87,871 $1,524,302 3.40%

 
12 Funding Sources as of 3Q24 ($ in 000s) Demand (non- interest) $1,392,123 Demand (interest) $2,182,632 Money Market & Savings $1,709,471 Brokered CDs $345,328 Time Deposits & Other $971,271 Deposits $6,600,825 Category Average Rate QTD Demand (non-interest bearing) − % Demand (interest bearing) 3.19% Money Market & Savings 1.43% Brokered Certificate of Deposits 4.98% Time Deposits & Other 4.75% Total Interest-Bearing Deposits 3.02% Total Deposits 2.38% • Loan-to-deposit ratio of 84.4% and loan + security-to-deposit ratio of 106.5% • Brokered deposits represent 5.2% of total deposits • Uninsured deposits totaled $2.0 billion, representing 30% of total deposit balance • Borrowings totaled $320 million with a total capacity of $2.7 billion and remaining capacity of $2.4 billion • Stress tests are performed on liquidity and capital on a quarterly basis • We believe we have ample liquidity to withstand significant stress

 
13 Capital Ratio Trends1 17.6% 18.0% 16.9% 11.3% FY21 FY22 FY23 3Q24 Common Equity Tier 1 Ratio 17.6% 18.0% 16.9% 11.7% FY21 FY22 FY23 3Q24 Tier 1 Capital Ratio 18.8% 18.9% 17.9% 14.3% FY21 FY22 FY23 3Q24 Total Capital Ratio 10.9% 8.7% 7.9% 9.6% FY21 FY22 FY23 3Q24 Leverage Ratio Capital Management • We take a forward-looking, disciplined approach to capital management that emphasizes acceptable risk- adjusted returns over the long-term • Our capital management priorities include - Supporting customers - Funding business investments - Maintaining appropriate capital in light of economic conditions and regulatory expectations - Returning excess capital to shareholders • Modeled stress scenarios include evaluating the impact of deposit shocks, interest rate scenarios, and general balance sheet repositioning • Stress scenarios result in capital levels well above well- capitalized levels (1) All 3Q24 capital ratios are estimated.

 
14 Asset Quality Trends 1.82% 1.11% 1.21% 1.22% FY21 FY22 FY23 3Q24 Allowance Coverage Ratio 0.18% 0.02% FY21 FY22 FY23 3Q24 NCOs / Average Loans 121.0% 383.0% 675.8% 189.1% FY21 FY22 FY23 3Q24 Allowance for Credit Losses / NPLs 1.50% 0.29% 0.18% 0.64% FY21 FY22 FY23 3Q24 NPLs / Total Loans Credit Management • Our objective is to maintain a moderate risk profile through the economic cycle • Credit risk management is embedded in our risk culture and in our decision-making processes - Managed through specific policies and processes - Measured and evaluated against our risk appetite and credit concentration limits - Reported, along with specific mitigation activities, to management and the Board of Directors through our governance structure • Underwriting guidelines are adjusted to reflect current market conditions • Loan reviews include ongoing monitoring procedures that involve additional stress testing of interest rate movements and collateral performance 0.00% 0.00%

 
15 Final Thoughts • Our business model is built on customer service and being a trusted advisor • Our approach is concentrated on growing and deepening relationships across our businesses that meet our risk/return measures • We are focused on our strategic priorities which are designed to enhance value over the long term - Profitably expanding our market share - Deepening customer relationships by delivering fee-based financial solutions - Leveraging technology to create efficiencies that help us better serve customers • With the Summit merger closed, we are focused on a seamless integration and delivering what our constituencies expect of us

 
16 Appendix: Notes on Non-GAAP Financial Measures Total Common Equity, Tangible Book Value & Tangible Assets: 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 since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive income/(loss) in stockholders' equity. Sept. 30, 2024 June 30, 2024 Common Shareholders’ Equity $ 727,646 682,713 Less: Goodwill and intangible assets, net 94,381 98,678 Tangible common equity (non-GAAP) $ 633,265 584,035 Shares outstanding at end of period 14,963,003 14,932,169 Tangible book value per common share $ 42.32 39.11 Total Assets $ 7,864,913 7,810,193 Less: Goodwill and Intangible assets, net 94,381 98,678 Tangible assets (non-GAAP) $ 7,770,532 7,711,515 Operating Net Income, Adjusted diluted EPS and Adjusted non-interest expense: 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 listing-related or merger-related expenses. 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 listing-related and merger-related expenses. Management believes it represents a more normalized non-interest expense total for periods with identified significant items. Weighted averaged diluted shares calculated only computation of adjusted diluted EPS. Weighted average diluted shares for GAAP diluted EPS are the same as shares for calculating basis EPS due to the antidilutive effect of the diluted shares when considering the GAAP loss for the quarter.

 
v3.24.3
Cover
Oct. 25, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 25, 2024
Entity Registrant Name Burke & Herbert Financial Services Corp.
Entity Incorporation, State or Country Code VA
Entity File Number 001-41633
Entity Tax Identification Number 92-0289417
Entity Address, Address Line One 100 S. Fairfax Street
Entity Address, City or Town Alexandria
Entity Address, State or Province VA
Entity Address, Postal Zip Code 22314
City Area Code 703
Local Phone Number 666-3555
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.50
Trading Symbol BHRB
Security Exchange Name NASDAQ
Entity Emerging Growth Company true
Entity Ex Transition Period false
Amendment Flag false
Entity Central Index Key 0001964333
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