$BHRB

Burke & Herbert Financial Services Corp.

CIK:0001964333|SEC Filings

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income
Taxable loans, including fees	$ 116,770	$ 96,803	$ 204,853	$ 193,834
Tax-exempt loans, including fees	55	43	95	89
Taxable securities	11,329	9,303	21,087	18,790
Tax-exempt securities	7,605	3,939	13,687	7,206
Other interest income	1,228	1,770	2,721	2,725
Total interest income	136,987	111,858	242,443	222,644
Interest expense
Deposits	35,018	30,431	61,738	62,282
Short-term borrowings	5,897	4,438	10,487	7,630
Subordinated debt	2,990	2,730	5,259	5,459
Other interest expense	40	26	74	53
Total interest expense	43,945	37,625	77,558	75,424
Net interest income	93,042	74,233	164,885	147,220
Credit loss expense (recapture) - loans and available-for-sale securities	(833)	717	(620)	1,617
Credit loss expense (recapture) - off-balance sheet credit exposures	2,212	(93)	2,011	(492)
Total provision for credit losses	1,379	624	1,391	1,125
Net interest income after credit loss expense	91,663	73,609	163,494	146,095
Non-interest income
Net (loss) gain on securities	(1,868)	38	(69)	39
Income from company-owned life insurance	3,207	2,982	4,686	4,175
Bank debit and other card revenue	3,421	3,024	6,256	5,908
Other non-interest income	3,703	2,278	5,361	3,602
Total non-interest income	13,849	12,877	26,702	22,900
Non-interest expense
Salaries and wages	41,378	21,320	62,791	42,261
Pensions and other employee benefits	5,787	4,067	11,157	9,203
Occupancy	6,654	3,521	10,681	7,566
Equipment rentals, depreciation and maintenance	6,934	4,100	11,122	8,184
Core deposit intangible amortization	5,530	3,888	9,214	8,186
ATM, card and network expense	1,389	1,314	2,523	2,446
FDIC and other regulatory assessments	1,576	1,088	2,716	2,002
Other operating	24,258	10,007	34,683	19,121
Total non-interest expense	93,506	49,305	144,887	98,969
Income before income taxes	12,006	37,181	45,309	70,026
Income tax expense	2,524	7,284	8,478	12,928
Net income	9,482	29,897	36,831	57,098
Preferred stock dividends	225	225	450	450
Net income applicable to common shares	$ 9,257	$ 29,672	$ 36,381	$ 56,648
Earnings per common share:
Basic (in dollars per share)	$ 0.50	$ 1.98	$ 2.17	$ 3.78
Diluted (in dollars per share)	$ 0.50	$ 1.97	$ 2.16	$ 3.77
Fiduciary and wealth management
Non-interest income
Revenue from contract with customer	$ 3,100	$ 2,425	$ 6,327	$ 4,868
Service charges and fees
Non-interest income
Revenue from contract with customer	$ 2,286	$ 2,130	$ 4,141	$ 4,308

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities
Net income	$ 36,831	$ 57,098
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets	3,991	3,391
Amortization of other intangible assets	9,815	8,297
Amortization on assumed liabilities	2,862	3,599
Accretion income related to acquired loans	(16,104)	(22,979)
Amortization of housing tax credits	3,061	3,567
Realized (gain) loss on sales of available-for-sale securities	69	(39)
Realized loss on sales of OREO property	0	2
Provision for credit losses	1,391	1,125
Income from company-owned life insurance	(4,686)	(4,175)
Deferred tax expense (benefit)	(11,812)	11,351
Loss on disposal of fixed assets	2,229	86
Accretion of securities	(3,638)	(2,183)
Amortization of securities	5,275	4,849
Share-based compensation expense	4,238	2,470
Repayment of operating lease liabilities	(1,620)	(1,267)
(Gain) on loans held-for-sale	(141)	(184)
Proceeds from sale of loans held-for-sale	12,209	14,479
Change in fair value of loans held-for-sale	0	0
Originations of loans held-for-sale	(13,777)	(13,475)
(Increase) in accrued interest receivable	(3,846)	(999)
(Increase) in other assets	(20,213)	(55,847)
Increase in accrued interest payable and other liabilities	20,681	28,522
Net cash flows provided by operating activities	26,815	37,688
Cash Flows from Investing Activities
Proceeds from maturities, prepayments, and calls of securities available-for-sale, net	59,418	107,736
Proceeds from sale of securities available-for-sale, net	299,014	963
Purchases of securities available-for-sale, net	(438,492)	(193,692)
Business acquisitions, net	73,275	0
Sales of restricted stock	10,850	29,069
Purchases of restricted stock	(13,018)	(37,699)
Purchases of property and equipment, net of disposals	(4,065)	(5,204)
Proceeds from company-owned life insurance	3,138	4,827
Proceeds from sale of OREO property	172	161
(Increase) decrease in loans made to customers, net	(21,148)	102,851
Net cash flows provided by (used in) investing activities	(30,856)	9,012
Cash Flows from Financing Activities
Net increase (decrease) in non-interest-bearing accounts	91,696	(16,323)
Net (decrease) in interest-bearing accounts	(90,098)	(108,980)
Net increase (decrease) in other short-term borrowings	(100,000)	285,000
Payment for call of subordinated debt	0	0
Repayment of finance lease liabilities	(162)	(113)
Cash dividends paid	(19,806)	(16,941)
Proceeds from employee stock purchase program	410	354
Issuance of common stock	27	135
Sale of treasury stock	0	0
Net cash flows provided by (used in) financing activities	(117,933)	143,132
Increase (decrease) in cash and cash equivalents	(121,974)	189,832
Cash and cash equivalents
Beginning of period	289,127	135,314
End of period	167,153	325,146
Cash payments for:
Interest paid to depositors	61,297	63,801
Interest paid on short-term borrowings	9,266	8,781
Interest paid on subordinated debt and trust preferred securities	2,644	2,652
Interest paid on finance leases	74	53
Income taxes	1,071	5,293
Change in unrealized gains on available-for-sale securities	(2,375)	7,876
Lease liability arising from obtaining right-of-use assets	1,012	0
Loans transferred to other real estate owned	417	117
Common stock issued for LNKB Merger, net	329,838	0
Preferred stock issued for LNKB Merger, net	$ 0	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and due from banks	$ 116,443	$ 53,497
Interest-earning deposits with banks	50,710	235,630
Cash and cash equivalents	167,153	289,127
Securities available-for-sale, at fair value	1,963,038	1,615,954
Restricted stock, at cost	56,850	42,187
Loans held-for-sale	2,074	365
Loans	7,999,765	5,387,676
Allowance for credit losses	(94,470)	(67,823)
Net loans	7,905,295	5,319,853
Other real estate owned	2,934	2,689
Premises and equipment, net	150,698	136,809
Accrued interest receivable	50,007	35,442
Intangible assets	80,754	41,747
Goodwill	118,345	34,149
Company-owned life insurance	269,046	213,200
Other assets	225,106	189,104
Total Assets	10,991,300	7,920,626
Liabilities
Non-interest-bearing deposits	2,058,076	1,336,380
Interest-bearing deposits	6,910,006	5,067,561
Total deposits	8,968,082	6,403,941
Short-term borrowings	525,000	450,000
Subordinated debentures, net	134,789	70,222
Subordinated debentures owed to unconsolidated subsidiary trusts	17,394	17,268
Accrued interest and other liabilities	143,856	124,546
Total Liabilities	9,789,121	7,065,977
Commitments and contingent liabilities (see Note 10)
Shareholders’ Equity
Preferred stock and related surplus, $1.00 par value per share; 2,000,000 shares authorized; 1,500 shares issued and outstanding at June 30, 2026; 1,500 shares issued and outstanding at December 31, 2025	10,413	10,413
Common Stock $0.50 par value; 40,000,000 shares authorized, 20,736,461 shares issued and 20,165,171 shares outstanding at June 30, 2026; 40,000,000 shares authorized, 15,599,814 shares issued and 15,028,524 shares outstanding at December 31, 2025	10,368	7,800
Common stock, additional paid-in capital	734,764	405,922
Retained earnings	533,855	517,058
Accumulated other comprehensive income (loss)	(59,637)	(58,960)
Treasury stock 571,290 shares, at cost, at September 30, 2025, and 571,290 shares, at cost, at December 31, 2024	(27,584)	(27,584)
Total Shareholders’ Equity	1,202,179	854,649
Total Liabilities and Shareholders’ Equity	$ 10,991,300	$ 7,920,626