Burke & Herbert Financial Services Corp. Announces Third Quarter 2025 Results and Declares Common Stock Dividend

Burke & Herbert Financial Services Corp. (the “Company” or “Burke & Herbert”) (Nasdaq: BHRB) reported financial results for the quarter year ended September30, 2025, and disclosed that, at its meeting on October23, 2025, the board of directors declared a $0.55 per share regular cash dividend to be paid on December1, 2025, to shareholders of record as of the close of business on November14, 2025.

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Q3 2025 Highlights

— For the quarter, net income applicable to common shares totaled $29.7 million, and diluted earnings per common share (“EPS”) was $1.97. For the quarter ended June 30, 2025, net income applicable to common shares totaled $29.7 million, and diluted EPS was $1.97.

— For the quarter, the annualized return on average assets was 1.50% and the annualized return on average equity was 14.88%.

— Ending total gross loans were $5.6 billion and ending total deposits were $6.4 billion; ending loan-to-deposit ratio was 86.7%. The net interest margin (non-GAAP1) was 4.08% for the three months ended September30, 2025.

— The balance sheet remains strong with ample liquidity. Total liquidity, including all available borrowing capacity with cash and cash equivalents, totaled $4.3 billion at the end of the third quarter.

— Asset quality metrics remain within the Company's moderate risk profile with adequate reserve coverage.

— The Company continues to be well-capitalized, ending the quarter with 12.7%2 Common Equity Tier 1 capital to risk-weighted assets, 15.4%2 Total risk-based capital to risk-weighted assets, and a leverage ratio of 10.7%.2

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

“Our solid results reflect the teamwork in executing our strategy to be trusted advisors to our customers and to expand into attractive markets where we deliver our full suite of products and services.Our loan originations were strong, and we increased our deposits during the quarter.We recently opened our first branch in Bethesda, Maryland and our newer markets in Virginia, including Fredericksburg and Richmond, are exceeding our expectations. Our balance sheet remains well positioned with ample liquidity, solid capital ratios, and adequate loss reserves. We are looking forward to a strong close to 2025 and delivering increased value for our customers, employees, communities, and shareholders.”

Results of Operations

Third Quarter2025 compared to Second Quarter 2025

The Company reported third quarter 2025 net income applicable to common shares of $29.7 million, or $1.97 per diluted common share, compared to second quarter 2025 net income applicable to common shares of $29.7 million, or $1.97 per diluted common share.

— Period-end total gross loans were $5.6 billion at September 30, 2025, a decrease of $31.0 million from June 30, 2025, as the Company exited approximately $80.0 million of non-strategic loans while originating $228.9 million of new, relationship-based loan commitments.

— Period-end total deposits were $6.4 billion at September 30, 2025, an increase of $21.1 million from June 30, 2025. Excluding a $7.7 million decrease in brokered deposits, core deposits increased $28.8 million.

— Net interest income for the quarter was $73.8 million compared to $74.2 million in the prior quarter due to a decrease in interest income of $0.6 million which slightly exceeded a decrease in interest expense of $0.2 million. The decrease in total interest income was mainly attributable to a decrease in loan interest income of $1.7 million primarily driven by lower accretion income. This was slightly offset by an increase in interest income from securities of $0.7 million and an increase in other interest income of $0.3 million. The decrease in total interest expense was primarily driven by lower deposit costs from a decrease in the balance of brokered time deposits and lower rates on certain deposit products.

— Net interest margin on a fully taxable equivalent basis (non-GAAP1) decreased to 4.08% versus 4.17% in the second quarter of 2025, mainly attributable to a lower yield on the loan portfolio primarily due to lower accretion income, partially offset by an increase in yield on the securities portfolio and a decrease in yield on interest-bearing liabilities compared to the second quarter of 2025.

— Accretion income on loans during the quarter was $8.2 million, and the amortization expense impact on interest expense was $1.4 million, or 36.7bps of net interest margin on an annualized basis in the third quarter of 2025. In the prior quarter, accretion income on loans during the quarter was $11.5 million, and the amortization expense impact on interest expense was $1.4 million, or 56.0 bps of net interest margin on an annualized basis.

— The cost of total deposits, including non-interest bearing deposits, was 1.87% in the third quarter of 2025, compared to 1.90% in the second quarter of 2025. The decrease in the cost of deposits was mostly due to a decrease in the rate paid on interest-bearing deposits compared to the second quarter of 2025.

— The Company recorded credit provision expense in the third quarter of 2025 of $262 thousand and the Company's allowance for credit losses at September 30, 2025, was $67.6 million, or 1.2% of total loans.

— Total non-interest income for the third quarter of 2025 was $11.6 million compared to $12.9 million in the prior quarter, primarily due to collection of death proceeds from company-owned life insurance which increased non-interest income by $1.8 million in the prior quarter, which was somewhat offset by increases in other categories of non-interest income in the third quarter of 2025 compared to the second quarter of 2025.

— Non-interest expense for the third quarter of 2025 was $48.1 million compared to $49.3 million in the second quarter of 2025, primarily reflecting continued operating efficiency gains, post-merger.

Regulatory capital ratios2

The Company continues to be well-capitalized with capital ratios that are above regulatory requirements. As of September30, 2025, our Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were 12.7%2and 15.4%2, respectively, and significantly above the well-capitalized requirements of 6.5% and 10%, respectively. The leverage ratio was 10.7%2compared 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 September30, 2025, the Bank's Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were 14.0%2and 15.2%,2respectively, and significantly above the well-capitalized requirements. In addition, the Bank's leverage ratio of 11.4%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; 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. Further, factors identified herein are not necessarily all of the factors that could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm the Company. Accordingly, you should consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by the Company and not place undue reliance on forward-looking statements.

The risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to, the following: costs or difficulties associated with newly developed or acquired operations; changes in general economic, political, or market trends (either nationally or locally in the areas in which we conduct, or will conduct, business), including inflation, changes in interest rates, market volatility and monetary fluctuations, and changes in federal government policies and practices, as well as the impact from recently announced and future tariffs on the markets we serve; increased competition; changes in consumer confidence and demand for financial services, including changes in consumer borrowing, repayment, investment, and deposit practices; changes in asset quality and credit risk; our ability to control costs and expenses; adverse developments in borrower industries or declines in real estate values; changes in and compliance with federal and state laws and regulations that pertain to our business and capital levels; our ability to raise capital as needed; the impact, extent and timing of technological changes; the effects of any cybersecurity breaches; and the other factors discussed in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, and other reports the Company files with the SEC.

Burke & Herbert Financial Services Corp.Consolidated Statements of Income (unaudited)(In thousands) Three Months Ended Nine Months Ended September 30, June 30 September 30, 2025 2024 2025 2025 2024Interest incomeTaxable loans, including fees $ 95,132 $ 103,682 $ 96,803 $ 288,966 $ 213,400Tax-exempt loans, including fees 47 48 43 136 81Taxable securities 9,062 10,076 9,303 27,852 29,949Tax-exempt securities 4,863 3,135 3,939 12,069 7,052Other interest income 2,105 1,585 1,770 4,830 2,886Total interest income 111,209 118,526 111,858 333,853 253,368Interest expenseDeposits 30,286 39,441 30,431 92,568 82,745Short-term borrowings 4,379 3,080 4,438 12,009 10,806Subordinated debt 2,748 2,798 2,730 8,207 4,658Other interest expense 26 28 26 79 84Total interest expense 37,439 45,347 37,625 112,863 98,293Net interest income 73,770 73,179 74,233 220,990 155,075Credit loss expense – loans and available-for- 574 85 717 2,191 19,515sale securitiesCredit loss (recapture) – off-balance sheet credit (312) 62 (93) (804) 3,872exposuresTotal provision for credit losses 262 147 624 1,387 23,387Net interest income after credit loss expense 73,508 73,032 73,609 219,603 131,688Non-interest incomeFiduciary and wealth management 2,664 2,352 2,425 7,532 5,982Service charges and fees 2,070 2,509 2,036 6,195 4,977Net gains on securities 212 – 38 251 613Income from company-owned life insurance 1,152 1,330 2,982 5,327 2,799Bank debit and other card revenue 3,192 3,119 3,024 9,100 6,708Other non-interest income 2,295 1,306 2,372 6,080 3,296Total non-interest income 11,585 10,616 12,877 34,485 24,375Non-interest expenseSalaries and wages 20,848 20,858 21,320 63,109 51,271Pensions and other employee benefits 4,429 4,678 4,067 13,632 12,346Occupancy 3,479 3,412 3,521 11,045 7,947Equipment rentals, depreciation and maintenance 3,908 4,699 4,100 12,092 18,643Core deposit intangible amortization 3,683 4,297 3,888 11,869 7,162ATM, card and network expense 1,200 1,640 1,314 3,646 3,299FDIC and other regulatory assessments 976 1,037 1,088 2,978 2,500Other operating 9,569 10,205 10,007 28,690 33,255Total non-interest expense 48,092 50,826 49,305 147,061 136,423Income before income taxes 37,001 32,822 37,181 107,027 19,640Income tax expense 7,037 5,200 7,284 19,965 3,725Net income 29,964 27,622 29,897 87,062 15,915Preferred stock dividends 225 225 225 675 450Net income applicable to common shares $ 29,739 $ 27,397 $ 29,672 $ 86,387 $ 15,465
Burke & Herbert Financial Services Corp.Consolidated Balance Sheets(In thousands) September 30, December 31, 2025 2024 (Unaudited) (Audited)AssetsCash and due from banks $ 55,224 $ 35,554Interest-earning deposits with banks 76,489 99,760Cash and cash equivalents 131,713 135,314Securities available-for-sale, at fair value 1,598,407 1,432,371Restricted stock, at cost 42,187 33,559Loans held-for-sale, at fair value 1,303 2,331Loans 5,559,479 5,672,236Allowance for credit losses (67,604) (68,040)Net loans 5,491,875 5,604,196Premises and equipment, net 136,117 132,270Other real estate owned 2,742 2,783Accrued interest receivable 35,444 34,454Intangible assets 45,431 57,300Goodwill 34,149 32,783Company-owned life insurance 182,980 182,834Other assets 186,689 161,990Total Assets $ 7,889,037 $ 7,812,185Liabilities and Shareholders' EquityLiabilitiesNon-interest-bearing deposits $ 1,358,250 $ 1,379,940Interest-bearing deposits 5,053,802 5,135,299Total deposits 6,412,052 6,515,239Short-term borrowings 450,000 365,000Subordinated debentures, net 68,906 94,872Subordinated debentures owed to unconsolidated subsidiary trusts 17,204 17,013Accrued interest and other liabilities 118,644 89,904Total Liabilities 7,066,806 7,082,028Shareholders' EquityPreferred stock and surplus 10,413 10,413Common stock 7,800 7,770Common stock, additional paid-in capital 404,656 401,172Retained earnings 495,400 434,106Accumulated other comprehensive income (loss) (68,454) (95,720)Treasury stock (27,584) (27,584)Total Shareholders' Equity 822,231 730,157Total Liabilities and Shareholders' Equity $ 7,889,037 $ 7,812,185
Burke & Herbert Financial Services Corp.Details of Net Interest Margin (unaudited)For the three months endedDetails of Net Interest Margin – Yield Percentages September 30 June 30 March 31 December 31 September 30 2025 2025 2025 2024 2024Interest-earning assets:Loans:Taxable loans 6.76% 6.90% 6.96% 6.91% 7.34%Tax-exempt loans 6.78 5.90 5.80 5.87 5.63Total loans 6.76 6.90 6.96 6.91 7.34Interest-earning deposits and 4.33 4.68 5.76 4.48 3.43fed funds soldSecurities:Taxable securities 3.86 3.83 3.85 3.82 4.05Tax-exempt securities 4.17 4.20 3.85 3.55 3.58Total securities 3.97 3.95 3.85 3.75 3.91Total interest-earning assets 6.11% 6.25% 6.31% 6.22% 6.56%Interest-bearing liabilities:Deposits:Interest-bearing demand 2.18% 2.21% 2.16% 2.51% 3.19%Money market & savings 2.02 2.01 2.02 1.60 1.43Brokered CDs & time 3.25 3.37 3.85 4.55 4.82depositsTotal interest-bearing deposits 2.37 2.41 2.53 2.76 3.02Borrowings:Short-term borrowings 3.85 3.91 3.88 4.17 4.06Subordinated debt 9.49 9.62 9.85 9.87 10.16borrowings and otherTotal interest-bearing 2.63% 2.68% 2.76% 2.98% 3.21%liabilitiesTaxable-equivalent net 3.48 3.57 3.55 3.24 3.35interest spreadBenefit from use of non- 0.60 0.60 0.63 0.67 0.72interest-bearing depositsTaxable-equivalent net 4.08% 4.17% 4.18% 3.91% 4.07%interest margin (non-GAAP1)
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 30 June 30 March 31 December 31 September 30 2025 2025 2025 2024 2024Interest-earning assets:Loans:Taxable loans $ 5,584,315 $ 5,627,236 $ 5,651,937 $ 5,634,157 $ 5,621,531Tax-exempt loans 3,511 3,737 4,057 3,115 4,310Total loans 5,587,826 5,630,973 5,655,994 5,637,272 5,625,841Interest-earning deposits and 100,445 81,369 40,757 152,537 175,265fed funds soldSecurities:Taxable securities 1,034,136 1,059,310 1,039,391 1,031,024 996,749Tax-exempt securities 586,129 476,586 435,789 452,937 440,781Total securities 1,620,265 1,535,896 1,475,180 1,483,961 1,437,530Total interest-earning assets $ 7,308,536 $ 7,248,238 $ 7,171,931 $ 7,273,770 $ 7,238,636Interest-bearing liabilities:Deposits:Interest-bearing demand $ 2,278,587 $ 2,239,100 $ 2,216,243 $ 2,560,445 $ 2,144,567Money market & savings 1,660,401 1,648,338 1,633,307 1,366,276 1,725,387Brokered CDs & time 1,135,546 1,173,213 1,253,841 1,247,900 1,328,076depositsTotal interest-bearing 5,074,534 5,060,651 5,103,391 5,174,621 5,198,030depositsBorrowings:Short-term borrowings 453,486 457,775 336,245 325,084 304,849Subordinated debt 114,900 113,813 112,383 111,021 109,557borrowings and otherTotal interest-bearing $ 5,642,920 $ 5,632,239 $ 5,552,019 $ 5,610,726 $ 5,612,436liabilitiesNon-interest-bearing deposits $ 1,338,188 $ 1,352,785 $ 1,371,615 $ 1,411,202 $ 1,389,134
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 30 June 30 March 31 December 31 September 30 2025 2025 2025 2024 2024Per common share informationBasic earnings $ 1.98 $ 1.98 $ 1.80 $ 1.31 $ 1.83Diluted earnings 1.97 1.97 1.80 1.30 1.82Cash dividends 0.55 0.55 0.55 0.55 0.53Book value 54.02 51.28 49.90 48.08 48.63Tangible book value 48.72 45.73 44.17 42.06 42.32(non-GAAP1)Balance sheet-related (at period end, unless otherwise indicated)Assets $ 7,889,037 $ 8,053,084 $ 7,838,090 $ 7,812,185 $ 7,864,913Average interest-earning 7,308,536 7,248,238 7,171,931 7,273,770 7,238,636assetsLoans (gross) 5,559,479 5,590,457 5,647,507 5,672,236 5,574,037Loans (net) 5,491,875 5,523,201 5,579,754 5,604,196 5,506,220Securities, available-for- 1,598,407 1,522,611 1,436,869 1,432,371 1,436,431sale, at fair valueIntangible assets 45,431 49,114 53,002 57,300 61,598Goodwill 34,149 34,149 32,842 32,783 32,783Non-interest-bearing deposits 1,358,250 1,363,617 1,382,427 1,379,940 1,392,123Interest-bearing deposits 5,053,802 5,027,357 5,159,444 5,135,299 5,208,702Deposits, total 6,412,052 6,390,974 6,541,871 6,515,239 6,600,825Brokered deposits 124,386 132,098 246,902 244,802 345,328Uninsured deposits 2,022,739 1,963,566 1,943,227 1,926,724 1,999,403Short-term borrowings 450,000 650,000 300,000 365,000 320,163Subordinated debt, net 86,110 114,692 113,289 111,885 110,482Unused borrowing 4,153,137 4,075,313 4,082,879 4,092,378 2,353,963capacity 3Total equity 822,231 780,018 758,000 730,157 738,059Total common equity 811,818 769,605 747,587 719,744 727,646Accumulated other (68,454) (87,854) (88,024) (95,720) (75,758)comprehensive income(loss)Asset QualityProvision for credit losses $ 262 $ 624 $ 501 $ 833 $ 147Net loan charge-offs 226 1,214 1,187 737 285Allowance for credit 67,604 67,256 67,753 68,040 67,817lossesTotal delinquencies 4 34,722 29,056 86,223 38,213 12,486Nonperforming loans 5 89,051 85,531 64,756 38,368 35,872
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 30 June 30 March 31 December 31 September 30 2025 2025 2025 2024 2024Income statementInterest income $ 111,209 $ 111,858 $ 110,786 $ 112,793 $ 118,526Interest expense 37,439 37,625 37,799 42,083 45,347Non-interest income 11,585 12,877 10,023 11,791 10,616Total revenue (non- 85,355 87,110 83,010 82,501 83,795GAAP1)Non-interest expense 48,092 49,305 49,664 61,410 50,826Pretax, pre-provision 37,263 37,805 33,346 21,091 32,969earnings (non-GAAP1)Provision for (recapture 262 624 501 833 147of) credit lossesIncome before income 37,001 37,181 32,845 20,258 32,822taxesIncome tax expense 7,037 7,284 5,644 465 5,200Net income 29,964 29,897 27,201 19,793 27,622Preferred stock dividends 225 225 225 225 225Net income applicable to $ 29,739 $ 29,672 $ 26,976 $ 19,568 $ 27,397common sharesRatiosReturn on average assets 1.50% 1.51% 1.41% 1.00% 1.40%(annualized)Return on average equity 14.88 15.50 14.57 10.49 15.20(annualized)Net interest margin (non- 4.08 4.17 4.18 3.91 4.07GAAP1)Efficiency ratio 56.34 56.60 59.83 74.44 60.66Loan-to-deposit ratio 86.70 87.47 86.33 87.06 84.44Consolidated Common 12.73 12.22 11.77 11.53 11.40Equity Tier 1 (CET1)capital ratio 2Consolidated Total risk- 15.37 15.27 14.79 14.57 14.45based capital ratio 2Consolidated Leverage 10.71 10.42 10.12 9.80 9.66ratio2Allowance coverage ratio 1.22 1.20 1.20 1.20 1.22Allowance for credit 75.92 78.63 104.63 177.34 189.05losses as a percentage ofnon-performing loansNon-performing loans as 1.60 1.53 1.15 0.68 0.64a percentage of totalloansNon-performing assets as 1.16 1.10 0.86 0.53 0.49a percentage of totalassetsNet charge-offs to 1.6 bps 8.6 bps 8.5 bps 5.2 bps 2.0 bpsaverage loans(annualized)
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 30 June 30 March 31 December 31 September 30 2025 2025 2025 2024 2024Net income applicable to $ 29,739 $ 29,672 $ 26,976 $ 19,568 $ 27,397common sharesAdd back significant items(tax effected):Merger-related – – – 7,069 2,449Total significant items – – – 7,069 2,449Operating net income $ 29,739 $ 29,672 $ 26,976 $ 26,637 $ 29,846Weighted average dilutive 15,112,413 15,023,807 15,026,376 15,038,442 15,040,145sharesAdjusted diluted EPS $ 1.97 $ 1.97 $ 1.80 $ 1.77 $ 1.98Non-interest expense $ 48,092 $ 49,305 $ 49,664 $ 61,410 $ 50,826Remove significant items:Merger-related – – – 8,948 3,101Total significant items $ – $ – $ – $ 8,948 $ 3,101Adjusted non-interest $ 48,092 $ 49,305 $ 49,664 $ 52,462 $ 47,725expense

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. 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 September 30 June 30 March 31 December 31 September 30 2025 2025 2025 2024 2024Interest income $ 111,209 $ 111,858 $ 110,786 $ 112,793 $ 118,526Interest expense 37,439 37,625 37,799 42,083 45,347Non-interest income 11,585 12,877 10,023 11,791 10,616Total revenue (non- $ 85,355 $ 87,110 $ 83,010 $ 82,501 $ 83,795GAAP1)

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 September 30 June 30 March 31 December 31 September 30 2025 2025 2025 2024 2024Income before taxes $ 37,001 $ 37,181 $ 32,845 $ 20,258 $ 32,822Provision for (recapture of) 262 624 501 833 147credit lossesPretax, pre- $ 37,263 $ 37,805 $ 33,346 $ 21,091 $ 32,969provision earnings(non-GAAP1)

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 30 June 30 March 31 December 31 September 30 2025 2025 2025 2024 2024Common shareholders' $ 811,818 $ 769,605 $ 747,587 $ 719,744 $ 727,646equityLess:Intangible assets 45,431 49,114 53,002 57,300 61,598Goodwill 34,149 34,149 32,842 32,783 32,783Tangible common equity $ 732,238 $ 686,342 $ 661,743 $ 629,661 $ 633,265(non-GAAP1)Shares outstanding at end 15,028,524 15,007,712 14,982,807 14,969,104 14,963,003of periodTangible book value per $ 48.72 $ 45.73 $ 44.17 $ 42.06 $ 42.32common share

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 September 30 June 30 March 31 December 31 September 30 2025 2025 2025 2024 2024Net interest income $ 73,770 $ 74,233 $ 72,987 $ 70,710 $ 73,179Taxable-equivalent 1,305 1,059 881 858 847adjustmentsNet interest income $ 75,075 $ 75,292 $ 73,868 $ 71,568 $ 74,026(Fully Taxable-Equivalent – FTE)Average interest-earning $ 7,308,536 $ 7,248,238 $ 7,171,931 $ 7,273,770 $ 7,238,636assetsNet interest margin 4.08% 4.17% 4.18% 3.91% 4.07%(non-GAAP1)

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.

(1) Non-GAAP financial measures referenced in this release are used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the non-GAAP reconciliation tables in this release. Non-GAAP measures should not be used as a substitute for the closest comparable GAAP measurements. (2) Ratios as of September30, 2025, are estimated. (3) Includes Federal Home Loan Bank, Borrower-in-Custody (BIC), and correspondent bank availability. (4) Total delinquencies represent accruing loans 30 days or more past due. (5) Includes non-accrual loans and loans 90 days past due and still accruing.

CONTACT:Investor Relations703-666-3555bhfsir@burkeandherbertbank.com

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SOURCE Burke & Herbert Financial Services Corp.

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