Financial Performance - Net loss applicable to common shares for the six months ended June 30, 2024, was $11.9 million, a decrease of $25.5 million compared to net income of $13.6 million for the same period in 2023[231]. - Net interest income increased by $33.3 million to $81.9 million for the six months ended June 30, 2024, compared to $48.6 million for the same period in 2023, primarily driven by the impact of the Merger[231][235]. - Non-interest income rose by $4.9 million, or 55.7%, to $13.8 million for the six months ended June 30, 2024, compared to $8.8 million for the same period in 2023, also attributed to the Merger[233]. - Non-interest expenses increased by $43.9 million, or 105.2%, to $85.6 million for the six months ended June 30, 2024, compared to $41.7 million for the same period in 2023, largely due to Merger-related costs[233]. - The tax-adjusted net interest margin was 3.56% for the six months ended June 30, 2024, up from 2.96% for the same period in 2023, driven by the Merger and acquisition of higher-yielding assets[236]. - Total interest income increased by 88.7% to $134.8 million for the six months ended June 30, 2024, compared to $71.4 million for the same period in 2023[247]. - Total interest expense was $52.9 million for the six months ended June 30, 2024, up from $22.9 million in the same period in 2023, reflecting the impact of the Merger[248]. Assets and Liabilities - As of June 30, 2024, the company reported total consolidated assets of $7.8 billion, gross loans of $5.6 billion, total deposits of $6.6 billion, and total shareholders' equity of $693.1 million[186]. - Total assets increased to $7.81 billion as of June 30, 2024, compared to $3.57 billion as of June 30, 2023[229]. - Total deposits reached $6.64 billion as of June 30, 2024, compared to $3.01 billion as of June 30, 2023[229]. - The total loan portfolio increased by $3.53 billion to $5.62 billion as of June 30, 2024, primarily due to the merger[289]. - The company has available unused borrowing capacity of $2.2 billion through its lines of credit as of June 30, 2024[310]. - Brokered time deposits amounted to $403.7 million as of June 30, 2024, compared to $389.0 million at December 31, 2023[312]. Credit Losses and Provisions - The allowance for credit losses is based on historical experience, current conditions, and projections, reflecting the expected credit losses for financial assets[193]. - The company recorded a provision of $20.1 million for credit losses for the three months ended June 30, 2024, compared to $310.0 thousand for the same period in 2023[298]. - Provision for credit losses was $23.2 million for the six months ended June 30, 2024, compared to $0.7 million for the same period in 2023, reflecting a one-time CECL Day 2 provision related to the Merger[232]. - The allowance for credit losses (ACL) was adjusted to $68.02 million as of June 30, 2024, reflecting an increase in expected credit losses[289][297]. - The total allowance for credit losses was $68,017 thousand as of June 30, 2024, compared to $25,301 thousand at the end of the previous year[304]. Merger Impact - The company completed a merger with Summit Financial Group, Inc., where holders of Summit common stock received 0.5043 shares of Burke & Herbert common stock for each share of Summit common stock[183]. - Non-interest income increased by 105.5% to $9.5 million for the three months ended June 30, 2024, compared to $4.6 million in the same period of 2023, primarily driven by the Merger[276]. - Non-interest expense surged by 201.8% to $64.4 million for the three months ended June 30, 2024, compared to $21.3 million in the same period of 2023, largely due to Merger-related costs[277]. - The Company incurred $24.4 million of non-interest expense related to the Merger with Summit for the six months ended June 30, 2024[252]. - The company is focused on integrating Summit's operations and achieving related revenue synergies and cost savings[224]. Regulatory Compliance - The company is subject to regulation and supervision by the Federal Reserve as a financial holding company[181]. - As of June 30, 2024, the Bank complied with all regulatory capital standards and qualifies as "well capitalized"[220]. - The Company is subject to various regulatory capital requirements, including maintaining minimum Common Equity Tier 1 (CET 1), Tier 1, and Total Capital ratios[217]. - The Company must adhere to capital adequacy guidelines and regulatory frameworks for "prompt corrective action" to avoid constraints on dividends and other financial activities[219]. Interest Rate Risk Management - The company actively manages its interest rate sensitivity position to achieve sustainable growth in net interest income[324]. - Interest rate risk management includes using tools such as interest rate sensitivity analysis and interest rate simulations[325]. - The company does not hedge all of its interest rate risk, and there is no guarantee that hedging attempts will be successful[323]. - The company’s profitability is affected by fluctuations in interest rates, which may impact interest income and expense[322]. - The economic value of equity (EVE) is expected to decrease by 3.5% with a 200 basis point increase in interest rates as of June 30, 2024[329]. Employment and Operations - The company had 850 full-time employees as of June 30, 2024, with no employees covered by a collective bargaining agreement[186]. - The company must manage operational risks related to new products, changes in processes, and implementation of new technology[223].

Merger and Acquisition - The total aggregate consideration paid for the merger was approximately $397.4 million, resulting in approximately $32.8 million of preliminary goodwill[1] - The merger created a financial holding company with more than $7.8 billion in assets and over 75 branches across multiple states[13] - Total loans at the end of Q2 2024 were $5.6 billion, up from $2.1 billion at the end of 2023, primarily due to the merger[4][16] - Total deposits increased to $6.6 billion at June 30, 2024, up from $3.0 billion at December 31, 2023, primarily due to the merger[7] - Total non-interest income for Q2 2024 was $9.5 million, an increase of $5.3 million from Q1 2024 due to the merger[39] Financial Performance - The net loss applicable to common shares for Q2 2024 was $17.1 million, or $(1.41) per diluted common share; adjusted (non-GAAP) operating net income was $25.0 million[6][14] - Adjusted operating net income for Q2 2024 was $25.0 million, or $2.04 per diluted share[36] - Net income (loss) applicable to common shares for Q2 2024 was $(17.1) million, compared to $6.0 million in Q2 2023[45] - Net income (loss) applicable to common shares for June 30, 2024, was $(17,144,000), a decline from $6,034,000 in June 30, 2023[50] Income and Expenses - Net interest income for the quarter was $59.8 million, with a net interest margin on a fully taxable equivalent basis of 4.06%, an increase of 138.1 basis points compared to the previous quarter[3][17] - Net interest income increased to $59.8 million in Q2 2024, up from $22.1 million in Q1 2024[37] - Interest income for June 30, 2024, reached $96,097,000, significantly up from $37,116,000 in June 30, 2023, representing a growth of 158%[50] - Total revenue (non-GAAP) for June 30, 2024, was $69,270,000, compared to $28,417,000 for the same period last year, indicating an increase of 143%[50] - Non-interest expense for the quarter was $64.4 million, which included $23.8 million of merger-related charges[19] - Non-interest expense for June 30, 2024, totaled $64,432,000, compared to $21,348,000 in June 30, 2023, reflecting a rise of 202%[52] Capital and Assets - The Company ended the quarter with a Common Equity Tier 1 capital ratio of 10.9% and a Total risk-based capital ratio of 13.8%, both above regulatory requirements[5][20] - The Bank's Common Equity Tier 1 capital ratio was 12.4% and Total risk-based capital ratio was 13.5% as of June 30, 2024, both significantly above regulatory requirements[40] - Total assets as of June 30, 2024, were $7.81 billion, an increase from $3.57 billion in June 2023[48] - Total equity increased to $693.1 million as of June 30, 2024, up from $270.8 million in June 2023[48] - Tangible common equity as of June 30, 2024, was $584,035,000, up from $290,072,000 in June 30, 2023[60] Credit and Loans - The allowance for credit losses at June 30, 2024, was $68.0 million, or 1.2% of total loans, which included $29.5 million of CECL Day 2 non-PCD provision expense[9] - Provision for credit losses for June 30, 2024, was $23,910,000, compared to a recapture of $(750,000) in December 31, 2023[59] - Loans (gross) reached $5.62 billion as of June 30, 2024, compared to $2.07 billion in June 2023[48] Shareholder Returns - The Company declared a regular cash dividend of $0.53 per share to be paid on September 3, 2024[12] Book Value and Earnings Per Share - Book value per share increased to $45.72 as of June 30, 2024, compared to $39.05 in June 2023[48] - Adjusted diluted EPS for June 30, 2024, was $2.04, up from $0.83 in June 30, 2023[52] Other Financial Metrics - Average earning assets for June 30, 2024, were $5,994,383,000, compared to $3,379,534,000 in June 30, 2023, showing an increase of 77%[63] - Net interest margin (non-GAAP) for June 30, 2024, was 4.06%, compared to 2.87% in June 30, 2023[63] - The company reported a significant increase in non-interest income, which reached $9,505,000 for June 30, 2024, compared to $4,625,000 in June 30, 2023, marking a growth of 105%[50]

Q2 2024 Highlights Related to the merger, the total aggregate consideration paid was approximately $397.4 million and resulted in approximately $32.8 million of preliminary goodwill subject to adjustment in accordance with ASC 805. Net interest income for the quarter was $59.8 million; net interest income on a fully taxable equivalent basis (non-GAAP1) for the quarter was $60.5 million. Provision for credit losses ("provision") of $23.9 million for the quarter; $29.5 million of CECL Day 2 nonpurchased credi ...

Table of Contents Title of Each Class Trading symbol Name of Exchange on which registered UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) Virginia 92-0289417 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 100 S. Fairfax Street, Alexandria, Virginia 22314 (Address of principal executive offices) (Zip Code) 703-666-3555 Registrant's telephone number, including area code Securities registered pursuant to Section 12(b) of th ...

ALEXANDRIA, Va. and MOOREFIELD, W.Va., May 3, 2024 /PRNewswire/ -- Burke & Herbert Financial Services Corp. ("Burke & Herbert") (Nasdaq: BHRB) today announced the 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, effective May 3, 2024. From David P. Boyle, Chair and Chief Executive Officer "The consummation of this partnership brings together two organizations co ...

ALEXANDRIA, Va., April 26, 2024 /PRNewswire/ --Burke & Herbert Financial Services Corp. (the "Company" or "Burke & Herbert") (Nasdaq: BHRB) reported financial results for the quarter ended March 31, 2024. In addition, at its meeting on April 25, 2024, the board of directors declared a $0.53 per share regular cash dividend to be paid on June 3, 2024, to shareholders of record as of the close of business on May 15, 2024. Net income totaled $5.2 million for the quarter, compared to $5.1 million the previous q ...

For Immediate Release April 26, 2024 Alexandria, VA – Burke & Herbert Financial Services Corp. (the "Company" or "Burke & Herbert") (Nasdaq: BHRB) reported financial results for the quarter ended March 31, 2024. In addition, at its meeting on April 25, 2024, the board of directors declared a $0.53 per share regular cash dividend to be paid on June 3, 2024, to shareholders of record as of the close of business on May 15, 2024. 1 2 1 • Excluding significant items , operating net income (non-GAAP ) totaled $5. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 79 Lending Activities The loan portfolio, excluding ACL, increased by $200.5 million from December 31, 2022, to December 31, 2023, primarily due to commercial real estate, commercial & industrial, and residential real estate loan production. The Company has continued to grow organically by continuing to serve existing customers and new customers through our expansion into newer markets. | --- | --- | --- | --- | --- | ...

ALEXANDRIA, Va., Jan. 26, 2024 /PRNewswire/ -- Burke & Herbert Financial Services Corp. (the "Company" or "Burke & Herbert") (Nasdaq: BHRB) reported financial results for the quarter ended and year ended December 31, 2023. In addition, at its meeting on January 25, 2024, the board of directors declared a $0.53 per share regular cash dividend to be paid on March 1, 2024, to shareholders of record as of the close of business on February 15, 2024. View PDF Burke & Herbert Financial Services Corp. Announces ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41633 Burke & Herbert Financial Services Corp. (Exact name of registrant as specified in its charter) Virginia 92-0289417 (S ...