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Burke & Herbert Financial Services (BHRB) - 2024 Q2 - Quarterly Results
BHRBBurke & Herbert Financial Services (BHRB)2024-07-26 13:16

Merger and Acquisition - The total aggregate consideration paid for the merger was approximately 397.4million,resultinginapproximately397.4 million, resulting in approximately 32.8 million of preliminary goodwill[1] - The merger created a financial holding company with more than 7.8billioninassetsandover75branchesacrossmultiplestates[13]−TotalloansattheendofQ22024were7.8 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 2.1billionattheendof2023,primarilyduetothemerger[4][16]−Totaldepositsincreasedto2.1 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 3.0billionatDecember31,2023,primarilyduetothemerger[7]−Totalnon−interestincomeforQ22024was3.0 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 5.3millionfromQ12024duetothemerger[39]FinancialPerformance−ThenetlossapplicabletocommonsharesforQ22024was5.3 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)perdilutedcommonshare;adjusted(non−GAAP)operatingnetincomewas(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 25.0million,or25.0 million, or 2.04 per diluted share[36] - Net income (loss) applicable to common shares for Q2 2024 was (17.1)million,comparedto(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),adeclinefrom(17,144,000), a decline from 6,034,000 in June 30, 2023[50] Income and Expenses - Net interest income for the quarter was 59.8million,withanetinterestmarginonafullytaxableequivalentbasisof4.0659.8 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 22.1millioninQ12024[37]−InterestincomeforJune30,2024,reached22.1 million in Q1 2024[37] - Interest income for June 30, 2024, reached 96,097,000, significantly up from 37,116,000inJune30,2023,representingagrowthof15837,116,000 in June 30, 2023, representing a growth of 158%[50] - Total revenue (non-GAAP) for June 30, 2024, was 69,270,000, compared to 28,417,000forthesameperiodlastyear,indicatinganincreaseof14328,417,000 for the same period last year, indicating an increase of 143%[50] - Non-interest expense for the quarter was 64.4 million, which included 23.8millionofmerger−relatedcharges[19]−Non−interestexpenseforJune30,2024,totaled23.8 million of merger-related charges[19] - Non-interest expense for June 30, 2024, totaled 64,432,000, compared to 21,348,000inJune30,2023,reflectingariseof20221,348,000 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 3.57billioninJune2023[48]−Totalequityincreasedto3.57 billion in June 2023[48] - Total equity increased to 693.1 million as of June 30, 2024, up from 270.8millioninJune2023[48]−TangiblecommonequityasofJune30,2024,was270.8 million in June 2023[48] - Tangible common equity as of June 30, 2024, was 584,035,000, up from 290,072,000inJune30,2023[60]CreditandLoans−TheallowanceforcreditlossesatJune30,2024,was290,072,000 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 29.5millionofCECLDay2non−PCDprovisionexpense[9]−ProvisionforcreditlossesforJune30,2024,was29.5 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)inDecember31,2023[59]−Loans(gross)reached(750,000) in December 31, 2023[59] - Loans (gross) reached 5.62 billion as of June 30, 2024, compared to 2.07billioninJune2023[48]ShareholderReturns−TheCompanydeclaredaregularcashdividendof2.07 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 45.72asofJune30,2024,comparedto45.72 as of June 30, 2024, compared to 39.05 in June 2023[48] - Adjusted diluted EPS for June 30, 2024, was 2.04,upfrom2.04, up from 0.83 in June 30, 2023[52] Other Financial Metrics - Average earning assets for June 30, 2024, were 5,994,383,000,comparedto5,994,383,000, 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 9,505,000forJune30,2024,comparedto9,505,000 for June 30, 2024, compared to 4,625,000 in June 30, 2023, marking a growth of 105%[50]