Burke & Herbert Financial Services (BHRB) - 2024 Q3 - Quarterly Results

Financial Performance - Net income applicable to common shares for Q3 2024 was $27.4 million, with adjusted operating net income of$ 29.8 million[2]. - Earnings per diluted common share (EPS) was $1.82, while adjusted diluted EPS was$ 1.98[2]. - Net income for the quarter ended September 30, 2024, was $27,622,000, compared to a loss of$ 16,919,000 in the previous quarter[24]. - The net income applicable to common shares for the three months ended September 30, 2024, was $27,397,000, compared to$ 4,056,000 in the same period of 2023, reflecting an increase of 576%[15]. - Operating net income for September 30, 2024, was $29,846,000, compared to$ 24,967,000 for June 30, 2024, reflecting a growth of 11.5%[27]. Revenue and Income Growth - Total revenue (non-GAAP) for September 30, 2024, was $83,795,000, up from$ 69,270,000 in the previous quarter, representing a 20.5% increase[24]. - Total revenue for September 30, 2024, reached $118,526,000, up from$ 96,097,000 for June 30, 2024, indicating a 23.2% increase[28]. - Total non-interest income for Q3 2024 was $10.6 million, an increase of$ 1.1 million from Q2 2024[7]. - Non-interest income for the three months ended September 30, 2024, was $10,616,000, compared to$ 4,289,000 in the same period of 2023, indicating an increase of 148%[15]. Interest Income and Margin - Net interest income for the quarter increased to $73.2 million, up from$ 59.8 million in Q2 2024[6]. - Total interest income for the three months ended September 30, 2024, was $118,526,000, a significant increase from$ 37,272,000 in the same period of 2023, representing a growth of 218%[15]. - Net interest income after credit loss expense for the nine months ended September 30, 2024, reached $131,688,000, compared to$ 70,491,000 in the same period of 2023, marking an increase of 87%[15]. - The net interest margin on a fully taxable equivalent basis was 4.07% for Q3 2024, slightly up from 4.06% in Q2 2024[6]. - The net interest margin for the three months ended September 30, 2024, was 4.07%, compared to 2.70% in the same period of 2023, showing an improvement in profitability[17]. Assets and Deposits - Total assets as of September 30, 2024, amounted to $7,864,913,000, up from$ 3,617,579,000 as of December 31, 2023, reflecting a growth of 117%[16]. - Total deposits increased to $6,600,825,000 as of September 30, 2024, from$ 3,001,881,000 as of December 31, 2023, representing a growth of 120%[16]. - Total gross loans at the end of Q3 2024 were $5.6 billion, and total deposits were$ 6.6 billion, resulting in a loan-to-deposit ratio of 84.4%[3]. Credit Losses and Provisions - The allowance for credit losses at the end of Q3 2024 was $67.8 million, or 1.2% of total loans[6]. - The provision for credit losses for the nine months ended September 30, 2024, was$ 23,387,000, compared to $964,000 in the same period of 2023, showing a significant increase in credit loss provisions[15]. - Provision for credit losses for September 30, 2024, was$ 147,000, a significant decrease from $23,910,000 for June 30, 2024[31]. Operational Efficiency - The efficiency ratio improved to 60.66% from 93.02% in the previous quarter, showing enhanced operational efficiency[25]. - Non-interest expense for September 30, 2024, was$ 50,826,000, a decrease from $64,432,000 for June 30, 2024, showing a reduction of 21.1%[27]. - Total non-interest expense for the nine months ended September 30, 2024, was$ 136,423,000, compared to $64,136,000 in the same period of 2023, indicating an increase of 113%[15]. Capital and Equity - Common Equity Tier 1 capital to risk-weighted assets ratio was 11.3%, significantly above the regulatory requirement of 6.5%[8]. - Total equity increased to$ 738,059,000 from $693,126,000, indicating a growth of 6.5%[22]. - Tangible common equity as of September 30, 2024, was$ 633,265,000, up from $584,035,000 for June 30, 2024, reflecting an increase of 8.4%[32]. Future Plans - The company is focused on planned systems integration in Q4 2024 to enhance efficiencies post-merger with Summit Financial Group[4].