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]
Burke & Herbert Financial Services (BHRB) - 2024 Q2 - Quarterly Results