Burke & Herbert Financial Services Corp. Announces Fourth Quarter and Full Year 2024 Results and Declares Common Stock Dividend

Core Viewpoint - Burke & Herbert Financial Services Corp. reported strong financial results for Q4 2024, highlighting the benefits of its merger with Summit Financial Group, with a net income of $19.6 million and a cash dividend of $0.55 per share declared for shareholders [1][3][4]. Financial Performance - For Q4 2024, net income applicable to common shares was $19.6 million, or $1.30 per diluted common share, with adjusted operating net income of $26.6 million, or $1.77 per diluted common share [4][6]. - For the full year 2024, net income applicable to common shares totaled $35.0 million, with earnings per diluted common share at $2.82, and adjusted operating net income of $87.2 million, or $7.01 per diluted common share [4][6]. Balance Sheet and Capital Ratios - As of December 31, 2024, total assets were $7.81 billion, with total gross loans of $5.7 billion and total deposits of $6.5 billion [16][20]. - The company maintained strong capital ratios, with a Common Equity Tier 1 capital ratio of 11.5% and Total risk-based capital ratio of 14.6%, both significantly above regulatory requirements [5][7][8]. Loan and Deposit Trends - Total gross loans increased by $98.2 million from the previous quarter, while total deposits decreased by $85.6 million, primarily due to a reduction in brokered deposits [6][20]. - The loan-to-deposit ratio stood at 87.1%, indicating a stable lending environment [4][6]. Income and Expense Analysis - Net interest income for Q4 2024 was $70.7 million, a decrease from $73.2 million in the prior quarter, attributed to lower loan interest income [6][22]. - Non-interest income rose to $11.8 million, up from $10.6 million in the previous quarter, driven by gains on securities and increased insurance proceeds [6][22]. Dividend Declaration - The board of directors declared a regular cash dividend of $0.55 per share, payable on March 3, 2025, to shareholders of record as of February 14, 2025 [1].