Burke & Herbert Financial Services Corp. Announces Second Quarter 2025 Results and Declares Common Stock Dividend

Core Viewpoint - Burke & Herbert Financial Services Corp. reported strong financial results for Q2 2025, with a net income of $29.7 million and a declared cash dividend of $0.55 per share, reflecting a positive outlook for the second half of the year [1][4][5]. Financial Performance - The company achieved a net income applicable to common shares of $29.7 million, or $1.97 per diluted share, compared to $27.0 million, or $1.80 per diluted share in Q1 2025, indicating a growth of 10.1% in net income [4][5]. - The annualized return on average assets was 1.51%, and the annualized return on average equity was 15.50% for the quarter [5]. - Total gross loans at the end of Q2 2025 were $5.6 billion, a decrease of $57.1 million from Q1 2025, while total deposits were $6.4 billion, down by $150.9 million [6][5]. Balance Sheet and Capital Ratios - The company maintained a strong balance sheet with total liquidity of $4.4 billion and a loan-to-deposit ratio of 87.5% [5][6]. - Common Equity Tier 1 capital to risk-weighted assets was 12.2%, and Total risk-based capital to risk-weighted assets was 15.3%, both significantly above regulatory requirements [8][9]. Non-Interest Income and Expenses - Non-interest income for Q2 2025 was $12.9 million, an increase from $10.0 million in the previous quarter, driven by various income sources including life insurance proceeds [14]. - Non-interest expenses decreased slightly to $49.3 million from $49.7 million in Q1 2025, reflecting cost management efforts post-merger [14]. Future Outlook - The company is focused on expense management while investing in future growth, including planned expansions in Bethesda, Maryland, and Fredericksburg and Richmond, Virginia [3]. - The management expressed confidence in maintaining asset quality metrics within a moderate risk appetite, anticipating a strong second half of 2025 [3].