Burke & Herbert Financial Services (US:BHRB) Prnewswireยท2025-10-23 20:01Core Insights - Burke & Herbert Financial Services Corp. reported solid financial results for Q3 2025, with net income of $29.7 million, maintaining a diluted earnings per share of $1.97, consistent with the previous quarter [4][10][18] - The board declared a regular cash dividend of $0.55 per share, to be paid on December 1, 2025, to shareholders of record as of November 14, 2025 [1][3] Financial Performance - The company achieved a net interest income of $73.8 million for Q3 2025, slightly down from $74.2 million in Q2 2025, primarily due to a decrease in loan interest income [11][18] - Total gross loans were reported at $5.6 billion, a decrease of $31 million from the previous quarter, while total deposits increased by $21.1 million to $6.4 billion [11][18] - The net interest margin decreased to 4.08% from 4.17% in the prior quarter, attributed to lower yields on the loan portfolio [11][18] Capital Ratios - The company remains well-capitalized, with a Common Equity Tier 1 capital ratio of 12.7% and a Total risk-based capital ratio of 15.4%, both significantly above regulatory requirements [5][6][18] - The leverage ratio stood at 10.7%, also above the well-capitalized threshold of 5% [5][6] Operational Highlights - The company opened its first branch in Bethesda, Maryland, and reported strong performance in newer markets in Virginia, including Fredericksburg and Richmond [3] - The balance sheet is characterized by ample liquidity, with total liquidity of $4.3 billion at the end of Q3 2025 [10][11] Asset Quality - The allowance for credit losses was $67.6 million, representing 1.2% of total loans, indicating a moderate risk profile [10][18] - Non-performing loans accounted for 1.60% of total loans, reflecting a slight increase from previous quarters [18]