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].

Core Viewpoint - Burke & Herbert Financial Services Corp. reported strong financial results for Q1 2025, showing significant growth in net income and earnings per share, alongside a robust balance sheet and strategic initiatives for growth [4][5][7]. Financial Performance - The company reported net income applicable to common shares of $27.0 million, or $1.80 per diluted common share, for Q1 2025, compared to $19.6 million, or $1.30 per diluted common share, in Q4 2024 [5][7]. - The annualized return on average assets was 1.41%, and the annualized return on average equity was 14.57% for the quarter [7][27]. - Total gross loans were $5.6 billion, a decrease of $24.7 million from the previous quarter, while total deposits increased by $26.6 million to $6.5 billion [8][25]. Dividend and Share Repurchase - The board of directors declared a regular cash dividend of $0.55 per share, to be paid on June 2, 2025, to shareholders of record as of May 15, 2025 [1]. - The company authorized a share repurchase program allowing for the purchase of up to $50 million of common shares [2]. Balance Sheet Strength - The company maintained a strong balance sheet with total liquidity of $4.2 billion at the end of Q1 2025, and capital ratios well above regulatory requirements [7][9]. - Common Equity Tier 1 capital to risk-weighted assets was 11.7%, and total risk-based capital to risk-weighted assets was 14.7% [9][10]. Operational Highlights - The company improved expense management while continuing to invest in long-term growth initiatives, including technology upgrades and market expansions [4]. - Non-interest income for Q1 2025 was $10.0 million, down from $11.8 million in the prior quarter, primarily due to a lack of gains on securities [15][27]. Interest Income and Margin - Net interest income for the quarter was $73.0 million, an increase from $70.7 million in the previous quarter, driven by a decrease in interest expense [8][27]. - The net interest margin increased to 4.18% from 3.91% in Q4 2024, reflecting improved yields on interest-earning assets [15][27]. Strategic Initiatives - The company is focused on disciplined growth strategies, including the expansion into lower-cost markets and enhancing operational efficiency through technology investments [4].