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Burke & Herbert Financial Services Corp. Reports Fourth Quarter and Full Year 2024 Results

On January 24, 2025, Burke & Herbert Financial Services Corp. (listed on Nasdaq as BHRB) unveiled its financial results for the fourth quarter and the entire fiscal year ending December 31, 2024. This announcement was paired with the declaration of a $0.55 per share cash dividend, anticipated for distribution on March 3, 2025, to shareholders recorded by February 14, 2025.

Highlights of Q4 2024

The quarter showed significant developments for the company, with Burke Herbert Bank & Trust Company officially becoming a member of the Federal Reserve System and purchasing Federal Reserve Bank stock worth $14.8 million. Moreover, on December 11, 2024, the Securities and Exchange Commission validated the company's form S-3, allowing potential security offerings that could reach a total of $350 million.

Reflecting on the recent merger with Summit Financial Group, which completed on May 3, 2024, the company's financial performances were notably improved, corroborating the strategic integration of the two institutions. For the fourth quarter, the organization recorded net income attributable to common shares amounting to $19.6 million, translating to earnings per diluted share of $1.30. Adjusted operating net income for the same period stands at $26.6 million, equating to an adjusted diluted EPS of $1.77.

For the full year of 2024, Burke & Herbert reported net income for common shares summing to $35 million and an EPS of $2.82. The adjusted operating net income has reached $87.2 million, with an adjusted diluted EPS of $7.01. These figures were resulted despite challenges faced post-merger, reflecting stability in both asset quality and loan growth.

Financial Stability and Capitalization

The balance sheet of Burke & Herbert continues to showcase strength, holding a total liquidity figure, including available borrowing capacity, of $4.2 billion by the end of Q4 2024. The company's total gross loans marked $5.7 billion, with total deposits at $6.5 billion, resulting in a loan-to-deposit ratio of 87.1%. Throughout the quarter, the company preserved stable asset quality, backed by sufficient reserves.

Regarding regulatory capital ratios, Burke & Herbert stands solidly above regulatory demands. The Common Equity Tier 1 capital ratio is 11.5%, while the total risk-based capital ratio stands at 14.6%. The leverage ratio reflected a safe 9.8%. Such metrics illustrate the company’s strong capitalization capabilities as it heads into 2025.

CEO's Perspective

David P. Boyle, Chair and Chief Executive Officer, attributes the financial results to the fruitful merger with Summit. He stated, "Our results exemplify the benefits of the merger and highlight the diligent teamwork during the systems integration. The time and energy devoted to this transition have fostered growth in both loans and core deposits this quarter. We enter 2025 with a robust balance sheet, ample liquidity, and a commitment to deliver enhanced value for all stakeholders."

Outlook

The journey of Burke & Herbert demonstrates resilience and growth potential amidst changing market conditions. The company aims to sustain this trajectory, enrich customer experiences, and ensure satisfaction for its shareholders. As the financial institution navigates through 2025, the steadfast commitment to improvement and community engagement continues to prevail in its operational ethos.

For additional information on financial conditions or recent updates, stakeholders are encouraged to explore the financial statements attached to the release.