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Burke & Herbert Financial Services Corp. Reports Third Quarter 2025 Results

On October 23, 2025, Burke & Herbert Financial Services Corp. (Nasdaq: BHRB) shared its financial results for the third quarter of 2025. The Board of Directors has declared a cash dividend of $0.55 per share, scheduled to be paid on December 1, 2025, to shareholders on record as of November 14, 2025.

Financial Highlights

In this quarter, the net income attributable to common shares was reported at $29.7 million, with the diluted earnings per share (EPS) standing at $1.97. This reflects a consistent performance when compared to the previous quarter, where the net income was the same at $29.7 million and even the EPS remained unchanged at $1.97.

The company reported an annualized return on average assets of 1.50% and an annualized return on average equity of 14.88%. In terms of fiscal health, the total gross loans reached $5.6 billion, while total deposits were noted at $6.4 billion, leading to a loan-to-deposit ratio of 86.7%. Additionally, the net interest margin was calculated to be 4.08% for the quarter.

As of the close of the third quarter, Burke & Herbert reported impressive liquidity with total available borrowing capacity and cash totaling approximately $4.3 billion. The asset quality metrics maintained a moderate risk profile, supported by adequate reserve coverage.

CEO’s Remarks

David P. Boyle, Chair and CEO of the company, commented on the results, highlighting that these figures stem from the company's strategic efforts to provide reliable services and establish a presence in lucrative markets. He emphasized the success of new branches and increased deposits as signs of growth.

“We have taken significant steps by opening our first branch in Bethesda, Maryland, and expanding into regions like Fredericksburg and Richmond, Virginia. We are pleased to exceed our expectations in these markets. Looking forward, we are poised for a strong finish to 2025 and are committed to enhancing value for all stakeholders including customers, employees, and investors,” said Boyle.

Operational Overview

When comparing the third quarter performance with the second quarter, the company’s financials reflected stability in both net income and diluted EPS. Total gross loans saw a slight decrease of $31 million from the previous quarter, which the company attributes to the exit of $80 million in non-strategic loans coupled with $228.9 million in new loan commitments.

Total deposits, however, increased by $21.1 million, of which core deposits saw a rise of $28.8 million after taking into account a decrease in brokered deposits. The net interest income for the quarter was registered at $73.8 million, showing a slight decline from $74.2 million in the second quarter, primarily due to the minor reduction in loan interest income.

The quarterly report also indicated that the company recorded a credit provision expense of $262,000, with an allowance for credit losses bringing the total to $67.6 million—approximately 1.2% of total loans. Non-interest income saw a decline from $12.9 million in the previous quarter to $11.6 million, largely due to previous one-time gains from company-owned life insurance.

Regulatory Standing

Burke & Herbert continues to be well-capitalized, with its Common Equity Tier 1 capital ratio at 12.7%, Total risk-based capital ratio at 15.4%, and a leverage ratio of 10.7%, exceeding regulatory requirements. The subsidiary, Burke Herbert Bank & Trust Company, also shows similar robust capital ratios.

In summary, Burke & Herbert Financial Services Corp. maintains a strong financial footing while deploying strategies aimed at sustainable growth and customer satisfaction. Their commitment to enhancing shareholder value through a reliable dividend and performance reflects a stable trajectory for the organization as they move towards the end of 2025.

For those investors and stakeholders looking to stay updated on Burke & Herbert's financial journey, the company’s news releases and additional information can be found on their official investor relations website.