Business
Burke & Herbert Financial Services Corp. Announces Second Quarter 2023 Results and Declares Common Stock Dividend
ALEXANDRIA, Va., July 28, 2023 /PRNewswire/ -- Burke & Herbert Financial Services Corp. (the "Company") (Nasdaq: BHRB) reported financial results for the
About this update from Burke & Herbert Financial Services Corp.
[{"type":"text","content":"ALEXANDRIA, Va., July 28, 2023 /PRNewswire/ -- Burke & Herbert Financial Services Corp. (the \"Company\") (Nasdaq: BHRB) reported financial results for the quarter ended June 30, 2023. In addition, at its meeting on July 27, 2023, the board of directors declared a $0.53 per share regular cash dividend to be paid on September 1, 2023, to shareholders of record as of the close of business August 15, 2023.\n\n \n \n\n\n\n\n\n\n \nThe Company notes the following highlights:\nBalance sheet remains strong with ample liquidity and capital ratios significantly higher than regulatory defined well-capitalized levels; Asset quality remains stable across the loan portfolio with adequate reserves; and Focus remains on strategic initiatives to profitably expand market share, transform the Company's digital capabilities and grow sources of non-interest income.From David P. Boyle, Company Chair, President and Chief Executive Officer\n\"Despite the headwinds facing the industry and the resulting pressure on bank earnings, our focus remains on executing our strategic priorities. This quarter we increased loans, maintained a strong liquidity position, and continued to make investments in our businesses designed to deliver increased shareholder value over the long-term.\"\nResults of Operations\nSecond Quarter 2023 - Comparison to prior year quarter\nNet income for the three months ended June 30, 2023, was $6.0 million or $4.4 million lower than the three months ended June 30, 2022, primarily due to increased funding costs and the change in provision for credit losses that included a recapture of credit losses in the prior year quarter. \nTotal revenue (non-GAAP) for the three months ended June 30, 2023, was $28.4 million or 6% lower than the three months ended June 30, 2022, and included $25.3 million in interest and fees on loans and $10.8 million in investment security income, which was a 45% increase and a 20% increase, respectively, over the prior year three months ended June 30, 2022. Overall, interest income for the three months ended June 30, 2023, was $37.1 million or 40% higher than the three months ended June 30, 2022. The increase in interest income for the Company's loans was due to increased loan growth and higher rates, and the interest income increase in investment securities was due to higher rates. Loans, net of allowance for cred...