Burke & Herbert Financial Services Corp. · NASDAQ:BHRB
Burke & Herbert Financial Services — Q1 2026 Earnings Presentation
22 slides from Burke & Herbert Financial Services's earnings presentation, April 2026
Slide 1: 1Q26 Update
1Q26 Update (Nasdaq: BHRB) April 2026 1
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Cautionary Note regarding Forward Looking Statements This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, a
Slide 3: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information such integration may be more difficult, time-consuming or costly than expected; revenues following the proposed transaction may be lower than expected; Burke & Herbert’s success in executing its business plans and strategies and managing the
Slide 4: Introduction
Introduction • Thank you for your interest in Burke & Herbert Financial Services Corp., and its wholly owned subsidiary Burke & Herbert Bank & Trust Company. As a community banking institution, we are headquartered in Old Town Alexandria, Virginia, and have served the banking, borrowing, and investi
Slide 5: Overview
Overview 173 Years Providing Service Beyond Expectations More than 75 locations across 5 states Total Assets $7.9 Billion Headquarters: Alexandria, VA Corporate Centers: Kingstowne, VA Moorefield, WV Total Gross Loans $5.4 Billion Total Deposits $6.3 Billion Return on Average Assets 1.39% Return on
Slide 6: Core Values
Core Values Serve & Lead Deliver More Driven by our values, we We are dedicated to serving our customers and our teams, leading We're driven to go above and beyond, continually innovating and improving with quiet confidence and integrity to endeavor to be your on how we deliver the best possible ins
Slide 7: Investment Strategy
Investment Strategy Future Growth and Innovation – • Oldest continuously operated bank in Virginia with 170+ years of trust Three Pillars of our Strategic Plan Unmatched Legacy & • Multi-generational customer relationships, deeply imbedded in the community Reputation • Publicly traded, yet maintains
Slide 8: 1Q26 At a Glance
1Q26 At a Glance Highlights Built for the Long-Term Loan to Deposit Ratio $27.3 million • Our objective is to build and maintain a fortress 85.4% Net Income balance sheet Uninsured Deposit % - Maintain credit discipline through the cycle $1.79 32.5% Diluted Earnings per Share (EPS) - Ensure proper a
Slide 9: Loan Portfolio as of 1Q26
Loan Portfolio as of 1Q26 ($ in 000s) Residential Commercial Real Estate Category $ by Asset Class % by Asset Class $1,128,740 Retail Real Estate $ 601,129 21% Office Bldgs. / Condos 522,984 19% Multi-Family 464,716 17% Commercial Real Estate Hotels / Motels 371,922 13% $2,806,846 Loans, gross Owner
Slide 10: Security Portfolio as of 1Q26
Security Portfolio as of 1Q26 ($ in 000s) Asset-Backed Net Unrealized $50,300 Other Category Amortized Cost WA Yield Losses Non-Agency $36,083 U.S Treasury & CMBS $98,377 Agency $149,463 U.S. Treasury & Agency $ 9,270 $ 158,733 1.34% Municipal 63,889 1,054,158 3.22% Agency CMBS Agency RMBS 2,633 60,
Slide 11: Funding Sources as of 1Q26
Funding Sources as of 1Q26 ($ in 000s) Category Average Rate QTD Time Deposits & Demand (non-interest bearing) −% Other $1,016,987 Demand (non- interest) Demand (interest bearing) 1.98 % $1,367,050 Money Market & Savings 1.83 % Brokered CDs Brokered CDs & Time Deposits 3.11 % $3,431 Total Interest-B
Slide 12: Capital Ratio Trends
Capital Ratio Trends 1 Common Equity Tier 1 Ratio Total Capital Ratio Capital Management 16.2% 16.5% 15.3% 15.4% • We take a forward-looking, disciplined 12.8% 13.5% 13.8% 12.2% approach to capital management that emphasizes acceptable risk-adjusted returns over the long-term • Our capital managemen
Slide 13: Asset Quality Trends
Asset Quality Trends Allowance Coverage Ratio NCOs / Average Loans (annualized) Credit Management in bps 1.22% 1.26% 1.26% • Our objective is to maintain a moderate risk 1.20% profile through the economic cycle • Credit risk management is embedded in our risk culture and in our decision-making 8.6 p
Slide 14: Final Thoughts
Final Thoughts • Our business model is built on customer service and is designed to consistently deliver top quartile returns relative to our peers • Our approach is concentrated on growing and deepening relationships across our businesses that meet our risk/return measures • We are focused on our s
Slide 15: Appendix: Income Statement and Per Share Information
Appendix: Income Statement and Per Share Information March 31, Dec. 31, Sept. 30, June 30, March 31, Income Statement ($ in 000s) 2026 2025 2025 2025 2025 Interest income $ 105,456 $ 111,140 $ 111,209 $ 111,858 $ 110,786 Interest expense 33,613 36,218 37,439 37,625 37,799 Noninterest income 12,853 1
Slide 16: Appendix: Balance Sheet Trends
Appendix: Balance Sheet Trends March 31, Dec. 31, Sept. 30, June 30, March 31, Balance Sheet (at period end), $ in 000s 2026 2025 2025 2025 2025 Assets $ 7,927,711 $ 7,920,626 $ 7,889,037 $ 8,053,084 $ 7,838,090 Average interest-earning assets 7,279,297 7,363,743 7,308,536 7,248,238 7,171,931 Loans
Slide 17: Appendix: Notes on Non-GAAP Financial Measures
Appendix: Notes on Non-GAAP Financial Measures Total Common Equity, Tangible Book Value, & Tangible Assets: Tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitat
Slide 18: Appendix: Notes on Non-GAAP Financial Measures
Appendix: Notes on Non-GAAP Financial Measures Total Revenue: Total revenue is a non-GAAP measure and is derived from total interest income less total interest expense plus total non-interest income. We believe that total revenue is a useful tool to determine how the Company is managing its business
Slide 19: Appendix: Notes on Non-GAAP Financial Measures
Appendix: Notes on Non-GAAP Financial Measures Net Interest Margin: The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful
Slide 20: Appendix: Notes on Non-GAAP Financial Measures
Appendix: Notes on Non-GAAP Financial Measures Return and Adjusted Return on Average Tangible Common Equity and Average Assets: In management’s view, adjusted return on average common equity, return on average tangible common equity, adjusted return on average tangible common equity, and adjusted re
Slide 21: Appendix: Notes on Non-GAAP Financial Measures
Appendix: Notes on Non-GAAP Financial Measures March 31, Dec. 31, Sept. 30, June 30, March 31, 2026 2025 2025 2025 2025 Average common shareholders' equity $ 861,274 $ 832,411 $ 782,577 $ 757,354 $ 740,417 Average goodwill and other intangibles (76,923) (79,338) (83,079) (85,562) (88,899) Average de
Slide 22: Appendix: Notes on Non-GAAP Financial Measures
Appendix: Notes on Non-GAAP Financial Measures Operating net income, adjusted diluted EPS, and adjusted non-interest expense: Operating net income is a non-GAAP measure that is derived from net income adjusted for significant items. The Company believes that operating net income is useful in periods
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