Burke & Herbert Financial Services Corp. · NASDAQ:BHRB
Burke & Herbert Financial Services — Q3 2025 Earnings Presentation
18 slides from Burke & Herbert Financial Services's earnings presentation, October 2025
Slide 1: 3Q25 Update (Nasdaq: BHRB)
3Q25 Update (Nasdaq: BHRB) October 2025 1
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains “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, and Section 21E of the Securities Exchange Act of 1934
Slide 3: 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 investin
Slide 4: 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 $5.6 Billion Total Deposits $6.4 Billion Return on Average Assets 1.50% Return on
Slide 5: 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 6: 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 7: 3Q25 At a Glance
3Q25 At a Glance Highlights Built for the Long-Term Loan to Deposit Ratio $30.0 million • Our objective is to build and maintain a fortress 86.7% Net Income balance sheet Uninsured Deposit % - Maintain credit discipline through the cycle $1.97 31.5% Diluted Earnings per Share (EPS) - Ensure proper a
Slide 8: Loan Portfolio as of 3Q25 ($ in 000s)
Loan Portfolio as of 3Q25 ($ in 000s) Residential Commercial Real Estate Category $ by Asset Class % by Asset Class $1,127,952 Retail Real Estate $ 593,478 21% Office Bldgs. / Condos 500,602 18% Commercial Real Multi-Family 478,320 17% Estate Hotels / Motels 395,189 14% $2,804,175 Loans, gross Owner
Slide 9: Security Portfolio as of 3Q25 ($ in 000s)
Security Portfolio as of 3Q25 ($ in 000s) Net Unrealized Asset-Backed Other Category Amortized Cost WA Yield Losses Non-Agency $53,966 $26,149 U.S Treasury & U.S. Treasury & Agency $ 10,240 $ 164,474 1.31% CMBS $130,082 Agency $154,234 Municipal 62,408 939,381 3.09% Agency RMBS 2,597 58,072 3.60% Ag
Slide 10: Funding Sources as of 3Q25 ($ in 000s)
Funding Sources as of 3Q25 ($ in 000s) Category Average Rate QTD Time Deposits & Other $1,005,530 Demand (non- Demand (non-interest bearing) −% interest) $1,358,250 Demand (interest bearing) 2.18 % Money Market & Savings 2.02 % Brokered CDs Brokered CDs & Time Deposits 3.25 % $124,386 Total Interest
Slide 11: Capital Ratio Trends
Capital Ratio Trends 1 Common Equity Tier 1 Ratio Total Capital Ratio Capital Management 14.6% 14.8% 15.3% 15.4% • We take a forward-looking, disciplined 11.5% 11.8% 12.2% 12.7% approach to capital management that emphasizes acceptable risk-adjusted returns over the long-term • Our capital managemen
Slide 12: Asset Quality Trends
Asset Quality Trends Allowance Coverage Ratio NCOs / Average Loans (annualized) Credit Management in bps 1.22% • Our objective is to maintain a moderate risk 1.20% 1.20% 1.20% profile through the economic cycle • Credit risk management is embedded in our risk culture and in our decision-making 8.5 8
Slide 13: Final Thoughts
Final Thoughts • Our business model is built on customer service and is designed to consistently deliver top quartile returns relative to our peers • Our approach is concentrated on growing and deepening relationships across our businesses that meet our risk/return measures • We are focused on our s
Slide 14: Appendix: Income Statement and Per Share Information
Appendix: Income Statement and Per Share Information Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Income Statement ($ in 000s) 2025 2025 2025 2024 2024 Interest income $ 111,209 $ 111,858 $ 110,786 $ 112,793 $ 118,526 Interest expense 37,439 37,625 37,799 42,083 45,347 Noninterest income 11,585 1
Slide 15: Appendix: Balance Sheet Trends
Appendix: Balance Sheet Trends Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Balance Sheet (at period end), $ in 000s 2025 2025 2025 2024 2024 Assets $ 7,889,037 $ 8,053,084 $ 7,838,090 $ 7,812,185 $ 7,864,913 Average interest-earning assets 7,308,536 7,248,238 7,171,931 7,273,770 7,238,636 Loans
Slide 16: 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 facilitati
Slide 17: 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 18: 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
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