Burke & Herbert Financial Services Corp. · NASDAQ:BHRB

Burke & Herbert Financial Services — Debt Investor Presentation (September 2026)

46 slides from Burke & Herbert Financial Services's debt investor presentation, Sep 28, 2026

  1. Slide 1: Fixed Income Investor Presentation

    1 September 2026 Fixed Income Investor Presentation

  2. Slide 2: Forward-Looking Statements

    2 Forward-Looking Statements This presentation contains statements that Burke & Herbert Financial Services Corp. (the “Company”) believes are, or may be considered to be, “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Secu

  3. Slide 3: Disclaimer

    3 Disclaimer This presentation is not an offer to sell securities, and the Company is not soliciting an offer to buy securities in any jurisdiction where such offer or sale is not permitted. Neither the Securities and Exchange Commission (“SEC”), the Federal Deposit Insurance Corporation (“FDIC”), n

  4. Slide 4: Non-GAAP Financial Measures

    4 Non-GAAP Financial Measures This presentation contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these non-GAAP financial measures to assess the performance of th

  5. Slide 5: Offering Overview

    5 Offering Overview (1) An explanation of the significance of ratings may be obtained from the rating agency. Generally, rating agencies base their ratings on such material and information, and such of their own investigations, studies and assumptions, as they deem appropriate. The rating of the sub

  6. Slide 6: Executive Leadership

    6 Executive Leadership David Boyle Chairman & Chief Executive Officer ▪ Chairman since January 2023, Chief Executive Officer since 2020 ▪ President & Chief Operating Officer (2019 – 2020) ▪ Executive VP & Chief Financial Officer, Orrstown Bank (2012 – 2019) ▪ Executive roles at PNC / National City (

  7. Slide 7: Company Overview

    7 Company Overview

  8. Slide 8: Company Overview

    8 Delaware Maryland West Virginia Kentucky Virginia Pennsylvania Lexington Charleston Huntington Bluefield Richmond Harrisonburg Moorefield Morgantown Martinsburg Washington D.C. Harrisburg Allentown Overview Headquarters: Alexandria, VA 174 Years Providing Service Beyond Expectations More than 100

  9. Slide 9: Diverse Deposit Base Across Attractive Markets

    9 4 Market Data Source: S&P Capital IQ Pro; Deposit market share and demographic data as of June 30, 2025. Diverse Deposit Base Across Attractive Markets West Virginia Branches: 28 Deposits: $2.3bn Pennsylvania Branches: 8 Deposits: $1.2bn Other Branches: 6 Deposits: $340mm Virginia Branches: 42 Dep

  10. Slide 10: Core Values

    10 Core Values Driven by our values, we endeavor to be your quintessential community bank — delivering service beyond expectations Serve & Lead We are dedicated to serving our customers and our teams, leading with quiet confidence and integrity to inspire the trust of all those we serve. Deliver Mor

  11. Slide 11: Our Value Proposition

    11 Our Value Proposition Strong & Consistent Financial Performance Market Leadership in a High-Growth Region Community Banking with a Competitive Edge • Well-capitalized and resilient with low earnings volatility across economic cycles • Moderate risk profile with a fortress balance sheet • Stable d

  12. Slide 12: Historical Net Charge-Offs

    12 0.07% 0.06% 0.09% 0.27% 0.39% 0.19% 0.10% 0.00% 0.05% 0.01% 0.00% 0.27% 0.00% (0.03%) 0.22% 0.00% 0.18% 0.00% 0.03% 0.05% 0.04% 0.39% 0.59% 1.41% 2.56% 2.56% 1.57% 1.10% 0.69% 0.49% 0.44% 0.47% 0.50% 0.48% 0.51% 0.50% 0.25% 0.27% 0.51% 0.68% 0.63% 0.58% 2006 2007 2008 2009 2010 2011 2012 2013 201

  13. Slide 13: Financial Overview

    Financial Overview Burke®:Herbert’

  14. Slide 14: 2Q2026 At a Glance

    14 June 30, March 31, ($ in thousands, except for per share data) 2026 2026 3 months ended 3 months ended Net income applicable to common shares $ 9,257 $ 27,124 Addback significant items (tax effected): Merger-related expenses 28,221 1,114 Total significant items 28,221 1,114 Operating net income1

  15. Slide 15: LINKBANCORP Merger Overview

    15 Delaware Maryland West Virginia Kentucky Virginia Acquired Branches BHRB Pennsylvania Lexington Charleston Huntington Bluefield Richmond Harrisonburg Moorefield Morgantown Martinsburg Washington D.C. Harrisburg Allentown Impacts at a Glance LINKBANCORP Merger Overview Transaction Overview Structu

  16. Slide 16: LNKB Announcement Estimates vs. 2Q2026 Actual

    16 (in millions) unless otherwise noted Forecasted at Announcement1 Reported as of June 30, 2026 Accretable loan rate mark $35.7 $55.4 Core deposit intangible 45.1 48.2 Time deposit mark 0.2 0.2 Subordinated-debt mark (3.5) 0.5 Goodwill creation 105.6 82.1 Leverage ratio 9.7% 11.1% Common equity tie

  17. Slide 17: Balance Sheet Highlights

    17 $6,515 $6,404 $6,332 $8,968 2024 2025 1Q2026 2Q2026 $5,672 $5,388 $5,405 $8,000 2024 2025 1Q2026 2Q2026 $7,812 $7,921 $7,928 $10,991 2024 2025 1Q2026 2Q2026 Total Assets Balance Sheet Highlights ($ in millions) Gross Loans HFI Total Deposits

  18. Slide 18: Profitability Metrics

    18 59.8% 56.6% 56.3% 56.0% 60.7% 87.5% 59.8% 56.6% 56.3% 56.0% 59.0% 57.2% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 4.13% 4.18% 4.11% 4.17% 4.00% 4.08% 4.04% 4.11% 4.00% 4.09% 4.06% 4.15% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 16.5% 17.4% 16.6% 15.6% 13.9% 4.1% 16.5% 17.4% 16.6% 15.6% 14.4% 16.5

  19. Slide 19: Net Interest Income

    19 3.5% 1.7% 0.5% 0.5% (0.4%) (300) (200) (100) 100 200 6.96% 6.90% 6.76% 6.79% 6.64% 6.54% 1.99% 1.90% 1.87% 1.80% 1.71% 1.75% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 $73.0 $74.2 $73.8 $74.9 $71.8 $93.0 $73.9 $75.3 $75.1 $76.3 $73.5 $95.1 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 • Net interest i

  20. Slide 20: Non-Interest Income

    20 $10.0 $12.9 $11.6 $11.6 $12.9 $13.8 12.1% 14.8% 13.6% 13.4% 15.2% 13.0% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Fiduciary and Wealth Management 22% Service Charges and Fees 17% Income from Company-Owned Life Insurance 23% Bank Debit and Other Card Revenue 25% Other 13% Non-Interest Income 1 (1)

  21. Slide 21: Non-Interest Expense

    21 $49.7 $49.3 $48.1 $48.5 $51.4 $93.5 $50.0 $61.1 59.8% 56.6% 56.3% 56.0% 60.7% 87.5% 59.8% 56.6% 56.3% 56.0% 59.0% 57.2% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Non-Interest Expense Adjusted NIE1 2 Adjusted Efficiency Ratio1 2 NIE (GAAP) Efficiency Ratio (GAAP) (1) Please refer to the appendix f

  22. Slide 22: Loan Portfolio and Asset Quality

    22 Loan Portfolio and Asset Quality

  23. Slide 23: Loan Portfolio as of 2Q2026

    23 • Originations of new relationship-based commitments totaled $333.0 million • The commercial real estate (CRE) portfolio is well-diversified across asset classes: - Regulatory CRE as a percentage of Bank total risk-based capital was 335% as of June 30, 2026 • In line with our overall strategy, we

  24. Slide 24: CRE Portfolio as of 2Q2026

    24 Owner-Occupied CRE 23% Non Owner-Occupied CRE 77% 337% 320% 313% 335% 2024 2025 1Q2026 2Q2026 State Total ($ in 000s) Virginia $1,995,293 39.5 % Maryland $1,105,677 21.9 Pennsylvania $691,329 13.7 West Virginia $417,537 8.3 District of Columbia $289,961 5.7 Other $551,339 10.9 Total $5,051,136 10

  25. Slide 25: Non Owner-Occupied CRE Portfolio as of 2Q2026

    25 State Total ($ in 000s) Virginia $1,603,689 41.1 % Maryland $808,317 20.7 Pennsylvania $492,061 12.6 West Virginia $293,981 7.5 District of Columbia $287,258 7.4 Other $413,081 10.6 Total $3,898,387 100 % Non Owner-Occupied CRE Portfolio as of 2Q2026 2Q2026 Non Owner-Occupied CRE Composition by C

  26. Slide 26: Office & Multi-Family Portfolios as of 2Q2026

    26 Office & Multi-Family Portfolios as of 2Q2026 Excludes AD&C and owner-occupied commercial real estate. Key Portfolio Metrics Non Owner-Occupied Office Multi-Family % of Total Gross Loans / % of Non Owner-Occupied CRE 8.8% / 18.2% 8.7% / 17.8% Number of Loans / Average Loan Size 372 / $1.9 million

  27. Slide 27: Asset Quality Trends

    27 1.15% 1.53% 1.60% 1.38% 1.45% 1.19% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 104.6% 78.6% 75.9% 91.4% 86.5% 99.1% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 0.08% 0.09% 0.02% (0.01%) 0.01% 0.06% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 1.20% 1.20% 1.22% 1.26% 1.26% 1.18% 1Q2025 2Q2025 3Q2025 4Q2

  28. Slide 28: Funding and Liquidity

    Funding and Liquidity Burke®:Herbert’

  29. Slide 29: Deposit Portfolio as of 2Q2026

    29 Category Average Rate 2Q2026 Demand (non-interest bearing) 0.00 % Demand (interest bearing) 1.96 % Money Market & Savings 1.95 % Brokered CDs & Time Deposits 3.27 % Total Interest-Bearing Deposits 2.25 % Total Deposits 1.75 % Deposit Portfolio as of 2Q2026 2Q2026 Highlights • Loan-to-deposit rati

  30. Slide 30: Securities Portfolio as of 2Q2026

    30 • Portfolio duration is approximately 4.4 years • Securities representing 68% of the unrealized loss position have an average duration of approximately 5.5 years • Unrealized losses are the result of the interest rate environment • Majority of non-agency CMBS and ABS are equity enhanced through s

  31. Slide 31: Liquidity Position as of 2Q2026

    31 • Total available borrowing capacity of $6.0 billion as of June 30, 2026 • Other sources of contingent liquidity include brokered deposit capacity, unencumbered securities, cash, overnight funds sold, over collateralized securities, and other investments • Available borrowing capacity represented

  32. Slide 32: Capital Position

    Capital Position Burke®:Herbert’

  33. Slide 33: Capital Ratio Trends

    33 10.1% 10.4% 10.7% 10.9% 11.3% 11.1% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 12.2% 12.7% 13.2% 13.9% 14.2% 12.1% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 14.8% 15.3% 15.4% 16.2% 16.5% 14.4% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 11.8% 12.2% 12.8% 13.5% 13.8% 11.8% 1Q2025 2Q2025 3Q2025 4Q2025

  34. Slide 34: Appendix

    Appendix Burke®:Herbert’

  35. Slide 35: Acquisition, Development & Construction Portfolio as of 2Q2026

    35 State Total ($ in 000s) Virginia $159,659 35.3 % Maryland $86,427 19.1 Pennsylvania $40,941 9.0 West Virginia $37,163 8.2 District of Columbia $31,274 6.9 Other $97,174 21.5 Total $452,638 100 % Acquisition, Development & Construction Portfolio as of 2Q2026 2Q2026 Composition by Class 2Q2026 Comp

  36. Slide 36: Debt and Hybrid Securities Profile

    36 Debt and Hybrid Securities Profile Issue Entity Rank Maturity Call Amount ($000)1 Front-End Coupon Back-End Coupon Current Coupon2 Subordinated Debt 2031 Sub Notes (10NC5) HoldCo Subordinated 12/1/2031 12/1/2026 75,000 3.250% 3M SOFR + 230 bps 3.250% 2032 Sub Notes (10NC5) HoldCo Subordinated 4/1

  37. Slide 37: Pro Forma Consolidated Capital

    37 Pro Forma Consolidated Capital Assumes 0% risk weighting on net subordinated debt proceeds (1) For illustrative purposes only, assumes a $100 million subordinated debt raise, net of assumed offering and underwriting expenses, for net proceeds of $98.3 million. Qualifying subordinated debt is incl

  38. Slide 38: Double Leverage and Interest Coverage

    38 Fiscal Year Ended, Three Months Ended 6/30/2026, ($ in millions) 2022 2023 2024 2025 Standalone Offering Adjustments Pro Forma 1 Double Leverage Bank-Level Equity $272 $313 $831 $924 $1,329 (34) $1,295 Consolidated Equity 273 315 730 855 1,203 (17) 1,187 Double Leverage Ratio 100% 99% 114% 108% 1

  39. Slide 39: Income Statement

    39 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Income Statement ($ in 000s) 2026 2026 2025 2025 2025 2025 Interest income $ 136,987 $ 105,456 $ 111,140 $ 111,209 $ 111,858 $ 110,786 Interest expense 43,945 33,613 36,218 37,439 37,625 37,799 Noninterest income 13,849 12,853 11,625 11,585

  40. Slide 40: Balance Sheet

    40 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Balance sheet (at period end), $ in 000s 2026 2026 2025 2025 2025 2025 Assets $ 10,991,300 $ 7,927,711 $ 7,920,626 $ 7,889,037 $ 8,053,084 $ 7,838,090 Average interest-earning assets 9,198,632 7,279,297 7,363,743 7,308,536 7,248,238 7,171,9

  41. Slide 41: 2026 Q2 Non-Interest Expense Composition

    41 June 30, 2026 Non-Interest expense ($ in 000s) Unadjusted Merger-Related Charges Adjusted Salaries and Wages 41,378 16,349 25,029 Pensions and Other Employee Benefits 5,787 – 5,787 Occupancy 6,654 1,600 5,054 Equipment Rentals, Depreciation and Amortization 6,934 2,024 4,910 ATM, Card and Network

  42. Slide 42: Notes on Non-GAAP Financial Measures: Tangible Book Value

    42 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2026 2026 2025 2025 2025 2025 Common Shareholders’ Equity $ 1,191,766 $ 854,091 $ 844,236 $ 811,818 $ 769,605 $ 747,587 Less: Goodwill and intangible assets, net 199,099 74,316 75,896 79,580 83,263 85,844 Tangible common equity (non-GAAP) 9

  43. Slide 43: Notes on Non-GAAP Financial Measures: Net Interest Margin

    43 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2026 2026 2025 2025 2025 2025 Net interest income $ 93,042 $ 71,843 $ 74,922 $ 73,770 $ 74,233 $ 72,987 Taxable-equivalent adjustments 2,036 1,628 1,420 1,305 1,059 881 Net interest income (Fully Taxable-Equivalent - FTE) $ 95,078 $ 73,471

  44. Slide 44: Notes on Non-GAAP Financial Measures: Returns

    44 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

  45. Slide 45: Notes on Non-GAAP Financial Measures: Average Equity and Assets

    45 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2026 2026 2025 2025 2025 2025 Average common shareholders' equity $ 1,053,502 $ 861,274 $ 832,411 $ 782,577 $ 757,354 $ 740,417 Average goodwill and other intangibles (159,202) (76,923) (79,338) (83,079) (85,562) (88,899) Average deferred t

  46. Slide 46: Notes on Non-GAAP Financial Measures: Adjusted EPS and Efficiency

    46 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2026 2026 2025 2025 2025 2025 Net income applicable to common shares $ 9,257 $ 27,124 $ 30,019 $ 29,739 $ 29,672 $ 26,976 Add back significant items (tax effected): Merger-related 28,221 1,114 - - - - Total significant items 28,221 1,114 -

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