Burke & Herbert Financial Services Corp. · NASDAQ:BHRB
Burke & Herbert Financial Services — Q4 2024 Earnings Presentation
16 slides from Burke & Herbert Financial Services's earnings presentation, January 2025
Slide 1: 4Q24 Update (Nasdaq: BHRB)
4Q24 Update (Nasdaq: BHRB) January 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. A quintessential community banking institution, we are headquartered in Old Town Alexandria, Virginia, and have served the banking, borrowing
Slide 4: Our Business Model
Our Business Model • Our business model is built on customer service - Understanding our customers’ financial goals and offering our diverse products and services to help them achieve financial prosperity • Our approach is concentrated on growing and deepening relationships across our businesses tha
Slide 5: An Attractive Footprint
An Attractive Footprint Indicates higher than U.S. National Average (1) Greater Washington D.C. Charleston, WV Eastern Shore of MD (2) Capital of the U.S. Capital of West Virginia Population: 6.44mm Population: 70k Population: 252k Pop. CAGR: 1.01% Pop. CAGR: 0.24% Median HHI: $52k
Slide 6: Delivering on Expectations – Merger Related Statistics
Delivering on Expectations – Merger Related Statistics Aug. 24, June 30, Sept. 30, Dec. 31, Merger Related Cost Saves Key merger-related metrics 20231 2024 2024 2024 $1.1MM $1.4MM Tangible book value per common share2 $34.57 $39.11 $42.32 $42.06 Goal $20MM Tangible common equity/tangible assets2
Slide 7: Balance Sheet Trends
Balance Sheet Trends Balance Sheet ($ in 000s) Dec. 31, 2024 Sept. 30, 2024 June 30, 2024 Highlights Assets Cash and Cash Equivalents $ 135,314 $ 291,765 $ 211,920 • Our objective is to build and maintain a fortress Investments 1,465,930 1,453,263 1,430,039 balance sheet Loans Held for Sale 2,331 4,
Slide 8: Income Statement Trends
Income Statement Trends Income Statement ($ in 000s) Dec. 31, 2024 Sept. 30, 2024 Operating Net Income (non-GAAP) Dec. 31, 2024 Sept. 30, 2024 Interest income 3 months ended 12 months ended 3 months ended 9 months ended 3 months ended 3 months ended Loans $ 97,940 $ 311,421 $ 103,730 $ 213,481 Net i
Slide 9: Loan Portfolio as of 4Q24
Loan Portfolio as of 4Q24 ($ in 000s) Portfolio Commercial Real Estate Category $ by Asset Class % by Asset Class $5,672,236 Residential $1,173,749 Retail Real Estate $ 577,747 22% Multi-Family 491,924 19% Office Bldgs/Condos 398,331 15% Commercial Real Estate Hotels/Motels 375,433 14% $2,637,802 Ow
Slide 10: Security Portfolio as of 4Q24
Security Portfolio as of 4Q24 ($in 000s) Portfolio FV Net Unrealized Category Amortized Cost WA Yield $1,432,371 Losses Other U.S. Treasury & Agency $ 16,492 $ 165,619 1.31% Asset-Backed $31,820 U.S Treasury & Municipal 78,457 777,181 2.76% $64,056 Agency Agency RMBS 4,058 57,244 3.63% Non-Agency $1
Slide 11: Funding Sources as of 4Q24
Funding Sources as of 4Q24 ($ in 000s) Deposits $6,515,239 Category Average Rate QTD Demand (non-interest bearing) −% Time Deposits & Other Demand (non- Demand (interest bearing) 2.51% $1,008,477 interest) Money Market & Savings 1.60% $1,379,940 Brokered Certificate of Deposits 4.45% Time Deposits &
Slide 12: Capital Ratio Trends
Capital Ratio Trends 1 Common Equity Tier 1 Ratio Total Capital Ratio Capital Management • We take a forward-looking, disciplined approach 16.6% 17.5% to capital management that emphasizes 13.9% 14.5% 14.6% acceptable risk-adjusted returns over the long- 10.9% 11.4% 11.5% term • Our capital manageme
Slide 13: Asset Quality Trends
Asset Quality Trends Allowance Coverage Ratio NCOs / Average Loans Credit Management • Our objective is to maintain a moderate risk profile through the economic cycle 1.16% 1.21% 1.22% 1.20% • Credit risk management is embedded in our 0.01% 0.01% 0.01% risk culture and in our decision-making process
Slide 14: Final Thoughts
Final Thoughts • Our business model is built on customer service - Understanding our customers’ financial goals and offering our diverse products and services to help them achieve financial prosperity • Our approach is concentrated on growing and deepening relationships across our businesses that me
Slide 15: 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 16: Appendix: Noninterest Expense Reconciliation
Appendix: Noninterest Expense Reconciliation Dec. 31, QTD Merger Adjusted non- Sept. 30, QTD Merger Adjusted non- 2024 Related interest expense 2024 Related interest expense 3 months ended 3 months ended Salaries and wages $ 25,818 $ (2,926) $ 22,892 $ 20,858 $ - $ 20,858 Pensions and other employee
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