Burke & Herbert Financial Services Corp. · NASDAQ:BHRB
Burke & Herbert Financial Services — Q2 2026 Earnings Presentation
24 slides from Burke & Herbert Financial Services's earnings presentation, July 2026
Slide 1: 2Q26 Update (Nasdaq: BHRB)
2Q26 Update (Nasdaq: BHRB) July 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 that the integration of LNKB may be more difficult, time-consuming or costly than expected; revenues following the merger may be lower than expected; Burke & Herbert’s success in executing its business plans and strategies and managing the r
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 174 Years Providing Service Beyond Expectations More than 100 locations across 6 states Total Assets $11.0 Billion Headquarters: Alexandria, VA Total Gross Loans $8.0 Billion Total Deposits $9.0 Billion Return on Assets / Adjusted1 0.37% / 1.50% Return on Common Equity / Adjusted1 3.53% / 1
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: 2Q26 At a Glance
2Q26 At a Glance Highlights Built for the Long-Term $9.3 million $37.5 million • Our objective is to build and maintain a fortress Net Income to Adjusted Net Loan to Deposit Ratio balance sheet Common Income1 to Common 89.2% - Maintain credit discipline through the cycle $0.50 $2.03 - Ensure proper
Slide 9: Announcement Estimates vs. Updated Estimates
Announcement Estimates vs. Updated Estimates Forecasted at June 30, 2026 (in millions) unless otherwise noted Announcement1 • Accretable loan rate mark came in at $55.4 million versus Accretable loan rate mark $35.7 $55.4 $35.7 million, driven by favorable rate changes; those same rate moves shifted
Slide 10: Income Statement Highlights as of 2Q26
Income Statement Highlights as of 2Q26 2Q26 Operating Net Income1 2026 Full Year Expectations June 30, March 31, 2026 2026 • Loans are expected to be between $8.15 billion - $8.30 3 months ended 3 months ended billion Net income applicable to common shares $ 9,263 $ 27,124 • Deposits are expected to
Slide 11: Loan Portfolio as of 2Q26
Loan Portfolio as of 2Q26 ($ in 000s) Commercial Real Estate $ by Asset Class % by Asset Class Category Retail Real Estate $875,196 22% Office Bldgs. / Condos 707,851 18% Residential Multi-Family 695,718 18% $1,605,524 Industrial / Warehouse 445,472 11% Hotels/Motels 417,232 11% Other 349,993 9% Com
Slide 12: Security Portfolio as of 2Q26
Security Portfolio as of 2Q26 ($ in 000s) Net Unrealized Category Amortized Cost WA Yield Asset-Backed Losses $47,017 Other U.S Treasury & Municipal $ 49,887 $ 1,157,655 3.33% Non-Agency $36,701 Agency, U.S. Treasury & Agency 9,427 158,373 1.34% CMBS, $93,347 $148,946 Non-Agency RMBS 8,258 380,791 4
Slide 13: Funding Sources as of 2Q26
Funding Sources as of 2Q26 ($ in 000s) Category Average Rate QTD Demand (non-interest bearing) −% Time Deposits & Demand (interest bearing) 1.95 % Other, Demand (non- $1,615,756 interest), Money Market & Savings 1.95 % $2,058,076 Brokered CDs & Time Deposits 3.27 % Total Interest-Bearing Deposits 2.
Slide 14: Capital Ratio Trends
Capital Ratio Trends 1 Common Equity Tier 1 Ratio Total Capital Ratio Capital Management 16.2% 16.5% 15.4% 14.5% • We take a forward-looking, disciplined approach 13.5% 13.8% 12.8% 11.8% to capital management that emphasizes acceptable risk-adjusted returns over the long- term • Our capital manageme
Slide 15: Asset Quality Trends
Asset Quality Trends Allowance Coverage Ratio NCOs / Average Loans (annualized) Credit Management in bps 1.22% 1.26% 1.26% • Our objective is to maintain a moderate risk 1.18% profile through the economic cycle • Credit risk management is embedded in our risk culture and in our decision-making 6.5 p
Slide 16: Final Thoughts
Final Thoughts • Our business model is built on customer service and is designed to consistently deliver top quartile returns relative to our peers • Our approach is concentrated on growing and deepening relationships across our businesses that meet our risk/return measures • We are focused on our s
Slide 17: Appendix: Income Statement and Per Share Information
Appendix: Income Statement and Per Share Information June 30, March 31, Dec. 31, Sept. 30, June 30, Income Statement ($ in 000s) 2026 2026 2025 2025 2025 Interest income $ 136,987 $ 105,456 $ 111,140 $ 111,209 $ 111,858 Interest expense 43,939 33,613 36,218 37,439 37,625 Noninterest income 13,849 12
Slide 18: Appendix: Balance Sheet Trends
Appendix: Balance Sheet Trends June 30, March 31, Dec. 31, Sept. 30, June 30, Balance Sheet (at period end), $ in 000s 2026 2026 2025 2025 2025 Assets $ 10,992,498 $ 7,927,711 $ 7,920,626 $ 7,889,037 $ 8,053,084 Average interest-earning assets 9,198,632 7,279,297 7,363,743 7,308,536 7,248,238 Loans
Slide 19: 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 20: 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 21: 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 22: 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 23: Appendix: Notes on Non-GAAP Financial Measures
Appendix: Notes on Non-GAAP Financial Measures June 30, March 31, Dec. 31, Sept. 30, June 30, 2026 2026 2025 2025 2025 Average common shareholders' equity $ 1,053,502 $ 861,274 $ 832,411 $ 782,577 $ 757,354 Average goodwill and other intangibles (159,202) (76,923) (79,338) (83,079) (85,562) Average
Slide 24: 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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