Burke & Herbert Financial Services Corp. · NASDAQ:BHRB
Burke & Herbert Financial Services — Q1 2025 Earnings Presentation
18 slides from Burke & Herbert Financial Services's earnings presentation, April 2025
Slide 1: 1Q25 Update
1Q25 Update (Nasdaq: BHRB) April 2025 1
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This communication 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 193
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 $7.8 Billion Headquarters: Alexandria, VA Corporate Centers: Kingstowne, VA Moorefield, WV Total Gross Loans $5.6 Billion Total Deposits $6.5 Billion Return on Average Assets 1.41% 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: 1Q25 At a Glance
1Q25 At a Glance Highlights Built for the Long-Term Loan to Deposit Ratio $27.2 million • Our objective is to build and maintain a fortress 86.3% Net Income balance sheet - Maintain credit discipline through the cycle $1.80 Uninsured Deposit % Diluted Earnings per Share (EPS) - Ensure proper allowan
Slide 8: Loan Portfolio as of 1Q25 ($ in 000s)
Loan Portfolio as of 1Q25 ($ in 000s) Residential Commercial Real Estate Category $ by Asset Class % by Asset Class $1,161,406 Retail Real Estate $ 605,666 22% Multi-Family 520,362 19% Commercial Real Office Bldgs. / Condos 461,164 16% Estate Hotels / Motels 389,077 14% $2,809,573 Loans, gross Owner
Slide 9: Security Portfolio as of 1Q25 ($ in 000s)
Security Portfolio as of 1Q25 ($ in 000s) Net Unrealized Category Amortized Cost WA Yield Losses Asset-Backed Other $31,999 U.S. Treasury & Agency $ 13,448 $ 165,241 1.31% $60,786 U.S Treasury & Non-Agency Agency $151,793 Municipal 79,044 795,589 2.80% CMBS $135,010 Agency RMBS 3,411 57,304 3.57% No
Slide 10: Funding Sources as of 1Q25 ($ in 000s)
Funding Sources as of 1Q25 ($ in 000s) Category Average Rate QTD Time Deposits & Demand (non-interest bearing) −% Other $1,020,251 Demand (non- Demand (interest bearing) 2.16 % interest) Money Market & Savings 2.02 % $1,382,427 Brokered CDs 4.60 % Brokered CDs Time Deposits 3.68 % $246,902 Total Int
Slide 11: Capital Ratio Trends
Capital Ratio Trends 1,2 Common Equity Tier 1 Ratio Total Capital Ratio Capital Management 17.5% 16.6% 13.9% 14.5% 14.6% 14.7% • We take a forward-looking, disciplined 11.4% 11.5% 11.7% approach to capital management that 10.9% emphasizes acceptable risk-adjusted returns over the long-term • Our cap
Slide 12: Asset Quality Trends
Asset Quality Trends Allowance Coverage Ratio NCOs / Average Loans (annualized) Credit Management in bps 1.22% • Our objective is to maintain a moderate risk 1.16% 1.21% 1.20% 1.20% profile through the economic cycle • Credit risk management is embedded in our risk culture and in our decision-making
Slide 13: Final Thoughts
Final Thoughts • Our business model is built on customer service and is designed to consistently deliver top quartile returns relative to our peers • Our approach is concentrated on growing and deepening relationships across our businesses that meet our risk/return measures • We are focused on our s
Slide 14: Appendix: Income Statement and Per Share Information
Appendix: Income Statement and Per Share Information March 31, Dec. 31, Sept. 30, June 30, March 31, Income Statement ($ in 000s) 2025 2024 2024 2024 2024 Interest income $ 110,786 $ 112,793 $ 118,526 $ 96,097 $ 38,745 Interest expense 37,799 42,083 45,347 36,332 16,614 Noninterest income 10,023 11,
Slide 15: 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 2025 2024 2024 2024 2024 Assets $ 7,838,090 $ 7,812,185 $ 7,864,913 $ 7,810,193 $ 3,696,390 Average interest-earning assets 7,171,931 7,273,770 7,238,636 5,994,383 3,377,092 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 busines
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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