Burke & Herbert Financial Services Corp. has recently released its 10-K report, providing insights into its financial performance and operations. The company operates as the bank holding company for Burke & Herbert Bank & Trust Company, offering a range of community banking products and services in Northern Virginia. These include consumer and commercial deposit products, loans, treasury and cash management services, as well as online and mobile banking, and wealth and trust services. The bank, which was founded in 1852 and is headquartered in Alexandria, Virginia, has over 20 branches across Northern Virginia and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland.
In its 10-K report, Burke & Herbert Financial Services Corp. disclosed that as of December 31, 2023, it had total consolidated assets of $3.6 billion, gross loans of $2.1 billion, total deposits of $3.0 billion, and total shareholders’ equity of $314.8 million. The company also reported having 400 full-time employees at the end of 2023.
One notable development highlighted in the report is the pending merger with Summit Financial Group, Inc. According to the report, the merger agreement between Burke & Herbert and Summit Financial Group, Inc. was approved by the respective shareholders of both companies on December 6, 2023. The merger is expected to close in the second quarter of 2024, subject to regulatory approvals and customary closing conditions.
The 10-K report also delves into critical accounting policies and estimates, emphasizing the company’s adherence to accounting principles generally accepted in the United States of America (“GAAP”). It outlines the significant accounting policies, including the determination of the allowance for credit losses and income taxes, and highlights the complexity of making estimates, assumptions, and judgments in preparing financial statements.
Additionally, the report addresses the current economic environment in the financial services industry, specifically highlighting concerns in the commercial real estate (“CRE”) sector. It mentions the impact of rising interest rates and higher vacancies on the sector, which has raised the prospect of default that borrowers may face due to the record amount of upcoming maturities.
The market has reacted to these announcements by moving the company's shares -3.5% to a price of $54.13. If you want to know more, read the company's complete 10-K report here.
