Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

Burke & Herbert Financial Services Q4 Net Income – $19.6M

Burke & Herbert Financial Services Corp. (NASDAQ: BHRB) has released its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a net income applicable to common shares of $19.6 million, or $1.30 per diluted common share for the quarter. The adjusted (non-GAAP) operating net income applicable to common shares for the same period was $26.6 million, or $1.77 per diluted common share.

The company's total gross loans at the end of the fourth quarter were $5.7 billion, representing an increase of $98.2 million from the previous quarter. However, total deposits decreased by $85.6 million from the previous quarter, primarily due to a decrease in brokered deposits.

Net interest income for the quarter was $70.7 million, down from $73.2 million in the previous quarter. This decrease was primarily attributed to lower loan interest income and a decrease in deposit cost. The net interest margin on a fully taxable equivalent basis decreased to 3.91% from 4.07% in the third quarter of 2024, mainly due to lower accelerated loan accretion income.

The company recorded a provision expense on loans in the fourth quarter of 2024 of $1.0 million, reflecting relatively stable asset quality and steady loan growth during the quarter. The allowance for credit losses at December 31, 2024, was $68.0 million, or 1.2% of total loans.

Total non-interest income for the fourth quarter of 2024 was $11.8 million, compared to $10.6 million in the prior quarter, primarily due to a gain on the sale of securities and an increase in insurance proceeds from the company’s owned life insurance policies.

Non-interest expense for the fourth quarter of 2024 was $61.4 million and included $8.9 million of merger-related charges.

The company's common equity tier 1 capital to risk-weighted asset and total risk-based capital to risk-weighted asset ratios were 11.5% and 14.6%, respectively, as of December 31, 2024, significantly above the well-capitalized requirements of 6.5% and 10%, respectively.

In addition, the company's wholly-owned bank subsidiary, Burke & Herbert Bank & Trust Company, also continues to be well-capitalized, with capital ratios that are above regulatory requirements.

These results reflect the financial benefits of the merger with Summit and the successful integration of systems, as stated by David P. Boyle, the company's Chair and CEO. The company looks forward to delivering increased value for its customers, employees, communities, and shareholders in 2025. Today the company's shares have moved 1.0% to a price of $62.4. For the full picture, make sure to review Burke & Herbert Financial Services's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS