Burke & Herbert Financial Services reported second-quarter 2026 net income applicable to common shareholders of $9.3 million, down from $27.1 million in the first quarter. Operating net income rose to $37.5 million from $28.2 million, reflecting a sharp increase in merger-related expenses, which jumped to $28.2 million from $1.1 million.
On a balance-sheet basis, the company said it had $11.0 billion in total assets, $8.0 billion in gross loans, and $9.0 billion in deposits at June 30, 2026. Those figures came alongside a market capitalization of $1.5 billion.
Profitability metrics also showed a wide gap between reported and adjusted results. Return on average assets was 0.37%, while adjusted return on average assets was 1.50%. Return on average common equity was 3.53%, versus an adjusted 14.27%.
The bank operated more than 100 locations across six states, with 102 branches listed in the presentation. Virginia remained its largest market, with 42 branches and $4.1 billion in deposits. West Virginia followed with 28 branches and $2.3 billion in deposits, while Maryland had 18 branches and $908 million in deposits. Pennsylvania had 8 branches and $1.2 billion in deposits, and the “other” category accounted for 6 branches and $340 million in deposits.
The company also highlighted its deposit and loan mix after recent acquisitions, noting former branch counts of 57 and 26 from prior deals. Its headquarters remained in Alexandria, Virginia.
Credit performance remained relatively stable in the broader historical chart shown in the presentation. Net charge-offs as a share of average loans were 0.10% in 2026 year-to-date, down from 0.18% in 2025 and 0.51% in 2024. The company’s chart showed 0.39% in 2023, 0.59% in 2022, and 0.68% in 2021. The market has reacted to these announcements by moving the company's shares -0.53% to a price of $70.07. Check out the company's full 8-K submission here.
