Burke & Herbert Reports Strong Q2 2025 Results

Burke & Herbert Bank & Trust Company ( (BHRB) ) has released its Q2 earnings. Here is a breakdown of the information Burke & Herbert Bank & Trust Company presented to its investors.

Burke & Herbert Financial Services Corp. is a financial holding company for Burke & Herbert Bank & Trust Company, the oldest continuously operating bank under its original name in the greater Washington, D.C. area, offering a comprehensive range of banking, borrowing, and investment solutions across multiple states.

In its second quarter of 2025 earnings report, Burke & Herbert Financial Services Corp. announced a net income applicable to common shares of $29.7 million, with a diluted earnings per share of $1.97. The board of directors also declared a regular cash dividend of $0.55 per share, reflecting the company’s commitment to returning value to its shareholders.

Key financial highlights for the quarter included an annualized return on average assets of 1.51% and a return on average equity of 15.50%. The company reported total gross loans of $5.6 billion and total deposits of $6.4 billion, with a loan-to-deposit ratio of 87.5%. The net interest margin was slightly reduced to 4.17%, attributed to a lower yield on the loan portfolio. Despite a decrease in total deposits, primarily due to a reduction in brokered deposits, the company maintained a strong balance sheet with ample liquidity of $4.4 billion.

Burke & Herbert continues to be well-capitalized, with a Common Equity Tier 1 capital ratio of 12.2% and a total risk-based capital ratio of 15.3%. The company is focused on expense management while investing in strategic expansions in Bethesda, Maryland, and Virginia, aiming to enhance its relationship-based approach and deliver comprehensive financial services.

Looking forward, Burke & Herbert’s management remains optimistic about the second half of 2025, emphasizing their commitment to being a trusted advisor and delivering increased value to customers, employees, communities, and shareholders, regardless of market developments.