Burke & Herbert Financial Services Corp. reported a significant increase in financial performance for the third quarter and the first nine months of 2025, driven largely by the full integration of operations following its merger with Summit Financial Group, Inc. Net income applicable to common shares for the nine months ended September 30, 2025, reached $86.4 million, a substantial rise from $15.5 million during the same period in 2024. This increase was attributed to a full nine months of combined income post-merger, alongside a rise in net interest income, which totaled $221.0 million, up from $155.1 million year-over-year.
The company’s total assets increased to $7.9 billion as of September 30, 2025, compared to $7.8 billion at the end of 2024. However, gross loans decreased slightly to $5.6 billion from $5.7 billion, while total deposits fell to $6.4 billion from $6.5 billion. The decline in deposits was primarily due to a reduction in brokered deposits, which decreased by $120.4 million. Short-term borrowings increased to $450 million, reflecting a strategic decision to manage liquidity needs effectively.
Operationally, Burke & Herbert has expanded its customer base and enhanced its service offerings, with total non-interest income rising to $34.5 million for the nine months ended September 30, 2025, compared to $24.4 million in the prior year. This growth was driven by increases in fiduciary and wealth management services, as well as bank debit and card revenue. The company also reported a decrease in non-interest expenses to $147.1 million, reflecting ongoing operational efficiencies post-merger.
Looking ahead, Burke & Herbert remains optimistic about its growth trajectory, emphasizing its commitment to managing credit risk and interest rate exposure effectively. The company’s allowance for credit losses stood at $67.6 million, representing 1.22% of gross loans, indicating a stable asset quality despite the economic challenges. The management anticipates continued improvement in financial performance, supported by strategic initiatives and a focus on enhancing customer relationships across its expanding geographic footprint.
About Burke & Herbert Financial Services Corp.
Burke & Herbert Financial Services Corp. is a Virginia-based bank holding company owning Burke & Herbert Bank & Trust Company, a community-oriented commercial bank serving small to medium-sized businesses, professionals, non-profits, and individuals. It offers deposit accounts, commercial and residential loans, treasury management, and wealth services primarily in northern Virginia, West Virginia, and surrounding states. The company emphasizes personalized service, local decision-making, disciplined credit practices, and modern banking technology.
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