Burke & Herbert Financial Services Corp. reported significant financial improvements in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved a net income of $29.9 million for the second quarter, a substantial recovery from a net loss of $16.9 million in the same period last year. For the first half of 2025, net income applicable to common shares reached $56.6 million, compared to a loss of $11.9 million in the first half of 2024. This turnaround is attributed to a full six months of combined operations following the merger with Summit Financial Group, which was completed on May 3, 2024.
Total interest income surged to $111.9 million for the second quarter, up from $96.1 million a year earlier, driven by increased loan volumes and higher interest rates on earning assets. Net interest income for the first half of 2025 was $147.2 million, a significant increase from $81.9 million in the prior year. The company recorded a provision for credit losses of $1.1 million for the first half of 2025, a sharp decline from $23.2 million in the same period of 2024, which included a one-time provision related to the merger.
Operationally, Burke & Herbert's total assets grew to $8.05 billion as of June 30, 2025, compared to $7.81 billion at the end of 2024. The loan portfolio decreased slightly to $5.59 billion, down from $5.67 billion, while total deposits fell to $6.39 billion from $6.52 billion. The decrease in deposits was primarily due to a reduction in brokered deposits, which dropped significantly from $244.8 million to $132.1 million. The company also reported a total of 819 full-time employees, a decrease from 850 a year earlier.
The merger with Summit Financial Group has been a pivotal strategic development for Burke & Herbert, enhancing its market presence and operational scale. The merger has allowed the company to leverage synergies and cost savings, contributing to improved financial performance. The company’s capital ratios remain strong, with a Common Equity Tier 1 capital ratio of 12.22% as of June 30, 2025, well above the regulatory minimum. Looking ahead, Burke & Herbert anticipates continued growth and stability, supported by its diversified loan portfolio and strategic focus on managing interest rate risk and credit quality.
About Burke & Herbert Financial Services Corp.
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