**Burke & Herbert Financial Services Corp. Reports Increased Net Income for 2025**
Burke & Herbert Financial Services Corp. (BHRB) reported a net income applicable to common shares of $116.4 million for the year ended December 31, 2025, a significant increase of $81.4 million compared to $35.0 million for the year ended December 31, 2024. This surge in profitability was primarily attributed to higher interest rates on earning assets and a slight decrease in non-interest expenses. Basic net income per common share was $7.76, while diluted net income per common share was $7.72. The company's return on average assets was 1.48%, and return on average equity was 14.76%.
Net interest income rose to $295.9 million in 2025 from $226.7 million in 2024, driven by higher interest income on loans and securities, partially offset by increased deposit interest expense. The tax-adjusted net interest margin increased to 4.14% from 3.10% in the previous year. Non-interest income also saw an increase of $10.8 million, reaching $46.1 million, primarily due to the merger with Summit Financial Group, Inc. This included gains in company-owned life insurance and bank debit card revenue.
The company's total consolidated assets reached $7.9 billion as of December 31, 2025, compared to $7.8 billion the previous year. Gross loans totaled $5.4 billion, with the allowance for credit losses at $67.8 million, representing 1.26% of total gross loans. Total deposits amounted to $6.4 billion, while short-term borrowings increased to $450.0 million. The company's capital ratios remained strong, with a Common Equity Tier 1 to risk-weighted assets ratio of 13.45% and a total risk-based capital ratio of 16.17%, exceeding regulatory requirements for "well capitalized" status.
Looking ahead, Burke & Herbert is focused on completing its pending merger with LINKBANCORP, Inc., which is expected to increase the company's total assets beyond $10 billion. This will subject the company to additional regulatory oversight, including direct examination by the Consumer Financial Protection Bureau (CFPB). The company anticipates incurring approximately $52.1 million in merger and integration-related pre-tax costs. The company also announced a cash dividend of $0.55 per share on its outstanding Common Stock, payable on March 2, 2026, to shareholders of record as of February 13, 2026.
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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