Burke & Herbert Financial Services Corp. reported significant financial growth in its latest quarterly results, driven largely by its recent merger with Summit Financial Group, Inc. For the three months ending March 31, 2025, the company recorded a net income of $27.2 million, a substantial increase from $5.2 million in the same period last year. This growth was primarily attributed to a rise in net interest income, which surged to $73.0 million from $22.1 million, reflecting the impact of the merger and the acquisition of higher-yielding assets.
The company's total assets increased to $7.84 billion as of March 31, 2025, up from $7.81 billion at the end of 2024. Total deposits also saw a modest rise, reaching $6.54 billion, compared to $6.51 billion in the previous quarter. However, gross loans decreased slightly to $5.65 billion from $5.67 billion, indicating a strategic shift in the loan portfolio to align with the company's risk profile. The allowance for credit losses stood at $67.8 million, representing 1.20% of gross loans, reflecting a cautious approach to credit risk management.
Operationally, the merger with Summit has expanded Burke & Herbert's footprint, increasing its branch network to 77 locations across multiple states, including Virginia and West Virginia. The company reported a total employee count of 814, up from 381 a year earlier, indicating a significant increase in workforce to support its expanded operations. Non-interest income also rose sharply to $10.0 million, up from $4.3 million, driven by increased service charges and fees, as well as growth in card revenue.
Looking ahead, Burke & Herbert's management expressed optimism about the company's growth trajectory, citing the potential for further integration of Summit's operations and the expected benefits from a larger customer base. However, they acknowledged ongoing challenges in the commercial real estate sector, which constitutes a significant portion of their loan portfolio. The company remains focused on managing interest rate risk and maintaining adequate liquidity to support its strategic objectives.
About Burke & Herbert Financial Services Corp.
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