Burke & Herbert Financial Services (BHRB) investor relations material

Executive summary

• Q3 net income applicable to common shares was $36.2 million, or $1.78 diluted EPS; adjusted operating income was $43.4 million, or $2.14 adjusted diluted EPS.

• The May 1 LINKBANCORP merger contributed a full quarter of results; merger-related metrics met or exceeded announcement expectations.

Financial highlights

• Total revenue was $119.7 million, up from $106.9 million QoQ; net interest income was $105.0 million, up from $93.0 million.

• Net income applicable to common shares was $36.2 million versus $9.3 million in Q2; GAAP diluted EPS was $1.78 versus $0.50, and adjusted diluted EPS was $2.14 versus $2.03.

• Noninterest expense was $74.5 million, including $9.1 million in merger costs; adjusted noninterest expense was $65.3 million, up from $61.1 million QoQ.

• Gross loans were $8.06 billion, deposits $8.96 billion and assets $11.03 billion at Sept. 30; gross loans rose $62.2 million QoQ.

• New relationship-based loan commitments totaled $406.9 million.

Outlook and guidance

• FY26 loans were expected at $8.10–$8.15 billion and deposits at $9.05–$9.15 billion.

• FY26 non-FTE net interest income was guided to $372–$376 million; noninterest income $53–$56 million; core noninterest expense $242–$245 million.

• FY26 provision expense was estimated at $2.1–$2.4 million, effective tax rate at 19%–20%, and weighted-average diluted shares at 18.5–18.6 million.

• Merger integration, synergies and cost savings remain execution priorities, with uncertainty around timing, cost and realization; debit interchange fee limits expected from July 1, 2027 may meaningfully reduce interchange revenue.