Burke & Herbert Financial Services (BHRB) investor relations material

Executive summary

• Net income for Q2 2025 was $29.9 million, with diluted EPS of $1.97, reflecting strong profitability and operational discipline.

• Net income applicable to common shares was $56.6 million for the six months ended June 30, 2025, compared to a net loss of $11.9 million for the same period in 2024, reflecting a full period of combined operations post-merger.

• Total assets reached $8.1 billion, with a stable deposit base of $6.4 billion and gross loans of $5.6 billion as of June 30, 2025.

• Maintains a community banking focus with a relationship-driven model and a long-term, moderate risk profile.

• Board declared a $0.55 per share regular cash dividend, payable September 2, 2025.

Financial highlights

• Net interest margin (FTE, non-GAAP) was 4.17% for Q2 2025, with an efficiency ratio of 56.6%.

• Net interest income for Q2 2025 was $74.2 million, up from $73.0 million in Q1 2025.

• Non-interest income rose to $12.9 million in Q2 2025, driven by life insurance proceeds and card network income.

• Book value per common share was $51.28; tangible book value per share was $45.73.

• Allowance coverage ratio stood at 1.20%, with a loan-to-deposit ratio of 87.5%.

Outlook and guidance

• Strategic focus remains on expanding markets, growing fee revenue, and maintaining a fortress balance sheet.

• Management expects continued strong performance in the second half of 2025, emphasizing relationship-based lending and prudent risk management.

• Management expects federal and private sector return-to-office mandates and lower rates could benefit the CRE office market, but uncertainty remains.

• CRE exposure is closely monitored, representing 49.5% of gross loans at June 30, 2025.

• Liquidity and capital positions are considered adequate to support continued growth.