Banks and financial holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel III Framework, an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on AFS securities is not included in computing regulatory capital. Management believes as of March 31, 2026, the Company and the Bank meet all capital adequacy requirements to which they are subject.

“Prompt corrective action” regulations provide five classifications: “well capitalized”, “adequately capitalized”, “undercapitalized”, “significantly undercapitalized”, and “critically undercapitalized”, although these terms are not used to represent overall financial condition. If “adequately capitalized”, regulatory approval is required to accept brokered deposits. If “undercapitalized”, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of March 31, 2026, and December 31, 2025, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action.”


	Actual				Minimum Required Capital - Basel III			Minimum Required to be Well Capitalized
	Amount		Ratio		Amount		Ratio	Amount		Ratio
As of March 31, 2026
Total Capital to risk weighted assets
Consolidated	$	1,026,838	16.52	%	$	652,804	≥ 10.5%	$	621,718	N/A
Burke & Herbert Bank & Trust	1,010,788		16.29		651,547		≥ 10.5	620,521		≥ 10.0%
Tier 1 (Core) Capital to risk weighted assets
Consolidated	884,378		14.22		528,460		≥ 8.5	497,374		N/A
Burke & Herbert Bank & Trust	939,838		15.15		527,443		≥ 8.5	496,417		≥ 8.0
Common Tier 1 (CET 1) to risk-weighted assets
Consolidated	856,634		13.78		435,203		≥ 7.0	404,117		N/A
Burke & Herbert Bank & Trust	939,838		15.15		434,365		≥ 7.0	403,339		≥ 6.5
Tier 1 (Core) Capital to average assets (leverage ratio)
Consolidated	884,378		11.27		313,866		≥ 4.0	392,332		N/A
Burke & Herbert Bank & Trust	939,838		11.97		314,043		≥ 4.0	392,554		≥ 5.0

As of December 31, 2025
Total Capital to risk weighted assets
Consolidated	$	1,004,898	16.17	%	$	652,648	≥ 10.5%	$	621,570	N/A
Burke & Herbert Bank & Trust	986,269		15.92		650,649		≥ 10.5	619,665		≥ 10.0%
Tier 1 (Core) Capital to risk weighted assets
Consolidated	863,657		13.89		528,334		≥ 8.5	497,256		N/A
Burke & Herbert Bank & Trust	915,250		14.77		526,716		≥ 8.5	495,732		≥ 8.0
Common Tier 1 (CET 1) to risk-weighted assets
Consolidated	835,976		13.45		435,099		≥ 7.0	404,020		N/A
Burke & Herbert Bank & Trust	915,250		14.77		433,766		≥ 7.0	402,782		≥ 6.5
Tier 1 (Core) Capital to average assets (leverage ratio)
Consolidated	863,657		10.92		316,492		≥ 4.0	395,615		N/A
Burke & Herbert Bank & Trust	915,250		11.59		315,898		≥ 4.0	394,873		≥ 5.0

The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of March 31, 2026, approximately $359.2 million of retained earnings was available for dividend declaration consistent with the Company’s capital plan.