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Burke & Herbert Financial Services Corp. Announces Second Quarter 2026 Results and Declares Common Stock Dividend
For Immediate Release
July 23, 2026
Alexandria, VA – Burke & Herbert Financial Services Corp. (the “Company” or “Burke & Herbert”) (Nasdaq: BHRB) reported financial results for the quarter ended June 30, 2026. In addition, at its meeting on July 23, 2026, the board of directors declared a $0.55 per share regular cash dividend to be paid on September 1, 2026, to shareholders of record as of the close of business on August 14, 2026.
From David P. Boyle, Company Chair and Chief Executive Officer
“The successful integration of LINKBANCORP brings together two organizations with a shared commitment to being the quintessential community bank in our markets - one that is deeply invested in the people and businesses we serve every day. Our operating results for the second quarter reflect the strength of that combination, demonstrating both the financial benefits of the acquisition and the power of our disciplined execution. As we move forward, we remain firmly committed to delivering top‑quartile financial performance, just as we achieved following the Summit merger, and to creating sustained value for our shareholders, customers, employees, and the communities we call home.”
Q2 2026 Highlights
•On May 1, 2026, the Company announced the completion of the merger of LINKBANCORP, Inc. (“LNKB”) with and into Burke & Herbert and the merger of LINKBANK with and into Burke & Herbert Bank & Trust Company, effective May 1, 2026. The merger created a financial holding company with approximately $11.0 billion in assets and over 100 branches across Delaware, Kentucky, Maryland, Pennsylvania, Virginia, and West Virginia.
•Related to the merger, the total aggregate consideration paid was approximately $329.7 million and resulted in approximately $82.1 million of preliminary goodwill subject to adjustment in accordance with ASC 805, Business Combinations.
•The Company reported net income applicable to common shares of $9.3 million for the quarter and diluted earnings per common share (“EPS”) of $0.50; reflective of merger and other related items, adjusted (non-GAAP1) operating net income applicable to common shares was $37.5 million for the quarter and adjusted (non-GAAP1) diluted EPS was $2.03.
•For the quarter, the annualized return on average assets (“ROA”) was 0.37%, the annualized return on average common equity (“ROCE”) was 3.53%, and the annualized return on average tangible common equity (“ROATCE”) (non-GAAP1) was 4.07%.
•On an adjusted basis (non-GAAP1), ROA was 1.50%, ROCE was 14.27%, and ROATCE was 16.45%.
•Total shareholders’ equity was $1.2 billion and tangible common equity to tangible assets (non-GAAP1) was 9.21%, reflecting the Company’s strong capital position.
•Ending total gross loans were $8.0 billion and ending total deposits were $9.0 billion; ending loan-to-deposit ratio was 89.2%. The net interest margin (non-GAAP1) was 4.15% for the three months ended June 30, 2026.

(1) Non-GAAP financial measures referenced in this release are used by management to measure performance in operating the business that management believes enhances investors’ ability to better understand the underlying business performance and trends related to core business activities. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the non-GAAP reconciliation tables in this release. Non-GAAP measures should not be used as a substitute for the closest comparable GAAP measurements.
(2) Ratios as of June 30, 2026, are estimated.
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•The balance sheet remains strong with ample liquidity. Total liquidity, including all available borrowing capacity with cash and cash equivalents, totaled $6.1 billion at the end of the second quarter.
•Asset quality metrics remain within the Company’s moderate risk profile with adequate reserve coverage.
•The Company continues to be well-capitalized, ending the quarter with 11.79%2 Common Equity Tier 1 capital to risk-weighted assets, 14.48%2 Total risk-based capital to risk-weighted assets, and a leverage ratio of 11.08%.2
Results of Operations reflecting the May 1, 2026 merger with LNKB and system & operational integration activities successfully completed in June 2026
Second Quarter 2026 compared to First Quarter 2026
The Company reported second quarter 2026 net income applicable to common shares of $9.3 million, or $0.50 per diluted common share, compared to first quarter 2026 net income applicable to common shares of $27.1 million, or $1.79 per diluted common share.
•Period-end total gross loans were $8.0 billion at June 30, 2026, an increase of $2.6 billion from March 31, 2026, mostly due to the merger. Additionally, the Company originated $333.0 million of new, relationship-based loan commitments during the quarter. During the month of April 2026, LNKB originated $78.2 million of new, relationship-based loan commitments.
•Period-end total deposits were $9.0 billion at June 30, 2026, an increase of $2.6 billion from March 31, 2026, mostly due to the merger. During the quarter, brokered deposits increased by $117.2 million and totaled $120.7 million at June 30, 2026, representing only 1.35% of total deposits.
•Net interest income for the quarter was $93.0 million compared to $71.8 million in the prior quarter due to an increase in interest income of $31.5 million, offset by an increase in interest expense of $10.3 million, primarily driven by the acquisition of LNKB.
•Net interest margin on a fully taxable equivalent basis (non-GAAP1) increased to 4.15% versus 4.09% in the first quarter of 2026, driven by growth in average interest-earning assets from the LNKB acquisition and higher securities yields, partially offset by lower loan yields and higher funding costs.
•Accretion income on loans during the quarter was $9.3 million, and the amortization expense impact on interest expense was $1.5 million, or 34.0 bps of net interest margin on an annualized basis in the second quarter of 2026. In the prior quarter, accretion income on loans during the quarter was $6.8 million, and the amortization expense impact on interest expense was $1.4 million, or 30.5 bps of net interest margin on an annualized basis.
•The cost of total deposits, including non-interest bearing deposits, was 1.75% in the second quarter of 2026, compared to 1.71% in the first quarter of 2026. The increase in the cost of deposits was mostly due to an increase in the rate paid on interest-bearing deposits and an increase in volume of interest-bearing deposits compared to the first quarter of 2026.
•The Company recorded credit provision expense in the second quarter of 2026 of $30.0 thousand on loans and a credit provision expense of $1.3 million on unfunded commitments. The Company’s allowance for credit losses as of June 30, 2026, was $94.5 million, or 1.2% of total loans. The credit provision expense increase in the unfunded commitment was primarily driven by a Day 2 impact of the LNKB acquisition.



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•Total non-interest income increased $1.0 million to $13.8 million in the second quarter of 2026, compared to $12.9 million in the first quarter of 2026 driven by favorable contributions from company-owned life insurance income, debit card-related revenue, and other non-interest income categories. These increases were partially offset by lower income from the sale of LNKB-acquired securities compared to the prior quarter.
•Non-interest expense for the second quarter of 2026 was $93.5 million compared to $51.4 million in the first quarter of 2026; the increase was primarily driven by the LNKB acquisition. The increase in expense included conversion and integration costs, professional fees, contract termination costs, and employee-related expenses.
Regulatory capital ratios2
The Company continues to be well-capitalized with capital ratios that are above regulatory requirements. As of June 30, 2026, our Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were 11.8%2 and 14.5%2, respectively, and significantly above the well-capitalized requirements of 6.5% and 10%, respectively. The leverage ratio was 11.1%2 compared to a 5% level to be considered well-capitalized.
Burke & Herbert Bank & Trust Company (the “Bank”), the Company’s wholly-owned bank subsidiary, also continues to be well-capitalized with capital ratios that are above regulatory requirements. As of June 30, 2026, the Bank’s Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were 13.3%2 and 14.3%,2 respectively, and significantly above the well-capitalized requirements. In addition, the Bank’s leverage ratio of 12.3%2 is considered to be well-capitalized.
For more information about the Company’s financial condition, including additional disclosures pertinent to recent events in the banking industry, please see our financial statements and supplemental information attached to this release.
About Burke & Herbert
Burke & Herbert Financial Services Corp. is the financial holding company for Burke & Herbert Bank & Trust Company. Burke & Herbert Bank & Trust Company is the oldest continuously operating bank under its original name headquartered in the greater Washington, D.C. metropolitan area. With over 100 branches across Delaware, Kentucky, Maryland, Pennsylvania, Virginia, and West Virginia, Burke & Herbert Bank & Trust Company offers a full range of business and personal financial solutions designed to meet customers’ banking, borrowing, and investment needs. Learn more at investor.burkeandherbertbank.com.
Cautionary Note Regarding Forward-Looking Statements
This communication includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including with respect to (or based on) the beliefs, goals, intentions, and expectations of Burke & Herbert regarding our: merger with LINKBANCORP, Inc., effective as of May 1, 2026, and the expected cost savings, synergies, returns, and other anticipated benefits from the integration of LNKB; revenues, earnings, earnings per share, loan production, asset quality, and capital levels, among other matters; estimates of the future costs and benefits of the actions we may take; assessments of expected losses on loans; assessments of interest rate and other market risks; ability to achieve financial and other strategic goals; and other statements that are not historical facts. Forward–looking statements are typically identified by such words as “believe,” “expect,” “anticipate,”



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“intend,” “outlook,” “estimate,” “forecast,” “project,” “will,” “should,” and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which change over time.
Additionally, forward–looking statements speak only as of the date they are made; Burke & Herbert does not assume any duty, and does not undertake, to update such forward–looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise. Furthermore, because forward–looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those indicated in or implied by such forward-looking statements as a result of a variety of factors, many of which are beyond the control of Burke & Herbert. Such statements are based upon the current beliefs and expectations of the management of Burke & Herbert and are subject to significant risks and uncertainties outside of its control. Caution should be exercised against placing undue reliance on forward-looking statements.
The factors that could cause actual results to differ materially include the following: the possibility that the anticipated benefits of the merger will not be realized when expected or at all, including as a result of the impact of, or problems arising from (if any), the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Burke & Herbert and LNKB do business; costs or difficulties associated with newly developed or acquired operations; diversion of management’s attention from ongoing business operations and opportunities; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all and to successfully integrate LNKB’s operations and those of Burke & Herbert; that the integration of LNKB may be more difficult, time-consuming or costly than expected; revenues following the merger may be lower than expected; Burke & Herbert’s success in executing its business plans and strategies and managing the risks involved in the foregoing; and risks related to the potential impact of global macroeconomic conditions and changes in general economic, political and market factors on the merger or our operations, generally (either nationally or locally in the areas in which we conduct, or will conduct, business), including inflation, changes in interest rates, market volatility and monetary fluctuations, and changes in federal government policies and practices, including the impact with respect to spending on industries concentrated in our market area, as well as the impact from tariffs on the markets we serve; increased competition; changes in consumer confidence and demand for financial services, including changes in consumer borrowing, repayment, investment, and deposit practices; changes in asset quality and credit risk; our ability to control costs and expenses; adverse developments in borrower industries or declines in real estate values; changes in and compliance with federal and state laws and regulations that pertain to our business and capital levels; our ability to raise capital as needed; the impact, extent and timing of technological changes; emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; the effects of any cybersecurity breaches or events; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts and tensions, or public health events (such as pandemics), and of governmental and societal responses thereto; and the other factors discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Burke & Herbert’s Annual Report on Form 10-K for the year ended December 31, 2025, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and other reports Burke & Herbert files with the SEC.






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Burke & Herbert Financial Services Corp.
Consolidated Statements of Income (unaudited)
(In thousands)
Three Months EndedSix Months Ended
June 30,March 31,June 30,
20262025202620262025
Interest income
Taxable loans, including fees$116,770 $96,803 $88,083 $204,853 $193,834 
Tax-exempt loans, including fees55 43 40 95 89 
Taxable securities11,329 9,303 9,758 21,087 18,790 
Tax-exempt securities7,605 3,939 6,082 13,687 7,206 
Other interest income1,228 1,770 1,493 2,721 2,725 
Total interest income136,987 111,858 105,456 242,443 222,644 
Interest expense
Deposits35,012 30,431 26,720 61,732 62,282 
Short-term borrowings5,897 4,438 4,590 10,487 7,630 
Subordinated debt2,990 2,730 2,269 5,259 5,459 
Other interest expense40 26 34 74 53 
Total interest expense43,939 37,625 33,613 77,552 75,424 
Net interest income93,048 74,233 71,843 164,891 147,220 
Credit loss expense - loans and available-for-sale securities30 717 213 243 1,617 
Credit loss (recapture) - off-balance sheet credit exposures1,349 (93)(201)1,148 (492)
Total provision for credit losses1,379 624 12 1,391 1,125 
Net interest income after credit loss expense91,669 73,609 71,831 163,500 146,095 
Non-interest income
Fiduciary and wealth management3,100 2,425 3,227 6,327 4,868 
Service charges and fees2,286 2,130 1,855 4,141 4,308 
Net (loss) gain on securities(1,868)38 1,799 (69)39 
Income from company-owned life insurance3,207 2,982 1,479 4,686 4,175 
Bank debit and other card revenue3,421 3,024 2,835 6,256 5,908 
Other non-interest income3,703 2,278 1,658 5,361 3,602 
Total non-interest income13,849 12,877 12,853 26,702 22,900 
Non-interest expense
Salaries and wages41,378 21,320 21,413 62,791 42,261 
Pensions and other employee benefits5,787 4,067 5,370 11,157 9,203 
Occupancy6,654 3,521 4,027 10,681 7,566 
Equipment rentals, depreciation and maintenance6,934 4,100 4,188 11,122 8,184 
Core deposit intangible amortization5,530 3,888 3,684 9,214 8,186 
ATM, card and network expense1,389 1,314 1,134 2,523 2,446 
FDIC and other regulatory assessments1,576 1,088 1,140 2,716 2,002 
Other operating24,258 10,007 10,425 34,683 19,121 
Total non-interest expense93,506 49,305 51,381 144,887 98,969 
Income before income taxes12,012 37,181 33,303 45,315 70,026 
Income tax expense
2,524 7,284 5,954 8,478 12,928 
Net income9,488 29,897 27,349 36,837 57,098 
Preferred stock dividends225 225 225 450 450 
Net income applicable to common shares$9,263 $29,672 $27,124 $36,387 $56,648 
Earnings per common share
Basic$0.50 $1.98 $1.80 $2.17 $3.78 
Diluted0.50 1.97 1.79 2.16 3.77 



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Burke & Herbert Financial Services Corp.
Consolidated Balance Sheets
(In thousands)
June 30, 2026December 31, 2025
(Unaudited)(Audited)
Assets
Cash and due from banks$116,443 $53,497 
Interest-earning deposits with banks52,260 235,630 
Cash and cash equivalents168,703 289,127 
Securities available-for-sale, at fair value1,963,038 1,615,954 
Restricted stock, at cost56,850 42,187 
Loans held-for-sale, at fair value2,074 365 
Loans7,999,765 5,387,676 
Allowance for credit losses(94,470)(67,823)
Net loans7,905,295 5,319,853 
Other real estate owned2,934 2,689 
Premises and equipment, net150,698 136,809 
Accrued interest receivable50,007 35,442 
Intangible assets80,754 41,747 
Goodwill118,345 34,149 
Company-owned life insurance269,046 213,200 
Other assets224,754 189,104 
Total Assets
$10,992,498 $7,920,626 
Liabilities and Shareholders’ Equity
Liabilities
Non-interest-bearing deposits$2,058,076 $1,336,380 
Interest-bearing deposits6,910,006 5,067,561 
Total deposits8,968,082 6,403,941 
Short-term borrowings525,000 450,000 
Subordinated debentures, net134,789 70,222 
Subordinated debentures owed to unconsolidated subsidiary trusts17,394 17,268 
Accrued interest and other liabilities143,856 124,546 
Total Liabilities 9,789,121 7,065,977 
Shareholders’ Equity
Preferred stock and surplus10,413 10,413 
Common stock10,368 7,800 
Common stock, additional paid-in capital734,764 405,922 
Retained earnings533,861 517,058 
Accumulated other comprehensive income (loss)(58,445)(58,960)
Treasury stock(27,584)(27,584)
Total Shareholders’ Equity 1,203,377 854,649 
Total Liabilities and Shareholders’ Equity $10,992,498 $7,920,626 




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Burke & Herbert Financial Services Corp.
Details of Net Interest Margin (unaudited)
For the three months ended
Details of Net Interest Margin - Yield Percentages
June 30March 31December 31September 30June 30
20262026202520252025
Interest-earning assets:
Loans:
Taxable loans
6.54 %6.64 %6.79 %6.76 %6.90 %
Tax-exempt loans
6.15 7.12 7.03 6.78 5.90 
Total loans
6.54 6.64 6.79 6.76 6.90 
Interest-earning deposits and fed funds sold
3.28 4.25 3.83 4.33 4.68 
Securities:
Taxable securities
4.23 3.78 3.78 3.86 3.83 
Tax-exempt securities
4.65 4.48 4.27 4.17 4.20 
Total securities
4.41 4.05 3.96 3.97 3.95 
Total interest-earning assets6.06 %5.97 %6.06 %6.11 %6.25 %
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
1.95 %1.98 %2.07 %2.18 %2.21 %
Money market & savings
1.95 1.83 1.94 2.02 2.01 
Brokered CDs & time deposits
3.27 3.11 3.23 3.25 3.37 
Total interest-bearing deposits
2.25 2.16 2.28 2.37 2.41 
Borrowings:
Short-term borrowings
3.64 3.78 3.93 3.85 3.91 
Subordinated debt borrowings and other
9.16 10.46 10.62 9.49 9.62 
Total interest-bearing liabilities
2.51 %2.44 %2.54 %2.63 %2.68 %
Taxable-equivalent net interest spread
3.55 3.53 3.52 3.48 3.57 
Benefit from use of non-interest-bearing deposits0.60 0.56 0.59 0.60 0.60 
Taxable-equivalent net interest margin (non-GAAP1)
4.15 %4.09 %4.11 %4.08 %4.17 %

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Burke & Herbert Financial Services Corp.
Details of Net Interest Margin (unaudited)
For the three months ended
(In thousands)
Details of Net Interest Margin - Average Balances
June 30March 31December 31September 30June 30
20262026202520252025
Interest-earning assets:
Loans:
Taxable loans
$7,156,639 $5,380,967 $5,482,574 $5,584,315 $5,627,236 
Tax-exempt loans
4,497 2,903 3,159 3,511 3,737 
Total loans
7,161,136 5,383,870 5,485,733 5,587,826 5,630,973 
Interest-earning deposits and fed funds sold
69,525 70,361 222,990 100,445 81,369 
Securities:
Taxable securities
1,137,512 1,128,486 1,031,603 1,034,136 1,059,310 
Tax-exempt securities
830,459 696,580 623,417 586,129 476,586 
Total securities
1,967,971 1,825,066 1,655,020 1,620,265 1,535,896 
Total interest-earning assets$9,198,632 $7,279,297 $7,363,743 $7,308,536 $7,248,238 
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
$2,706,931 $2,286,206 $2,315,064 $2,278,587 $2,239,100 
Money market & savings
2,106,402 1,675,034 1,705,028 1,660,401 1,648,338 
Brokered CDs & time deposits
1,421,123 1,044,605 1,100,215 1,135,546 1,173,213 
Total interest-bearing deposits
6,234,456 5,005,845 5,120,307 5,074,534 5,060,651 
Borrowings:
Short-term borrowings
653,886 496,501 453,436 453,486 457,775 
Subordinated debt borrowings and other
130,913 87,979 86,635 114,900 113,813 
Total interest-bearing liabilities
$7,019,255 $5,590,325 $5,660,378 $5,642,920 $5,632,239 
Non-interest-bearing deposits
$1,802,833 $1,332,090 $1,358,798 $1,338,188 $1,352,785 
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Burke & Herbert Financial Services Corp.
Supplemental Information (unaudited)
As of or for the three months ended
(In thousands, except ratios and per share amounts)


June 30March 31December 31September 30June 30
20262026202520252025
Per common share information
Basic earnings$0.50 $1.80 $2.00 $1.98 $1.98 
Diluted earnings0.50 1.79 1.98 1.97 1.97 
Cash dividends0.55 0.55 0.55 0.55 0.55 
Book value per common share
59.16 56.77 56.18 54.02 51.28 
Tangible book value per common share (non-GAAP1)
49.29 51.83 51.13 48.72 45.73 
Balance sheet-related (at period end, unless otherwise indicated)
Assets$10,992,498 $7,927,711 $7,920,626 $7,889,037 $8,053,084 
Average interest-earning assets
9,198,632 7,279,297 7,363,743 7,308,536 7,248,238 
Loans (gross)7,999,765 5,404,667 5,387,676 5,559,479 5,590,457 
Loans (net)7,905,295 5,336,712 5,319,853 5,491,875 5,523,201 
Securities, available-for-sale, at fair value1,963,038 1,826,037 1,615,954 1,598,407 1,522,611 
Intangible assets80,754 38,063 41,747 45,431 49,114 
Goodwill118,345 36,253 34,149 34,149 34,149 
Non-interest-bearing deposits2,058,076 1,367,050 1,336,380 1,358,250 1,363,617 
Interest-bearing deposits6,910,006 4,965,215 5,067,561 5,053,802 5,027,357 
Deposits, total8,968,082 6,332,265 6,403,941 6,412,052 6,390,974 
Brokered deposits120,677 3,431 64,410 124,386 132,098 
Uninsured deposits3,157,531 2,060,145 2,057,873 2,022,739 1,963,566 
Short-term borrowings525,000 525,000 450,000 450,000 650,000 
Subordinated debt, net152,183 88,841 87,490 86,110 114,692 
Unused borrowing capacity3
5,971,283 4,683,943 4,556,923 4,153,137 4,075,313 
Total equity1,203,377 864,504 854,649 822,231 780,018 
Total common equity1,192,964 854,091 844,236 811,818 769,605 
Accumulated other comprehensive income (loss)(58,445)(69,002)(58,960)(68,454)(87,854)
Asset Quality
Provision for credit losses$1,379 $12 $136 $262 $624 
Net loan charge-offs (recoveries)
1,159 81 (84)226 1,214 
Allowance for credit losses94,470 67,955 67,823 67,604 67,256 
Total delinquencies4
84,640 93,088 37,080 34,722 29,056 
Nonperforming loans5
95,308 78,559 74,236 89,051 85,531 


(3) Includes Federal Home Loan Bank, Borrower-in-Custody (BIC), and correspondent bank availability.
(4) Total delinquencies represent accruing loans 30 days or more past due.
(5) Includes non-accrual loans and loans 90 days past due and still accruing.

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Burke & Herbert Financial Services Corp.
Supplemental Information (unaudited)
As of or for the three months ended
(In thousands, except ratios and per share amounts)


June 30March 31December 31September 30June 30
20262026202520252025
Income statement
Interest income$136,987 $105,456 $111,140 $111,209 $111,858 
Interest expense43,939 33,613 36,218 37,439 37,625 
Non-interest income13,849 12,853 11,625 11,585 12,877 
Total revenue (non-GAAP1)
106,897 84,696 86,547 85,355 87,110 
Non-interest expense93,506 51,381 48,500 48,092 49,305 
Pretax, pre-provision earnings (non-GAAP1)
13,391 33,315 38,047 37,263 37,805 
Provision for (recapture of) credit losses1,379 12 136 262 624 
Income before income taxes12,012 33,303 37,911 37,001 37,181 
Income tax expense2,524 5,954 7,667 7,037 7,284 
Net income9,488 27,349 30,244 29,964 29,897 
Preferred stock dividends225 225 225 225 225 
Net income applicable to common shares$9,263 $27,124 $30,019 $29,739 $29,672 
Ratios
Annualized return on average assets
0.37 %1.39 %1.49 %1.50 %1.51 %
Annualized return on average common equity3.53 12.77 14.31 15.08 15.71 
Net interest margin (non-GAAP1)
4.15 4.09 4.11 4.08 4.17 
Efficiency ratio87.47 60.67 56.03 56.34 56.60 
Loan-to-deposit ratio89.20 85.35 84.13 86.70 87.47 
Consolidated Common Equity Tier 1 (CET1) capital ratio2
11.79 13.78 13.45 12.79 12.22 
Consolidated Total risk-based capital ratio2
14.48 16.52 16.17 15.44 15.27 
Consolidated Leverage ratio2
11.08 11.27 10.92 10.71 10.42 
Allowance coverage ratio1.18 1.26 1.26 1.22 1.20 
Allowance for credit losses as a percentage of non-performing loans99.12 86.50 91.36 75.92 78.63 
Non-performing loans as a percentage of total loans1.19 1.45 1.38 1.60 1.53 
Non-performing assets as a percentage of total assets0.89 1.03 0.97 1.16 1.10 
Net charge-offs (recoveries) to average loans (annualized)
6.5 bps
0.6 bps
(0.6) bps
1.6 bps
8.6 bps

10
Burke & Herbert Financial Services Corp.
Non-GAAP Reconciliations (unaudited)
(In thousands, except ratios and per share amounts)
Operating net income, adjusted diluted EPS, and adjusted non-interest expense (non-GAAP1)
For the three months ended
June 30March 31December 31September 30June 30
20262026202520252025
Net income applicable to common shares$9,263 $27,124 $30,019 $29,739 $29,672 
Add back significant items (tax effected):
Merger-related28,221 1,114 — — — 
Total significant items28,221 1,114 — — — 
Operating net income$37,484 $28,238 $30,019 $29,739 $29,672 
Weighted average dilutive shares18,499,030 15,131,481 15,139,792 15,112,413 15,023,807 
Adjusted diluted EPS
$2.03 $1.87 $1.98 $1.97 $1.97 
Non-interest expense$93,506 $51,381 $48,500 $48,092 $49,305 
Remove significant items:
Merger-related32,387 1,410 — — — 
Total significant items32,387 1,410 — — — 
Adjusted non-interest expense$61,119 $49,971 $48,500 $48,092 $49,305 
Operating net income is a non-GAAP measure that is derived from net income adjusted for significant items. The Company believes that operating net income is useful in periods with certain significant items such as merger-related expenses. The operating net income is more reflective of management’s ability to grow the business and manage expenses. Adjusted non-interest expense also removes these significant items, such as merger-related expenses. Management believes it represents a more normalized non-interest expense total for periods with identified significant items.

Total Revenue (non-GAAP1)
For the three months ended
June 30March 31December 31September 30June 30
20262026202520252025
Interest income$136,987 $105,456 $111,140 $111,209 $111,858 
Interest expense43,939 33,613 36,218 37,439 37,625 
Non-interest income13,849 12,853 11,625 11,585 12,877 
Total revenue (non-GAAP1)
$106,897 $84,696 $86,547 $85,355 $87,110 
Total revenue is a non-GAAP measure and is derived from total interest income less total interest expense plus total non-interest income. We believe that total revenue is a useful tool to determine how the Company is managing its business and demonstrates how stable our revenue sources are from period to period.





11
Burke & Herbert Financial Services Corp.
Non-GAAP Reconciliations (unaudited)
(In thousands, except ratios and per share amounts)
Pretax, Pre-Provision Earnings (non-GAAP1)
For the three months ended
June 30March 31December 31September 30June 30
20262026202520252025
Income before taxes$12,012 $33,303 $37,911 $37,001 $37,181 
Provision for (recapture of) credit losses1,379 12 136 262 624 
Pretax, pre-provision earnings (non-GAAP1)
$13,391 $33,315 $38,047 $37,263 $37,805 
Pretax, pre-provision earnings is a non-GAAP measure and is based on adjusting income before income taxes and to exclude provision for (recapture of) credit losses. We believe that pretax, pre-provision earnings is a useful tool to help evaluate the ability to provide for credit costs through operations and provides an additional basis to compare results between periods by isolating the impact of provision for (recapture of) credit losses, which can vary significantly between periods.

Tangible Common Equity (non-GAAP1)
As of the three months ended
June 30March 31December 31September 30June 30
20262026202520252025
Common shareholders' equity$1,192,964 $854,091 $844,236 $811,818 $769,605 
Less:
Intangible assets80,754 38,063 41,747 45,431 49,114 
Goodwill118,345 36,253 34,149 34,149 34,149 
Tangible common equity (non-GAAP1)
$993,865 $779,775 $768,340 $732,238 $686,342 
Shares outstanding at end of period20,165,171 15,045,941 15,028,524 15,028,524 15,007,712 
Tangible book value per common share (non-GAAP1)
$49.29 $51.83 $51.13 $48.72 $45.73 
In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength because they eliminate intangible assets from shareholders' equity and retain the effect of accumulated other comprehensive income/(loss) in shareholders' equity.

Tangible Common Assets (non-GAAP1)
As of the three months ended
June 30March 31December 31September 30June 30
20262026202520252025
Total assets$10,992,498 $7,927,711 $7,920,626 $7,889,037 $8,053,084 
Less:
Intangible assets80,754 38,063 41,747 45,431 49,114 
Goodwill118,345 36,253 34,149 34,149 34,149 
Tangible assets (non-GAAP1)
$10,793,399 $7,853,395 $7,844,730 $7,809,457 $7,969,821 
Tangible common equity / tangible assets (non-GAAP1)
9.21 %9.93 %9.79 %9.38 %8.61 %
12
Burke & Herbert Financial Services Corp.
Non-GAAP Reconciliations (unaudited)
(In thousands, except ratios and per share amounts)
In management’s view, tangible common assets measures complement tangible common equity measures and may be meaningful to the Company, as well as analysts and investors, in assessing balance sheet composition and leverage and in facilitating comparisons with peers. These non‑GAAP measures enhance transparency by eliminating intangible assets from total assets, thereby providing additional insight into the relationship between the Company’s tangible asset base and its tangible common equity.

Return and Adjusted Return on Average Tangible Common Equity and Average Assets (non-GAAP1)
For the three months ended
June 30March 31December 31September 30June 30
20262026202520252025
Average common shareholders' equity$1,053,502 $861,274 $832,411 $782,577 $757,354 
Average goodwill and other intangibles(159,202)(76,923)(79,338)(83,079)(85,562)
Average deferred tax liabilities on goodwill and other intangibles19,635 8,602 9,382 9,787 10,567 
Average tangible common equity (non-GAAP1)
$913,935 $792,953 $762,455 $709,285 $682,359 
Average total assets$10,010,483 $7,913,098 $7,979,528 $7,890,929 $7,864,185 
Average goodwill and other intangibles(159,202)(76,923)(79,338)(83,079)(85,562)
Average deferred tax liabilities on goodwill and other intangibles19,635 8,602 9,382 9,787 10,567 
Average tangible total assets (non-GAAP1)
$9,870,916 $7,844,777 $7,909,572 $7,817,637 $7,789,190 
Net income applicable to common shareholders$9,263 $27,124 $30,019 $29,739 $29,672 
Operating net income applicable to common shareholders (non-GAAP1)
$37,484 $28,238 $30,019 $29,739 $29,672 
Annualized return on average common equity
3.53 %12.77 %14.31 %15.08 %15.71 %
Annualized adjusted return on average common equity (non-GAAP1)
14.27 13.30 14.31 15.08 15.71 
Annualized return on average tangible common equity (non-GAAP1)
4.07 13.87 15.62 16.63 17.44 
Annualized adjusted return on average tangible common equity (non-GAAP1)
16.45 14.44 15.62 16.63 17.44 
Annualized return on average assets
0.37 1.39 1.49 1.50 1.51 
Annualized adjusted return on average assets (non-GAAP1)
1.50 1.45 1.49 1.50 1.51 
In management’s view, adjusted return on average common equity, return on average tangible common equity, adjusted return on average tangible common equity, and adjusted return on average assets are
13
Burke & Herbert Financial Services Corp.
Non-GAAP Reconciliations (unaudited)
(In thousands, except ratios and per share amounts)
performance metrics that may be meaningful to the Company, as well as analysts and investors, in evaluating the Company’s profitability and efficiency in deploying capital and assets and in facilitating comparisons with peers. These non‑GAAP measures provide additional insight into the Company’s underlying operating performance by focusing on returns generated from common equity, tangible common equity, and total assets, as applicable.

The adjusted measures exclude the after‑tax effect of one‑time merger‑related expenses, which management believes enhances period‑to‑period comparability and provides a more representative view of the Company’s ongoing earnings performance. Return on average tangible common equity measures further isolate performance attributable to tangible capital by excluding the impact of intangible assets, while return on average assets reflects the Company’s effectiveness in generating earnings from its overall asset base. Management believes these measures, when considered together and alongside GAAP results, provide useful supplemental information for assessing profitability, capital efficiency, and operating trends.

Net Interest Margin & Taxable-Equivalent Net Interest Income (non-GAAP1)
For the three months ended
June 30March 31December 31September 30June 30
20262026202520252025
Net interest income$93,048 $71,843 $74,922 $73,770 $74,233 
Taxable-equivalent adjustments2,036 1,628 1,420 1,305 1,059 
Net interest income (Fully Taxable-Equivalent - FTE)$95,084 $73,471 $76,342 $75,075 $75,292 
Average interest-earning assets$9,198,632 $7,279,297 $7,363,743 $7,308,536 $7,248,238 
Net interest margin (non-GAAP1)
4.15 %4.09 %4.11 %4.08 %4.17 %
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use net interest income on a fully taxable-equivalent (FTE) basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. FTE net interest income is calculated by adding the tax benefit on certain financial interest earning assets, whose interest is tax-exempt, to total interest income then subtracting total interest expense. Management believes FTE net interest income is a standard practice in the banking industry, and when net interest income is adjusted on an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income and this adjustment is not permitted under GAAP. FTE net interest income is only used for calculating FTE net interest margin, which is calculated by annualizing FTE net interest income and then dividing by the average earning assets. The tax rate used for this adjustment is 21%. Net interest income shown elsewhere in this presentation is GAAP net interest income.
14