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Burke & Herbert Financial Services Corp. Announces Third Quarter 2026 Results and Declares Common Stock Dividend
For Immediate Release
October 22, 2026
Alexandria, VA – Burke & Herbert Financial Services Corp. (the “Company” or “Burke & Herbert”) (Nasdaq: BHRB) reported financial results for the quarter ended September 30, 2026. In addition, at its meeting on October 22, 2026, the board of directors declared a $0.55 per share regular cash dividend to be paid on December 1, 2026, to shareholders of record as of the close of business on November 13, 2026.
From David P. Boyle, Company Chair and Chief Executive Officer
“Our third quarter results reflect disciplined execution and continued momentum across the Company. Core earnings were strong, asset quality remains consistent with our moderate risk profile, and we once again delivered top-quartile returns compared to our peers. We also completed a $100 million subordinated debt offering, further strengthening our capital position and providing additional financial flexibility to support profitable growth. Our team continues to execute well, and we remain focused on delivering long-term value for our shareholders, customers, employees, and communities.”
Q3 2026 Highlights
•Financial results reflect a full quarter following the May 1, 2026, 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.
•The Company reported net income applicable to common shares of $36.2 million for the quarter and diluted earnings per common share (“EPS”) of $1.78; excluding merger-related items and other related items, adjusted (non-GAAP1) operating net income applicable to common shares was $43.4 million for the quarter and adjusted (non-GAAP1) diluted EPS was $2.14.
•For the quarter, the annualized return on average assets (“ROA”) was 1.30%, the annualized return on average common equity (“ROCE”) was 12.02%, and the annualized return on average tangible common equity (“ROATCE”) (non-GAAP1) was 14.14%.
•On an adjusted basis (non-GAAP1), ROA was 1.57%, ROCE was 14.42%, and ROATCE was 16.96%.
•Total shareholders’ equity was $1.2 billion and tangible common equity to tangible assets (non-GAAP1) was 8.77%, reflecting the Company’s strong capital position.
•Ending total gross loans were $8.1 billion and ending total deposits were $9.0 billion; ending loan-to-deposit ratio was 90.0%. The net interest margin (non-GAAP1) was 4.21% for the three months ended September 30, 2026.
•The balance sheet remains strong with ample liquidity. Total liquidity, including all available borrowing capacity with cash and cash equivalents, totaled $6.5 billion at the end of the third quarter.
•The Company continues to be well-capitalized, ending the quarter with 12.03%2 Common Equity Tier 1 capital to risk-weighted assets, 15.45%2 Total risk-based capital to risk-weighted assets, and a leverage ratio of 10.43%.2

(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 September 30, 2026, are estimated.
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Results of Operations
Third Quarter 2026 compared to Second Quarter 2026
The Company reported third quarter 2026 net income applicable to common shares of $36.2 million, or $1.78 per diluted common share, compared to second quarter 2026 net income applicable to common shares of $9.3 million, or $0.50 per diluted common share.
•Period-end total gross loans were $8.1 billion at September 30, 2026, an increase of $62.2 million from June 30, 2026. The Company originated $406.9 million of new, relationship-based loan commitments during the quarter.
•Period-end total deposits were $9.0 billion at September 30, 2026, a decrease of $12.4 million from June 30, 2026. Brokered deposits totaled $120.7 million at September 30, 2026, which represented only 1.35% of total deposits.
•Net interest income for the quarter was $105.0 million compared to $93.0 million in the prior quarter due to an increase in interest income of $17.7 million, which was partially offset by an increase in interest expense of $5.8 million, primarily due to the full quarter impact of LNKB.
•Net interest margin on a fully taxable-equivalent basis (non-GAAP1) increased to 4.21% versus 4.15% in the second quarter of 2026, driven by growth in both the average balance on total loans and higher yields on total loans, partially offset by higher funding costs. The increase reflected a full quarter of LNKB results and a rising interest rate environment.
•Accretion income on loans during the quarter was $9.3 million, and the amortization expense impact on interest expense was $1.5 million, or 30.4 bps of net interest margin on an annualized basis in the third quarter of 2026. In the prior quarter, 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.
•The cost of total deposits, including non-interest bearing deposits, was 1.83% in the third quarter of 2026, compared to 1.75% in the second quarter of 2026. The increase in the cost of deposits was mostly due to increases in both the average balance of total interest-bearing deposits and the rates paid on total interest-bearing deposits compared to the second quarter of 2026. The increase reflected a full quarter of LNKB results and a rising interest rate environment.
•The Company recorded credit provision expense in the third quarter of 2026 of $1.5 million on loans and a recapture of credit loss expense of $0.8 million on unfunded commitments. The Company’s allowance for credit losses as of September 30, 2026, was $92.5 million, or 1.15% of total loans. Asset quality metrics remain within the Company’s moderate risk profile with adequate reserve coverage. Total delinquencies increased $4.9 million to $89.6 million during the quarter, and nonperforming loans increased $12.7 million to $108.0 million during the quarter; however, the increases were concentrated in a limited number of isolated credits and do not reflect broad-based deterioration in the loan portfolio. We do not currently expect these credits to result in material charge-offs, and nonperforming loans remain at 1.34% of total loans, below 1.60% a year ago.
•Total non-interest income increased $873.0 thousand to $14.7 million in the third quarter of 2026, compared to $13.8 million in the second quarter of 2026. The second quarter included transactions related to LNKB resulting in a loss of $1.9 million offset by company-owned life insurance income. Despite the absence of these items, non-interest income increased due to an additional month of combined debit card income and higher fiduciary and wealth management income.



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•Non-interest expense for the third quarter of 2026 was $74.5 million compared to $93.5 million in the second quarter of 2026; adjusted non-interest expense for the third quarter of 2026 was $65.3 million compared to $61.1 million in the second quarter of 2026, the increase primarily due to the full quarter impact of LNKB.
Regulatory capital ratios2
The Company continues to be well-capitalized with capital ratios that are above regulatory requirements. As of September 30, 2026, our Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were 12.03%2 and 15.45%2, respectively, and significantly above the well-capitalized requirements of 6.5% and 10%, respectively. The leverage ratio was 10.43%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 September 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 13.36%2 and 14.35%,2 respectively, and significantly above the well-capitalized requirements. In addition, the Bank’s leverage ratio of 11.20%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,” “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



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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 Reports on Form 10-Q for the quarters ended March 31, 2026, and June 30, 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 EndedNine Months Ended
September 30,June 30,September 30,
20262025202620262025
Interest income
Taxable loans, including fees$134,060 $95,132 $116,770 $338,913 $288,966 
Tax-exempt loans, including fees63 47 55 158 136 
Taxable securities10,271 9,062 11,329 31,358 27,852 
Tax-exempt securities8,316 4,863 7,605 22,003 12,069 
Other interest income2,014 2,105 1,228 4,735 4,830 
Total interest income154,724 111,209 136,987 397,167 333,853 
Interest expense
Deposits41,275 30,286 35,018 103,013 92,568 
Short-term borrowings4,717 4,379 5,897 15,204 12,009 
Subordinated debt3,677 2,748 2,990 8,936 8,207 
Other interest expense39 26 40 113 79 
Total interest expense49,708 37,439 43,945 127,266 112,863 
Net interest income105,016 73,770 93,042 269,901 220,990 
Credit loss expense (recapture) - loans and available-for-sale securities1,493 574 (833)873 2,191 
Credit loss expense (recapture) - off-balance sheet credit exposures(790)(312)2,212 1,221 (804)
Total provision for credit losses703 262 1,379 2,094 1,387 
Net interest income after credit loss expense104,313 73,508 91,663 267,807 219,603 
Non-interest income
Fiduciary and wealth management3,347 2,664 3,100 9,674 7,532 
Service charges and fees2,570 2,070 2,286 6,711 6,195 
Net gain (loss) on securities
89 212 (1,868)20 251 
Income from company-owned life insurance2,078 1,152 3,207 6,764 5,327 
Bank debit and other card revenue3,625 3,192 3,421 9,881 9,100 
Other non-interest income3,013 2,295 3,703 8,374 6,080 
Total non-interest income14,722 11,585 13,849 41,424 34,485 
Non-interest expense
Salaries and wages32,816 20,848 41,378 95,607 63,109 
Pensions and other employee benefits6,229 4,429 5,787 17,386 13,632 
Occupancy4,941 3,479 6,654 15,622 11,045 
Equipment rentals, depreciation and maintenance5,385 3,908 6,934 16,507 12,092 
Core deposit intangible amortization6,352 3,683 5,530 15,566 11,869 
ATM, card and network expense1,799 1,200 1,389 4,322 3,646 
FDIC and other regulatory assessments1,198 976 1,576 3,914 2,978 
Other operating15,757 9,569 24,258 50,440 28,690 
Total non-interest expense74,477 48,092 93,506 219,364 147,061 
Income before income taxes44,558 37,001 12,006 89,867 107,027 
Income tax expense
8,171 7,037 2,524 16,649 19,965 
Net income36,387 29,964 9,482 73,218 87,062 
Preferred stock dividends225 225 225 675 675 
Net income applicable to common shares$36,162 $29,739 $9,257 $72,543 $86,387 
Earnings per common share
Basic$1.79 $1.98 $0.50 $4.05 $5.76 
Diluted1.78 1.97 0.50 4.03 5.74 



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Burke & Herbert Financial Services Corp.
Consolidated Balance Sheets
(In thousands)
September 30, 2026December 31, 2025
(Unaudited)(Audited)
Assets
Cash and due from banks$101,308 $53,497 
Interest-earning deposits with banks43,088 235,630 
Cash and cash equivalents144,396 289,127 
Securities available-for-sale, at fair value1,943,142 1,615,954 
Restricted stock, at cost58,999 42,187 
Loans held-for-sale, at fair value2,202 365 
Loans8,061,967 5,387,676 
Allowance for credit losses(92,473)(67,823)
Net loans7,969,494 5,319,853 
Other real estate owned2,873 2,689 
Premises and equipment, net148,370 136,809 
Accrued interest receivable48,725 35,442 
Intangible assets74,402 41,747 
Goodwill118,345 34,149 
Company-owned life insurance270,917 213,200 
Other assets252,528 189,104 
Total Assets
$11,034,393 $7,920,626 
Liabilities and Shareholders’ Equity
Liabilities
Non-interest-bearing deposits$2,015,942 $1,336,380 
Interest-bearing deposits6,939,693 5,067,561 
Total deposits8,955,635 6,403,941 
Short-term borrowings525,000 450,000 
Subordinated debentures, net233,935 70,222 
Subordinated debentures owed to unconsolidated subsidiary trusts17,458 17,268 
Accrued interest and other liabilities148,621 124,546 
Total Liabilities 9,880,649 7,065,977 
Shareholders’ Equity
Preferred stock and surplus10,413 10,413 
Common stock10,382 7,800 
Common stock, additional paid-in capital736,232 405,922 
Retained earnings558,786 517,058 
Accumulated other comprehensive income (loss)(134,485)(58,960)
Treasury stock(27,584)(27,584)
Total Shareholders’ Equity 1,153,744 854,649 
Total Liabilities and Shareholders’ Equity $11,034,393 $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
September 30June 30March 31December 31September 30
20262026202620252025
Interest-earning assets:
Loans:
Taxable loans
6.69 %6.54 %6.64 %6.79 %6.76 %
Tax-exempt loans
6.29 6.15 7.12 7.03 6.78 
Total loans
6.69 6.54 6.64 6.79 6.76 
Interest-earning deposits and fed funds sold
3.55 3.28 4.25 3.83 4.33 
Securities:
Taxable securities
3.97 4.23 3.78 3.78 3.86 
Tax-exempt securities
4.66 4.65 4.48 4.27 4.17 
Total securities
4.27 4.41 4.05 3.96 3.97 
Total interest-earning assets6.17 %6.06 %5.97 %6.06 %6.11 %
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
2.07 %1.96 %1.98 %2.07 %2.18 %
Money market & savings
1.99 1.95 1.83 1.94 2.02 
Brokered CDs & time deposits
3.34 3.27 3.11 3.23 3.25 
Total interest-bearing deposits
2.36 2.25 2.16 2.28 2.37 
Borrowings:
Short-term borrowings
3.55 3.64 3.78 3.93 3.85 
Subordinated debt borrowings and other
9.49 9.16 10.46 10.62 9.49 
Total interest-bearing liabilities
2.59 %2.51 %2.44 %2.54 %2.63 %
Taxable-equivalent net interest spread
3.58 3.55 3.53 3.52 3.48 
Benefit from use of non-interest-bearing deposits0.63 0.60 0.56 0.59 0.60 
Taxable-equivalent net interest margin (non-GAAP1)
4.21 %4.15 %4.09 %4.11 %4.08 %

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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
September 30June 30March 31December 31September 30
20262026202620252025
Interest-earning assets:
Loans:
Taxable loans
$7,951,809 $7,156,639 $5,380,967 $5,482,574 $5,584,315 
Tax-exempt loans
5,047 4,497 2,903 3,159 3,511 
Total loans
7,956,856 7,161,136 5,383,870 5,485,733 5,587,826 
Interest-earning deposits and fed funds sold
118,138 69,525 70,361 222,990 100,445 
Securities:
Taxable securities
1,123,098 1,137,512 1,128,486 1,031,603 1,034,136 
Tax-exempt securities
896,752 830,459 696,580 623,417 586,129 
Total securities
2,019,850 1,967,971 1,825,066 1,655,020 1,620,265 
Total interest-earning assets$10,094,844 $9,198,632 $7,279,297 $7,363,743 $7,308,536 
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
$3,002,772 $2,706,931 $2,286,206 $2,315,064 $2,278,587 
Money market & savings
2,223,150 2,106,402 1,675,034 1,705,028 1,660,401 
Brokered CDs & time deposits
1,715,509 1,421,123 1,044,605 1,100,215 1,135,546 
Total interest-bearing deposits
6,941,431 6,234,456 5,005,845 5,120,307 5,074,534 
Borrowings:
Short-term borrowings
531,335 653,886 496,501 453,436 453,486 
Subordinated debt borrowings and other
153,724 130,913 87,979 86,635 114,900 
Total interest-bearing liabilities
$7,626,490 $7,019,255 $5,590,325 $5,660,378 $5,642,920 
Non-interest-bearing deposits
$2,029,261 $1,802,833 $1,332,090 $1,358,798 $1,338,188 
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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)


September 30June 30March 31December 31September 30
20262026202620252025
Per common share information
Basic earnings$1.79 $0.50 $1.80 $2.00 $1.98 
Diluted earnings1.78 0.50 1.79 1.98 1.97 
Cash dividends0.55 0.55 0.55 0.55 0.55 
Book value per common share
56.62 59.10 56.77 56.18 54.02 
Tangible book value per common share (non-GAAP1)
47.07 49.23 51.83 51.13 48.72 
Balance sheet-related (at period end, unless otherwise indicated)
Assets$11,034,393 $10,991,300 $7,927,711 $7,920,626 $7,889,037 
Average interest-earning assets
10,094,844 9,198,632 7,279,297 7,363,743 7,308,536 
Loans (gross)8,061,967 7,999,765 5,404,667 5,387,676 5,559,479 
Loans (net)7,969,494 7,905,295 5,336,712 5,319,853 5,491,875 
Securities, available-for-sale, at fair value1,943,142 1,963,038 1,826,037 1,615,954 1,598,407 
Intangible assets74,402 80,754 38,063 41,747 45,431 
Goodwill118,345 118,345 36,253 34,149 34,149 
Non-interest-bearing deposits2,015,942 2,058,076 1,367,050 1,336,380 1,358,250 
Interest-bearing deposits6,939,693 6,910,006 4,965,215 5,067,561 5,053,802 
Deposits, total8,955,635 8,968,082 6,332,265 6,403,941 6,412,052 
Brokered deposits120,717 120,667 3,431 64,410 124,386 
Uninsured deposits3,265,486 3,157,531 2,060,145 2,057,873 2,022,739 
Short-term borrowings525,000 525,000 525,000 450,000 450,000 
Subordinated debt, net233,935 152,183 88,841 87,490 86,110 
Unused borrowing capacity3
6,366,769 6,087,369 4,181,408 3,989,887 3,914,854 
Total equity1,153,744 1,202,179 864,504 854,649 822,231 
Total common equity1,143,331 1,191,766 854,091 844,236 811,818 
Accumulated other comprehensive income (loss)(134,485)(59,637)(69,002)(58,960)(68,454)
Asset Quality
Provision for credit losses$703 $1,379 $12 $136 $262 
Net loan charge-offs (recoveries)
2,865 1,159 81 (84)226 
Allowance for credit losses92,473 94,470 67,955 67,823 67,604 
Total delinquencies4
89,550 84,640 93,088 37,080 34,722 
Nonperforming loans5
107,980 95,308 78,559 74,236 89,051 


(3) Includes Federal Home Loan Bank, Borrower-in-Custody (BIC), correspondent bank availability, and brokered deposit capacity.
(4) Total delinquencies represent only 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)


September 30June 30March 31December 31September 30
20262026202620252025
Income statement
Interest income$154,724 $136,987 $105,456 $111,140 $111,209 
Interest expense49,708 43,945 33,613 36,218 37,439 
Non-interest income14,722 13,849 12,853 11,625 11,585 
Total revenue (non-GAAP1)
119,738 106,891 84,696 86,547 85,355 
Non-interest expense74,477 93,506 51,381 48,500 48,092 
Pretax, pre-provision earnings (non-GAAP1)
45,261 13,385 33,315 38,047 37,263 
Provision for credit losses703 1,379 12 136 262 
Income before income taxes44,558 12,006 33,303 37,911 37,001 
Income tax expense8,171 2,524 5,954 7,667 7,037 
Net income36,387 9,482 27,349 30,244 29,964 
Preferred stock dividends225 225 225 225 225 
Net income applicable to common shares$36,162 $9,257 $27,124 $30,019 $29,739 
Ratios
Annualized return on average assets
1.30 %0.37 %1.39 %1.49 %1.50 %
Annualized return on average common equity12.02 3.52 12.77 14.31 15.08 
Net interest margin (non-GAAP1)
4.21 4.15 4.09 4.11 4.08 
Efficiency ratio62.20 87.48 60.67 56.03 56.34 
Loan-to-deposit ratio90.02 89.20 85.35 84.13 86.70 
Consolidated Common Equity Tier 1 (CET1) capital ratio2
12.03 11.76 13.78 13.45 12.79 
Consolidated Total risk-based capital ratio2
15.45 14.42 16.52 16.17 15.44 
Consolidated Leverage ratio2
10.43 11.07 11.26 10.92 10.71 
Allowance coverage ratio1.15 1.18 1.26 1.26 1.22 
Allowance for credit losses as a percentage of non-performing loans85.64 99.12 86.50 91.36 75.92 
Non-performing loans as a percentage of total loans1.34 1.19 1.45 1.38 1.60 
Non-performing assets as a percentage of total assets1.00 0.89 1.03 0.97 1.16 
Net charge-offs (recoveries) to average loans (annualized)
14.3 bps
6.5 bps
0.6 bps
(0.6) bps
1.6 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
September 30June 30March 31December 31September 30
20262026202620252025
Net income applicable to common shares$36,162 $9,257 $27,124 $30,019 $29,739 
Add back significant items (tax effected):
Merger-related7,220 28,221 1,114 — — 
Total significant items7,220 28,221 1,114 — — 
Operating net income$43,382 $37,478 $28,238 $30,019 $29,739 
Weighted average dilutive shares20,294,758 18,499,030 15,131,481 15,139,792 15,112,413 
Adjusted diluted EPS
$2.14 $2.03 $1.87 $1.98 $1.97 
Non-interest expense$74,477 $93,506 $51,381 $48,500 $48,092 
Remove significant items:
Merger-related9,139 32,387 1,410 — — 
Total significant items9,139 32,387 1,410 — — 
Adjusted non-interest expense$65,338 $61,119 $49,971 $48,500 $48,092 
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
September 30June 30March 31December 31September 30
20262026202620252025
Interest income$154,724 $136,987 $105,456 $111,140 $111,209 
Interest expense49,708 43,945 33,613 36,218 37,439 
Non-interest income14,722 13,849 12,853 11,625 11,585 
Total revenue (non-GAAP1)
$119,738 $106,891 $84,696 $86,547 $85,355 
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
September 30June 30March 31December 31September 30
20262026202620252025
Income before income taxes$44,558 $12,006 $33,303 $37,911 $37,001 
Provision for credit losses703 1,379 12 136 262 
Pretax, pre-provision earnings (non-GAAP1)
$45,261 $13,385 $33,315 $38,047 $37,263 
Pretax, pre-provision earnings is a non-GAAP measure and is based on adjusting income before income taxes and to exclude provision for 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 credit losses, which can vary significantly between periods.

Tangible Common Equity (non-GAAP1)
As of
September 30June 30March 31December 31September 30
20262026202620252025
Common shareholders' equity$1,143,331 $1,191,766 $854,091 $844,236 $811,818 
Less:
Intangible assets74,402 80,754 38,063 41,747 45,431 
Goodwill118,345 118,345 36,253 34,149 34,149 
Tangible common equity (non-GAAP1)
$950,584 $992,667 $779,775 $768,340 $732,238 
Shares outstanding at end of period20,193,639 20,165,171 15,045,941 15,028,524 15,028,524 
Tangible book value per common share (non-GAAP1)
$47.07 $49.23 $51.83 $51.13 $48.72 
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
September 30June 30March 31December 31September 30
20262026202620252025
Total assets$11,034,393 $10,991,300 $7,927,711 $7,920,626 $7,889,037 
Less:
Intangible assets74,402 80,754 38,063 41,747 45,431 
Goodwill118,345 118,345 36,253 34,149 34,149 
Tangible assets (non-GAAP1)
$10,841,646 $10,792,201 $7,853,395 $7,844,730 $7,809,457 
Tangible common equity / tangible assets (non-GAAP1)
8.77 %9.20 %9.93 %9.79 %9.38 %
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
September 30June 30March 31December 31September 30
20262026202620252025
Average common shareholders' equity$1,193,226 $1,053,502 $861,274 $832,411 $782,577 
Average goodwill and other intangibles(196,787)(159,202)(76,923)(79,338)(83,079)
Average deferred tax liabilities on goodwill and other intangibles18,204 19,635 8,602 9,382 9,787 
Average tangible common equity (non-GAAP1)
$1,014,643 $913,935 $792,953 $762,455 $709,285 
Average total assets$10,994,775 $10,010,483 $7,913,098 $7,979,528 $7,890,929 
Average goodwill and other intangibles(196,787)(159,202)(76,923)(79,338)(83,079)
Average deferred tax liabilities on goodwill and other intangibles18,204 19,635 8,602 9,382 9,787 
Average tangible total assets (non-GAAP1)
$10,816,192 $9,870,916 $7,844,777 $7,909,572 $7,817,637 
Net income applicable to common shareholders$36,162 $9,257 $27,124 $30,019 $29,739 
Operating net income applicable to common shareholders (non-GAAP1)
$43,382 $37,478 $28,238 $30,019 $29,739 
Annualized return on average common equity
12.02 %3.52 %12.77 %14.31 %15.08 %
Annualized adjusted return on average common equity (non-GAAP1)
14.42 14.27 13.30 14.31 15.08 
Annualized return on average tangible common equity (non-GAAP1)
14.14 4.06 13.87 15.62 16.63 
Annualized adjusted return on average tangible common equity (non-GAAP1)
16.96 16.45 14.44 15.62 16.63 
Annualized return on average assets
1.30 0.37 1.39 1.49 1.50 
Annualized adjusted return on average assets (non-GAAP1)
1.57 1.50 1.45 1.49 1.50 
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
September 30June 30March 31December 31September 30
20262026202620252025
Net interest income$105,016 $93,042 $71,843 $74,922 $73,770 
Taxable-equivalent adjustments2,227 2,036 1,628 1,420 1,305 
Net interest income (Fully Taxable-Equivalent - FTE)$107,243 $95,078 $73,471 $76,342 $75,075 
Average interest-earning assets$10,094,844 $9,198,632 $7,279,297 $7,363,743 $7,308,536 
Net interest margin (non-GAAP1)
4.21 %4.15 %4.09 %4.11 %4.08 %
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