ALEXANDRIA, Va., Oct. 22, 2026 (GLOBE NEWSWIRE) — 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

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.
  • 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 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.

Burke & Herbert Financial Services Corp.
Consolidated Statements of Income (unaudited)
(In thousands)

    Three Months Ended   Nine Months Ended
    September 30,   June 30,   September 30,
    2026   2025   2026   2026   2025
Interest income                    
Taxable loans, including fees   $ 134,060     $ 95,132     $ 116,770     $ 338,913   $ 288,966  
Tax-exempt loans, including fees     63       47       55       158     136  
Taxable securities     10,271       9,062       11,329       31,358     27,852  
Tax-exempt securities     8,316       4,863       7,605       22,003     12,069  
Other interest income     2,014       2,105       1,228       4,735     4,830  
Total interest income     154,724       111,209       136,987       397,167     333,853  
Interest expense                    
Deposits     41,275       30,286       35,018       103,013     92,568  
Short-term borrowings     4,717       4,379       5,897       15,204     12,009  
Subordinated debt     3,677       2,748       2,990       8,936     8,207  
Other interest expense     39       26       40       113     79  
Total interest expense     49,708       37,439       43,945       127,266     112,863  
Net interest income     105,016       73,770       93,042       269,901     220,990  
                     
Credit loss expense (recapture) – loans and available-for-sale securities     1,493       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 losses     703       262       1,379       2,094     1,387  
Net interest income after credit loss expense     104,313       73,508       91,663       267,807     219,603  
                     
Non-interest income                    
Fiduciary and wealth management     3,347       2,664       3,100       9,674     7,532  
Service charges and fees     2,570       2,070       2,286       6,711     6,195  
Net gain (loss) on securities     89       212       (1,868 )     20     251  
Income from company-owned life insurance     2,078       1,152       3,207       6,764     5,327  
Bank debit and other card revenue     3,625       3,192       3,421       9,881     9,100  
Other non-interest income     3,013       2,295       3,703       8,374     6,080  
Total non-interest income     14,722       11,585       13,849       41,424     34,485  
                     
Non-interest expense                    
Salaries and wages     32,816       20,848       41,378       95,607     63,109  
Pensions and other employee benefits     6,229       4,429       5,787       17,386     13,632  
Occupancy     4,941       3,479       6,654       15,622     11,045  
Equipment rentals, depreciation and maintenance     5,385       3,908       6,934       16,507     12,092  
Core deposit intangible amortization     6,352       3,683       5,530       15,566     11,869  
ATM, card and network expense     1,799       1,200       1,389       4,322     3,646  
FDIC and other regulatory assessments     1,198       976       1,576       3,914     2,978  
Other operating     15,757       9,569       24,258       50,440     28,690  
Total non-interest expense     74,477       48,092       93,506       219,364     147,061  
Income before income taxes     44,558       37,001       12,006       89,867     107,027  
                     
Income tax expense     8,171       7,037       2,524       16,649     19,965  
Net income     36,387       29,964       9,482       73,218     87,062  
Preferred stock dividends     225       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  
Diluted     1.78       1.97       0.50       4.03     5.74  
                     

Burke & Herbert Financial Services Corp.
Consolidated Balance Sheets
(In thousands)

    September 30, 2026   December 31, 2025
    (Unaudited)   (Audited)
Assets        
Cash and due from banks   $ 101,308     $ 53,497  
Interest-earning deposits with banks     43,088       235,630  
Cash and cash equivalents     144,396       289,127  
Securities available-for-sale, at fair value     1,943,142       1,615,954  
Restricted stock, at cost     58,999       42,187  
Loans held-for-sale, at fair value     2,202       365  
Loans     8,061,967       5,387,676  
Allowance for credit losses     (92,473 )     (67,823 )
Net loans     7,969,494       5,319,853  
Other real estate owned     2,873       2,689  
Premises and equipment, net     148,370       136,809  
Accrued interest receivable     48,725       35,442  
Intangible assets     74,402       41,747  
Goodwill     118,345       34,149  
Company-owned life insurance     270,917       213,200  
Other assets     252,528       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 deposits     6,939,693       5,067,561  
Total deposits     8,955,635       6,403,941  
Short-term borrowings     525,000       450,000  
Subordinated debentures, net     233,935       70,222  
Subordinated debentures owed to unconsolidated subsidiary trusts     17,458       17,268  
Accrued interest and other liabilities     148,621       124,546  
Total Liabilities     9,880,649       7,065,977  
         
Shareholders’ Equity        
Preferred stock and surplus     10,413       10,413  
Common stock     10,382       7,800  
Common stock, additional paid-in capital     736,232       405,922  
Retained earnings     558,786       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  


Burke & Herbert Financial Services Corp.
Details of Net Interest Margin (unaudited)
For the three months ended

Details of Net Interest Margin – Yield Percentages
                   
  September 30   June 30   March 31   December 31   September 30
  2026   2026   2026   2025   2025
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 assets 6.17 %   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 deposits 0.63     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 %


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 30   June 30   March 31   December 31   September 30
  2026   2026   2026   2025   2025
                   
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

  

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 30   June 30   March 31   December 31   September 30
  2026   2026   2026   2025   2025
                   
Per common share information
Basic earnings $ 1.79     $ 0.50     $ 1.80     $ 2.00     $ 1.98  
Diluted earnings   1.78       0.50       1.79       1.98       1.97  
Cash dividends   0.55       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 value   1,943,142       1,963,038       1,826,037       1,615,954       1,598,407  
Intangible assets   74,402       80,754       38,063       41,747       45,431  
Goodwill   118,345       118,345       36,253       34,149       34,149  
Non-interest-bearing deposits   2,015,942       2,058,076       1,367,050       1,336,380       1,358,250  
Interest-bearing deposits   6,939,693       6,910,006       4,965,215       5,067,561       5,053,802  
Deposits, total   8,955,635       8,968,082       6,332,265       6,403,941       6,412,052  
Brokered deposits   120,717       120,667       3,431       64,410       124,386  
Uninsured deposits   3,265,486       3,157,531       2,060,145       2,057,873       2,022,739  
Short-term borrowings   525,000       525,000       525,000       450,000       450,000  
Subordinated debt, net   233,935       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 equity   1,153,744       1,202,179       864,504       854,649       822,231  
Total common equity   1,143,331       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 losses   92,473       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  


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 30   June 30   March 31   December 31   September 30
  2026   2026   2026   2025   2025
Income statement
Interest income $ 154,724     $ 136,987     $ 105,456     $ 111,140     $ 111,209  
Interest expense   49,708       43,945       33,613       36,218       37,439  
Non-interest income   14,722       13,849       12,853       11,625       11,585  
Total revenue (non-GAAP1)   119,738       106,891       84,696       86,547       85,355  
Non-interest expense   74,477       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 losses   703       1,379       12       136       262  
Income before income taxes   44,558       12,006       33,303       37,911       37,001  
Income tax expense   8,171       2,524       5,954       7,667       7,037  
Net income   36,387       9,482       27,349       30,244       29,964  
Preferred stock dividends   225       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 equity   12.02       3.52       12.77       14.31       15.08  
Net interest margin (non-GAAP1)   4.21       4.15       4.09       4.11       4.08  
Efficiency ratio   62.20       87.48       60.67       56.03       56.34  
Loan-to-deposit ratio   90.02       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 ratio   1.15       1.18       1.26       1.26       1.22  
Allowance for credit losses as a percentage of non-performing loans   85.64       99.12       86.50       91.36       75.92  
Non-performing loans as a percentage of total loans   1.34       1.19       1.45       1.38       1.60  
Non-performing assets as a percentage of total assets   1.00       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
                   


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 30   June 30   March 31   December 31   September 30
    2026   2026   2026   2025   2025
Net income applicable to common shares   $ 36,162   $ 9,257   $ 27,124   $ 30,019   $ 29,739
Add back significant items (tax effected):                    
Merger-related     7,220     28,221     1,114     —     —
Total significant items     7,220     28,221     1,114     —     —
Operating net income   $ 43,382   $ 37,478   $ 28,238   $ 30,019   $ 29,739
                     
Weighted average dilutive shares     20,294,758     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-related     9,139     32,387     1,410     —     —
Total significant items     9,139     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 30   June 30   March 31   December 31   September 30
    2026   2026   2026   2025   2025
Interest income   $ 154,724   $ 136,987   $ 105,456   $ 111,140   $ 111,209
Interest expense     49,708     43,945     33,613     36,218     37,439
Non-interest income     14,722     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.


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 30   June 30   March 31   December 31   September 30
    2026   2026   2026   2025   2025
Income before income taxes   $ 44,558   $ 12,006   $ 33,303   $ 37,911   $ 37,001
Provision for credit losses     703     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 30   June 30   March 31   December 31   September 30
    2026   2026   2026   2025   2025
Common shareholders’ equity   $ 1,143,331   $ 1,191,766   $ 854,091   $ 844,236   $ 811,818
Less:                    
Intangible assets     74,402     80,754     38,063     41,747     45,431
Goodwill     118,345     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 period     20,193,639     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 30   June 30   March 31   December 31   September 30
    2026   2026   2026   2025   2025
Total assets   $ 11,034,393     $ 10,991,300     $ 7,927,711     $ 7,920,626     $ 7,889,037  
Less:                    
Intangible assets     74,402       80,754       38,063       41,747       45,431  
Goodwill     118,345       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 %


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 30   June 30   March 31   December 31   September 30
    2026   2026   2026   2025   2025
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 intangibles     18,204       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 intangibles     18,204       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 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 30   June 30   March 31   December 31   September 30
    2026   2026   2026   2025   2025
Net interest income   $ 105,016     $ 93,042     $ 71,843     $ 74,922     $ 73,770  
Taxable-equivalent adjustments     2,227       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.

______

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.
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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