bhrb-20250425
false000196433300019643332025-04-252025-04-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

April 25, 2025
Date of Report (date of earliest event reported)
___________________________________
Burke & Herbert Financial Services Corp.
(Exact name of registrant as specified in its charter)
___________________________________

Virginia
(State or other jurisdiction of
incorporation or organization)
001-41633
(Commission File Number)
92-0289417
(I.R.S. Employer Identification Number)
100 S. Fairfax Street
Alexandria, VA 22314
(Address of principal executive offices and zip code)
(703) 666-3555
(Registrant's telephone number, including area code)
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common stock, par value $0.50BHRBThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 - Results of Operations and Financial Condition.
On April 25, 2025, Burke & Herbert Financial Services Corp. (the "Company") issued a press release announcing its results of operations and financial condition for the quarter ended March 31, 2025. A copy of the press release is included as Exhibit 99.1 to this report.
Item 7.01 - Regulation FD Disclosure
The management of Burke & Herbert Financial Services Corp. anticipates meetings with investors during 2025. A copy of presentation materials will be made available on the investor relations section of the Company's website (https://www.burkeandherbertbank.com) and is furnished as exhibit 99.2 to this report. All information included in this presentation is presented as of the dates indicated, and the Company does not assume any obligation to correct or update such information in the future. The Company disclaims any inferences regarding the materiality of such information which otherwise may arise as a result of it furnishing such information under Item 7.01 of this Form 8-K.

In accordance with General Instruction B.2 of Form 8-K, the information furnished in this Item 7.01, including Exhibit 99.2, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject to the liabilities of Section 18 of the Exchange Act.
Item 8.01 - Other Events
On April 25, 2025, the Company announced its Board of Directors declared a regular quarterly cash dividend on the Company's common stock of $0.55 per share, payable on June 2, 2025, to shareholders of record as of the close of business on May 15, 2025.

Item 9.01 - Financial Statements and Exhibits
(d) The following exhibits are being filed herewith:

Exhibit No.Description
99.1
99.2
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 25th day of April, 2025.



Burke & Herbert Financial Services Corp.
By:
/s/ Roy E. Halyama
Name:
Roy E. Halyama
Title:
Executive Vice President, CFO

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Burke & Herbert Financial Services Corp. Announces First Quarter 2025 Results, Declares Common Stock Dividend, and Announces Share Repurchase Program
For Immediate Release
April 25, 2025
Alexandria, VA – Burke & Herbert Financial Services Corp. (the “Company” or “Burke & Herbert”) (Nasdaq: BHRB) reported financial results for the quarter year ended March 31, 2025, and disclosed that, at its meeting on April 24, 2025, the board of directors declared a $0.55 per share regular cash dividend to be paid on June 2, 2025, to shareholders of record as of the close of business on May 15, 2025.
In addition, the Company announced that its board of directors has authorized a share repurchase program (“program”), pursuant to which the Company may purchase up to $50.0 million of Burke & Herbert common shares in the open market or in privately negotiated transactions. The timing and price of repurchases as well as the actual number of shares repurchased under the program will be at the discretion of the Company and will depend on a variety of factors, including general market conditions, the stock price, share availability, alternate uses of capital, the Company’s financial performance, and other factors. The program may be discontinued, suspended or reimplemented at any time at the Company’s discretion.
Q1 2025 Highlights
•For the quarter, net income applicable to common shares totaled $27.0 million, and diluted earnings per common share (“EPS”) was $1.80. For the quarter ended December 31, 2024, net income applicable to common shares totaled $19.6 million, and diluted EPS was $1.30. For the quarter ended December 31, 2024, adjusted (non-GAAP1) operating net income applicable to common shares totaled $26.6 million and adjusted diluted (non-GAAP1) EPS was $1.77.
•For the quarter, the annualized return on average assets was 1.41% and the annualized return on average equity was 14.57%.
•Ending total gross loans were $5.6 billion and ending total deposits were $6.5 billion; ending loan-to-deposit ratio was 86.3%. The net interest margin (non-GAAP1) was 4.18% for the first quarter.
•The balance sheet remains strong with ample liquidity. Total liquidity, including all available borrowing capacity with cash and cash equivalents, totaled $4.2 billion at the end of the first quarter.
•Asset quality remains stable across the loan portfolio with adequate reserves.
•The Company continues to be well-capitalized, ending the quarter with 11.7%2 Common Equity Tier 1 capital to risk-weighted assets, 14.7%2 Total risk-based capital to risk-weighted assets, and a leverage ratio of 10.1%.2
From David P. Boyle, Company Chair and Chief Executive Officer
“I’m pleased with our first quarter results that represent the first full quarter following our merger-related systems conversion. The balance sheet remains strong with ample liquidity, solid capital ratios, and adequate loss reserves. Expense management improved even as we continue to make investments for the long-term, including technology improvements to drive efficiency, our expansion in Bethesda, Maryland, and Richmond, Virginia, and the relocation of certain operating activities to lower cost markets. With this start to 2025, we are well-positioned for disciplined growth that should deliver increased value for our customers, employees, communities, and shareholders.”

(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 March 31, 2025, are estimated.
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Results of Operations
First Quarter 2025 compared to Fourth Quarter 2024
The Company reported first quarter 2025 net income applicable to common shares of $27.0 million, or $1.80 per diluted common share, compared to fourth quarter 2024 net income to applicable to common shares of $19.6 million, or $1.30 per diluted common share.
Included in the fourth quarter of 2024 were pre-tax charges of $8.9 million of expenses related to the merger with Summit. Excluding these items from the fourth quarter of 2024 on a tax effected basis, adjusted (non-GAAP1) operating income was $26.6 million, or $1.77 per diluted common share.
•Period-end total gross loans were $5.6 billion at March 31, 2025, a decrease of $24.7 million from December 31, 2024, primarily due to the exiting of loans that do not align with the Company’s desired risk profile.
•Period-end total deposits were $6.5 billion at March 31, 2025, an increase of $26.6 million from December 31, 2024 as the Company continues its focus on deposit gathering strategies.
•Net interest income for the quarter was $73.0 million compared to $70.7 million in the prior quarter due to a decrease in interest expense of $4.3 million, partially offset by a decrease in interest income of $2.0 million. Lower interest expense was primarily attributable to lower deposit costs and the decrease in interest income was due to lower loan and security interest income. Lower loan interest income was mainly due to lower loan accretion related to purchase accounting treatment.
•Net interest margin on a fully taxable equivalent basis (non-GAAP1) increased to 4.18% versus 3.91% in the fourth quarter of 2024, primarily due to an increase in yield from interest earning assets combined with a lower rate on interest-bearing liabilities compared to the fourth quarter of 2024. The increase in yield from interest earning assets was slightly offset by lower accelerated loan accretion income when compared to the fourth quarter of 2024.
•Accretion income on loans during the quarter was $11.4 million, and the amortization expense impact on interest expense was $2.2 million, or 12.9 bps of net interest margin, in the first quarter of 2025. In the prior quarter, accretion income on loans during the quarter was $12.0 million, and the amortization expense impact on interest expense was $3.8 million, or 11.4 bps of net interest margin.    
•The cost of total deposits, including non-interest bearing deposits, was 1.99% in the first quarter of 2025, compared to 2.17% in the fourth quarter of 2024. The decrease in the cost of total deposits is due to a decrease in the rate as the balance of interest-bearing deposits increased by $24.1 million.
•The Company recorded a provision expense on loans in the first quarter of 2025 of $900.0 thousand reflective of economic uncertainty.
•The allowance for credit losses at March 31, 2025, was $67.8 million, or 1.2% of total loans.
•Total non-interest income for the first quarter of 2025 was $10.0 million compared to $11.8 million in the prior quarter, primarily due to a gain on sale of securities and collection of death proceeds from company owned-life insurance which increased non-interest income by $1.4 million in the fourth quarter of 2024 compared to the first quarter of 2025.
•Non-interest expense for the first quarter of 2025 was $49.7 million compared to $52.5 million adjusted non-interest expense (non-GAAP1) in the fourth quarter of 2024, primarily reflecting



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cost save realizations following the merger-related conversion that occurred in the fourth quarter of 2024.
Regulatory capital ratios2
The Company continues to be well-capitalized with capital ratios that are above regulatory requirements. As of March 31, 2025, our Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were 11.7%2 and 14.7%2, respectively, and significantly above the well-capitalized requirements of 6.5% and 10%, respectively. The leverage ratio was 10.1%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 March 31, 2025, the Bank’s Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were 13.5%2 and 14.6%,2 respectively, and significantly above the well-capitalized requirements. In addition, the Bank’s leverage ratio of 11.2%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 75 branches across Delaware, Kentucky, Maryland, 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 contains “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, with respect to the beliefs, goals, intentions, and expectations of the Company regarding revenues, earnings, earnings per share, loan production, asset quality, and capital levels, among other matters; our estimates of future costs and benefits of the actions we may take; our assessments of expected losses on loans; our assessments of interest rate and other market risks; our ability to achieve our 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; the Company does not assume any duty, does not undertake, and specifically disclaims any obligation to update such forward–looking statements, whether written or oral, that may be made from time to time, whether because of new information, future events, or otherwise, except as required by law. 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 because of a variety of factors, many of which are beyond the control of the Company. Further, factors identified herein are not necessarily all of the factors that could cause the Company’s actual results, performance or



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achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm the Company. Accordingly, you should consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by the Company and not place undue reliance on forward-looking statements. 
The risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to, the following: costs or difficulties associated with newly developed or acquired operations; changes in general economic, political, or market trends (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, as well as the impact from recently announced and future 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; the effects of any cybersecurity breaches; and the other factors discussed in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” section of the Company's Annual Report on Form 10–K for the year ended December 31, 2024, the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, September 30, 2024, and other reports the Company files with the SEC.



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Burke & Herbert Financial Services Corp.
Consolidated Statements of Income (unaudited)
(In thousands)
Three Months Ended
March 31,
December 31,
202520242024
Interest income
Taxable loans, including fees$97,031 $28,045 $97,903 
Tax-exempt loans, including fees46 — 37 
Taxable securities9,487 8,943 9,868 
Tax-exempt securities3,267 1,361 3,191 
Other interest income955 396 1,794 
Total interest income110,786 38,745 112,793 
Interest expense
Deposits31,851 12,931 35,919 
Short-term borrowings3,192 3,655 3,383 
Subordinated debt2,729 — 2,754 
Other interest expense27 28 27 
Total interest expense37,799 16,614 42,083 
Net interest income72,987 22,131 70,710 
Credit loss expense (recapture) - loans and available-for-sale securities900 (670)960 
Credit loss (recapture) - off-balance sheet credit exposures(399)— (127)
Total provision for (recapture of) credit losses501 (670)833 
Net interest income after credit loss expense72,486 22,801 69,877 
Non-interest income
Fiduciary and wealth management2,443 1,419 2,429 
Service charges and fees2,089 1,606 4,447 
Net gains on securities1 — 744 
Income from company-owned life insurance1,193 547 1,887 
Other non-interest income4,297 682 2,284 
Total non-interest income10,023 4,254 11,791 
Non-interest expense
Salaries and wages20,941 9,518 25,818 
Pensions and other employee benefits5,136 2,365 4,840 
Occupancy4,045 1,538 3,630 
Equipment rentals, depreciation and maintenance4,084 1,281 4,531 
Other operating15,458 6,463 22,591 
Total non-interest expense49,664 21,165 61,410 
Income before income taxes32,845 5,890 20,258 
Income tax expense 5,644 678 465 
Net income27,201 5,212 19,793 
Preferred stock dividends225 — 225 
Net income applicable to common shares$26,976 $5,212 $19,568 



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Burke & Herbert Financial Services Corp.
Consolidated Balance Sheets
(In thousands)
March 31, 2025December 31, 2024
(Unaudited)(Audited)
Assets
Cash and due from banks$63,294 $35,554 
Interest-earning deposits with banks85,552 99,760 
Cash and cash equivalents148,846 135,314 
Securities available-for-sale, at fair value1,436,869 1,432,371 
Restricted stock, at cost35,112 33,559 
Loans held-for-sale, at fair value1,302 2,331 
Loans5,647,507 5,672,236 
Allowance for credit losses(67,753)(68,040)
Net loans5,579,754 5,604,196 
Other real estate owned2,625 2,783 
Premises and equipment, net132,289 132,270 
Accrued interest receivable34,481 34,454 
Intangible assets53,002 57,300 
Goodwill32,842 32,783 
Company-owned life insurance184,018 182,834 
Other assets196,950 161,990 
Total Assets
$7,838,090 $7,812,185 
Liabilities and Shareholders’ Equity
Liabilities
Non-interest-bearing deposits$1,382,427 $1,379,940 
Interest-bearing deposits5,159,444 5,135,299 
Total deposits6,541,871 6,515,239 
Short-term borrowings300,000 365,000 
Subordinated debentures, net96,212 94,872 
Subordinated debentures owed to unconsolidated subsidiary trusts17,077 17,013 
Accrued interest and other liabilities124,930 89,904 
Total Liabilities 7,080,090 7,082,028 
Shareholders’ Equity
Preferred stock and surplus10,413 10,413 
Common stock7,777 7,770 
Common stock, additional paid-in capital402,682 401,172 
Retained earnings452,736 434,106 
Accumulated other comprehensive income (loss)(88,024)(95,720)
Treasury stock(27,584)(27,584)
Total Shareholders’ Equity 758,000 730,157 
Total Liabilities and Shareholders’ Equity $7,838,090 $7,812,185 




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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
March 31December 31September 30June 30March 31
20252024202420242024
Interest-earning assets:
Loans:
Taxable loans
6.96 %6.91 %7.34 %7.33 %5.41 %
Tax-exempt loans
5.80 5.87 5.63 5.55 — 
Total loans
6.96 6.91 7.34 7.33 5.41 
Interest-earning deposits and fed funds sold
5.76 4.48 3.43 3.54 3.82 
Securities:
Taxable securities
3.85 3.82 4.05 4.48 3.63 
Tax-exempt securities
3.85 3.55 3.58 3.05 2.67 
Total securities
3.85 3.75 3.91 4.05 3.43 
Total interest-earning assets6.31 %6.22 %6.56 %6.49 %4.66 %
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
2.16 %2.51 %3.19 %3.00 %0.63 %
Money market & savings
2.02 1.60 1.43 1.53 1.97 
Brokered CDs & time deposits
3.85 4.55 4.82 4.55 4.12 
Total interest-bearing deposits
2.53 2.76 3.02 2.90 2.41 
Borrowings:
Short-term borrowings
3.88 4.17 4.06 4.38 4.82 
Subordinated debt borrowings and other
9.85 9.87 10.16 10.30 — 
Total interest-bearing liabilities
2.76 %2.98 %3.21 %3.14 %2.71 %
Taxable-equivalent net interest spread
3.55 3.24 3.35 3.35 1.95 
Benefit from use of non-interest-bearing deposits0.63 0.67 0.72 0.71 0.73 
Taxable-equivalent net interest margin (non-GAAP1)
4.18 %3.91 %4.07 %4.06 %2.68 %

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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
March 31December 31September 30June 30March 31
20252024202420242024
Interest-earning assets:
Loans:
Taxable loans
$5,651,937 $5,634,157 $5,621,531 $4,481,993 $2,085,826 
Tax-exempt loans
4,057 3,115 4,310 3,041 — 
Total loans
5,655,994 5,637,272 5,625,841 4,485,034 2,085,826 
Interest-earning deposits and fed funds sold
40,757 152,537 175,265 94,765 41,692 
Securities:
Taxable securities
1,039,391 1,031,024 996,749 988,492 989,875 
Tax-exempt securities
435,789 452,937 440,781 426,092 259,699 
Total securities
1,475,180 1,483,961 1,437,530 1,414,584 1,249,574 
Total interest-earning assets$7,171,931 $7,273,770 $7,238,636 $5,994,383 $3,377,092 
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
$2,216,243 $2,560,445 $2,144,567 $1,587,914 $489,779 
Money market & savings
1,633,307 1,366,276 1,725,387 1,480,985 922,732 
Brokered CDs & time deposits
1,253,841 1,247,900 1,328,076 1,141,758 745,945 
Total interest-bearing deposits
5,103,391 5,174,621 5,198,030 4,210,657 2,158,456 
Borrowings:
Short-term borrowings
336,245 325,084 304,849 376,063 307,446 
Subordinated debt borrowings and other
112,383 111,021 109,557 72,643 — 
Total interest-bearing liabilities
$5,552,019 $5,610,726 $5,612,436 $4,659,363 $2,465,902 
Non-interest-bearing deposits
$1,371,615 $1,411,202 $1,389,134 $1,207,443 $812,199 
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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)


March 31December 31September 30June 30March 31
20252024202420242024
Per common share information
Basic earnings (loss)
$1.80 $1.31 $1.83 $(1.41)$0.70 
Diluted earnings (loss)
1.80 1.30 1.82 (1.41)0.69 
Cash dividends0.55 0.55 0.53 0.53 0.53 
Book value49.90 48.08 48.63 45.72 42.92 
Tangible book value (non-GAAP1)
44.17 42.06 42.32 39.11 42.92 
Balance sheet-related (at period end, unless otherwise indicated)
Assets$7,838,090 $7,812,185 $7,864,913 $7,810,193 $3,696,390 
Average interest-earning assets
7,171,931 7,273,770 7,238,636 5,994,383 3,377,092 
Loans (gross)5,647,507 5,672,236 5,574,037 5,616,724 2,118,155 
Loans (net)5,579,754 5,604,196 5,506,220 5,548,707 2,093,549 
Securities, available-for-sale, at fair value1,436,869 1,432,371 1,436,431 1,414,870 1,275,520 
Intangible assets53,002 57,300 61,598 65,895 — 
Goodwill32,842 32,783 32,783 32,783 — 
Non-interest-bearing deposits1,382,427 1,379,940 1,392,123 1,397,030 822,767 
Interest-bearing deposits5,159,444 5,135,299 5,208,702 5,242,541 2,167,346 
Deposits, total6,541,871 6,515,239 6,600,825 6,639,571 2,990,113 
Brokered deposits246,902 244,802 345,328 403,668 370,847 
Uninsured deposits1,943,227 1,926,724 1,999,403 1,931,786 700,846 
Short-term borrowings300,000 365,000 320,163 285,161 360,000 
Subordinated debt, net113,289 111,885 110,482 109,064 — 
Unused borrowing capacity3
4,082,879 4,092,378 2,353,963 2,162,112 704,233 
Total equity758,000 730,157 738,059 693,126 319,308 
Total common equity747,587 719,744 727,646 682,713 319,308 
Accumulated other comprehensive income (loss)(88,024)(95,720)(75,758)(100,430)(100,954)




(3) Includes Federal Home Loan Bank, Borrower-in-Custody (BIC), and correspondent bank availability.



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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)


March 31December 31September 30June 30March 31
20252024202420242024
Income statement
Interest income$110,786 $112,793 $118,526 $96,097 $38,745 
Interest expense37,799 42,083 45,347 36,332 16,614 
Non-interest income10,023 11,791 10,616 9,505 4,254 
Total revenue (non-GAAP1)
83,010 82,501 83,795 69,270 26,385 
Non-interest expense49,664 61,410 50,826 64,432 21,165 
Pretax, pre-provision earnings (non-GAAP1)
33,346 21,091 32,969 4,838 5,220 
Provision for (recapture of) credit losses501 833 147 23,910 (670)
Income (loss) before income taxes
32,845 20,258 32,822 (19,072)5,890 
Income tax expense (benefit)
5,644 465 5,200 (2,153)678 
Net income (loss)27,201 19,793 27,622 (16,919)5,212 
Preferred stock dividends225 225 225 225 — 
Net income (loss) applicable to common shares
$26,976 $19,568 $27,397 $(17,144)$5,212 
Ratios
Return on average assets (annualized)1.41 %1.00 %1.40 %(1.06)%0.58 %
Return on average equity (annualized)14.57 10.49 15.20 (12.44)6.67 
Net interest margin (non-GAAP1)
4.18 3.91 4.07 4.06 2.68 
Efficiency ratio59.83 74.44 60.66 93.02 80.22 
Loan-to-deposit ratio86.33 87.06 84.44 84.59 70.84 
Common Equity Tier 1 (CET1) capital ratio2
11.72 11.53 11.40 10.91 16.56 
Total risk-based capital ratio2
14.73 14.57 14.45 13.91 17.54 
Leverage ratio2
10.09 9.80 9.66 9.04 11.36 
Allowance coverage ratio1.20 1.20 1.22 1.21 1.16 
Allowance for credit losses as a percentage of non-performing loans104.63 177.34 189.05 207.10 91.99 
Non-performing loans as a percentage of total loans1.15 0.68 0.64 0.58 1.26 
Non-performing assets as a percentage of total assets0.86 0.53 0.49 0.46 0.72 
Net charge-offs to average loans (annualized)
8.5 bps
5.2 bps
2.0 bps
5.4 bps
0.5 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
March 31December 31September 30June 30March 31
20252024202420242024
Net income (loss) applicable to common shares$26,976 $19,568 $27,397 $(17,144)$5,212 
Add back significant items (tax effected):
Merger-related— 7,069 2,449 18,806 537 
Day 2 non-PCD Provision— — — 23,305 — 
Total significant items— 7,069 2,449 42,111 537 
Operating net income$26,976 $26,637 $29,846 $24,967 $5,749 
Weighted average dilutive shares15,026,376 15,038,442 15,040,145 12,262,979 7,527,489 
Adjusted diluted EPS4
$1.80 $1.77 $1.98 $2.04 $0.76 
Non-interest expense$49,664 $61,410 $50,826 $64,432 $21,165 
Remove significant items:
Merger-related— 8,948 3,101 23,805 680 
Total significant items$— $8,948 $3,101 $23,805 $680 
Adjusted non-interest expense$49,664 $52,462 $47,725 $40,627 $20,485 

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 or Day 2 non-PCD provision. 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
March 31December 31September 30June 30March 31
20252024202420242024
Interest income$110,786 $112,793 $118,526 $96,097 $38,745 
Interest expense37,799 42,083 45,347 36,332 16,614 
Non-interest income10,023 11,791 10,616 9,505 4,254 
Total revenue (non-GAAP1)
$83,010 $82,501 $83,795 $69,270 $26,385 
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.
(4) Weighted average diluted shares for Q2 2024 calculated only for computation of adjusted diluted EPS. Weighted average diluted shares for GAAP diluted EPS are the same as shares for calculating basic EPS due to the antidilutive effect of the diluted shares when considering the GAAP net loss for the quarter.



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
March 31December 31September 30June 30March 31
20252024202420242024
Income (loss) before taxes
$32,845 $20,258 $32,822 $(19,072)$5,890 
Provision for (recapture of) credit losses501 833 147 23,910 (670)
Pretax, pre-provision earnings (non-GAAP1)
$33,346 $21,091 $32,969 $4,838 $5,220 
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)
For the three months ended
March 31December 31September 30June 30March 31
20252024202420242024
Common shareholders' equity$747,587 $719,744 $727,646 $682,713 $319,308 
Less:
Intangible assets53,002 57,300 61,598 65,895 — 
Goodwill32,842 32,783 32,783 32,783 — 
Tangible common equity (non-GAAP1)
$661,743 $629,661 $633,265 $584,035 $319,308 
Shares outstanding at end of period14,982,807 14,969,104 14,963,003 14,932,169 7,440,025 
Tangible book value per common share$44.17 $42.06 $42.32 $39.11 $42.92 

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 stockholders' equity and retain the effect of accumulated other comprehensive income/(loss) in stockholders' equity.

12
Burke & Herbert Financial Services Corp.
Non-GAAP Reconciliations (unaudited)
(In thousands, except ratios and per share amounts)
Net Interest Margin & Taxable-Equivalent Net Interest Income (non-GAAP1)
As of or for the three months ended
March 31December 31September 30June 30March 31
20252024202420242024
Net interest income$72,987 $70,710 $73,179 $59,765 $22,131 
Taxable-equivalent adjustments881 858 847 688 362 
Net interest income (Fully Taxable-Equivalent - FTE)$73,868 $71,568 $74,026 $60,453 $22,493 
Average interest-earning assets
$7,171,931 $7,273,770 $7,238,636 $5,994,383 $3,377,092 
Net interest margin (non-GAAP1)
4.18 %3.91 %4.07 %4.06 %2.68 %
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.
13
1 1Q25 Update (Nasdaq: BHRB) April 2025

 
2 Cautionary Statement Regarding Forward-Looking Information This communication contains “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, with respect to the beliefs, goals, intentions, and expectations of the Company regarding revenues, earnings, earnings per share, loan production, asset quality, and capital levels, among other matters; our estimates of future costs and benefits of the actions we may take; our assessments of expected losses on loans; our assessments of interest rate and other market risks; our ability to achieve our 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; the Company does not assume any duty, does not undertake, and specifically disclaims any obligation to update such forward–looking statements, whether written or oral, that may be made from time to time, whether because of new information, future events, or otherwise, except as required by law. 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 because of a variety of factors, many of which are beyond the control of the Company. Further, factors identified herein are not necessarily all of the factors that could cause the Company’s actual results, performance or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm the Company. Accordingly, you should consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by the Company and not place undue reliance on forward-looking statements. The risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to, the following: costs or difficulties associated with newly developed or acquired operations; changes in general economic, political, or market trends (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, as well as the impact from recently announced and future 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; the effects of any cybersecurity breaches; and the other factors discussed in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” section of the Company's Annual Report on Form 10–K for the year ended December 31, 2024, the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, September 30, 2024, and other reports the Company files with the SEC. Non-GAAP Financial Measures This presentation contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures may include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of the Company’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about the Company to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

 
3 Introduction • Thank you for your interest in Burke & Herbert Financial Services Corp., and its wholly owned subsidiary Burke & Herbert Bank & Trust Company. As a community banking institution, we are headquartered in Old Town Alexandria, Virginia, and have served the banking, borrowing and investing needs of businesses, organizations, families, and individuals since 1852. • As a true community bank, we are deeply tied to the people, neighborhoods, and institutions where we live and work. Our employees form a diverse, dedicated, close-knit team that upholds a culture of customer service and forges strong and lasting relationships with our customers and shared communities. We are selective in our hiring, proud of the caliber of our people, and encourage a collegial environment in which each individual feels valued. • We strive to be your quintessential community bank that delivers extraordinary experiences and top-quartile results, while staying true to our values and remaining focused on what we can control.

 
4 Overview 173 Years Providing Service Beyond Expectations Total Assets $7.8 Billion Total Gross Loans $5.6 Billion Total Deposits $6.5 Billion Return on Average Assets 1.41% Return on Average Equity 14.57% More than 75 locations across 5 states Financial results for the quarter ended March 31, 2025; Returns are annualized Headquarters: Alexandria, VA Corporate Centers: Kingstowne, VA Moorefield, WV

 
5 Core Values $2.5MM Elevate Everyone We embrace our differences and respect everyone's unique contributions. We seek to empower individuals through our actions and words because we believe that when one succeeds, we all succeed. Always Invested We take ownership and responsibility for our work and are invested in the long-term success of our customers, colleagues, and communities. Serve & Lead We are dedicated to serving our customers and our teams, leading with quiet confidence and integrity to inspire the trust of all those we serve. Deliver More We're driven to go above and beyond, continually innovating and improving on how we deliver the best possible experiences and outcomes for all those we serve. Driven by our values, we endeavor to be your quintessential community bank — delivering service beyond expectations

 
6 Investment Strategy $2.5MM • Oldest continuously operated bank in Virginia with 170+ years of trust • Multi-generational customer relationships, deeply imbedded in the community • Publicly traded yet maintains a family-owned culture with a long-term view Future Growth and Innovation – Three Pillars of our Strategic Plan Continue to Maintain & Expand Our Trusted Advisor Relationship Model Profitably Expand our Market Share Grow Our Fee-Based Sources of Revenue • Well-capitalized and resilient with low earnings volatility across economic cycles • Desired moderate risk profile with a fortress balance sheet • Stable deposit base with loyal customer retention • Our goal is to consistently deliver top quartile returns relative to our peers • Headquartered in historic Alexandria, VA, a prime location in the D.C. metro area • Strong presence in Northern VA’s affluent, high-income markets • Significant M&A and organic opportunities for deeper market penetration • Relationship-driven banking model vs. larger impersonal regional and super- regional banks • Faster, local decision-making for businesses and individuals • Longstanding trust gives us a competitive edge in our markets • A seasoned management team with large bank experience Unmatched Legacy & Reputation Strong & Consistent Financial Performance Market Leadership in a High-Growth Region Community Banking with a Competitive Edge

 
7 1Q25 At a Glance Highlights • Our objective is to build and maintain a fortress balance sheet - Maintain credit discipline through the cycle - Ensure proper allowances for credit losses - Stay liquid and have multiple sources of liquidity - Manage capital for the long term - Stress test the balance sheet for severe shocks - Maintain relatively neutral interest rate position - Continually improve risk, governance, and controls - Operate an effective risk-adjusted return culture Loan to Deposit Ratio 86.3% Uninsured Deposit % 29.7% Net Interest Margin1 4.18% Annualized Efficiency Ratio 59.8% Tangible Book Value1 $44.17 per common share Financial results for the quarter ended March 31, 2025 $27.2 million Net Income $1.80 Diluted Earnings per Share (EPS) +27 bps QoQ Net Interest Margin1 1.20% Allowance Coverage Ratio 14.73% Total Risk-Based Capital Ratio2 (1) Net interest margin and tangible book value are non- GAAP financial measures (see Appendix). (2) Estimated. Built for the Long-Term

 
8 Loan Portfolio as of 1Q25 ($ in 000s) Residential $1,161,406 Owner-Occupied CRE $589,889 Commercial & Industrial $613,219 AD&C $322,963 Consumer $150,457 Commercial Real Estate $2,809,573 Loans, gross $5,647,507 Loan Segment Adjustable Rate Fixed Rate Commercial Real Estate $ 1,245,137 $ 1,564,436 Residential 568,547 592,859 Owner-occupied CRE 303,113 286,776 AD&C 230,807 92,156 Commercial & Industrial 417,781 195,438 Consumer 110,844 39,613 $ 2,876,229 $ 2,771,278 • The commercial real estate (CRE) portfolio is well-diversified across asset classes: - CRE + AD&C as a percentage of Bank total risk-based capital is estimated at 332% - AD&C as a percentage of Bank total risk-based capital is estimated at 34% • The CRE loan portfolio geographic footprint is spread across the West Virginia and greater DC / Maryland / Virginia (DMV) area with minimal office building exposure within Washington D.C. • In line with our overall strategy, we are focused on commercial & industrial loan growth and greater portfolio granularity Commercial Real Estate Category $ by Asset Class % by Asset Class Retail Real Estate $ 605,666 22% Multi-Family 520,362 19% Office Bldgs. / Condos 461,164 16% Hotels / Motels 389,077 14% Industrial / Warehouse 277,562 10% Other 234,546 8% Nursing-Assisted Living 132,556 5% Self-Storage 117,463 4% Restaurants and Gas Stations 71,177 2% $ 2,809,573 100% 1Q25 Highlights

 
9 Security Portfolio as of 1Q25 ($ in 000s) U.S Treasury & Agency $151,793 Municipal $716,545 Agency RMBS $53,893 Non-Agency RMBS $246,032 Agency CMBS $40,811 Non-Agency CMBS $135,010 Asset-Backed $60,786 Other $31,999 AFS Portfolio FV $1,436,869 • Portfolio duration is approximately 4.6 years • 72% of unrealized losses have a duration of approximately 5.6 years; remainder less than 2.5 years • Unrealized losses are the result of the interest rate environment • AOCI accretion is expected to be approximately 5.5% per quarter assuming a stagnant interest rate environment • The current portfolio is held as available-for-sale, and there is no intent to reclassify any part • Majority of non-agency CMBS and ABS are equity enhanced through structure and credit support Category Net Unrealized Losses Amortized Cost WA Yield U.S. Treasury & Agency $ 13,448 $ 165,241 1.31% Municipal 79,044 795,589 2.80% Agency RMBS 3,411 57,304 3.57% Non-Agency RMBS 8,478 254,510 4.07% Agency CMBS 791 41,602 4.73% Non-Agency CMBS 2,781 137,791 3.73% Asset-Backed 610 61,396 5.66% Other 929 32,928 7.37% $ 109,492 $ 1,546,361 3.23% 1Q25 Highlights Unrealized losses (net of taxes) impacts book value by $5.63 per common share

 
10 Funding Sources as of 1Q25 ($ in 000s) Demand (non- interest) $1,382,427 Demand (interest) $2,224,844 Money Market & Savings $1,667,447 Brokered CDs $246,902 Time Deposits & Other $1,020,251 Deposits $6,541,871 Category Average Rate QTD Demand (non-interest bearing) − % Demand (interest bearing) 2.16 % Money Market & Savings 2.02 % Brokered CDs 4.60 % Time Deposits 3.68 % Total Interest-Bearing Deposits 2.53 % Total Deposits 1.99%0 • Loan-to-deposit ratio of 86.3% • Brokered deposits represent 3.8% of total deposits • Uninsured deposits totaled $1.9 billion, representing 29.7% of total deposit balance • Stress tests are performed on liquidity and capital on a quarterly basis • We believe we have ample liquidity to withstand significant stress 1Q25 Highlights Short-term borrowings total $300 million with total unused borrowing capacity of $4.1 billion Short-term borrowings average rate for 1Q25 was 3.88%

 
11 Capital Ratio Trends1,2 16.6% 10.9% 11.4% 11.5% 11.7% 1Q24 2Q24 3Q24 4Q24 1Q25 Common Equity Tier 1 Ratio 16.6% 11.3% 11.8% 12.0% 12.1% 1Q24 2Q24 3Q24 4Q24 1Q25 Tier 1 Capital Ratio 17.5% 13.9% 14.5% 14.6% 14.7% 1Q24 2Q24 3Q24 4Q24 1Q25 Total Capital Ratio 11.4% 9.0% 9.7% 9.8% 10.1% 1Q24 2Q24 3Q24 4Q24 1Q25 Leverage Ratio Capital Management • We take a forward-looking, disciplined approach to capital management that emphasizes acceptable risk-adjusted returns over the long-term • Our capital management priorities include - Supporting customers - Funding business investments - Maintaining appropriate capital in light of economic conditions and regulatory expectations - Returning excess capital to shareholders • Modeled stress scenarios include evaluating the impact of deposit shocks, interest rate scenarios, and general balance sheet repositioning • Stress scenarios result in capital levels well above well-capitalized levels (1) All 1Q25 capital ratios are estimated. (2) Note: The merger with Summit Financial Group, Inc., occurred during 2Q24.

 
12 Asset Quality Trends 1.16% 1.21% 1.22% 1.20% 1.20% 1Q24 2Q24 3Q24 4Q24 1Q25 Allowance Coverage Ratio 92.0% 207.1% 189.1% 177.3% 104.6% 1Q24 2Q24 3Q24 4Q24 1Q25 Allowance for Credit Losses / NPLs 1.26% 0.58% 0.64% 0.68% 1.15% 1Q24 2Q24 3Q24 4Q24 1Q25 NPLs / Total Loans • Our objective is to maintain a moderate risk profile through the economic cycle • Credit risk management is embedded in our risk culture and in our decision-making processes - Managed through specific policies and processes - Measured and evaluated against our risk appetite and credit concentration limits - Reported, along with specific mitigation activities, to management and the Board of Directors through our governance structure • Loan reviews include ongoing monitoring procedures that involve additional stress testing of interest rate movements and collateral performance Credit Management 0.5 5.4 2.0 5.2 8.5 1Q24 2Q24 3Q24 4Q24 1Q25 NCOs / Average Loans (annualized) in bps

 
13 Final Thoughts • Our business model is built on customer service and is designed to consistently deliver top quartile returns relative to our peers • Our approach is concentrated on growing and deepening relationships across our businesses that meet our risk/return measures • We are focused on our strategic priorities which are designed to enhance value over the long term - Being a trusted advisor - Growing fee revenue - Profitably expanding our markets • We take the long-view and maintain a moderate risk profile through the economic cycle

 
14 Appendix: Income Statement and Per Share Information Income Statement ($ in 000s) March 31, Dec. 31, Sept. 30, June 30, March 31, 2025 2024 2024 2024 2024 Per common share information Interest income $ 110,786 $ 112,793 $ 118,526 $ 96,097 $ 38,745 Interest expense 37,799 42,083 45,347 36,332 16,614 Noninterest income 10,023 11,791 10,616 9,505 4,254 Total revenue (non-GAAP) 83,010 82,501 83,795 69,270 26,385 Noninterest expense 49,664 61,410 50,826 64,432 21,165 Pretax, pre-provision earnings (non-GAAP) 33,346 21,091 32,969 4,838 5,220 Provision for (recapture of) credit loss 501 833 147 23,910 (670) Income (loss) before income taxes 32,845 20,258 32,822 (19,072) 5,890 Income tax expense (benefit) 5,644 465 5,200 (2,153) 678 Net income (loss) 27,201 19,793 27,622 (16,919) 5,212 Preferred stock dividends 225 225 225 225 - Net income (loss) applicable to common shares $ 26,976 $ 19,568 $ 27,397 $ (17,144) $ 5,212 Basic earnings $ 1.80 $ 1.31 $ 1.83 $ (1.41) $ 0.70 Diluted earnings 1.80 1.30 1.82 (1.41) 0.69 Cash dividends 0.55 0.55 0.53 0.53 0.53 Book value 49.90 48.08 48.63 45.72 42.92 Tangible book value 44.17 42.06 42.32 39.11 42.92

 
15 Appendix: Balance Sheet Trends March 31, Dec. 31, Sept. 30, June 30, March 31, 2025 2024 2024 2024 2024Balance Sheet (at period end), $ in 000s Assets 7,838,090$ 7,812,185$ 7,864,913$ 7,810,193$ 3,696,390$ Average interest-earning assets 7,171,931 7,273,770 7,238,636 5,994,383 3,377,092 Loans (gross) 5,647,507 5,672,236 5,574,037 5,616,724 2,118,155 Loans (net) 5,579,754 5,604,196 5,506,220 5,548,707 2,093,549 Securities, available-for-sale, at fair value 1,436,869 1,432,371 1,436,431 1,414,870 1,275,520 Intangible assets 53,002 57,300 61,598 65,895 - Goodwill 32,842 32,783 32,783 32,783 - Non-interest bearing deposits 1,382,427 1,379,940 1,392,123 1,397,030 822,767 Interest-bearing deposits 5,159,444 5,135,299 5,208,702 5,242,541 2,167,346 Deposits, total 6,541,871 6,515,239 6,600,825 6,639,571 2,990,113 Brokered deposits 246,902 244,802 345,328 403,668 370,847 Uninsured deposits 1,943,227 1,926,724 1,999,403 1,931,786 700,846 Short-term borrowings 300,000 365,000 320,163 285,161 360,000 Subordinated debt, net 113,289 111,885 110,482 109,064 - Unused borrowing capacity 4,082,879 4,092,378 2,353,963 2,162,112 704,233 Total equity 758,000 730,157 738,059 693,126 319,308 Total common equity 747,587 719,744 727,646 682,713 319,308 Accumulated other comprehensive income (loss) (88,024) (95,720) (75,758) (100,430) (100,954)

 
16 Appendix: Notes on Non-GAAP Financial Measures Total Common Equity, Tangible Book Value & Tangible Assets: 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 since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive income/(loss) in stockholders' equity. March 31, Dec. 31, Sept. 30, June 30, March 31, 2025 2024 2024 2024 2024 Common Shareholders’ Equity $ 747,587 $ 719,744 $ 727,646 $ 682,713 $ 319,308 Less: Goodwill and intangible assets, net 85,844 90,083 94,381 98,678 - Tangible common equity (non- GAAP) 661,743 629,661 633,265 584,035 319,308 Shares outstanding at end of period 14,982,807 14,969,104 14,963,003 14,932,169 7,440,025 Tangible book value per common share $ 44.17 $ 42.06 $ 42.32 $ 39.11 $ 42.92 Total Assets 7,838,090 7,812,185 7,864,913 7,810,193 3,696,390 Less: Goodwill and Intangible assets, net 85,844 90,083 94,381 98,678 - Tangible assets (non-GAAP) $ 7,752,246 $ 7,722,102 $ 7,770,532 $ 7,711,515 $ 3,696,390

 
17 Appendix: Notes on Non-GAAP Financial Measures Total Revenue: 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. March 31, Dec. 31, Sept. 30, June 30, March 31, 2025 2024 2024 2024 2024 Interest income $ 110,786 $ 112,793 $ 118,526 $ 96,097 $ 38,745 Interest expense 37,799 42,083 45,347 36,332 16,614 Non-interest income 10,023 11,791 10,616 9,505 4,254 Total revenue (non-GAAP) $ 83,010 $ 82,501 $ 83,795 $ 69,270 $ 26,385

 
18 Appendix: Notes on Non-GAAP Financial Measures March 31, Dec. 31, Sept. 30, June 30, March 31, 2025 2024 2024 2024 2024 Net Interest Margin: 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. Net interest income $ 72,987 $ 70,710 $ 73,179 $ 59,765 $ 22,131 Taxable-equivalent adjustments 881 858 847 688 362 Net interest income (Fully Taxable-Equivalent - FTE) $ 73,868 $ 71,568 $ 74,026 $ 60,453 $ 22,493 Average interest-earning assets $ 7,171,931 $ 7,273,770 $ 7,238,636 $ 5,994,383 $ 3,377,092 Net interest margin (non-GAAP) 4.18% 3.91% 4.07% 4.06% 2.68%