Burke & Herbert Financial Services : Presentation (45a4e605 f1a4 4877 b3d2 53c62b0e0f0d)

Published: 2026-04-23 17:28:26 ET BHRB

Published on 04/23/2026 at 05:28 pm EDT

1Q26 Update (Nasdaq: BHRB)

April 2026

Cautionary Statement Regarding Forward-Looking Information

such integration may be more difficult, time-consuming or costly than expected; revenues following the proposed transaction may be lower than expected; Burke & Herbert's success in executing its business plans and strategies and managing the risks involved in the foregoing; the dilution caused by Burke & Herbert's issuance of additional shares of its capital stock in connection with the proposed transaction; effects of the announcement, pendency or completion of the proposed transaction on the ability of Burke & Herbert and LINK to retain customers and retain and hire key personnel and maintain relationships with their suppliers, and on their operating results and businesses generally; and risks related to the potential impact of global macroeconomic conditions and changes in general economic, political and market factors on the proposed transaction 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 and other reports Burke & Herbert 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.

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.

On April 13, 2026, we announced receipt of all required regulatory approvals or waivers necessary to complete a previously announced merger with LINKBANCORP, Inc., with an expected closing on May 1, 2026, pending satisfaction of customary closing conditions. When and if the pending transaction is completed, the combined organization will create a financial holding company with approximately $11 billion in assets and more than 100 locations across Delaware, Kentucky, Maryland, Pennsylvania, Virginia, and West Virginia, with more than 1,000 employees serving our communities.

Total Assets

$7.9 Billion

Total Gross Loans

$5.4 Billion

Total Deposits

$6.3 Billion

Return on Average Assets

1.39%

Return on Average Equity

12.62%

More than 75 locations across 5 states

Headquarters: Alexandria, VA Corporate Centers: Kingstowne, VA

Moorefield, WV

Financial results as of or for the quarter ended Mar. 31, 2026; returns are annualized

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.

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.

Unmatched Legacy & Reputation

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

Strong & Consistent Financial Performance

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

Market Leadership in a High-Growth Region

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

Community Banking with a Competitive Edge

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

Future Growth and Innovation -

Three Pillars of our Strategic Plan

Continue to Maintain & Expand Our Trusted Advisor Relationship Model

Expand Existing Markets & Pursue New Market Opportunities

Deliver our Full Suite of Market Expected Products & Services

Highlights

Built for the Long-Term

Net Income

Diluted Earnings per Share (EPS)

Net Interest Margin1

Allowance Coverage Ratio

Total Risk-Based Capital Ratio2

Net interest margin and tangible book value are non-GAAP financial measures (see Appendix)

Estimated

Change from 4Q24 to 1Q26

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

Financial results as of or for the quarter ended Mar. 31, 2026

Loan to Deposit Ratio

85.4%

Uninsured Deposit %

32.5%

Efficiency Ratio

60.7%

Book Value

$56.77 per common share

Tangible Book Value1

$51.83 per common share

Tangible Book Value1Growth3

+23.2%

Commercial Real Estate

$2,806,846

AD&C

Residential

$1,128,740

Owner-Occupied CRE $579,365

Commercial & Industrial

$504,229

Commercial Real Estate Category $ by Asset Class % by Asset Class

Retail Real Estate $ 601,129 21%

Office Bldgs. / Condos 522,984 19

Multi-Family 464,716 17

Hotels / Motels 371,922 13

Industrial / Warehouse 288,313 10

Other 263,151 10

Self-Storage 119,316 4

Nursing-Assisted Living 111,260 4

Restaurants and Gas Stations 64,055 2

1Q26 Highlights

$ 2,806,846 100%

Consumer

$32,801

$352,686

The commercial real estate (CRE) portfolio is well-diversified across asset classes:

Loan Segment Adjustable Rate Fixed Rate

- CRE + AD&C as a percentage of Bank total risk-based capital is estimated

Commercial Real Estate $ 1,258,183 $ 1,548,663 Residential 524,515 604,225

Owner-occupied CRE 308,404 270,961

AD&C 245,713 106,973

Commercial & Industrial 328,021 176,208

Consumer 4,025 28,776

$ 2,668,861 $ 2,735,806

at 310%

- AD&C as a percentage of Bank total risk-based capital is estimated at 35%

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

Category

Average Rate QTD

Demand (non-interest bearing)

− %

Demand (interest bearing)

1.98

Money Market & Savings

1.83

Brokered CDs & Time Deposits

3.11

Total Interest-Bearing Deposits

2.16

Total Deposits

1.71 %

Demand (noninterest)

$1,367,050

Money Market & Savings

$1,701,707

Demand (interest)

$2,243,090

1Q26 Highlights

Loan-to-deposit ratio of 85.4%

Brokered deposits represent 0.1% of total deposits

Uninsured deposits totaled $2.06 billion, representing 32.5% 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

Short-term borrowings total $525 million with total unused borrowing capacity1 of $4.7 billion Short-term borrowings average rate for 1Q26 was 3.78%

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

Capital Ratio Trends1

12.6%

13.2%

13.9%

12.2%

12.8%

13.5%

Common Equity Tier 1 Ratio

13.8%

2Q25 3Q25 4Q25 1Q26

Tier 1 Capital Ratio

14.2%

2Q25 3Q25 4Q25 1Q26

Total Capital Ratio

15.3%

15.4%

16.2%

16.5%

2Q25 3Q25 4Q25 1Q26

Leverage Ratio

10.4% 10.7% 10.9% 11.3%

2Q25 3Q25 4Q25 1Q26

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 1Q26 capital ratios are estimated. The Company redeemed $30 million of subordinated debt on September 30, 2025.

Asset Quality Trends

in bps

1.20%

1.22%

1.26%

8.6

1.6

(0.6)

0.6

2Q25

3Q25

4Q25

1Q26

2Q25

3Q25

4Q25

1Q26

Allowance for Credit Losses / NPLs

NPLs / Total Loans

1.53%

1.60%

1.38%

1.45%

78.63%

91.36%

75.92%

86.50%

Allowance Coverage Ratio

2Q25 3Q25 4Q25 1Q26

NCOs / Average Loans (annualized)

2Q25 3Q25 4Q25 1Q26

Credit Management

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

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

Income Statement ($ in 000s)

March 31, Dec. 31, Sept. 30, June 30, March 31,

2026 2025 2025 2025 2025

Interest income $ 105,456 $ 111,140 $ 111,209 $ 111,858 $ 110,786

Interest expense 33,613 36,218 37,439 37,625 37,799

Total revenue (non-GAAP)

84,696

86,547

85,355

87,110

83,010

Pretax, pre-provision earnings (non-GAAP)

33,315

38,047

37,263

37,805

33,346

Income (loss) before income taxes

33,303

37,911

37,001

37,181

32,845

Net income (loss)

27,349

30,244

29,964

29,897

27,201

Preferred stock dividends 225 225 225 225 225

Income tax expense (benefit) 5,954 7,667 7,037 7,284 5,644

Provision for (recapture of) credit loss 12 136 262 624 501

Noninterest expense 51,381 48,500 48,092 49,305 49,664

Noninterest income 12,853 11,625 11,585 12,877 10,023

Net income (loss) applicable to common shares $ 27,124 $ 30,019 $ 29,739 $ 29,672 $ 26,976

Per common share information

Basic earnings

1.80

2.00

1.98

1.80

Diluted earnings

1.79

1.98

1.97

1.80

Cash dividends

0.55

Book value

56.77

56.18

54.02

51.28

49.90

Tangible book value

51.83

51.13

48.72

45.73

44.17

Appendix:

Balance Sheet Trends

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

Balance Sheet (at period end), $ in 000s

2026

2025

Assets

7,927,711

7,920,626

7,889,037

8,053,084

7,838,090

Average interest-earning assets

7,279,297

7,363,743

7,308,536

7,248,238

7,171,931

Loans (gross)

5,404,667

5,387,676

5,559,479

5,590,457

5,647,507

Loans (net)

5,336,712

5,319,853

5,491,875

5,523,201

5,579,754

Securities, available-for-sale, at fair value

1,826,037

1,615,954

1,598,407

1,522,611

1,436,869

Intangible assets

38,064

41,747

45,431

49,114

53,002

Goodwill

36,253

34,149

32,842

Non-interest bearing deposits

1,367,050

1,336,380

1,358,250

1,363,617

1,382,427

Interest-bearing deposits

4,965,215

5,067,561

5,053,802

5,027,357

5,159,444

Deposits, total

6,332,265

6,403,941

6,412,052

6,390,974

6,541,871

Brokered deposits

3,431

64,410

124,386

132,098

246,902

Uninsured deposits

2,060,145

2,057,873

2,022,739

1,963,566

1,943,227

Short-term borrowings

525,000

450,000

650,000

300,000

Subordinated debt, net

88,841

87,490

86,110

114,692

113,289

Unused borrowing capacity

4,683,943

4,556,923

4,153,137

4,075,313

4,082,879

Total equity

864,504

854,649

822,231

780,018

758,000

Total common equity

854,091

844,236

811,818

769,605

747,587

Accumulated other comprehensive income (loss)

(69,002)

(58,960)

(68,454)

(87,854)

(88,024)

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.

747,587

769,605 $

811,818 $

844,236 $

854,091 $

Common Shareholders' Equity

March 31,

2025

June 30,

2025

Sept. 30,

2025

Dec. 31,

2025

March 31,

2026

Less: Goodwill and intangible

assets, net

74,317 75,896 79,580 83,263 85,844

Tangible common equity (non-

GAAP)

779,774

768,340

732,238

686,342

661,743

Shares outstanding at end of

period

15,045,941 15,028,524 15,028,524 15,007,712 14,982,807

Tangible book value per common

51.83 $

51.13 $

48.72 $

45.73 $

44.17

Total Assets 7,927,711 7,920,626 7,889,037 8,053,084 7,838,090

Less: Goodwill and Intangible

assets, net

74,317

75,896

79,580

83,263

85,844

Tangible assets (non-GAAP) $ 7,853,394 $ 7,844,730 $ 7,809,457 $ 7,969,821 $ 7,752,246

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,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

March 31,

2025

Interest income

$ 105,456

$ 111,140

$ 111,209

$ 111,858

$ 110,786

Interest expense

33,613

36,218

37,439

37,625

37,799

Non-interest income

12,853

11,625

11,585

12,877

10,023

Total revenue (non-GAAP)

$ 84,696

$ 86,547

$ 85,355

$ 87,110

$ 83,010

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.

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2026

2025

Net interest income

$ 71,843

$ 74,922

$ 73,770

$ 74,233

$ 72,987

Taxable-equivalent adjustments

1,628

1,420

1,305

1,059

881

Net interest income (Fully

Taxable-Equivalent - FTE)

73,471

76,342

75,075

75,292

73,868

Average interest-earning assets

$ 7,279,297

$ 7,363,743

$ 7,308,536

$ 7,248,238

$ 7,171,931

Net interest margin (non-GAAP)

4.09%

4.11%

4.08%

4.17%

4.18%

Return and Adjusted Return on Average Tangible Common Equity and Average Assets: 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.

March 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

March 31,

2025

Average common shareholders' equity

$ 861,274

$ 832,411

$ 782,577

$ 757,354

$ 740,417

Average goodwill and other intangibles

(76,923)

(79,338)

(83,079)

(85,562)

(88,899)

Average deferred tax liabilities on goodwill and other intangibles

8,602

9,382

9,787

10,567

11,389

Average tangible common equity (non-GAAP)

$ 792,953

$ 762,455

$ 709,285

$ 682,359

$ 662,907

Average total assets

$ 7,913,098

$ 7,979,528

$ 7,890,929

$ 7,864,185

$ 7,768,738

Average goodwill and other intangibles

(76,923)

(79,338)

(83,079)

(85,562)

(88,899)

Average deferred tax liabilities on goodwill and other intangibles

8,602

9,382

9,787

10,567

11,389

Average tangible total assets (non-GAAP)

$ 7,844,777

$ 7,909,572

$ 7,817,637

$ 7,789,190

$ 7,691,228

Net income applicable to common shareholders

$ 27,124

$ 30,019

$ 29,739

$ 29,672

$ 26,976

Operating net income applicable to common shareholders (non-GAAP)

$ 28,238

$ 30,019

$ 29,739

$ 29,672

$ 26,976

Annualized return on average common equity

12.77%

14.31%

15.08%

15.71%

14.78%

Annualized adjusted return on average common equity (non-GAAP)

13.30%

14.31%

15.08%

15.71%

14.78%

Annualized return on average tangible common equity (non-GAAP)

13.87%

15.62%

16.63%

17.44%

16.50%

Annualized adjusted return on average tangible common equity

14.44%

15.62%

16.63%

17.44%

16.50%

Annualized return on average assets

1.39%

1.49%

1.50%

1.51%

1.41%

Annualized adjusted return on average assets (non-GAAP)

1.45%

1.49%

1.50%

1.51%

1.41%

March 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

March 31,

2025

Net income applicable to $ 27,124

$ 30,019

$ 29,739

$ 29,672

$ 26,976

Add back significant items

(tax effected):

Merger-related

1,114

Total significant items

1,114

Operating net income

$ 28,238

$ 30,019

$ 29,739

$ 29,672

$ 26,976

Weighted average dilutive shares

15,131,481

15,139,792

15,112,413

15,023,807

15,026,376

Adjusted diluted EPS

1.87

1.98

1.97

1.80

Non-interest expense

$ 51,381

$ 48,500

$ 48,092

$ 49,305

$ 49,664

Remove significant items:

Merger-related

1,410

Total significant items

1,410

Adjusted non-interest expense

$ 49,971

$ 48,500

$ 48,092

$ 49,305

$ 49,664

Operating net income, adjusted diluted EPS, and adjusted non-interest expense: 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.

common shares

Disclaimer

Burke & Herbert Financial Services Corp. published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 21:19 UTC.