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Burke & Herbert Financial Services Corp. (BHRB-6.85%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's financial performance, including a significant increase in net income to $35.0 million, up from $22.7 million in the previous year. This increase is primarily attributed to the merger with Summit Financial Group, Inc., which contributed to higher interest income and non-interest income.
Net interest income rose to $225.8 million, driven by increased loan interest income due to the merger. The net interest margin improved to 3.08% from 2.85% in 2023.
The provision for credit losses increased to $24.2 million, reflecting the one-time CECL Day 2 provision for non-PCD assets acquired in the merger.
Non-interest income increased by $18.2 million, with significant contributions from service charges and fees, fiduciary and wealth management, and other non-interest income.
Non-interest expense rose by $111.4 million, largely due to merger-related costs and increased salaries and wages.
Total assets increased to $7.8 billion, with net loans rising to $5.6 billion. Deposits also increased significantly to $6.5 billion.
The company reported that its allowance for credit losses as a percentage of total loans was 1.20%, reflecting an increase due to the merger.
Burke & Herbert continues to focus on managing its interest rate risk and maintaining a strong capital position, with a reported total risk-based capital ratio of 14.57%.
The filing also outlines the company's market area, competitive landscape, and regulatory environment, emphasizing its strategic focus on community banking and personalized customer service.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Burke & Herbert Financial Services Corp. annual 10-K report dated March 17, 2025. To report an error, please email earnings@qz.com.