1. BHRB declared a $0.55 cash dividend for shareholders. 2. A $50 million share repurchase program was authorized. 3. Net income for Q1 2025 was $27 million, up from Q4 2024. 4. Strong capital ratios indicate the company remains well-capitalized. 5. BHRB emphasizes long-term growth and technology investments.
The announcement of a dividend and share repurchase suggests positive cash flow and shareholder value enhancement. Historically, similar actions have led to upward stock movements in financially stable firms.
The financial health and shareholder returns signals positive prospects, and such news usually garners significant investor interest.
Immediate dividend and repurchase announcements typically have an instant effect on stock prices; however, long-term impacts depend on sustained financial performance.
/PRNewswire/ -- 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.
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."
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 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-GAAP) operating income was $26.6 million, or $1.77 per diluted common share.
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% and 14.7%, respectively, and significantly above the well-capitalized requirements of 6.5% and 10%, respectively. The leverage ratio was 10.1% 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% and 14.6%, respectively, and significantly above the well-capitalized requirements. In addition, the Bank's leverage ratio of 11.2% 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.
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.
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.