Burke & Herbert Q2 net income rises

Overview

• Burke & Herbert Q2 net income rises to $29.7 mln, EPS at $1.97

• Net interest income for Q2 increases to $74.2 mln

• Company maintains strong balance sheet with 4.17% net interest margin (non-GAAP)

Outlook

• Company plans expansion in Bethesda, Maryland and Fredericksburg and Richmond, Virginia

• Burke & Herbert focuses on expense management and asset quality

• Company committed to delivering increased value

Result Drivers

• LOAN STRATEGY - Shift to relationship-based loans led to $90.8 mln in non-strategic loan exits and $200 mln in new originations

• DEPOSIT COSTS - Lower deposit costs contributed to a decrease in interest expense, enhancing net interest income

• NON-INTEREST INCOME - Increase driven by life insurance proceeds and card network partnership income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Burke & Herbert Financial Services Corp is $70.00, about 7.2% above its July 23 closing price of $64.94

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPn46lpDya