ALEXANDRIA, Va., July 23, 2026 (GLOBE NEWSWIRE) -- Burke & Herbert Financial Services Corp. (the “Company” or “Burke & Herbert”) (Nasdaq: BHRB) reported financial results for the quarter ended June 30, 2026. In addition, at its meeting on July 23, 2026, the board of directors declared a $0.55 per share regular cash dividend to be paid on September 1, 2026, to shareholders of record as of the close of business on August 14, 2026.
From David P. Boyle, Company Chair and Chief Executive Officer
“The successful integration of LINKBANCORP brings together two organizations with a shared commitment to being the quintessential community bank in our markets – one that is deeply invested in the people and businesses we serve every day. Our operating results for the second quarter reflect the strength of that combination, demonstrating both the financial benefits of the acquisition and the power of our disciplined execution. As we move forward, we remain firmly committed to delivering top‑quartile financial performance, just as we achieved following the Summit merger, and to creating sustained value for our shareholders, customers, employees, and the communities we call home.”
Q2 2026 Highlights
- On May 1, 2026, the Company announced the completion of the merger of LINKBANCORP, Inc. (“LNKB”) with and into Burke & Herbert and the merger of LINKBANK with and into Burke & Herbert Bank & Trust Company, effective May 1, 2026. The merger created a financial holding company with approximately $11.0 billion in assets and over 100 branches across Delaware, Kentucky, Maryland, Pennsylvania, Virginia, and West Virginia.
- Related to the merger, the total aggregate consideration paid was approximately $329.7 million and resulted in approximately $82.1 million of preliminary goodwill subject to adjustment in accordance with ASC 805, Business Combinations.
- The Company reported net income applicable to common shares of $9.3 million for the quarter and diluted earnings per common share (“EPS”) of $0.50; reflective of merger and other related items, adjusted (non-GAAP1) operating net income applicable to common shares was $37.5 million for the quarter and adjusted (non-GAAP1) diluted EPS was $2.03.
- For the quarter, the annualized return on average assets (“ROA”) was 0.37%, the annualized return on average common equity (“ROCE”) was 3.53%, and the annualized return on average tangible common equity (“ROATCE”) (non-GAAP1) was 4.07%.
- On an adjusted basis (non-GAAP1), ROA was 1.50%, ROCE was 14.27%, and ROATCE was 16.45%.
- Total shareholders’ equity was $1.2 billion and tangible common equity to tangible assets (non-GAAP1) was 9.21%, reflecting the Company’s strong capital position.
- Ending total gross loans were $8.0 billion and ending total deposits were $9.0 billion; ending loan-to-deposit ratio was 89.2%. The net interest margin (non-GAAP1) was 4.15% for the three months ended June 30, 2026.
- The balance sheet remains strong with ample liquidity. Total liquidity, including all available borrowing capacity with cash and cash equivalents, totaled $6.1 billion at the end of the second quarter.
- Asset quality metrics remain within the Company’s moderate risk profile with adequate reserve coverage.
- The Company continues to be well-capitalized, ending the quarter with 11.79%2 Common Equity Tier 1 capital to risk-weighted assets, 14.48%2 Total risk-based capital to risk-weighted assets, and a leverage ratio of 11.08%.2
Results of Operations reflecting the May 1, 2026 merger with LNKB and system & operational integration activities successfully completed in June 2026
Second Quarter 2026 compared to First Quarter 2026
The Company reported second quarter 2026 net income applicable to common shares of $9.3 million, or $0.50 per diluted common share, compared to first quarter 2026 net income applicable to common shares of $27.1 million, or $1.79 per diluted common share.
- Period-end total gross loans were $8.0 billion at June 30, 2026, an increase of $2.6 billion from March 31, 2026, mostly due to the merger. Additionally, the Company originated $333.0 million of new, relationship-based loan commitments during the quarter. During the month of April 2026, LNKB originated $78.2 million of new, relationship-based loan commitments.
- Period-end total deposits were $9.0 billion at June 30, 2026, an increase of $2.6 billion from March 31, 2026, mostly due to the merger. During the quarter, brokered deposits increased by $117.2 million and totaled $120.7 million at June 30, 2026, representing only 1.35% of total deposits.
- Net interest income for the quarter was $93.0 million compared to $71.8 million in the prior quarter due to an increase in interest income of $31.5 million, offset by an increase in interest expense of $10.3 million, primarily driven by the acquisition of LNKB.
- Net interest margin on a fully taxable equivalent basis (non-GAAP1) increased to 4.15% versus 4.09% in the first quarter of 2026, driven by growth in average interest-earning assets from the LNKB acquisition and higher securities yields, partially offset by lower loan yields and higher funding costs.
- Accretion income on loans during the quarter was $9.3 million, and the amortization expense impact on interest expense was $1.5 million, or 34.0 bps of net interest margin on an annualized basis in the second quarter of 2026. In the prior quarter, accretion income on loans during the quarter was $6.8 million, and the amortization expense impact on interest expense was $1.4 million, or 30.5 bps of net interest margin on an annualized basis.
- The cost of total deposits, including non-interest bearing deposits, was 1.75% in the second quarter of 2026, compared to 1.71% in the first quarter of 2026. The increase in the cost of deposits was mostly due to an increase in the rate paid on interest-bearing deposits and an increase in volume of interest-bearing deposits compared to the first quarter of 2026.
- The Company recorded credit provision expense in the second quarter of 2026 of $30.0 thousand on loans and a credit provision expense of $1.3 million on unfunded commitments. The Company’s allowance for credit losses as of June 30, 2026, was $94.5 million, or 1.2% of total loans. The credit provision expense increase in the unfunded commitment was primarily driven by a Day 2 impact of the LNKB acquisition.
- Total non-interest income increased $1.0 million to $13.8 million in the second quarter of 2026, compared to $12.9 million in the first quarter of 2026 driven by favorable contributions from company-owned life insurance income, debit card-related revenue, and other non-interest income categories. These increases were partially offset by lower income from the sale of LNKB-acquired securities compared to the prior quarter.
- Non-interest expense for the second quarter of 2026 was $93.5 million compared to $51.4 million in the first quarter of 2026; the increase was primarily driven by the LNKB acquisition. The increase in expense included conversion and integration costs, professional fees, contract termination costs, and employee-related expenses.
Regulatory capital ratios2
The Company continues to be well-capitalized with capital ratios that are above regulatory requirements. As of June 30, 2026, our Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were 11.8%2 and 14.5%2, respectively, and significantly above the well-capitalized requirements of 6.5% and 10%, respectively. The leverage ratio was 11.1%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 June 30, 2026, the Bank’s Common Equity Tier 1 capital to risk-weighted asset and Total risk-based capital to risk-weighted asset ratios were 13.3%2 and 14.3%,2 respectively, and significantly above the well-capitalized requirements. In addition, the Bank’s leverage ratio of 12.3%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 100 branches across Delaware, Kentucky, Maryland, Pennsylvania, 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 includes “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, including with respect to (or based on) the beliefs, goals, intentions, and expectations of Burke & Herbert regarding our: merger with LINKBANCORP, Inc., effective as of May 1, 2026, and the expected cost savings, synergies, returns, and other anticipated benefits from the integration of LNKB; revenues, earnings, earnings per share, loan production, asset quality, and capital levels, among other matters; estimates of the future costs and benefits of the actions we may take; assessments of expected losses on loans; assessments of interest rate and other market risks; ability to achieve 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; Burke & Herbert does not assume any duty, and does not undertake, to update such forward–looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise. 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 as a result of a variety of factors, many of which are beyond the control of Burke & Herbert. Such statements are based upon the current beliefs and expectations of the management of Burke & Herbert and are subject to significant risks and uncertainties outside of its control. Caution should be exercised against placing undue reliance on forward-looking statements.
The factors that could cause actual results to differ materially include the following: the possibility that the anticipated benefits of the merger will not be realized when expected or at all, including as a result of the impact of, or problems arising from (if any), the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Burke & Herbert and LNKB do business; costs or difficulties associated with newly developed or acquired operations; diversion of management’s attention from ongoing business operations and opportunities; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all and to successfully integrate LNKB’s operations and those of Burke & Herbert; that the integration of LNKB may be more difficult, time-consuming or costly than expected; revenues following the merger may be lower than expected; Burke & Herbert’s success in executing its business plans and strategies and managing the risks involved in the foregoing; and risks related to the potential impact of global macroeconomic conditions and changes in general economic, political and market factors on the merger 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, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and other reports Burke & Herbert files with the SEC.
Consolidated Statements of Income (unaudited)
(In thousands)
Three Months Ended Six Months Ended June 30, March 31, June 30, 2026 2025 2026 2026 2025 Interest income Taxable loans, including fees $116,770 $96,803 $88,083 $204,853 $193,834 Tax-exempt loans, including fees 55 43 40 95 89 Taxable securities 11,329 9,303 9,758 21,087 18,790 Tax-exempt securities 7,605 3,939 6,082 13,687 7,206 Other interest income 1,228 1,770 1,493 2,721 2,725 Total interest income 136,987 111,858 105,456 242,443 222,644 Interest expense Deposits 35,012 30,431 26,720 61,732 62,282 Short-term borrowings 5,897 4,438 4,590 10,487 7,630 Subordinated debt 2,990 2,730 2,269 5,259 5,459 Other interest expense 40 26 34 74 53 Total interest expense 43,939 37,625 33,613 77,552 75,424 Net interest income 93,048 74,233 71,843 164,891 147,220 Credit loss expense – loans and available-for-sale securities 30 717 213 243 1,617 Credit loss (recapture) – off-balance sheet credit exposures 1,349 (93) (201) 1,148 (492)Total provision for credit losses 1,379 624 12 1,391 1,125 Net interest income after credit loss expense 91,669 73,609 71,831 163,500 146,095 Non-interest income Fiduciary and wealth management 3,100 2,425 3,227 6,327 4,868 Service charges and fees 2,286 2,130 1,855 4,141 4,308 Net (loss) gain on securities (1,868) 38 1,799 (69) 39 Income from company-owned life insurance 3,207 2,982 1,479 4,686 4,175 Bank debit and other card revenue 3,421 3,024 2,835 6,256 5,908 Other non-interest income 3,703 2,278 1,658 5,361 3,602 Total non-interest income 13,849 12,877 12,853 26,702 22,900 Non-interest expense Salaries and wages 41,378 21,320 21,413 62,791 42,261 Pensions and other employee benefits 5,787 4,067 5,370 11,157 9,203 Occupancy 6,654 3,521 4,027 10,681 7,566 Equipment rentals, depreciation and maintenance 6,934 4,100 4,188 11,122 8,184 Core deposit intangible amortization 5,530 3,888 3,684 9,214 8,186 ATM, card and network expense 1,389 1,314 1,134 2,523 2,446 FDIC and other regulatory assessments 1,576 1,088 1,140 2,716 2,002 Other operating 24,258 10,007 10,425 34,683 19,121 Total non-interest expense 93,506 49,305 51,381 144,887 98,969 Income before income taxes 12,012 37,181 33,303 45,315 70,026 Income tax expense 2,524 7,284 5,954 8,478 12,928 Net income 9,488 29,897 27,349 36,837 57,098 Preferred stock dividends 225 225 225 450 450 Net income applicable to common shares $9,263 $29,672 $27,124 $36,387 $56,648 Earnings per common share Basic $0.50 $1.98 $1.80 $2.17 $3.78 Diluted 0.50 1.97 1.79 2.16 3.77
Consolidated Balance Sheets
(In thousands)
June 30, 2026 December 31, 2025 (Unaudited) (Audited)Assets Cash and due from banks $116,443 $53,497 Interest-earning deposits with banks 52,260 235,630 Cash and cash equivalents 168,703 289,127 Securities available-for-sale, at fair value 1,963,038 1,615,954 Restricted stock, at cost 56,850 42,187 Loans held-for-sale, at fair value 2,074 365 Loans 7,999,765 5,387,676 Allowance for credit losses (94,470) (67,823)Net loans 7,905,295 5,319,853 Other real estate owned 2,934 2,689 Premises and equipment, net 150,698 136,809 Accrued interest receivable 50,007 35,442 Intangible assets 80,754 41,747 Goodwill 118,345 34,149 Company-owned life insurance 269,046 213,200 Other assets 224,754 189,104 Total Assets $10,992,498 $7,920,626 Liabilities and Shareholders’ Equity Liabilities Non-interest-bearing deposits $2,058,076 $1,336,380 Interest-bearing deposits 6,910,006 5,067,561 Total deposits 8,968,082 6,403,941 Short-term borrowings 525,000 450,000 Subordinated debentures, net 134,789 70,222 Subordinated debentures owed to unconsolidated subsidiary trusts 17,394 17,268 Accrued interest and other liabilities 143,856 124,546 Total Liabilities 9,789,121 7,065,977 Shareholders’ Equity Preferred stock and surplus 10,413 10,413 Common stock 10,368 7,800 Common stock, additional paid-in capital 734,764 405,922 Retained earnings 533,861 517,058 Accumulated other comprehensive income (loss) (58,445) (58,960)Treasury stock (27,584) (27,584)Total Shareholders’ Equity 1,203,377 854,649 Total Liabilities and Shareholders’ Equity $10,992,498 $7,920,626
Details of Net Interest Margin (unaudited)
For the three months ended
Details of Net Interest Margin – Yield Percentages June 30 March 31 December 31 September 30 June 30 2026
2026
2025
2025
2025
Interest-earning assets: Loans: Taxable loans 6.54% 6.64% 6.79% 6.76% 6.90%Tax-exempt loans 6.15 7.12 7.03 6.78 5.90 Total loans 6.54 6.64 6.79 6.76 6.90 Interest-earning deposits and fed funds sold 3.28 4.25 3.83 4.33 4.68 Securities: Taxable securities 4.23 3.78 3.78 3.86 3.83 Tax-exempt securities 4.65 4.48 4.27 4.17 4.20 Total securities 4.41 4.05 3.96 3.97 3.95 Total interest-earning assets 6.06% 5.97% 6.06% 6.11% 6.25% Interest-bearing liabilities: Deposits: Interest-bearing demand 1.95% 1.98% 2.07% 2.18% 2.21%Money market & savings 1.95 1.83 1.94 2.02 2.01 Brokered CDs & time deposits 3.27 3.11 3.23 3.25 3.37 Total interest-bearing deposits 2.25 2.16 2.28 2.37 2.41 Borrowings: Short-term borrowings 3.64 3.78 3.93 3.85 3.91 Subordinated debt borrowings and other 9.16 10.46 10.62 9.49 9.62 Total interest-bearing liabilities 2.51% 2.44% 2.54% 2.63% 2.68% Taxable-equivalent net interest spread 3.55 3.53 3.52 3.48 3.57 Benefit from use of non-interest-bearing deposits 0.60 0.56 0.59 0.60 0.60 Taxable-equivalent net interest margin (non-GAAP1) 4.15% 4.09% 4.11% 4.08% 4.17%
Details of Net Interest Margin (unaudited)
For the three months ended
(In thousands)
Details of Net Interest Margin – Average Balances
June 30
March 31
December 31
September 30
June 30
2026 2026 2025 2025 2025 Interest-earning assets: Loans: Taxable loans $7,156,639 $5,380,967 $5,482,574 $5,584,315 $5,627,236 Tax-exempt loans 4,497 2,903 3,159 3,511 3,737 Total loans 7,161,136 5,383,870 5,485,733 5,587,826 5,630,973 Interest-earning deposits and fed funds sold 69,525 70,361 222,990 100,445 81,369 Securities: Taxable securities 1,137,512 1,128,486 1,031,603 1,034,136 1,059,310 Tax-exempt securities 830,459 696,580 623,417 586,129 476,586 Total securities 1,967,971 1,825,066 1,655,020 1,620,265 1,535,896 Total interest-earning assets $9,198,632 $7,279,297 $7,363,743 $7,308,536 $7,248,238 Interest-bearing liabilities: Deposits: Interest-bearing demand $2,706,931 $2,286,206 $2,315,064 $2,278,587 $2,239,100 Money market & savings 2,106,402 1,675,034 1,705,028 1,660,401 1,648,338 Brokered CDs & time deposits 1,421,123 1,044,605 1,100,215 1,135,546 1,173,213 Total interest-bearing deposits 6,234,456 5,005,845 5,120,307 5,074,534 5,060,651 Borrowings: Short-term borrowings 653,886 496,501 453,436 453,486 457,775 Subordinated debt borrowings and other 130,913 87,979 86,635 114,900 113,813 Total interest-bearing liabilities $7,019,255 $5,590,325 $5,660,378 $5,642,920 $5,632,239 Non-interest-bearing deposits $1,802,833 $1,332,090 $1,358,798 $1,338,188 $1,352,785
Supplemental Information (unaudited)
As of or for the three months ended
(In thousands, except ratios and per share amounts)
June 30 March 31 December 31 September 30 June 30 2026 2026 2025 2025 2025 Per common share information
Basic earnings $0.50 $1.80 $2.00 $1.98 $1.98 Diluted earnings 0.50 1.79 1.98 1.97 1.97 Cash dividends 0.55 0.55 0.55 0.55 0.55 Book value per common share 59.16 56.77 56.18 54.02 51.28 Tangible book value per common share (non-GAAP1) 49.29 51.83 51.13 48.72 45.73 Balance sheet-related (at period end, unless otherwise indicated)
Assets $10,992,498 $7,927,711 $7,920,626 $7,889,037 $8,053,084 Average interest-earning assets 9,198,632 7,279,297 7,363,743 7,308,536 7,248,238 Loans (gross) 7,999,765 5,404,667 5,387,676 5,559,479 5,590,457 Loans (net) 7,905,295 5,336,712 5,319,853 5,491,875 5,523,201 Securities, available-for-sale, at fair value 1,963,038 1,826,037 1,615,954 1,598,407 1,522,611 Intangible assets 80,754 38,063 41,747 45,431 49,114 Goodwill 118,345 36,253 34,149 34,149 34,149 Non-interest-bearing deposits 2,058,076 1,367,050 1,336,380 1,358,250 1,363,617 Interest-bearing deposits 6,910,006 4,965,215 5,067,561 5,053,802 5,027,357 Deposits, total 8,968,082 6,332,265 6,403,941 6,412,052 6,390,974 Brokered deposits 120,677 3,431 64,410 124,386 132,098 Uninsured deposits 3,157,531 2,060,145 2,057,873 2,022,739 1,963,566 Short-term borrowings 525,000 525,000 450,000 450,000 650,000 Subordinated debt, net 152,183 88,841 87,490 86,110 114,692 Unused borrowing capacity3 5,971,283 4,683,943 4,556,923 4,153,137 4,075,313 Total equity 1,203,377 864,504 854,649 822,231 780,018 Total common equity 1,192,964 854,091 844,236 811,818 769,605 Accumulated other comprehensive income (loss) (58,445) (69,002) (58,960) (68,454) (87,854) Asset Quality Provision for credit losses $1,379 $12 $136 $262 $624 Net loan charge-offs (recoveries) 1,159 81 (84) 226 1,214 Allowance for credit losses 94,470 67,955 67,823 67,604 67,256 Total delinquencies4 84,640 93,088 37,080 34,722 29,056 Nonperforming loans5 95,308 78,559 74,236 89,051 85,531
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
June 30
March 31
December 31
September 30
June 30
2026 2026 2025 2025 2025 Net income applicable to common shares $9,263 $27,124 $30,019 $29,739 $29,672 Add back significant items (tax effected): Merger-related 28,221 1,114 — — — Total significant items 28,221 1,114 — — — Operating net income $37,484 $28,238 $30,019 $29,739 $29,672 Weighted average dilutive shares 18,499,030 15,131,481 15,139,792 15,112,413 15,023,807 Adjusted diluted EPS $2.03 $1.87 $1.98 $1.97 $1.97 Non-interest expense $93,506 $51,381 $48,500 $48,092 $49,305 Remove significant items: Merger-related 32,387 1,410 — — — Total significant items 32,387 1,410 — — — Adjusted non-interest expense $61,119 $49,971 $48,500 $48,092 $49,305
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.
For the three months ended
June 30
March 31
December 31
September 30
June 30
2026 2026 2025 2025 2025 Interest income $136,987 $105,456 $111,140 $111,209 $111,858 Interest expense 43,939 33,613 36,218 37,439 37,625 Non-interest income 13,849 12,853 11,625 11,585 12,877 Total revenue (non-GAAP1) $106,897 $84,696 $86,547 $85,355 $87,110
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.
For the three months ended
June 30
March 31
December 31
September 30
June 30
2026 2026 2025 2025 2025 Income before taxes $12,012 $33,303 $37,911 $37,001 $37,181 Provision for (recapture of) credit losses 1,379 12 136 262 624 Pretax, pre-provision earnings (non-GAAP1) $13,391 $33,315 $38,047 $37,263 $37,805
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.
As of the three months ended
June 30
March 31
December 31
September 30
June 30
2026 2026 2025 2025 2025 Common shareholders' equity $1,192,964 $854,091 $844,236 $811,818 $769,605 Less: Intangible assets 80,754 38,063 41,747 45,431 49,114 Goodwill 118,345 36,253 34,149 34,149 34,149 Tangible common equity (non-GAAP1) $993,865 $779,775 $768,340 $732,238 $686,342 Shares outstanding at end of period 20,165,171 15,045,941 15,028,524 15,028,524 15,007,712 Tangible book value per common share (non-GAAP1) $49.29 $51.83 $51.13 $48.72 $45.73
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 shareholders' equity and retain the effect of accumulated other comprehensive income/(loss) in shareholders' equity.
As of the three months ended June 30 March 31 December 31 September 30 June 30 2026 2026 2025 2025 2025 Total assets $10,992,498 $7,927,711 $7,920,626 $7,889,037 $8,053,084 Less: Intangible assets 80,754 38,063 41,747 45,431 49,114 Goodwill 118,345 36,253 34,149 34,149 34,149 Tangible assets (non-GAAP1) $10,793,399 $7,853,395 $7,844,730 $7,809,457 $7,969,821 Tangible common equity / tangible assets (non-GAAP1) 9.21% 9.93% 9.79% 9.38% 8.61%
In management’s view, tangible common assets measures complement tangible common equity measures and may be meaningful to the Company, as well as analysts and investors, in assessing balance sheet composition and leverage and in facilitating comparisons with peers. These non‑GAAP measures enhance transparency by eliminating intangible assets from total assets, thereby providing additional insight into the relationship between the Company’s tangible asset base and its tangible common equity.
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.
Net Interest Margin & Taxable-Equivalent Net Interest Income (non-GAAP1) For the three months ended June 30 March 31 December 31 September 30 June 30 2026 2026 2025 2025 2025 Net interest income $93,048 $71,843 $74,922 $73,770 $74,233 Taxable-equivalent adjustments 2,036 1,628 1,420 1,305 1,059 Net interest income (Fully Taxable-Equivalent – FTE) $95,084 $73,471 $76,342 $75,075 $75,292 Average interest-earning assets $9,198,632 $7,279,297 $7,363,743 $7,308,536 $7,248,238 Net interest margin (non-GAAP1) 4.15% 4.09% 4.11% 4.08% 4.17%
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.
(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 June 30, 2026, are estimated.
(3) Includes Federal Home Loan Bank, Borrower-in-Custody (BIC), and correspondent bank availability.
(4) Total delinquencies represent accruing loans 30 days or more past due.
(5) Includes non-accrual loans and loans 90 days past due and still accruing.
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