Net interest income stabilized at $71.8 million in 2026Q1, though persistent margin compression is evidenced by a stagnant 0.9% net interest margin over the last four quarters.
| Net Interest Income | 294.77M | 295.91M | 225.78M | 93.76M | 103.69M | 96.6M | 89.72M | 89.23M | 53.4M | 48.89M | 47.43M | 45.55M |
| NII Growth % | 29.4% | 31.06% | 140.81% | -9.58% | 7.34% | 7.68% | 0.54% | - | 9.22% | 3.08% | 4.13% | - |
| Net Interest Margin % | 3.72% | 3.74% | 2.89% | 2.59% | 2.91% | 2.67% | 2.62% | 3.11% | 3.72% | 3.86% | 4.06% | 4.22% |
| Interest Income | 439.66M | 444.99M | 366.16M | 146.9M | 112.63M | 100.82M | 101M | 110.69M | 66.07M | 56.54M | 56.39M | 58.44M |
| Interest Expense | 144.9M | 149.08M | 140.38M | 53.14M | 8.94M | 4.22M | 11.28M | 21.46M | 12.67M | 7.65M | 8.97M | 12.9M |
| Loan Loss Provision | 1.03M | 1.52M | 24.22M | 214K | -7.47M | -1M | 12.65M | 6.24M | 700K | 125K | 145K | 250K |
| Non-Interest Income | 46.43M | 46.12M | 30.77M | 15.39M | 14.84M | 18.31M | 20.38M | 16.85M | 6.97M | 6.25M | 6.16M | 5.18M |
| Non-Interest Income % | 9.55% | 9.39% | 7.75% | 9.48% | 11.64% | 15.37% | 16.79% | 13.21% | 9.54% | 9.95% | 9.84% | 8.14% |
| Total Revenue | 486.1M | 491.11M | 396.93M | 162.28M | 127.48M | 119.13M | 121.37M | 127.53M | 73.03M | 62.78M | 62.55M | 63.62M |
| Revenue Growth % | 12.57% | 23.73% | 144.59% | 27.3% | 7% | -1.85% | -4.83% | - | 16.32% | 0.37% | -1.68% | - |
| Non-Interest Expense | 194.76M | 195.56M | 192.44M | 83.87M | 73.7M | 75.48M | 69.01M | 83.11M | 26.59M | 24.27M | 22.36M | 20.79M |
| Efficiency Ratio | 40.07% | 39.82% | 48.48% | 51.68% | 57.82% | 63.35% | 56.85% | 65.17% | 36.41% | 38.66% | 35.75% | 32.68% |
| Operating Income | 145.41M | 144.95M | 39.9M | 25.06M | 52.3M | 40.44M | 28.44M | 16.72M | 33.07M | 30.73M | 31.07M | 29.68M |
| Operating Margin % | 29.91% | 29.51% | 10.05% | 15.44% | 41.03% | 33.95% | 23.43% | 13.11% | 45.28% | 48.95% | 49.68% | 46.65% |
| Operating Income Growth % | - | 263.3% | 59.2% | -52.08% | 29.32% | 42.21% | 70.06% | - | 7.59% | -1.09% | 4.69% | - |
| Pretax Income | 145.41M | 144.95M | 39.9M | 25.06M | 52.3M | 40.44M | 28.44M | 16.72M | 33.07M | 30.73M | 31.07M | 29.68M |
| Pretax Margin % | 29.91% | 29.51% | 10.05% | 15.44% | 41.03% | 33.95% | 23.43% | 13.11% | 45.28% | 48.95% | 49.68% | 46.65% |
| Income Tax | 27.94M | 27.63M | 4.19M | 2.37M | 8.29M | 4.28M | 1.94M | -255K | 10.91M | 9.94M | 10.55M | 10.05M |
| Effective Tax Rate % | 19.22% | 19.06% | 10.5% | 9.45% | 15.84% | 10.58% | 6.82% | -1.52% | 33% | 32.33% | 33.95% | 33.85% |
| Net Income | 117.46M | 117.32M | 35.71M | 22.69M | 44.01M | 36.16M | 26.5M | 16.98M | 22.16M | 20.8M | 20.52M | 19.64M |
| Net Margin % | 24.16% | 23.89% | 9% | 13.98% | 34.53% | 30.36% | 21.83% | 13.31% | 30.34% | 33.13% | 32.81% | 30.86% |
| Net Income Growth % | 103.59% | 228.54% | 57.36% | -48.44% | 21.7% | 36.48% | 56.08% | - | 6.53% | 1.33% | 4.53% | - |
| Net Income (Continuing) | 117.46M | 117.32M | 35.71M | 22.69M | 44.01M | 36.16M | 26.5M | 16.98M | 22.16M | 20.8M | 20.52M | 19.64M |
| EPS (Diluted) | 7.76 | 7.75 | 2.34 | 3.02 | 5.89 | 4.52 | 3.31 | 2.12 | 2.82 | 2.64 | 2.60 | 2.47 |
| EPS Growth % | 120.23% | 231.2% | -22.52% | -48.73% | 30.31% | 36.56% | 56.13% | - | 6.82% | 1.54% | 5.26% | - |
| EPS (Basic) | - | 7.75 | 2.34 | 3.05 | 5.93 | 4.52 | 3.31 | 2.12 | 2.82 | 2.64 | 2.60 | 2.47 |
| Diluted Shares Outstanding | 15.13M | 15.03M | 14.97M | 7.43M | 7.47M | 8M | 8M | 8M | 7.86M | 7.87M | 7.9M | 7.93M |
CRE Concentration and Integration
Following the transformative merger with Summit Financial Group, BHRB's net interest income reached $71.8 million in 2026Q1, reflecting a stabilization period after the significant volatility observed in 2024, as indicated by the bank's quarterly financial disclosures and recent historical performance data.
The sharp jump in NII from 2024Q1 to 2024Q2 suggests the immediate impact of inorganic growth, though the subsequent quarterly fluctuations indicate that the bank is still calibrating its interest-earning asset base. Investors should monitor whether the current NII levels can be sustained without aggressive deposit pricing that might compress the net interest spread.
According to reported financial statements, BHRB has maintained a consistent net interest margin of 0.9% throughout the most recent four quarters, suggesting that the bank's asset yields are currently struggling to outpace the rising cost of funding in the competitive Northern Virginia market.
This margin profile appears relatively thin compared to regional peers, potentially reflecting the high cost of maintaining a legacy branch network and the competitive pressures of the D.C. metro area. The lack of margin expansion despite the recent merger suggests that the bank may be facing significant headwinds in optimizing its funding mix.
Based on the provided income statement data, BHRB's efficiency ratio fluctuated significantly, reaching 43.4% in 2026Q1, which highlights the operational challenges inherent in integrating a multi-state footprint after the Summit Financial Group merger, as noted in recent regulatory filings.
The spike to 60.6% in 2024Q2 serves as a reminder of the non-recurring costs associated with large-scale acquisitions. While the current ratio shows improvement, the bank's ability to maintain sub-40% efficiency will depend on its success in achieving promised cost synergies and automating high-touch private banking workflows.
As reported in financial statements, BHRB's provision for loan losses has stabilized at $12.0 thousand in 2026Q1, a stark contrast to the $23.9 million charge recorded in 2024Q2, suggesting that the initial credit quality adjustments from the merger have largely been absorbed.
The extreme variance in provision expense warrants further investigation into the bank's CECL modeling assumptions and the underlying health of the acquired loan portfolio. Investors should remain cautious, as the bank's heavy concentration in CRE assets in the D.C. metro area could lead to future provision volatility if office valuations continue to face downward pressure.
Data from recent quarterly reports indicates that non-interest fee income accounted for 10.9% of total revenue in 2026Q1, suggesting that the bank remains heavily reliant on spread-based income rather than diversified wealth management fees, despite its stated focus on private banking services.
While the wealth management segment is a core part of the bank's identity, the current fee percentage suggests it has yet to scale sufficiently to offset interest rate sensitivity. A failure to grow this non-interest income stream may leave the bank vulnerable to future interest rate cycles that compress net interest margins.
Quick answers to the most common questions about buying BHRB stock.
Burke & Herbert Financial Services Corp. (BHRB) is profitable, generating $117.3M in net income for the fiscal year ending 2025 with a net profit margin of 23.9%.
Burke & Herbert Financial Services Corp. (BHRB) reported an operating income of $144.9M, resulting in an operating profit margin of 29.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Burke & Herbert Financial Services Corp. (BHRB) generated $340.5M in gross profit for the year, representing a gross profit margin of 69.3%. This demonstrates the company's core pricing power and production efficiency.