--- title: "Burke & Herbert Financial Services | 8-K: FY2026 Q2 Revenue: USD 150.84 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/293661218.md" datetime: "2026-07-23T20:11:28.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293661218.md) - [en](https://longbridge.com/en/news/293661218.md) - [zh-HK](https://longbridge.com/zh-HK/news/293661218.md) --- # Burke & Herbert Financial Services | 8-K: FY2026 Q2 Revenue: USD 150.84 M Revenue: As of FY2026 Q2, the actual value is USD 150.84 M. EPS: As of FY2026 Q2, the actual value is USD 0.5, missing the estimate of USD 1.61. EBIT: As of FY2026 Q2, the actual value is USD 15 M. Burke & Herbert Financial Services Corp. reported financial results for the second quarter of 2026, which included the completion of its merger with LINKBANCORP, Inc. on May 1, 2026, creating a financial holding company with approximately $11.0 billion in assets and over 100 branches, with the merger consideration totaling approximately $329.7 million and resulting in approximately $82.1 million of preliminary goodwill . #### Net Income Net income applicable to common shares for the second quarter of 2026 was $9.3 million, a decrease from $27.1 million in the first quarter of 2026 . On an adjusted (non-GAAP) basis, operating net income applicable to common shares was $37.5 million for the second quarter of 2026, compared to $28.2 million in the first quarter of 2026 . Total net income for the three months ended June 30, 2026, was $9,488,000 . #### Profitability Ratios Annualized return on average assets (ROA) was 0.37% for the second quarter of 2026, down from 1.39% in the first quarter of 2026 . Annualized return on average common equity (ROCE) was 3.53% for the second quarter of 2026, compared to 12.77% in the prior quarter . Annualized return on average tangible common equity (ROATCE) (non-GAAP) was 4.07% for the second quarter of 2026, decreasing from 13.87% in the first quarter of 2026 . On an adjusted basis (non-GAAP), ROA was 1.50%, ROCE was 14.27%, and ROATCE was 16.45% for the second quarter of 2026 . #### Balance Sheet Highlights (as of June 30, 2026) Total assets were $10,992,498,000 . Total shareholders’ equity was $1.2 billion . Tangible common equity to tangible assets (non-GAAP) was 9.21%, down from 9.93% at March 31, 2026 . Ending total gross loans were $8.0 billion, an increase of $2.6 billion from $5.4 billion at March 31, 2026, primarily due to the merger . Ending total deposits were $9.0 billion, increasing by $2.6 billion from $6.3 billion at March 31, 2026, mainly driven by the merger . The ending loan-to-deposit ratio was 89.2% at June 30, 2026, up from 85.35% at March 31, 2026 . Gross loans were $7,999,765,000, and net loans were $7,905,295,000 . Total deposits were $8,968,082,000, including $2,058,076,000 in non-interest bearing deposits and $6,910,006,000 in interest-bearing deposits . Goodwill was $118,345,000 and intangible assets were $80,754,000 . Accumulated Other Comprehensive Income (Loss) was - $58,445,000 . #### Net Interest Income and Margin Net interest income for the second quarter of 2026 was $93.0 million, an increase from $71.8 million in the first quarter of 2026, driven by a $31.5 million increase in interest income partially offset by a $10.3 million increase in interest expense, primarily from the LINKBANCORP acquisition . The net interest margin (non-GAAP) was 4.15% for the three months ended June 30, 2026, an increase from 4.09% in the first quarter of 2026 . The cost of total deposits, including non-interest bearing deposits, was 1.75% in the second quarter of 2026, up from 1.71% in the first quarter of 2026 . Accretion income on loans was $9.3 million in the second quarter of 2026, compared to $6.8 million in the prior quarter . Interest income was $136,987,000 and interest expense was $43,939,000 . #### Non-Interest Income and Expense Total non-interest income increased to $13.8 million in the second quarter of 2026, up from $12.9 million in the first quarter of 2026, attributed to favorable contributions from company-owned life insurance income, debit card-related revenue, and other non-interest income categories . Non-interest expense for the second quarter of 2026 was $93.5 million, significantly higher than $51.4 million in the first quarter of 2026, primarily due to the LINKBANCORP acquisition, which included conversion and integration costs, professional fees, contract termination costs, and employee-related expenses . Adjusted non-interest expense (non-GAAP) was $61.1 million for the second quarter of 2026, compared to $49.9 million in the first quarter of 2026 . Noninterest income was $13,849,000 and noninterest expense was $93,506,000 . #### Asset Quality and Capital Position The Company recorded a credit provision expense of $30.0 thousand on loans and $1.3 million on unfunded commitments in the second quarter of 2026 . The allowance for credit losses as of June 30, 2026, was $94.5 million, or 1.2% of total loans . Net loan charge-offs were $1.2 million in Q2 2026, compared to $81 thousand in Q1 2026 . Total delinquencies were $84.6 million in Q2 2026, down from $93.1 million in Q1 2026 . Nonperforming loans were $95.3 million in Q2 2026, up from $78.6 million in Q1 2026 . The Company remains well-capitalized, with an estimated Common Equity Tier 1 capital to risk-weighted assets ratio of 11.79%, a Total risk-based capital to risk-weighted assets ratio of 14.48%, and a leverage ratio of 11.08% as of June 30, 2026 . Total liquidity, including all available borrowing capacity with cash and cash equivalents, amounted to $6.1 billion at the end of the second quarter . The allowance coverage ratio was 1.18%, and nonperforming loans to total loans were 1.19% . #### Merger-Related Estimates (as of June 30, 2026) The accretable loan rate mark was $55.4 million, higher than the forecasted $35.7 million . The subordinated-debt mark was $0.5 million, compared to a forecasted - $3.5 million . Preliminary goodwill creation was $82.1 million, which was $23.5 million below the $105.6 million modeled . The annualized cost savings goal (pre-tax) was $31.0 million, with phase-in beginning in 4Q 2026 . Total merger costs (pre-tax) were $52.3 million, not projected to exceed the forecast . Tangible book value per common share (non-GAAP) was $49.29, higher than the $47.85 forecast . Tangible book value per common share dilution was 7.5%, lower than the 10.2% modeled . Tangible common equity / tangible assets (non-GAAP) was 9.2%, stronger than the 8.6% modeled . The leverage ratio (estimated) was 11.1%, stronger than the 9.7% modeled . The total capital ratio (estimated) was 14.5%, stronger than the 13.9% modeled . #### Outlook Burke & Herbert Financial Services Corp. expects loans to range between $8.15 billion and $8.30 billion, with deposits projected between $9.05 billion and $9.15 billion . Net interest income (non-FTE) is estimated to be between $372 million and $376 million, while core noninterest expense is anticipated to be $242 million to $245 million . Management also anticipates meeting with investors during 2026, with presentation materials to be made available on the investor relations section of the company’s website . ### Related Stocks - [BHRB.US](https://longbridge.com/en/quote/BHRB.US.md) ## Related News & Research - [Burke & Herbert Financial Services Corp. 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