Recent Insider Transactions • Jun 08
Independent Director recently bought US$314k worth of stock On the 3rd of June, Julian Barnwell bought around 5k shares on-market at roughly US$62.76 per share. This transaction amounted to 1.2% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$315k. Insiders have collectively bought US$933k more in shares than they have sold in the last 12 months. Upcoming Dividend • May 11
Upcoming dividend of US$0.55 per share Eligible shareholders must have bought the stock before 15 May 2026. Payment date: 01 June 2026. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of American dividend payers (4.2%). Higher than average of industry peers (2.4%). New Risk • May 06
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 34% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. Announcement • May 04
Burke & Herbert Financial Services Corp., Annual General Meeting, Jun 18, 2026 Burke & Herbert Financial Services Corp., Annual General Meeting, Jun 18, 2026. Declared Dividend • Apr 27
First quarter dividend of US$0.55 announced Dividend of US$0.55 is the same as last year. Ex-date: 15th May 2026 Payment date: 1st June 2026 Dividend yield will be 3.4%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 1.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 35% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 26
First quarter 2026 earnings: Revenues and EPS in line with analyst expectations First quarter 2026 results: EPS: US$1.80. Revenue: US$84.7m (up 3.2% from 1Q 2025). Net income: US$27.1m (flat on 1Q 2025). Profit margin: 32% (in line with 1Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 8.6% growth forecast for the Banks industry in the US. Announcement • Apr 26
Burke & Herbert Financial Services Corp. Declares Cash Dividend, Payable on June 1, 2026 Burke & Herbert Financial Services Corp. at its meeting on April 23, 2026, the board of directors declared a $0.55 per share regular cash dividend to be paid on June 1, 2026, to shareholders of record as of the close of business on May 15, 2026. Reported Earnings • Mar 02
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: US$7.76 (up from US$2.83 in FY 2024). Revenue: US$338.5m (up 45% from FY 2024). Net income: US$116.4m (up 232% from FY 2024). Profit margin: 34% (up from 15% in FY 2024). The increase in margin was driven by higher revenue. Net interest margin (NIM): 4.14% (up from 3.10% in FY 2024). Cost-to-income ratio: 57.2% (down from 75.5% in FY 2024). Non-performing loans: 1.38% (up from 0.68% in FY 2024). Revenue exceeded analyst estimates by 8.2%. Earnings per share (EPS) also surpassed analyst estimates by 1.4%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 9.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Recent Insider Transactions Derivative • Feb 13
President & Director exercised options and sold US$303k worth of stock On the 10th of February, H. Maddy exercised 15.62k options at around US$43.33, then sold 12k of the shares acquired at an average of US$69.62 per share and kept the remainder. Since March 2025, Maddy's direct individual holding has increased from 60.60k shares to 65.59k. Company insiders have collectively bought US$2.3m more than they sold, via options and on-market transactions, in the last 12 months. Upcoming Dividend • Feb 09
Upcoming dividend of US$0.55 per share Eligible shareholders must have bought the stock before 13 February 2026. Payment date: 02 March 2026. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of American dividend payers (4.1%). Higher than average of industry peers (2.2%). Major Estimate Revision • Jan 30
Consensus revenue estimates increase by 19% The consensus outlook for revenues in fiscal year 2026 has improved. 2026 revenue forecast increased from US$384.7m to US$457.7m. EPS estimate increased from US$6.93 to US$7.04 per share. Net income forecast to grow 14% next year vs 16% growth forecast for Banks industry in the US. Consensus price target of US$73.67 unchanged from last update. Share price rose 2.3% to US$65.48 over the past week. Announcement • Jan 29
Burke & Herbert Financial Services Corp. Announces Retirement of President And Director H. Charles Maddy, III, Effective June 30, 2026 Burke & Herbert Financial Services Corp. announced that H. Charles Maddy, III notified the board of directors of his determination not to stand for re-election as a director at the Company's 2026 annual meeting of shareholders and his retirement as the President of the Company, effective as of June 30, 2026. Mr. Maddy’s retirement is not a result of any disagreement with the Company, management or the Board on any matter relating to the Company’s operations, policies or practices. Mr. Maddy’s extended notice provides the Company with sufficient time to ensure a smooth management transition and enables Mr. Maddy to assist with the closing and integration of the previously announced merger with LINKBANCORP Inc. Mr. Maddy will continue to serve as a director of Burke & Herbert Bank & Trust Company (the “Bank”), the wholly-owned subsidiary of the Company, and as Chair of the Burke & Herbert Bank Foundation. Declared Dividend • Jan 26
Fourth quarter dividend of US$0.55 announced Dividend of US$0.55 is the same as last year. Ex-date: 13th February 2026 Payment date: 2nd March 2026 Dividend yield will be 3.4%, which is higher than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (28% payout ratio) and is expected to be well covered in 3 years' time (26% forecast payout ratio). The dividend has increased by an average of 1.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 17% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 23
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: US$7.72 (up from US$2.83 in FY 2024). Revenue: US$340.5m (up 46% from FY 2024). Net income: US$116.4m (up 232% from FY 2024). Profit margin: 34% (up from 15% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 8.2%. Earnings per share (EPS) also surpassed analyst estimates by 1.4%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 9.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jan 23
Burke & Herbert Financial Services Corp. Declares Cash Dividend, Payable on March 2, 2026 Burke & Herbert Financial Services Corp. announced that at its meeting on January 22, 2026, the board of directors declared a $0.55 per share regular cash dividend to be paid on March 2, 2026, to shareholders of record as of the close of business on February 13, 2026. Upcoming Dividend • Nov 10
Upcoming dividend of US$0.55 per share Eligible shareholders must have bought the stock before 14 November 2025. Payment date: 01 December 2025. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of American dividend payers (4.6%). Higher than average of industry peers (2.5%). Declared Dividend • Oct 27
Third quarter dividend of US$0.55 announced Dividend of US$0.55 is the same as last year. Ex-date: 14th November 2025 Payment date: 1st December 2025 Dividend yield will be 3.6%, which is higher than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (26% payout ratio) and is expected to be well covered in 3 years' time (31% forecast payout ratio). The dividend has increased by an average of 1.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 3.6% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 24
Third quarter 2025 earnings: EPS exceeds analyst expectations Third quarter 2025 results: EPS: US$1.98 (up from US$1.83 in 3Q 2024). Revenue: US$81.4m (down 1.9% from 3Q 2024). Net income: US$29.7m (up 8.5% from 3Q 2024). Profit margin: 37% (up from 33% in 3Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.2%. Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has increased by 1% per year. Announcement • Oct 24
Burke & Herbert Financial Services Corp. Declares Cash Dividend, Payable on December 1, 2025 Burke & Herbert Financial Services Corp. at its meeting on October 23, 2025, the board of directors declared a $0.55 per share regular cash dividend to be paid on December 1, 2025, to shareholders of record as of the close of business on November 14, 2025. Upcoming Dividend • Aug 11
Upcoming dividend of US$0.55 per share Eligible shareholders must have bought the stock before 15 August 2025. Payment date: 02 September 2025. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of American dividend payers (4.6%). Higher than average of industry peers (2.6%). Declared Dividend • Jul 28
Second quarter dividend of US$0.55 announced Shareholders will receive a dividend of US$0.55. Ex-date: 15th August 2025 Payment date: 2nd September 2025 Dividend yield will be 3.5%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 3.5% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 25
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: US$1.98 (up from US$1.41 loss in 2Q 2024). Revenue: US$86.5m (up 93% from 2Q 2024). Net income: US$29.7m (up US$46.8m from 2Q 2024). Profit margin: 34% (up from net loss in 2Q 2024). Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) also surpassed analyst estimates by 8.2%. Revenue is forecast to grow 6.1% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Jul 25
Burke & Herbert Financial Services Corp. Declares Cash Dividend, Payable on September 2, 2025 Burke & Herbert Financial Services Corp. at its meeting on July 24, 2025, the board of directors declared a $0.55 per share regular cash dividend to be paid on September 2, 2025, to shareholders of record as of the close of business on August 15, 2025. Announcement • Jul 22
Burke & Herbert Financial Services Corp. Announces Executive Appointments Burke & Herbert Financial Services Corp. announced key hires that will enhance the Company's strong commercial banking, treasury management, and deposit growth teams. The new appointments augment the Company's ability to service its commercial client base while adding capacity for additional growth. Two of the hires will join the Company's newest commercial office in Bethesda, Maryland, reporting to Regional President Michael Solomon. Daniel Kroll joins as Senior Vice President and Commercial Banking Executive – Commercial Real Estate and Amar Grover joins as Vice President and Portfolio Manager Team Lead. Kroll has over twelve years of experience in the banking industry, most recently with Sandy Spring Bank and Eagle Bank. He has a bachelor's degree from Arizona State University and a master's degree from American University. Grover has 15 years of diverse experience, most recently as a Portfolio Manager Team Lead with Sandy Spring Bank and previously in credit and risk management roles with BayVanguard Bank, FNB, and BB&T. Grover graduated from Virginia Tech University and received his MBA from West Virginia University. In addition, Clark A. Snow joins the Company's Treasury Management Team as Senior Vice President, reporting to Executive Vice President Alexis Santin. Snow takes on the role of Treasury Management Consultant and Sales Team Lead. He has nearly thirty years of treasury experience, most recently with Sandy Spring Bank and prior with Mercantile Bank. Snow is a Board Member and former Board Chair of the Weinberg Center for the Arts in Frederick, Maryland. He received his bachelor's degree from Mount Saint Mary's University. Recent Insider Transactions • Jun 04
Independent Director recently bought US$113k worth of stock On the 2nd of June, Mark Anderson bought around 2k shares on-market at roughly US$56.40 per share. This transaction amounted to 8.4% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$264k. Insiders have collectively bought US$4.3m more in shares than they have sold in the last 12 months. Recent Insider Transactions • May 21
Independent Director recently bought US$132k worth of stock On the 19th of May, Mark Anderson bought around 2k shares on-market at roughly US$57.25 per share. This transaction amounted to 11% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$374k. Insiders have collectively bought US$4.7m more in shares than they have sold in the last 12 months. Recent Insider Transactions • May 01
Independent Vice Chairman of the Board recently bought US$212k worth of stock On the 29th of April, S. Hinson bought around 4k shares on-market at roughly US$53.00 per share. This transaction amounted to 7.9% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$374k. This was S.'s only on-market trade for the last 12 months. Price Target Changed • Apr 28
Price target decreased by 10% to US$71.00 Down from US$79.00, the current price target is an average from 2 analysts. New target price is 33% above last closing price of US$53.40. Stock is down 1.5% over the past year. The company is forecast to post earnings per share of US$7.48 for next year compared to US$2.83 last year. Reported Earnings • Apr 27
First quarter 2025 earnings: EPS exceeds analyst expectations First quarter 2025 results: EPS: US$1.80 (up from US$0.70 in 1Q 2024). Revenue: US$82.5m (up 212% from 1Q 2024). Net income: US$27.0m (up 418% from 1Q 2024). Profit margin: 33% (up from 20% in 1Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.7%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Apr 22
Burke & Herbert Financial Services Corp. Appoints Patrick “Kip” Huffman as Senior Vice President and Chief Accounting Officer On April 21, 2025, Burke & Herbert Financial Services Corp. announced the appointment of Patrick “Kip” Huffman, CPA, as Senior Vice President and Chief Accounting Officer. Mr. Huffman, age 40, brings nearly 20 years of accounting and finance experience to his role. He will be responsible for overseeing all aspects of the Company’s accounting function including policy, financial and regulatory reporting, and risk control execution. For the last two years, Mr. Huffman served as the Senior Vice President and Chief Accounting Officer of ACNB Bank. Mr. Huffman served as Senior Vice President and Chief Accounting Officer of Freedom Bank of Virginia from March 2021 to April, 2023, and served as Senior Vice President and Controller from January, 2019 to March 2021. Mr. Huffman is a licensed Certified Public Accountant and has over 10 years of accounting experience working with numerous banking entities. New Risk • Mar 18
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 48% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (102% increase in shares outstanding). Minor Risk Large one-off items impacting financial results. Reported Earnings • Mar 18
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: US$2.83. Revenue: US$233.0m (up 114% from FY 2023). Net income: US$35.0m (up 54% from FY 2023). Profit margin: 15% (down from 21% in FY 2023). Net interest margin (NIM): 3.08% (up from 2.85% in FY 2023). Cost-to-income ratio: 75.5% (down from 77.4% in FY 2023). Non-performing loans: 0.68% (up from 0.18% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Banks industry in the US. Announcement • Mar 06
Burke & Herbert Financial Services Corp. Appoints Robert V. "Cedar" Hintelmann, Jr., as Executive Vice President and Chief Credit Officer, Effective March 17, 2025 Burke & Herbert Financial Services Corp. announced the appointment of Robert V. "Cedar" Hintelmann, Jr., as Executive Vice President and Chief Credit Officer, effective March 17, 2025. Hintelmann brings more than 25 years of credit experience in the financial services industry to his role. He most recently served as Executive Vice President and Deputy Credit Officer for a super-regional bank based in the Mid-Atlantic region. He will be responsible for overseeing credit policy and managing credit risk for the Company's loan portfolio. Recent Insider Transactions • Feb 24
Independent Director recently bought US$125k worth of stock On the 21st of February, Julian Barnwell bought around 2k shares on-market at roughly US$62.50 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$346k. Insiders have collectively bought US$3.6m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Feb 12
Insider recently bought US$195k worth of stock On the 10th of February, Gary Hinkle bought around 3k shares on-market at roughly US$64.97 per share. This transaction amounted to 1.0% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$356k. Insiders have collectively bought US$3.3m more in shares than they have sold in the last 12 months. Declared Dividend • Jan 30
Fourth quarter dividend of US$0.55 announced Shareholders will receive a dividend of US$0.55. Ex-date: 14th February 2025 Payment date: 3rd March 2025 Dividend yield will be 3.4%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (77% payout ratio) and is expected to be covered in 3 years' time (31% forecast payout ratio). The dividend has increased over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 100% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 27
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: US$2.82. Revenue: US$237.7m (up 118% from FY 2023). Net income: US$35.0m (up 54% from FY 2023). Profit margin: 15% (down from 21% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.6%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Banks industry in the US. Recent Insider Transactions Derivative • Jan 24
Chair & CEO exercised options and sold US$126k worth of stock On the 21st of January, David Boyle exercised options to acquire 2k shares at no cost and sold these for an average price of US$62.18 per share. This trade did not impact their existing holding. For the year to December 2022, David's total compensation was 52% salary and 48% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2024, David's direct individual holding has increased from 16.91k shares to 28.85k. Company insiders have collectively bought US$2.8m more than they sold, via options and on-market transactions, in the last 12 months. Price Target Changed • Dec 19
Price target increased by 8.8% to US$80.50 Up from US$74.00, the current price target is an average from 2 analysts. New target price is 25% above last closing price of US$64.30. Stock is up 3.5% over the past year. The company is forecast to post earnings per share of US$2.35 for next year compared to US$3.05 last year. Recent Insider Transactions • Dec 16
Independent Director recently bought US$206k worth of stock On the 13th of December, Julian Barnwell bought around 3k shares on-market at roughly US$68.75 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$356k. Insiders have collectively bought US$3.1m more in shares than they have sold in the last 12 months. Announcement • Dec 04
Burke & Herbert Financial Services Corp. and Burke & Herbert Bank & Trust Company Announces Executive Changes Julie R. Markwood, Chief Accounting Officer for Burke & Herbert Bank & Trust Company (the “Bank”), a wholly owned subsidiary of Burke & Herbert Financial Services Corp. (the “Company”), and the Company is taking a temporary leave of absence due to medical reasons. In connection with Ms. Markwood’s leave of absence, effective December 3, 2024, Kirtan Parikh, currently Director of Strategy for the Bank and Company, assumed the additional role of Interim Chief Accounting Officer of the Bank and the Company. Mr. Parikh previously served as Chief Accounting Officer of the Bank and the Company prior to the merger of the Bank and the Company with Summit Community Bank Inc., and Summit Financial Group Inc., respectively, which occurred on May 3, 2024. Recent Insider Transactions • Nov 21
Insider recently bought US$356k worth of stock On the 18th of November, Gary Hinkle bought around 5k shares on-market at roughly US$68.54 per share. This transaction amounted to 1.8% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$3.1m more in shares than they have sold in the last 12 months. New Risk • Nov 17
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 31% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (101% increase in shares outstanding). Minor Risks Dividend is not well covered by earnings (109% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (11% net profit margin). Recent Insider Transactions • Nov 08
Director recently sold US$128k worth of stock On the 31st of October, James Burke sold around 2k shares on-market at roughly US$64.22 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought US$2.8m more than they sold in the last 12 months. Recent Insider Transactions • Nov 06
Director recently sold US$128k worth of stock On the 31st of October, James Burke sold around 2k shares on-market at roughly US$64.22 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought US$2.8m more than they sold in the last 12 months. Declared Dividend • Oct 30
Third quarter dividend increased to US$0.55 Dividend of US$0.55 is 3.8% higher than last year. Ex-date: 15th November 2024 Payment date: 2nd December 2024 Dividend yield will be 3.3%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (135% earnings payout ratio). However, the dividend is expected to be well covered in 3 years' time (29% forecast payout ratio). The dividend has increased by an average of 1.4% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 50% to bring the payout ratio under control. EPS is expected to grow by 188% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Oct 25
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: US$1.84 (up from US$0.55 in 3Q 2023). Revenue: US$83.6m (up 218% from 3Q 2023). Net income: US$27.4m (up US$23.3m from 3Q 2023). Profit margin: 33% (up from 15% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) exceeded analyst estimates by 26%. Revenue is forecast to grow 46% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Oct 25
Burke & Herbert Financial Services Corp. Declares Cash Dividend, Payable on December 2, 2024 Burke & Herbert Financial Services Corp. announced that at its meeting on October 24, 2024, the board of directors declared a $0.55 per share regular cash dividend to be paid on December 2, 2024, to shareholders of record as of the close of business on November 15, 2024, representing a 3.8% increase from the prior quarter dividend. Recent Insider Transactions • Aug 27
Insider recently bought US$340k worth of stock On the 23rd of August, Gary Hinkle bought around 5k shares on-market at roughly US$68.09 per share. This transaction amounted to 1.8% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$3.7m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Aug 02
Director recently sold US$134k worth of stock On the 31st of July, James Burke sold around 2k shares on-market at roughly US$66.81 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought US$3.4m more than they sold in the last 12 months. Declared Dividend • Jul 29
Second quarter dividend of US$0.53 announced Dividend of US$0.53 is the same as last year. Ex-date: 15th August 2024 Payment date: 3rd September 2024 Dividend yield will be 3.1%, which is about the same as the industry average. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is expected to be well covered in 3 years' time (31% forecast payout ratio). The dividend has increased by an average of 1.4% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Reported Earnings • Jul 28
Second quarter 2024 earnings released: US$1.41 loss per share (vs US$0.81 profit in 2Q 2023) Second quarter 2024 results: US$1.41 loss per share (down from US$0.81 profit in 2Q 2023). Revenue: US$45.4m (up 65% from 2Q 2023). Net loss: US$17.1m (down 384% from profit in 2Q 2023). Revenue is forecast to grow 36% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Jul 26
Burke & Herbert Financial Services Corp. Declares Common Stock Dividend, Payable on September 3, 2024 Burke & Herbert Financial Services Corp. at its meeting on July 25, 2024, the board of directors declared a $0.53 per share regular cash dividend to be paid on September 3, 2024, to shareholders of record as of the close of business on August 15, 2024. Valuation Update With 7 Day Price Move • Jul 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$55.17, the stock trades at a trailing P/E ratio of 40.2x. Average trailing P/E is 10x in the Banks industry in the US. Total returns to shareholders of 21% over the past three years. Recent Insider Transactions Derivative • Jun 19
Chair & CEO exercised options and sold US$243k worth of stock On the 17th of June, David Boyle exercised options to acquire 5k shares at no cost and sold these for an average price of US$47.46 per share. This trade did not impact their existing holding. For the year to December 2022, David's total compensation was 52% salary and 48% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2023, David's direct individual holding has increased from 14.51k shares to 17.97k. Company insiders have collectively bought US$3.0m more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • May 16
Insider recently bought US$168k worth of stock On the 14th of May, Gary Hinkle bought around 3k shares on-market at roughly US$49.53 per share. This transaction amounted to 1.3% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$2.4m more in shares than they have sold in the last 12 months. New Risk • May 13
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 100% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (100% increase in shares outstanding). Minor Risk Profit margins are more than 30% lower than last year (19% net profit margin). Recent Insider Transactions • May 12
Insider recently bought US$80k worth of stock On the 10th of May, Gary Hinkle bought around 2k shares on-market at roughly US$49.60 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$156k. Insiders have collectively bought US$2.2m more in shares than they have sold in the last 12 months. Announcement • May 10
Burke & Herbert Financial Corporation Announces Board and Committee Appointments Burke & Herbert Financial Corporation announced on May 3, 2024, the appointment of Oscar M. Bean, James P. Geary, II, Georgette R. George, Gary L. Hinkle, Jason A. Kitzmiller, H. Charles Maddy, III, Charles S. Piccirillo, and Jill S. Upson as members of the Company’s Board of Directors. Effective as of May 3, 2024, the following directors were appointed to the Audit Committee of the Board: Georgette R. George; Gary L. Hinkle; Jason A. Kitzmiller; and Charles S. Piccirillo. Effective as of May 3, 2024, the following directors were appointed to the Compensation Committee of the Board: Oscar M. Bean; and James P. Geary II. Effective as of May 3, 2024, the following directors were appointed to the Nominating and Governance Committee of the Board: James P. Geary II; and Charles S. Piccirillo. Effective as of May 3, 2024, the following directors were appointed to the Enterprise Risk Management Committee of the Board: Oscar M. Bean; Jill S. Upson; Jason A. Kitzmiller; and Gary L. Hinkle. Declared Dividend • Apr 29
First quarter dividend of US$0.53 announced Dividend of US$0.53 is the same as last year. Ex-date: 14th May 2024 Payment date: 3rd June 2024 Dividend yield will be 3.9%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 1.4% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to decline by 14% to shift the payout ratio to a potentially unsustainable range, which is more than the 9.7% EPS decline seen over the last 5 years. Announcement • Apr 27
Burke & Herbert Financial Services Corp. Declares Regular Quarterly Cash Dividend, Payable on June 3, 2024 On April 25, 2024, Burke & Herbert Financial Services Corp. announced its Board of Directors declared a regular quarterly cash dividend on the Company's common stock of $0.53 per share, payable on June 3, 2024, to shareholders of record as of the close of business on May 15, 2024. Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: US$0.70 (vs US$1.01 in 1Q 2023) First quarter 2024 results: EPS: US$0.70 (down from US$1.01 in 1Q 2023). Revenue: US$27.1m (down 2.8% from 1Q 2023). Net income: US$5.21m (down 31% from 1Q 2023). Profit margin: 19% (down from 27% in 1Q 2023). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Apr 22
Burke & Herbert Financial Services Corp., Annual General Meeting, Jul 15, 2024 Burke & Herbert Financial Services Corp., Annual General Meeting, Jul 15, 2024. Reported Earnings • Mar 24
Full year 2023 earnings released: EPS: US$3.06 (vs US$5.93 in FY 2022) Full year 2023 results: EPS: US$3.06 (down from US$5.93 in FY 2022). Revenue: US$108.9m (down 16% from FY 2022). Net income: US$22.7m (down 48% from FY 2022). Profit margin: 21% (down from 34% in FY 2022). Net interest margin (NIM): 2.85% (down from 3.19% in FY 2022). Cost-to-income ratio: 77.4% (up from 62.9% in FY 2022). Non-performing loans: 0.18% (down from 0.29% in FY 2022). Over the last 3 years on average, earnings per share has increased by 3% per year and the company’s share price has also increased by 3% per year. Recent Insider Transactions • Mar 17
Director recently bought US$156k worth of stock On the 15th of March, Julian Barnwell bought around 3k shares on-market at roughly US$52.00 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$327k. Insiders have collectively bought US$2.1m more in shares than they have sold in the last 12 months. Recent Insider Transactions Derivative • Feb 28
Chair, President & CEO exercised options and sold US$59k worth of stock On the 25th of February, David Boyle exercised options to acquire 1k shares at no cost and sold these for an average price of US$54.70 per share. This trade did not impact their existing holding. For the year to December 2022, David's total compensation was 51% salary and 49% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2023, David's direct individual holding has increased from 12.51k shares to 14.51k. Company insiders have collectively bought US$1.8m more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • Feb 22
Director recently bought US$133k worth of stock On the 21st of February, Mark Anderson bought around 2k shares on-market at roughly US$55.35 per share. This transaction amounted to 27% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$327k. Insiders have collectively bought US$1.9m more in shares than they have sold in the last 12 months. Upcoming Dividend • Feb 07
Upcoming dividend of US$0.53 per share at 3.8% yield Eligible shareholders must have bought the stock before 14 February 2024. Payment date: 01 March 2024. Trailing yield: 3.8%. Lower than top quartile of American dividend payers (4.8%). Higher than average of industry peers (3.3%). Recent Insider Transactions • Feb 01
Director recently bought US$68k worth of stock On the 30th of January, Jose Riojas bought around 1k shares on-market at roughly US$60.00 per share. This transaction amounted to 7.2% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$164k. Insiders have collectively bought US$1.3m more in shares than they have sold in the last 12 months. Declared Dividend • Jan 29
Fourth quarter dividend of US$0.53 announced Dividend of US$0.53 is the same as last year. Ex-date: 14th February 2024 Payment date: 1st March 2024 Dividend yield will be 3.5%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 1.1% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to decline by 22% to shift the payout ratio to a potentially unsustainable range, which is more than the 7.6% EPS decline seen over the last 5 years. New Risk • Jan 26
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 20% Last year net profit margin: 34% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. This is currently the only risk that has been identified for the company. Reported Earnings • Jan 26
Full year 2023 earnings released: EPS: US$3.06 (vs US$5.93 in FY 2022) Full year 2023 results: EPS: US$3.06 (down from US$5.93 in FY 2022). Revenue: US$111.5m (down 14% from FY 2022). Net income: US$22.7m (down 48% from FY 2022). Profit margin: 20% (down from 34% in FY 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 10% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 26
Burke & Herbert Financial Services Corp. Declares Regular Cash Dividend, Payable on March 1, 2024 Burke & Herbert Financial Services Corp. at its meeting on January 25, 2024, the board of directors declared a $0.53 per share regular cash dividend to be paid on March 1, 2024, to shareholders of record as of the close of business on February 15, 2024. Recent Insider Transactions • Dec 10
Director recently bought US$54k worth of stock On the 8th of December, Shawn McLaughlin bought around 1k shares on-market at roughly US$54.01 per share. This transaction amounted to 2.1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$248k. Insiders have collectively bought US$974k more in shares than they have sold in the last 12 months. Upcoming Dividend • Nov 07
Upcoming dividend of US$0.53 per share at 4.7% yield Eligible shareholders must have bought the stock before 14 November 2023. Payment date: 01 December 2023. Payout ratio is on the higher end at 76%, however this is supported by cash flows. Trailing yield: 4.7%. Lower than top quartile of American dividend payers (5.1%). Higher than average of industry peers (3.8%). Announcement • Oct 28
Burke & Herbert Financial Services Corp. Declares Regular Quarterly Cash Dividend on Common Stock, Payable on December 1, 2023 On October 27, 2023, Burke & Herbert Financial Services Corp. announced that the board of directors at its meeting held on October 26, 2023, declared a regular quarterly cash dividend on the Company's common stock of $0.53 per share, payable on December 1, 2023, to shareholders of record as of the close of business on November 15, 2023. Reported Earnings • Oct 28
Third quarter 2023 earnings released: EPS: US$0.55 (vs US$1.50 in 3Q 2022) Third quarter 2023 results: EPS: US$0.55 (down from US$1.50 in 3Q 2022). Revenue: US$26.9m (down 19% from 3Q 2022). Net income: US$4.06m (down 64% from 3Q 2022). Profit margin: 15% (down from 33% in 3Q 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Aug 31
Director recently bought US$149k worth of stock On the 29th of August, Julian Barnwell bought around 3k shares on-market at roughly US$49.53 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$169k more in shares than they have sold in the last 12 months. Announcement • Aug 26
Burke & Herbert Financial Services Corp. (NasdaqCM:BHRB) entered into a definitive agreement to acquire Summit Financial Group, Inc. (NasdaqGS:SMMF) from shareholders in a merger of equals transaction for approximately $380 million. Burke & Herbert Financial Services Corp. (NasdaqCM:BHRB) entered into a definitive agreement to acquire Summit Financial Group, Inc. (NasdaqGS:SMMF) from shareholders in a merger of equals transaction for approximately $380 million on August 24, 2023. Under the terms of the definitive agreement, holders of Summit common stock will have the right to receive 0.5043 shares of Burke & Herbert common stock. Existing Burke & Herbert shareholders will own approximately 50% of the outstanding shares of the combined company and Summit shareholders are expected to own approximately 50%. The combined company's board of directors will have 16 directors, consisting of 8 directors from Burke & Herbert and 8 directors from Summit with David P. Boyle serving as Chair. Summit's current Chair, Oscar M. Bean, will join as a Vice Chair of the combined board of directors.
The transaction is expected to close in the first quarter of 2024, subject to satisfaction of customary closing conditions, including regulatory approvals and shareholder approval from Burke & Herbert and Summit shareholders. Summit directors and executive officers have entered into agreements with Burke & Herbert pursuant to which they have committed to vote their shares of Summit common stock in favor of the merger. Burke & Herbert directors and executive officers have entered into agreements with Summit pursuant to which they have committed to vote their shares of Burke & Herbert common stock in favor of the merger.
Keefe, Bruyette & Woods, A Stifel Company, acted as financial advisor to Burke & Herbert in the transaction and delivered a fairness opinion to the Board of Directors. Gregory Parisi of Troutman Pepper Hamilton Sanders LLP served as legal counsel to Burke & Herbert. D.A. Davidson & Co. acted as financial advisor to Summit and delivered a fairness opinion to the Board of Directors of Summit. Sandra Murphy of Bowles Rice LLP served as legal counsel to Summit. Announcement • Aug 25
Burke & Herbert Financial Services Corp. Announces Executive Changes Burke & Herbert Financial Services Corp. announced that combined company's board of directors will have 16 directors, consisting of 8 directors from Burke & Herbert and 8 directors from Summit with David P. Boyle serving as Chair. Summit's current Chair, Oscar M. Bean, will join as a Vice Chair of the combined board of directors. Charlie Maddy, Summit's current President and Chief Executive Officer, will serve as President and as a director of the combined company; Rob Tissue, Summit's current Chief Financial Officer, will serve as Executive Vice President of Financial Strategy of the combined company; Joe Hager, Summit's current Chief Risk Officer, will serve as Chief Operating Officer of the combined company; Danyl Freeman, Summit's current Chief Human Resources Officer, will continue to serve in that role for the combined company; Jennifer Schmidt, Burke & Herbert's current Chief Compliance Officer, will serve as Chief Risk Officer for the combined company; Brad Ritchie, Summit's current Executive Vice President and President of Summit Community Bank, will serve as Chief Lending Officer of the combined company. Upcoming Dividend • Aug 07
Upcoming dividend of US$0.53 per share at 4.1% yield Eligible shareholders must have bought the stock before 14 August 2023. Payment date: 01 September 2023. Payout ratio is a comfortable 52% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (3.4%). Announcement • Jul 29
Burke & Herbert Financial Services Corp. Declares Regular Cash Dividend, Payable on September 1, 2023 At its meeting on July 27, 2023, the board of directors of Burke & Herbert Financial Services Corp. declared a $0.53 per share regular cash dividend to be paid on September 1, 2023, to shareholders of record as of the close of business August 15, 2023. Reported Earnings • Jul 28
Second quarter 2023 earnings released: EPS: US$0.81 (vs US$1.40 in 2Q 2022) Second quarter 2023 results: EPS: US$0.81 (down from US$1.40 in 2Q 2022). Revenue: US$28.2m (down 14% from 2Q 2022). Net income: US$6.03m (down 42% from 2Q 2022). Profit margin: 21% (down from 32% in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Jul 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be US$80.53, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 32%. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$66.58, the stock trades at a trailing P/E ratio of 11.7x. Average trailing P/E is 8x in the Banks industry in the US. Total returns to shareholders of 72% over the past three years. Valuation Update With 7 Day Price Move • May 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$85.00, the stock trades at a trailing P/E ratio of 14.9x. Average trailing P/E is 8x in the Banks industry in the US. Total returns to shareholders of 113% over the past three years. Upcoming Dividend • May 06
Upcoming dividend of US$0.53 per share at 2.7% yield Eligible shareholders must have bought the stock before 12 May 2023. Payment date: 01 June 2023. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of American dividend payers (5.2%). Lower than average of industry peers (4.0%).