Burke & Herbert Bank Reports Third-Quarter Earnings
Net income rises, loan portfolio grows
Alexandria, VA, November 22 – Burke & Herbert Bank's net income for the third quarter of 2016 totaled $7.7 million, a 4.1% increase over the previous quarter, and 8.3% greater than the same quarter one year ago. For the first nine months of 2016, net income was $22.8 million, an increase of 2.7% compared to the same period last year.
Net interest income for the third quarter was $23.0 million, an increase of 1.9% over the second quarter, and 2.4% greater than the third quarter last year. Interest income through September 30 totaled $67.5 million, on par with the result for the same period one year ago (-0.2%). As is the case throughout the industry, net interest income continues to be dampened by the prevailing low interest rate environment.
The Bank's loan portfolio continues to grow at a healthy pace. Net loans increased by nearly $80 million in the third quarter alone, an improvement of 5.2% over the prior quarter. New loan production in the third quarter was a robust $164.3 million – the strongest production quarter in recent history. As of September 30, the total net loan porfolio stood at $1.60 billion – an all-time high, and greater than at the same point one year ago by $196.8 million, or 14.1%. At the same time, the quality of the loan portfolio remains stellar, as evidenced by the loan delinquency rate of 0.85% at the end of the quarter.
For complete details, download a copy of the Bank's Third Quarter Earnings Report.
Burke & Herbert Bank, established in 1852, is the oldest bank in the Commonwealth of Virginia and the oldest continuously operating bank in the Washington, D.C., area. The Bank offers a full range of personal and business banking products and services designed to meet customers' banking, borrowing, and investing needs. Burke & Herbert Bank is headquartered in Alexandria and operates 25 branches in Northern Virginia.