Burke & Herbert Bank Posts Record Earnings for Third Consecutive Year
Alexandria, VA – At its recent annual shareholders’ meeting, Burke & Herbert Bank announced net income of $34.2 million for 2010. This strong performance represents record earnings for the Bank for the third consecutive year. Earnings per share increased to $178.05, up from $170.17 in 2009, and dividends paid per share, at $72, also increased from the previous year. As with net income, both earnings per share and dividends paid per share grew during each of the last three years.
The Bank’s earnings gain in 2010 was driven by strong growth in interest income, coupled with a decrease in interest expense. Interest income increased to $113.6 million, up 6.2%, while interest expense decreased by 9.2% to $20.4 million. Overall, the Bank’s interest income as a percent of average assets rose to 5.42% in 2010, outperforming more than 95% of peer group banks.
“I am pleased with the Bank’s earnings and continued growth in 2010, particularly given the challenging economic climate,” said E. Hunt Burke, Chairman & Chief Executive Officer. “Key to our success was our continued focus on managing credit risk while working to meet the borrowing needs of businesses and consumers throughout northern Virginia.”
The Bank’s loan portfolio grew to $1.3 billion in 2010. Loan quality remains high, with delinquency levels significantly below peers. Net credit losses for the year were only 0.39% of average loans; the average for the Bank’s peer group is more than three times higher.
At the same time, the Bank achieved significant deposit growth, up 16% to $1.82 billion. Deposits have increased every year since 2006, with gains this year in all major deposit categories – demand deposits, savings accounts, and time deposits. The deposit growth trend is indicative of the continued confidence and loyalty of Burke & Herbert Bank customers.
“I am appreciative of the entire Burke & Herbert Bank team whose hard work and dedication are responsible for the achievements of 2010,” commented W. Scott McSween, President & Chief Operating Officer. “In addition to posting stellar earnings for the year, we engaged in a number of new initiatives in 2010 with the objective of providing enhanced products and services consistent with the needs of consumers and businesses today. I am excited about the added value we will be able to offer – both to customers and shareholders – in 2011 and beyond as a result of this work.”
Burke & Herbert Bank was established in 1852, and is the oldest bank in the Commonwealth of Virginia and the oldest continuously operating bank in the Washington, DC area. The Bank offers a full range of personal and business banking products along with investment accounts and trust services. Burke & Herbert Bank is headquartered in Alexandria and operates 24 branches in northern Virginia. To learn more, please visit us at burkeandherbertbank.com.