Burke & Herbert Bank Posts Strong First Quarter Results
2012 Off To A Solid Start
Alexandria, VA – Burke & Herbert Bank announced today that 2012 is off to a solid start, with net income for the first quarter reaching $8.8 million, up 3.1% from the same quarter one year ago. Earnings per share of $45.74 for the quarter are up from $44.36 in the first quarter of 2011.
“I am pleased that we continue to deliver solid financial results and returns for our shareholders,” stated E. Hunt Burke, the Bank’s Chairman and Chief Executive Officer. “Our earnings this quarter were driven by a notable decrease in interest expense, reflecting both the low-rate environment and the replacement of higher-cost borrowed funds with lower-cost core account deposits.” He added, “Despite the slowly-recovering economy, our deposit growth remains strong and we have been able to manage our net interest margin effectively to help ensure continued net income growth.”
The Bank also reduced by 25% the amount added to the provision for loan losses in the first quarter compared to the same quarter last year. This decrease, which contributed to the Bank’s strong net interest income performance, was made possible by the continued excellent credit quality of the Bank’s loan portfolio.
Burke & Herbert Bank generated record earnings for four consecutive years, posting net income of $35.6 million in 2011.
“In addition to continuing to realize solid financial results, we are making great progress in our work to enhance and modernize the Burke & Herbert Bank brand to help ensure our future success,” noted W. Scott McSween, the Bank’s President & Chief Operating Officer. “This quarter was a terrific one for us in that regard, highlighted by the rollout of Advanced Touchscreen ATMs at all of our branches and the introduction of the next generation of Burke & Herbert Bank Online Banking.” He added, “These investments are designed to ensure that Burke & Herbert Bank delivers the level of convenience and access required by today’s banking consumers, in combination with the personal service for which the Bank has been known for generations.”
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, D.C. 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 25 branches in Northern Virginia.
Trust products and services are not deposits, are not insured by the FDIC or any other government agency, are not guaranteed by the Bank and may lose value.