Burke & Herbert Bank Continues Strong Performance in 2017
Alexandria, VA, March 23, 2018 – Burke & Herbert Bank is pleased to report strong results for 2017, highlighted by continued growth in new loan production, healthy gains in new checking account relationships, continued growth of our overall customer base, and a solid financial performance overall. We are proud of these results, especially given the highly competitive nature of the banking industry today.
Our brand of "Unexpectedly Different" banking has been key to the creation of value for our shareholders. Burke & Herbert Bank posted net income of $27.8 million in 2017, a 2.3% increase over the year prior, and earnings per share increased by 2.5% to $145.68. These results were achieved despite an increase of 83.5% in 2017 income tax expense. This phenomenon resulted from certain requirements of the Tax Cuts and Jobs Act that was signed into law in December 2017. The Bank achieved Net Income before Tax of $34.1 million, an increase of $3.5 million, or 11.4%, over the pre-tax results of operations for the year prior.
Annual dividends paid to shareholders totaled $75 per share, a return that extends the Bank's six-year trend of paying annual per-share dividends of at least $74. Shares of Burke & Herbert Bank benefited from market value appreciation in 2017. In the final trade of 2017, an all-time high value of $2,625 was attained. This represented an increase in value of nearly 31% as compared to the final trade involving the Bank's shares conducted in 2016.
Interest income for 2017 reached $107.2 million, an increase of $9.0 million, or 9.2%, from the previous year, fueled by the performance of our lending activities. Interest and fees on loans grew by nearly $9.8 million, or 14.6% over 2016. The investment portfolio, which totaled $973.5 million at year end, contributed $30.4 million in interest income, a modest 2.4% decline from 2016.
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.