Burke & Herbert Bank Reports Solid Results for 2018
Alexandria, VA, March 29, 2019 – We are pleased to report that Burke & Herbert Bank realized solid financial results in 2018. We are proud of the Bank's performance, which was accomplished in a highly competitive and increasingly crowded banking environment.
Overall, the Bank's net income grew by $6.6 million, to $34.4 million - better than the previous year by 23.7%. On a pre-tax basis, earnings over the previous year increased by 7.1% and earnings per share increased nearly 25% compared to the previous year, to $181.62. The 2018 annual dividend of $80 per share was the largest amount ever paid by the Bank, exceeding the 2017 annual dividend by $5.
Total interest income in 2018 reached $111.2 million. The improvement was driven by the increase of $5.7 million (7.4%) in interest and fees on loans as compared to 2017, and totaled $82.6 million in 2018. Interest income from the Bank's loan portfolio remains the key driver of revenue for the Bank.
The Bank's non-interest income also grew in 2018. For the first time, our wealth services business, comprised of Wealth Management and Trust Services, earned more than $1.0 million in income for each of four consecutive quarters, contributing $4.3 million in revenue for the year - an increase of 6.8% over 2017. Assets under management for the combined wealth services business stood at $640.4 million at year end.
Total Bank assets stood at just over $3.0 billion as of December 31. The Bank’s loan portfolio, the single-largest component of earning assets, totaled $1.8 billion at year end, virtually unchanged from the prior year.
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.