Burke & Herbert Bank Reports 2019 Results
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Alexandria, VA – Burke & Herbert Bank reported net income after taxes for the twelve months ending December 31, 2019 of $17.0 million, resulting in basic earnings per share of $90.63. Net income declined from $34.4 million the prior year and earnings per share declined from $181.62 per share in 2018. Key factors contributing to the decline include a single credit loss, increased interest expense without offsetting gains in interest income, and incremental employment-related costs.
Total Bank assets were $2.9 billion as of December 31. The Bank’s loan portfolio, the single-largest component of earning assets, totaled $1.86 billion at year end, an increase of 1.7% from the prior year.
In 2019, the Board declared dividends totaling $80.00 per share, equaling the amount paid in 2018. Despite the year-over-year decline in net income, the Board believes the 2019 dividend was appropriate, given the Bank’s strong capital position and forecast of future earnings. At December 31, 2019, the Bank maintained a Tier 1 Leverage Ratio of 12.3% and a Tier 1 Capital Ratio 16.5%, both of which are significantly above the 5.0% and 8.0% ratios a commercial bank must maintain to be classified as Well Capitalized in accordance with regulatory requirements.
Established in 1852, Burke & Herbert Bank & Trust Company 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.