Burke & Herbert Financial Services Corp. (BHRB)

Price$70.44Cached quoteAs of 2026-09-17 23:20 UTC

AI: Fair-priced

Price checkThe price looks reasonable, balancing strong adjusted profits against merger and property-loan risks.

At the observed market value, the shares cost about 9.6 times a conservative annualized adjusted profit estimate: second-quarter adjusted common profit divided by the full quarter-end share count, rather than management’s lower weighted share count. They also trade near 1.21 times book value and 1.45 times tangible book value, meaning assets minus liabilities and merger-created intangibles. A roughly 3.1% dividend yield helps, but the premium to tangible capital and untested LINK integration balance the cheap-looking earnings figure.

Big pictureProfits improved sharply, but merger costs and weak recent cash conversion blur their durability.

Net income rose from $35.7 million in 2024 to $117.3 million in 2025, helped by a full year with Summit. Second-quarter 2026 common profit was only $9.3 million after $28.2 million of after-tax LINK merger costs, versus $37.5 million after management’s adjustments. During 2025, operating cash less capital spending was $96.2 million, covering dividends 2.8 times. In 2026’s first half, that cash measure fell to $22.8 million, barely above $19.8 million of dividends. Bank cash flows fluctuate with loans and deposits, limiting this measure’s usefulness.

Business strengthCapital and lending income are healthy, while heavy property exposure limits the safety margin.

The bank’s core capital ratio was 11.79%, comfortably above the 6.5% well-capitalized threshold, with $6.1 billion of reported liquidity. Its lending spread after funding costs was 4.15%, and annualized net loan losses were only 0.02% of average loans. However, nonperforming loans reached $95.3 million, nearly matching the $94.5 million loss allowance. Property-related lending, including owner-occupied and construction loans, formed 68.8% of gross loans; office properties alone secured $707.9 million. Falling rents or occupancy could therefore weaken both earnings and capital.

What could change the storySuccessful cost savings could unlock value, while rising troubled loans would erase the discount.

LINK added scale but increased outstanding shares from 15.05 million in March to 20.17 million in June, a 34% increase. Tangible book value per share consequently fell from $51.83 to $49.29 despite higher total equity. The bull case strengthens if adjusted common profit remains near $37 million quarterly, merger expenses disappear, and tangible book value rebuilds above its pre-merger level. The bear case strengthens if nonperforming loans keep rising from December’s $74.2 million or the lending spread drops as purchase-accounting income, worth 0.34 percentage points last quarter, fades.

AI: News

LINK Merger CompletedThe LINK merger greatly expanded the bank, but issued many new shares and added integration risk.

Burke & Herbert completed the LINKBANCORP merger on May 1, 2026. It issued about 5.08 million shares and valued the transaction at $329.7 million, creating $82.1 million of preliminary goodwill. The combined bank had roughly $11 billion of assets and more than 100 branches across six states. The shares closed 2.5% lower in the next trading session, although timing alone does not establish that the merger announcement caused the decline. Future value depends on cost savings exceeding dilution and integration costs.

Merger-Heavy QuarterAdjusted profit stayed strong despite merger charges, while lending income and the dividend held up.

On July 23, Burke & Herbert reported second-quarter common profit of $9.3 million, or $0.50 per diluted share, after substantial LINK integration expenses. Excluding identified merger items, management reported $37.5 million and $2.03 per diluted share. Net interest income increased to $93.0 million from $71.8 million in the first quarter, while the quarterly dividend remained $0.55. The shares slipped 0.4% the following session, a muted move that does not reliably identify the market’s interpretation of the results.

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Revenue

2021

2022

2023

2024

2025

Net income

2021

2022

2023

2024

2025

Free cash flow

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021
Revenue	$342.0M	$262.0M	$111.7M	$120.8M	$113.9M
Operating expenses	$195.6M	$197.8M	$86.4M	$75.9M	$74.4M
Net income	$117.3M	$35.7M	$22.7M	$44.0M	$36.2M
Net profit margin	34.30%	13.63%	20.31%	36.44%	31.76%
Basic EPSper basic share	$7.76	$2.83	$3.05	$5.93	$4.87
Diluted EPSper diluted share	$7.72	$2.82	$3.02	$5.89	$4.87

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

6.04%of listed shares

BlackRock, Inc.1.22M shares · Jun 30, 2026

View holders

Top 20 reported holders of BHRB
Holder	% owned
BlackRock, Inc.	6.04%1.22M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.72%750.13K shares
STATE STREET CORP	2.76%557.55K shares
AMERICAN CENTURY COMPANIES INC	2.43%489.21K shares
GEODE CAPITAL MANAGEMENT, LLC	2.29%462.14K shares
ENDEAVOUR CAPITAL ADVISORS INC	2.28%459.18K shares
DIMENSIONAL FUND ADVISORS LP	2.24%452.26K shares
Barnwell Julian Forrest Jr.	≈2.05%412.96K shares
ALLIANCEBERNSTEIN L.P.	1.61%325.39K shares
HINKLE GARY L	≈1.50%303K shares
Burke James Mason	≈1.34%269.46K shares
HUTCHINSON CAPITAL MANAGEMENT/CA	1.28%259.08K shares
BURKE & HERBERT BANK & TRUST CO	1.08%217.74K shares
GOLDMAN SACHS GROUP INC	0.86%172.88K shares
NORTHERN TRUST CORP	0.75%151.09K shares
VANGUARD PORTFOLIO MANAGEMENT LLC	0.73%146.65K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.69%138.44K shares
George Georgette R.	≈0.66%133.71K shares
CITADEL ADVISORS LLC	0.62%125.04K shares
BRIDGEWAY CAPITAL MANAGEMENT, LLC	0.58%116.04K shares

Percentages use 20.17M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys59$6.24M disclosed value

Sells (SEC code S)3$332.5K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 3, 2026Form 4	Barnwell Julian Forrest Jr.Director	BuyCommon Stock	5.0K	$62.76	$313.8K	26.6K
May 20, 2026Form 4	Upson Jill SDirector	SellCommon Stock	1.1K	$63.31	$70.4K	2.0K
May 12, 2026Form 4	Riojas Jose DavidDirector	BuyCommon Stock · indirect	1.0K	$62.00	$62.0K	20.0K
May 12, 2026Form 4	Riojas Jose DavidDirector	BuyCommon Stock	300	$62.00	$18.6K	11.5K
May 11, 2026Form 4/A	Barnwell Julian Forrest Jr.Director	BuyCommon Stock · indirect	5.0K	$63.05	$315.3K	208.9K