Burke & Herbert Bank Posts 32% Earnings Pop

Photo by John Arundel Burke & Herbert in the snow two weeks ago.

ALEXANDRIA, VA. -  Alexandria-based Burke & Herbert Bank & Trust Company reported earnings of $23.9 million for the first nine months of 2009, an increase of 32% over the same period in 2008.

Earnings per share totaled $124.51, also up 32% from last year. Revenue improved 31% to $68.8 million, up from $52.5 million in the previous year, which was itself a record year for the Bank.

Return on average assets for the period was up 12% to 1.75%. Return on equity improved to 18.56%, an increase of 27%.

Tangible equity amounted to 9.9% of total assets at September 30. Strong balance sheet growth continued as assets increased by 19% to $1.9 billion. Loans increased by $184 million or 17%, and deposits increased by $282 million or 23%.  

Significantly, Burke & Herbert Bank reported an extremely low ratio of nonperforming loans to total loans. The Bank’s ratio of nonperforming loans to loans, at 0.56%, is among the best in the industry and is roughly only 20% of the peer group average based on the most recent data available.  

Returns and overall financial performance at this level position Burke & Herbert Bank among banking industry leaders nationally. This performance was achieved despite the FDIC special assessment imposed on all banks, amounting to additional expense of $853,000 for Burke & Herbert Bank.

 “Our strong performance so far in 2009 is especially gratifying given the challenges of the current economic environment,” Charles K. Collum, Jr., Chairman of the Board said in a statement.

 “The loyalty of our customers and dedication of our hard-working employees have helped us maintain Burke & Herbert Bank’s leadership position both regionally and among banks nationwide.”

E. Hunt Burke, Chief Executive Officer noted the fact that 2008 was a record year for Burke & Herbert Bank and that the Bank’s performance in the first three quarters of this year surpasses even that. “These results are remarkable and provide even more evidence that our long-standing strategy of sound banking, prudent fiscal management and efficient operation continues to stand the test of time very well,” Burke said in a statement.  

W. Scott McSween, President & COO said in the same statement, “Burke & Herbert Bank has continued to make loans to credit-worthy consumers and businesses throughout the time of unprecedented economic adversity we all have experienced. To also post record-setting financial results in the face of these conditions demonstrates that our Bank epitomizes true community banking at its very best.”

Burke & Herbert Bank & Trust Company, established in 1852, is the oldest bank in the Commonwealth of Virginia and the oldest continuously operating bank in the Washington, D.C. area.  Burke & Herbert Bank provides a full range of personal and business banking products and services including mortgages, business loans, trust services, 24-hour online banking (www.burkeandherbert.com) and mobile banking for customers on the go. The Bank operates over 20 branches in Northern Virginia along with its e-Branch which enables customers to open a checking or CD account online.