Burke & Herbert Bank Declares Dividend
Follows Announcement of Strong Results for 2016
Alexandria, VA, Jan. 23, 2017 – Burke & Herbert Bank announced today that at the meeting of its Board of Directors held on January 19, a regular cash dividend of $18.00 per share was declared, to be paid on March 1, 2017 to shareholders of record as of the close of business on February 15, 2017. This quarterly dividend payment represents an increase of $0.50 per share from the dividend paid during the same quarter last year. In 2016, the Bank paid dividends totaling $74.00 per share, matching the total for the year prior.
"Our 164th year in business was a good one for Burke & Herbert Bank. We produced solid earnings, continued to grow our customer base, and, importantly, generated a healthy volume of new loans while maintaining the exceptional quality of our loan portfolio," said E. Hunt Burke, the Bank's Chairman & Chief Executive Officer. "We are pleased about the Bank's performance overall for 2016 and look forward to continued growth and success in 2017 and beyond," he added.
Burke & Herbert Bank posted net income of $27.2 million for 2016, as compared to earnings of $30.9 million in the year prior. The $3.7 million decline was driven primarily by increased expenses associated with the fulfillment of regulatory compliance enhancements and other investments in the Bank's infrastructure. As of December 31, 2016, the Bank's assets reached $2.96 billion, representing an increase of $293.6 million or 11.0% when compared to the end of the year prior. Net loans, which represent the largest component of earning assets, grew by $221.2 million, or 15.6%, to end the year at $1.64 billion. The loan portfolio reached a new all-time high level at year-end. New loan production for the year was robust, totaling $487.9 million for 2016, ahead of the prior year by 8.0%. The increase was driven primarily by growth in the commercial real estate lending business, a core competency for Burke & Herbert Bank. The Bank's deposits ended the year at $2.22 billion, representing a slight increase over total deposits at year-end 2015.
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.