Burke & Herbert Bank Reports Second-Quarter Earnings
Alexandria, VA, August 12 – Burke & Herbert Bank continues to enjoy strong earnings from ongoing operations, despite continuing challenges resulting from the prevailing rate environment.
For the first six months of 2014, the Bank posted net income of $15.7 million, a decrease of $1.5 million (-9.0%) from the same period one year ago. Net income for the second quarter alone was $8.1 million, a decline of $419,000 (-5.0%) from the same quarter the prior year. The primary cause of the decline in year-to-date earnings is a one-time write-down of $1.3 million on real property recorded in the first quarter.
Interest income for the first half of the year was $49.4 million, 5.3% lower than for the corresponding period one year ago. Until a change in interest rates occurs, the banking industry will continue to experience the replacement of interest-bearing assets at lower yields.
However, as a result of the extended period of low rates, the Bank continues to enjoy a low cost of funds. The decline in interest expense exceeded 24.0% for both the second quarter and the first half of 2014, mitigating in part the decline in net interest income.
To read the results in detail, download a copy of our Second Quarter 2014 Earnings Report.
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 along with investment accounts, trust products and wealth management services. Burke & Herbert Bank is headquartered in Alexandria and operates 25 branches in Northern Virginia.
Trust and wealth management products and services are not deposits, are not insured by the FDIC or any other government agency, are not guaranteed by the Bank and may lose value.