The dividend is unchanged and the sub-debt offering strengthens capital, but the rise in nonperforming loans (+$12.7M QoQ) and the merger integration costs warrant monitoring. Watch for charge-off trends in the next quarter and any further guidance on credit quality.
Price Chart
Executive Summary
Burke & Herbert reported Q3 2026 net income of $36.2M ($1.78 diluted EPS) vs $9.3M ($0.50) in Q2, reflecting a full quarter of the LINKBANCORP merger. The board declared a $0.55/share regular dividend, unchanged from prior quarters. Adjusted operating EPS was $2.14, and the bank completed a $100M subordinated debt offering to bolster capital. The sequential earnings improvement is largely merger-related, and core trends show stable NIM (4.21%) but rising nonperforming loans ($108M vs $95M in Q2).
Key Financial Metrics
Key Facts
- Q3 2026 net income applicable to common shares: $36.2M ($1.78 diluted EPS) vs $9.3M ($0.50) in Q2 2026
- Adjusted (non-GAAP) operating net income: $43.4M, adjusted diluted EPS: $2.14
- Dividend declared: $0.55 per share, payable Dec 1, 2026 to holders of record Nov 13, 2026
- Completed $100M subordinated debt offering during Q3
- Net interest margin (FTE): 4.21% vs 4.15% in Q2 2026
- Nonperforming loans increased to $108.0M (1.34% of total loans) from $95.3M (1.19%) in Q2
- Total gross loans: $8.1B; total deposits: $9.0B; loan-to-deposit ratio: 90.0%
- Common Equity Tier 1 ratio: 12.03%; Total risk-based capital ratio: 15.45%
Financial Impact
Quarterly net income of $36.2M; adjusted operating net income of $43.4M; $100M sub debt issuance; $0.55/share dividend
Risk Factors
- Nonperforming loans increased to $108M (1.34% of loans) from $95M (1.19%) in Q2; management attributes to isolated credits but further deterioration could pressure earnings
- Merger integration costs and elevated non-interest expense ($74.5M vs $48.1M in Q3 2025) may persist
- Rising deposit costs (1.83% vs 1.75% in Q2) in a higher-rate environment could compress NIM
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3386891 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K/A | $70.81 | awaiting T+60 | — | $70.08 (−1.04%) |
Oct 22, 2026 4d ago | 8-K | $70.70 | awaiting T+60 | — | $70.08 (−0.88%) |
Oct 22, 2026 4d ago | Press Release | $70.70 | awaiting T+60 | — | $70.08 (−0.88%) |
Sep 30, 2026 26d ago | 424B5 | $68.60 | awaiting T+60 | — | $70.08 (+2.16%) |
Sep 28, 2026 28d ago | Press Release | $69.06 | awaiting T+60 | — | $70.08 (+1.48%) |
Sep 28, 2026 28d ago | 8-K | $69.06 | awaiting T+60 | — | $70.08 (+1.48%) |
Sep 28, 2026 28d ago | 424B5 | $69.06 | awaiting T+60 | — | $70.08 (+1.48%) |
Sep 18, 2026 5w ago | 8-K | $69.90 | awaiting T+60 | — | $70.08 (+0.26%) |
Aug 20, 2026 9w ago | Insider Cluster | $71.00 | awaiting T+60 | — | $70.08 (−1.30%) |
Aug 20, 2026 9w ago | Insider Cluster | $71.00 | awaiting T+60 | — | $70.08 (−1.30%) |
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