BHRB · Burke & Herbert Financial Services Corp.

Burke & Herbert’s Q1 2026 results reflect modest sequential earnings pressure amid disciplined balance sheet management and strategic momentum toward its merger with LINKBANCORP. Net income declined 9.7% quarter-over-quarter to $27.1 million, driven primarily by a $3.1 million drop in net interest income — attributable to lower loan interest income ($5.7 million decrease) partially offset by lower deposit costs ($2.6 million decrease). The net interest margin compressed 2 basis points to 4.09% (FTE, non-GAAP), reflecting lower average loan volumes and rates alongside increased short-term borrowings. Loan accretion income fell to $6.8 million from $8.7 million in Q4, reducing NIM support by 8.8 bps annually. Despite the dip, asset quality remains solid — allowance coverage stood at 1.3% of loans, and capital ratios significantly exceed well-capitalized thresholds (CET1: 13.8%, Total RBC: 16.5%). Management highlighted strong new loan originations ($132.0 million in relationship-based commitments) and a stable core deposit base, noting the bank is 'on a good trajectory for the year' and delivering 'top quartile returns compared to peers.' The $0.55 dividend reaffirms capital return discipline. Critically, the filing confirms receipt of all required regulatory approvals for the LINKBANCORP merger, with closing targeted for May 1, 2026 — positioning the combined entity to operate with ~$11 billion in assets and over 100 locations across six states. Forward-looking statements in both Exhibit 99.1 and 99.2 emphasize anticipated synergies, integration planning, and continued focus on fortress balance sheet management, though risks around timing, integration execution, and macroeconomic headwinds are explicitly cited.