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Regulatory Capital Matters
 12 Months Ended
Dec. 31, 2024
Regulatory Capital Requirements under Banking Regulations [Abstract]  
Regulatory Capital Matters Regulatory Capital Matters
Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel III Framework, an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on AFS securities is not included in computing regulatory capital. Management believes as of December 31, 2024, the Company and the Bank meet all capital adequacy requirements to which they are subject.
“Prompt corrective action” regulations provide five classifications: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized,” although these terms are not used to represent overall financial condition. If “adequately capitalized,” regulatory approval is required to accept brokered deposits. If “undercapitalized,” capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of December 31, 2024, and December 31, 2023, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action.”
The table below presents the actual and required capital amounts and ratios for the Company and the Bank at December 31, 2024, and December 31, 2023 (in thousands except for ratios).
ActualMinimum Required Capital - Basel IIIMinimum Required to be Well Capitalized
AmountRatioAmountRatioAmountRatio
As of December 31, 2024
Total Capital to risk-weighted assets
Consolidated$930,753 14.57 %$670,590 
≥ 10.5%
$638,658 
N/A
Burke & Herbert Bank & Trust919,843 14.41 670,028 
≥ 10.5
638,122 
≥ 10.0
Tier 1 (Core) Capital to risk-weighted assets
Consolidated763,842 11.96 542,859 
≥ 8.5
510,926 
N/A
Burke & Herbert Bank & Trust847,804 13.29 542,404 
≥ 8.5
510,498 
≥ 8.0
Common Tier 1 (CET 1) to risk-weighted assets
Consolidated736,416 11.53 447,060 
≥ 7.0
415,127 
N/A
Burke & Herbert Bank & Trust847,804 13.29 446,686 
≥ 7.0
414,779 
≥ 6.5
Tier 1 (Core) Capital to average assets (leverage ratio)
Consolidated736,416 9.80 311,904 
≥ 4.0
389,880 
N/A
Burke & Herbert Bank & Trust847,804 10.88 311,616 
≥ 4.0
389,520 
≥ 5.0
As of December 31, 2023
Total Capital to risk-weighted assets
Consolidated$443,799 17.88 %$260,694 
≥ 10.5%
$248,280 
N/A
Burke & Herbert Bank & Trust442,414 17.82 260,626 
≥ 10.5
248,215 
≥ 10.0
Tier 1 (Core) Capital to risk-weighted assets
Consolidated418,244 16.85 211,038 
≥ 8.5
198,624 
N/A
Burke & Herbert Bank & Trust416,859 16.79 210,983 
≥ 8.5
198,572 
≥ 8.0
Common Tier 1 (CET 1) to risk-weighted assets
Consolidated418,244 16.85 173,796 
≥ 7.0
161,382 
N/A
Burke & Herbert Bank & Trust416,859 16.79 173,751 
≥ 7.0
161,340 
≥ 6.5
Tier 1 (Core) Capital to average assets (leverage ratio)
Consolidated418,244 11.31 147,965 
≥ 4.0
184,957 
N/A
Burke & Herbert Bank & Trust416,859 11.27 147,986 
≥4.0
184,982 
≥5.0
The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of December 31, 2024, approximately $249.7 million of retained earnings was available for dividend declaration consistent with the Company’s capital plan.