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Regulatory Capital Matters
 6 Months Ended
Jun. 30, 2025
Regulatory Capital Requirements under Banking Regulations [Abstract]  
Regulatory Capital Matters Regulatory Capital Matters
Banks and financial 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 June 30, 2025, 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 June 30, 2025, and December 31, 2024, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action.”
The following table presents the actual and required capital amounts and ratios for the Company and the Bank at June 30, 2025, and December 31, 2024 (in thousands except for ratios):
ActualMinimum Required Capital - Basel IIIMinimum Required to be Well Capitalized
AmountRatioAmountRatioAmountRatio
As of June 30, 2025
Total Capital to risk weighted assets
Consolidated$980,434 15.27 %$674,172 
≥ 10.5%
$642,069 
N/A
Burke & Herbert Bank & Trust966,143 15.08 672,585 
≥ 10.5
640,557 
≥ 10.0
Tier 1 (Core) Capital to risk weighted assets
Consolidated812,119 12.65 545,758 
≥ 8.5
513,655 
N/A
Burke & Herbert Bank & Trust895,380 13.98 544,474 
≥ 8.5
512,446 
≥ 8.0
Common Tier 1 (CET 1) to risk-weighted assets
Consolidated784,566 12.22 449,448 
≥ 7.0
417,345 
N/A
Burke & Herbert Bank & Trust895,380 13.98 448,390 
≥ 7.0
416,362 
≥ 6.5
Tier 1 (Core) Capital to average assets (leverage ratio)
Consolidated812,119 10.42 311,652 
≥ 4.0
389,565 
N/A
Burke & Herbert Bank & Trust895,380 11.51 311,156 
≥ 4.0
388,944 
≥ 5.0
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
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 June 30, 2025, approximately $293.6 million of retained earnings was available for dividend declaration consistent with the Company’s capital plan.