Burke & Herbert Bank & Trust Company Announces Intent to Form Holding Company

Rhea-AI Summary

Burke & Herbert Bank & Trust Company (OTCPK: BHRB) plans to form a bank holding company, Burke & Herbert Financial Services Corp., pending regulatory approval. This new structure aims to enhance financial and operational flexibility, allowing current shareholders to retain their rights and ownership proportions. Executives believe the reorganization could improve access to capital markets and increase stock visibility. The Bank will maintain its full range of services and continue operating from its Alexandria headquarters.

Positive

• Formation of a bank holding company could improve access to capital markets.
• Increased operational flexibility for the Bank.
• Current shareholders will retain ownership rights in the new structure.

Negative

• None.

ALEXANDRIA, Va., June 22, 2022 /PRNewswire/ -- Burke & Herbert Bank & Trust Company (OTCPK: BHRB) (the "Bank") announced its intent to form a bank holding company, Burke & Herbert Financial Services Corp. (the "Company"), subject to regulatory approval. If approved, the Bank would become a subsidiary of the newly-formed Company. Current shareholders of the Bank would become shareholders of the Company and current shareholders will have the same rights and ownership percentage in the Company as they currently have in the Bank.

"We believe the new corporate structure will provide further financial and operational flexibility for the Bank and is an important part of the continued success of the Bank," said E. Hunt Burke, Chairman of the Bank.

The Company formation will not impact the Bank's operations and the Bank will continue to provide its full range of financial services. The Bank's headquarters and the Company's headquarters will be located in Alexandria, Virginia.

"A successful corporate reorganization can lead to additional access to capital markets, better liquidity for our shareholders, and increased visibility and demand for our stock," said David P. Boyle, the Bank's President & Chief Executive Officer. "We are excited and looking forward to this process as we execute our strategic priorities designed to deliver increased value for our customers, communities, employees and shareholders."

Burke & Herbert Bank is the oldest bank in the Commonwealth of Virginia and the oldest continuously operating bank in the Washington, DC area. The Bank offers a full range of personal and business banking products and services designed to meet customers' banking, borrowing, and investing needs. Burke & Herbert Bank is headquartered in Alexandria and operates more than 20 branches throughout northern Virginia and greater Fredericksburg.  

Member FDIC; Equal Housing Lender

Contact:
Jane Petty
703-216-5491
jpetty@burkeandherbertbank.com

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SOURCE Burke & Herbert Bank

FAQ

What is Burke & Herbert Bank & Trust Company's plan announced on June 22, 2022?

The Bank intends to form a bank holding company called Burke & Herbert Financial Services Corp. pending regulatory approval.

How will the formation of the holding company affect current shareholders of BHRB?

Current shareholders will maintain the same rights and ownership percentages in the new holding company.

What benefits does Burke & Herbert Bank expect from forming a bank holding company?

The Bank expects enhanced financial flexibility, better access to capital markets, and increased stock visibility.

Where will Burke & Herbert Bank's headquarters be located after forming the holding company?

Both the Bank and the new holding company will be headquartered in Alexandria, Virginia.