Burke & Herbert Bank & Trust (BHRB) 10-Q 31 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 26, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-41633
Entity Registrant Name	Burke & Herbert Financial Services Corp.
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	92-0289417
Entity Address, Address Line One	100 S. Fairfax Street
Entity Address, City or Town	Alexandria
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22314
City Area Code	703
Local Phone Number	549-2304
Title of 12(b) Security	Common Stock, par value $0.50 per share
Trading Symbol	BHRB
Security Exchange Name	NASDAQ
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,427,840
Entity Central Index Key	0001964333
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Assets
Cash and due from banks		$ 10,616	$ 9,124
Interest-bearing deposits with banks		106,323	41,171
Cash and cash equivalents		116,939	50,295
Securities available-for-sale, at fair value		1,362,785	1,371,757
Restricted stock, at cost		9,129	16,443
Loans held-for-sale, at fair value		360	0
Loans		1,951,738	1,887,221
Allowance for credit losses	[1]	(25,704)	(21,039)
Loans, net		1,926,034	1,866,182
Premises and equipment, net		55,157	53,170
Accrued interest receivable		15,158	15,481
Company-owned life insurance		93,053	92,487
Other assets		92,571	97,083
Total Assets		3,671,186	3,562,898
Liabilities
Non-interest-bearing deposits		906,723	960,692
Interest-bearing deposits		2,125,668	1,959,708
Total deposits		3,032,391	2,920,400
Borrowed funds		321,700	343,100
Accrued interest and other liabilities		27,312	25,945
Total Liabilities		3,381,403	3,289,445
Commitments and contingent liabilities (see Note 10)
Shareholders’ Equity
Preferred Stock, $1.00 par value per share; 2,000,000 shares authorized; no shares issued or outstanding		0	0
Common Stock		4,000	4,000
Additional paid-in capital		12,686	12,282
Retained earnings		424,532	424,391
Accumulated other comprehensive income (loss)		(123,809)	(139,495)
Treasury stock		(27,626)	(27,725)
Total Shareholders’ Equity		289,783	273,453
Total Liabilities and Shareholders’ Equity		$ 3,671,186	$ 3,562,898
[1]Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest income
Loans, including fees	$ 22,760	$ 16,450
Taxable securities	9,802	5,358
Tax-exempt securities	1,458	2,426
Other interest income	308	18
Total interest income	34,328	24,252
Interest expense
Deposits	5,401	400
Borrowed funds	4,138	366
Other interest expense	15	15
Total interest expense	9,554	781
Net interest income	24,774	23,471
Provision for (recapture of) credit losses	515	(2,638)
Net interest income after credit loss expense	24,259	26,109
Non-interest income
Net gains/(losses) on securities	0	104
Income from life insurance	560	537
Other non-interest income	682	536
Total non-interest income	4,214	4,115
Non-interest expense
Salaries and wages	9,494	9,529
Pensions and other employee benefits	2,468	2,039
Occupancy	1,457	1,546
Equipment rentals, depreciation and maintenance	1,339	1,379
Other operating	5,607	4,672
Total non-interest expense	20,365	19,165
Income before income taxes	8,108	11,059
Income tax expense	584	1,933
Net income	$ 7,524	$ 9,126
Earnings per common share:
Basic EPS (in usd per share)	$ 1.01	$ 1.23
Diluted EPS (in usd per share)	$ 1	$ 1.23
Fiduciary and wealth management
Non-interest income
Revenue from contract with customer	$ 1,337	$ 1,305
Service charges and fees
Non-interest income
Revenue from contract with customer	$ 1,635	$ 1,633

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 7,524	$ 9,126
Unrealized gains (losses) on securities:
Unrealized gain (loss) arising during period, net of tax of ($4,577) for March 31, 2023, and $16,962 for March 31, 2022	17,218	(63,808)
Reclassification adjustment for loss (gain) on securities, net of tax of $— for March 31, 2023, and $22 for March 31, 2022	0	(82)
Reclassification adjustment for loss (gain) on a fair value hedge, net of tax of $496 for March 31, 2023, $— for March 31, 2022	(1,866)	0
Unrealized gain (loss) on cash flow hedge
Unrealized holding gain (loss) on cash flow hedge, net of tax of ($13) for March 31, 2023, and $133 for March 31, 2022	47	(503)
Reclassification adjustment for losses (gains) included in net income, net of tax ($76) for March 31, 2023, and $16 for March 31, 2022	287	(59)
Total other comprehensive income (loss)	15,686	(64,452)
Comprehensive income (loss)	$ 23,210	$ (55,326)

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands	Total	Impact of CECL Adoption	Common Stock	Additional Paid-in Capital	Retained Earnings	Retained Earnings Impact of CECL Adoption	Comprehensive Income (Loss)	Treasury Stock
Common stock, beginning balance (in shares) at Dec. 31, 2021			7,423,760
Beginning balance at Dec. 31, 2021	$ 389,627		$ 4,000	$ 10,374	$ 396,120		$ 6,955	$ (27,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,126				9,126
Other comprehensive income (loss)	(64,452)						(64,452)
(Purchase) sale of treasury stock, net (in shares)			560
(Purchase) sale of treasury stock, net	27							27
Cash dividends, declared	(3,935)				(3,935)
Share-based compensation expense, net	517			517
Common stock, ending balance (in shares) at Mar. 31, 2022			7,424,320
Ending balance at Mar. 31, 2022	330,910		$ 4,000	10,891	401,311		(57,497)	(27,795)
Common stock, beginning balance (in shares) at Dec. 31, 2021			7,423,760
Beginning balance at Dec. 31, 2021	$ 389,627		$ 4,000	10,374	396,120		6,955	(27,822)
Common stock, ending balance (in shares) at Dec. 31, 2022	7,425,760		7,425,760
Ending balance at Dec. 31, 2022	$ 273,453	$ (3,439)	$ 4,000	12,282	424,391	$ (3,439)	(139,495)	(27,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting standards update	Accounting Standards Update 2016-13 [Member]
Net income	$ 7,524				7,524
Other comprehensive income (loss)	15,686						15,686
(Purchase) sale of treasury stock, net (in shares)			2,080
(Purchase) sale of treasury stock, net	99							99
Cash dividends, declared	(3,936)				(3,936)
Share-based compensation expense, net	$ 396			404	(8)
Common stock, ending balance (in shares) at Mar. 31, 2023	7,427,840		7,427,840
Ending balance at Mar. 31, 2023	$ 289,783		$ 4,000	$ 12,686	$ 424,532		$ (123,809)	$ (27,626)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities
Net income	$ 7,524	$ 9,126
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets	684	777
Amortization of housing tax credits	1,398	1,537
Realized (gain) on sales of available-for-sale securities	0	(104)
Provision for (recapture of) credit losses	515	(2,638)
Income from Company-owned life insurance	(560)	(537)
Deferred tax (benefit)	(1,234)	(214)
Loss on Disposal of fixed assets	0	6
Accretion of securities	(466)	(315)
Amortization of securities	2,350	2,906
Share-based compensation expense	581	506
Repayment of operating lease liabilities	(810)	(555)
(Gain) on loans held for sale	(15)	(52)
Proceeds from sale of loans held-for-sale	658	2,604
Change in fair value of loans held-for-sale	7	23
Originations of loans held-for-sale	(1,010)	(1,326)
(Increase) decrease in accrued interest receivable	323	(680)
(Increase) decrease in other assets	(1,235)	4,027
Increase (decrease) in accrued interest payable and other liabilities	2,216	(896)
Net cash flows provided by operating activities	10,926	14,195
Cash Flows from Investing Activities
Proceeds from maturities, prepayments, and calls of securities available-for-sale, net	28,883	66,373
Proceeds from sale of securities available-for-sale, net	0	87,033
Purchases of securities available-for-sale, net	0	(158,035)
Sales of restricted stock	22,232	2,250
Purchases of restricted stock	(14,918)	(469)
Purchases of property and equipment, net of disposals	(2,671)	(109)
(Purchase of) company-owned life insurance	(6)	(1)
(Increase) in loans made to customers, net	(64,517)	(15,235)
Net cash flows (used in) investing activities	(30,997)	(18,193)
Cash Flows from Financing Activities
Net increase (decrease) in non-interest-bearing accounts	(53,969)	34,634
Net increase in interest-bearing accounts	165,960	5,567
(Decrease) in other short-term borrowings	(21,400)	(50,000)
Repayment of finance lease liabilities	(39)	(38)
Cash dividends paid	(3,936)	(3,935)
Sale of treasury stock	99	27
Net cash flows provided by financing activities	86,715	(13,745)
Increase (decrease) in cash and cash equivalents	66,644	(17,743)
Beginning of period	50,295	79,910
End of period	116,939	62,167
Cash payments for:
Interest paid to depositors	4,276	413
Interest paid on other borrowed funds	3,952	375
Interest paid on finance lease	15	16
Income taxes	0	0
Change in unrealized gains on available-for-sale securities	21,795	(80,770)
Lease liability arising from obtaining right-of-use assets	$ 0	$ 0

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 1	$ 1
Preferred stock, authorized (in shares)	2,000,000	2,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value per share (in dollars per share)	$ 0.50	$ 0.50
Common stock, authorized (in shares)	20,000,000	20,000,000
Common stock, issued (in shares)	8,000,000	8,000,000
Common stock, outstanding (in shares)	7,427,840	7,425,760
Treasury stock, shares (in shares)	572,160	574,240

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) arising during period, tax expense (benefit)	$ 4,577	$ (16,962)
Reclassification adjustment for loss (gain) on securities, tax	0	22
Reclassification adjustment for loss (gain) on a fair value hedge, tax	496	0
Unrealized holding gain (loss) on cash flow hedge, tax	(13)	133
Reclassification adjustment for losses (gains) included in net income, tax	$ (76)	$ 16

Nature of Business Activities a

Nature of Business Activities and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Nature of Business Activities and Significant Accounting Policies	Nature of Business Activities and Significant Accounting Policies Nature of operations Burke & Herbert Financial Services Corp. was organized as a Virginia corporation on September 14, 2022, to serve as the holding company for Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as the “Company”. The Company commenced operations as a bank holding company on October 1, 2022, following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. As a bank holding company, the Company is subject to regulation and supervision by the Federal Reserve. The Company has no material operations and owns 100% of the Bank. The Bank is a Virginia chartered commercial bank that commenced operations in 1852. The Bank is supervised and regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Bureau of Financial Institutions of the Virginia State Corporation Commission (the “Virginia BFI”). The Bank’s primary market area includes northern Virginia, and it has over 20 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2022, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or on shareholders’ equity. Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023, on a prospective basis; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments ( “ASC 326” ) , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275 The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-02 addresses areas identified by the FASB as part of its implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors that have adopted the CECL model and enhance the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require that the Company disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted the standard prospectively, and it did not have a material impact on the financial statements. Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable The Company has elected to exclude accrued interest from the amortized cost basis in its determination of the ACL and elected the policy to write-off accrued interest receivable directly through the reversal of interest income. Accrued interest receivable totaled $7.5 million on loans and totaled $7.9 million on AFS securities at March 31, 2023, and is included in accrued interest receivable on the Company’s Consolidated Balance Sheets.

Securities

Securities	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Securities	Securities The carrying amount of AFS securities and their approximate fair values at March 31, 2023, and December 31, 2022, are summarized as follows (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,875 $ — $ 19,456 $ 178,419 Obligations of states and municipalities 547,896 44 79,578 468,362 Residential mortgage backed - agency 56,991 20 4,341 52,670 Residential mortgage backed - non-agency 349,123 12 27,985 321,150 Commercial mortgage backed - agency 59,409 58 1,635 57,832 Commercial mortgage backed - non-agency 190,542 97 7,414 183,225 Asset-backed 95,317 101 2,819 92,599 Other 9,500 — 972 8,528 $ 1,506,653 $ 332 $ 144,200 $ 1,362,785 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 At March 31, 2023, and December 31, 2022, AFS securities with amortized costs of $799.3 million and $637.1 million, respectively, and with estimated fair values of $714.5 million and $552.5 million, respectively, were pledged to serve as collateral for secured borrowings, derivative exposures, or to secure public deposits as required or permitted by law. As of March 31, 2023, the Company entered into a fair value hedge using the portfolio layer method that is described in further detail within Note 9 - Derivatives . The gross realized gains, realized losses, and proceeds from the sales of securities for the three months ended March 31, 2023, and March 31, 2022, were as follows (in thousands): March 31, 2023 March 31, 2022 Gross realized gains $ — $ 727 Gross realized losses — (623) Proceeds from sales of securities — 87,033 The tax benefit (provision) related to these net realized gains and losses for March 31, 2023, and March 31, 2022, was zero, and $21.8 thousand, respectively. The maturities of AFS securities at March 31, 2023, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). March 31, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 59,546 $ 138,329 $ — $ 197,875 Obligations of states and municipalities 370 10,947 332,562 204,017 547,896 Residential mortgage backed - agency 42 33,446 23,503 — 56,991 Residential mortgage backed - non-agency 32,336 209,368 92,763 14,656 349,123 Commercial mortgage backed - agency 233 52,796 6,380 — 59,409 Commercial mortgage backed - non-agency 32,882 152,507 5,153 — 190,542 Asset-backed 2,296 51,621 41,400 — 95,317 Other — — 9,500 — 9,500 $ 68,159 $ 570,231 $ 649,590 $ 218,673 $ 1,506,653 March 31, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 55,500 $ 122,919 $ — $ 178,419 Obligations of states and municipalities 370 10,204 296,965 160,823 468,362 Residential mortgage backed - agency 42 32,561 20,067 — 52,670 Residential mortgage backed - non-agency 31,027 198,301 78,487 13,335 321,150 Commercial mortgage backed - agency 232 51,524 6,076 — 57,832 Commercial mortgage backed - non-agency 32,283 146,728 4,214 — 183,225 Asset-backed 2,238 49,966 40,395 — 92,599 Other — 8,528 — 8,528 $ 66,192 $ 544,784 $ 577,651 $ 174,158 $ 1,362,785 At March 31, 2023, and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2023, and December 31, 2022. AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): March 31, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 178,419 $ 19,456 $ 19,456 Obligations of states and municipalities 17,774 330 444,269 79,248 79,578 Residential mortgage backed - agency 616 10 42,382 4,331 4,341 Residential mortgage backed - non-agency 109,454 7,318 210,963 20,667 27,985 Commercial mortgage backed - agency 1,688 124 54,441 1,511 1,635 Commercial mortgage backed - non-agency 10,970 136 160,432 7,278 7,414 Asset-backed 21,586 187 61,972 2,632 2,819 Other 6,775 725 1,753 247 972 $ 168,863 $ 8,830 $ 1,154,631 $ 135,370 $ 144,200 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 The Company is required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis under the CECL standard, and declines due to non-credit factors are recorded in accumulated other comprehensive income (“AOCI”), net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in accumulated other comprehensive income, net of taxes, on the consolidated statements of financial condition. Prior to implementation of the CECL standard, unrealized losses caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment approach. The Company did not record an ACL on the AFS securities at March 31, 2023, or upon implementation of CECL on January 1, 2023. As of both periods, the Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. The Company had 451 securities in an unrealized loss position as of March 31, 2023. The Company has evaluated available-for-sale securities in an unrealized loss position for credit related impairment at March 31, 2023, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no ACL on available-for-sale securities at March 31, 2023. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At March 31, 2023, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 19 Residential Mortgage Backed – Agency securities, and 31 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Securities of U.S. States and Municipalities At March 31, 2023, the unrealized losses associated with 214 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These securities are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Residential & Commercial Mortgage Backed – Non-Agency Securities At March 31, 2023, the unrealized losses associated with 108 Residential Mortgage Backed – Non-Agency securities and 36 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Asset-Backed Securities At March 31, 2023, the unrealized losses associated with 28 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Other Securities At March 31, 2023, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments are underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Restricted stock, at cost The Company’s investment in Federal Home Loan Bank (“FHLB”) stock totaled $9.1 million and $16.4 million at March 31, 2023, and December 31, 2022, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be impaired at March 31, 2023, and no impairment has been recognized. FHLB stock is included in a separate line item Restricted stock, at cost on the Consolidated Balance Sheets and is not part of the Company’s AFS securities portfolio. The Company’s Restricted stock line item on the Consolidated Balance Sheets also includes an investment in Community Bankers’ Bank, totaling $50 thousand at both March 31, 2023, and December 31, 2022, which is carried at cost and is not impaired at March 31, 2023.

Loans

Loans	3 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Loans	Loans The Company’s loan portfolio segments, as reported in the tables below, include (i) commercial real estate (ii) owner-occupied commercial real estate (iii) acquisition, construction & development (iv) commercial & industrial (v) single family residential (1-4 units) and (vi) consumer non-real estate and other. The risks associated with lending activities differ among the various loan segments and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction and development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry the risk associated with the operations of the business and the value of the collateral, if any. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purpose carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. Loan balances at March 31, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): March 31, 2023 December 31, 2022 Commercial real estate $ 1,154,210 $ 1,109,315 Owner-occupied commercial real estate 125,657 127,114 Acquisition, construction & development 99,886 94,450 Commercial & industrial 50,101 53,514 Single family residential (1-4 units) 518,775 499,362 Consumer non-real estate and other 3,109 3,466 1,951,738 1,887,221 Allowance for credit losses (25,704) (21,039) Loans, net $ 1,926,034 $ 1,866,182 Net deferred loan fees included in the above loan categories totaled $3.3 million and $3.3 million at March 31, 2023, and December 31, 2022, respectively. The Company holds $6.4 million

Allowance for Credit Losses

Allowance for Credit Losses	3 Months Ended
	Mar. 31, 2023
Credit Loss [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses On January 1, 2023, the Company adopted the CECL methodology as required under ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Company’s accounting policies and policy elections related to the accounting standards update refer to Note 1 - Nature of B usiness Activities and Significant Accounting Policies in these Notes to Consolidated Financial Statements. All information presented as of March 31, 2023, is in accordance with ASC 326. All other information presented prior to January 1, 2023, is in accordance with previous applicable GAAP. The Company’s ACL is calculated quarterly, with any adjustment recorded to the provision for credit losses in the Consolidated Statement of Income. Management calculates the quantitative portion of collectively evaluated loans for all loan categories using the WARM method. For purposes of estimating the Company’s ACL, management generally evaluates collectively evaluated loans by federal call code in order to group loans with similar risk characteristics. Loans that do not share similar risk characteristics are evaluated on an individual loan basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans that are collectively evaluated on a loan pool basis. A specific reserve analysis may be applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve is assigned if the measured value of the loan using one of the before mentioned methods is less than the carrying value of the loan. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond the information that is used to calculate a reasonable and supportable forecast and a reversion period forecast on collectively evaluated loans. Management may consider an additional or reduced reserve as warranted through qualitative risk factors based on the current and expected conditions, as measured in supplemental information relative to the macroeconomic variable loss drivers used to calculate a reasonable and supportable forecast and a reversion period forecast. These qualitative risk factors considered by management are largely comparable to legacy factors prior to the adoption of CECL. The following table presents the activity in the ACL, including the impact of the adoption of CECL, for the three months ended March 31, 2023, and the activity for the allowance for loan losses for the three months ended March 31, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended March 31, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 218 (73) 410 25 (13) (44) — 523 Charge-offs — — — — — (17) — (17) Recoveries 28 — — — 3 3 — 34 Balance, end of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 March 31, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (2,321) 52 127 (32) (1,030) 15 551 (2,638) Charge-offs (21) — — (20) — (28) — (69) Recoveries 3 — — — 47 9 — 59 Balance, end of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061 The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 Prior to the adoption of CECL, loans were considered impaired when, based on current information and events as of the measurement date, it was probable the Company would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. Impaired loans included loans on non-accrual status and accruing TDRs. When determining if the Company would be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement, the Company considered the borrower’s capacity to pay, which included such factors as the borrower’s current financial statements, an analysis of the global cash flow sufficient to pay all debt obligations, and an evaluation of secondary sources of repayment, such as guarantor support and collateral value. The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of March 31, 2023, and December 31, 2022, by portfolio segment (in thousands): March 31, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ 2,075 $ — $ 2,075 $ 1,152,135 $ 1,154,210 $ — $ — Owner-occupied commercial real estate — — — — 125,657 125,657 — 1,121 Acquisition, construction & development — — — — 99,886 99,886 — — Commercial & industrial — 31 — 31 50,070 50,101 — — Single family residential (1-4 units) 1,515 — 328 1,843 516,932 518,775 — 2,125 Consumer non-real estate and other — — — — 3,109 3,109 — — Total $ 1,515 $ 2,106 $ 328 $ 3,949 $ 1,947,789 $ 1,951,738 $ — $ 3,246 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic information, and other factors. The Company analyzes loans individually by classifying the loans by credit risk. The Company internally grades all commercial loans at the time of origination. In addition, the Company performs an annual review on the top twenty-five non-homogenous commercial loan relationships as measured by total Company exposure to each borrower. The Company uses the following definitions for credit risk classifications: Pass : These include satisfactory loans that have acceptable levels of risk. Special Mention : Loans classified as special mention have a potential credit weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of debt. Loans classified as substandard are inadequately protected by sound net worth, payment capacity of the borrower, or of the collateral pledged. If weaknesses go uncorrected, there is potential for partial loss of principal and/or interest. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and unlikely. Loss : Loans classified as a loss are considered to be uncollectible and cannot be justified to continue as viable assets. While there may be the possibility of some recovery in the future, it is not practical or desirable to defer writing off these loans at the present time. The Company has a portfolio of smaller homogenous loans that are not individually risk rated that are included within the single family residential and consumer non-real estate and other loan classes. Generally, these loan classes are rated in a “Pass” unless these loans are on non-accrual and are then classified as substandard. The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of March 31, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 51,800 $ 282,900 $ 214,098 $ 15,998 $ 76,014 $ 403,273 $ 4,309 $ 1,048,392 Special Mention — — — 8,433 5,302 40,929 — 54,664 Substandard — 600 2,351 — 7,569 40,634 — 51,154 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 51,800 $ 283,500 $ 216,449 $ 24,431 $ 88,885 $ 484,836 $ 4,309 $ 1,154,210 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 823 $ 30,039 $ 9,857 $ 15,463 $ 13,686 $ 49,753 $ 2,385 $ 122,006 Special Mention — — — — — 1,947 — 1,947 Substandard — 293 — — — 1,411 — 1,704 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 823 $ 30,332 $ 9,857 $ 15,463 $ 13,686 $ 53,111 $ 2,385 $ 125,657 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 1,275 $ 28,498 $ 10,995 $ — $ 9,260 $ 1,398 $ 1,360 $ 52,786 Special Mention — — — — 807 22,093 — 22,900 Substandard — — — — — 24,200 — 24,200 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 1,275 $ 28,498 $ 10,995 $ — $ 10,067 $ 47,691 $ 1,360 $ 99,886 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family residential (1-4 units) Pass $ 32,061 $ 129,294 $ 62,952 $ 33,281 $ 42,540 $ 154,070 $ 62,451 $ 516,649 Special Mention — — — — — — — — Substandard — — — 263 — 1,863 — 2,126 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 32,061 $ 129,294 $ 62,952 $ 33,544 $ 42,540 $ 155,933 $ 62,451 $ 518,775 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Current period gross charge-offs $ — $ 17 $ — $ — $ — $ — $ — $ 17 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 The following tables present information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of March 31, 2023 (in thousands): Collateral Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance March 31, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,121 1,121 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 3,329 3,329 — Consumer non-real estate and other — — — — — Total $ — $ — $ 4,450 $ 4,450 $ — On January 1, 2023, the Company adopted ASU 2022-02 on a modified retrospective basis. ASU 2022-02 eliminates the TDR accounting model and requires that the Company evaluate, based on the accounting for loan modifications, whether the borrower is experiencing financial difficulty, and the modification results in a more-than-insignificant direct change in the contractual cash flows and represents a new loan or a continuation of an existing loan. This change required all loan modifications to be accounted for under the general loan modification guidance in ASC 310-20, Receivables — Nonrefundable Fees and Other Costs, and subjects entities to new disclosure requirements on loan modifications to borrowers experiencing financial difficulty. Upon adoption of CECL, the Company loans classified as TDRs were individually evaluated for the ACL, and the measurement was done either using the collateral-dependent or the discounted cash flow method. The Company may modify loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, interest rate reduction, or an other-than-insignificant payment delay. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL. The Company may also provide multiple types of modifications on an individual loan. For the three months ended March 31, 2023, the Company did not extend any modifications to borrowers experiencing financial difficulty that had a more-than-insignificant direct change in the contractual cash flows of the loan. The Company did not extend any modifications that were defined as TDRs during the year ended December 31, 2022.

Deposits

Deposits	3 Months Ended
	Mar. 31, 2023
Financial Services, Banking and Thrift [Abstract]
Deposits	Deposits The aggregate amount of time deposits, each with a minimum denomination of $250,000, was approximately $35.7 million and $32.6 million on March 31, 2023, and December 31, 2022, respectively. Brokered time deposits totaled $389.2 million at March 31, 2023. There were $100.3 million in brokered time deposits at December 31, 2022. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $13.1 million at March 31, 2023, compared to $11.7 million at December 31, 2022. At March 31, 2023, the scheduled maturities of time deposits for the remaining nine months ending December 31, 2023 and the following five years were as follows (in thousands): As of March 31, 2023 Remaining nine months ending, December 31, 2023 $ 130,833 2024 114,613 2025 133,679 2026 82,141 2027 49,529 2028 77,386 $ 588,181 At March 31, 2023, and December 31, 2022, amounts included in time deposits for individual retirement accounts totaled $35.2 million and $36.9 million, respectively. Overdrafts of $277 thousand and $503 thousand were reclassified to loans as of the three months ended March 31, 2023, and the year ended December 31, 2022, respectively.

Advances and Other Borrowings

Advances and Other Borrowings	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Advances and Other Borrowings	Advances and Other Borrowings The Company had borrowings of $321.7 million and $343.1 million at March 31, 2023, and December 31, 2022, respectively. At March 31, 2023, the interest rate on this debt ranged from 4.38% to 4.88%. At December 31, 2022, the interest rate on this debt ranged from 4.13% to 4.57%. The average balance outstanding during the three months ending March 31, 2023, and the year ending December 31, 2022, was $358.1 million and $269.5 million, respectively. The Company’s short-term borrowings from time-to-time may consist of advances from the FHLB of Atlanta, unsecured lines from Correspondent Banks, and secured lines from the Federal Discount Window. The Company has available lines of credit with the FHLB of Atlanta and unsecured federal funds lines of credit from correspondent banking relationships. Through these sources, the Company has unused capacity of $809.1 million in remaining borrowing capacity as of March 31, 2023. The Advances on credit lines are secured by both securities and loans. The amount of securities and loans pledged against available lines of credit as of March 31, 2023, and December 31, 2022, was $620.7 million and $698.1 million, respectively. The contractual maturities of this debt as of March 31, 2023, are as follows (in thousands): Due in 2023 $ 171,700 Due in 2024 150,000 $ 321,700

Leased Property

Leased Property	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —

Regulatory Capital Matters

Regulatory Capital Matters	3 Months Ended
	Mar. 31, 2023
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 Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), 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 March 31, 2023, 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 March 31, 2023, and December 31, 2022, 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 March 31, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of March 31, 2023 Total Capital to risk weighted assets Consolidated $ 439,563 18.65 % $ 247,459 ≥ 10.5% $ 235,675 ≥ 10.0% Burke & Herbert Bank & Trust 436,046 18.50 247,528 ≥ 10.5 235,741 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 413,592 17.55 200,324 ≥ 8.5 188,540 ≥ 8.0 Burke & Herbert Bank & Trust 410,075 17.40 200,380 ≥ 8.5 188,593 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 413,592 17.55 164,973 ≥ 7.0 153,189 ≥ 6.5 Burke & Herbert Bank & Trust 410,075 17.40 165,019 ≥ 7.0 153,232 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 413,592 11.19 147,859 ≥ 4.0 184,824 ≥ 5.0 Burke & Herbert Bank & Trust 410,075 11.09 147,913 ≥ 4.0 184,891 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 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 March 31, 2023, approximately $188.5 million of retained earnings was available for dividend declaration without regulatory approval.

Derivatives

Derivatives	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objective in using interest rate derivatives is to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. During the first quarter of 2023, such derivatives were used to hedge the variable cash flows associated with variable-rate assets. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During the next 12 months, the Company estimates that an additional $1.5 million will be reclassified as a reduction to interest income. Fair value hedges of interest rate risk The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in interest income. As of March 31, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Securities available-for-sale, at fair value (1) $ 302,362 $ — $ 2,362 $ — Total $ 302,362 $ — $ 2,362 $ — (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $302.4 million; the cumulative basis adjustments associated with these hedging relationships was $2.4 million; and the amounts of the designated hedged items were $300.0 million. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Consolidated Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of March 31, 2023, and December 31, 2022 (in thousands): March 31, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,866 Interest rate swaps related to fair value hedges Other liabilities 300,000 2,283 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,439 $ 1,045 Interest rate swaps related to customer loans Other liabilities 34,439 1,045 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Interest rate swaps related to fair value hedges N/A — — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311 The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2023, and March 31, 2022, as follows (in thousands): Derivatives in Cash Flow March 31, 2023 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2023 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ 60 $ 60 $ — Interest Income $ (363) $ (363) $ — Total $ 60 $ 60 $ — $ (363) $ (363) $ — Derivatives in Cash Flow March 31, 2022 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2022 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (636) $ (636) $ — Interest Income $ 75 $ 75 $ — Total $ (636) $ (636) $ — $ 75 $ 75 $ — The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of March 31, 2023, and March 31, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships March 31, 2023 March 31, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (203) $ — $ 75 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 2,362 — — — Derivatives designated as hedging instruments (2,202) — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Credit-risk-related Contingent Features As of March 31, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was $4.1 million. As of March 31, 2023, the Company has posted the full amount of collateral related to these agreements.

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Interest rate lock commitments Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are defined as derivatives under GAAP. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the fair value option (“FVO”) on both the best-efforts forward commitments and the consumer mortgage loans held-for-sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. The net gains (losses) relating to the free-standing derivative instruments (interest rate lock commitments) were $4.2 thousand and $(74.5) thousand at March 31, 2023, and March 31, 2022. The notional amount of loan pipeline that resulted in interest rate lock commitments at March 31, 2023, and March 31, 2022, was $838 thousand and $1.4 million, respectively. Interest Rate lock commitments are not designated as hedging instruments, and therefore, changes in the fair value of these free-standing derivative instruments are reported as non-interest income. Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk and liquidity risk. These financial instruments include commitments to extend credit, commercial letters of credit, and revolving lines of credit. Many of our lending relationships contain both funded and unfunded elements. The funded portion is reflected on our balance sheet. The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility. Since many of our commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. A summary of the contractual amounts of the Company’s financial instruments outstanding at March 31, 2023, and December 31, 2022, is as follows (in thousands): March 31, 2023 December 31, 2022 Commitments to extend credit $ 277,463 $ 291,265 Commercial letters of credit 8,525 8,539 Commitments to extend credit and commercial letters of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Consolidated Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Allowance for credit losses - off-balance-sheet credit exposures The Company recorded a recapture of credit losses on unfunded commitments of $7.5 thousand for the three months ended March 31, 2023. The ACL on off-balance-sheet credit totaled $267.3 thousand at March 31, 2023, and is included in accrued interest and other liabilities on the accompanying Consolidated Balance Sheets. Litigation The Company is a party to litigation, claims and proceedings arising in the normal course of business that are ordinary and routine to the nature of the Company’s business and operations. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from any currently pending or threatened litigation, claims or proceedings will not be material to the Company’s financial position.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 178,419 $ — $ — $ 178,419 Obligations of states and municipalities — 468,362 — 468,362 Residential mortgage backed - agency — 52,670 — 52,670 Residential mortgage backed - non-agency — 321,150 — 321,150 Commercial mortgage backed - agency — 57,832 — 57,832 Commercial mortgage backed - non-agency — 183,225 — 183,225 Asset-backed — 92,599 — 92,599 Other — 8,528 — 8,528 Total investment securities available-for-sale $ 178,419 $ 1,184,366 $ — $ 1,362,785 Loans held-for-sale, at fair value $ — $ 360 $ — $ 360 Derivatives $ — $ 1,045 $ — $ 1,045 Financial liabilities Derivatives $ — $ 5,194 $ — $ 5,194 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: : Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 318 $ 318 Owner-occupied commercial real estate — — 1,371 1,371 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,242 2,242 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at March 31, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average March 31, 2023 Impaired loans $ 3,931 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2% Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at March 31, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at March 31, 2023 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 10,616 $ 10,616 $ — $ — $ 10,616 Interest-bearing deposits with banks 106,323 106,323 — — 106,323 Loans, net 1,926,034 — — 1,813,068 1,813,068 Accrued interest 15,158 — 15,158 — 15,158 Financial liabilities Non-interest, bearing $ 906,723 $ — $ 906,723 $ — $ 906,723 Interest bearing 2,125,668 — 2,118,085 — 2,118,085 Other borrowed funds 321,700 — 321,667 — 321,667 Accrued interest 2,763 — 2,763 — 2,763 Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest, bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods ending March 31, 2023, and March 31, 2022 (in thousands): March 31, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) 47 17,218 — 17,265 Less: net realized (gains) losses reclassified to earnings 287 (1,866) — (1,579) Net change in pension plan benefits — — — — Ending Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) March 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (503) (63,808) — (64,311) Less: net realized (gains) losses reclassified to earnings (59) (82) — (141) Net change in pension plan benefits — — — — Ending Balance $ (562) $ (50,915) $ (6,020) $ (57,497) The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the periods ending March 31, 2023, and December 31, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income March 31, 2023 March 31, 2022 Cash flow hedges: Interest rate contracts $ (363) $ 75 Interest income Tax effect 76 (16) Income tax expense (benefit) Net of Tax $ (287) 59 Available-for-sale securities: Realized gains (losses) on securities $ — $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges 2,362 — Interest income Tax effect (496) (22) Income tax expense (benefit) Net of Tax $ 1,866 $ 82 Total reclassifications, net of tax $ 1,579 $ 141 Net income

Other Operating Expense

Other Operating Expense	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Other Operating Expense	Other Operating Expense Other operating expense from the Consolidated Statements of Income for the three months ended March 31, 2023, and March 31, 2022, is as follows (in thousands): Three months ended 2023 2022 FDIC assessment $ 734 $ 702 Historic tax credit amortization 632 632 IT related 491 412 Consultant fees 470 212 Network expense 429 394 Directors' fees 410 245 Audit expense 307 92 Legal expense 305 175 Virginia franchise tax 243 233 Marketing expense 219 317 Other 1,367 1,258 Total $ 5,607 $ 4,672

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for the share-based awards granted was $580.6 thousand and $506.2 thousand for the three months ended March 31, 2023, and March 31, 2022, respectively. The total income tax benefit was $121.9 thousand and $106.3 thousand for the three months ended March 31, 2023, and March 31, 2022, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of share-based awards to directors and employees of the Company. The 2019 SIP authorized 240,000 units to be issued, and the Company has a practice of using shares held as treasury stock to satisfy these share-based awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards. Under the 2019 SIP, the Company has issued restricted stock unit (“RSU”) awards that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 24,705 and 12,160 shares were issued during the three months ended March 31, 2023, and March 31, 2022, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three The Board, from time-to-time, approves performance-based RSU awards that may be earned between a three The fair value for performance-based RSU awards was determined by using a Monte Carlo simulation analysis to estimate the achievement of the market capitalization target determined by the Board. The Monte Carlo simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. The following is a summary of the Company’s RSU awards: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (3,120) 50.47 Forfeited — — Nonvested at March 31, 2023 144,025 $ 51.34 As of March 31, 2023, there was $4.7 million of total unrecognized compensation costs related to nonvested shares granted under the 2019 SIP. The cost is expected to be recognized over a weighted average period of 2.08 years. 2023 Stock Incentive Plan In 2023, a new stock incentive plan (“2023 SIP”) was approved by the Board of directors and shareholders. Upon the plan’s shareholder approval date of March 30, 2023, no further share-based awards will be issued under the 2019 SIP. The plan provides for the issuance of share-based awards to directors and employees of the Company. The 2023 SIP authorized the issuance of 250,000 shares, subject to an annual increase in available shares. As of March 31, 2023, no share-based awards have been issued under the 2023 SIP.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended March 31, 2023 2022 Net income (in thousands) $ 7,524 $ 9,126 Weighted average number of shares 7,426,638 7,424,059 Options effect of dilutive shares 77,835 27,799 Weighted average dilutive shares 7,504,473 7,451,858 Basic EPS $ 1.01 $ 1.23 Diluted EPS 1.00 1.23 Stock awards equivalent to zero and zero shares of Common Stock were not considered in computing diluted earnings per common share for March 31, 2023, and March 31, 2022, respectively, because they were antidilutive.

Nature of Business Activities_2

Nature of Business Activities and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Adoption of new accounting standards	Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023, on a prospective basis; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments ( “ASC 326” ) , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures
Allowance for credit losses and Accrued Interest Receivable	Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable
Fair Value Measurements	Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs

Nature of Business Activities_3

Nature of Business Activities and Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Schedule of Impact from Adoption of CECL	The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275

Securities (Tables)

Securities (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Debt Securities, Available-for-Sale	The carrying amount of AFS securities and their approximate fair values at March 31, 2023, and December 31, 2022, are summarized as follows (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,875 $ — $ 19,456 $ 178,419 Obligations of states and municipalities 547,896 44 79,578 468,362 Residential mortgage backed - agency 56,991 20 4,341 52,670 Residential mortgage backed - non-agency 349,123 12 27,985 321,150 Commercial mortgage backed - agency 59,409 58 1,635 57,832 Commercial mortgage backed - non-agency 190,542 97 7,414 183,225 Asset-backed 95,317 101 2,819 92,599 Other 9,500 — 972 8,528 $ 1,506,653 $ 332 $ 144,200 $ 1,362,785 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). March 31, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 59,546 $ 138,329 $ — $ 197,875 Obligations of states and municipalities 370 10,947 332,562 204,017 547,896 Residential mortgage backed - agency 42 33,446 23,503 — 56,991 Residential mortgage backed - non-agency 32,336 209,368 92,763 14,656 349,123 Commercial mortgage backed - agency 233 52,796 6,380 — 59,409 Commercial mortgage backed - non-agency 32,882 152,507 5,153 — 190,542 Asset-backed 2,296 51,621 41,400 — 95,317 Other — — 9,500 — 9,500 $ 68,159 $ 570,231 $ 649,590 $ 218,673 $ 1,506,653 March 31, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 55,500 $ 122,919 $ — $ 178,419 Obligations of states and municipalities 370 10,204 296,965 160,823 468,362 Residential mortgage backed - agency 42 32,561 20,067 — 52,670 Residential mortgage backed - non-agency 31,027 198,301 78,487 13,335 321,150 Commercial mortgage backed - agency 232 51,524 6,076 — 57,832 Commercial mortgage backed - non-agency 32,283 146,728 4,214 — 183,225 Asset-backed 2,238 49,966 40,395 — 92,599 Other — 8,528 — 8,528 $ 66,192 $ 544,784 $ 577,651 $ 174,158 $ 1,362,785
Schedule of Realized Gain (Loss)	The gross realized gains, realized losses, and proceeds from the sales of securities for the three months ended March 31, 2023, and March 31, 2022, were as follows (in thousands): March 31, 2023 March 31, 2022 Gross realized gains $ — $ 727 Gross realized losses — (623) Proceeds from sales of securities — 87,033
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value	AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): March 31, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 178,419 $ 19,456 $ 19,456 Obligations of states and municipalities 17,774 330 444,269 79,248 79,578 Residential mortgage backed - agency 616 10 42,382 4,331 4,341 Residential mortgage backed - non-agency 109,454 7,318 210,963 20,667 27,985 Commercial mortgage backed - agency 1,688 124 54,441 1,511 1,635 Commercial mortgage backed - non-agency 10,970 136 160,432 7,278 7,414 Asset-backed 21,586 187 61,972 2,632 2,819 Other 6,775 725 1,753 247 972 $ 168,863 $ 8,830 $ 1,154,631 $ 135,370 $ 144,200 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Loan balances at March 31, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): March 31, 2023 December 31, 2022 Commercial real estate $ 1,154,210 $ 1,109,315 Owner-occupied commercial real estate 125,657 127,114 Acquisition, construction & development 99,886 94,450 Commercial & industrial 50,101 53,514 Single family residential (1-4 units) 518,775 499,362 Consumer non-real estate and other 3,109 3,466 1,951,738 1,887,221 Allowance for credit losses (25,704) (21,039) Loans, net $ 1,926,034 $ 1,866,182

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	3 Months Ended
	Mar. 31, 2023
Credit Loss [Abstract]
Financing Receivable, Allowance for Credit Loss	The following table presents the activity in the ACL, including the impact of the adoption of CECL, for the three months ended March 31, 2023, and the activity for the allowance for loan losses for the three months ended March 31, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended March 31, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 218 (73) 410 25 (13) (44) — 523 Charge-offs — — — — — (17) — (17) Recoveries 28 — — — 3 3 — 34 Balance, end of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 March 31, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (2,321) 52 127 (32) (1,030) 15 551 (2,638) Charge-offs (21) — — (20) — (28) — (69) Recoveries 3 — — — 47 9 — 59 Balance, end of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061
Impaired Financing Receivables	The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The following tables present information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of March 31, 2023 (in thousands): Collateral Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance March 31, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,121 1,121 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 3,329 3,329 — Consumer non-real estate and other — — — — — Total $ — $ — $ 4,450 $ 4,450 $ —
Financing Receivable, Past Due	The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of March 31, 2023, and December 31, 2022, by portfolio segment (in thousands): March 31, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ 2,075 $ — $ 2,075 $ 1,152,135 $ 1,154,210 $ — $ — Owner-occupied commercial real estate — — — — 125,657 125,657 — 1,121 Acquisition, construction & development — — — — 99,886 99,886 — — Commercial & industrial — 31 — 31 50,070 50,101 — — Single family residential (1-4 units) 1,515 — 328 1,843 516,932 518,775 — 2,125 Consumer non-real estate and other — — — — 3,109 3,109 — — Total $ 1,515 $ 2,106 $ 328 $ 3,949 $ 1,947,789 $ 1,951,738 $ — $ 3,246 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497
Financing Receivable Credit Quality Indicators	The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of March 31, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 51,800 $ 282,900 $ 214,098 $ 15,998 $ 76,014 $ 403,273 $ 4,309 $ 1,048,392 Special Mention — — — 8,433 5,302 40,929 — 54,664 Substandard — 600 2,351 — 7,569 40,634 — 51,154 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 51,800 $ 283,500 $ 216,449 $ 24,431 $ 88,885 $ 484,836 $ 4,309 $ 1,154,210 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 823 $ 30,039 $ 9,857 $ 15,463 $ 13,686 $ 49,753 $ 2,385 $ 122,006 Special Mention — — — — — 1,947 — 1,947 Substandard — 293 — — — 1,411 — 1,704 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 823 $ 30,332 $ 9,857 $ 15,463 $ 13,686 $ 53,111 $ 2,385 $ 125,657 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 1,275 $ 28,498 $ 10,995 $ — $ 9,260 $ 1,398 $ 1,360 $ 52,786 Special Mention — — — — 807 22,093 — 22,900 Substandard — — — — — 24,200 — 24,200 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 1,275 $ 28,498 $ 10,995 $ — $ 10,067 $ 47,691 $ 1,360 $ 99,886 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family residential (1-4 units) Pass $ 32,061 $ 129,294 $ 62,952 $ 33,281 $ 42,540 $ 154,070 $ 62,451 $ 516,649 Special Mention — — — — — — — — Substandard — — — 263 — 1,863 — 2,126 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 32,061 $ 129,294 $ 62,952 $ 33,544 $ 42,540 $ 155,933 $ 62,451 $ 518,775 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Current period gross charge-offs $ — $ 17 $ — $ — $ — $ — $ — $ 17 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221

Deposits (Tables)

Deposits (Tables)	3 Months Ended
	Mar. 31, 2023
Financial Services, Banking and Thrift [Abstract]
Time Deposit Maturities	At March 31, 2023, the scheduled maturities of time deposits for the remaining nine months ending December 31, 2023 and the following five years were as follows (in thousands): As of March 31, 2023 Remaining nine months ending, December 31, 2023 $ 130,833 2024 114,613 2025 133,679 2026 82,141 2027 49,529 2028 77,386 $ 588,181

Advances and Other Borrowings (

Advances and Other Borrowings (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Short-Term Debt	The contractual maturities of this debt as of March 31, 2023, are as follows (in thousands): Due in 2023 $ 171,700 Due in 2024 150,000 $ 321,700

Leased Property (Tables)

Leased Property (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Lessor, Lease Income	The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43
Lessor, Operating Lease, Payment to be Received, Maturity	The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089
Assets And Liabilities, Lessee	Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337
Lease, Cost	The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —
Lessee, Operating Lease, Liability, Maturity	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705
Finance Lease, Liability, to be Paid, Maturity	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705

Regulatory Capital Matters (Tab

Regulatory Capital Matters (Tables)	3 Months Ended
	Mar. 31, 2023
Regulatory Capital Requirements under Banking Regulations [Abstract]
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations	The following table presents the actual and required capital amounts and ratios for the Company and the Bank at March 31, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of March 31, 2023 Total Capital to risk weighted assets Consolidated $ 439,563 18.65 % $ 247,459 ≥ 10.5% $ 235,675 ≥ 10.0% Burke & Herbert Bank & Trust 436,046 18.50 247,528 ≥ 10.5 235,741 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 413,592 17.55 200,324 ≥ 8.5 188,540 ≥ 8.0 Burke & Herbert Bank & Trust 410,075 17.40 200,380 ≥ 8.5 188,593 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 413,592 17.55 164,973 ≥ 7.0 153,189 ≥ 6.5 Burke & Herbert Bank & Trust 410,075 17.40 165,019 ≥ 7.0 153,232 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 413,592 11.19 147,859 ≥ 4.0 184,824 ≥ 5.0 Burke & Herbert Bank & Trust 410,075 11.09 147,913 ≥ 4.0 184,891 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0

Derivatives (Tables)

Derivatives (Tables)	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Fair Value Hedging Instruments	As of March 31, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Securities available-for-sale, at fair value (1) $ 302,362 $ — $ 2,362 $ — Total $ 302,362 $ — $ 2,362 $ — (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $302.4 million; the cumulative basis adjustments associated with these hedging relationships was $2.4 million; and the amounts of the designated hedged items were $300.0 million.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of March 31, 2023, and December 31, 2022 (in thousands): March 31, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,866 Interest rate swaps related to fair value hedges Other liabilities 300,000 2,283 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,439 $ 1,045 Interest rate swaps related to customer loans Other liabilities 34,439 1,045 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Interest rate swaps related to fair value hedges N/A — — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)	The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2023, and March 31, 2022, as follows (in thousands): Derivatives in Cash Flow March 31, 2023 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2023 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ 60 $ 60 $ — Interest Income $ (363) $ (363) $ — Total $ 60 $ 60 $ — $ (363) $ (363) $ — Derivatives in Cash Flow March 31, 2022 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2022 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (636) $ (636) $ — Interest Income $ 75 $ 75 $ — Total $ (636) $ (636) $ — $ 75 $ 75 $ —
Schedule of Derivative Instruments	The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of March 31, 2023, and March 31, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships March 31, 2023 March 31, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (203) $ — $ 75 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 2,362 — — — Derivatives designated as hedging instruments (2,202) — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — —

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Fair Value, off-Balance-Sheet Risks	A summary of the contractual amounts of the Company’s financial instruments outstanding at March 31, 2023, and December 31, 2022, is as follows (in thousands): March 31, 2023 December 31, 2022 Commitments to extend credit $ 277,463 $ 291,265 Commercial letters of credit 8,525 8,539

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 178,419 $ — $ — $ 178,419 Obligations of states and municipalities — 468,362 — 468,362 Residential mortgage backed - agency — 52,670 — 52,670 Residential mortgage backed - non-agency — 321,150 — 321,150 Commercial mortgage backed - agency — 57,832 — 57,832 Commercial mortgage backed - non-agency — 183,225 — 183,225 Asset-backed — 92,599 — 92,599 Other — 8,528 — 8,528 Total investment securities available-for-sale $ 178,419 $ 1,184,366 $ — $ 1,362,785 Loans held-for-sale, at fair value $ — $ 360 $ — $ 360 Derivatives $ — $ 1,045 $ — $ 1,045 Financial liabilities Derivatives $ — $ 5,194 $ — $ 5,194 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565
Fair Value Measurements, Nonrecurring	Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: : Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 318 $ 318 Owner-occupied commercial real estate — — 1,371 1,371 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,242 2,242 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — —
Fair Value Measurement Inputs and Valuation Techniques	The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at March 31, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average March 31, 2023 Impaired loans $ 3,931 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2%
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value	The carrying amounts and estimated fair values of financial instruments not carried at fair value, at March 31, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at March 31, 2023 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 10,616 $ 10,616 $ — $ — $ 10,616 Interest-bearing deposits with banks 106,323 106,323 — — 106,323 Loans, net 1,926,034 — — 1,813,068 1,813,068 Accrued interest 15,158 — 15,158 — 15,158 Financial liabilities Non-interest, bearing $ 906,723 $ — $ 906,723 $ — $ 906,723 Interest bearing 2,125,668 — 2,118,085 — 2,118,085 Other borrowed funds 321,700 — 321,667 — 321,667 Accrued interest 2,763 — 2,763 — 2,763 Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest, bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods ending March 31, 2023, and March 31, 2022 (in thousands): March 31, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) 47 17,218 — 17,265 Less: net realized (gains) losses reclassified to earnings 287 (1,866) — (1,579) Net change in pension plan benefits — — — — Ending Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) March 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (503) (63,808) — (64,311) Less: net realized (gains) losses reclassified to earnings (59) (82) — (141) Net change in pension plan benefits — — — — Ending Balance $ (562) $ (50,915) $ (6,020) $ (57,497)
Reclassification out of Accumulated Other Comprehensive Income	The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the periods ending March 31, 2023, and December 31, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income March 31, 2023 March 31, 2022 Cash flow hedges: Interest rate contracts $ (363) $ 75 Interest income Tax effect 76 (16) Income tax expense (benefit) Net of Tax $ (287) 59 Available-for-sale securities: Realized gains (losses) on securities $ — $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges 2,362 — Interest income Tax effect (496) (22) Income tax expense (benefit) Net of Tax $ 1,866 $ 82 Total reclassifications, net of tax $ 1,579 $ 141 Net income

Other Operating Expense (Tables

Other Operating Expense (Tables)	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Schedule of Other Operating Cost and Expense, by Component	Other operating expense from the Consolidated Statements of Income for the three months ended March 31, 2023, and March 31, 2022, is as follows (in thousands): Three months ended 2023 2022 FDIC assessment $ 734 $ 702 Historic tax credit amortization 632 632 IT related 491 412 Consultant fees 470 212 Network expense 429 394 Directors' fees 410 245 Audit expense 307 92 Legal expense 305 175 Virginia franchise tax 243 233 Marketing expense 219 317 Other 1,367 1,258 Total $ 5,607 $ 4,672

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	The following is a summary of the Company’s RSU awards: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (3,120) 50.47 Forfeited — — Nonvested at March 31, 2023 144,025 $ 51.34

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended March 31, 2023 2022 Net income (in thousands) $ 7,524 $ 9,126 Weighted average number of shares 7,426,638 7,424,059 Options effect of dilutive shares 77,835 27,799 Weighted average dilutive shares 7,504,473 7,451,858 Basic EPS $ 1.01 $ 1.23 Diluted EPS 1.00 1.23

Nature of Business Activities_4

Nature of Business Activities and Significant Accounting Policies - Narrative (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) branch		Dec. 31, 2022 USD ($)		Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of branches | branch	20
Accounting standards update			Accounting Standards Update 2016-13 [Member]
Allowance for credit losses	$ 25,704,000	[1]	$ 21,039,000	[1]	$ 29,061,000	$ 31,709,000
Credit loss liability expense (reversal)	267,300
Decrease in retained earnings, net of deferred taxes	(424,532,000)		(424,391,000)
Accrued interest receivable on loans	7,500,000
Accrued interest receivable on available-for-sale debt securities	$ 7,900,000
Burke & Herbert Bank & Trust Company
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Subsidiary, ownership percentage, parent	100%
Impact of CECL Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses			4,125,000
Credit loss liability expense (reversal)			274,800
Decrease in retained earnings, net of deferred taxes			$ 3,400,000
[1]Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies

Nature of Business Activities_5

Nature of Business Activities and Significant Accounting Policies - Impact of Adoption of CECL (Details) - USD ($) $ in Thousands	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022	Dec. 31, 2021
Financial Assets:
Allowance for credit losses	$ 25,704	[1]	$ 21,039	[1]	$ 29,061	$ 31,709
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure			0
Reserves under CECL Model
Financial Assets:
Allowance for credit losses			25,164
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure			275
Impact of CECL Adoption
Financial Assets:
Allowance for credit losses			4,125
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure			275
Commercial real estate
Financial Assets:
Allowance for credit losses	18,409		15,477		22,773	25,112
Commercial real estate | Reserves under CECL Model
Financial Assets:
Allowance for credit losses			18,163
Commercial real estate | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses			2,686
Owner-occupied commercial real estate
Financial Assets:
Allowance for credit losses	556		635		663	611
Owner-occupied commercial real estate | Reserves under CECL Model
Financial Assets:
Allowance for credit losses			629
Owner-occupied commercial real estate | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses			(6)
Acquisition, construction & development
Financial Assets:
Allowance for credit losses	1,852		2,082		2,316	2,189
Acquisition, construction & development | Reserves under CECL Model
Financial Assets:
Allowance for credit losses			1,442
Acquisition, construction & development | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses			(640)
Commercial & industrial
Financial Assets:
Allowance for credit losses	700		438		113	165
Commercial & industrial | Reserves under CECL Model
Financial Assets:
Allowance for credit losses			675
Commercial & industrial | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses			237
Single family residential (1-4 units)
Financial Assets:
Allowance for credit losses	4,030		2,379		1,451	2,434
Single family residential (1-4 units) | Reserves under CECL Model
Financial Assets:
Allowance for credit losses			4,040
Single family residential (1-4 units) | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses			1,661
Consumer non-real estate and other
Financial Assets:
Allowance for credit losses	157		28		14	18
Consumer non-real estate and other | Reserves under CECL Model
Financial Assets:
Allowance for credit losses			215
Consumer non-real estate and other | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses			187
Unallocated reserve
Financial Assets:
Allowance for credit losses	$ 0		0		$ 1,731	$ 1,180
Unallocated reserve | Reserves under CECL Model
Financial Assets:
Allowance for credit losses			0
Unallocated reserve | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses			$ 0
[1]Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies

Securities - Debt Securities, A

Securities - Debt Securities, Available-for-Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 1,506,653	$ 1,537,420
Gross Unrealized Gains	332	162
Gross Unrealized Losses	144,200	165,825
Fair Value	1,362,785	1,371,757
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	197,875	198,154
Gross Unrealized Gains	0	0
Gross Unrealized Losses	19,456	23,161
Fair Value	178,419	174,993
Obligations of states and municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	547,896	550,590
Gross Unrealized Gains	44	12
Gross Unrealized Losses	79,578	96,695
Fair Value	468,362	453,907
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	56,991	57,883
Gross Unrealized Gains	20	14
Gross Unrealized Losses	4,341	4,836
Fair Value	52,670	53,061
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	349,123	365,983
Gross Unrealized Gains	12	2
Gross Unrealized Losses	27,985	26,690
Fair Value	321,150	339,295
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	59,409	61,810
Gross Unrealized Gains	58	75
Gross Unrealized Losses	1,635	1,952
Fair Value	57,832	59,933
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	190,542	191,709
Gross Unrealized Gains	97	10
Gross Unrealized Losses	7,414	8,420
Fair Value	183,225	183,299
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	95,317	101,791
Gross Unrealized Gains	101	49
Gross Unrealized Losses	2,819	3,214
Fair Value	92,599	98,626
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	9,500	9,500
Gross Unrealized Gains	0	0
Gross Unrealized Losses	972	857
Fair Value	$ 8,528	$ 8,643

Securities - Narrative (Details

Securities - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) security	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 1,506,653,000		$ 1,537,420,000
Fair Value	1,362,785,000		1,371,757,000
Realized tax expense (benefit) gain (loss)	$ 0	$ (21,800)
Securities unrealized loss | security	451
Restricted stock, at cost	$ 9,129,000		16,443,000
Asset Pledged as Collateral
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	799,300,000		637,100,000
Fair Value	714,500,000		552,500,000
Community Bankers' Bank
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Restricted stock, at cost	50,000		50,000
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	197,875,000		198,154,000
Fair Value	$ 178,419,000		174,993,000
Securities in unrealized loss positions | security	12
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 56,991,000		57,883,000
Fair Value	$ 52,670,000		53,061,000
Securities in unrealized loss positions | security	19
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities in unrealized loss positions | security	31
State and Municipal Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities in unrealized loss positions | security	214
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 349,123,000		365,983,000
Fair Value	$ 321,150,000		339,295,000
Securities in unrealized loss positions | security	108
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 190,542,000		191,709,000
Fair Value	$ 183,225,000		183,299,000
Securities in unrealized loss positions | security	36
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 95,317,000		101,791,000
Fair Value	$ 92,599,000		98,626,000
Securities in unrealized loss positions | security	28
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 9,500,000		9,500,000
Fair Value	$ 8,528,000		$ 8,643,000
Securities in unrealized loss positions | security	3

Securities - Schedule of Realiz

Securities - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Gross realized gains	$ 0	$ 727
Gross realized losses	0	(623)
Proceeds from sales of securities	$ 0	$ 87,033

Securities - Expected Maturity

Securities - Expected Maturity for Debt Securities, Available-for-Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Amortized Cost
One Year or Less	$ 68,159
One to Five Years	570,231
Five to Ten Years	649,590
After Ten Years	218,673
Amortized Cost	1,506,653	$ 1,537,420
Fair Value
One Year or Less	66,192
One to Five Years	544,784
Five to Ten Years	577,651
After Ten Years	174,158
Fair Value	1,362,785	1,371,757
U.S. Treasuries and government agencies
Amortized Cost
One Year or Less	0
One to Five Years	59,546
Five to Ten Years	138,329
After Ten Years	0
Amortized Cost	197,875	198,154
Fair Value
One Year or Less	0
One to Five Years	55,500
Five to Ten Years	122,919
After Ten Years	0
Fair Value	178,419	174,993
Obligations of states and municipalities
Amortized Cost
One Year or Less	370
One to Five Years	10,947
Five to Ten Years	332,562
After Ten Years	204,017
Amortized Cost	547,896
Fair Value
One Year or Less	370
One to Five Years	10,204
Five to Ten Years	296,965
After Ten Years	160,823
Fair Value	468,362
Residential mortgage backed - agency
Amortized Cost
One Year or Less	42
One to Five Years	33,446
Five to Ten Years	23,503
After Ten Years	0
Amortized Cost	56,991	57,883
Fair Value
One Year or Less	42
One to Five Years	32,561
Five to Ten Years	20,067
After Ten Years	0
Fair Value	52,670	53,061
Residential mortgage backed - non-agency
Amortized Cost
One Year or Less	32,336
One to Five Years	209,368
Five to Ten Years	92,763
After Ten Years	14,656
Amortized Cost	349,123	365,983
Fair Value
One Year or Less	31,027
One to Five Years	198,301
Five to Ten Years	78,487
After Ten Years	13,335
Fair Value	321,150	339,295
Commercial mortgage backed - agency
Amortized Cost
One Year or Less	233
One to Five Years	52,796
Five to Ten Years	6,380
After Ten Years	0
Amortized Cost	59,409	61,810
Fair Value
One Year or Less	232
One to Five Years	51,524
Five to Ten Years	6,076
After Ten Years	0
Fair Value	57,832	59,933
Commercial mortgage backed - non-agency
Amortized Cost
One Year or Less	32,882
One to Five Years	152,507
Five to Ten Years	5,153
After Ten Years	0
Amortized Cost	190,542	191,709
Fair Value
One Year or Less	32,283
One to Five Years	146,728
Five to Ten Years	4,214
After Ten Years	0
Fair Value	183,225	183,299
Asset-backed
Amortized Cost
One Year or Less	2,296
One to Five Years	51,621
Five to Ten Years	41,400
After Ten Years	0
Amortized Cost	95,317	101,791
Fair Value
One Year or Less	2,238
One to Five Years	49,966
Five to Ten Years	40,395
After Ten Years	0
Fair Value	92,599	98,626
Other
Amortized Cost
One Year or Less	0
One to Five Years	0
Five to Ten Years	9,500
After Ten Years	0
Amortized Cost	9,500	9,500
Fair Value
One Year or Less	0
One to Five Years
Five to Ten Years	8,528
After Ten Years	0
Fair Value	$ 8,528	$ 8,643

Securities - Debt Securities,_2

Securities - Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	$ 168,863	$ 586,464
AFS, Less than 12 months, Gross Unrealized Losses	8,830	33,528
AFS, 12 months or longer, Fair Value	1,154,631	752,987
AFS, 12 months or longer, Gross Unrealized Losses	135,370	132,297
AFS, Total Gross Unrealized Losses	144,200	165,825
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	0	28,399
AFS, Less than 12 months, Gross Unrealized Losses	0	1,131
AFS, 12 months or longer, Fair Value	178,419	146,594
AFS, 12 months or longer, Gross Unrealized Losses	19,456	22,030
AFS, Total Gross Unrealized Losses	19,456	23,161
Obligations of states and municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	17,774	128,373
AFS, Less than 12 months, Gross Unrealized Losses	330	12,378
AFS, 12 months or longer, Fair Value	444,269	320,287
AFS, 12 months or longer, Gross Unrealized Losses	79,248	84,317
AFS, Total Gross Unrealized Losses	79,578	96,695
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	616	7,258
AFS, Less than 12 months, Gross Unrealized Losses	10	26
AFS, 12 months or longer, Fair Value	42,382	41,975
AFS, 12 months or longer, Gross Unrealized Losses	4,331	4,810
AFS, Total Gross Unrealized Losses	4,341	4,836
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	109,454	204,866
AFS, Less than 12 months, Gross Unrealized Losses	7,318	11,822
AFS, 12 months or longer, Fair Value	210,963	134,056
AFS, 12 months or longer, Gross Unrealized Losses	20,667	14,868
AFS, Total Gross Unrealized Losses	27,985	26,690
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	1,688	23,026
AFS, Less than 12 months, Gross Unrealized Losses	124	562
AFS, 12 months or longer, Fair Value	54,441	34,847
AFS, 12 months or longer, Gross Unrealized Losses	1,511	1,390
AFS, Total Gross Unrealized Losses	1,635	1,952
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	10,970	144,193
AFS, Less than 12 months, Gross Unrealized Losses	136	6,171
AFS, 12 months or longer, Fair Value	160,432	23,374
AFS, 12 months or longer, Gross Unrealized Losses	7,278	2,249
AFS, Total Gross Unrealized Losses	7,414	8,420
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	21,586	43,472
AFS, Less than 12 months, Gross Unrealized Losses	187	815
AFS, 12 months or longer, Fair Value	61,972	50,088
AFS, 12 months or longer, Gross Unrealized Losses	2,632	2,399
AFS, Total Gross Unrealized Losses	2,819	3,214
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	6,775	6,877
AFS, Less than 12 months, Gross Unrealized Losses	725	623
AFS, 12 months or longer, Fair Value	1,753	1,766
AFS, 12 months or longer, Gross Unrealized Losses	247	234
AFS, Total Gross Unrealized Losses	$ 972	$ 857

Loans - Schedule of Accounts, N

Loans - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 1,951,738		$ 1,887,221
Allowance for credit losses	(25,704)	[1]	(21,039)	[1]	$ (29,061)	$ (31,709)
Loans, net	1,926,034		1,866,182
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,154,210		1,109,315
Allowance for credit losses	(18,409)		(15,477)		(22,773)	(25,112)
Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	125,657		127,114
Allowance for credit losses	(556)		(635)		(663)	(611)
Acquisition, construction & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	99,886		94,450
Allowance for credit losses	(1,852)		(2,082)		(2,316)	(2,189)
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	50,101		53,514
Allowance for credit losses	(700)		(438)		(113)	(165)
Single family residential (1-4 units)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	518,775		499,362
Allowance for credit losses	(4,030)		(2,379)		(1,451)	(2,434)
Consumer non-real estate and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	3,109		3,466
Allowance for credit losses	$ (157)		$ (28)		$ (14)	$ (18)
[1]Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies

Loans - Narrative (Details)

Loans - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized loan fee	$ 3,300	$ 3,300
Loans, net	1,926,034	1,866,182
Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	$ 6,400	$ 7,900

Allowance for Credit Losses - A

Allowance for Credit Losses - Activity in the Allowance for Loan Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023		Mar. 31, 2022
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 21,039	[1]	$ 31,709
Provision for (recapture of) credit losses, including unfunded amount	523
Provision for (recapture of) credit losses	515		(2,638)
Charge-offs	(17)		(69)
Recoveries	34		59
Balance, end of period	25,704	[1]	29,061
Commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	15,477		25,112
Provision for (recapture of) credit losses, including unfunded amount	218
Provision for (recapture of) credit losses			(2,321)
Charge-offs	0		(21)
Recoveries	28		3
Balance, end of period	18,409		22,773
Owner-occupied commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	635		611
Provision for (recapture of) credit losses, including unfunded amount	(73)
Provision for (recapture of) credit losses			52
Charge-offs	0		0
Recoveries	0		0
Balance, end of period	556		663
Acquisition, construction & development
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	2,082		2,189
Provision for (recapture of) credit losses, including unfunded amount	410
Provision for (recapture of) credit losses			127
Charge-offs	0		0
Recoveries	0		0
Balance, end of period	1,852		2,316
Commercial & industrial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	438		165
Provision for (recapture of) credit losses, including unfunded amount	25
Provision for (recapture of) credit losses			(32)
Charge-offs	0		(20)
Recoveries	0		0
Balance, end of period	700		113
Single family residential (1-4 units)
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	2,379		2,434
Provision for (recapture of) credit losses, including unfunded amount	(13)
Provision for (recapture of) credit losses			(1,030)
Charge-offs	0		0
Recoveries	3		47
Balance, end of period	4,030		1,451
Consumer non-real estate and other
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	28		18
Provision for (recapture of) credit losses, including unfunded amount	(44)
Provision for (recapture of) credit losses			15
Charge-offs	(17)		(28)
Recoveries	3		9
Balance, end of period	157		14
Unallocated reserve
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	0		1,180
Provision for (recapture of) credit losses, including unfunded amount	0
Provision for (recapture of) credit losses			551
Charge-offs	0		0
Recoveries	0		0
Balance, end of period	0		$ 1,731
Impact of CECL Adoption
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	4,125
Impact of CECL Adoption | Commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	2,686
Impact of CECL Adoption | Owner-occupied commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	(6)
Impact of CECL Adoption | Acquisition, construction & development
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	(640)
Impact of CECL Adoption | Commercial & industrial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	237
Impact of CECL Adoption | Single family residential (1-4 units)
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	1,661
Impact of CECL Adoption | Consumer non-real estate and other
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	187
Impact of CECL Adoption | Unallocated reserve
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 0
[1]Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies

Allowance for Credit Losses -_2

Allowance for Credit Losses - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022	Dec. 31, 2021
Allowance for loan losses
Individually evaluated for impairment			$ 239
Collectively evaluated for impairment			20,800
Total ending allowance balance	$ 25,704	[1]	21,039	[1]	$ 29,061	$ 31,709
Loan balance:
Individually evaluated for impairment			9,069
Collectively evaluated for impairment			1,878,152
Total ending loan balance	1,951,738		1,887,221
Commercial real estate
Allowance for loan losses
Individually evaluated for impairment			41
Collectively evaluated for impairment			15,436
Total ending allowance balance	18,409		15,477		22,773	25,112
Loan balance:
Individually evaluated for impairment			331
Collectively evaluated for impairment			1,108,984
Total ending loan balance	1,154,210		1,109,315
Owner-occupied commercial real estate
Allowance for loan losses
Individually evaluated for impairment			102
Collectively evaluated for impairment			533
Total ending allowance balance	556		635		663	611
Loan balance:
Individually evaluated for impairment			2,580
Collectively evaluated for impairment			124,534
Total ending loan balance	125,657		127,114
Acquisition, construction & development
Allowance for loan losses
Individually evaluated for impairment			0
Collectively evaluated for impairment			2,082
Total ending allowance balance	1,852		2,082		2,316	2,189
Loan balance:
Individually evaluated for impairment			0
Collectively evaluated for impairment			94,450
Total ending loan balance	99,886		94,450
Commercial & industrial
Allowance for loan losses
Individually evaluated for impairment			0
Collectively evaluated for impairment			438
Total ending allowance balance	700		438		113	165
Loan balance:
Individually evaluated for impairment			0
Collectively evaluated for impairment			53,514
Total ending loan balance	50,101		53,514
Single family residential (1-4 units)
Allowance for loan losses
Individually evaluated for impairment			96
Collectively evaluated for impairment			2,283
Total ending allowance balance	4,030		2,379		1,451	2,434
Loan balance:
Individually evaluated for impairment			6,158
Collectively evaluated for impairment			493,204
Total ending loan balance	518,775		499,362
Consumer non-real estate and other
Allowance for loan losses
Individually evaluated for impairment			0
Collectively evaluated for impairment			28
Total ending allowance balance	157		28		14	18
Loan balance:
Individually evaluated for impairment			0
Collectively evaluated for impairment			3,466
Total ending loan balance	3,109		3,466
Unallocated reserve
Allowance for loan losses
Individually evaluated for impairment			0
Collectively evaluated for impairment			0
Total ending allowance balance	$ 0		0		$ 1,731	$ 1,180
Loan balance:
Individually evaluated for impairment			0
Collectively evaluated for impairment			0
Total ending loan balance			$ 0
[1]Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies

Allowance for Credit Losses - I

Allowance for Credit Losses - Impaired Loans by Portfolio Segment (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
With no related allowance recorded:
Recorded Investment	$ 6,335
Unpaid Principal Balance	6,970
Average Recorded Investment	6,422
Interest Income Recognized	310
With an allowance recorded:
Recorded Investment	2,735
Unpaid Principal Balance	2,869
Related Allowance	239
Average Recorded Investment	2,803
Interest Income Recognized	154
Commercial real estate
With no related allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Average Recorded Investment	0
Interest Income Recognized	0
With an allowance recorded:
Recorded Investment	331
Unpaid Principal Balance	331
Related Allowance	41
Average Recorded Investment	350
Interest Income Recognized	23
Owner-occupied commercial real estate
With no related allowance recorded:
Recorded Investment	1,184
Unpaid Principal Balance	1,394
Average Recorded Investment	1,291
Interest Income Recognized	97
With an allowance recorded:
Recorded Investment	1,397
Unpaid Principal Balance	1,397
Related Allowance	102
Average Recorded Investment	1,420
Interest Income Recognized	74
Acquisition, construction & development
With no related allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Average Recorded Investment	0
Interest Income Recognized	0
With an allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Commercial & industrial
With no related allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Average Recorded Investment	0
Interest Income Recognized	0
With an allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Single family residential (1-4 units)
With no related allowance recorded:
Recorded Investment	5,151
Unpaid Principal Balance	5,576
Average Recorded Investment	5,131
Interest Income Recognized	213
With an allowance recorded:
Recorded Investment	1,007
Unpaid Principal Balance	1,141
Related Allowance	96
Average Recorded Investment	1,033
Interest Income Recognized	57
Consumer non-real estate and other
With no related allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Average Recorded Investment	0
Interest Income Recognized	0
With an allowance recorded:
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	$ 0

Allowance for Credit Losses -_3

Allowance for Credit Losses - Aging and Non-Accrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 1,951,738	$ 1,887,221
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	3,246	5,497
Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	3,949	2,107
30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,515	1,403
60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	2,106	158
90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	328	546
Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,947,789	1,885,114
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,154,210	1,109,315
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	0	0
Commercial real estate | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	2,075	0
Commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	2,075	0
Commercial real estate | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Commercial real estate | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,152,135	1,109,315
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	125,657	127,114
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	1,121	1,184
Owner-occupied commercial real estate | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Owner-occupied commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Owner-occupied commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Owner-occupied commercial real estate | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Owner-occupied commercial real estate | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	125,657	127,114
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	99,886	94,450
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	0	0
Acquisition, construction & development | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Acquisition, construction & development | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Acquisition, construction & development | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Acquisition, construction & development | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Acquisition, construction & development | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	99,886	94,450
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	50,101	53,514
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	0	0
Commercial & industrial | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	31	0
Commercial & industrial | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Commercial & industrial | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	31	0
Commercial & industrial | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Commercial & industrial | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	50,070	53,514
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	518,775	499,362
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	2,125	4,313
Single family residential (1-4 units) | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,843	2,103
Single family residential (1-4 units) | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,515	1,403
Single family residential (1-4 units) | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	154
Single family residential (1-4 units) | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	328	546
Single family residential (1-4 units) | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	516,932	497,259
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	3,109	3,466
90 Days Past Due & Still Accruing	0	0
Non-accrual loans	0	0
Consumer non-real estate and other | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	4
Consumer non-real estate and other | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Consumer non-real estate and other | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	4
Consumer non-real estate and other | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Consumer non-real estate and other | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 3,109	$ 3,462

Allowance for Credit Losses - L

Allowance for Credit Losses - Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 1,951,738		$ 1,887,221
Current period gross charge-offs
Total	17	$ 69
Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Total			1,752,599
Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Total			65,761
Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Total			68,861
Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Total			0
Unlikely to be Collected Financing Receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Total			0
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	51,800
2022	283,500
2021	216,449
2020	24,431
2019	88,885
Prior	484,836
Revolving Loans	4,309
Total	1,154,210		1,109,315
Current period gross charge-offs
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	21
Commercial real estate | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	51,800
2022	282,900
2021	214,098
2020	15,998
2019	76,014
Prior	403,273
Revolving Loans	4,309
Total	1,048,392		1,011,025
Commercial real estate | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	8,433
2019	5,302
Prior	40,929
Revolving Loans	0
Total	54,664		62,907
Commercial real estate | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	600
2021	2,351
2020	0
2019	7,569
Prior	40,634
Revolving Loans	0
Total	51,154		35,383
Commercial real estate | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Commercial real estate | Unlikely to be Collected Financing Receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	823
2022	30,332
2021	9,857
2020	15,463
2019	13,686
Prior	53,111
Revolving Loans	2,385
Total	125,657		127,114
Current period gross charge-offs
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Owner-occupied commercial real estate | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	823
2022	30,039
2021	9,857
2020	15,463
2019	13,686
Prior	49,753
Revolving Loans	2,385
Total	122,006		121,621
Owner-occupied commercial real estate | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	1,947
Revolving Loans	0
Total	1,947		1,963
Owner-occupied commercial real estate | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	293
2021	0
2020	0
2019	0
Prior	1,411
Revolving Loans	0
Total	1,704		3,530
Owner-occupied commercial real estate | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Owner-occupied commercial real estate | Unlikely to be Collected Financing Receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	1,275
2022	28,498
2021	10,995
2020	0
2019	10,067
Prior	47,691
Revolving Loans	1,360
Total	99,886		94,450
Current period gross charge-offs
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Acquisition, construction & development | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	1,275
2022	28,498
2021	10,995
2020	0
2019	9,260
Prior	1,398
Revolving Loans	1,360
Total	52,786		68,220
Acquisition, construction & development | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	807
Prior	22,093
Revolving Loans	0
Total	22,900		836
Acquisition, construction & development | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	24,200
Revolving Loans	0
Total	24,200		25,394
Acquisition, construction & development | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Acquisition, construction & development | Unlikely to be Collected Financing Receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	7,877
2022	18,402
2021	8,943
2020	603
2019	55
Prior	1,769
Revolving Loans	12,452
Total	50,101		53,514
Current period gross charge-offs
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	20
Commercial & industrial | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	7,877
2022	18,402
2021	8,943
2020	603
2019	55
Prior	1,769
Revolving Loans	12,452
Total	50,101		53,273
Commercial & industrial | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Commercial & industrial | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		241
Commercial & industrial | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Commercial & industrial | Unlikely to be Collected Financing Receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	32,061
2022	129,294
2021	62,952
2020	33,544
2019	42,540
Prior	155,933
Revolving Loans	62,451
Total	518,775		499,362
Current period gross charge-offs
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Single family residential (1-4 units) | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	32,061
2022	129,294
2021	62,952
2020	33,281
2019	42,540
Prior	154,070
Revolving Loans	62,451
Total	516,649		494,994
Single family residential (1-4 units) | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		55
Single family residential (1-4 units) | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	263
2019	0
Prior	1,863
Revolving Loans	0
Total	2,126		4,313
Single family residential (1-4 units) | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Single family residential (1-4 units) | Unlikely to be Collected Financing Receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	376
2022	310
2021	183
2020	322
2019	460
Prior	423
Revolving Loans	1,035
Total	3,109		3,466
Current period gross charge-offs
2023	0
2022	17
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	17	$ 28
Consumer non-real estate and other | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	376
2022	310
2021	183
2020	322
2019	460
Prior	423
Revolving Loans	1,035
Total	3,109		3,466
Consumer non-real estate and other | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Consumer non-real estate and other | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Consumer non-real estate and other | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0		0
Consumer non-real estate and other | Unlikely to be Collected Financing Receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	$ 0		$ 0

Allowance for Credit Losses - C

Allowance for Credit Losses - Collateral Dependent Loans Individually Evaluated (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance		$ 2,735
Related Allowance		239
Amortized Cost, With No Related Allowance		6,335
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance		331
Related Allowance		41
Amortized Cost, With No Related Allowance		0
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance		1,397
Related Allowance		102
Amortized Cost, With No Related Allowance		1,184
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance		0
Related Allowance		0
Amortized Cost, With No Related Allowance		0
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance		0
Related Allowance		0
Amortized Cost, With No Related Allowance		0
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance		1,007
Related Allowance		96
Amortized Cost, With No Related Allowance		5,151
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance		0
Related Allowance		0
Amortized Cost, With No Related Allowance		$ 0
Collateral Dependent Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	$ 0
Related Allowance	0
Amortized Cost, With No Related Allowance	4,450
Amortized Cost	4,450
Collateral Dependent Loans | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0
Related Allowance	0
Amortized Cost, With No Related Allowance	0
Amortized Cost	0
Collateral Dependent Loans | Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0
Related Allowance	0
Amortized Cost, With No Related Allowance	1,121
Amortized Cost	1,121
Collateral Dependent Loans | Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0
Related Allowance	0
Amortized Cost, With No Related Allowance	0
Amortized Cost	0
Collateral Dependent Loans | Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0
Related Allowance	0
Amortized Cost, With No Related Allowance	0
Amortized Cost	0
Collateral Dependent Loans | Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0
Related Allowance	0
Amortized Cost, With No Related Allowance	3,329
Amortized Cost	3,329
Collateral Dependent Loans | Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0
Related Allowance	0
Amortized Cost, With No Related Allowance	0
Amortized Cost	$ 0

Deposits - Narrative (Details)

Deposits - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
Time deposits, at or above FDIC insurance limit	$ 35,700	$ 32,600
Brokered time deposits	389,200	100,300
Interest bearing deposit, certificates of deposits	13,100	11,700
Time deposits, individual retirement account	35,200	36,900
Deposit liabilities reclassified as loans receivable	$ 277	$ 503

Deposits - Time Deposit Maturit

Deposits - Time Deposit Maturities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Financial Services, Banking and Thrift [Abstract]
Remaining nine months ending, December 31, 2023	$ 130,833
2024	114,613
2025	133,679
2026	82,141
2027	49,529
2028	77,386
Total time deposits	$ 588,181

Advances and Other Borrowings -

Advances and Other Borrowings - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Borrowed funds	$ 321,700	$ 343,100
Oustanding amount for short-term debt	358,100	269,500
Unused funds for short-term debt	809,100
Securities and loans pledged	$ 620,700	$ 698,100
Minimum
Short-Term Debt [Line Items]
Interest rate for short-term debt	4.38%	4.13%
Maximum
Short-Term Debt [Line Items]
Interest rate for short-term debt	4.88%	4.57%

Advances and Other Borrowings_2

Advances and Other Borrowings -Schedule of Short-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Advance from Federal Home Loan Bank, Fiscal Year Maturity [Abstract]
Borrowed funds	$ 321,700	$ 343,100
Short-Term Debt
Advance from Federal Home Loan Bank, Fiscal Year Maturity [Abstract]
Due in 2023	171,700
Due in 2024	150,000
Borrowed funds	$ 321,700

Leased Property - Narrative (De

Leased Property - Narrative (Details)	3 Months Ended
	Mar. 31, 2023
Minimum
Lessor, Lease, Description [Line Items]
Operating lease term	2 years
Lease term of contract	1 year
Maximum
Lessor, Lease, Description [Line Items]
Operating lease term	12 years
Lease term of contract	13 years

Leased Property - Lessor, Lease

Leased Property - Lessor, Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease income	$ 575	$ 43
Total lease income	$ 575	$ 43

Leased Property - Lessor, Opera

Leased Property - Lessor, Operating Lease, Payment to be Received, Maturity (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Remaining nine months ending December 31, 2023	$ 1,726
2024	2,302
2025	2,265
2026	1,657
2027	1,356
Thereafter	3,783
Total undiscounted lease payments	$ 13,089

Leased Property - Assets And Li

Leased Property - Assets And Liabilities, Lessee (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Right-of-use assets:
Operating leases	$ 6,474	$ 7,255
Finance leases	2,569	2,620
Total right-of-use assets	9,043	9,875
Lease liabilities:
Operating leases	6,782	7,592
Finance Leases	2,705	2,745
Total lease liabilities	$ 9,487	$ 10,337

Leased Property - Lease, Cost (

Leased Property - Lease, Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Finance lease cost
Right-of-use asset amortization	$ 51	$ 51
Interest expense	15	16
Operating lease cost	839	594
Total lease cost	$ 905	$ 661

Leased Property - Lessee, Opera

Leased Property - Lessee, Operating Lease and Financing Lease, Payment to be Received, Fiscal Year Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating Leases
Remaining nine months ending December 31, 2023	$ 2,606
2024	2,294
2025	839
2026	415
2027	366
Thereafter	625
Total lease receivables	7,145
Less: Discount	(363)
Operating leases	6,782	$ 7,592
Finance Leases
Remaining nine months ending December 31, 2023	165
2024	224
2025	228
2026	233
2027	238
Thereafter	2,033
Total undiscounted lease payments	3,121
Less: Discount	(416)
Finance Leases	$ 2,705	$ 2,745

Leased Property - Additional In

Leased Property - Additional Information on Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Leases [Abstract]
Finance lease weighted average remaining lease term (years)	12 years 6 months 3 days		12 years 9 months 3 days
Finance lease weighted average discount rate	2.22%		2.22%
Operating lease weighted average remaining lease term (years)	3 years 1 month 24 days		3 years 3 months 3 days
Operating lease weighted average discount rate	3.16%		3.19%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 868	$ 569
Operating cash flows from finance leases	15	16
Financing cash flows from finance leases	39	38
Right-of-use assets obtained in exchange for new finance lease liabilities	0	0
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0	$ 0

Regulatory Capital Matters - Sc

Regulatory Capital Matters - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) $ in Thousands	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Consolidated
Total Capital to risk weighted assets
Actual Amount	$ 439,563	$ 433,958
Actual Ratio	0.1865	0.1888
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 247,459	$ 241,325
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 235,675	$ 229,834
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.100	0.100
Tier 1 (Core) Capital to risk weighted assets
Actual Amount	$ 413,592	$ 412,946
Actual Ratio	0.1755	0.1797
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 200,324	$ 195,358
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 188,540	$ 186,867
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.080	0.080
Common Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 413,592	$ 412,946
Actual Ratio	0.1755	0.1797
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 164,973	$ 160,883
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.070	0.070
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 153,189	$ 149,392
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.065	0.065
Tier 1 (Core) Capital to average assets
Actual Amount	$ 413,592	$ 412,946
Actual Ratio	0.1119	0.1134
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 147,859	$ 145,605
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.040	0.040
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 184,824	$ 182,007
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.050	0.050
Burke & Herbert Bank & Trust
Total Capital to risk weighted assets
Actual Amount	$ 436,046	$ 432,290
Actual Ratio	0.1850	0.1881
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 247,528	$ 241,368
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 235,741	$ 229,874
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.100	0.100
Tier 1 (Core) Capital to risk weighted assets
Actual Amount	$ 410,075	$ 411,251
Actual Ratio	0.1740	0.1789
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 200,380	$ 195,393
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 188,593	$ 183,900
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.080	0.080
Common Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 410,075	$ 411,251
Actual Ratio	0.1740	0.1789
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 165,019	$ 160,912
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.070	0.070
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 153,232	$ 149,418
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.065	0.065
Tier 1 (Core) Capital to average assets
Actual Amount	$ 410,075	$ 411,251
Actual Ratio	0.1109	0.1130
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 147,913	$ 145,605
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.040	0.040
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 184,891	$ 182,007
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.050	0.050

Regulatory Capital Matters Narr

Regulatory Capital Matters Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Regulatory Capital Requirements under Banking Regulations [Abstract]
Retained earnings available to be declared as dividend	$ 188.5

Derivatives - Narrative (Detail

Derivatives - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash flow hedge gain (loss) to be reclassified within 12 months	$ 1,500,000
Fair value of interest rate swaps	0
Fair value of liabilites	$ 4,100,000

Derivatives - Schedule of Fair

Derivatives - Schedule of Fair Value Hedging Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Carrying Amount of the Hedged Assets/(Liabilities)	$ 302,362	$ 0
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	2,362	0
Securities available-for-sale, at fair value
Derivative [Line Items]
Carrying Amount of the Hedged Assets/(Liabilities)	302,362	0
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	2,362	$ 0
Closed portfolio, amortized cost	302,400
Closed portfolio, cumulative basis adjustment	2,400
Closed portfolio, hedged amount	$ 300,000

Derivatives Schedule of Derivat

Derivatives Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other liabilities | Derivatives designated as hedges: | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Notional Amount	$ 50,000	$ 50,000
Fair Value	1,866	2,254
Other liabilities | Derivatives designated as hedges: | Fair Value Hedging
Derivatives, Fair Value [Line Items]
Notional Amount	300,000	0
Fair Value	2,283	0
Other liabilities | Derivatives not designated as hedges:
Derivatives, Fair Value [Line Items]
Notional Amount	34,439	34,674
Fair Value	1,045	1,311
Other assets | Derivatives not designated as hedges:
Derivatives, Fair Value [Line Items]
Notional Amount	34,439	34,674
Fair Value	$ 1,045	$ 1,311

Derivatives - Schedule of Accum

Derivatives - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Recognized in OCI	$ 60	$ (636)
Amount of Gain or (Loss) Reclassified from AOCI into Income	(363)	75
Amount of Gain or (Loss)	0	0
Interest Rate Products
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Recognized in OCI	60	(636)
Amount of Gain or (Loss)	0	0
Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income	(363)	75
Amount of Gain or (Loss)	$ 0	$ 0

Derivatives - Schedule of Deriv

Derivatives - Schedule of Derivative Instruments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) reclassified from AOCI into income	$ (363,000)	$ 75,000
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	4,200	(74,500)
Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash low hedges are recorded - Interest Income	(203,000)	75,000
Interest Income | Interest Rate Products
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedged items	2,362,000	0
Derivatives designated as hedging instruments	(2,202,000)	0
Amount of gain or (loss) reclassified from AOCI into income	(363,000)	75,000
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), Adjustments, before Tax	0	0
Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash low hedges are recorded - Interest Income	0	0
Interest Expense | Interest Rate Products
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedged items	0	0
Derivatives designated as hedging instruments	0	0
Amount of gain or (loss) reclassified from AOCI into income	0	0
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), Adjustments, before Tax	$ 0	$ 0

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivatives, Fair Value [Line Items]
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	$ 4,200	$ (74,500)
Credit loss liability expense (reversal)	267,300
Interest Rate Lock Commitments
Derivatives, Fair Value [Line Items]
Derivative asset, notional amount	838,000	$ 1,400,000
Unfunded Loan Commitment
Derivatives, Fair Value [Line Items]
Credit loss liability expense (reversal)	$ (7,500)

Commitment and Contingencies -

Commitment and Contingencies - Schedule of Fair Value, off-Balance-Sheet Risks (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Commitments to extend credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount	$ 277,463	$ 291,265
Commercial letters of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount	$ 8,525	$ 8,539

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities, Recurring (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial assets
Fair Value	$ 1,362,785	$ 1,371,757
Recurring
Financial assets
Fair Value	1,362,785	1,371,757
Loans held-for-sale, at fair value	360	0
Derivatives	1,045	1,311
Financial liabilities
Derivatives	5,194	3,565
Level 1 | Recurring
Financial assets
Fair Value	178,419	174,993
Loans held-for-sale, at fair value	0	0
Derivatives	0	0
Financial liabilities
Derivatives	0	0
Level 2 | Recurring
Financial assets
Fair Value	1,184,366	1,196,764
Loans held-for-sale, at fair value	360	0
Derivatives	1,045	1,311
Financial liabilities
Derivatives	5,194	3,565
Level 3 | Recurring
Financial assets
Fair Value	0	0
Loans held-for-sale, at fair value	0	0
Derivatives	0	0
Financial liabilities
Derivatives	0	0
U.S. Treasuries and government agencies
Financial assets
Fair Value	178,419	174,993
U.S. Treasuries and government agencies | Recurring
Financial assets
Fair Value	178,419	174,993
U.S. Treasuries and government agencies | Level 1 | Recurring
Financial assets
Fair Value	178,419	174,993
U.S. Treasuries and government agencies | Level 2 | Recurring
Financial assets
Fair Value	0	0
U.S. Treasuries and government agencies | Level 3 | Recurring
Financial assets
Fair Value	0	0
Obligations of states and municipalities
Financial assets
Fair Value	468,362	453,907
Obligations of states and municipalities | Recurring
Financial assets
Fair Value	468,362	453,907
Obligations of states and municipalities | Level 1 | Recurring
Financial assets
Fair Value	0	0
Obligations of states and municipalities | Level 2 | Recurring
Financial assets
Fair Value	468,362	453,907
Obligations of states and municipalities | Level 3 | Recurring
Financial assets
Fair Value	0	0
Residential mortgage backed - agency
Financial assets
Fair Value	52,670	53,061
Residential mortgage backed - agency | Recurring
Financial assets
Fair Value	52,670	53,061
Residential mortgage backed - agency | Level 1 | Recurring
Financial assets
Fair Value	0	0
Residential mortgage backed - agency | Level 2 | Recurring
Financial assets
Fair Value	52,670	53,061
Residential mortgage backed - agency | Level 3 | Recurring
Financial assets
Fair Value	0	0
Residential mortgage backed - non-agency
Financial assets
Fair Value	321,150	339,295
Residential mortgage backed - non-agency | Recurring
Financial assets
Fair Value	321,150	339,295
Residential mortgage backed - non-agency | Level 1 | Recurring
Financial assets
Fair Value	0	0
Residential mortgage backed - non-agency | Level 2 | Recurring
Financial assets
Fair Value	321,150	339,295
Residential mortgage backed - non-agency | Level 3 | Recurring
Financial assets
Fair Value	0	0
Commercial mortgage backed - agency
Financial assets
Fair Value	57,832	59,933
Commercial mortgage backed - agency | Recurring
Financial assets
Fair Value	57,832	59,933
Commercial mortgage backed - agency | Level 1 | Recurring
Financial assets
Fair Value	0	0
Commercial mortgage backed - agency | Level 2 | Recurring
Financial assets
Fair Value	57,832	59,933
Commercial mortgage backed - agency | Level 3 | Recurring
Financial assets
Fair Value	0	0
Commercial mortgage backed - non-agency
Financial assets
Fair Value	183,225	183,299
Commercial mortgage backed - non-agency | Recurring
Financial assets
Fair Value	183,225	183,299
Commercial mortgage backed - non-agency | Level 1 | Recurring
Financial assets
Fair Value	0	0
Commercial mortgage backed - non-agency | Level 2 | Recurring
Financial assets
Fair Value	183,225	183,299
Commercial mortgage backed - non-agency | Level 3 | Recurring
Financial assets
Fair Value	0	0
Asset-backed
Financial assets
Fair Value	92,599	98,626
Asset-backed | Recurring
Financial assets
Fair Value	92,599	98,626
Asset-backed | Level 1 | Recurring
Financial assets
Fair Value	0	0
Asset-backed | Level 2 | Recurring
Financial assets
Fair Value	92,599	98,626
Asset-backed | Level 3 | Recurring
Financial assets
Fair Value	0	0
Other
Financial assets
Fair Value	8,528	8,643
Other | Recurring
Financial assets
Fair Value	8,528	8,643
Other | Level 1 | Recurring
Financial assets
Fair Value	0	0
Other | Level 2 | Recurring
Financial assets
Fair Value	8,528	8,643
Other | Level 3 | Recurring
Financial assets
Fair Value	$ 0	$ 0

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities, Nonrecurring (Details) - Nonrecurring - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 0	$ 0
Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	318	290
Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,371	1,295
Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Single family residential (1-4 units)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	2,242	911
Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0
Level 1 | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 1 | Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 1 | Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 1 | Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 1 | Single family residential (1-4 units)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 1 | Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0
Level 2 | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 2 | Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 2 | Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 2 | Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 2 | Single family residential (1-4 units)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 2 | Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0
Level 3 | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	318	290
Level 3 | Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,371	1,295
Level 3 | Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 3 | Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Level 3 | Single family residential (1-4 units)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	2,242	911
Level 3 | Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 0	$ 0

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurement Inputs and Valuation Techniques (Details) - Level 3 - Nonrecurring - Discounted cash flow analysis $ in Thousands	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 3,931	$ 2,496
Minimum | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.036	0.045
Maximum | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.085	0.060
Weighted Average | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.050	0.052

Fair Value Measurements - Fai_2

Fair Value Measurements - Fair Value Disclosure of Asset and Liability Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial assets
Cash and due from banks	$ 10,616	$ 9,124
Carrying Amount
Financial assets
Cash and due from banks	10,616	9,124
Loans, net	1,926,034	1,866,182
Accrued interest receivable	15,158	15,481
Financial liabilities
Other borrowed funds	321,700	343,100
Accrued interest	2,763	1,452
Carrying Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	906,723	960,692
Carrying Amount | Interest bearing
Financial liabilities
Deposit liabilities	2,125,668	1,959,708
Carrying Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	106,323	41,171
Fair Value Amount
Financial assets
Cash and due from banks	10,616	9,124
Loans, net	1,813,068	1,768,903
Accrued interest receivable	15,158	15,481
Financial liabilities
Other borrowed funds	321,667	342,904
Accrued interest	2,763	1,452
Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	906,723	960,692
Fair Value Amount | Interest bearing
Financial liabilities
Deposit liabilities	2,118,085	1,951,227
Fair Value Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	106,323	41,171
Level 1 | Fair Value Amount
Financial assets
Cash and due from banks	10,616	9,124
Loans, net	0	0
Accrued interest receivable	0	0
Financial liabilities
Other borrowed funds	0	0
Accrued interest	0	0
Level 1 | Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	0	0
Level 1 | Fair Value Amount | Interest bearing
Financial liabilities
Deposit liabilities	0	0
Level 1 | Fair Value Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	106,323	41,171
Level 2 | Fair Value Amount
Financial assets
Cash and due from banks	0	0
Loans, net	0	0
Accrued interest receivable	15,158	15,481
Financial liabilities
Other borrowed funds	321,667	342,904
Accrued interest	2,763	1,452
Level 2 | Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	906,723	960,692
Level 2 | Fair Value Amount | Interest bearing
Financial liabilities
Deposit liabilities	2,118,085	1,951,227
Level 2 | Fair Value Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	0	0
Level 3 | Fair Value Amount
Financial assets
Cash and due from banks	0	0
Loans, net	1,813,068	1,768,903
Accrued interest receivable	0	0
Financial liabilities
Other borrowed funds	0	0
Accrued interest	0	0
Level 3 | Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	0	0
Level 3 | Fair Value Amount | Interest bearing
Financial liabilities
Deposit liabilities	0	0
Level 3 | Fair Value Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	$ 0	$ 0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 273,453	$ 389,627
Net unrealized gains (losses)	17,265	(64,311)
Less: net realized (gains) losses reclassified to earnings	(1,579)	(141)
Net change in pension plan benefits	0	0
Ending balance	289,783	330,910
Gains and Losses on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,589)	0
Net unrealized gains (losses)	47	(503)
Less: net realized (gains) losses reclassified to earnings	287	(59)
Net change in pension plan benefits	0	0
Ending balance	(1,255)	(562)
Unrealized Gains and Losses on Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(130,875)	12,975
Net unrealized gains (losses)	17,218	(63,808)
Less: net realized (gains) losses reclassified to earnings	(1,866)	(82)
Net change in pension plan benefits	0	0
Ending balance	(115,523)	(50,915)
Defined Benefit Pension Items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(7,031)	(6,020)
Net unrealized gains (losses)	0	0
Less: net realized (gains) losses reclassified to earnings	0	0
Net change in pension plan benefits	0	0
Ending balance	(7,031)	(6,020)
Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(139,495)	6,955
Ending balance	$ (123,809)	$ (57,497)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total pre-tax amount	$ 34,328	$ 24,252
Tax effect	(584)	(1,933)
Net income	7,524	9,126
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	1,579	141
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total pre-tax amount	(363)	75
Tax effect	76	(16)
Net income	(287)	59
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available-for-Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total pre-tax amount	2,362	0
Realized gains (losses) on securities	0	104
Tax effect	(496)	(22)
Net income	$ 1,866	$ 82

Other Operating Expense - Sched

Other Operating Expense - Schedule of Other Operating Cost and Expense, by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Income and Expenses [Abstract]
FDIC assessment	$ 734	$ 702
Historic tax credit amortization	632	632
IT related	491	412
Consultant fees	470	212
Network expense	429	394
Directors' fees	410	245
Audit expense	307	92
Legal expense	305	175
Virginia franchise tax	243	233
Marketing expense	219	317
Other	1,367	1,258
Total	$ 5,607	$ 4,672

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation cost for awards granted	$ 580,600	$ 506,200
Total income tax benefit	121,900	$ 106,300
Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation costs	$ 4,700,000
Average period for cost to be recognized	2 years 29 days
Restricted Stock Units (RSUs) | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period	3 years
Vesting percentage	50%
Restricted Stock Units (RSUs) | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period	5 years
Vesting percentage	100%
Restricted Stock Units (RSUs) | 2020 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized to be issued (in shares)			240,000
Shares issued during period (in shares)	24,705	12,160
Restricted Stock Units (RSUs) | 2023 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized to be issued (in shares)	250,000

Share-Based Compensation - Shar

Share-Based Compensation - Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity (Details) - Restricted Stock Units (RSUs)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Shares
Beginning nonvested (in shares) | shares	122,440
Granted (in shares) | shares	24,705
Vested (in shares) | shares	(3,120)
Forfeited (in shares) | shares	0
Ending nonvested (in shares) | shares	144,025
Weighted-Average Grant-Date Fair Value
Beginning nonvested (in usd per share) | $ / shares	$ 48
Granted (in usd per share) | $ / shares	67.81
Vested (in usd per share) | $ / shares	50.47
Forfeited (in usd per share) | $ / shares	0
Ending nonvested (in usd per share) | $ / shares	$ 51.34

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net income (in thousands)	$ 7,524	$ 9,126
Weighted average number of shares (in shares)	7,426,638	7,424,059
Options effect of dilutive shares (in shares)	77,835	27,799
Weighted average dilutive shares (in shares)	7,504,473	7,451,858
Basic EPS (in usd per share)	$ 1.01	$ 1.23
Diluted EPS (in usd per share)	$ 1	$ 1.23

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Stock awards antidilutive (in shares)	0	0