State’s oldest bank to trade on Nasdaq

Published January 30, 2023 by Paul Bibeau

In 1858, the Mount Vernon Ladies’ Association bought George Washington’s former home, seeking to preserve the historic estate for a country on the brink of civil war.

A key player in this transaction was Alexandria-based Burke & Herbert Bank & Trust Co., which also protected the association’s assets during the Civil War. Now, the 171-year-old community bank is making big changes, including plans to start trading on the Nasdaq composite in the next few months.

As of the third quarter of 2022, Burke & Herbert recorded $3.5 billion in assets, and in early January its stock was trading at $73.70 per share on the OTC markets.

David Boyle, president and CEO of the bank and its holding company, Burke & Herbert Financial Services Corp., says that when he joined the bank in 2019, the board of directors wanted him to take it “where … it hadn’t been before.”

The bank established a Fredericksburg market headquarters in June 2021, opened a base of operations for commercial banking services in Loudoun County in October 2021, and in 2022 expanded its commercial services to Richmond. In November 2022, Burke & Herbert announced plans to go public on the Nasdaq.

Now board chair of the holding company, too, Boyle says that entering Richmond’s market will help diversify the bank’s commercial and industrial business, and the Nasdaq listing will give shareholders greater liquidity.

Bruce Whitehurst, president and CEO of the Virginia Bankers Association, says the 2008 Great Recession reduced the number of new banks opening, so existing banks have filled the void by expanding their markets.

Boyle says Burke & Herbert plans to open its first Richmond branch this year, and two more could follow in 2024. The bank’s biggest challenge is building brand awareness in the state capital, he says, but adds the bank is large enough to lend significant funds and build business relationships.

Steve Yeakel, president and CEO of the Virginia Association of Community Banks, says that to be successful, a community bank needs to find the “sweet spot” between technology and personal service.

“Surveys show that people want technology for routine transactions,” he says, “but a real person when they have a question, a problem or an opportunity.”

Burke & Herbert could expand to Hampton Roads and west along the Interstate 81 corridor, Boyle says, but that expansion won’t be immediate. “We’re gonna digest the investments we’re making now.”

    Subscribe to Virginia Business.   Get our daily e-newsletter.