MIDDLETOWN, Md., Oct. 23, 2025 /PRNewswire/ -- Community Heritage Financial, Inc. (the "Company" or "CHF") (OTC PK: CMHF), the parent company of Middletown Valley Bank ("MVB" or the "Bank"), reported net income of $1.9 million, or $0.66 per diluted share, for the third quarter ended September 30, 2025, a decline of $533 thousand, or 21.6%, in comparison to the second quarter of 2025. Compared to the third quarter of 2024, net income decreased $113 thousand, or 5.5%. Net income for the nine months ended September 30, 2025 totaled $6.3 million, or $2.13 per diluted common share, representing an increase of $1.4 million, or 28.4%, compared to net income of $4.9 million, or $1.68 per diluted common share, for the nine months ended September 30, 2024.
During the third quarter 2025, the Bank established a specific reserve of $750 thousand, representing 100% of the outstanding loan balance related to a single commercial line of credit to a customer that uncovered an internal theft by one of its owners. As a result, the provision for credit losses increased to $961 thousand during the third quarter of 2025, compared to $148 thousand during the second quarter of 2025 and a $7 thousand recapture during the third quarter of 2024. Year-to-date through September 30, 2025, the provision for credit losses totaled $1.4 million, compared to $428 thousand during the same period in 2024. As of September 30, 2025, the allowance for credit losses - loans1 was 1.07% of total loans compared to 0.99% and 0.96% as of June 30, 2025 and September 30, 2024, respectively. The ratio of non-performing assets to total assets was 0.19% as of September 30, 2025, compared to 0.13% as of June 30, 2025 and 0.14% as of September 30, 2024. The ratio of net charge-offs to average total loans was zero percent for the quarters ended September 30, 2025, June 30, 2025 and September 30, 2024.
| 1 The "allowance for credit losses - loans" relates to the allowance for credit losses specific to loans outstanding and does not include the allowance for credit losses related to off-balance sheet credit exposure. |
Balance Sheet
Assets totaled $1.1 billion as of September 30, 2025, representing a decrease of $5.9 million since September 30, 2024, and an increase of $72.2 million since December 31, 2024. The decline in the balance sheet since September 30, 2024 was driven by a decline in borrowings and subordinated debt of $63.0 million, offset by growth in deposits of $49.5 million, or 5.3%, and growth in shareholders' equity of $9.0 million, or 11.6%. The reduction in borrowings included repayment of advances drawn under the Bank Term Funding Program ("BTFP") available through the Federal Reserve Bank ("FRB") totaling $50.0 million. The advances offered the opportunity of a positive arbitrage between the weighted average advance rate and the earnings rate offered by the FRB. The Bank repaid the advances immediately prior to the November 2024 meeting of the FRB, at which the FRB reduced short-term interest rates, eliminating the arbitrage opportunity. Balance sheet growth since December 31, 2024 of $72.2 million was driven primarily by deposit growth of $74.3 million, or 10.9% annualized, which included growth in time deposit, money market, NOW and noninterest-bearing demand account balances of $34.8 million, $18.9 million, $15.6 million and $3.6 million, respectively.
Loan balances outstanding grew to $896.2 million as of September 30, 2025, representing an increase of $52.1 million, or 6.2% from September 30, 2024, and $52.1 million, or 8.2% annualized from December 31, 2024. Growth in residential loans, which includes home equity loans, non-owner occupied commercial real estate loans, construction and land development loans, and owner occupied commercial real estate loans of $16.7 million, $16.4 million, $16.0 million and $5.7 million, respectively, contributed to the loan growth of $52.1 million since September 30, 2024. Since December 31, 2024, construction and land development loans, residential loans, non-owner occupied commercial real estate loans, and owner occupied commercial real estate loans grew $20.9 million, $17.9 million $11.3 million and $6.8 million, respectively. Declines in farmland and multifamily loan balances of $3.3 million and $2.4 million, respectively, offset the growth in other portfolios. While growth in commercial real estate loans has been strong during the past twelve months, the Bank's commercial real estate concentration level is modest at 243% of tier 1 capital plus the allowance for credit losses as of September 30, 2025.
Net Interest Income
Net interest income totaled $9.2 million for the three months ended September 30, 2025, compared to $7.8 million during the same period in 2024, and $8.1 million during the three months ended December 31, 2024. The net interest margin ("NIM") increased from 2.90% during the third quarter of 2024 to 3.13% during the fourth quarter of 2024 and 3.40% during the third quarter of 2025. The FRB's decision to increase short-term rates to combat inflation in March 2022 pressured the Company's NIM during 2022 and 2023 as deposit rates increased rapidly. The NIM reached a low point of 2.61% in the third quarter of 2023 and has since steadily improved as interest rates on interest-bearing deposits stabilized and maturing loans repriced at higher interest rates. Interest rate cuts initiated by the FRB beginning in September 2024 also contributed to the improvement in the NIM during the fourth quarter of 2024 and the nine months to-date of 2025. The latest short-term rate cut by the FRB of 0.25% occurred mid-month September 2025 with little impact to third quarter performance.
Noninterest Income
Linked quarter 2025 - Noninterest income decreased $39 thousand during the third quarter of 2025 compared to the second quarter of 2025. Mortgage banking revenue decreased $58 thousand as mortgage interest rate levels and affordability concerns continued to challenge origination and sale activity. Earnings on bank-owned life insurance decreased $41 thousand, reflecting equity market performance in the third quarter relative to the second quarter. Modest increases in revenue associated with card and merchant services of $23 thousand and service charges on deposits of $23 thousand partially offset the earnings pressure from mortgage banking activities and bank-owned life insurance performance.
Third Quarter 2025 vs. Third Quarter 2024 - Noninterest income decreased $92 thousand. Mortgage banking revenue decreased $160 thousand reflecting market challenges mentioned previously. Card and merchant services fee income increased $39 thousand with increased activity and other noninterest income increased $35 thousand driven by fees associated with interest rate swap transactions with customers totaling $33 thousand.
Nine Months September 30, 2025 vs. Nine Months September 30, 2024 - Noninterest income decreased $25 thousand. Mortgage banking revenue and earnings on bank-owned life insurance decreased $115 thousand and $107 thousand, respectively. The decline in earnings on bank-owned life insurance reflected the receipt during the first quarter 2024 of insurance proceeds totaling $138 thousand. Offsetting the noted decreases in revenue was an increase in other noninterest income of $114 thousand and an increase in card and merchant services fees of $88 thousand. The increase in other noninterest income included broker fees for referrals of Small Business Administration ("SBA") qualified loans totaling $72 thousand and fees associated with interest rate swap transactions with customers totaling $51 thousand. The increase in card and merchant services fees reflected increased transaction activity.
Noninterest Expense
Linked quarter 2025 - Noninterest expense increased $275 thousand on a linked quarter basis. The increase was primarily driven by increases in salaries and benefits and occupancy and equipment expense of $202 thousand and $64 thousand, respectively. Salaries and benefits increased due to increased health insurance costs of $154 thousand associated with claims activity. Occupancy and equipment expense increased due to increases in software costs of $40 thousand and building maintenance and utilities costs of $11 thousand.
Third Quarter 2025 vs. Third Quarter 2024 - Noninterest expense increased $503 thousand quarter over quarter. The increase was driven primarily by increases in data and item processing of $177 thousand, salaries and benefits of $166 thousand, other noninterest expense of $105 thousand and legal and professional fees of $90 thousand. The recovery of prior period fraud losses during the third quarter of 2024 totaling $116,000 contributed to the increase in the comparable period in 2025 on a comparative basis. The increase in salaries and benefits reflected merit increases, increased incentive compensation accruals and increased health insurance costs. Included in the increase in other noninterest expense was increases in donations and sponsorships expense of $41 thousand, ATM and card expense of $37 thousand, and training and development expense of $29 thousand. The increase in legal and professional fees reflected additional costs incurred to meet FDICIA requirements.
Nine Months September 30, 2025 vs. Nine Months September 30, 2024 - Noninterest expense increased $1.0 million in 2025 compared to 2024. The increase was largely attributable to an increase in salaries and benefits of $740 thousand, an increase in other noninterest expense of $213 thousand, and an increase in legal and professional fees of $92 thousand. The increase in salaries and benefits reflected merit increases, increased incentive compensation accruals and increased health insurance costs. Included in the increase in other noninterest expense was increases in ATM and card expense of $102 thousand, training and development expense of $63 thousand, donations and sponsorships expense of $24 thousand and travel and entertainment expense of $20 thousand. The increase in legal and professional fees reflected additional costs incurred to meet FDICIA requirements.
Dividend
A dividend of $0.08 per common share was declared by the Board of Directors on October 17, 2025, for shareholders of record as of October 31, 2025, and payable on November 7, 2025.
Forward-Looking Statements
This press release may contain forward-looking statements with respect to the Company's financial condition, results of operations and business. Forward-looking statements can be identified by words such as "expects", "anticipates", "believes", "estimates", "projects", "continue", "plans", "intends", the negative of these words and other comparable terminology. These forward-looking statements may be included in comments regarding future financial performance, expected levels of future revenue and expenses such as credit losses, growth strategies, new business initiatives and anticipated trends impacting performance. Forward-looking statements are not historical facts nor an assurance of future performance. While we believe the expectations of forward-looking statements to be reasonable, actual results may differ materially as forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and often outside of the control of the Company. Therefore, users should not rely on forward-looking statements.
Non-GAAP Financial Measures
The Company may include certain non-GAAP financial measures in this press release. The Company believes these financial measures provide information useful to investors in understanding the Company's performance and performance trends to facilitate comparisons with the performance of others in the industry. These non-GAAP financial measures should not be considered an alternative to GAAP and users should recognize the non-GAAP financial measures presented by the Company might not be comparable to measures of other companies with similar titles.
Community Heritage Financial, Inc.
Robert E. (BJ) Goetz, Jr.
President & Chief Executive Officer
301-371-3055
John A. Scaldara, Jr.
Executive Vice President and Chief Financial Officer
301-371-3070
| Community Heritage Financial, Inc. and Subsidiaries | |||||||
| | | | | | | | |
| Balance Sheets (unaudited) | |||||||
| | | | | | | | |
| | | | As of Period End | ||||
| | | | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 |
| | | | | | | | |
| ASSETS | | | | | | | |
| | Cash and due from banks | $ 28,508,739 | $ 67,210,170 | $ 41,754,293 | $ 16,510,418 | $ 90,485,075 | |
| | Securities available-for-sale, at fair value | 54,390,834 | 46,712,422 | 42,514,398 | 40,481,911 | 43,803,206 | |
| | Securities held-to-maturity | 87,642,810 | 88,807,858 | 90,382,973 | 91,374,820 | 92,558,298 | |
| | | Less allowance for credit losses | 73,338 | 92,176 | 93,416 | 102,896 | 110,386 |
| | | Total securities held-to-maturity | 87,569,472 | 88,715,682 | 90,289,557 | 91,271,924 | 92,447,912 |
| | | | | | | | |
| | | Total securities | 141,960,306 | 135,428,104 | 132,803,955 | 131,753,835 | 136,251,118 |
| | Equity securities, at cost | 951,700 | 1,426,700 | 1,901,700 | 1,404,700 | 1,404,600 | |
| | Loans | 899,798,030 | 872,116,129 | 863,383,714 | 847,593,970 | 847,539,088 | |
| | | Less allowance for credit losses - loans 1 | 9,648,797 | 8,675,088 | 8,525,628 | 8,279,404 | 8,167,602 |
| | | Loans, net | 890,149,233 | 863,441,041 | 854,858,086 | 839,314,566 | 839,371,486 |
| | Loans held for sale | 3,782,055 | 1,445,377 | 564,685 | 5,106,956 | 4,591,950 | |
| | Premises and equipment | 6,354,368 | 6,196,774 | 5,628,103 | 5,688,187 | 5,805,983 | |
| | Right of use asset | 1,691,267 | 1,816,066 | 1,939,827 | 1,911,836 | 2,031,653 | |
| | Accrued interest receivable | 3,433,569 | 3,422,469 | 3,342,795 | 3,152,505 | 3,124,150 | |
| | Deferred tax assets | 4,501,612 | 4,356,321 | 4,431,764 | 4,558,255 | 4,568,943 | |
| | Bank owned life insurance | 7,656,529 | 7,570,668 | 7,443,531 | 7,411,319 | 7,379,630 | |
| | Goodwill | 1,656,507 | 1,656,507 | 1,656,507 | 1,656,507 | 1,656,507 | |
| | Other assets | 1,817,743 | 1,638,591 | 1,741,146 | 1,771,483 | 1,660,574 | |
| | | | | | | | |
| | | Total Assets | $ 1,092,463,628 | $ 1,095,608,788 | $ 1,058,066,392 | $ 1,020,240,567 | $ 1,098,331,669 |
| | | | | | | | |
| LIABILITIES and SHAREHOLDERS' EQUITY | | | | | | ||
| | | | | | | | |
| | Liabilities | | | | | | |
| | | Deposits: | | | | | |
| | | Noninterest-bearing demand | $ 255,052,436 | $ 256,355,584 | $ 247,511,094 | $ 251,431,084 | $ 246,907,558 |
| | | Interest-bearing | 727,289,753 | 721,494,804 | 685,201,331 | 656,575,635 | 685,892,223 |
| | | Total deposits | 982,342,189 | 977,850,388 | 932,712,425 | 908,006,719 | 932,799,781 |
| | | FHLB advances and other borrowings | 5,000,000 | 15,000,000 | 25,000,000 | 15,000,000 | 65,000,000 |
| | | Subordinated debt, net | 12,049,882 | 12,046,819 | 12,043,757 | 12,040,695 | 15,000,000 |
| | | Lease liabilities | 1,760,706 | 1,886,828 | 2,011,829 | 1,984,920 | 2,105,649 |
| | | Accrued interest payable | 709,739 | 567,996 | 730,113 | 485,160 | 2,468,369 |
| | | Other liabilities | 4,306,714 | 4,321,095 | 4,380,812 | 3,694,164 | 3,662,903 |
| | | | | | | | |
| | | Total Liabilities | 1,006,169,230 | 1,011,673,126 | 976,878,936 | 941,211,658 | 1,021,036,702 |
| | | | | | | | |
| | Shareholders' Equity | | | | | | |
| | | Common stock | 29,291 | 29,289 | 29,289 | 29,198 | 29,159 |
| | | Additional paid-in-capital | 41,588,025 | 41,469,625 | 41,351,223 | 41,331,966 | 41,284,421 |
| | | Retained earnings | 50,180,223 | 48,480,152 | 46,246,459 | 44,597,524 | 43,039,340 |
| | | Accumulated other comprehensive loss | (5,503,141) | (6,043,404) | (6,439,515) | (6,929,779) | (7,057,953) |
| | | | | | | | |
| | | Total Shareholders' Equity | 86,294,398 | 83,935,662 | 81,187,456 | 79,028,909 | 77,294,967 |
| | | | | | | | |
| | | Total Liabilities and Shareholders' Equity | $ 1,092,463,628 | $ 1,095,608,788 | $ 1,058,066,392 | $ 1,020,240,567 | $ 1,098,331,669 |
| | | | | | | | |
| | 1 "Allowance for credit losses - loans" ("ACL-loans") relates to the ACL specific to loans outstanding and does not include the ACL related to off-balance sheet credit exposure. | ||||||
| Community Heritage Financial, Inc. and Subsidiaries | ||||||||||
| | | | | | | | | | | |
| Statements of Income (unaudited) | ||||||||||
| | | | | | | | | | | |
| | | | Three Months Ended | | Nine Months Ended | |||||
| | | | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | | 9/30/2025 | 9/30/2024 |
| | | | | | | | | | | |
| Interest Income | | | | | | | | | ||
| | Loans, including fees | $ 13,086,145 | $ 12,597,796 | $ 12,228,538 | $ 12,057,265 | $ 12,066,857 | | $ 37,912,479 | $ 34,719,540 | |
| | Securities | 946,231 | 888,721 | 858,632 | 809,512 | 773,571 | | 2,693,584 | 2,319,892 | |
| | Fed funds sold and other bank deposits | 511,786 | 467,029 | 119,202 | 548,309 | 1,101,997 | | 1,098,017 | 3,258,429 | |
| | | Total interest income | 14,544,162 | 13,953,546 | 13,206,372 | 13,415,086 | 13,942,425 | | 41,704,080 | 40,297,861 |
| | | | | | | | | | | |
| Interest Expense | | | | | | | | | ||
| | Deposits | 5,031,782 | 4,758,194 | 4,405,731 | 4,686,005 | 5,146,858 | | 14,195,707 | 14,856,456 | |
| | Borrowed funds | 137,305 | 149,325 | 189,055 | 380,370 | 756,653 | | 475,685 | 2,177,618 | |
| | Subordinated debt | 207,249 | 207,250 | 207,250 | 209,934 | 238,049 | | 621,749 | 714,148 | |
| | | Total interest expense | 5,376,336 | 5,114,769 | 4,802,036 | 5,276,309 | 6,141,560 | | 15,293,141 | 17,748,222 |
| | | | | | | | | | | |
| Net interest income | 9,167,826 | 8,838,777 | 8,404,336 | 8,138,777 | 7,800,865 | | 26,410,939 | 22,549,639 | ||
| Provision for credit losses | 960,847 | 148,330 | 248,558 | 178,624 | (7,396) | | 1,357,735 | 428,094 | ||
| Net interest income after provision | | | | | | | | | ||
| | for credit losses | 8,206,979 | 8,690,447 | 8,155,778 | 7,960,153 | 7,808,261 | | 25,053,204 | 22,121,545 | |
| | | | | | | | | | | |
| Noninterest income | | | | | | | | | ||
| | Mortgage banking revenue | 348,561 | 406,440 | 164,015 | 470,783 | 508,209 | | 919,016 | 1,034,375 | |
| | Card and merchant services | 333,325 | 310,082 | 281,415 | 314,785 | 294,243 | | 924,822 | 837,179 | |
| | Service charges on deposits | 254,754 | 231,856 | 235,097 | 262,583 | 252,406 | | 721,707 | 726,783 | |
| | Earnings on bank-owned life insurance | 77,570 | 118,847 | 23,920 | 23,398 | 86,958 | | 220,337 | 327,354 | |
| | Loss on sale of investment securities | - | - | - | (442,493) | - | | - | - | |
| | Other | 40,436 | 25,959 | 77,870 | 5,427 | 5,022 | | 144,265 | 29,893 | |
| | | Total noninterest income | 1,054,646 | 1,093,184 | 782,317 | 634,483 | 1,146,838 | | 2,930,147 | 2,955,584 |
| | | | | | | | | | | |
| Noninterest expense | | | | | | | | | ||
| | Salaries and employee benefits | 3,861,631 | 3,660,059 | 3,847,202 | 3,565,344 | 3,696,105 | | 11,368,892 | 10,628,758 | |
| | Occupancy and equipment | 913,042 | 848,881 | 925,091 | 906,738 | 901,283 | | 2,687,014 | 2,634,801 | |
| | Data and item processing | 668,922 | 686,375 | 590,840 | 624,021 | 492,294 | | 1,946,137 | 1,940,667 | |
| | Legal and professional fees | 332,527 | 366,768 | 277,977 | 291,944 | 242,411 | | 977,272 | 884,848 | |
| | FDIC insurance | 166,176 | 170,937 | 142,866 | 206,376 | 210,789 | | 479,979 | 601,066 | |
| | Advertising | 91,883 | 79,253 | 107,375 | 78,362 | 93,129 | | 278,511 | 227,832 | |
| | Other | 658,319 | 604,861 | 587,891 | 616,615 | 553,021 | | 1,851,071 | 1,638,076 | |
| | | Total noninterest expense | 6,692,500 | 6,417,134 | 6,479,242 | 6,289,400 | 6,189,032 | | 19,588,876 | 18,556,048 |
| | | | | | | | | | | |
| Income before income taxes | 2,569,125 | 3,366,497 | 2,458,853 | 2,305,236 | 2,766,067 | | 8,394,475 | 6,521,081 | ||
| Income tax expense | 634,729 | 898,493 | 576,217 | 571,853 | 718,989 | | 2,109,439 | 1,626,652 | ||
| Net income | $ 1,934,396 | $ 2,468,004 | $ 1,882,636 | $ 1,733,383 | $ 2,047,078 | | $ 6,285,036 | $ 4,894,429 | ||
| | | | | | | | | | | |
| Community Heritage Financial, Inc. and Subsidiaries | ||||||||||
| | | | | | | | | | | |
| Per Share Data (unaudited) | ||||||||||
| | | | | | | | | | | |
| | | | Three Months Ended | | Nine Months Ended | |||||
| | | | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | | 9/30/2025 | 9/30/2024 |
| | | | | | | | | | | |
| Earnings per common share | | | | | | | | | ||
| | Basic | $ 0.66 | $ 0.84 | $ 0.64 | $ 0.59 | $ 0.70 | | $ 2.15 | $ 1.68 | |
| | Diluted | $ 0.66 | $ 0.84 | $ 0.64 | $ 0.59 | $ 0.70 | | $ 2.13 | $ 1.68 | |
| Common shares outstanding at period end | 2,929,053 | 2,928,888 | 2,928,888 | 2,919,797 | 2,915,933 | | 2,929,053 | 2,915,933 | ||
| Average common shares outstanding | | | | | | | | | ||
| | Basic | 2,929,012 | 2,928,888 | 2,922,624 | 2,919,677 | 2,915,933 | | 2,926,865 | 2,914,975 | |
| | Diluted | 2,952,922 | 2,944,207 | 2,937,508 | 2,934,754 | 2,927,377 | | 2,946,201 | 2,920,191 | |
| Cash dividends paid per common share | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.06 | $ 0.06 | | $ 0.24 | $ 0.18 | ||
| Community Heritage Financial, Inc. and Subsidiaries | ||||||||||
| | | | | | | | | | | |
| Selected Financial Data (unaudited) | ||||||||||
| | | | | | | | | | | |
| | | | As of and for the Three Months Ended | | As of and for the Nine Months Ended | |||||
| | | | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | | 9/30/2025 | 9/30/2024 |
| | | | | | | | | | | |
| Per Share Data | | | | | | | | | ||
| | Common shares outstanding | 2,929,053 | 2,928,888 | 2,928,888 | 2,919,797 | 2,915,933 | | 2,929,053 | 2,915,933 | |
| | Book value per share | $ 29.46 | $ 28.66 | $ 27.72 | $ 27.07 | $ 26.51 | | $ 29.46 | $ 26.51 | |
| | Tangible book value per share | $ 28.90 | $ 28.09 | $ 27.15 | $ 26.50 | $ 25.94 | | $ 28.90 | $ 25.94 | |
| | | | | | | | | | | |
| Capital (bank consolidated unless noted otherwise) | | | | | | | | | ||
| | Common equity tier 1 (CET1) capital | 12.15 % | 12.28 % | 12.11 % | 12.12 % | 12.27 % | | 12.15 % | 12.27 % | |
| | Tier 1 capital | 12.15 % | 12.28 % | 12.11 % | 12.12 % | 12.27 % | | 12.15 % | 12.27 % | |
| | Total risk based capital | 13.37 % | 13.41 % | 13.23 % | 13.24 % | 13.36 % | | 13.37 % | 13.36 % | |
| | Tier 1 leverage ratio | 9.32 % | 9.29 % | 9.47 % | 9.06 % | 8.90 % | | 9.32 % | 8.90 % | |
| | Tangible common equity to tangible assets (CHF) | 7.76 % | 7.52 % | 7.53 % | 7.60 % | 6.90 % | | 7.76 % | 6.90 % | |
| | | | | | | | | | | |
| Asset Quality Data | | | | | | | | | ||
| | Non-accrual loans | $ 2,044,469 | $ 1,442,329 | $ 1,488,718 | $ 1,525,759 | $ 1,566,138 | | $ 2,044,469 | $ 1,566,138 | |
| | Non-performing assets | $ 2,044,469 | $ 1,442,329 | $ 1,488,718 | $ 1,525,759 | $ 1,566,138 | | $ 2,044,469 | $ 1,566,138 | |
| | Non-performing loans to loans | 0.23 % | 0.17 % | 0.17 % | 0.18 % | 0.18 % | | 0.23 % | 0.18 % | |
| | Non-performing assets to total assets | 0.19 % | 0.13 % | 0.14 % | 0.15 % | 0.14 % | | 0.19 % | 0.14 % | |
| | Net loan charge-offs to average loans | 0.00 % | 0.00 % | 0.00 % | 0.00 % | 0.00 % | | 0.00 % | 0.00 % | |
| | ACL - loans1 to total loans | 1.07 % | 0.99 % | 0.99 % | 0.98 % | 0.96 % | | 1.07 % | 0.96 % | |
| | | | | | | | | | | |
| Other Data | | | | | | | | | | |
| | Return on average assets | 0.70 % | 0.92 % | 0.74 % | 0.65 % | 0.74 % | | 0.79 % | 0.60 % | |
| | Return on average equity | 8.96 % | 11.93 % | 9.47 % | 8.77 % | 10.66 % | | 10.12 % | 8.82 % | |
| | Net interest margin | 3.40 % | 3.37 % | 3.36 % | 3.13 % | 2.90 % | | 3.37 % | 2.84 % | |
| | Yield on interest-earning assets | 5.38 % | 5.32 % | 5.29 % | 5.16 % | 5.18 % | | 5.33 % | 5.08 % | |
| | Cost of interest-bearing liabilities | 2.85 % | 2.80 % | 2.78 % | 2.93 % | 3.19 % | | 2.81 % | 3.16 % | |
| | Loans to deposits ratio | 91.60 % | 89.19 % | 92.57 % | 93.35 % | 90.86 % | | 91.60 % | 90.86 % | |
| | | | | | | | | | | |
| | 1 "Allowance for credit losses - loans" ("ACL-loans") relates to the ACL specific to loans outstanding and does not include the ACL related to off-balance sheet credit exposure. | | | |||||||
| Community Heritage Financial, Inc. and Subsidiaries | |||||||||||||||||||
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| Condensed Average Balance Sheet Analysis (unaudited) | |||||||||||||||||||
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| | | | Three Months Ended | ||||||||||||||||
| | | | September 30, 2025 | | June 30, 2025 | | September 30, 2024 | ||||||||||||
| | | | Average Balance | | Interest | | Yield / Rate | | Average Balance | | Interest | | Yield / Rate | | Average Balance | | Interest | | Yield / Rate |
| | | | | | | | | | | | |||||||||
| ASSETS | | | | | | | | | | | | | | | | | | ||
| | Interest-earning assets: | | | | | | | | | | | | | | | | |
| |
| | | Loans, including LHFS | $ 883,763,296 | | $ 13,086,145 | | 5.89 % | | $ 868,901,865 | | $ 12,597,796 | | 5.81 % | | $ 847,572,666 | | $ 12,066,857 | | 5.66 % |
| | | Securities | 139,178,904 | | 946,231 | | 2.72 % | | 135,415,559 | | 888,721 | | 2.63 % | | 135,995,176 | | 773,571 | | 2.28 % |
| | | Fed funds sold and other bank deposits | 51,010,040 | | 511,786 | | 3.98 % | | 47,920,689 | | 467,029 | | 3.91 % | | 86,892,250 | | 1,101,997 | | 5.05 % |
| | | | 1,073,952,240 | | 14,544,162 | | 5.38 % | | 1,052,238,113 | | 13,953,546 | | 5.32 % | | 1,070,460,092 | | 13,942,425 | | 5.18 % |
| | | | | | | | | | | | | | | | | | | | |
| | Noninterest-earning assets | 22,561,809 | | | | | | 23,523,401 | | | | | | 23,724,580 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | Total Assets | $ 1,096,514,049 | | | | | | $ 1,075,761,514 | | | | | | $ 1,094,184,672 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | ||
| | Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | |
| | | Demand deposits | $ 541,428,761 | | $ 3,332,702 | | 2.44 % | | $ 527,492,595 | | $ 3,146,490 | | 2.39 % | | $ 534,980,893 | | $ 3,732,942 | | 2.78 % |
| | | Time deposits | 184,562,867 | | 1,699,080 | | 3.65 % | | 176,936,573 | | 1,611,704 | | 3.65 % | | 150,646,399 | | 1,413,916 | | 3.73 % |
| | | Interest-bearing deposits | 725,991,628 | | 5,031,782 | | 2.75 % | | 704,429,168 | | 4,758,194 | | 2.71 % | | 685,627,293 | | 5,146,858 | | 2.99 % |
| | | Borrowings | 23,176,928 | | 344,554 | | 5.93 % | | 27,044,756 | | 356,575 | | 5.28 % | | 79,985,590 | | 994,702 | | 4.95 % |
| | | Interest-bearing liabilities | 749,168,556 | | 5,376,336 | | 2.85 % | | 731,473,924 | | 5,114,769 | | 2.80 % | | 765,612,882 | | 6,141,560 | | 3.19 % |
| | Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | |
| | | Demand deposits | 255,304,997 | | | | | | 254,468,601 | | | | | | 244,538,112 | | | | |
| | | Other | 6,424,548 | | | | | | 6,873,331 | | | | | | 7,865,969 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | Total Liabilities | 1,010,898,101 | | | | | | 992,815,856 | | | | | | 1,018,016,964 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | Cost of Total Deposits | | | | | 2.03 % | | | | | | 1.99 % | | | | | | 2.20 % |
| | | Cost of Total Funds (interest- | | | | | | | | | | | | | | | | | |
| | | bearing liabilities plus non- | | | | | | | | | | | | | | | | | |
| | | interest-bearing deposits) | | | | | 2.09 % | | | | | | 2.05 % | | | | | | 2.42 % |
| | | | | | | | | | | | | | | | | | | | |
| | Shareholders' equity | 85,615,948 | | | | | | 82,945,658 | | | | | | 76,167,709 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | Total Liabilities and Shareholders Equity | $ 1,096,514,049 | | | | | | $ 1,075,761,514 | | | | | | $ 1,094,184,672 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | Net interest income / NIM | | | $ 9,167,826 | | 3.40 % | | | | $ 8,838,777 | | 3.37 % | | | | $ 7,800,865 | | 2.90 % |
| Community Heritage Financial, Inc. and Subsidiaries | |||||||||||||
| | | | | | | | | | | | | | |
| Condensed Average Balance Sheet Analysis (unaudited) | |||||||||||||
| | | | | | | | | | | | | | |
| | | | Nine Months Ended | ||||||||||
| | | | September 30, 2025 | | September 30, 2024 | ||||||||
| | | | Average Balance | | Interest | | Yield / Rate | | Average Balance | | Interest | | Yield / Rate |
| | | | | | | | | ||||||
| ASSETS | | | | | | | | | | | | ||
| | Interest-earning assets: | | | | | | | | | | | | |
| | | Loans | $ 870,744,610 | | $ 37,912,479 | | 5.82 % | | $ 837,078,047 | | $ 34,719,540 | | 5.54 % |
| | | Securities | 136,582,535 | | 2,693,584 | | 2.63 % | | 136,530,567 | | 2,319,892 | | 2.27 % |
| | | Fed funds sold and other bank deposits | 38,623,627 | | 1,098,017 | | 3.80 % | | 85,270,379 | | 3,258,429 | | 5.10 % |
| | | | 1,045,950,772 | | 41,704,080 | | 5.33 % | | 1,058,878,992 | | 40,297,861 | | 5.08 % |
| | | | | | | | | | | | | | |
| | Noninterest-earning assets | 22,167,616 | | | | | | 22,107,081 | | | | | |
| | | | | | | | | | | | | | |
| | | Total Assets | $ 1,068,118,388 | | | | | | $ 1,080,986,073 | | | | |
| | | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | ||
| | Interest-bearing liabilities: | | | | | | | | | | | | |
| | | Demand deposits | $ 526,941,332 | | $ 9,443,860 | | 2.40 % | | $ 533,485,343 | | $ 11,089,043 | | 2.78 % |
| | | Time deposits | 172,910,792 | | 4,751,847 | | 3.67 % | | 139,554,338 | | 3,767,413 | | 3.61 % |
| | | Interest-bearing deposits | 699,852,124 | | 14,195,707 | | 2.71 % | | 673,039,681 | | 14,856,456 | | 2.95 % |
| | | Borrowings | 26,871,375 | | 1,097,434 | | 5.45 % | | 77,831,713 | | 2,891,766 | | 4.96 % |
| | | Interest-bearing liabilities | 726,723,499 | | 15,293,141 | | 2.81 % | | 750,871,394 | | 17,748,222 | | 3.16 % |
| | Noninterest-bearing liabilities: | | | | | | | | | | | | |
| | | Demand deposits | 251,454,884 | | | | | | 249,380,695 | | | | |
| | | Other | 6,873,118 | | | | | | 7,016,653 | | | | |
| | | | | | | | | | | | | | |
| | | Total Liabilities | 985,051,501 | | | | | | 1,007,268,742 | | | | |
| | | | | | | | | | | | | | |
| | | Cost of Total Deposits | | | | | 2.00 % | | | | | | 2.15 % |
| | | Cost of Total Funds (interest- | | | | | | | | | | | |
| | | bearing liabilities plus non- | | | | | | | | | | | |
| | | interest-bearing deposits) | | | | | 2.09 % | | | | | | 2.37 % |
| | | | | | | | | | | | | | |
| | Shareholders' equity | 83,066,887 | | | | | | 73,717,331 | | | | | |
| | | | | | | | | | | | | | |
| | | Total Liabilities and Shareholders Equity | $ 1,068,118,388 | | | | | | $ 1,080,986,073 | | | | |
| | | | | | | | | | | | | | |
| | | Net interest income / NIM | | | $ 26,410,939 | | 3.37 % | | | | $ 22,549,639 | | 2.84 % |
| Community Heritage Financial, Inc. and Subsidiaries | |||||||
| | | | | | | | |
| Loan and Deposit Composition (unaudited) | |||||||
| | | | | | | | |
| | | | As of Period End | ||||
| | | | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 |
| | | | | | | | |
| Loans: | | | | | | | |
| Commercial real estate: | | | | | | ||
| | Construction and land development | $ 80,671,698 | $ 67,819,407 | $ 65,421,754 | $ 59,761,206 | $ 64,686,070 | |
| | Multifamily | 22,749,443 | 22,989,449 | 24,142,268 | 25,185,498 | 23,437,101 | |
| | Farmland | 29,121,486 | 32,872,235 | 32,376,907 | 32,424,255 | 30,448,216 | |
| | Other: | | | | | | |
| | Owner occupied | 142,991,662 | 139,335,615 | 143,451,648 | 136,172,517 | 137,266,535 | |
| | Non-owner occupied | 170,462,324 | 164,434,003 | 163,089,171 | 159,150,227 | 154,090,059 | |
| | | | | | | | |
| Residential, including home equity | 314,145,221 | 307,500,247 | 298,829,304 | 296,196,340 | 297,472,722 | ||
| Commercial and industrial | 135,174,298 | 132,669,094 | 131,591,369 | 134,164,953 | 135,355,039 | ||
| Consumer | | 868,300 | 847,668 | 915,551 | 1,036,859 | 1,296,915 | |
| | Gross loans | 896,184,432 | 868,467,718 | 859,817,972 | 844,091,855 | 844,052,657 | |
| | Net deferred loan costs | 3,613,598 | 3,648,411 | 3,565,742 | 3,502,115 | 3,486,431 | |
| | Total Loans | $ 899,798,030 | $ 872,116,129 | $ 863,383,714 | $ 847,593,970 | $ 847,539,088 | |
| | | | | | | | |
| Deposits: | | | | | | | |
| Noninterest-bearing demand | $ 255,052,436 | $ 256,355,584 | $ 247,511,094 | $ 251,431,084 | $ 246,907,558 | ||
| Interest-bearing: | | | | | | ||
| | NOW 1 | 210,272,863 | 203,461,544 | 193,760,532 | 194,682,425 | 223,884,815 | |
| | Savings | 71,308,729 | 73,765,147 | 72,670,367 | 69,979,571 | 69,566,114 | |
| | Money Market | 259,265,676 | 260,797,600 | 251,803,391 | 240,320,055 | 239,982,813 | |
| | Time | | 186,442,485 | 183,470,513 | 166,967,041 | 151,593,584 | 152,458,481 |
| | Total interest-bearing | 727,289,753 | 721,494,804 | 685,201,331 | 656,575,635 | 685,892,223 | |
| | Total Deposits | $ 982,342,189 | $ 977,850,388 | $ 932,712,425 | $ 908,006,719 | $ 932,799,781 | |
| | | | | | | | |
| | 1 Includes demand transaction accounts enrolled in the Bank's reciprocal deposit program. | ||||||
SOURCE Community Heritage Financial, Inc.
