Community Heritage Financial, Inc. Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Community Heritage Financial (OTC PK: CMHF) reported Q3 2025 net income $1.9M or $0.66 diluted, down 21.6% vs Q2 2025 and down 5.5% vs Q3 2024. YTD net income through Sept 30, 2025 was $6.3M or $2.13 per share, up 28.4% vs prior year. The Bank took a $750K specific reserve tied to a single commercial credit; Q3 provision for credit losses rose to $961K (YTD $1.4M).

Balance sheet: $1.092B assets, loans $899.8M (net $890.1M), loans +6.2% YoY, deposits +5.3% YoY. NIM improved to 3.40%. Board declared a $0.08 per-share dividend payable Nov 7, 2025.

Positive

• Year-to-date net income +28.4% ($6.3M vs $4.9M)
• Loans outstanding +6.2% YoY (+$52.1M)
• Deposits +5.3% YoY (+$49.5M)
• Net interest margin improved to 3.40%

Negative

• Q3 net income down 21.6% vs Q2 2025
• Provision for credit losses rose to $961K in Q3 2025
• Specific reserve of $750K taken on one commercial loan
• Noninterest expense +$1.0M year-to-date vs prior year

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
Condensed Average Balance Sheet Analysis (unaudited)
			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.

 

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SOURCE Community Heritage Financial, Inc.

FAQ

What was Community Heritage Financial (CMHF) net income for Q3 2025?

CMHF reported $1.9 million net income for Q3 2025, or $0.66 per diluted share.

Why did CMHF's provision for credit losses increase in Q3 2025?

Provision rose to $961K after a $750K specific reserve for a single commercial line of credit.

How did Community Heritage Financial's loans and deposits change by Sept 30, 2025?

Loans grew 6.2% YoY (+$52.1M) and deposits grew 5.3% YoY (+$49.5M) as of Sept 30, 2025.

What was CMHF's net interest margin (NIM) in Q3 2025 and why does it matter?

NIM was 3.40% in Q3 2025; a higher NIM generally signals improved interest income relative to earning assets.

Did Community Heritage Financial declare a dividend in Oct 2025 and when is it payable?

Yes; the Board declared a $0.08 per-share dividend, payable on November 7, 2025 to holders of record on Oct 31, 2025.

How did noninterest expense change for CMHF through September 30, 2025?

Noninterest expense increased by approximately $1.0 million year-to-date versus the prior year.