MIDDLETOWN, Md., Oct. 18, 2019 /PRNewswire/ -- Community Heritage Financial, Inc. ("the Company") (OTCPink: CMHF), the parent company for Middletown Valley Bank ("MVB") and Millennium Financial Group, Inc. ("Mlend",) announced today that, for the quarter ended September 30, 2019, the Company earned net income of $1,000.4 thousand or $0.44 per share compared to net income of $474.2 thousand and earnings per share of $0.21 recorded for the third quarter of 2018. The net income for the quarter ended September 30, 2019 as compared to the year ago quarter ended September 30, 2018, was positively impacted by the performance of Mlend, significant increase in loan growth and a decline in provision for loan losses due to improvement in credit quality which more than offset the increase in non-interest expense and income taxes.
Net income for the first nine months of 2019 was $2.06 million or $0.92 per share compared to $1.7 million or $0.75 per share in 2018. The increase in net income versus the first nine months of 2018 was primarily due to the addition of Mlend in February 2019, significant increase in net interest income, and growth in noninterest income which more than offset the increase in provision for loan loss, noninterest expense, merger and one-time expense and income taxes.
3Q19 vs. 2Q19 Quarterly Highlights
3Q19 vs. 3Q18 Year over Year Highlights
A dividend of $0.03 per share was declared by the Board of Directors on October 18, 2019 for stockholders of record as of November 1, 2019 and payable on November 8, 2019.
This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward- looking terminology such as "believes," "expects," "intends," "may," "will," "should," "anticipates" or similar terminology. Such statements, specifically regarding the Company's intentions regarding transparency, growth and market expansion, are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, changes in interest rates, stock market liquidity, deposit flows, loan demand and real estate values, as well as changes in economic, competitive, governmental, regulatory, technological and other factors which may affect the Company specifically, its existing and target market areas or the banking industry in general. The realization or occurrence of these risks or uncertainties could cause actual results to differ materially from those addressed in the forward-looking statements.
Community Heritage Financial, Inc.
Brian M. Ropp
Executive Vice President, Chief Financial Officer
(301) 371-3029
Community Heritage Financial, Inc. and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
(dollars in thousands) | ||||||||
Balance Sheet | September 30, | September 30, | June 30, | December 31, | ||||
2019 | 2018 | 2019 | 2018 | |||||
(unaudited) | (unaudited) | (unaudited) | (audited) | |||||
Cash | $ 19,725 | $ 24,907 | $ 24,578 | $ 18,546 | ||||
FHLB Stock | 392 | 538 | 392 | 325 | ||||
Investments, at market value | 37,128 | 48,255 | 45,809 | 47,967 | ||||
Loans, net of Reserve | 406,185 | 340,189 | 382,120 | 354,149 | ||||
Loans Held for Sale | 5,208 | 543 | 3,499 | - | ||||
Fixed assets | 10,088 | 5,920 | 10,244 | 6,286 | ||||
Goodwill | 1,654 | - | 1,659 | - | ||||
Other assets | 8,359 | 8,489 | 8,202 | 8,386 | ||||
Total Assets | $ 488,739 | $ 428,841 | $ 476,504 | $ 435,658 | ||||
Deposits | $ 433,081 | $ 375,411 | $ 423,188 | $ 388,544 | ||||
Borrowings | - | 5,000 | - | - | ||||
Other liabilities | 7,517 | 4,178 | 6,224 | 2,170 | ||||
Total Liabilities | 440,598 | 384,589 | 429,412 | 390,714 | ||||
Equity | 47,913 | 45,375 | 46,980 | 45,666 | ||||
Unrealized gain(loss), net of tax | 228 | (1,123) | 112 | (722) | ||||
Total Equity | 48,141 | 44,252 | 47,092 | 44,944 | ||||
Total Liabilities & Equity | $ 488,739 | $ 428,841 | $ 476,504 | $ 435,658 | ||||
Community Heritage Financial, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Income | ||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||
Income Statement | September 30, | September 30, | September 30, | September 30, | ||||
2019 | 2018 | 2019 | 2018 | |||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||
Total interest and fee income | $ 5,332,701 | $ 4,290,135 | $ 15,593,503 | $ 11,656,495 | ||||
Total interest expense | 1,081,229 | 781,766 | 3,232,381 | 1,731,391 | ||||
Net interest income | 4,251,472 | 3,508,369 | 12,361,122 | 9,925,104 | ||||
Provision for loan losses | 191,866 | 381,913 | 672,515 | 563,913 | ||||
Net interest income after provision | 4,059,606 | 3,126,456 | 11,688,607 | 9,361,191 | ||||
Non-interest income | 1,483,307 | 298,443 | 3,282,158 | 869,097 | ||||
Non-interest expense | 4,148,823 | 2,797,642 | 12,096,484 | 7,969,479 | ||||
Merger expenses & one-time items | - | - | 77,596 | - | ||||
Pre-tax net income | 1,394,090 | 627,257 | 2,796,685 | 2,260,809 | ||||
Income taxes | 393,690 | 153,056 | 731,997 | 583,749 | ||||
Net income | $ 1,000,400 | $ 474,201 | $ 2,064,688 | $ 1,677,060 | ||||
Earnings per common share, basic | ||||||||
and diluted | $0.44 | $0.21 | $0.92 | $0.75 |
Community Heritage Financial, Inc. and Subsidiaries | ||||||||
Selected Financial Data | ||||||||
September 30, | September 30, | December 31, | ||||||
2019 | 2018 | 2018 | ||||||
(dollars in thousands) | (unaudited) | (unaudited) | (audited) | |||||
Total Assets | $ 488,739 | $ 428,841 | $ 435,574 | |||||
Loans | 406,185 | 340,189 | 354,147 | |||||
Goodwill | 1,654 | - | - | |||||
Deposits | 433,081 | 375,411 | 388,544 | |||||
Shareholder's equity | 48,141 | 44,252 | 44,944 | |||||
Nonperforming Assets: | ||||||||
Accruing troubled debt restructures | $ 708 | $ 738 | $ 731 | |||||
Loans 90 past due and still accruing | - | - | - | |||||
Nonaccrual loans | 1,206 | 3,098 | 2,453 | |||||
Foreclosed properties | - | 167 | - | |||||
Total nonperforming assets | $ 1,914 | $ 4,003 | $ 3,184 | |||||
For the Three Months Ended | For the Nine Months Ended | |||||||
September 30, | September 30, | September 30, | September 30, | |||||
Summary of Operating Results | 2019 | 2018 | 2019 | 2018 | ||||
(dollars in thousands) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||
Pre-allowance for loan loss provision, pre-tax net income | $ 1,585,956 | $ 1,009,170 | $ 3,469,200 | $ 2,824,722 | ||||
Allowance for loan loss provision, pre-tax | 191,866 | 381,913 | 672,515 | 563,913 | ||||
Tax expense | 393,690 | 153,056 | 731,997 | 583,749 | ||||
Net Income | $ 1,000,400 | $ 474,201 | $ 2,064,688 | $ 1,677,060 | ||||
Charge-Offs | $ 21 | $ 13 | $ 164 | $ 122 | ||||
(Recoveries) | (4) | (3) | (21) | (10) | ||||
Net charge-offs | $ 17 | $ 10 | $ 143 | $ 112 | ||||
Per Common Share Data | ||||||||
Basic earnings per share | $0.44 | $0.21 | $0.92 | $0.75 | ||||
Common shares outstanding | 2,251,320 | 2,233,820 | 2,251,320 | 2,233,820 | ||||
Weighted average shares outstanding | 2,251,320 | 2,233,820 | 2,248,653 | 2,233,820 | ||||
Dividends declared | $0.03 | $0.03 | $0.09 | $0.09 | ||||
Book value per share | $21.38 | $19.81 | $21.38 | $19.81 | ||||
Tangible Book Value per Share | $20.65 | $19.81 | $20.65 | $19.81 | ||||
Selected Unaudited Financial Ratios | ||||||||
Return on average assets | 0.83% | 0.43% | 0.59% | 0.58% | ||||
Return on average equity | 8.35% | 3.99% | 5.88% | 5.09% | ||||
Allowance for loan losses to total loans | 0.98% | 0.99% | 0.98% | 0.99% | ||||
Nonperforming assets to total loans | 0.46% | 1.06% | 0.46% | 1.06% | ||||
Net charge-offs to average loans | 0.00% | 0.00% | 0.04% | 0.04% | ||||
Common equity tier 1 to risk-weighted assets | 12.25% | 14.03% | 12.25% | 14.03% | ||||
Tier 1 capital to risk-weighted assets | 12.25% | 14.03% | 12.25% | 14.03% | ||||
Total capital to risk-weighted assets | 13.50% | 15.28% | 13.50% | 15.28% | ||||
Average equity to average assets | 9.99% | 10.32% | 9.97% | 10.32% | ||||
Net interest margin | 3.74% | 3.55% | 3.73% | 3.64% | ||||
Loan to deposit ratio | 94.72% | 91.50% | 94.72% | 91.50% | ||||
SOURCE Community Heritage Financial, Inc.
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