MIDDLETOWN, Md., April 23, 2024 /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 $1.4 million, or $0.48 per diluted share, for the three months ended March 31, 2024, representing an increase of $483 thousand or 52.3%, compared to net income of $923 thousand, or $0.32 per diluted share, for the three months ended December 31, 2023. Net income for the first quarter of 2024 was flat when compared to the $1.4 million, or $0.48 per diluted share, earned during the three months ended March 31, 2023.
Balance Sheet and Asset Quality
Total assets were $1,064.4 million as of March 31, 2024, representing an increase of $75.8 million since December 31, 2023, and an increase of $127.8 million since March 31, 2023. Asset growth during both periods included advances under the Bank Term Funding Program ("BTFP") available through the Federal Reserve Bank ("FRB") totaling $50.0 million. The advances offer the opportunity of a positive arbitrage between the weighted average advance rate of 4.82% and the earnings rate offered by the FRB of 5.40%. The advances were drawn in mid-January 2024, mature in mid-January 2025 and can be repaid anytime without penalty. Asset growth was further fueled by growth in deposits of $26.2 million and $87.1 million since December 31, 2023 and March 31, 2023, respectively. Loans grew to $830.6 million as of March 31, 2024, an increase of $17.7 million, or 8.7% annualized, from December 31, 2023, and $73.0 million, or 9.6%, from March 31, 2023. Asset quality remained strong with non-performing assets to total assets of 0.17% on March 31, 2024, compared to 0.18% on December 31, 2023. The ratio of net charge-offs to average total loans was zero percent for the quarter ended March 31, 2024.
Quarterly Highlights ? Q1 2024 vs. Q4 2023
Quarterly Highlights ? Q1 2024 vs. Q1 2023
Dividend
A dividend of $0.06 per share was declared by the Board of Directors on April 19, 2024, for stockholders of record as of May 3, 2024, and payable on May 10, 2024.
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
Community Heritage Financial , Inc. and Subsidiaries | |||||||
Balance Sheets (unaudited) | |||||||
As of Period End | |||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||
ASSETS | |||||||
Cash and due from banks | $ 76,807,485 | $ 16,664,061 | $ 36,448,539 | $ 14,946,927 | $ 12,820,683 | ||
Securities available for sale, at fair value | 40,267,761 | 40,927,086 | 39,917,313 | 41,460,794 | 43,142,854 | ||
Securities held to maturity | 95,152,132 | 96,111,626 | 97,217,237 | 98,496,558 | 99,914,183 | ||
Less allowance for credit losses | 126,943 | 103,949 | 147,457 | 163,259 | 155,381 | ||
Total securities held to maturity | 95,025,189 | 96,007,677 | 97,069,780 | 98,333,299 | 99,758,802 | ||
Total securities | 135,292,950 | 136,934,763 | 136,987,093 | 139,794,093 | 142,901,656 | ||
Equity securities, at cost | 1,404,600 | 1,363,600 | 1,363,600 | 1,527,600 | 1,740,100 | ||
Loans | 830,604,389 | 812,932,872 | 798,035,073 | 796,931,525 | 757,611,496 | ||
Less allowance for loan credit losses | 8,032,597 | 7,742,297 | 7,337,327 | 8,112,952 | 7,855,981 | ||
Loans, net | 822,571,792 | 805,190,575 | 790,697,746 | 788,818,573 | 749,755,515 | ||
Loans held for sale | 1,443,270 | 1,651,118 | 2,879,397 | 1,923,566 | 1,703,221 | ||
Premises and equipment | 6,164,114 | 6,329,832 | 6,639,595 | 6,805,822 | 6,974,776 | ||
Right of use asset | 2,272,962 | 2,380,555 | 2,498,508 | 2,615,519 | 2,731,604 | ||
Accrued interest receivable | 3,212,907 | 2,972,952 | 2,733,565 | 2,512,795 | 2,405,851 | ||
Deferred tax assets | 4,879,208 | 4,766,376 | 5,289,000 | 5,314,018 | 5,264,879 | ||
Bank owned life insurance | 7,122,335 | 7,172,917 | 6,943,992 | 6,927,341 | 6,875,378 | ||
Goodwill | 1,656,507 | 1,656,507 | 1,656,507 | 1,656,507 | 1,656,507 | ||
Other assets | 1,588,900 | 1,544,870 | 1,556,491 | 1,502,676 | 1,789,682 | ||
Total Assets | $ 1,064,417,030 | $ 988,628,126 | $ 995,694,033 | $ 974,345,437 | $ 936,619,852 | ||
LIABILITIES and SHAREHOLDERS' EQUITY | |||||||
Liabilities | |||||||
Deposits | |||||||
Non-interest-bearing demand | $ 247,549,872 | $ 260,204,859 | $ 248,440,805 | $ 244,342,167 | $ 250,702,470 | ||
Interest-bearing | 655,358,756 | 616,461,031 | 640,593,734 | 606,528,210 | 565,130,161 | ||
Total deposits | 902,908,628 | 876,665,890 | 889,034,539 | 850,870,377 | 815,832,631 | ||
FHLB advances and other borrowings | 65,000,000 | 18,000,000 | 15,000,000 | 32,000,000 | 30,000,000 | ||
Subordinated debt, net | 14,955,152 | 14,932,727 | 14,910,303 | 14,887,879 | 14,865,455 | ||
Lease liabilities | 2,345,426 | 2,450,133 | 2,565,151 | 2,678,348 | 2,789,614 | ||
Accrued interest payable | 1,212,747 | 458,540 | 526,354 | 273,753 | 440,611 | ||
Other liabilities | 5,336,235 | 4,889,735 | 4,644,608 | 5,540,871 | 4,661,833 | ||
Total Liabilities | 991,758,188 | 917,397,025 | 926,680,955 | 906,251,228 | 868,590,144 | ||
Shareholders' Equity | |||||||
Common stock | 29,159 | 29,117 | 29,060 | 29,060 | 29,060 | ||
Additional paid in capital | 41,123,723 | 41,096,972 | 41,035,733 | 40,949,900 | 40,895,863 | ||
Retained earnings | 39,900,518 | 38,669,620 | 37,921,329 | 36,729,931 | 36,287,937 | ||
Accumulated other comprehensive income (loss) | (8,394,558) | (8,564,608) | (9,973,044) | (9,614,682) | (9,183,152) | ||
Total Shareholders' Equity | 72,658,842 | 71,231,101 | 69,013,078 | 68,094,209 | 68,029,708 | ||
Total Liabilities and Shareholders' Equity | $ 1,064,417,030 | $ 988,628,126 | $ 995,694,033 | $ 974,345,437 | $ 936,619,852 | ||
Community Heritage Financial , Inc. and Subsidiaries | |||||||
Selected Financial Data (unaudited) | |||||||
As of Period End | |||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||
Per Share Data | |||||||
Common shares outstanding at period end | 2,915,933 | 2,911,670 | 2,905,973 | 2,905,973 | 2,905,973 | ||
Book value per share | $ 24.92 | $ 24.45 | $ 23.75 | $ 23.43 | $ 23.41 | ||
Tangible book value per share | $ 24.35 | $ 23.88 | $ 23.18 | $ 22.86 | $ 22.84 | ||
Capital (bank consolidated only unless noted otherwise) | |||||||
Common equity tier 1 (CET1) capital | 11.98 % | 12.02 % | 12.15 % | 11.95 % | 12.30 % | ||
Tier 1 capital | 11.98 % | 12.02 % | 12.15 % | 11.95 % | 12.30 % | ||
Total risk based capital | 13.07 % | 13.10 % | 13.21 % | 13.12 % | 13.47 % | ||
Tier 1 leverage ratio | 8.84 % | 9.10 % | 9.34 % | 9.52 % | 9.57 % | ||
Tangible common equity to tangible assets (CHF) | 6.68 % | 7.04 % | 6.78 % | 6.83 % | 7.10 % | ||
Asset Quality Data | |||||||
Non-accrual loans | $ 1,847,747 | $ 1,823,212 | $ 1,882,614 | $ 1,929,248 | $ 2,082,556 | ||
Non-performing assets | $ 1,847,747 | $ 1,823,212 | $ 1,882,614 | $ 1,929,248 | $ 2,082,556 | ||
Non-performing loans to loans | 0.22 % | 0.22 % | 0.24 % | 0.24 % | 0.27 % | ||
Non-performing assets to total assets | 0.17 % | 0.18 % | 0.19 % | 0.20 % | 0.22 % | ||
Allowance for loan credit losses to loans | 0.97 % | 0.95 % | 0.92 % | 1.02 % | 1.04 % | ||
Other Data | |||||||
Loans to deposits ratio | 91.99 % | 92.73 % | 89.76 % | 93.66 % | 92.86 % |
Community Heritage Financial , Inc. and Subsidiaries | |||||||
Statements of Income - Five Quarters (unaudited) | |||||||
Three Months Ended | |||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||
Interest Income | |||||||
Loans, including fees | $ 11,181,544 | $ 10,659,287 | $ 10,139,353 | $ 9,453,437 | $ 9,344,705 | ||
Securities | 772,603 | 754,731 | 763,606 | 767,524 | 734,583 | ||
Fed funds sold and other | 866,559 | 496,210 | 203,553 | 81,306 | 109,705 | ||
Total interest income | 12,820,706 | 11,910,228 | 11,106,512 | 10,302,267 | 10,188,993 | ||
Interest Expense | |||||||
Deposits | 4,703,948 | 4,755,804 | 4,369,856 | 3,459,747 | 2,925,333 | ||
Borrowed funds | 670,916 | 160,901 | 201,754 | 482,469 | 80,458 | ||
Subordinated debt | 238,049 | 238,049 | 238,050 | 238,049 | 238,049 | ||
Total interest expense | 5,612,913 | 5,154,754 | 4,809,660 | 4,180,265 | 3,243,840 | ||
Net interest income | 7,207,793 | 6,755,474 | 6,296,852 | 6,122,002 | 6,945,153 | ||
Provision for credit losses | 267,370 | 275,339 | (842,717) | 260,439 | (440,391) | ||
Net interest income after provision for credit losses | 6,940,423 | 6,480,135 | 7,139,569 | 5,861,563 | 7,385,544 | ||
Non-interest income | |||||||
Service charges on deposits | 237,020 | 209,331 | 202,779 | 187,426 | 187,402 | ||
Earnings on bank-owned life insurance | 211,641 | 95,633 | 8,360 | 43,672 | 50,029 | ||
Gain on sale of fixed assets | - | - | 19,907 | - | - | ||
Mortgage banking revenue | 219,714 | 254,867 | 365,860 | 302,911 | 229,485 | ||
Other | 305,496 | 349,211 | 244,074 | 269,503 | 245,605 | ||
Total non-interest income | 973,871 | 909,042 | 840,980 | 803,512 | 712,521 | ||
Non-interest expense | |||||||
Salaries and employee benefits | 3,344,188 | 3,536,962 | 3,736,317 | 3,286,113 | 3,573,621 | ||
Occupancy and equipment | 864,008 | 948,591 | 842,651 | 815,251 | 991,946 | ||
Legal and professional fees | 288,193 | 206,178 | 242,671 | 294,626 | 185,509 | ||
Advertising | 61,467 | 77,100 | 57,855 | 87,070 | 79,275 | ||
Data processing | 793,519 | 752,980 | 618,593 | 688,229 | 800,986 | ||
FDIC insurance | 185,134 | 190,695 | 163,731 | 130,622 | 154,032 | ||
Loss on sale of fixed assets | - | - | - | - | 3,058 | ||
Other | 558,720 | 471,476 | 485,493 | 566,953 | 462,317 | ||
Total non-interest expense | 6,095,229 | 6,183,982 | 6,147,311 | 5,868,864 | 6,250,744 | ||
Income before income taxes | 1,819,065 | 1,205,195 | 1,833,238 | 796,211 | 1,847,321 | ||
Income tax expense | 413,370 | 282,204 | 467,482 | 179,858 | 457,259 | ||
Net income | $ 1,405,695 | $ 922,991 | $ 1,365,756 | $ 616,353 | $ 1,390,062 | ||
Community Heritage Financial , Inc. and Subsidiaries | |||||||
Per Share Data (unaudited) | |||||||
Three Months Ended | |||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||
Earnings per common share | |||||||
Basic | $ 0.48 | $ 0.32 | $ 0.47 | $ 0.21 | $ 0.48 | ||
Diluted | $ 0.48 | $ 0.32 | $ 0.47 | $ 0.21 | $ 0.48 | ||
Common shares outstanding at period end | 2,915,933 | 2,911,670 | 2,905,973 | 2,905,973 | 2,905,973 | ||
Average common shares outstanding | |||||||
Basic | 2,913,048 | 2,911,254 | 2,905,973 | 2,905,973 | 2,905,973 | ||
Diluted | 2,913,048 | 2,911,254 | 2,905,973 | 2,905,973 | 2,905,973 | ||
Cash dividends paid per common share | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | ||
Community Heritage Financial , Inc. and Subsidiaries | |||||||
Selected Financial Performance Ratios (unaudited) | |||||||
Three Months Ended | |||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||
Return on average assets | 0.53 % | 0.36 % | 0.55 % | 0.26 % | 0.60 % | ||
Return on average equity | 7.81 % | 5.32 % | 7.95 % | 3.59 % | 8.25 % | ||
Net interest margin | 2.80 % | 2.71 % | 2.62 % | 2.61 % | 3.08 % | ||
Yield on interest-earning assets | 4.97 % | 4.78 % | 4.57 % | 4.43 % | 4.52 % | ||
Cost of interest-bearing liabilities | 3.11 % | 2.99 % | 2.91 % | 2.67 % | 2.22 % | ||
Net loan charge-offs to average loans | 0.00 % | 0.00 % | 0.00 % | 0.00 % | 0.00 % |
Community Heritage Financial , Inc. and Subsidiaries | |||||||
Loan Composition (unaudited) | |||||||
As of Period End | |||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||
Commercial real estate: | |||||||
Construction and land development | $ 88,793,186 | $ 89,525,228 | $ 89,980,412 | $ 88,750,860 | $ 76,516,440 | ||
Multifamily | 21,682,394 | 21,784,953 | 22,599,598 | 22,862,108 | 22,904,007 | ||
Farmland | 30,546,050 | 30,821,848 | 28,785,156 | 28,611,754 | 25,698,329 | ||
Other: | |||||||
Owner occupied | 137,654,633 | 136,628,801 | 131,398,708 | 130,090,900 | 133,831,920 | ||
Non-owner occupied | 131,114,323 | 119,979,964 | 122,587,639 | 129,674,501 | 134,387,213 | ||
Residential, including home equity | 284,962,472 | 280,523,837 | 273,884,529 | 265,131,928 | 240,905,733 | ||
Commercial and industrial | 130,972,545 | 128,933,413 | 124,154,237 | 127,334,140 | 118,840,144 | ||
Consumer | 1,369,535 | 1,203,039 | 1,209,100 | 1,143,316 | 1,294,966 | ||
Gross loans | 827,095,138 | 809,401,083 | 794,599,379 | 793,599,507 | 754,378,752 | ||
Net deferred loan costs | 3,509,251 | 3,531,789 | 3,435,694 | 3,332,018 | 3,232,744 | ||
Loans | $ 830,604,389 | $ 812,932,872 | $ 798,035,073 | $ 796,931,525 | $ 757,611,496 |
SOURCE Community Heritage Financial, Inc.
These press releases may also interest you
|