15:27:55 EST Mon 26 Jan 2026
Enter Symbol
or Name
USA
CA



Community Heritage Financial, Inc. Announces Record 2025 Financial Results

2026-01-26 09:57 ET - News Release

Community Heritage Financial, Inc. Announces Record 2025 Financial Results

PR Newswire

MIDDLETOWN, Md., Jan. 26, 2026 /PRNewswire/ -- Community Heritage Financial, Inc. (the "Company" or "CHF") (OTC PK: CMHF), the parent company of Middletown Valley Bank ("MVB" or the "Bank"), reported record net income of $8.7 million, or $2.93 per diluted common share, for the year ended December 31, 2025, an increase of $2.1 million, or 30.6%, in comparison to net income of $6.6 million, or $2.27 per diluted common share, for the year ended December 31, 2024. Return on average assets increased to 0.80% for the year ended December 31, 2025 from 0.62% for the same period in 2024. Net income for the quarter ended December 31, 2025 totaled $2.4 million, or $0.80 per diluted common share, yielding an annualized return on average assets of 0.85%. Compared to the third quarter of 2025, net income increased $434 thousand, or 22.4%. Compared to the fourth quarter of 2024, net income increased $635 thousand, or 36.6%.

Balance Sheet

Assets totaled $1.1 billion as of December 31, 2025, representing an increase of $108.7 million since December 31, 2024. Asset growth during the year was funded by growth in deposits of $76.8 million, or 8.5%, growth in borrowings of $18.0 million and growth in shareholders' equity of $9.8 million, or 12.4%.

Gross loan balances outstanding grew to $927.2 million as of December 31, 2025, representing an increase of $83.2 million, or 9.9% from December 31, 2024. Growth in construction and land development loans, residential loans, which includes home equity loans, non-owner occupied commercial real estate loans, owner occupied commercial real estate loans and commercial and industrial loans of $27.3 million, $25.9 million, $18.0 million, $10.8 million and $5.1 million, respectively, contributed to the annual loan growth. Declines in farmland and multifamily loan balances of $2.4 million and $1.8 million, respectively, offset the growth in other portfolios. The Bank's commercial real estate concentration level was 251% of tier 1 capital plus the allowance for credit losses - loans (the "ACL - loans") as of December 31, 2025.

Asset Quality

The ratio of the ACL - loans to total loans (the "ACL - loans ratio") was 1.06% as of December 31, 2025 compared to 0.98% as of December 31, 2024. The provision for credit losses increased from $607 thousand for the year ended December 31, 2024 to $1.5 million for the same period in 2025. The increases in the ACL - loans ratio and the provision for credit losses reflected a $750 thousand specific loan reserve recorded in the third quarter of 2025 as previously reported. The specific reserve represents 100% of the outstanding balance of a single commercial loan to a customer that uncovered internal theft by one of its owners. As of December 31, 2025 and 2024, non-performing assets totaled $2.0 million, or 0.18% of total assets, and $1.5 million, or 0.15% of total assets, respectively. The ratio of net charge-offs to average total loans was zero percent for the years ended December 31, 2025 and 2024.

Net Interest Income

Net interest income totaled $36.0 million for the year ended December 31, 2025, compared to $30.7 million for the same period in 2024. The net interest margin ("NIM") increased from 2.92% for year ended December 31, 2024 to 3.42% for the same period in 2025. On a quarterly basis, the NIM increased from 3.13% for the fourth quarter of 2024 to 3.40% and 3.56% for the third and fourth quarters of 2025, respectively. The Company's improving NIM reflects continued upward repricing of fixed rate loans and securities booked during a period of low interest rates prior to March 2022 and a falling cost of total funds as the Federal Reserve Bank (the "FRB") began lowering short-term interest rates in September 2024. The Company's yield on earning assets increased from 5.10% for the year ended 2024 to 5.36% for the year ended 2025. The Company's annual cost of total funds decreased from 2.32% in 2024 to 2.07% in 2025.

Noninterest Income

Year ended December 31, 2025 vs. year ended December 31, 2024 - Noninterest income increased $425 thousand. During 2024, the Company repositioned a small percentage of its investment portfolio and incurred a $442 thousand loss on the sale of investment securities, which contributed to the change in noninterest income on a comparative basis. In addition, increases in card and merchant services fees of $110 thousand and other noninterest income of $128 thousand were offset by declines in mortgage banking revenue of $159 thousand and earnings on bank-owned life insurance of $82 thousand. The decline in mortgage banking revenue reflected origination activity challenged by relatively high interest rates and buyers' affordability concerns. The increase in other noninterest income included $75 thousand received for the referrals to a third party for SBA eligible loans and interest rate swap fee income of $51 thousand. The change in earnings on bank-owned life insurance reflected equity market performance.

Fourth Quarter 2025 vs. Fourth Quarter 2024 - Noninterest income increased $8 thousand, exclusive of the $442 thousand loss on the sale of securities recognized during the fourth quarter of 2024. Mortgage banking revenue decreased $43 thousand reflecting market challenges previously noted. Offsetting the decrease in mortgage banking revenue were increases in earnings on bank-owned life insurance of $25 thousand, which was largely based on the performance of equity markets, and card and merchant services fees of $22 thousand, driven by increased activity.

Linked quarter 2025 - Noninterest income increased $30 thousand during the fourth quarter of 2025 compared to the third quarter of 2025. Mortgage banking revenue increased $79 thousand based on increased secondary market sale activity. While origination activity was stronger in the fourth quarter than in the third quarter, overall activity remains challenged by interest rate levels and buyers' affordability concerns. Earnings on bank-owned life insurance decreased $30 thousand, reflecting equity market performance in the fourth quarter relative to the third quarter.

Noninterest Expense

Year ended December 31, 2025 vs. year ended December 31, 2024 - Noninterest expense increased $2.2 million in 2025 compared to 2024. The increase was largely attributable to an increase in salaries and benefits of $1.3 million, an increase in other noninterest expense of $366 thousand, an increase in data and item processing expense of $215 thousand, and an increase in legal and professional fees of $121 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 $130 thousand, donations and sponsorships expense of $91 thousand, and training and development expense of $85 thousand. Data and item processing expense included an increase in fraud related activity of $80 thousand, from $311 thousand in 2024 to $391 thousand in 2025, and higher costs associated with increased transaction activity. The increase in legal and professional fees was largely driven by costs associated with Bank's anticipated need to meet next level FDIC Improvement Act ("FDICIA") compliance. On November 25, 2025, the FDICIA internal control audit threshold was increased from $1 billion in assets to $5 billion in assets, postponing the need for the Bank to meet next level compliance.

Fourth Quarter 2025 vs. Fourth Quarter 2024 - Noninterest expense increased $1.1 million quarter-over-quarter. The increase was driven primarily by increases in salaries and employee benefits of $536 thousand, FDIC insurance of $183 thousand, other noninterest expense of $153 thousand, and data and item processing expense of $174 thousand. The increase in salaries and benefits reflected merit increases, increased incentive compensation accruals and increased health insurance costs. The increase in FDIC insurance included a $200 thousand non-recurring accrual adjustment. Included in the increase in other noninterest expense was increases in donations and sponsorships expense of $67 thousand, ATM and card expense of $27 thousand, and training and development expense of $22 thousand. The increase in data and item processing expense was largely driven by an increase in fraud losses of $122 thousand quarter-over-quarter.

Linked quarter 2025 - Noninterest expense increased $716 thousand on a linked quarter basis. The increase was primarily driven by increases in salaries and benefits, FDIC insurance costs, other noninterest expense, and data and item processing expense of $240 thousand, $223 thousand, $111 thousand, and $102 thousand, respectively. The increase in salaries and benefits reflected increased incentive compensation accruals and health insurance costs. The increase in FDIC insurance included a $200 thousand non-recurring accrual adjustment. The increase in other noninterest expense was driven largely by increased donations and sponsorships of $64 thousand. The increase in data and item processing expense included an increase in fraud losses of $98 thousand quarter-over-quarter.

Dividend

A dividend of $0.08 per common share was declared by the Board of Directors on January 16, 2026, for shareholders of record as of January 30, 2026, and payable on February 6, 2026.

Reclassifications

Reclassifications of certain previously reported amounts have been made to conform to current period reporting. No such reclassifications were significant.

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.

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.

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


                                                                                                       12/31/2025   
        9/30/2025   
        6/30/2025   
        3/31/2025            12/31/2024





 
 ASSETS


                                          
  Cash and due from banks                                  $30,707,438           $28,508,739           $67,210,170           $41,754,293            $16,510,418


                                             Securities available-for-sale, at fair
                                              value                                                    53,681,375            54,390,834            46,712,422            42,514,398             40,481,911


                                          
  Securities held-to-maturity                               86,553,557            87,642,810            88,807,858            90,382,973             91,374,820


                                             Less allowance for credit losses                              78,511                73,338                92,176                93,416                102,896


                                             Total securities held-to-maturity                         86,475,046            87,569,472            88,715,682            90,289,557             91,271,924




                                          
  Total securities                                         140,156,421           141,960,306           135,428,104           132,803,955            131,753,835


                                          
  Equity securities, at cost                                 2,281,700               951,700             1,426,700             1,901,700              1,404,700


                                          
  Loans                                                    930,855,154           899,798,030           872,116,129           863,383,714            847,593,970


                                             Less allowance for credit losses -loans
                                              (1)                                                       9,842,370             9,648,797             8,675,088             8,525,628              8,279,404


                                          
  Loans, net                                               921,012,784           890,149,233           863,441,041           854,858,086            839,314,566


                                          
  Loans held for sale                                        3,935,463             3,782,055             1,445,377               564,685              5,106,956


                                          
  Premises and equipment                                     6,423,885             6,335,780             6,169,205             5,587,862              5,633,510


                                          
  Right of use asset                                         5,014,155             1,691,267             1,816,066             1,939,827              1,911,836


                                          
  Accrued interest receivable                                3,397,155             3,433,569             3,422,469             3,342,795              3,152,505


                                          
  Deferred tax assets                                        4,452,078             4,501,612             4,356,321             4,431,764              4,558,255


                                          
  Bank owned life insurance                                  7,837,986             7,656,529             7,570,668             7,443,531              7,411,319


                                          
  Goodwill                                                   1,656,507             1,656,507             1,656,507             1,656,507              1,656,507


                                          
  Other assets                                               2,022,256             1,836,331             1,666,160             1,781,387              1,826,160




                                          
  
          Total Assets                               $1,128,897,828        $1,092,463,628        $1,095,608,788        $1,058,066,392         $1,020,240,567





 
 LIABILITIES and SHAREHOLDERS' EQUITY




                                          
  
          Liabilities


                                          
  Deposits:


                                          
      Noninterest-bearing demand                          $257,415,232          $255,052,436          $256,355,584          $247,511,094           $251,431,084


                                          
      Interest-bearing                                     727,389,108           727,289,753           721,494,804           685,201,331            656,575,635


                                          
          Total deposits                                   984,804,340           982,342,189           977,850,388           932,712,425            908,006,719


                                             FHLB advances and other borrowings                        33,000,000             5,000,000            15,000,000            25,000,000             15,000,000


                                          
  Subordinated debt, net                                    12,052,944            12,049,882            12,046,819            12,043,757             12,040,695


                                          
  Lease liabilities                                          5,088,540             1,760,706             1,886,828             2,011,829              1,984,920


                                          
  Accrued interest payable                                     473,682               709,739               567,996               730,113                485,160


                                          
  Other liabilities                                          4,627,763             4,306,714             4,321,095             4,380,812              3,694,164




                                                            Total Liabilities                       1,040,047,269         1,006,169,230         1,011,673,126           976,878,936            941,211,658




                                          
  
          Shareholders' Equity


                                          
  Common stock                                                  29,327                29,291                29,289                29,289                 29,198


                                          
  Additional paid-in-capital                                41,649,351            41,588,025            41,469,625            41,351,223             41,331,966


                                          
  Retained earnings                                         52,313,860            50,180,223            48,480,152            46,246,459             44,597,524


                                             Accumulated other comprehensive loss                     (5,141,979)          (5,503,141)          (6,043,404)          (6,439,515)           (6,929,779)




                                                            Total Shareholders' Equity                 88,850,559            86,294,398            83,935,662            81,187,456             79,028,909




                                                        Total Liabilities and Shareholders'
                                                         Equity                                    $1,128,897,828        $1,092,463,628        $1,095,608,788        $1,058,066,392         $1,020,240,567




                                                        (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                                    
     Year Ended


                                               12/31/2025            9/30/2025              6/30/2025         3/31/2025    12/31/2024       12/31/2025      12/31/2024





   Interest Income


      Loans, including fees                   $13,604,427           $13,086,145             $12,597,796        $12,228,538    $12,057,265       $51,516,906      $46,776,805


      Securities                                  994,358               946,231                 888,721            858,632        809,512         3,687,942        3,129,403


      Fed funds sold and
       other bank deposits                        176,658               511,786                 467,029            119,202        548,309         1,274,675        3,806,739


        Total interest income                  14,775,443            14,544,162              13,953,546         13,206,372     13,415,086        56,479,523       53,712,947





   Interest Expense


  
   Deposits                                  4,873,913             5,031,782               4,758,194          4,405,731      4,686,005        19,069,620       19,542,461


      Borrowed funds                               57,799               137,305                 149,325            189,055        380,370           533,484        2,557,988


      Subordinated debt                           207,250               207,249                 207,250            207,250        209,934           828,999          924,082


        Total interest expense                  5,138,962             5,376,336               5,114,769          4,802,036      5,276,309        20,432,103       23,024,531





   Net interest income                         9,636,481             9,167,826               8,838,777          8,404,336      8,138,777        36,047,420       30,688,416



   Provision for credit losses                   124,140               960,847                 148,330            248,558        178,624         1,481,875          606,718



   Net interest income after provision


      for credit losses                         9,512,341             8,206,979               8,690,447          8,155,778      7,960,153        34,565,545       30,081,698





   Noninterest income


      Mortgage banking
       revenue                                    428,177               348,561                 406,440            164,015        470,783         1,347,193        1,505,158


      Card and merchant
       services                                   337,191               333,325                 310,082            281,415        314,785         1,262,013        1,151,964


      Service charges on
       deposits                                   252,477               254,754                 231,856            235,097        262,583           974,184          989,366


      Earnings on bank-
       owned life insurance                        48,166                77,570                 118,847             23,920         23,398           268,503          350,752


      Loss on sale of
       investment securities                            -                                                                   (442,493)                        (442,493)


  
   Other                                        18,737                40,436                  25,959             77,870          5,427           163,002           35,320


        Total noninterest
         income                                 1,084,748             1,054,646               1,093,184            782,317        634,483         4,014,895        3,590,067





   Noninterest expense


      Salaries and employee
       benefits                                 4,101,261             3,861,631               3,660,059          3,847,202      3,565,344        15,470,153       14,194,102


      Occupancy and
       equipment                                  709,382               641,092                 623,512            670,904        661,492         2,644,890        2,580,933


      Data and item
       processing                               1,043,435               940,872                 911,744            845,027        869,267         3,741,078        3,525,294


      Legal and professional
       fees                                       320,853               332,527                 366,768            277,977        291,944         1,298,125        1,176,792


      FDIC insurance                              389,431               166,176                 170,937            142,866        206,376           869,410          807,442


      Advertising                                  74,846                91,883                  79,253            107,375         78,362           353,357          306,194


  
   Other                                       769,525               658,319                 604,861            587,891        616,615         2,620,596        2,254,691


        Total noninterest
         expense                                7,408,733             6,692,500               6,417,134          6,479,242      6,289,400        26,997,609       24,845,448





   Income before income taxes                  3,188,356             2,569,125               3,366,497          2,458,853      2,305,236        11,582,831        8,826,317



   Income tax expense                            820,106               634,729                 898,493            576,217        571,853         2,929,545        2,198,505



   Net income                                 $2,368,250            $1,934,396              $2,468,004         $1,882,636     $1,733,383        $8,653,286       $6,627,812




                                            
  
          Community Heritage Financial, Inc. and Subsidiaries




                                                       
        Per Share Data (unaudited)




                                                                         
          Three Months Ended                                    
     Year Ended


                                               12/31/2025            9/30/2025              6/30/2025         3/31/2025    12/31/2024       12/31/2025      12/31/2024





   Earnings per common share


  
   Basic                                         $0.81                 $0.66                   $0.84              $0.64          $0.59             $2.96            $2.27


  
   Diluted                                       $0.80                 $0.66                   $0.84              $0.64          $0.59             $2.93            $2.27



   Common shares outstanding at period end     2,932,680             2,929,053               2,928,888          2,928,888      2,919,797         2,932,680        2,919,797



   Average common shares outstanding


  
   Basic                                     2,932,562             2,929,012               2,928,888          2,922,624      2,919,677         2,928,301        2,916,191


  
   Diluted                                   2,956,327             2,952,922               2,944,207          2,937,508      2,934,754         2,948,966        2,924,791



   Cash dividends paid per common share            $0.08                 $0.08                   $0.08              $0.08          $0.06             $0.32            $0.24

                                                           
          
            Community Heritage Financial, Inc. and Subsidiaries




                                                                         
          Selected Financial Data (unaudited)




                                                                                                                               
          As of and for the Three Months Ended                                                  As of and for the Year Ended


                                                                                                            12/31/2025              9/30/2025              6/30/2025              3/31/2025              12/31/2024                   12/31/2025             12/31/2024





 
 Per Share Data


                                                       
 Common shares outstanding                           2,932,680               2,929,053               2,928,888               2,928,888                2,919,797                     2,932,680               2,919,797


                                                       
 Book value per share                                   $30.30                  $29.46                  $28.66                  $27.72                   $27.07                        $30.30                  $27.07


                                                         Tangible book value per share                          $29.73                  $28.90                  $28.09                  $27.15                   $26.50                        $29.73                  $26.50





 
 Capital (bank consolidated unless noted otherwise)


                                                         Common equity tier 1 (CET1) capital                   11.96 %                12.15 %                12.28 %                12.11 %                 12.12 %                      11.96 %                12.12 %


                                                       
 Tier 1 capital                                        11.96 %                12.15 %                12.28 %                12.11 %                 12.12 %                      11.96 %                12.12 %


                                                       
 Total risk based capital                              13.14 %                13.37 %                13.41 %                13.23 %                 13.24 %                      13.14 %                13.24 %


                                                       
 Tier 1 leverage ratio                                  9.48 %                 9.32 %                 9.29 %                 9.47 %                  9.06 %                       9.48 %                 9.06 %


                                                         Tangible common equity to tangible
                                                          assets (CHF)                                          7.74 %                 7.76 %                 7.52 %                 7.53 %                  7.60 %                       7.74 %                 7.60 %





 
 Asset Quality Data


                                                       
 Non-accrual loans                                  $2,025,128              $2,044,469              $1,442,329              $1,488,718               $1,525,759                    $2,025,128              $1,525,759


                                                       
 Non-performing assets                              $2,025,128              $2,044,469              $1,442,329              $1,488,718               $1,525,759                    $2,025,128              $1,525,759


                                                         Non-performing loans to loans                          0.22 %                 0.23 %                 0.17 %                 0.17 %                  0.18 %                       0.22 %                 0.18 %


                                                         Non-performing assets to total assets                  0.18 %                 0.19 %                 0.13 %                 0.14 %                  0.15 %                       0.18 %                 0.15 %


                                                         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                            1.06 %                 1.07 %                 0.99 %                 0.99 %                  0.98 %                       1.06 %                 0.98 %





 
 Other Data


                                                       
 Return on average assets                               0.85 %                 0.70 %                 0.92 %                 0.74 %                  0.65 %                       0.80 %                 0.62 %


                                                       
 Return on average equity                              10.63 %                 8.96 %                11.93 %                 9.47 %                  8.77 %                      10.25 %                 8.81 %


                                                       
 Net interest margin                                    3.56 %                 3.40 %                 3.37 %                 3.36 %                  3.13 %                       3.42 %                 2.92 %


                                                         Yield on interest-earning assets                       5.45 %                 5.38 %                 5.32 %                 5.29 %                  5.16 %                       5.36 %                 5.10 %


                                                         Cost of interest-bearing liabilities                   2.73 %                 2.85 %                 2.80 %                 2.78 %                  2.93 %                       2.79 %                 3.09 %


                                                       
 Loans to deposits ratio                               94.52 %                91.60 %                89.19 %                92.57 %                 93.35 %                      94.52 %                93.35 %




                                                                      (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


                                                                                         
          December 31, 2025                                    
          September 30, 2025                              
       December 31, 2024


                                                                              Average Balance                   Interest                   Yield /     Average Balance                  Interest        Yield /       Average Balance         Interest          Yield /
                                                                                                                                       Rate                                                         Rate                                                    Rate





 
 ASSETS


                                         
 Interest-earning assets:


                                         
 Loans, including LHFS                 $912,725,275                 $13,604,427                     5.92 %        $883,763,296                $13,086,145          5.89 %          $845,597,778       $12,057,265            5.67 %


                                         
 Securities                             141,711,495                     994,358                     2.81 %         139,178,904                    946,231          2.72 %           137,715,051           809,512            2.35 %


                                           Fed funds sold and other bank
                                            deposits                               23,885,027                     176,658                     2.93 %          51,010,040                    511,786          3.98 %            50,564,597           548,309            4.31 %


                                                                                1,078,321,797                  14,775,443                     5.45 %       1,073,952,240                 14,544,162          5.38 %         1,033,877,426        13,415,086            5.16 %




                                           Noninterest-earning assets              22,566,196                                                                22,561,809                                                      22,661,279




                                         
 Total Assets                        $1,100,887,993                                                            $1,096,514,049                                                  $1,056,538,705





 
 LIABILITIES AND SHAREHOLDERS' EQUITY


                                           Interest-bearing liabilities:


                                         
 Demand deposits                       $543,210,487                  $3,171,644                     2.32 %        $541,428,761                 $3,332,702          2.44 %          $518,306,801        $3,253,566            2.50 %


                                         
 Time deposits                          185,466,889                   1,702,269                     3.64 %         184,562,867                  1,699,080          3.65 %           152,086,436         1,432,439            3.75 %


                                               Interest-bearing deposits          728,677,376                   4,873,913                     2.65 %         725,991,628                  5,031,782          2.75 %           670,393,237         4,686,005            2.78 %


                                         
 Borrowings                              17,706,873                     265,049                     5.98 %          23,176,928                    344,554          5.93 %            46,286,930           590,304            5.08 %


                                               Interest-bearing liabilities       746,384,249                   5,138,962                     2.73 %         749,168,556                  5,376,336          2.85 %           716,680,167         5,276,309            2.93 %


                                           Noninterest-bearing liabilities:


                                         
 Demand deposits                        259,251,011                                                               255,304,997                                                     253,879,418


                                         
 Other                                    6,860,187                                                                 6,424,548                                                       7,305,326




                                         
 Total Liabilities                    1,012,495,447                                                             1,010,898,101                                                     977,864,911




                                         
 Cost of Total Deposits                                                                           1.96 %                                                       2.03 %                                                  2.02 %


                                           Cost of Total Funds (interest-


                                             bearing liabilities plus non-


                                             interest-bearing deposits)                                                                     2.02 %                                                       2.09 %                                                  2.16 %




                                         
 Shareholders' equity                    88,392,546                                                                85,615,948                                                      78,673,794




                                           Total Liabilities and
                                            Shareholders Equity                $1,100,887,993                                                            $1,096,514,049                                                  $1,056,538,705




                                           Net interest income /NIM                                           $9,636,481                     3.56 %                                    $9,167,826          3.40 %                             $8,138,777            3.13 %

                                               
          
            Community Heritage Financial, Inc. and Subsidiaries




                                                     
          Condensed Average Balance Sheet Analysis (unaudited)




                                                                                                                                     
       Year Ended


                                                                                                    
          December 31, 2025                           
          December 31, 2024


                                                                                         Average Balance                   Interest        Yield /      Average Balance                   Interest        Yield /
                                                                                                                                       Rate                                                           Rate





 
 ASSETS


                                         
 Interest-earning assets:


                                         
 Loans                                            $881,496,075                 $51,516,906          5.84 %         $839,224,673                 $46,776,805          5.57 %


                                         
 Securities                                        137,877,083                   3,687,942          2.67 %          136,828,070                   3,129,403          2.29 %


                                           Fed funds sold and other bank
                                            deposits                                          34,897,298                   1,274,675          3.65 %           76,579,067                   3,806,739          4.97 %


                                                                                           1,054,270,456                  56,479,523          5.36 %        1,052,631,810                  53,712,947          5.10 %




                                           Noninterest-earning assets                         22,104,726                                                      23,635,945




                                         
 Total Assets                                   $1,076,375,182                                                  $1,076,267,755





 
 LIABILITIES AND SHAREHOLDERS' EQUITY


                                           Interest-bearing liabilities:


                                         
 Demand deposits                                  $531,036,226                 $12,615,504          2.38 %         $531,478,268                 $14,342,609          2.70 %


                                         
 Time deposits                                     176,075,443                   6,454,116          3.67 %          142,704,542                   5,199,852          3.64 %


                                               Interest-bearing deposits                     707,111,669                  19,069,620          2.70 %          674,182,810                  19,542,461          2.90 %


                                         
 Borrowings                                         24,563,215                   1,362,483          5.55 %           69,941,302                   3,482,070          4.98 %


                                               Interest-bearing liabilities                  731,674,884                  20,432,103          2.79 %          744,124,112                  23,024,531          3.09 %


                                           Noninterest-bearing liabilities:


                                         
 Demand deposits                                   253,421,861                                                     249,951,973


                                         
 Other                                               6,869,084                                                       6,944,062




                                         
 Total Liabilities                                 991,965,829                                                   1,001,020,147




                                         
 Cost of Total Deposits                                                                           1.99 %                                                         2.11 %


                                           Cost of Total Funds (interest-


                                             bearing liabilities plus non-


                                             interest-bearing deposits)                                                                     2.07 %                                                         2.32 %




                                         
 Shareholders' equity                               84,409,353                                                      75,247,608




                                           Total Liabilities and
                                            Shareholders Equity                           $1,076,375,182                                                  $1,076,267,755




                                           Net interest income /NIM                                                     $36,047,420          3.42 %                                     $30,688,416          2.92 %

                                    
          
            Community Heritage Financial, Inc. and Subsidiaries




                                                
          Loan and Deposit Composition (unaudited)




                                                                                                                
        As of Period End


                                                                                   12/31/2025              9/30/2025            6/30/2025      3/31/2025       12/31/2024





   
            Loans:



   Commercial real estate:


      Construction and
       land development                                                           $87,098,819             $80,671,698           $67,819,407     $65,421,754       $59,761,206


      Multifamily                                                                  23,416,919              22,749,443            22,989,449      24,142,268        25,185,498


      Farmland                                                                     30,057,354              29,121,486            32,872,235      32,376,907        32,424,255


  
   Other:


                                                     Owner occupied                 147,006,921             142,991,662           139,335,615     143,451,648       136,172,517


                                                     Non-owner occupied             177,115,227             170,462,324           164,434,003     163,089,171       159,150,227





   Residential, including home equity                      322,126,792              314,145,221             307,500,247           298,829,304     296,196,340



   Commercial and industrial                               139,246,435              135,174,298             132,669,094           131,591,369     134,164,953



   Consumer                                                                        1,181,301                 868,300               847,668         915,551         1,036,859


                                                     Gross loans                    927,249,768             896,184,432           868,467,718     859,817,972       844,091,855


                                                     Net deferred loan
                                                      costs                           3,605,386               3,613,598             3,648,411       3,565,742         3,502,115


                                                     Total Loans                   $930,855,154            $899,798,030          $872,116,129    $863,383,714      $847,593,970




                 Deposits:



   Noninterest-bearing demand                             $257,415,232             $255,052,436            $256,355,584          $247,511,094    $251,431,084



   Interest-bearing:


      NOW (1)                                                                     209,645,963             210,272,863           203,461,544     193,760,532       194,682,425


      Savings                                                                      71,859,873              71,308,729            73,765,147      72,670,367        69,979,571


      Money Market                                                                262,624,901             259,265,676           260,797,600     251,803,391       240,320,055


  
   Time                                                                        183,258,371             186,442,485           183,470,513     166,967,041       151,593,584


                                                     Total interest-
                                                      bearing                       727,389,108             727,289,753           721,494,804     685,201,331       656,575,635


                                                     Total Deposits                $984,804,340            $982,342,189          $977,850,388    $932,712,425      $908,006,719




                   (1) Includes demand transaction accounts enrolled in the Bank's reciprocal deposit
                    program.

                                                  
 
     Community Heritage Financial, Inc. and Subsidiaries




                                                      
        Reclassifications (unaudited)




                                                                                     
          As of Period End


                                                        12/31/2025              9/30/2025              6/30/2025   3/31/2025    12/31/2024







 Occupancy and equipment as previously reported        $6,437,225              $6,354,368              $6,196,774   $5,628,103     $5,688,187



 Reclassify software                                       13,340                  18,588                  27,569       40,241         54,677



 Occupancy and equipment as reported                   $6,423,885              $6,335,780              $6,169,205   $5,587,862     $5,633,510





 Other assets as previously reported                   $2,008,916              $1,817,743              $1,638,591   $1,741,146     $1,771,483



 Reclassify software                                       13,340                  18,588                  27,569       40,241         54,677



 Other assets as reported                              $2,022,256              $1,836,331              $1,666,160   $1,781,387     $1,826,160




                                                                                    
          Three Months Ended                              
     Year Ended


                                                        12/31/2025              9/30/2025              6/30/2025   3/31/2025    12/31/2024       12/31/2025      12/31/2024





 Occupancy and equipment as previously reported          $981,764                $913,042                $848,881     $925,091       $906,738        $3,668,778       $3,541,539



 Reclassify software expense                              272,382                 271,950                 225,369      254,187        245,246         1,023,888          960,606



 Occupancy and equipment as reported                     $709,382                $641,092                $623,512     $670,904       $661,492        $2,644,890       $2,580,933





 Data and item processing as previously reported         $771,053                $668,922                $686,375     $590,840       $624,021        $2,717,190       $2,564,688



 Reclassify software expense                              272,382                 271,950                 225,369      254,187        245,246         1,023,888          960,606



 Data and item processing as reported                  $1,043,435                $940,872                $911,744     $845,027       $869,267        $3,741,078       $3,525,294

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SOURCE Community Heritage Financial, Inc.

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