Community Heritage Financial, Inc. Reports 54% Increase in Earnings for the Year Ended 2024

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Jan 27, 2025, 09:16 ET

MIDDLETOWN, Md., Jan. 27, 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 $6.6 million, or $2.27 per diluted share, for the year ended December 31, 2024, representing an increase of $2.3 million, or 54.3%, over net income of $4.3 million, or $1.48 per diluted share, reported for the year ended December 31, 2023. Fourth quarter 2024 net income was $1.7 million, a decrease of $314 thousand compared to third quarter 2024 net income of $2.0 million and an increase of $810 thousand compared to $923 thousand earned in the fourth quarter of 2023.

Balance Sheet

Assets totaled $1.02 billion as of December 31, 2024, representing an increase of $31.7 million since December 31, 2023, and a decrease of $78.0 million since September 30, 2024. During the period of mid-January 2024 through early November 2024, advances drawn under the Bank Term Funding Program ("BTFP") available through the Federal Reserve Bank ("FRB") totaling $50.0 million impacted asset balances. The advances offered 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% through September 18, 2024 and 4.90% from that time through early November 2024. The Bank repaid the advances immediately prior to the November meeting of the FRB, at which the FRB reduced short-term interest rates eliminating the arbitrage opportunity.

An increase in interest-bearing deposits of $40.1 million, or 6.5%, offset by a decline in noninterest-bearing deposits of $8.8 million, funded asset growth since December 31, 2023. Interest-bearing deposit growth of $40.1 million included growth in NOW account balances of $30.1 million, which included $40.7 million in balances reacquired in January 2024 after having been sold in December 2023. The NOW product includes interest-bearing demand transaction accounts enrolled in the Bank's reciprocal deposit program, which allows customers the ability to expand FDIC insurance coverage to balances greater than $250,000. In addition, time deposits grew $20.9 million while money market balances fell $8.6 million, and savings account balances fell $2.4 million. Migration to higher cost deposits throughout the year reflected customers taking advantage of the significant rise in interest rates and an inverted yield curve for most of the period.

The decline in assets since September 30, 2024 reflected the repayment of $50 million in BTFP advances, a decline in NOW account balances of $29.2 million, offset by growth in noninterest-bearing balances of $4.5 million.

Loan balances outstanding grew to $847.6 million as of December 31, 2024, representing an increase of $34.7 million, or 4.3% from December 31, 2023. Loan balances outstanding were little changed compared to $847.5 million as of September 30, 2024. Non-owner occupied commercial real estate loans, residential real estate, including home equity loans, commercial and industrial loans and multifamily loans grew $39.2 million, $15.7 million, $5.2 million and $3.4 million, respectively, during the year ended December 31, 2024. A decline in construction and land development loans of $29.8 million during the same period offset the growth in other loan portfolios.

Net Interest Income

Net interest income totaled $30.7 million during the year ended December 31, 2024, compared to $26.1 million during the same period of 2023. The net interest margin ("NIM") increased from 2.76% for the year ended 2023 to 2.92% for the year ended 2024. The FRB's decision to increase short-term rates to combat inflation in March 2022 pressured the Company's NIM 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, increasing to 2.72% during the fourth quarter of 2023, and to 2.80%, 2.83%, 2.90% and 3.13% during the first, second, third and fourth quarters of 2024, respectively. Interest rate cuts initiated by the FRB beginning in September contributed to the improvement in the NIM during the fourth quarter. In addition to an improving NIM, an increase in average interest-earning assets contributed to the growth in net interest income. Average interest-earning assets increased from $946.4 million in 2023 to $1.05 billion in 2024. While an increase in core deposits primarily funded growth in average interest-earning assets, the $50.0 million in advances from the FRB noted above also contributed.

Noninterest Income

Linked quarter 2024 – Noninterest income decreased $509 thousand during the fourth quarter of 2024 compared to the third quarter of 2024. In December, the Company repositioned its investment portfolio, selling $8.1 million of investments securities available-for-sale with a book yield of 1.67% at a pretax loss of $442 thousand with the intent to reinvest at a higher yield by the end of January 2025. As of December 31, 2024, $4.0 million in proceeds had been reinvested at yields of 5.00% or greater. Earnings on bank-owned life insurance decreased $64 thousand with lower investment returns.

Fourth Quarter 2024 vs. Fourth Quarter 2023 – Noninterest income decreased $274 thousand. An increase in mortgage banking revenue of $214 thousand reflecting higher mortgage origination and sale activity partially offset the pretax loss on the sale of investment securities of $442 thousand previously discussed.

Year ended December 31, 2024 vs. Year ended December 31, 2023 – Noninterest income increased $328 thousand for the year compared to the same period in 2023. Mortgage banking revenue increased $345 thousand with increased mortgage origination and sale activity. Service charges on deposits increased $202 thousand as the Bank focused on enrollment of commercial customers in cash management services to mitigate the risk of fraudulent activity. Earnings on bank-owned life insurance increased $153 thousand and included receipt of insurance proceeds totaling $138 thousand in the first quarter of 2024. Card and merchant services increased $52 thousand with increased activity. The investment losses previously discussed offset these increases.

Noninterest Expense

Linked quarter 2024 – Noninterest expense increased $104 thousand on a linked quarter basis. The net increase included increases in data and item processing expense of $132 thousand, donations of $52 thousand and legal and professional fees of $50 thousand, offset by a decrease in salaries and employee benefits of $131 thousand. Data and item processing expense increased as the third quarter included the recovery of several larger fraud losses from prior periods. Donations increased with year-end activity. The increase in legal and professional fees was primarily the result of the timing of third-party services performed. The decline in salaries and employee benefits resulted from lower employee benefit costs.

Fourth Quarter 2024 vs. Fourth Quarter 2023 – Noninterest expense increased $106 thousand quarter over quarter. The net increase included an increase in legal and professional fees of $86 thousand, reflecting increased third-party services associated with the Bank's transition to the more rigorous requirements of the Federal Deposit Insurance Corporation Improvement Act ("FDICIA").

Year ended December 31, 2024 vs. Year ended December 31, 2023– Noninterest expense increased $398 thousand in 2024 compared to 2023. Increases in legal and professional fees of $248 thousand and FDIC insurance cost of $168 thousand contributed to the increase in noninterest expense. Noninterest expense as a percentage of average assets improved from 2.52% in 2023 to 2.31% in 2024.

Asset Quality

Asset quality remained strong with non-performing assets to total assets of 0.15% on December 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 December 31, 2024. While asset quality metrics remain strong, the potential of sticky inflation and long-term rates higher for longer influencing unemployment pushed the allowance for credit losses as a percentage of total loans from .96% as of September 30, 2024 to .98% as of December 31, 2024. As a result, the Bank recorded a provision for credit losses of $179 thousand during the fourth quarter compared to a recovery of credit losses of $7 thousand recorded in the third quarter of 2024.

Dividend

The Board of Directors declared a dividend of $0.08 per common share on January 17, 2025, payable on February 7, 2025 to stockholders of record as of January 31, 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. 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 may include these forward-looking statements. 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
			12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023

ASSETS
	Cash and due from banks		$ 16,510,418	$ 90,485,075	$ 91,988,101	$ 76,807,485	$ 16,664,061
	Securities available-for-sale, at fair value		40,481,911	43,803,206	39,518,549	40,267,761	40,927,086
	Securities held-to-maturity		91,374,820	92,558,298	93,944,321	95,152,132	96,111,626
		Less allowance for credit losses	102,896	110,386	118,787	126,943	103,949
		Total securities held-to-maturity	91,271,924	92,447,912	93,825,534	95,025,189	96,007,677

		Total securities	131,753,835	136,251,118	133,344,083	135,292,950	136,934,763
	Equity securities, at cost		1,404,700	1,404,600	1,404,600	1,404,600	1,363,600
	Loans		847,593,970	847,539,088	841,043,351	830,604,389	812,932,872
		Less allowance for loan credit losses	8,279,404	8,167,602	8,186,862	8,032,597	7,742,297
		Loans, net	839,314,566	839,371,486	832,856,489	822,571,792	805,190,575
	Loans held for sale		5,106,956	4,591,950	4,739,191	1,443,270	1,651,118
	Premises and equipment		5,688,187	5,805,983	6,010,649	6,164,114	6,329,832
	Right of use asset		1,911,836	2,031,653	2,152,804	2,272,962	2,380,555
	Accrued interest receivable		3,152,505	3,124,150	3,360,417	3,212,907	2,972,952
	Deferred tax assets		4,558,255	4,568,943	4,870,431	4,879,208	4,766,376
	Bank owned life insurance		7,411,319	7,379,630	7,159,381	7,122,335	7,172,917
	Goodwill		1,656,507	1,656,507	1,656,507	1,656,507	1,656,507
	Other assets		1,771,483	1,660,574	1,565,443	1,588,900	1,544,870

		Total Assets	$ 1,020,240,567	$ 1,098,331,669	$ 1,091,108,096	$ 1,064,417,030	$ 988,628,126

LIABILITIES and SHAREHOLDERS' EQUITY

	Liabilities
		Deposits:
		Noninterest-bearing demand	$ 251,431,084	$ 246,907,558	$ 248,150,379	$ 247,549,872	$ 260,204,859
		Interest-bearing	656,575,635	685,892,223	679,484,492	655,358,756	616,461,031
		Total deposits	908,006,719	932,799,781	927,634,871	902,908,628	876,665,890
		FHLB advances and other borrowings	15,000,000	65,000,000	65,000,000	65,000,000	18,000,000
		Subordinated debt, net	12,040,695	15,000,000	14,977,576	14,955,152	14,932,727
		Lease liabilities	1,984,920	2,105,649	2,226,547	2,345,426	2,450,133
		Accrued interest payable	485,160	2,468,369	1,633,334	1,212,747	458,540
		Other liabilities	3,694,164	3,662,903	5,441,467	5,336,235	4,889,735

		Total Liabilities	941,211,658	1,021,036,702	1,016,913,795	991,758,188	917,397,025

	Shareholders' Equity
		Common stock	29,198	29,159	29,159	29,159	29,117
		Additional paid-in-capital	41,331,966	41,284,421	41,204,072	41,123,723	41,096,972
		Retained earnings	44,597,524	43,039,340	41,167,218	39,900,518	38,669,620
		Accumulated other comprehensive loss	(6,929,779)	(7,057,953)	(8,206,148)	(8,394,558)	(8,564,608)

		Total Shareholders' Equity	79,028,909	77,294,967	74,194,301	72,658,842	71,231,101

		Total Liabilities and Shareholders' Equity	$ 1,020,240,567	$ 1,098,331,669	$ 1,091,108,096	$ 1,064,417,030	$ 988,628,126

Community Heritage Financial , Inc. and Subsidiaries

Selected Financial Data (unaudited)

			As of Period End
			12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023

Per Share Data
	Common shares outstanding at period end		2,919,797	2,915,933	2,915,933	2,915,933	2,911,670
	Book value per share		$ 27.07	$ 26.51	$ 25.44	$ 24.92	$ 24.45
	Tangible book value per share		$ 26.50	$ 25.94	$ 24.88	$ 24.35	$ 23.88

Capital (bank consolidated only unless noted otherwise)
	Common equity tier 1 (CET1) capital		12.12 %	12.27 %	11.98 %	11.99 %	12.02 %
	Tier 1 capital		12.12 %	12.27 %	11.98 %	11.99 %	12.02 %
	Total risk based capital		13.24 %	13.36 %	13.07 %	13.07 %	13.10 %
	Tier 1 leverage ratio		9.06 %	8.90 %	8.69 %	8.84 %	9.10 %
	Tangible common equity to tangible assets (CHF)		7.60 %	6.90 %	6.66 %	6.68 %	7.05 %

Asset Quality Data
	Non-accrual loans		$ 1,525,759	$ 1,566,138	$ 1,798,530	$ 1,847,747	$ 1,823,212
	Non-performing assets		$ 1,525,759	$ 1,566,138	$ 1,798,530	$ 1,847,747	$ 1,823,212
	Non-performing loans to loans		0.18 %	0.18 %	0.21 %	0.22 %	0.22 %
	Non-performing assets to total assets		0.15 %	0.14 %	0.16 %	0.17 %	0.18 %
	Allowance for loan credit losses to loans		0.98 %	0.96 %	0.96 %	0.97 %	0.95 %

Other Data
	Loans to deposits ratio		93.35 %	90.86 %	90.67 %	91.99 %	92.73 %

Community Heritage Financial , Inc. and Subsidiaries

Statements of Income (unaudited)

			Three Months Ended					Year Ended

			12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023	12/31/2024	12/31/2023

Interest Income
	Loans, including fees		$ 12,057,265	$ 12,066,857	$ 11,471,139	$ 11,181,544	$ 10,659,287	$ 46,776,805	$ 39,596,735
	Securities		783,560	747,753	740,308	747,341	754,731	3,018,962	3,020,444
	Fed funds sold and other		574,261	1,127,815	1,323,283	891,821	496,210	3,917,180	890,774
		Total interest income	13,415,086	13,942,425	13,534,730	12,820,706	11,910,228	53,712,947	43,507,953

Interest Expense
	Deposits		4,686,005	5,146,858	5,005,650	4,703,948	4,755,804	19,542,461	15,510,740
	Borrowed funds		380,370	756,653	750,049	670,916	160,901	2,557,988	925,582
	Subordinated debt		209,934	238,049	238,050	238,049	238,049	924,082	952,197
		Total interest expense	5,276,309	6,141,560	5,993,749	5,612,913	5,154,754	23,024,531	17,388,519

Net interest income			8,138,777	7,800,865	7,540,981	7,207,793	6,755,474	30,688,416	26,119,434
Provision for (recovery of) credit losses			178,624	(7,396)	168,120	267,370	275,339	606,718	(747,330)
Net interest income after provision
	for credit losses		7,960,153	7,808,261	7,372,861	6,940,423	6,480,135	30,081,698	26,866,764

Noninterest income
	Mortgage banking revenue		471,510	505,717	280,682	247,976	257,316	1,505,885	1,160,542
	Card and merchant services		314,785	294,243	285,572	257,364	346,002	1,151,964	1,100,214
	Service charges on deposits		262,583	252,406	237,357	237,020	209,331	989,366	786,938
	Earnings on bank-owned life insurance		23,398	86,958	28,755	211,641	95,633	350,752	197,694
	Loss on sale of investment securities		(442,493)	-	-	-	-	(442,493)	-
	Other		5,427	5,022	5,001	19,870	807	35,320	17,656
		Total noninterest income	635,210	1,144,346	837,367	973,871	909,042	3,590,794	3,263,044

Noninterest expense
	Salaries and employee benefits		3,565,344	3,696,105	3,588,465	3,344,188	3,536,962	14,194,102	14,133,013
	Occupancy and equipment		906,738	901,283	869,510	864,008	948,591	3,541,539	3,598,439
	Data and item processing		624,021	492,294	654,854	793,519	752,980	2,564,688	2,860,788
	Legal and professional fees		291,944	242,411	354,244	288,193	206,178	1,176,792	928,984
	FDIC insurance		206,376	210,789	205,143	185,134	190,695	807,442	639,080
	Advertising		78,362	93,129	73,236	61,467	77,100	306,194	301,300
	Other		617,342	550,529	528,827	558,720	471,476	2,255,418	1,986,239
		Total noninterest expense	6,290,127	6,186,540	6,274,279	6,095,229	6,183,982	24,846,175	24,447,843

Income before income taxes			2,305,236	2,766,067	1,935,949	1,819,065	1,205,195	8,826,317	5,681,965
Income tax expense			571,853	718,989	494,293	413,370	282,204	2,198,505	1,386,803
Net income			$ 1,733,383	$ 2,047,078	$ 1,441,656	$ 1,405,695	$ 922,991	$ 6,627,812	$ 4,295,162

Community Heritage Financial , Inc. and Subsidiaries

Per Share Data (unaudited)

			Three Months Ended					Year Ended
			12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023	12/31/2024	12/31/2023

Earnings per common share
	Basic		$ 0.59	$ 0.70	$ 0.49	$ 0.48	$ 0.32	$ 2.27	$ 1.48
	Diluted		$ 0.59	$ 0.70	$ 0.49	$ 0.48	$ 0.32	$ 2.27	$ 1.48
Common shares outstanding at period end			2,919,797	2,915,933	2,915,933	2,915,933	2,911,670	2,919,797	2,911,670
Average common shares outstanding
	Basic		2,919,677	2,915,933	2,913,048	2,913,048	2,911,254	2,916,191	2,907,400
	Diluted		2,934,754	2,927,377	2,916,951	2,913,048	2,911,254	2,924,791	2,907,400
Cash dividends paid per common share			$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.24	$ 0.24

Community Heritage Financial , Inc. and Subsidiaries

Selected Financial Performance Ratios (unaudited)

			Three Months Ended					Year Ended
			12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023	12/31/2024	12/31/2023

Return on average assets			0.65 %	0.74 %	0.53 %	0.53 %	0.36 %	0.62 %	0.44 %
Return on average equity			8.77 %	10.66 %	7.84 %	7.81 %	5.22 %	8.81 %	6.22 %
Net interest margin			3.13 %	2.90 %	2.83 %	2.80 %	2.72 %	2.92 %	2.76 %
Yield on interest-earning assets			5.16 %	5.21 %	5.09 %	4.97 %	4.80 %	5.10 %	4.60 %
Cost of interest-bearing liabilities			2.93 %	3.22 %	3.19 %	3.08 %	2.98 %	3.09 %	2.70 %
Net loan charge-offs to average loans			0.00 %	0.00 %	0.00 %	0.00 %	0.00 %	0.00 %	0.00 %

Community Heritage Financial , Inc. and Subsidiaries

Condensed Average Balance Sheet Analysis (unaudited)

			Three Months Ended
			December 31, 2024			September 30, 2024			December 31, 2023
			Average Balance	Interest	Yield / Rate	Average Balance	Interest	Yield / Rate	Average Balance	Interest	Yield / Rate
			Average Balance	Interest	Yield / Rate	Average Balance	Interest	Yield / Rate	Average Balance	Interest	Yield / Rate
ASSETS
	Interest-earning assets:
		Loans, including LHFS	$ 845,597,778	$12,057,265	5.67 %	$ 847,572,666	$12,066,857	5.66 %	$ 808,993,464	$10,659,287	5.23 %
		Securities	136,310,407	783,560	2.30 %	134,590,576	747,753	2.22 %	136,643,313	754,731	2.21 %
		Other	51,969,241	574,261	4.40 %	88,296,850	1,127,815	5.08 %	40,040,220	496,210	4.92 %
			1,033,877,426	13,415,086	5.16 %	1,070,460,092	13,942,425	5.18 %	985,676,997	11,910,228	4.80 %

	Noninterest-earning assets		22,661,279			23,724,580			27,181,195

		Total Assets	$ 1,056,538,705			$ 1,094,184,672			$ 1,012,858,192

LIABILITIES AND SHAREHOLDERS' EQUITY
	Interest-bearing liabilities:
		Demand deposits	$ 518,306,801	$ 3,253,566	2.50 %	$ 534,621,187	$ 3,732,942	2.78 %	$ 528,989,271	$ 3,701,997	2.78 %
		Time deposits	152,086,436	1,432,439	3.75 %	150,648,796	1,413,916	3.73 %	126,378,474	1,053,807	3.31 %
		Interest-bearing deposits	670,393,237	4,686,005	2.78 %	685,269,983	5,146,858	2.99 %	655,367,745	4,755,804	2.88 %
		Borrowings	46,286,930	590,304	5.08 %	79,985,590	994,702	4.95 %	30,531,086	398,950	5.18 %
		Interest-bearing liabilities	716,680,167	5,276,309	2.93 %	765,255,573	6,141,560	3.19 %	685,898,831	5,154,754	2.98 %
	Noninterest-bearing liabilities:
		Demand deposits	253,879,418			244,995,638			250,463,836
		Other	7,305,326			7,765,752			6,391,945

		Total Liabilities	977,864,911			1,018,016,963			942,754,612

		Cost of Total Deposits			2.02 %			2.20 %			2.08 %
		Cost of Total Funds (interest-
		bearing liabilities plus non-
		interest-bearing deposits)			2.16 %			2.42 %			2.18 %

	Shareholders' equity		78,673,794			76,167,709			70,103,580

		Total Liabilities and Shareholders Equity	$ 1,056,538,705			$ 1,094,184,672			$ 1,012,858,192

		Net interest income / NIM		$ 8,138,777	3.13 %		$ 7,800,865	2.90 %		$ 6,755,474	2.72 %

Community Heritage Financial , Inc. and Subsidiaries

Condensed Average Balance Sheet Analysis (unaudited)

			Year Ended
			December 31, 2024			December 31, 2023
			Average Balance	Interest	Yield / Rate	Average Balance	Interest	Yield / Rate
			Average Balance	Interest	Yield / Rate	Average Balance	Interest	Yield / Rate
ASSETS
	Interest-earning assets:
		Loans, including LHFS	$ 839,224,673	$46,776,805	5.57 %	$ 785,187,254	$39,596,735	5.04 %
		Securities	136,828,070	3,018,962	2.21 %	140,933,755	3,020,444	2.14 %
		Other	76,579,067	3,917,180	5.12 %	20,297,550	890,774	4.39 %
		Interest-earning assets	1,052,631,810	53,712,947	5.10 %	946,418,559	43,507,953	4.60 %

	Noninterest-earning assets		23,635,945			24,581,969

		Total Assets	$ 1,076,267,755			$ 971,000,528

LIABILITIES AND SHAREHOLDERS' EQUITY
	Interest-bearing liabilities:
		Demand deposits	$ 531,478,268	$14,342,609	2.70 %	$ 492,726,052	$13,166,998	2.67 %
		Time deposits	142,704,542	5,199,852	3.64 %	115,986,950	2,343,742	2.02 %
		Interest-bearing deposits	674,182,810	19,542,461	2.90 %	608,713,002	15,510,740	2.55 %
		Borrowings	69,941,302	3,482,070	4.98 %	34,671,067	1,877,779	5.42 %
		Interest-bearing liabilities	744,124,112	23,024,531	3.09 %	643,384,069	17,388,519	2.70 %
	Noninterest-bearing liabilities:
		Demand deposits	249,951,973			253,098,292
		Other	6,944,062			5,425,561

		Total Liabilities	1,001,020,147			901,907,922

		Cost of Total Deposits			2.11 %			1.80 %
		Cost of Total Funds (interest-
		bearing liabilities plus non-
		interest-bearing deposits)			2.32 %			1.94 %

	Shareholders' equity		75,247,608			69,092,606

		Total Liabilities and Shareholders Equity	$ 1,076,267,755			$ 971,000,528

		Net interest income / NIM		$30,688,416	2.92 %		$26,119,434	2.76 %

Community Heritage Financial , Inc. and Subsidiaries

Loan and Deposit Composition (unaudited)

			As of Period End
			12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023

Loans:
Commercial real estate:
	Construction and land development		$ 59,761,206	$ 64,686,070	$ 89,921,555	$ 88,793,186	$ 89,525,228
	Multifamily		25,185,498	23,437,101	21,281,351	21,682,394	21,784,953
	Farmland		32,424,255	30,448,216	30,317,070	30,546,050	30,821,848
	Other:
		Owner occupied	136,172,517	137,266,535	130,560,913	137,654,633	136,628,801
		Non-owner occupied	159,150,227	154,090,059	143,246,131	131,114,323	119,979,964

Residential, including home equity			296,196,340	297,472,722	290,587,107	284,962,472	280,523,837
Commercial and industrial			134,164,953	135,355,039	130,148,584	130,972,545	128,933,413
Consumer			1,036,859	1,296,915	1,392,904	1,369,535	1,203,039
		Gross loans	844,091,855	844,052,657	837,455,615	827,095,138	809,401,083
		Net deferred loan costs	3,502,115	3,486,431	3,587,736	3,509,251	3,531,789
		Total Loans	$847,593,970	$847,539,088	$841,043,351	$830,604,389	$812,932,872

Deposits:
Noninterest-bearing demand			$251,431,084	$246,907,558	$248,150,379	$247,549,872	$260,204,859
Interest-bearing:
	NOW ¹		194,682,425	223,884,815	223,072,312	202,226,731	164,536,186
	Savings		69,979,571	69,566,114	69,495,486	74,761,620	72,374,445
	Money Market		240,320,055	239,982,813	237,799,850	252,954,674	248,898,935
	Time		151,593,584	152,458,481	149,116,844	125,415,731	130,651,465
		Total interest-bearing	656,575,635	685,892,223	679,484,492	655,358,756	616,461,031
		Total Deposits	$908,006,719	$932,799,781	$927,634,871	$902,908,628	$876,665,890

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