Business
Community Heritage Financial, Inc. Repositions Investment Portfolio
Community Heritage Financial, Inc. (the "Company" or "CHF") (OTCID: CMHF), the parent company of Middletown Valley Bank ("MVB" or the "Bank"), announced today it initiated a strategic repositioning of its balance sheet with the sale of lower-yielding investment securities with a book value of $73.3 million.
About this update from Community Heritage Financial, Inc.
[{"type":"text","content":"MIDDLETOWN, Md., May 20, 2026 /PRNewswire/ -- Community Heritage Financial, Inc. (the "Company" or "CHF") (OTCID: CMHF), the parent company of Middletown Valley Bank ("MVB" or the "Bank"), announced today it initiated a strategic repositioning of its balance sheet with the sale of lower-yielding investment securities with a book value of $73.3 million.","length":394,"tagName":"p"},{"type":"image","alt":"CHF logo (PRNewsfoto/Community Heritage Financial)","displaySize":"","headline":null,"caption":"CHF logo (PRNewsfoto/Community Heritage Financial)","className":"","disableSlideshowImg":false,"size":{"original":{"width":400,"height":98,"url":"https://media.zenfs.com/en/prnewswire.com/da0af34c5e9362ae2b2d7759b626b349"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/4amgUV9ovUBVnLUXko.P8Q--/YXBwaWQ9aGlnaGxhbmRlcjt3PTcwNTtoPTE3Mw--/https://media.zenfs.com/en/prnewswire.com/da0af34c5e9362ae2b2d7759b626b349","width":400,"height":98},"resize_sm":{"url":"https://s.yimg.com/ny/api/res/1.2/UYpO78VZr2Z6WweGw18PbQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTY0MDtoPTE1Nw--/https://media.zenfs.com/en/prnewswire.com/da0af34c5e9362ae2b2d7759b626b349","width":400,"height":98}},"href":"https://mma.prnewswire.com/media/874597/Community_Heritage_Logo.html","hrefExternal":true,"rel":"nofollow"},{"type":"text","content":"The sale included both securities available-for-sale and securities held-to-maturity. Securities sold had a weighted average yield of 2.73% and the sale transaction produced an after-tax loss of approximately $3.9 million. The Bank expects to use the proceeds from the sale to purchase securities totaling $68.0 million, all of which will be classified as available-for-sale at the time of purchase, with an estimated weighted average tax equivalent yield of 5.10%. On an annualized basis, the purchased securities are expected to add approximately $1.1 million to net income and improve the net interest margin approximately 13 basis points. The estimated earn-back period is 3.6 years.","length":687,"tagName":"p"},{"type":"text","content":"The Company's consolidated shareholders' equity and tangible book value will decline approximately $4.8 million and $1.64, respectively, upon recognition of the loss associated with the sale of the securities and the mark-to-market of those securities previously classif...