Community Heritage Financial, Inc. Announces Change to Organizational Structure

Rhea-AI Summary

Community Heritage Financial, Inc. (CMHF) has announced a significant organizational change, seeking regulatory approval for its subsidiary Millennium Financial Group (Mlend) to become a wholly owned subsidiary of Middletown Valley Bank. This restructuring, approved by all boards, aims to enhance operational efficiencies and achieve cost savings. Both entities will retain their brand identities while benefiting from synergies in their market operations. The move reflects the company's strategy to streamline operations and strengthen its market position.

Positive

• Millennium Financial Group to become a wholly owned subsidiary of Middletown Valley Bank.
• Expected cost savings and operational efficiencies from the restructuring.
• Maintained brand identities for both Millennium and Middletown Valley Bank.

Negative

• None.

MIDDLETOWN, Md., Jan. 14, 2022 /PRNewswire/ -- Community Heritage Financial, Inc. (the "Company") (OTC Pink: CMHF), the holding company for Middletown Valley Bank (the "Bank") and Millennium Financial Group, Inc. ("Mlend") announced today that it has requested regulatory non-objection for Mlend to become a wholly owned subsidiary of the Bank. The change has been approved by all three boards.

"We believe that it is in the best interests of the Company, the Bank, and our stockholders, that Millennium become a wholly owned subsidiary of the Bank in lieu of remaining a wholly owned subsidiary of the Company," said Robert E. (BJ) Goetz, President and Chief Executive Officer of the Company and the Bank.  "This change in structure allows us to realize significant cost savings and operational efficiencies."

President and Chief Executive Officer of Mlend, William H. Poffenbarger, Jr. commented, "By becoming a wholly owned subsidiary of the Bank, we achieve further synergies, with each entity retaining its current brand strengths in the markets they serve."

Middletown Valley Bank is a full-service commercial and retail bank with locations in the Maryland counties of Frederick, Garrett, and Washington, and in Franklin County, Pennsylvania. For more information, visit http://www.mvbbank.com/.

Mlend is a full-service mortgage lender with locations in Middletown, Crofton and Oakland, Maryland.  For more information visit http://mlend.com/.

This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward- looking terminology such as "believes," "expects," "intends," "may," "will," "should," "anticipates" or similar terminology. Such statements, specifically regarding the Company's intentions regarding transparency, growth and market expansion, are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, changes in interest rates, stock market liquidity, deposit flows, loan demand and real estate values, as well as changes in economic, competitive, governmental, regulatory, technological and other factors which may affect the Company specifically, its existing and target market areas or the banking industry in general. The realization or occurrence of these risks or uncertainties could cause actual results to differ materially from those addressed in the forward-looking statements.

Investor Relations Contact:

Community Heritage Financial, Inc.
Robert E. (BJ) Goetz, Jr.
President & Chief Executive Officer
301-371-3055
www.communityheritageinc.com

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SOURCE Community Heritage Financial, Inc.

FAQ

What is the recent organizational change announced by Community Heritage Financial (CMHF)?

Community Heritage Financial announced that Millennium Financial Group (Mlend) will become a wholly owned subsidiary of Middletown Valley Bank.

Why is Community Heritage Financial restructuring Millennium Financial Group (Mlend)?

The restructuring is intended to achieve cost savings and operational efficiencies, benefiting both the company and its stockholders.

When was the organizational change for CMHF announced?

The organizational change was announced on January 14, 2022.

What benefits will the restructuring provide for CMHF shareholders?

The restructuring is expected to provide significant cost savings and operational efficiencies, which could enhance shareholder value.