UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

October 18, 2024

Date of Report (Date of earliest event reported)

MUNCY COLUMBIA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Pennsylvania

000-19028

23-2254643

(State or other jurisdiction of

incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

232 East Street

Bloomsburg, PA 17815

(Address of principal executive offices)

570-784-4400

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

Indicated by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2) ☐

If an emerging growth company, indicate by check mark if registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Lance O. Diehl, President and Chief Executive Officer, announced the consolidated financial results for Muncy Columbia Financial Corporation for the third quarter 2024. On October 18, 2024, Muncy Columbia Financial Corporation issued a press release titled “Muncy Columbia Financial Corporation Reports Third Quarter 2024 Earnings” attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(a) Not applicable

(b) Not applicable

(d) Exhibits.

Exhibit Number	Description

99.1	Press Release issued by Muncy Columbia Financial Corporation on October 18, 2024 titled “Muncy Columbia Financial Corporation Reports Third Quarter 2024 Earnings”

104	Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

Date: October 18, 2024	Muncy Columbia Financial Corporation

	By:	/s/ Joseph K. O’Neill, Jr.
	Name:	Joseph K. O’Neill, Jr.
	Title:	Executive Vice President and Chief Financial Officer

Muncy Columbia Financial Corporation 8-K

Exhibit 99.1

Press Release – For Immediate Release

October 18, 2024

Muncy Columbia Financial Corporation Reports Third Quarter 2024 Earnings

Bloomsburg, PA – Muncy Columbia Financial Corporation (“Corporation”) (OTCQX: CCFN), parent company of Journey Bank (“Bank”), has released its unaudited consolidated financial statements for the third quarter of 2024.

Unaudited Financial Information

Net income, as reported under accounting principles generally accepted in the United States of America (“GAAP”), for the quarter ended September 30, 2024 was $5,056,000, or $1.42 per share compared to net income of $1,171,000, or $0.56 per share for the same period in 2023. Net income, as reported under GAAP, for the nine months ended September 30, 2024 was $13,799,000, or $3.86 per share compared to $4,573,000, or $2.20 per share for the same period in 2023. Return on average assets and return on average equity were 1.26% and 12.34% for the quarter ended September 30, 2024, as compared to 0.63% and 6.78% for the same period of 2023.

The fully-tax equivalent net interest margin was 3.40% and 2.29% for the nine-month periods ended September 30, 2024 and 2023, respectively.

Total consolidated assets amounted to $1,607,322,000 at September 30, 2024, as compared to $1,592,300,000 at June 30, 2024 and $1,639,779,000 at December 31, 2023. For the quarter ended September 30, 2024, cash and cash equivalents increased $6,593,000 and loans receivable, not held for sale, increased by $11,979,000. Total deposits increased $24,842,000 while short term borrowings decreased $16,261,000 during the quarter ended September 30, 2024.

The increase in total deposits during the quarter and nine months ended September 30, 2024 was primarily as a result of a strategic initiative to reposition customer repurchase agreements, which are classified as short-term borrowings, into core deposit accounts. The Bank anticipates a continued migration of customer repurchase accounts from short-term borrowings to deposits throughout the remainder of 2024. The execution of this initiative will assist in optimizing the Bank’s long-term liquidity needs and balance sheet management strategies.

Total non-performing assets amounted to $8,575,000 or 0.53% of total assets at September 30, 2024, as compared to $7,736,000 or 0.49% of total assets at June 30, 2024.

The Corporation invests in various forms of agency debt including mortgage-backed securities and callable agency debt. The fair value of these securities is influenced by market interest rates, prepayment speeds on mortgage securities, bid to offer spreads in the market place and credit premiums for various types of agency debt. These factors change continuously and therefore the fair market value of these securities may be higher or lower than the Corporation’s carrying value at any measurement date. The temporary impact on investment securities will also affect stockholders’ equity as these fluctuations are recorded through accumulated other comprehensive income (loss). As of September 30, 2024, the temporary impact of these unrealized losses, net of tax, on stockholders’ equity amounted to a reduction of $8,809,000. The Corporation does not consider its debt securities to be credit impaired since it has both the intent and ability to hold the securities until a recovery of its amortized cost basis, which may be maturity, and the decline in fair value is deemed to be as a result of changes in interest rates and not credit factors.

Total stockholders’ equity equated to a book value per share of $47.35 at September 30, 2024 as compared with $43.08 at December 31, 2023. For the nine months ended September 30, 2024 cash dividends of $1.32 per share were paid to stockholders as compared to $1.28 for the same period of 2023. The Corporation remains well capitalized, with an equity to assets ratio of 10.53% at September 30, 2024 as compared to 9.38% at December 31, 2023.

About Muncy Columbia Financial Corporation

Muncy Columbia Financial Corporation (“MCFC”) is a registered financial holding company headquartered in Bloomsburg, Pennsylvania. MCFC has one subsidiary bank, Journey Bank, serving individuals, families, nonprofits and business clients throughout Clinton, Columbia, Lycoming, Montour, Northumberland and Sullivan Counties through 22 banking offices.

Cautionary Note Regarding Forward Looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as “anticipates,“ “believes,“ “estimates,“ “expects,“ “forecasts,“ “intends,“ “plans,“ “projects,“ “may,“ “will,“ “should,“ and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties related to integration following the mergers of Muncy Bank Financial, Inc. with and into CCFNB Bancorp, Inc., forming Muncy Columbia Financial Corporation, and of The Muncy Bank and Trust Company with and into First Columbia Bank & Trust Company, forming Journey Bank; the risk that the anticipated benefits, cost savings and other savings from the mergers may not be fully realized or may take longer than expected to realize; potential impairment to the goodwill recorded in connection with the mergers; changes in general economic trends, including inflation and changes in interest rates; our ability to manage credit risk; our ability to maintain an adequate level of allowance for credit loss on loans; increased competition; changes in consumer demand for financial services; our ability to control costs and expenses; fluctuations in the values of securities held in our securities portfolio, including as a result of changes in interest rates; our ability to successfully manage liquidity risk; adverse developments in borrower industries and, in particular, declines in real estate values; the concentration of large deposits from certain customers who have balances above current FDIC insurance limits; changes in and compliance with federal and state laws that regulate our business and capital levels; our ability to raise capital as needed; and any other risks described in the “Risk Factors” sections of reports filed by the Corporation with the Securities and Exchange Commission. We do not undertake, and specifically disclaim, any obligation to publicly revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. Accordingly, you should not place undue reliance on forward-looking statements.

Muncy Columbia Financial Corporation

Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Data) (Unaudited)	September 30, 2024			December 31, 2023
ASSETS
Cash and due from banks	$	21,318		$	14,614
Interest-bearing deposits in other banks		6,751			3,763
Total cash and cash equivalents		28,069			18,377

Interest-bearing time deposits		249			979
Available-for-sale debt securities, at fair value		335,535			413,302
Marketable equity securities, at fair value		1,303			1,295
Restricted investment in bank stocks, at cost		7,529			10,394
Loans held for sale		2,192			366

Loans receivable		1,112,644			1,068,429
Allowance for credit losses		(9,415	)		(9,302	)
Loans, net		1,103,229			1,059,127

Premises and equipment, net		26,735			27,569
Foreclosed assets held for sale		70			170
Accrued interest receivable		4,840			5,362
Bank-owned life insurance		40,945			40,209
Investment in limited partnerships		5,278			5,828
Deferred tax asset, net		8,919			12,634
Goodwill		25,609			25,609
Other intangible assets, net		10,593			11,895
Other assets		6,227			6,663
TOTAL ASSETS	$	1,607,322		$	1,639,779

LIABILITIES
Interest-bearing deposits	$	1,020,954		$	884,654
Noninterest-bearing deposits		269,515			266,015
Total deposits		1,290,469			1,150,669

Short-term borrowings		73,025			252,532
Long-term borrowings		60,465			70,448
Accrued interest payable		2,099			2,358
Other liabilities		11,961			9,947
TOTAL LIABILITIES		1,438,019			1,485,954

STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; 15,000,000 shares authorized;
issued 3,840,227 and outstanding 3,575,527 at September 30, 2024;
issued 3,834,976 and outstanding 3,570,276 at December 31, 2023;		4,800			4,794
Additional paid-in capital		83,504			83,343
Retained earnings		99,598			90,514
Accumulated other comprehensive loss		(8,809	)		(15,036	)
Treasury stock, at cost; 264,700 shares at September 30, 2024 and December 31, 2023		(9,790	)		(9,790	)
TOTAL STOCKHOLDERS' EQUITY		169,303			153,825
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,607,322		$	1,639,779

Muncy Columbia Financial Corporation

Consolidated Statements of Income

	For the Three Months Ended					For the Nine Months Ended
	September 30,					September 30,
(In Thousands, Except Share and Per Share Data) (Unaudited)	2024		2023			2024			2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable	$	18,234	$	6,629		$	53,231		$	18,861
Tax-exempt		421		243			1,106			674
Interest and dividends on investment securities:
Taxable		994		1,211			3,175			3,641
Tax-exempt		842		135			2,508			398
Dividend and other interest income		190		86			617			222
Federal funds sold		—		—			—			1
Deposits in other banks		110		84			238			169
TOTAL INTEREST AND DIVIDEND INCOME		20,791		8,388			60,875			23,966

INTEREST EXPENSE
Deposits		6,133		892			16,353			2,299
Short-term borrowings		1,093		2,337			5,017			6,248
Long-term borrowings		791		268			2,436			414
TOTAL INTEREST EXPENSE		8,017		3,497			23,806			8,961

NET INTEREST INCOME		12,774		4,891			37,069			15,005

Provision (credit) for credit losses - loans		151		(172	)		288			(594	)
Provision (credit) for credit losses - off balance sheet credit exposures		—		4			(18	)		1
TOTAL PROVISION (CREDIT) FOR CREDIT LOSSES		151		(168	)		270			(593	)

NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR CREDIT LOSSES		12,623		5,059			36,799			15,598

NON-INTEREST INCOME
Service charges and fees		727		477			2,009			1,516
Gain on sale of loans		75		68			244			193
Earnings on bank-owned life insurance		236		113			692			335
Brokerage		193		146			609			425
Trust		243		195			653			613
Gains (losses) on marketable equity securities		163		(118	)		8			(265	)
Realized losses on available-for-sale debt securities, net		—		—			(8	)		—
Interchange fees		664		428			1,970			1,294
Other non-interest income		414		213			1,489			743
TOTAL NON-INTEREST INCOME		2,715		1,522			7,666			4,854

NON-INTEREST EXPENSE
Salaries and employee benefits		4,704		2,275			14,146			7,307
Occupancy		644		326			1,843			969
Furniture and equipment		448		305			1,238			872
Pennsylvania shares tax		251		(58	)		691			234
Professional fees		359		316			1,135			838
Director's fees		103		72			342			227
Federal deposit insurance		187		110			595			327
Data processing and telecommunications		848		361			2,672			1,064
Automated teller machine and interchange		107		111			475			221
Merger-related expenses		43		757			340			1,206
Amortization of intangibles		558		—			1,656			—
Other non-interest expense		1,115		698			3,074			1,682
TOTAL NON-INTEREST EXPENSE		9,367		5,273			28,207			14,947

INCOME BEFORE INCOME TAX PROVISION		5,971		1,308			16,258			5,505
INCOME TAX PROVISION		915		137			2,459			932
NET INCOME	$	5,056	$	1,171		$	13,799		$	4,573

EARNINGS PER SHARE - BASIC AND DILUTED	$	1.42	$	0.56		$	3.86		$	2.20
WEIGHTED AVERAGE SHARES OUTSTANDING		3,574,043		2,080,109			3,572,250			2,079,635

	At or 3 Months Ended (Unaudited)

(Dollars in Thousands, Except Per Share Data)	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023

Operating Highlights

Net income (loss)	$	5,056		$	4,707		$	4,036		$	(1,186	)	$	1,171
Net interest income		12,774			12,360			11,935			8,257			4,891
Provision (credit) for credit losses		151			29			90			3,114			(168	)
Non-interest income		2,715			2,419			2,532			2,267			1,522
Non-interest expense		9,367			9,194			9,646			9,163			5,273

Balance Sheet Highlights

Total assets	$	1,607,322		$	1,592,300		$	1,573,271		$	1,639,779		$	957,580
Loans, net and loans held for sale		1,105,421			1,092,057			1,072,010			1,059,493			556,862
Goodwill and other intangibles, net		36,202			36,760			36,955			37,504			7,937
Total deposits
Noninterest-bearing	$	269,515		$	263,419		$	263,954		$	266,015		$	165,888
Savings		192,644			199,626			203,002			204,968			155,750
NOW		364,459			346,000			298,122			251,953			146,944
Money Market		112,319			117,770			112,190			103,602			41,521
Time Deposits		351,532			338,812			336,232			324,131			130,472
Total interest-bearing deposits		1,020,954			1,002,208			949,546			884,654			474,687
Core deposits*		938,937			926,815			877,268			826,538			510,103

Selected Ratios

Fully tax-equivalent net interest margin (YTD)		3.40	%		3.36	%		3.32	%		2.34	%		2.29	%
Annualized return on average assets		1.26	%		1.20	%		1.02	%		-0.35	%		0.63	%
Annualized return on average equity		12.34	%		12.28	%		10.52	%		-3.95	%		6.78	%

Capital Ratios - Journey Bank**

Common equity tier I capital ratio		14.59	%		14.06	%		13.95	%		13.52	%		18.80	%
Tier 1 capital ratio		14.59	%		14.06	%		13.95	%		13.52	%		18.80	%
Total risk-based capital ratio		15.54	%		14.99	%		14.94	%		14.49	%		19.91	%
Leverage ratio		8.82	%		8.68	%		8.40	%		8.03	%		10.58	%

Asset Quality Ratios

Non-performing assets	$	8,575		$	7,736		$	7,328		$	4,475		$	2,659
Allowance for credit losses - loans		9,415			9,362			9,351			9,302			6,094
Allowance for credit losses to total loans		0.85	%		0.85	%		0.87	%		0.87	%		1.09	%
Allowance for credit losses to
non-performing assets		109.80	%		121.02	%		127.61	%		207.87	%		244.81	%
Non-performing assets to total assets		0.53	%		0.49	%		0.47	%		0.27	%		0.28	%

Per Share Data

Earnings (loss) per share	$	1.42		$	1.32		$	1.13		$	(0.41	)	$	0.56
Dividend declared per share		0.44			0.44			0.44			0.43			0.43
Book value		47.35			44.11			43.35			43.08			42.50
Common stock price:
Bid	$	33.35		$	32.10		$	30.50		$	34.50		$	34.59
Ask		34.25			34.75			32.00			37.17			35.00
Weighted average common shares		3,574,043			3,572,345			3,570,342			2,873,775			2,080,109

* Core deposits are defined as total deposits less time deposits

** Capital ratios for the most recent period are estimated