Muncy Columbia Financial Corporation 8-K

Exhibit 99.1

These interim statements are subject to year-end audit adjustment.

To access current financial information, visit our website at https://ir.journeybank.com

May 21, 2024

Dear Shareholders,

We are pleased to present our first quarter results for Muncy Columbia Financial Corporation (the “Corporation”). Net income for the quarter-ended March 31, 2024 was $4,036,000 compared to net income of $1,940,000 for the same period in 2023. Earnings per share for the quarters-ended March 31, 2024 and 2023 were $1.13 and $0.93, respectively. Return on average assets and return on average equity were 1.02% and 10.52% for the quarter-ended March 31, 2024 as compared to 0.82% and 8.94% for the same period of 2023.

Our annual shareholder meeting was held on April 23^rd, and a number of shareholders attended in-person and virtually. This was our first combined annual meeting as Muncy Columbia Financial Corporation, and we wanted to share some of the key information and takeaways from that meeting for those shareholders who were not in attendance.

As we reviewed our results from 2023, we first acknowledged the successful merger of First Columbia Bank & Trust Co. and The Muncy Bank & Trust Company to form Journey Bank — A Muncy Columbia Financial Company. In our view, this merger met three essential criteria:

Interest rate increases continue to create a challenging environment. After a period of historically low rates from 2008 to 2021, rates moved sharply higher in 2022 and 2023. Rates increased 525 basis points in just a 16-month period, which marked an unprecedented climb, and a scenario that pressured the net interest margins of financial institutions.

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We understand shareholder concerns regarding the recent decline in our share price. There is a confluence of underlying factors that are important to consider, including market forces and industry-wide challenges. While our stock value was impacted by the events impacting the industry as a whole, our valuation change over the past 18 months was in line with that of our local peers.

As we move ahead in 2024, we are encouraged by our first quarter results. Net income was strong at $4,036,000, surpassing the full year 2023 net income of $3,387,000, which was significantly impacted by transaction related expenses of the merger. In addition, our first quarter cash dividend was $0.44, an increase from $0.42 in the first quarter of 2023, evidencing our ongoing commitment to shareholder value.

We believe our Corporation is well-positioned to manage market-driven challenges and execute on the strategy to deliver long-term value to our shareholders as we continue serving the banking needs of our local communities. We are thankful for your support and invite you to reach out to senior leadership or any of our board members if we may provide additional information.

Sincerely,

Cautionary Note Regarding Forward Looking Statements

This letter 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.