CCFN 8-K
MUNCY COLUMBIA FINANCIAL Corp (CCFN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
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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:
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| None |
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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)
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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 first quarter 2024. On April 23, 2024, Muncy Columbia Financial Corporation issued a press release titled “Muncy Columbia Financial Corporation Reports First 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
(c) Not applicable
(d) Exhibits.
| Exhibit Number | Description |
| 99.1 | Press Release issued by Muncy Columbia Financial Corporation on April 23, 2024 titled “Muncy Columbia Financial Corporation Reports First 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: April 23, 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
April 23, 2024
Muncy Columbia Financial Corporation Reports First Quarter 2024 Earnings
Bloomsburg, PA – Muncy Columbia Financial Corporation (“Corporation”) (OTCQX: CCFN), parent company of Journey Bank (”Bank”), has released its unaudited financial statements for the first 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 March 31, 2024, was $4,036,000 compared to net income of $1,940,000 for the same period in 2023. Earnings per share, basic and diluted, 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.
The fully-tax equivalent net interest margin on interest earning assets and liabilities was 3.32% and 2.41% at March 31, 2024 and 2023, respectively.
Total consolidated assets amounted to $1,573,271,000 at March 31, 2024, as compared to $1,639,779,000 at December 31, 2023. For the quarter-ended March 31, 2024, loans receivable, not held for sale, increased by $12,318,000 while available-for-sale debt securities decreased $73,708,000. Total deposits increased $62,831,000 while short term borrowings decreased $126,619,000 since the end of 2023.
On January 17, 2024, the Corporation sold available-for-sale debt securities with a total market value of $50,311,000, the proceeds of which were utilized to paydown short-term Federal Home Loan Bank of Pittsburgh (“FHLB”) borrowings. Securities sold included $34,222,000 of US government agency securities, $15,526,000 of mortgaged-backed securities and $563,000 of collateralized mortgage obligations. The sale resulted in a net realized loss of $8,000 which was recorded in January 2024.
The increase in total deposits during the quarter-ended March 31, 2024 was 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 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 $7,328,000 at March 31, 2024, as compared to $4,475,000 at December 31, 2023. For the quarter-ended March 31, 2024, the increase in non-performing assets was primarily attributable to one real estate loan relationship with an aggregate balance of $2,221,000 which was placed on nonaccrual status during the quarter. This relationship is well secured, and the Bank is working closely with the borrower to bring the relationship to a current status. The Bank does not expect to incur a credit loss related to this relationship at this time.
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). For the quarter-ended March 31, 2024, the temporary impact of these unrealized losses on the stockholders’ equity amounted to a reduction of $16,526,000. 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 $43.35 at March 31, 2024 as compared with $43.08 at December 31, 2023. For the quarter-ended March 31, 2024 cash dividends of $0.44 per share were paid to stockholders as compared to $0.42 for the same period of 2023. The Corporation remains well capitalized, with an equity to assets ratio of 9.84% as of March 31, 2024 and 9.38% at December 31, 2023.
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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 merger; the risk that the anticipated benefits, cost savings and other savings from the merger may not be fully realized or may take longer than expected to realize; potential impairment to the goodwill recorded in connection with the merger; 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.
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Muncy Columbia Financial Corporation
Consolidated Balance Sheets
| (In Thousands, Except Share and Per Share Data) (Unaudited) | March 31, 2024 | December 31, 2023 | ||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 11,994 | $ | 14,614 | ||||
| Interest-bearing deposits in other banks | 4,237 | 3,763 | ||||||
| Total cash and cash equivalents | 16,231 | 18,377 | ||||||
| Interest-bearing time deposits | 736 | 979 | ||||||
| Available-for-sale debt securities, at fair value | 339,594 | 413,302 | ||||||
| Marketable equity securities, at fair value | 1,178 | 1,295 | ||||||
| Restricted investment in bank stocks, at cost | 8,013 | 10,394 | ||||||
| Loans held for sale | 614 | 366 | ||||||
| Loans receivable | 1,080,747 | 1,068,429 | ||||||
| Allowance for credit losses | (9,351 | ) | (9,302 | ) | ||||
| Loans, net | 1,071,396 | 1,059,127 | ||||||
| Premises and equipment, net | 27,322 | 27,569 | ||||||
| Foreclosed assets held for sale | 335 | 170 | ||||||
| Accrued interest receivable | 4,849 | 5,362 | ||||||
| Bank-owned life insurance | 40,456 | 40,209 | ||||||
| Investment in limited partnerships | 5,641 | 5,828 | ||||||
| Deferred tax asset, net | 11,745 | 12,634 | ||||||
| Goodwill | 25,609 | 25,609 | ||||||
| Core deposit intangible, net | 11,346 | 11,895 | ||||||
| Other assets | 8,206 | 6,663 | ||||||
| TOTAL ASSETS | $ | 1,573,271 | $ | 1,639,779 | ||||
| LIABILITIES | ||||||||
| Interest-bearing deposits | $ | 949,546 | $ | 884,654 | ||||
| Noninterest-bearing deposits | 263,954 | 266,015 | ||||||
| Total deposits | 1,213,500 | 1,150,669 | ||||||
| Short-term borrowings | 125,913 | 252,532 | ||||||
| Long-term borrowings | 65,524 | 70,448 | ||||||
| Accrued interest payable | 2,281 | 2,358 | ||||||
| Other liabilities | 11,190 | 9,947 | ||||||
| TOTAL LIABILITIES | 1,418,408 | 1,485,954 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock, par value $1.25 per share; 15,000,000 shares authorized; issued 3,836,988 and outstanding 3,572,288 at March 31, 2024; issued 3,834,976 and outstanding 3,570,276 at December 31, 2023; | 4,796 | 4,794 | ||||||
| Additional paid-in capital | 83,403 | 83,343 | ||||||
| Retained earnings | 92,980 | 90,514 | ||||||
| Accumulated other comprehensive loss | (16,526 | ) | (15,036 | ) | ||||
| Treasury stock, at cost; 264,700 shares at March 31, 2024 and December 31, 2023 | (9,790 | ) | (9,790 | ) | ||||
| TOTAL STOCKHOLDERS' EQUITY | 154,863 | 153,825 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,573,271 | $ | 1,639,779 | ||||
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Muncy Columbia Financial Corporation
Consolidated Statements of Income
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| (In Thousands, Except Share and Per Share Data) (Unaudited) | 2024 | 2023 | ||||||
| INTEREST AND DIVIDEND INCOME | ||||||||
| Interest and fees on loans: | ||||||||
| Taxable | $ | 17,256 | $ | 5,934 | ||||
| Tax-exempt | 353 | 216 | ||||||
| Interest and dividends on investment securities: | ||||||||
| Taxable | 1,161 | 1,208 | ||||||
| Tax-exempt | 830 | 129 | ||||||
| Dividend and other interest income | 223 | 67 | ||||||
| Federal funds sold | — | — | ||||||
| Deposits in other banks | 66 | 60 | ||||||
| TOTAL INTEREST AND DIVIDEND INCOME | 19,889 | 7,614 | ||||||
| INTEREST EXPENSE | ||||||||
| Deposits | 4,610 | 627 | ||||||
| Short-term borrowings | 2,497 | 1,786 | ||||||
| Long-term borrowings | 847 | — | ||||||
| TOTAL INTEREST EXPENSE | 7,954 | 2,413 | ||||||
| NET INTEREST INCOME | 11,935 | 5,201 | ||||||
| Provision (credit) for credit losses - loans | 101 | (418 | ) | |||||
| (Credit) provision for credit losses - off balance sheet credit exposures | (11 | ) | 9 | |||||
| TOTAL PROVISION (CREDIT) FOR CREDIT LOSSES | 90 | (409 | ) | |||||
| NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR CREDIT LOSSES | 11,845 | 5,610 | ||||||
| NON-INTEREST INCOME | ||||||||
| Service charges and fees | 615 | 525 | ||||||
| Gain on sale of loans | 76 | 29 | ||||||
| Earnings on bank-owned life insurance | 227 | 109 | ||||||
| Brokerage | 224 | 128 | ||||||
| Trust | 206 | 191 | ||||||
| Losses on marketable equity securities | (117 | ) | (81 | ) | ||||
| Realized losses on available-for-sale debt securities, net | (8 | ) | — | |||||
| Interchange fees | 619 | 424 | ||||||
| Other non-interest income | 690 | 301 | ||||||
| TOTAL NON-INTEREST INCOME | 2,532 | 1,626 | ||||||
| NON-INTEREST EXPENSE | ||||||||
| Salaries and employee benefits | 4,802 | 2,592 | ||||||
| Occupancy | 618 | 323 | ||||||
| Furniture and equipment | 896 | 519 | ||||||
| Pennsylvania shares tax | 210 | 161 | ||||||
| Professional fees | 799 | 311 | ||||||
| Director's fees | 134 | 82 | ||||||
| Federal deposit insurance | 220 | 108 | ||||||
| Telecommunications | 88 | 84 | ||||||
| Automated teller machine and interchange | 262 | 119 | ||||||
| Merger-related expenses | 96 | — | ||||||
| Amortization of core deposit intangible | 549 | — | ||||||
| Other non-interest expense | 972 | 518 | ||||||
| TOTAL NON-INTEREST EXPENSE | 9,646 | 4,817 | ||||||
| INCOME BEFORE INCOME TAX PROVISION | 4,731 | 2,419 | ||||||
| INCOME TAX PROVISION | 695 | 479 | ||||||
| NET INCOME | $ | 4,036 | $ | 1,940 | ||||
| EARNINGS PER SHARE - BASIC AND DILUTED | $ | 1.13 | $ | 0.93 | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | 3,570,342 | 2,079,135 | ||||||
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| At or 3 Months Ended (Unaudited) | ||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||||||||||||
| Operating Highlights | ||||||||||||||||||||
| Net income (loss) | $ | 4,036 | $ | (1,186 | ) | $ | 1,171 | $ | 1,462 | $ | 1,940 | |||||||||
| Net interest income | 11,935 | 8,257 | 4,891 | 4,913 | 5,201 | |||||||||||||||
| Provision (credit) for credit losses | 90 | 3,114 | (168 | ) | (16 | ) | (409 | ) | ||||||||||||
| Non-interest income | 2,532 | 2,267 | 1,522 | 1,706 | 1,626 | |||||||||||||||
| Non-interest expense | 9,646 | 9,163 | 5,273 | 4,857 | 4,817 | |||||||||||||||
| Balance Sheet Highlights | ||||||||||||||||||||
| Total assets | $ | 1,573,271 | $ | 1,639,779 | $ | 957,580 | $ | 960,080 | $ | 955,030 | ||||||||||
| Loans, net and loans held for sale | 1,072,010 | 1,059,493 | 556,862 | 544,593 | 535,843 | |||||||||||||||
| Goodwill and core deposit intangible, net | 36,955 | 37,504 | 7,937 | 7,937 | 7,937 | |||||||||||||||
| Total deposits | ||||||||||||||||||||
| Noninterest-bearing | $ | 263,954 | $ | 266,015 | $ | 165,888 | $ | 175,521 | $ | 178,438 | ||||||||||
| Savings | 203,002 | 204,968 | 155,750 | 157,833 | 166,231 | |||||||||||||||
| NOW | 298,122 | 251,953 | 146,944 | 152,358 | 151,191 | |||||||||||||||
| Money Market | 112,190 | 103,602 | 41,521 | 44,341 | 51,846 | |||||||||||||||
| Time Deposits | 336,232 | 324,131 | 130,472 | 128,430 | 127,670 | |||||||||||||||
| Total interest-bearing deposits | 949,546 | 884,654 | 474,687 | 482,962 | 496,938 | |||||||||||||||
| Core deposits* | 877,268 | 826,538 | 510,103 | 530,053 | 547,706 | |||||||||||||||
| Selected Ratios | ||||||||||||||||||||
| Fully tax-equivalent net interest margin (YTD) | 3.32 | % | 2.34 | % | 2.29 | % | 2.32 | % | 2.41 | % | ||||||||||
| Annualized return on average assets | 1.02 | % | -0.35 | % | 0.63 | % | 0.71 | % | 0.82 | % | ||||||||||
| Annualized return on average equity | 10.52 | % | -3.95 | % | 6.78 | % | 7.63 | % | 8.94 | % | ||||||||||
| Capital Ratios - Journey Bank** | ||||||||||||||||||||
| Common equity tier I capital ratio | 13.95 | % | 13.52 | % | 18.80 | % | 18.96 | % | 18.94 | % | ||||||||||
| Tier 1 capital ratio | 13.95 | % | 13.52 | % | 18.80 | % | 18.96 | % | 18.94 | % | ||||||||||
| Total risk-based capital ratio | 14.94 | % | 14.49 | % | 19.91 | % | 20.11 | % | 20.10 | % | ||||||||||
| Leverage ratio | 8.40 | % | 8.03 | % | 10.58 | % | 10.65 | % | 10.62 | % | ||||||||||
| Asset Quality Ratios | ||||||||||||||||||||
| Non-performing assets | $ | 7,328 | $ | 4,475 | $ | 2,659 | $ | 2,562 | $ | 2,808 | ||||||||||
| Allowance for credit losses - loans | 9,351 | 9,302 | 6,094 | 6,278 | 6,288 | |||||||||||||||
| Allowance for credit losses to total loans | 0.87 | % | 0.87 | % | 1.09 | % | 1.14 | % | 1.16 | % | ||||||||||
| Allowance for credit losses to non-performing assets | 127.61 | % | 207.87 | % | 244.81 | % | 245.04 | % | 223.91 | % | ||||||||||
| Per Share Data | ||||||||||||||||||||
| Earnings (loss) per share | $ | 1.13 | $ | (0.41 | ) | $ | 0.56 | $ | 0.71 | $ | 0.93 | |||||||||
| Dividend declared per share | 0.44 | 0.43 | 0.43 | 0.43 | 0.42 | |||||||||||||||
| Book value | 43.35 | 43.08 | 42.50 | 43.44 | 44.52 | |||||||||||||||
| Common stock price: | ||||||||||||||||||||
| Bid | $ | 30.50 | $ | 34.50 | $ | 34.59 | $ | 37.57 | $ | 40.05 | ||||||||||
| Ask | 32.00 | 37.17 | 35.00 | 43.00 | 42.50 | |||||||||||||||
| Weighted average common shares | 3,570,342 | 2,873,775 | 2,080,109 | 2,079,649 | 2,079,135 | |||||||||||||||
* Core deposits are defined as total deposits less time deposits
** Capital ratios for the most recent period are estimated
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