Muncy Columbia Financial Corporation Announces Third Quarter 2026 Earnings

BLOOMSBURG, Pa.--(BUSINESS WIRE)-- Muncy Columbia Financial Corporation (“Corporation”) (OTCQX: CCFN), parent company of Journey Bank (“Bank”), has released its unaudited consolidated financial results for the third quarter of 2026. Unaudited Financial Information Net income, as reported under accounting principles generally accepted in the United States of America (“GAAP”), for the third quarter 2026 was $6,043,000, or $0.57 per share, compared to $6,719,000, or $0.63 per share, for the third quarter 2025. Net income, as reported under GAAP, for the nine months ended September 30, 2026 was $20,354,000, or $1.92 per share, compared to $16,832,000, or $1.59 per share for the same period in 2025. Return on average assets and return on average equity were 1.42% and 11.97%, respectively, for the third quarter 2026 as compared to 1.63% and 14.81%, respectively, for the third quarter 2025. Net interest income of $17,633,000 for the third quarter 2026 increased $1,982,000 from the third quarter 2025 amount of $15,651,000, reflecting an increase in total interest and dividend income of $1,365,000 and a decrease of $617,000 in total interest expense. The fully-tax equivalent net interest margin was 4.54% for the third quarter 2026 as compared to 4.15% for the third quarter 2025. For the third quarter 2026, a $942,000 provision for credit losses was recorded compared to a $479,000 provision for the third quarter 2025. The allowance for credit losses to total loans was 0.91% at September 30, 2026 and 0.85% at December 31, 2025. Total non-interest income decreased $2,281,000 to $611,000 for the third quarter 2026, compared to the third quarter 2025 amount of $2,892,000. Realized losses on available-for-sale debt securities, net, totaled $2,404,000 for the third quarter 2026. No realized losses on available-for-sale debt securities were recognized during the third quarter 2025. During the third quarter 2026, the Corporation sold certain available-for-sale debt securities at a loss as part of a balance sheet repositioning strategy designed to improve the Corporation’s net interest margin and enhance future earnings potential. The securities sold generally carried substantially lower contractual yields relative to the yields available on comparable securities at the time of reinvestment. The proceeds from the sales were reinvested in higher-yielding securities, which management expects will contribute to improved interest income and net interest margin in future periods, subject to changes in market interest rates, deposit costs, balance sheet composition, and other factors affecting the Corporation’s net interest margin. Total non-interest expense increased $70,000 from $9,978,000 for the third quarter 2025, to $10,048,000 for the third quarter 2026. Salaries and employee benefits expense of $5,417,000 for the third quarter 2026 increased $618,000 from $4,799,000 for the third quarter 2025. This increase was related to health insurance expenses associated with the Corporation’s partially self-funded health insurance plan which were $422,000 higher in the third quarter 2026 than the third quarter 2025, along with ongoing salary and wage increases for employees. The increase in salaries and employee benefits expense was partially offset by a decrease in professional fees of $164,000 due primarily to lower legal and consulting costs and a decrease in other non-interest expense of $351,000 due primarily to lower overall marketing and advertising costs comparing the third quarter 2026 to the third quarter 2025. Total assets amounted to $1,688,153,000 at September 30, 2026, as compared to $1,673,199,000 at December 31, 2025. For the nine months ended September 30, 2026, cash and cash equivalents decreased $12,780,000 and loans receivable held for investment increased by $30,783,000. Total liabilities amounted to $1,495,117,000 at September 30, 2026, as compared to $1,480,658,000 at December 31, 2025. Total deposits increased $59,087,000 while short-term borrowings decreased $4,938,000 and long-term borrowings decreased $40,584,000 during the nine months ended September 30, 2026. During the second quarter 2026, the Corporation prepaid, in full, its outstanding long-term FHLB borrowings. Total non-performing assets amounted to $11,272,000 or 0.67% of total assets at September 30, 2026, as compared to $11,978,000 or 0.72% of total assets at December 31, 2025. The decrease in non-performing assets was primarily attributable to a decrease in non-accrual loans from $11,523,000 at December 31, 2025, to $10,325,000 at September 30, 2026. Total stockholders’ equity equated to a book value per share of $18.18 at September 30, 2026, as compared with $18.15 at December 31, 2025. For the third quarter 2026 total cash dividends of $0.155 per share were declared as compared to $0.150 for the same period of 2025. For the nine months ended September 30, 2026, total cash dividends of $0.797 per share were declared as compared to $0.617 for the same period of 2025, which included the impact of special one-time dividends of $0.333 per share and $0.167 per share for the nine months ended September 30, 2026 and 2025, respectively. The Corporation remains well capitalized, with an equity to assets ratio of 11.43% at September 30, 2026, as compared to 11.51% at December 31, 2025. Stock Split On April 23, 2026, the Corporation’s Board of Directors declared a three-for-one stock split in the form of a 200% stock dividend on its outstanding shares of common stock. Each shareholder of record as of the close of business on May 7, 2026 received two additional shares of common stock for each share then held, effective May 15, 2026. The dividend was paid in authorized but unissued shares of common stock of the Corporation. The par value of the Corporation's stock was not affected by the split and remained at $1.25 per share. All share and per share amounts reported in this press release have been adjusted to reflect the three-for-one stock split. 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, Luzerne, 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: 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, 2026 December 31, 2025 ASSETS Cash and due from banks $ 14,540 $ 12,828 Interest-bearing deposits in other banks 21,220 35,712 Total cash and cash equivalents 35,760 48,540 Available-for-sale debt securities, at fair value 324,860 327,245 Marketable equity securities, at fair value 1,647 1,411 Restricted investment in bank stocks, at cost 3,835 5,412 Loans held for sale 2,239 847 Loans receivable 1,208,364 1,177,581 Allowance for credit losses (11,032 ) (9,959 ) Loans, net 1,197,332 1,167,622 Premises and equipment, net 26,196 26,263 Foreclosed assets held for sale 801 320 Accrued interest receivable 5,801 5,063 Bank-owned life insurance 41,428 41,740 Investment in limited partnerships 3,786 4,346 Deferred tax asset, net 7,791 5,992 Goodwill 25,609 25,609 Other intangible assets, net 6,680 8,042 Other assets 4,388 4,747 TOTAL ASSETS $ 1,688,153 $ 1,673,199 LIABILITIES Interest-bearing deposits $ 1,198,095 $ 1,135,740 Noninterest-bearing deposits 273,744 277,012 Total deposits 1,471,839 1,412,752 Short-term borrowings 7,517 12,455 Long-term borrowings - 40,584 Accrued interest payable 1,582 1,644 Other liabilities 14,179 13,223 TOTAL LIABILITIES 1,495,117 1,480,658 STOCKHOLDERS' EQUITY Common stock, par value $1.25 per share; 15,000,000 shares authorized; issued 10,924,389 and outstanding 10,615,664 at September 30, 2026; issued 10,918,987 and outstanding 10,610,262 at December 31, 2025 13,656 4,807 Additional paid-in capital 74,992 83,720 Retained earnings 131,263 119,364 Accumulated other comprehensive loss (15,568 ) (4,043 ) Treasury stock, at cost; 308,725 shares at September 30, 2026 and December 31, 2025 (11,307 ) (11,307 ) TOTAL STOCKHOLDERS' EQUITY 193,036 192,541 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,688,153 $ 1,673,199 * All share amounts have been adjusted to reflect the three-for-one stock split effective May 15, 2026. 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) 2026 2025 2026 2025 INTEREST AND DIVIDEND INCOME Interest and fees on loans: Taxable $ 20,326 $ 19,365 $ 59,313 $ 56,454 Tax-exempt 380 377 1,187 1,195 Interest and dividends on investment securities: Taxable 2,194 1,497 6,229 3,905 Tax-exempt 844 864 2,578 2,584 Dividend and other interest income 120 151 394 484 Deposits in other banks 102 347 565 482 TOTAL INTEREST AND DIVIDEND INCOME 23,966 22,601 70,266 65,104 INTEREST EXPENSE Deposits 6,239 6,255 18,183 18,093 Short-term borrowings 94 168 307 963 Long-term borrowings - 527 931 1,721 TOTAL INTEREST EXPENSE 6,333 6,950 19,421 20,777 NET INTEREST INCOME 17,633 15,651 50,845 44,327 PROVISION FOR CREDIT LOSSES 942 479 1,405 843 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 16,691 15,172 49,440 43,484 NON-INTEREST INCOME Service charges and fees 777 774 2,279 2,205 Interchange fees 659 671 1,948 1,967 Gain (loss) on sale of loans 128 186 (354 ) 340 Earnings on bank-owned life insurance 257 235 746 699 Gain on settlement of bank-owned life insurance claims - - 605 - Brokerage 289 215 837 700 Trust 299 268 878 786 Gains on marketable equity securities 31 48 236 28 Realized losses on available-for-sale debt securities, net (2,404 ) - (3,849 ) (426 ) Other non-interest income 575 495 2,335 1,275 TOTAL NON-INTEREST INCOME 611 2,892 5,661 7,574 NON-INTEREST EXPENSE Salaries and employee benefits 5,417 4,799 16,330 16,103 Occupancy 669 644 2,085 2,004 Furniture and equipment 390 418 1,126 1,304 Pennsylvania shares tax 374 336 1,123 938 Professional fees 327 491 1,416 1,353 Director's fees 158 165 486 483 Federal deposit insurance 195 217 585 652 Data processing and telecommunications 973 877 2,814 2,794 Automated teller machine and interchange 152 230 454 595 Amortization of intangibles 454 511 1,362 1,532 Other non-interest expense 939 1,290 2,884 3,167 TOTAL NON-INTEREST EXPENSE 10,048 9,978 30,665 30,925 INCOME BEFORE INCOME TAX PROVISION 7,254 8,086 24,436 20,133 INCOME TAX PROVISION 1,211 1,367 4,082 3,301 NET INCOME $ 6,043 $ 6,719 $ 20,354 $ 16,832 EARNINGS PER SHARE - BASIC AND DILUTED $ 0.57 $ 0.63 $ 1.92 $ 1.59 WEIGHTED AVERAGE SHARES OUTSTANDING 10,614,065 10,605,026 10,612,212 10,601,738 * All share and per share amounts have been adjusted to reflect the three-for-one stock split effective May 15, 2026. At or Three Months Ended (Unaudited) (Dollars in Thousands, Except Per Share Data) 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 Operating Highlights Net income $ 6,043 $ 7,155 $ 7,156 $ 7,393 $ 6,719 Net interest income 17,633 16,769 16,443 16,272 15,651 Provision (credit) for credit losses 942 394 69 (4 ) 479 Non-interest income 611 2,560 2,490 2,789 2,892 Non-interest expense 10,048 10,420 10,197 10,095 9,978 Balance Sheet Highlights Total assets $ 1,688,153 $ 1,672,332 $ 1,717,328 $ 1,673,199 $ 1,654,950 Loans, net and loans held for sale 1,199,571 1,197,277 1,172,517 1,168,469 1,160,829 Goodwill and other intangibles, net 32,289 32,743 33,197 33,651 34,142 Total deposits Noninterest-bearing $ 273,744 $ 277,392 $ 283,210 $ 277,012 $ 272,376 Savings 196,498 198,675 196,828 192,311 192,903 NOW 490,238 453,593 451,699 461,367 456,661 Money Market 119,398 113,486 127,633 104,726 107,853 Time Deposits 391,961 390,449 394,198 377,336 367,097 Total interest-bearing deposits 1,198,095 1,156,203 1,170,358 1,135,740 1,124,514 Core deposits (a) 1,079,878 1,043,146 1,059,370 1,035,416 1,029,793 Selected Ratios Fully tax-equivalent net interest margin 4.54 % 4.37 % 4.33 % 4.27 % 4.15 % Annualized return on average assets 1.42 % 1.70 % 1.72 % 1.77 % 1.63 % Annualized return on average equity 11.97 % 14.65 % 14.83 % 15.49 % 14.81 % Capital Ratios - Journey Bank (b) Common equity tier I capital ratio 17.11 % 16.74 % 16.29 % 15.92 % 15.69 % Tier 1 capital ratio 17.11 % 16.74 % 16.29 % 15.92 % 15.69 % Total risk-based capital ratio 18.18 % 17.73 % 17.26 % 16.87 % 16.70 % Leverage ratio 10.50 % 10.22 % 9.88 % 9.93 % 9.62 % Asset Quality Ratios Non-performing assets $ 11,272 $ 8,881 $ 9,360 $ 11,978 $ 15,536 Allowance for credit losses - loans 11,032 10,261 9,968 9,959 10,548 Allowance for credit losses to total loans 0.91 % 0.85 % 0.84 % 0.85 % 0.90 % Non-performing assets to total assets 0.67 % 0.53 % 0.55 % 0.72 % 0.94 % Per Share Data Earnings per share $ 0.57 $ 0.67 $ 0.67 $ 0.70 $ 0.63 Dividends declared per share (c) 0.155 0.155 0.487 0.150 0.150 Book value 18.18 18.72 18.10 18.15 17.39 Common stock price: Bid $ 29.50 $ 27.31 $ 21.97 $ 15.94 $ 16.45 Ask 33.00 27.73 23.57 19.85 16.67 Weighted average common shares 10,614,065 10,612,247 10,610,284 10,607,955 10,605,026 * All share and per share amounts have been adjusted to reflect the three-for-one stock split effective May 15, 2026. (a) Core deposits are defined as total deposits less time deposits. (b) Capital ratios for the most recent period are estimated. (c) Includes special one-time cash dividend of $0.333 per share for the three months ended 3/31/2026. Investor Relations 570.784.4400 investorrelations@journeybank.com Source: Muncy Columbia Financial Corporation