Muncy Columbia Financial Corporation Announces Second Quarter 2026 Earnings

Muncy Columbia Financial Corporation Announces Second Quarter 2026 Earnings July 20, 2026 Muncy Columbia Financial Corporation (“Corporation”) (OTCQX: CCFN), parent company of Journey Bank (“Bank”), has released its unaudited consolidated financial results for the second quarter of 2026. Unaudited Financial Information Net income, as reported under accounting principles generally accepted in the United States of America (“GAAP”), for the second quarter 2026 was $7,155,000, or $0.67 per share, compared to $5,768,000, or $0.54 per share, for the second quarter 2025. Net income, as reported under GAAP, for the six months ended June 30, 2026 was $14,311,000, or $1.35 per share, compared to $10,113,000, or $0.95 per share for the same period in 2025. Return on average assets and return on average equity were 1.70% and 14.65%, respectively, for the second quarter 2026 as compared to 1.44% and 13.33%, respectively, for the second quarter 2025. Net interest income of $16,769,000 for the second quarter 2026 increased $1,961,000 from the second quarter 2025 amount of $14,808,000, reflecting an increase in total interest and dividend income of $1,737,000 and a decrease of $224,000 in total interest expense. The fully-tax equivalent net interest margin was 4.37% for the second quarter 2026 as compared to 4.04% for the second quarter 2025. For the second quarter 2026, a $394,000 provision for credit losses was recorded compared to a $254,000 provision for the second quarter 2025. The allowance for credit losses to total loans was 0.85% at both June 30, 2026 and December 31, 2025. Total non-interest income increased $323,000 to $2,560,000 for the second quarter 2026, compared to the second quarter 2025 amount of $2,237,000. Realized losses on available-for-sale debt securities, net, totaled $1,445,000 for the second quarter 2026 compared to $426,000 for the second quarter 2025. This change was offset by $605,000 of one-time gains recognized related to bank-owned life insurance claims in the second quarter 2026 as well as an increase in other non-interest income of $400,000 which was primarily related to incentives received pursuant to the Bank’s debit card processing contract during the second quarter 2026. Total non-interest expense increased $564,000 from $9,856,000 for the second quarter 2025, to $10,420,000 for the second quarter 2026. Salaries and employee benefits expense of $5,580,000 for the second quarter 2026 increased $596,000 from $4,984,000 for the second quarter 2025. This increase was related to health insurance expenses associated with the Corporation’s partially self-funded health insurance plan which were $316,000 higher in the second quarter 2026 than the second 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 data processing and telecommunications expenses of $116,000 due to one-time charges incurred in conjunction with the implementation of new products during the second quarter 2025. Total assets amounted to $1,672,332,000 at June 30, 2026, as compared to $1,673,199,000 at December 31, 2025. For the six months ended June 30, 2026, cash and cash equivalents decreased $28,396,000 and loans receivable held for investment increased by $28,603,000. Total liabilities amounted to $1,473,665,000 at June 30, 2026, as compared to $1,480,658,000 at December 31, 2025. Total deposits increased $20,843,000 while short-term borrowings increased $11,841,000 and long-term borrowings decreased $40,584,000 during the six months ended June 30, 2026. During the second quarter 2026, the Corporation prepaid, in full, its outstanding long-term FHLB borrowings. Total non-performing assets amounted to $8,881,000 or 0.53% of total assets at June 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 $8,881,000 at June 30, 2026. Total stockholders’ equity equated to a book value per share of $18.72 at June 30, 2026, as compared with $18.15 at December 31, 2025. For the second quarter 2026 total cash dividends of $0.155 per share were declared as compared to $0.317 for the same period of 2025. For the six months ended June 30, 2026, total cash dividends of $0.642 per share were declared as compared to $0.467 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 six months ended June 30, 2026 and 2025, respectively. The Corporation remains well capitalized, with an equity to assets ratio of 11.88% at June 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 CorporationConsolidated Balance Sheets(In Thousands, Except Share and Per Share Data) (Unaudited)June 30, 2026December 31, 2025ASSETSCash and due from banks $ 16,327 $ 12,828 Interest-bearing deposits in other banks 3,817 35,712 Total cash and cash equivalents 20,144 48,540 Available-for-sale debt securities, at fair value 328,225 327,245 Marketable equity securities, at fair value 1,616 1,411 Restricted investment in bank stocks, at cost 4,690 5,412 Loans held for sale 1,354 847 Loans receivable 1,206,184 1,177,581 Allowance for credit losses (10,261 ) (9,959 ) Loans, net 1,195,923 1,167,622 Premises and equipment, net 26,449 26,263 Foreclosed assets held for sale - 320 Accrued interest receivable 5,567 5,063 Bank-owned life insurance 41,170 41,740 Investment in limited partnerships 3,973 4,346 Deferred tax asset, net 5,809 5,992 Goodwill 25,609 25,609 Other intangible assets, net 7,134 8,042 Other assets 4,669 4,747 TOTAL ASSETS $ 1,672,332 $ 1,673,199 LIABILITIESInterest-bearing deposits $ 1,156,203 $ 1,135,740 Noninterest-bearing deposits 277,392 277,012 Total deposits 1,433,595 1,412,752 Short-term borrowings 24,296 12,455 Long-term borrowings - 40,584 Accrued interest payable 1,539 1,644 Other liabilities 14,235 13,223 TOTAL LIABILITIES 1,473,665 1,480,658 STOCKHOLDERS' EQUITYCommon stock, par value $1.25 per share; 15,000,000 shares authorized;issued 10,922,772 and outstanding 10,614,047 at June 30, 2026;issued 10,918,987 and outstanding 10,610,262 at December 31, 2025 13,653 4,807 Additional paid-in capital 74,949 83,720 Retained earnings 126,866 119,364 Accumulated other comprehensive loss (5,494 ) (4,043 ) Treasury stock, at cost; 308,725 shares at June 30, 2026 and December 31, 2025 (11,307 ) (11,307 ) TOTAL STOCKHOLDERS' EQUITY 198,667 192,541 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,672,332 $ 1,673,199 * All share amounts have been adjusted to reflect the three-for-one stock split effective May 15, 2026.Muncy Columbia Financial CorporationConsolidated Statements of Income For the Three Months Ended For the Six Months Ended June 30, June 30, (In Thousands, Except Share and Per Share Data) (Unaudited) 2026 2025 2026 2025 INTEREST AND DIVIDEND INCOMEInterest and fees on loans:Taxable $ 19,642 $ 18,805 $ 38,987 $ 37,089 Tax-exempt 394 420 807 818 Interest and dividends on investment securities:Taxable 2,202 1,311 4,035 2,408 Tax-exempt 864 860 1,734 1,720 Dividend and other interest income 138 165 274 333 Deposits in other banks 159 101 463 135 TOTAL INTEREST AND DIVIDEND INCOME 23,399 21,662 46,300 42,503 INTEREST EXPENSEDeposits 6,051 6,037 11,944 11,838 Short-term borrowings 118 252 213 795 Long-term borrowings 461 565 931 1,194 TOTAL INTEREST EXPENSE 6,630 6,854 13,088 13,827 NET INTEREST INCOME 16,769 14,808 33,212 28,676 PROVISION FOR CREDIT LOSSES 394 254 463 364 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 16,375 14,554 32,749 28,312 NON-INTEREST INCOMEService charges and fees 749 709 1,502 1,431 Interchange fees 672 673 1,289 1,296 Gain (loss) on sale of loans 155 71 (482 ) 154 Earnings on bank-owned life insurance 257 233 489 464 Gain on settlement of bank-owned life insurance claims 605 - 605 - Brokerage 310 252 548 485 Trust 300 280 579 518 Gains (losses) on marketable equity securities 126 14 205 (20 ) Realized losses on available-for-sale debt securities, net (1,445 ) (426 ) (1,445 ) (426 ) Other non-interest income 831 431 1,760 780 TOTAL NON-INTEREST INCOME 2,560 2,237 5,050 4,682 NON-INTEREST EXPENSESalaries and employee benefits 5,580 4,984 10,913 11,304 Occupancy 682 640 1,416 1,360 Furniture and equipment 357 460 736 886 Pennsylvania shares tax 374 301 749 602 Professional fees 445 414 1,089 862 Director's fees 161 165 328 318 Federal deposit insurance 195 217 390 435 Data processing and telecommunications 962 1,078 1,841 1,917 Automated teller machine and interchange 140 101 302 365 Amortization of intangibles 454 511 908 1,021 Other non-interest expense 1,070 985 1,945 1,877 TOTAL NON-INTEREST EXPENSE 10,420 9,856 20,617 20,947 INCOME BEFORE INCOME TAX PROVISION 8,515 6,935 17,182 12,047 INCOME TAX PROVISION 1,360 1,167 2,871 1,934 NET INCOME $ 7,155 $ 5,768 $ 14,311 $ 10,113 EARNINGS PER SHARE - BASIC AND DILUTED $ 0.67 $ 0.54 $ 1.35 $ 0.95 WEIGHTED AVERAGE SHARES OUTSTANDING 10,612,247 10,601,932 10,611,271 10,600,067 * 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)6/30/20263/31/202612/31/20259/30/20256/30/2025Operating HighlightsNet income $ 7,155 $ 7,156 $ 7,393 $ 6,719 $ 5,768 Net interest income 16,769 16,443 16,272 15,651 14,808 Provision (credit) for credit losses 394 69 (4 ) 479 254 Non-interest income 2,560 2,490 2,789 2,892 2,237 Non-interest expense 10,420 10,197 10,095 9,978 9,856 Balance Sheet HighlightsTotal assets $ 1,672,332 $ 1,717,328 $ 1,673,199 $ 1,654,950 $ 1,616,215 Loans, net and loans held for sale 1,197,277 1,172,517 1,168,469 1,160,829 1,149,624 Goodwill and other intangibles, net 32,743 33,197 33,651 34,142 34,653 Total depositsNoninterest-bearing $ 277,392 $ 283,210 $ 277,012 $ 272,376 $ 272,680 Savings 198,675 196,828 192,311 192,903 194,816 NOW 453,593 451,699 461,367 456,661 422,415 Money Market 113,486 127,633 104,726 107,853 104,677 Time Deposits 390,449 394,198 377,336 367,097 366,475 Total interest-bearing deposits 1,156,203 1,170,358 1,135,740 1,124,514 1,088,383 Core deposits (a) 1,043,146 1,059,370 1,035,416 1,029,793 994,588 Selected RatiosFully tax-equivalent net interest margin 4.37 % 4.33 % 4.27 % 4.15 % 4.04 % Annualized return on average assets 1.70 % 1.72 % 1.77 % 1.63 % 1.44 % Annualized return on average equity 14.65 % 14.83 % 15.49 % 14.81 % 13.33 % Capital Ratios - Journey Bank (b)Common equity tier I capital ratio 16.74 % 16.29 % 15.92 % 15.69 % 15.33 % Tier 1 capital ratio 16.74 % 16.29 % 15.92 % 15.69 % 15.33 % Total risk-based capital ratio 17.73 % 17.26 % 16.87 % 16.70 % 16.33 % Leverage ratio 10.22 % 9.88 % 9.93 % 9.62 % 9.43 % Asset Quality RatiosNon-performing assets $ 8,881 $ 9,360 $ 11,978 $ 15,536 $ 13,844 Allowance for credit losses - loans 10,261 9,968 9,959 10,548 10,167 Allowance for credit losses to total loans 0.85 % 0.84 % 0.85 % 0.90 % 0.88 % Non-performing assets to total assets 0.53 % 0.55 % 0.72 % 0.94 % 0.86 % Per Share DataEarnings per share $ 0.67 $ 0.67 $ 0.70 $ 0.63 $ 0.54 Dividends declared per share (c) 0.155 0.487 0.150 0.150 0.317 Book value 18.72 18.10 18.15 17.39 16.62 Common stock price:Bid $ 27.31 $ 21.97 $ 15.94 $ 16.45 $ 15.75 Ask 27.73 23.57 19.85 16.67 16.35 Weighted average common shares 10,612,247 10,610,284 10,607,955 10,605,027 10,601,932 * 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 dividends of $0.333 per share for the three months ended 3/31/2026 and $0.167 per share for the three months ended 6/30/2025. Source: Muncy Columbia Financial Corporation