Muncy Columbia Financial Corporation Announces First Quarter 2026 Earnings

Muncy Columbia Financial Corporation Announces First Quarter 2026 Earnings April 20, 2026 Muncy Columbia Financial Corporation (“Corporation”) (OTCQX: CCFN), parent company of Journey Bank (“Bank”), has released its unaudited consolidated financial results for the first quarter of 2026. Unaudited Financial Information Net income, as reported under accounting principles generally accepted in the United States of America (“GAAP”), for the first quarter 2026 was $7,156,000, or $2.02 per share, compared to $4,345,000, or $1.23 per share, for the first quarter 2025. Return on average assets and return on average equity were 1.72% and 14.83%, respectively, for the first quarter 2026 as compared to 1.10% and 10.33%, respectively, for the first quarter 2025. Net interest income of $16,443,000 for the first quarter 2026 increased $2,575,000 from the first quarter 2025 reflecting an increase in total interest and dividend income of $2,060,000 and a decrease of $515,000 in total interest expense. The fully-tax equivalent net interest margin was 4.33% for the first quarter 2026 as compared to 3.83% for the first quarter 2025. For the first quarter 2026, a $69,000 provision for credit losses was recorded compared to a $110,000 provision for the first quarter 2025. As of March 31, 2026, the allowance for credit losses to total loans was 0.84% compared to 0.85% as of December 31, 2025. Total non-interest income increased $45,000 to $2,490,000 for the first quarter 2026, compared to the first quarter 2025 amount of $2,445,000. For the first quarter 2026, a $637,000 loss on sale of loans was recorded, compared to a gain on sale of loans of $83,000 for the first quarter 2025. On January 28, 2026, the Bank entered into an Asset Purchase and Interim Servicing Agreement pursuant to which the Bank agreed to sell a portfolio of 82 individual delinquent, nonperforming or reperforming 1-4 family residential mortgage loans. The purchase price was approximately $9.1 million and was paid in cash. The outstanding principal balance of the loans was approximately $9.8 million. The resulting pretax loss of $714,000 was recognized during the first quarter 2026. This loss was partially offset by ongoing gains on sale of loans of $77,000 recognized during the first quarter 2026. Other significant variances in total non-interest income included an increase in gains (losses) on marketable equity securities of $113,000 due to market value changes comparing the first quarter 2026 to the first quarter 2025 and an increase in other non-interest income of $580,000 due primarily to a sales tax refund received from the Commonwealth of Pennsylvania of $454,000 during the first quarter 2026 resulting from a state sales and use tax review engagement. Total non-interest expense decreased $894,000 from $11,091,000 for the first quarter 2025, to $10,197,000 for the first quarter 2026. Salaries and employee benefits expense of $5,333,000 for the first quarter 2026 decreased $987,000 from $6,320,000 for the first quarter 2025. The Corporation recorded one-time pretax expenses totaling $1,295,000 in conjunction with the retirement of its Executive Chairman during the first quarter 2025. This decrease was partially offset by health insurance expenses associated with the Corporation’s partially self-funded health insurance plan which were $165,000 higher in the first quarter 2026 than the first quarter 2025 along with ongoing salary and wage increases for employees. Other significant variances in total non-interest expense included an increase in professional fees of $196,000 due primarily to fees paid in conjunction with the sales and use tax review engagement noted above and a decrease in automated teller machine and interchange expenses of $102,000 due primarily to lower automated teller machine processing expenses comparing the first quarter 2026 to the first quarter 2025. Total assets amounted to $1,717,328,000 at March 31, 2026, as compared to $1,673,199,000 at December 31, 2025. For the quarter ended March 31, 2026, cash and cash equivalents increased $11,897,000, available-for-sale debt securities increased $27,948,000 and loans receivable held for investment increased by $3,938,000. Total liabilities amounted to $1,525,270,000 at March 31, 2026, as compared to $1,480,658,000 at December 31, 2025. Total deposits increased $40,816,000 during the quarter ended March 31, 2026, representing strong organic deposit growth. Dividends payable at March 31, 2026, reflect the Corporation’s special one-time cash dividend of $1.00 per share which was declared on February 18, 2026, and is payable on April 23, 2026, to shareholders of record as of April 8, 2026. Total non-performing assets amounted to $9,360,000 or 0.55% of total assets at March 31, 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 $9,095,000 at March 31, 2026. The decrease in non-accrual loans during the first quarter 2026 was largely driven by the loan sale noted above. Total stockholders’ equity equated to a book value per share of $54.29 at March 31, 2026, as compared with $54.44 at December 31, 2025. For the first quarter 2026 total cash dividends of $1.46 per share were declared, which includes the impact of a special one-time cash dividend of $1.00 per share, as compared to $0.45 for the same period of 2025. The Corporation remains well capitalized, with an equity to assets ratio of 11.18% at March 31, 2026, as compared to 11.51% at December 31, 2025. 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)March 31, 2026December 31, 2025ASSETSCash and due from banks $ 13,529 $ 12,828 Interest-bearing deposits in other banks 46,908 35,712 Total cash and cash equivalents 60,437 48,540 Available-for-sale debt securities, at fair value 355,193 327,245 Marketable equity securities, at fair value 1,490 1,411 Restricted investment in bank stocks, at cost 5,319 5,412 Loans held for sale 966 847 Loans receivable 1,181,519 1,177,581 Allowance for credit losses (9,968 ) (9,959 ) Loans, net 1,171,551 1,167,622 Premises and equipment, net 25,991 26,263 Foreclosed assets held for sale 265 320 Accrued interest receivable 5,331 5,063 Bank-owned life insurance 41,992 41,740 Investment in limited partnerships 4,159 4,346 Deferred tax asset, net 6,328 5,992 Goodwill 25,609 25,609 Other intangible assets, net 7,588 8,042 Other assets 5,109 4,747 TOTAL ASSETS $ 1,717,328 $ 1,673,199 LIABILITIESInterest-bearing deposits $ 1,170,358 $ 1,135,740 Noninterest-bearing deposits 283,210 277,012 Total deposits 1,453,568 1,412,752 Short-term borrowings 10,654 12,455 Long-term borrowings 40,649 40,584 Dividends payable 3,537 - Accrued interest payable 1,719 1,644 Other liabilities 15,143 13,223 TOTAL LIABILITIES 1,525,270 1,480,658 STOCKHOLDERS' EQUITYCommon stock, par value $1.25 per share; 15,000,000 shares authorized;issued 3,846,134 and outstanding 3,537,409 at March 31, 2026;issued 3,845,479 and outstanding 3,536,754 at December 31, 2025 4,808 4,807 Additional paid-in capital 83,756 83,720 Retained earnings 121,355 119,364 Accumulated other comprehensive loss (6,554 ) (4,043 ) Treasury stock, at cost; 308,725 shares at March 31, 2026 and December 31, 2025 (11,307 ) (11,307 ) TOTAL STOCKHOLDERS' EQUITY 192,058 192,541 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,717,328 $ 1,673,199 Muncy Columbia Financial CorporationConsolidated Statements of IncomeFor the Three Months EndedMarch 31,(In Thousands, Except Share and Per Share Data) (Unaudited) 2026 2025 INTEREST AND DIVIDEND INCOMEInterest and fees on loans:Taxable $ 19,345 $ 18,284 Tax-exempt 413 398 Interest and dividends on investment securities:Taxable 1,833 1,097 Tax-exempt 870 860 Dividend and other interest income 136 168 Deposits in other banks 304 34 TOTAL INTEREST AND DIVIDEND INCOME 22,901 20,841 INTEREST EXPENSEDeposits 5,893 5,801 Short-term borrowings 95 543 Long-term borrowings 470 629 TOTAL INTEREST EXPENSE 6,458 6,973 NET INTEREST INCOME 16,443 13,868 PROVISION FOR CREDIT LOSSES 69 110 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 16,374 13,758 NON-INTEREST INCOMEService charges and fees 753 722 Interchange fees 617 623 (Loss) gain on sale of loans (637 ) 83 Earnings on bank-owned life insurance 232 231 Brokerage 238 233 Trust 279 238 Gains (losses) on marketable equity securities 79 (34 ) Other non-interest income 929 349 TOTAL NON-INTEREST INCOME 2,490 2,445 NON-INTEREST EXPENSESalaries and employee benefits 5,333 6,320 Occupancy 734 720 Furniture and equipment 379 426 Pennsylvania shares tax 375 301 Professional fees 644 448 Director's fees 167 153 Federal deposit insurance 195 218 Data processing and telecommunications 879 839 Automated teller machine and interchange 162 264 Amortization of intangibles 454 510 Other non-interest expense 875 892 TOTAL NON-INTEREST EXPENSE 10,197 11,091 INCOME BEFORE INCOME TAX PROVISION 8,667 5,112 INCOME TAX PROVISION 1,511 767 NET INCOME $ 7,156 $ 4,345 EARNINGS PER SHARE - BASIC AND DILUTED $ 2.02 $ 1.23 WEIGHTED AVERAGE SHARES OUTSTANDING 3,536,761 3,532,727 At or Three Months Ended (Unaudited)(Dollars in Thousands, Except Per Share Data)3/31/202612/31/20259/30/20256/30/20253/31/2025Operating HighlightsNet income $ 7,156 $ 7,393 $ 6,719 $ 5,768 $ 4,345 Net interest income 16,443 16,272 15,651 14,808 13,868 Provision (credit) for credit losses 69 (4 ) 479 254 110 Non-interest income 2,490 2,789 2,892 2,237 2,445 Non-interest expense 10,197 10,095 9,978 9,856 11,091 Balance Sheet HighlightsTotal assets $ 1,717,328 $ 1,673,199 $ 1,654,950 $ 1,616,215 $ 1,602,336 Loans, net and loans held for sale 1,172,517 1,168,469 1,160,829 1,149,624 1,135,981 Goodwill and other intangibles, net 33,197 33,651 34,142 34,653 35,164 Total depositsNoninterest-bearing $ 283,210 $ 277,012 $ 272,376 $ 272,680 $ 273,783 Savings 196,828 192,311 192,903 194,816 195,748 NOW 451,699 461,367 456,661 422,415 406,330 Money Market 127,633 104,726 107,853 104,677 103,759 Time Deposits 394,198 377,336 367,097 366,475 359,015 Total interest-bearing deposits 1,170,358 1,135,740 1,124,514 1,088,383 1,064,852 Core deposits* 1,059,370 1,035,416 1,029,793 994,588 979,620 Selected RatiosFully tax-equivalent net interest margin 4.33 % 4.27 % 4.15 % 4.04 % 3.83 % Annualized return on average assets 1.72 % 1.77 % 1.63 % 1.44 % 1.10 % Annualized return on average equity 14.83 % 15.49 % 14.81 % 13.33 % 10.33 % Capital Ratios - Journey Bank**Common equity tier I capital ratio 15.87 % 15.92 % 15.69 % 15.33 % 15.13 % Tier 1 capital ratio 15.87 % 15.92 % 15.69 % 15.33 % 15.13 % Total risk-based capital ratio 16.81 % 16.87 % 16.70 % 16.33 % 16.13 % Leverage ratio 9.89 % 9.93 % 9.62 % 9.43 % 9.30 % Asset Quality RatiosNon-performing assets $ 9,360 $ 11,978 $ 15,536 $ 13,844 $ 12,300 Allowance for credit losses - loans 9,968 9,959 10,548 10,167 9,985 Allowance for credit losses to total loans 0.84 % 0.85 % 0.90 % 0.88 % 0.87 % Non-performing assets to total assets 0.55 % 0.72 % 0.94 % 0.86 % 0.77 % Per Share DataEarnings per share $ 2.02 $ 2.09 $ 1.90 $ 1.63 $ 1.23 Dividends declared per share*** 1.46 0.45 0.45 0.95 0.45 Book value 54.29 54.44 52.17 49.87 48.50 Common stock price:Bid $ 65.90 $ 47.81 $ 49.36 $ 47.25 $ 40.25 Ask 70.72 59.54 50.00 49.05 42.00 Weighted average common shares 3,536,761 3,535,985 3,535,009 3,533,977 3,532,727 * Core deposits are defined as total deposits less time deposits** Capital ratios for the most recent period are estimated*** Includes special one-time cash dividends of $1.00 per share for the three months ended 3/31/2026 and $0.50 per share for the three months ended 6/30/2025 Source: Muncy Columbia Financial Corporation