Muncy Columbia Financial Corporation Announces Third Quarter 2025 Earnings

Muncy Columbia Financial Corporation Announces Third Quarter 2025 Earnings October 17, 2025 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 2025. Unaudited Financial Information Net income, as reported under accounting principles generally accepted in the United States of America (“GAAP”), for the third quarter 2025 was $6,719,000, or $1.90 per share, compared to $5,056,000, or $1.42 per share, for the third quarter 2024. Net income, as reported under GAAP, for the nine months ended September 30, 2025 was $16,832,000, or $4.76 per share compared to $13,799,000, or $3.86 per share for the same period in 2024. Return on average assets and return on average equity were 1.63% and 14.81%, respectively, for the third quarter 2025 as compared to 1.26% and 12.34%, respectively, for the third quarter 2024. Net interest income of $15,651,000 for the third quarter 2025 was up $2,877,000 from the third quarter 2024 reflecting an increase in total interest and dividend income of $1,810,000 and a decrease of $1,067,000 in total interest expense. The fully-tax equivalent net interest margin was 4.15% for the third quarter 2025 as compared to 3.48% for the third quarter 2024. For the third quarter 2025, a $479,000 provision for credit losses was recorded compared to $151,000 for the third quarter 2024. As of September 30, 2025 the allowance for credit losses to total loans was 0.90% compared to 0.88% as of December 31, 2024. Total non-interest income increased $177,000 to $2,892,000 for the third quarter 2025, compared to the third quarter 2024 amount of $2,715,000. This change was primarily due to increases in gain on sale of loans and other non-interest income of $111,000 and $81,000, respectively, due to an increase in mortgage sale activity and a one-time gain of $120,000 related to a bank-owned life insurance claim. These increases were partially offset by a decrease in gains on marketable equity securities of $115,000 due to market value changes comparing the third quarter 2025 to the third quarter 2024. Total non-interest expense increased $611,000 from $9,367,000 for the third quarter 2024, to $9,978,000 for the third quarter 2025. Significant variances included an increase in professional fees of $132,000 due primarily to higher legal and consulting costs, an increase in automated teller machine and interchange of $123,000 due primarily to higher debit card marketing expenses and an increase in other non-interest expense of $175,000 due primarily to higher overall marketing and advertising costs comparing the third quarter 2025 to the third quarter 2024. Total assets amounted to $1,654,950,000 at September 30, 2025, as compared to $1,595,958,000 at December 31, 2024. For the nine months ended September 30, 2025, cash and cash equivalents increased $27,946,000, available-for-sale debt securities decreased $5,448,000 and loans receivable, not held for sale, increased by $44,018,000. Total liabilities amounted to $1,470,465,000 at September 30, 2025, as compared to $1,429,548,000 at December 31, 2024. Total deposits increased $104,461,000 while short-term borrowings decreased $51,495,000 and long-term borrowings decreased $15,017,000 during the nine months ended September 30, 2025. The increase in total deposits during the nine months ended September 30, 2025 was as a result of strong organic deposit growth in combination with the continued execution of a strategic initiative to reposition customer repurchase agreements, which are classified as short-term borrowings, into core deposit accounts. The Bank anticipates the completion of this project later in 2025 which will assist in optimizing the Bank’s long-term liquidity needs and balance sheet management strategies. Total non-performing assets amounted to $15,536,000 or 0.94% of total assets at September 30, 2025, as compared to $10,117,000 or 0.63% of total assets at December 31, 2024. The increase in non-performing assets was attributable to an increase in non-accrual loans from $10,047,000 at December 31, 2024 to $15,466,000 at September 30, 2025. Total stockholders’ equity equated to a book value per share of $52.17 at September 30, 2025 as compared with $47.11 at December 31, 2024. For the third quarter 2025 total cash dividends of $0.45 per share were paid to stockholders as compared to $0.44 for the same period of 2024. For the nine months ended September 30, 2025, total cash dividends of $1.85 per share were paid to stockholders, which includes the impact of a special one-time cash dividend of $0.50 per share, as compared to $1.32 for the same period of 2024. The Corporation remains well capitalized, with an equity to assets ratio of 11.15% at September 30, 2025 as compared to 10.43% at December 31, 2024. 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)September 30, 2025December 31, 2024ASSETSCash and due from banks $ 13,640 $ 11,200 Interest-bearing deposits in other banks 31,686 6,180 Total cash and cash equivalents 45,326 17,380 Available-for-sale debt securities, at fair value 317,800 323,248 Marketable equity securities, at fair value 1,383 1,355 Restricted investment in bank stocks, at cost 5,442 7,095 Loans held for sale 1,520 1,691 Loans receivable 1,169,857 1,125,937 Allowance for credit losses (10,548 ) (9,858 ) Loans, net 1,159,309 1,116,079 Premises and equipment, net 26,496 26,484 Foreclosed assets held for sale 70 70 Accrued interest receivable 5,132 4,850 Bank-owned life insurance 41,515 40,953 Investment in limited partnerships 4,532 5,092 Deferred tax asset, net 7,032 10,012 Goodwill 25,609 25,609 Other intangible assets, net 8,533 10,047 Other assets 5,251 5,993 TOTAL ASSETS $ 1,654,950 $ 1,595,958 LIABILITIESInterest-bearing deposits $ 1,124,514 $ 1,032,729 Noninterest-bearing deposits 272,376 259,700 Total deposits 1,396,890 1,292,429 Short-term borrowings 16,893 68,388 Long-term borrowings 40,519 55,536 Accrued interest payable 1,779 1,857 Other liabilities 14,384 11,338 TOTAL LIABILITIES 1,470,465 1,429,548 STOCKHOLDERS' EQUITYCommon stock, par value $1.25 per share; 15,000,000 shares authorized;issued 3,844,702 and outstanding 3,535,977 at September 30, 2025;issued 3,841,438 and outstanding 3,532,713 at December 31, 2024 4,806 4,802 Additional paid-in capital 83,682 83,543 Retained earnings 113,562 103,268 Accumulated other comprehensive loss (6,258 ) (13,896 ) Treasury stock, at cost; 308,725 shares at September 30, 2025 and December 31, 2024 (11,307 ) (11,307 ) TOTAL STOCKHOLDERS' EQUITY 184,485 166,410 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,654,950 $ 1,595,958 Muncy Columbia Financial CorporationConsolidated Statements of IncomeFor the Three Months EndedFor the Nine Months EndedSeptember 30,September 30,(In Thousands, Except Share and Per Share Data) (Unaudited) 2025 2024 2025 2024 INTEREST AND DIVIDEND INCOMEInterest and fees on loans:Taxable $ 19,365 $ 18,234 $ 56,454 $ 53,231 Tax-exempt 377 421 1,195 1,106 Interest and dividends on investment securities:Taxable 1,497 994 3,905 3,175 Tax-exempt 864 842 2,584 2,508 Dividend and other interest income 151 190 484 617 Deposits in other banks 347 110 482 238 TOTAL INTEREST AND DIVIDEND INCOME 22,601 20,791 65,104 60,875 INTEREST EXPENSEDeposits 6,255 6,133 18,093 16,353 Short-term borrowings 168 1,093 963 5,017 Long-term borrowings 527 791 1,721 2,436 TOTAL INTEREST EXPENSE 6,950 8,017 20,777 23,806 NET INTEREST INCOME 15,651 12,774 44,327 37,069 PROVISION FOR CREDIT LOSSES 479 151 843 270 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 15,172 12,623 43,484 36,799 NON-INTEREST INCOMEService charges and fees 774 727 2,205 2,009 Interchange fees 671 664 1,967 1,970 Gain on sale of loans 186 75 340 244 Earnings on bank-owned life insurance 235 236 699 692 Brokerage 215 193 700 609 Trust 268 243 786 653 Gains on marketable equity securities 48 163 28 8 Realized losses on available-for-sale debt securities, net - - (426 ) (8 ) Other non-interest income 495 414 1,275 1,489 TOTAL NON-INTEREST INCOME 2,892 2,715 7,574 7,666 NON-INTEREST EXPENSESalaries and employee benefits 4,799 4,704 16,103 14,146 Occupancy 644 644 2,004 1,843 Furniture and equipment 418 448 1,304 1,238 Pennsylvania shares tax 336 251 938 691 Professional fees 491 359 1,353 1,135 Director's fees 165 103 483 342 Federal deposit insurance 217 187 652 595 Data processing and telecommunications 877 848 2,794 2,672 Automated teller machine and interchange 230 107 595 475 Merger-related expenses - 43 - 340 Amortization of intangibles 511 558 1,532 1,656 Other non-interest expense 1,290 1,115 3,167 3,074 TOTAL NON-INTEREST EXPENSE 9,978 9,367 30,925 28,207 INCOME BEFORE INCOME TAX PROVISION 8,086 5,971 20,133 16,258 INCOME TAX PROVISION 1,367 915 3,301 2,459 NET INCOME $ 6,719 $ 5,056 $ 16,832 $ 13,799 EARNINGS PER SHARE - BASIC AND DILUTED $ 1.90 $ 1.42 $ 4.76 $ 3.86 WEIGHTED AVERAGE SHARES OUTSTANDING 3,535,009 3,574,043 3,533,913 3,572,250 At or 3 Months Ended (Unaudited)(Dollars in Thousands, Except Per Share Data)9/30/20256/30/20253/31/202512/31/20249/30/2024Operating HighlightsNet income $ 6,719 $ 5,768 $ 4,345 $ 5,224 $ 5,056 Net interest income 15,651 14,808 13,868 13,396 12,774 Provision for credit losses 479 254 110 567 151 Non-interest income 2,892 2,237 2,445 2,709 2,715 Non-interest expense 9,978 9,856 11,091 9,455 9,367 Balance Sheet HighlightsTotal assets $ 1,654,950 $ 1,616,215 $ 1,602,336 $ 1,595,958 $ 1,607,322 Loans, net and loans held for sale 1,160,829 1,149,624 1,135,981 1,117,770 1,105,421 Goodwill and other intangibles, net 34,142 34,653 35,164 35,656 36,202 Total depositsNoninterest-bearing $ 272,376 $ 272,680 $ 273,783 $ 259,700 $ 269,515 Savings 192,903 194,816 195,748 194,958 192,644 NOW 456,661 422,415 406,330 380,801 364,459 Money Market 107,853 104,677 103,759 108,263 112,319 Time Deposits 367,097 366,475 359,015 348,707 351,532 Total interest-bearing deposits 1,124,514 1,088,383 1,064,852 1,032,729 1,020,954 Core deposits* 1,029,793 994,588 979,620 943,722 938,937 Selected RatiosFully tax-equivalent net interest margin 4.15 % 4.04 % 3.83 % 3.63 % 3.48 % Annualized return on average assets 1.63 % 1.44 % 1.10 % 1.30 % 1.26 % Annualized return on average equity 14.81 % 13.33 % 10.33 % 12.30 % 12.34 % Capital Ratios - Journey Bank**Common equity tier I capital ratio 15.71 % 15.33 % 15.13 % 15.06 % 14.59 % Tier 1 capital ratio 15.71 % 15.33 % 15.13 % 15.06 % 14.59 % Total risk-based capital ratio 16.74 % 16.33 % 16.13 % 16.03 % 15.54 % Leverage ratio 9.62 % 9.43 % 9.30 % 9.10 % 8.82 % Asset Quality RatiosNon-performing assets $ 15,536 $ 13,844 $ 12,300 $ 10,117 $ 8,575 Allowance for credit losses - loans 10,548 10,167 9,985 9,858 9,415 Allowance for credit losses to total loans 0.90 % 0.88 % 0.87 % 0.88 % 0.85 % Non-performing assets to total assets 0.94 % 0.86 % 0.77 % 0.63 % 0.53 % Per Share DataEarnings per share $ 1.90 $ 1.63 $ 1.23 $ 1.47 $ 1.42 Dividend declared per share*** 0.45 0.95 0.45 0.44 0.44 Book value 52.17 49.87 48.50 47.11 47.35 Common stock price:Bid $ 49.36 $ 47.25 $ 40.25 $ 41.88 $ 33.35 Ask 50.00 49.05 42.00 42.88 34.25 Weighted average common shares 3,535,009 3,533,977 3,532,727 3,555,920 3,574,043 * Core deposits are defined as total deposits less time deposits** Capital ratios for the most recent period are estimated*** Includes special one-time cash dividend of $0.50 per share for the three months ended 6/30/2025 Source: Muncy Columbia Financial Corporation