Muncy Columbia Financial Corporation Announces Fourth Quarter 2025 Earnings

Muncy Columbia Financial Corporation Announces Fourth Quarter 2025 Earnings January 21, 2026 Muncy Columbia Financial Corporation (“Corporation”) (OTCQX: CCFN), parent company of Journey Bank (”Bank”), has released its unaudited consolidated financial results for the fourth quarter of 2025. Unaudited Financial Information Muncy Columbia Financial Corporation reported record earnings for the fourth quarter 2025 and year ended December 31, 2025. Net income, as reported under accounting principles generally accepted in the United States of America (“GAAP”), for the fourth quarter 2025 was $7,393,000, or $2.09 per share, compared to $5,224,000, or $1.47 per share, for the fourth quarter 2024. Net income, as reported under GAAP, for the year ended December 31, 2025 was $24,225,000, or $6.85 per share compared to $19,023,000, or $5.33 per share for the same period in 2024. Return on average assets and return on average equity were 1.77% and 15.49%, respectively, for the fourth quarter 2025 as compared to 1.30% and 12.30%, respectively, for the fourth quarter 2024. Net interest income of $16,272,000 for the fourth quarter 2025 was up $2,876,000 from the fourth quarter 2024 reflecting an increase in total interest and dividend income of $2,046,000 and a decrease of $830,000 in total interest expense. The fully-tax equivalent net interest margin was 4.27% for the fourth quarter 2025 as compared to 3.63% for the fourth quarter 2024. For the fourth quarter 2025, a $4,000 credit for credit losses was recorded compared to a $567,000 provision for credit losses for the fourth quarter 2024. As of December 31, 2025 the allowance for credit losses to total loans was 0.85% compared to 0.88% as of December 31, 2024. Total non-interest income increased $80,000 to $2,789,000 for the fourth quarter 2025, compared to the fourth quarter 2024 amount of $2,709,000. Total non-interest expense increased $640,000 from $9,455,000 for the fourth quarter 2024, to $10,095,000 for the fourth quarter 2025. Significant variances in total non-interest expense included an increase in salaries and employee benefits of $420,000 due primarily to increases in salaries expense of $123,000, health care expense of $159,000 and other employee benefits of $138,000, an increase in professional fees of $199,000 due primarily to higher internal and external audit fees and consulting costs and an increase in other non-interest expense of $105,000 due primarily to higher overall marketing and advertising costs as well as higher foreclosure and loan workout expenses comparing the fourth quarter 2025 to the fourth quarter 2024. Total assets amounted to $1,673,199,000 at December 31, 2025, as compared to $1,595,958,000 at December 31, 2024. For the year ended December 31, 2025, cash and cash equivalents increased $31,160,000, available-for-sale debt securities increased $3,997,000 and loans receivable, not held for sale, increased by $51,644,000. Total liabilities amounted to $1,480,658,000 at December 31, 2025, as compared to $1,429,548,000 at December 31, 2024. Total deposits increased $120,323,000 while short-term borrowings decreased $55,933,000 and long-term borrowings decreased $14,952,000 during the year ended December 31, 2025. The increase in total deposits during the year ended December 31, 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 in 2026 which will assist in optimizing the Bank’s long-term liquidity needs and balance sheet management strategies. Total non-performing assets amounted to $11,978,000 or 0.72% of total assets at December 31, 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 $11,523,000 at December 31, 2025. Both total non-performing assets and non-accrual loans decreased during the fourth quarter 2025 from their respective amounts at September 30, 2025 of $15,536,000 and $15,466,000. Total stockholders’ equity equated to a book value per share of $54.44 at December 31, 2025 as compared with $47.11 at December 31, 2024. For the fourth 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 year ended December 31, 2025, total cash dividends of $2.30 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 $1.76 for the same period of 2024. The Corporation remains well capitalized, with an equity to assets ratio of 11.51% at December 31, 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)December 31, 2025December 31, 2024ASSETSCash and due from banks $ 12,828 $ 11,200 Interest-bearing deposits in other banks 35,712 6,180 Total cash and cash equivalents 48,540 17,380 Available-for-sale debt securities, at fair value 327,245 323,248 Marketable equity securities, at fair value 1,411 1,355 Restricted investment in bank stocks, at cost 5,412 7,095 Loans held for sale 847 1,691 Loans receivable 1,177,581 1,125,937 Allowance for credit losses (9,959 ) (9,858 ) Loans, net 1,167,622 1,116,079 Premises and equipment, net 26,263 26,484 Foreclosed assets held for sale 320 70 Accrued interest receivable 5,063 4,850 Bank-owned life insurance 41,740 40,953 Investment in limited partnerships 4,346 5,092 Deferred tax asset, net 5,992 10,012 Goodwill 25,609 25,609 Other intangible assets, net 8,042 10,047 Other assets 4,747 5,993 TOTAL ASSETS $ 1,673,199 $ 1,595,958 LIABILITIESInterest-bearing deposits $ 1,135,740 $ 1,032,729 Noninterest-bearing deposits 277,012 259,700 Total deposits 1,412,752 1,292,429 Short-term borrowings 12,455 68,388 Long-term borrowings 40,584 55,536 Accrued interest payable 1,644 1,857 Other liabilities 13,223 11,338 TOTAL LIABILITIES 1,480,658 1,429,548 STOCKHOLDERS' EQUITYCommon stock, par value $1.25 per share; 15,000,000 shares authorized;issued 3,845,479 and outstanding 3,536,754 at December 31, 2025;issued 3,841,438 and outstanding 3,532,713 at December 31, 2024 4,807 4,802 Additional paid-in capital 83,720 83,543 Retained earnings 119,364 103,268 Accumulated other comprehensive loss (4,043 ) (13,896 ) Treasury stock, at cost; 308,725 shares at December 31, 2025 and 2024 (11,307 ) (11,307 ) TOTAL STOCKHOLDERS' EQUITY 192,541 166,410 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,673,199 $ 1,595,958 Muncy Columbia Financial CorporationConsolidated Statements of IncomeFor the Three Months EndedFor the Years EndedDecember 31,December 31,(In Thousands, Except Share and Per Share Data) (Unaudited) 2025 2024 2025 2024 INTEREST AND DIVIDEND INCOMEInterest and fees on loans:Taxable $ 19,548 $ 18,282 $ 76,002 $ 71,513 Tax-exempt 388 412 1,583 1,518 Interest and dividends on investment securities:Taxable 1,675 1,081 5,580 4,256 Tax-exempt 877 853 3,461 3,361 Dividend and other interest income 141 190 625 807 Deposits in other banks 285 50 767 288 TOTAL INTEREST AND DIVIDEND INCOME 22,914 20,868 88,018 81,743 INTEREST EXPENSEDeposits 6,022 6,049 24,115 22,402 Short-term borrowings 140 724 1,103 5,741 Long-term borrowings 480 699 2,201 3,135 TOTAL INTEREST EXPENSE 6,642 7,472 27,419 31,278 NET INTEREST INCOME 16,272 13,396 60,599 50,465 (CREDIT) PROVISION FOR CREDIT LOSSES (4 ) 567 839 837 NET INTEREST INCOME AFTER (CREDIT) PROVISION FOR CREDIT LOSSES 16,276 12,829 59,760 49,628 NON-INTEREST INCOMEService charges and fees 763 723 2,968 2,732 Interchange fees 674 670 2,641 2,640 Gain on sale of loans 163 169 503 413 Earnings on bank-owned life insurance 226 236 925 928 Brokerage 238 198 938 807 Trust 325 290 1,111 943 Gains on marketable equity securities 28 52 56 60 Realized gains (losses) on available-for-sale debt securities, net 4 (77 ) (422 ) (85 ) Other non-interest income 368 448 1,643 1,937 TOTAL NON-INTEREST INCOME 2,789 2,709 10,363 10,375 NON-INTEREST EXPENSESalaries and employee benefits 5,333 4,913 21,720 19,167 Occupancy 619 616 2,623 2,459 Furniture and equipment 400 427 1,704 1,665 Pennsylvania shares tax 301 250 1,239 941 Professional fees 586 387 1,939 1,522 Director's fees 212 276 695 618 Federal deposit insurance 218 225 870 820 Data processing and telecommunications 851 923 3,645 3,595 Automated teller machine and interchange 184 196 779 671 Merger-related expenses - (99 ) - 241 Amortization of intangibles 491 546 2,023 2,202 Other non-interest expense 900 795 3,783 3,761 TOTAL NON-INTEREST EXPENSE 10,095 9,455 41,020 37,662 INCOME BEFORE INCOME TAX PROVISION 8,970 6,083 29,103 22,341 INCOME TAX PROVISION 1,577 859 4,878 3,318 NET INCOME $ 7,393 $ 5,224 $ 24,225 $ 19,023 EARNINGS PER SHARE - BASIC AND DILUTED $ 2.09 $ 1.47 $ 6.85 $ 5.33 WEIGHTED AVERAGE SHARES OUTSTANDING 3,535,985 3,555,920 3,534,435 3,568,145 At or Three Months Ended (Unaudited)(Dollars in Thousands, Except Per Share Data)12/31/20259/30/20256/30/20253/31/202512/31/2024Operating HighlightsNet income $ 7,393 $ 6,719 $ 5,768 $ 4,345 $ 5,224 Net interest income 16,272 15,651 14,808 13,868 13,396 (Credit) provision for credit losses (4 ) 479 254 110 567 Non-interest income 2,789 2,892 2,237 2,445 2,709 Non-interest expense 10,095 9,978 9,856 11,091 9,455 Balance Sheet HighlightsTotal assets $ 1,673,199 $ 1,654,950 $ 1,616,215 $ 1,602,336 $ 1,595,958 Loans, net and loans held for sale 1,168,469 1,160,829 1,149,624 1,135,981 1,117,770 Goodwill and other intangibles, net 33,651 34,142 34,653 35,164 35,656 Total depositsNoninterest-bearing $ 277,012 $ 272,376 $ 272,680 $ 273,783 $ 259,700 Savings 192,311 192,903 194,816 195,748 194,958 NOW 461,367 456,661 422,415 406,330 380,801 Money Market 104,726 107,853 104,677 103,759 108,263 Time Deposits 377,336 367,097 366,475 359,015 348,707 Total interest-bearing deposits 1,135,740 1,124,514 1,088,383 1,064,852 1,032,729 Core deposits* 1,035,416 1,029,793 994,588 979,620 943,722 Selected RatiosFully tax-equivalent net interest margin 4.27 % 4.15 % 4.04 % 3.83 % 3.63 % Annualized return on average assets 1.77 % 1.63 % 1.44 % 1.10 % 1.30 % Annualized return on average equity 15.49 % 14.81 % 13.33 % 10.33 % 12.30 % Capital Ratios - Journey Bank**Common equity tier I capital ratio 15.92 % 15.69 % 15.33 % 15.13 % 15.06 % Tier 1 capital ratio 15.92 % 15.69 % 15.33 % 15.13 % 15.06 % Total risk-based capital ratio 16.87 % 16.70 % 16.33 % 16.13 % 16.03 % Leverage ratio 9.93 % 9.62 % 9.43 % 9.30 % 9.10 % Asset Quality RatiosNon-performing assets $ 11,978 $ 15,536 $ 13,844 $ 12,300 $ 10,117 Allowance for credit losses - loans 9,959 10,548 10,167 9,985 9,858 Allowance for credit losses to total loans 0.85 % 0.90 % 0.88 % 0.87 % 0.88 % Non-performing assets to total assets 0.72 % 0.94 % 0.86 % 0.77 % 0.63 % Per Share DataEarnings per share $ 2.09 $ 1.90 $ 1.63 $ 1.23 $ 1.47 Dividend declared per share*** 0.45 0.45 0.95 0.45 0.44 Book value 54.44 52.17 49.87 48.50 47.11 Common stock price:Bid $ 47.81 $ 49.36 $ 47.25 $ 40.25 $ 41.88 Ask 59.54 50.00 49.05 42.00 42.88 Weighted average common shares 3,535,985 3,535,009 3,533,977 3,532,727 3,555,920 * 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