Muncy Columbia Financial Corporation Announces Second Quarter 2025 Earnings

Muncy Columbia Financial Corporation Announces Second Quarter 2025 Earnings July 18, 2025 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 2025. Unaudited Financial Information Net income, as reported under accounting principles generally accepted in the United States of America (“GAAP”), for the second quarter 2025 was $5,768,000, or $1.63 per share, compared to $4,707,000, or $1.32 per share, for the second quarter 2024. Net income, as reported under GAAP, for the six months ended June 30, 2025 was $10,113,000, or $2.86 per share compared to $8,743,000, or $2.45 per share for the same period in 2024. Return on average assets and return on average equity were 1.44% and 13.33%, respectively, for the second quarter 2025 as compared to 1.20% and 12.28%, respectively, for the second quarter 2024. Net interest income of $14,808,000 for the second quarter 2025 was up $2,448,000 from the second quarter 2024 reflecting an increase in total interest and dividend income of $1,467,000 and a decrease of $981,000 in total interest expense. The fully-tax equivalent net interest margin was 4.04% for the second quarter 2025 as compared to 3.43% for the second quarter 2024. For the second quarter 2025, a $254,000 provision for credit losses was recorded compared to $29,000 for the second quarter 2024. As of June 30, 2025 and December 31, 2024, the allowance for credit losses to total loans was 0.88%. Total non-interest income decreased $182,000 to $2,237,000 for the second quarter 2025, compared to the second quarter 2024 amount of $2,419,000. Realized losses on available-for-sale debt securities, net, totaled $426,000 for the second quarter 2025 compared to $0 for the second quarter 2024. This change was partially offset by increases in brokerage income and trust income of $60,000 and $76,000, respectively, due primarily to higher assets under management, and an increase in gains on marketable equity securities of $52,000 due to market value changes comparing the second quarter 2025 to the second quarter 2024. Total non-interest expense increased $662,000 from $9,194,000 for the second quarter 2024, to $9,856,000 for the second quarter 2025. Salaries and employee benefits expense of $4,984,000 for the second quarter 2025 increased $344,000 from $4,640,000 for the second quarter 2024. This increase was related to health insurance expenses associated with the Corporation’s partially self-funded health insurance plan which were $397,000 higher in the second quarter 2025 than the second quarter 2024. Additionally, data processing and telecommunications expenses increased $174,000 comparing the second quarter 2025 to the second quarter 2024 due to ongoing pricing increases and one-time charges in conjunction with the implementation of new products. Total assets amounted to $1,616,215,000 at June 30, 2025, as compared to $1,595,958,000 at December 31, 2024. For the six months ended June 30, 2025, cash and cash equivalents increased $23,332,000, available-for-sale debt securities decreased $30,484,000 and loans receivable, not held for sale, increased by $31,135,000. Total liabilities amounted to $1,439,940,000 at June 30, 2025, as compared to $1,429,548,000 at December 31, 2024. Total deposits increased $68,634,000 while short-term borrowings decreased $50,267,000 and long-term borrowings decreased $10,085,000 during the six months ended June 30, 2025. The increase in total deposits during the six months ended June 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 $13,844,000 or 0.86% of total assets at June 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 $13,774,000 at June 30, 2025. Total stockholders’ equity equated to a book value per share of $49.87 at June 30, 2025 as compared with $47.11 at December 31, 2024. For the second quarter 2025 total cash dividends of $0.95 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 $0.44 for the same period of 2024. The Corporation remains well capitalized, with an equity to assets ratio of 10.91% at June 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, 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, 2025December 31, 2024ASSETSCash and due from banks $ 15,472 $ 11,200 Interest-bearing deposits in other banks 25,240 6,180 Total cash and cash equivalents 40,712 17,380 Available-for-sale debt securities, at fair value 292,764 323,248 Marketable equity securities, at fair value 1,335 1,355 Restricted investment in bank stocks, at cost 5,703 7,095 Loans held for sale 2,719 1,691 Loans receivable 1,157,072 1,125,937 Allowance for credit losses (10,167 ) (9,858 ) Loans, net 1,146,905 1,116,079 Premises and equipment, net 26,789 26,484 Foreclosed assets held for sale 70 70 Accrued interest receivable 5,063 4,850 Bank-owned life insurance 41,461 40,953 Investment in limited partnerships 4,719 5,092 Deferred tax asset, net 8,208 10,012 Goodwill 25,609 25,609 Other intangible assets, net 9,044 10,047 Other assets 5,114 5,993 TOTAL ASSETS $ 1,616,215 $ 1,595,958 LIABILITIESInterest-bearing deposits $ 1,088,383 $ 1,032,729 Noninterest-bearing deposits 272,680 259,700 Total deposits 1,361,063 1,292,429 Short-term borrowings 18,121 68,388 Long-term borrowings 45,451 55,536 Accrued interest payable 1,778 1,857 Other liabilities 13,527 11,338 TOTAL LIABILITIES 1,439,940 1,429,548 STOCKHOLDERS' EQUITYCommon stock, par value $1.25 per share; 15,000,000 shares authorized;issued 3,843,723 and outstanding 3,534,998 at June 30, 2025;issued 3,841,438 and outstanding 3,532,713 at December 31, 2024 4,805 4,802 Additional paid-in capital 83,636 83,543 Retained earnings 108,434 103,268 Accumulated other comprehensive loss (9,293 ) (13,896 ) Treasury stock, at cost; 308,725 shares at June 30, 2025 and December 31, 2024 (11,307 ) (11,307 ) TOTAL STOCKHOLDERS' EQUITY 176,275 166,410 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,616,215 $ 1,595,958 Muncy Columbia Financial CorporationConsolidated Statements of IncomeFor the Three Months EndedFor the Six Months EndedJune 30,June 30,(In Thousands, Except Share and Per Share Data) (Unaudited) 2025 2024 2025 2024 INTEREST AND DIVIDEND INCOMEInterest and fees on loans:Taxable $ 18,805 $ 17,741 $ 37,089 $ 34,997 Tax-exempt 420 332 818 685 Interest and dividends on investment securities:Taxable 1,311 1,020 2,408 2,181 Tax-exempt 860 836 1,720 1,666 Dividend and other interest income 165 204 333 427 Deposits in other banks 101 62 135 128 TOTAL INTEREST AND DIVIDEND INCOME 21,662 20,195 42,503 40,084 INTEREST EXPENSEDeposits 6,037 5,610 11,838 10,220 Short-term borrowings 252 1,427 795 3,924 Long-term borrowings 565 798 1,194 1,645 TOTAL INTEREST EXPENSE 6,854 7,835 13,827 15,789 NET INTEREST INCOME 14,808 12,360 28,676 24,295 PROVISION FOR CREDIT LOSSES 254 29 364 119 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 14,554 12,331 28,312 24,176 NON-INTEREST INCOMEService charges and fees 709 667 1,431 1,282 Interchange fees 673 687 1,296 1,306 Gain on sale of loans 71 93 154 169 Earnings on bank-owned life insurance 233 229 464 456 Brokerage 252 192 485 416 Trust 280 204 518 410 Gains (losses) on marketable equity securities 14 (38 ) (20 ) (155 ) Realized losses on available-for-sale debt securities, net (426 ) - (426 ) (8 ) Other non-interest income 431 385 780 1,075 TOTAL NON-INTEREST INCOME 2,237 2,419 4,682 4,951 NON-INTEREST EXPENSESalaries and employee benefits 4,984 4,640 11,304 9,442 Occupancy 640 581 1,360 1,199 Furniture and equipment 460 384 886 790 Pennsylvania shares tax 301 230 602 440 Professional fees 414 319 862 776 Director's fees 165 105 318 239 Federal deposit insurance 217 188 435 408 Data processing and telecommunications 1,078 904 1,917 1,824 Automated teller machine and interchange 101 106 365 368 Merger-related expenses - 201 - 297 Amortization of intangibles 516 549 1,026 1,098 Other non-interest expense 980 987 1,872 1,959 TOTAL NON-INTEREST EXPENSE 9,856 9,194 20,947 18,840 INCOME BEFORE INCOME TAX PROVISION 6,935 5,556 12,047 10,287 INCOME TAX PROVISION 1,167 849 1,934 1,544 NET INCOME $ 5,768 $ 4,707 $ 10,113 $ 8,743 EARNINGS PER SHARE - BASIC AND DILUTED $ 1.63 $ 1.32 $ 2.86 $ 2.45 WEIGHTED AVERAGE SHARES OUTSTANDING 3,533,977 3,572,345 3,533,356 3,571,344 At or 3 Months Ended (Unaudited) (Dollars in Thousands, Except Per Share Data) 6/30/20253/31/202512/31/20249/30/20246/30/2024Operating HighlightsNet income $ 5,768 $ 4,345 $ 5,224 $ 5,056 $ 4,707 Net interest income 14,808 13,868 13,396 12,774 12,360 Provision for credit losses 254 110 567 151 29 Non-interest income 2,237 2,445 2,709 2,715 2,419 Non-interest expense 9,856 11,091 9,455 9,367 9,194 Balance Sheet HighlightsTotal assets $ 1,616,215 $ 1,602,336 $ 1,595,958 $ 1,607,322 $ 1,592,300 Loans, net and loans held for sale 1,149,624 1,135,981 1,117,770 1,105,421 1,092,057 Goodwill and other intangibles, net 34,653 35,164 35,656 36,202 36,760 Total depositsNoninterest-bearing $ 272,680 $ 273,783 $ 259,700 $ 269,515 $ 263,419 Savings 194,816 195,748 194,958 192,644 199,626 NOW 422,415 406,330 380,801 364,459 346,000 Money Market 104,677 103,759 108,263 112,319 117,770 Time Deposits 366,475 359,015 348,707 351,532 338,812 Total interest-bearing deposits 1,088,383 1,064,852 1,032,729 1,020,954 1,002,208 Core deposits* 994,588 979,620 943,722 938,937 926,815 Selected RatiosFully tax-equivalent net interest margin 4.04 % 3.83 % 3.63 % 3.48 % 3.43 % Annualized return on average assets 1.44 % 1.10 % 1.30 % 1.26 % 1.20 % Annualized return on average equity 13.33 % 10.33 % 12.30 % 12.34 % 12.28 % Capital Ratios - Journey Bank**Common equity tier I capital ratio 15.35 % 15.13 % 15.06 % 14.59 % 14.06 % Tier 1 capital ratio 15.35 % 15.13 % 15.06 % 14.59 % 14.06 % Total risk-based capital ratio 16.34 % 16.13 % 16.03 % 15.54 % 14.99 % Leverage ratio 9.43 % 9.30 % 9.10 % 8.82 % 8.68 % Asset Quality RatiosNon-performing assets $ 13,844 $ 12,300 $ 10,117 $ 8,575 $ 7,736 Allowance for credit losses - loans 10,167 9,985 9,858 9,415 9,362 Allowance for credit losses to total loans 0.88 % 0.87 % 0.88 % 0.85 % 0.85 % Non-performing assets to total assets 0.86 % 0.77 % 0.63 % 0.53 % 0.49 % Per Share DataEarnings per share $ 1.63 $ 1.23 $ 1.47 $ 1.42 $ 1.32 Dividend declared per share*** 0.95 0.45 0.44 0.44 0.44 Book value 49.87 48.50 47.11 47.35 44.11 Common stock price:Bid $ 47.25 $ 40.25 $ 41.88 $ 33.35 $ 32.10 Ask 49.05 42.00 42.88 34.25 34.75 Weighted average common shares 3,533,977 3,532,727 3,555,920 3,574,043 3,572,345 * 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