Muncy Columbia Financial Corporation Announces Third Quarter 2025 Earnings

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1:29 PM on Friday, October 17

The Associated Press

BLOOMSBURG, Pa.--(BUSINESS WIRE)--Oct 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 Corporation
Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Data) (Unaudited)	September 30, 2025		December 31, 2024
ASSETS
Cash 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

LIABILITIES
Interest-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' EQUITY
Common 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 Corporation
Consolidated Statements of Income

	For the Three Months Ended		For the Nine Months Ended
	September 30,		September 30,
(In Thousands, Except Share and Per Share Data) (Unaudited)		2025			2024		2025			2024
INTEREST AND DIVIDEND INCOME
Interest 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 EXPENSE
Deposits		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 INCOME
Service 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 EXPENSE
Salaries 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)		9/30/2025	6/30/2025		3/31/2025		12/31/2024		9/30/2024

Operating Highlights

	Net 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 Highlights

	Total 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 deposits
	Noninterest-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 Ratios

	Fully 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 Ratios

	Non-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 Data

	Earnings 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