Consolidated Financial Statements (Form 8-K)

MUNCY COLUMBIA FINANCIAL CORPORATION 8-K

Press Release - For Immediate Release

January 22, 2025

Muncy Columbia Financial Corporation Reports Fourth Quarter 2024 Earnings

Bloomsburg, PA - Muncy Columbia Financial Corporation ("Corporation") (OTCQX: CCFN), parent company of Journey Bank ("Bank"), has released its unaudited consolidated financial statements for the fourth quarter of 2024.

Unaudited Financial Information

Net income, as reported under accounting principles generally accepted in the United States of America ("GAAP"), for the quarter ended December 31, 2024 was $5,224,000, or $1.47 per share compared to a net loss of $1,186,000, or ($0.41) per share for the same period in 2023. Net income, as reported under GAAP, for the year ended December 31, 2024 was $19,023,000, or $5.33 per share compared to $3,387,000, or $1.49 per share for the same period in 2023. Net income for the quarter and year-ended December 31, 2023 was significantly impacted by merger related expenses related to the Corporation's merger with Muncy Bank Financial, Inc. on November 11, 2023.

Return on average assets and return on average equity were 1.30% and 12.30% for the quarter ended December 31, 2024, as compared to (0.35%) and (3.95%) for the same period of 2023. The fully-tax equivalent net interest margin was 3.46% and 2.34% for the years ended December 31, 2024 and 2023, respectively.

Total consolidated assets amounted to $1,595,958,000 at December 31, 2024, as compared to $1,607,322,000 at September 30, 2024 and $1,639,779,000 at December 31, 2023. For the quarter ended December 31, 2024, cash and cash equivalents decreased $10,689,000, available-for-sale debt securities decreased $12,287,000 and loans receivable, not held for sale, increased by $13,293,000. Total deposits increased $1,960,000 while short-term borrowings decreased $4,637,000 and long-term borrowings decreased $4,929,000 during the quarter ended December 31, 2024.

The increase in total deposits during the quarter and year ended December 31, 2024 was primarily as a result of a strategic initiative to reposition customer repurchase agreements, which are classified as short-term borrowings, into core deposit accounts. The Bank anticipates a continued migration of customer repurchase accounts from short-term borrowings to deposits moving into 2025. The execution of this initiative will assist in optimizing the Bank's long-term liquidity needs and balance sheet management strategies.

Total non-performing assets amounted to $10,117,000 or 0.63% of total assets at December 31, 2024, as compared to $8,575,000 or 0.53% of total assets at September 30, 2024. The increase in non-performing assets was primarily attributable to an increase in non-accrual loans from $8,357,000 at September 30, 2024 to $10,047,000 at December 31, 2024. Non-accrual residential real estate loans increased by $1,285,000 from September 30 2024 to December 31, 2024.

The Corporation invests in various forms of agency debt including mortgage-backed securities and callable agency debt. The fair value of these securities is influenced by market interest rates, prepayment speeds on mortgage securities, bid to offer spreads in the market place and credit premiums for various types of agency debt. These factors change continuously and therefore the fair market value of these securities may be higher or lower than the Corporation's carrying value at any measurement date. The temporary impact on investment securities will also affect stockholders' equity as these fluctuations are recorded through accumulated other comprehensive income (loss). As of December 31, 2024, the temporary impact of these unrealized losses, net of tax, on stockholders' equity amounted to a reduction of $13,896,000, compared to a reduction of $15,036,000 as of December 31, 2023. The Corporation does not consider its debt securities to be credit impaired since it has both the intent and ability to hold the securities until a recovery of its amortized cost basis, which may be maturity, and the decline in fair value is deemed to be as a result of changes in interest rates and not credit factors.

Total stockholders' equity equated to a book value per share of $47.11 at December 31, 2024 as compared with $43.08 at December 31, 2023. For the year ended December 31, 2024 cash dividends of $1.76 per share were paid to stockholders as compared to $1.71 for the same period of 2023. The Corporation remains well capitalized, with an equity to assets ratio of 10.43% at December 31, 2024 as compared to 9.38% at December 31, 2023.

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: costs or difficulties related to integration following the mergers of Muncy Bank Financial, Inc. with and into CCFNB Bancorp, Inc., forming Muncy Columbia Financial Corporation, and of The Muncy Bank and Trust Company with and into First Columbia Bank & Trust Company, forming Journey Bank; the risk that the anticipated benefits, cost savings and other savings from the mergers may not be fully realized or may take longer than expected to realize; potential impairment to the goodwill recorded in connection with the mergers; 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

		December 31,
(In Thousands, Except Share and Per Share Data) (Unaudited)		2024		2023
ASSETS
Cash and due from banks		$	11,200			$	14,614
Interest-bearing deposits in other banks			6,180				3,763
Total cash and cash equivalents			17,380				18,377
Interest-bearing time deposits			-				979
Available-for-sale debt securities, at fair value			323,248				413,302
Marketable equity securities, at fair value			1,355				1,295
Restricted investment in bank stocks, at cost			7,095				10,394
Loans held for sale			1,691				366
Loans receivable			1,125,937				1,068,429
Allowance for credit losses			(9,858	)			(9,302	)
Loans, net			1,116,079				1,059,127
Premises and equipment, net			26,484				27,569
Foreclosed assets held for sale			70				170
Accrued interest receivable			4,850				5,362
Bank-owned life insurance			40,953				40,209
Investment in limited partnerships			5,092				5,828
Deferred tax asset, net			10,012				12,634
Goodwill			25,609				25,609
Other intangible assets, net			10,047				11,895
Other assets			5,993				6,663
TOTAL ASSETS		$	1,595,958			$	1,639,779
LIABILITIES
Interest-bearing deposits		$	1,032,729			$	884,654
Noninterest-bearing deposits			259,700				266,015
Total deposits			1,292,429				1,150,669
Short-term borrowings			68,388				252,532
Long-term borrowings			55,536				70,448
Accrued interest payable			1,857				2,358
Other liabilities			11,338				9,947
TOTAL LIABILITIES			1,429,548				1,485,954
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; 15,000,000 shares authorized;
issued 3,841,438 and outstanding 3,532,713 at December 31, 2024;
issued 3,834,976 and outstanding 3,570,276 at December 31, 2023;			4,802				4,794
Additional paid-in capital			83,543				83,343
Retained earnings			103,268				90,514
Accumulated other comprehensive loss			(13,896	)			(15,036	)
Treasury stock, at cost; 308,725 shares at December 31, 2024 and
264,700 shares at December 31, 2023			(11,307	)			(9,790	)
TOTAL STOCKHOLDERS' EQUITY			166,410				153,825
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,595,958			$	1,639,779

Muncy Columbia Financial Corporation

Consolidated Statements of Income

		For the Three Months Ended		For the Years Ended
		December 31,		December 31,
(In Thousands, Except Share and Per Share Data) (Unaudited)		2024		2023		2024		2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable		$	18,282			$	12,024			$	71,513			$	30,885
Tax-exempt			412				295				1,518				969
Interest and dividends on investment securities:
Taxable			1,081				1,389				4,256				5,030
Tax-exempt			853				519				3,361				917
Dividend and other interest income			190				96				807				318
Federal funds sold			-				-				-				1
Deposits in other banks			50				58				288				227
TOTAL INTEREST AND DIVIDEND INCOME			20,868				14,381				81,743				38,347
INTEREST EXPENSE
Deposits			6,049				2,665				22,402				4,964
Short-term borrowings			724				2,871				5,741				9,119
Long-term borrowings			699				588				3,135				1,002
TOTAL INTEREST EXPENSE			7,472				6,124				31,278				15,085
NET INTEREST INCOME			13,396				8,257				50,465				23,262
Provision for credit losses - loans			559				3,148				847				2,554
Provision (credit) for credit losses - off balance sheet credit exposures			8				(34	)			(10	)			(33	)
TOTAL PROVISION FOR CREDIT LOSSES			567				3,114				837				2,521
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			12,829				5,143				49,628				20,741
NON-INTEREST INCOME
Service charges and fees			723				578				2,732				2,094
Gain on sale of loans			169				83				413				276
Earnings on bank-owned life insurance			236				168				928				503
Brokerage			198				211				807				636
Trust			290				272				943				885
Gains (losses) on marketable equity securities			52				146				60				(119	)
Realized losses on available-for-sale debt securities, net			(77	)			-				(85	)			-
Interchange fees			670				545				2,640				1,839
Other non-interest income			448				264				1,937				1,007
TOTAL NON-INTEREST INCOME			2,709				2,267				10,375				7,121
NON-INTEREST EXPENSE
Salaries and employee benefits			4,881				4,311				19,027				11,618
Occupancy			616				422				2,459				1,391
Furniture and equipment			427				320				1,665				1,192
Pennsylvania shares tax			250				131				941				365
Professional fees			387				442				1,522				1,280
Director's fees			176				99				618				326
Federal deposit insurance			225				151				820				478
Data processing and telecommunications			923				495				3,595				1,559
Automated teller machine and interchange			196				119				671				340
Merger-related expenses			(99	)			1,822				241				3,028
Amortization of intangibles			546				183				2,202				183
Other non-interest expense			927				668				3,901				2,350
TOTAL NON-INTEREST EXPENSE			9,455				9,163				37,662				24,110
INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT)			6,083				(1,753	)			22,341				3,752
INCOME TAX PROVISION (BENEFIT)			859				(567	)			3,318				365
NET INCOME (LOSS)		$	5,224			$	(1,186	)		$	19,023			$	3,387
EARNINGS PER SHARE - BASIC AND DILUTED		$	1.47			$	(0.41	)		$	5.33			$	1.49
WEIGHTED AVERAGE SHARES OUTSTANDING			3,555,920				2,873,775				3,568,145				2,279,808

		At or 3 Months Ended (Unaudited)
(Dollars in Thousands, Except Per Share Data)		12/31/2024		9/30/2024		6/30/2024		3/31/2024		12/31/2023
Operating Highlights
Net income (loss)		$	5,224			$	5,056			$	4,707			$	4,036			$	(1,186	)
Net interest income			13,396				12,774				12,360				11,935				8,257
Provision for credit losses			567				151				29				90				3,114
Non-interest income			2,709				2,715				2,419				2,532				2,267
Non-interest expense			9,455				9,367				9,194				9,646				9,163
Balance Sheet Highlights
Total assets		$	1,595,958			$	1,607,322			$	1,592,300			$	1,573,271			$	1,639,779
Loans, net and loans held for sale			1,117,770				1,105,421				1,092,057				1,072,010				1,059,493
Goodwill and other intangibles, net			35,656				36,202				36,760				36,955				37,504
Total deposits
Noninterest-bearing		$	259,700			$	269,515			$	263,419			$	263,954			$	266,015
Savings			194,958				192,644				199,626				203,002				204,968
NOW			380,801				364,459				346,000				298,122				251,953
Money Market			108,263				112,319				117,770				112,190				103,602
Time Deposits			348,707				351,532				338,812				336,232				324,131
Total interest-bearing deposits			1,032,729				1,020,954				1,002,208				949,546				884,654
Core deposits*			943,722				938,937				926,815				877,268				826,538
Selected Ratios
Fully tax-equivalent net interest margin (YTD)			3.46	%			3.40	%			3.36	%			3.32	%			2.34	%
Annualized return on average assets			1.30	%			1.26	%			1.20	%			1.02	%			-0.35	%
Annualized return on average equity			12.30	%			12.34	%			12.28	%			10.52	%			-3.95	%
Capital Ratios - Journey Bank**
Common equity tier I capital ratio			15.13	%			14.59	%			14.06	%			13.95	%			13.52	%
Tier 1 capital ratio			15.13	%			14.59	%			14.06	%			13.95	%			13.52	%
Total risk-based capital ratio			16.11	%			15.54	%			14.99	%			14.94	%			14.49	%
Leverage ratio			9.09	%			8.82	%			8.68	%			8.40	%			8.03	%
Asset Quality Ratios
Non-performing assets		$	10,117			$	8,575			$	7,736			$	7,328			$	4,475
Allowance for credit losses - loans			9,858				9,415				9,362				9,351				9,302
Allowance for credit losses to total loans			0.88	%			0.85	%			0.85	%			0.87	%			0.87	%
Allowance for credit losses to
non-performing assets			97.44	%			109.80	%			121.02	%			127.61	%			207.87	%
Non-performing assets to total assets			0.63	%			0.53	%			0.49	%			0.47	%			0.27	%
Per Share Data
Earnings (loss) per share		$	1.47			$	1.42			$	1.32			$	1.13			$	(0.41	)
Dividend declared per share			0.44				0.44				0.44				0.44				0.43
Book value			47.11				47.35				44.11				43.35				43.08
Common stock price:
Bid		$	41.88			$	33.35			$	32.10			$	30.50			$	34.50
Ask			42.88				34.25				34.75				32.00				37.17
Weighted average common shares			3,555,920				3,574,043				3,572,345				3,570,342				2,873,775

*	Core deposits are defined as total deposits less time deposits

**	Capital ratios for the most recent period are estimated

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