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Muncy Columbia Financial Corp

Muncy Columbia Financial Corporation Declares Special One-Time Cash Dividend and Announces First Quarter 2025 Earnings

BLOOMSBURG, Pa.--(BUSINESS WIRE)--Apr. 22, 2025-- Muncy Columbia Financial Corporation (“Corporation”) (OTCQX: CCFN), parent company of Journey Bank (”Bank”), announced a special one-time cash dividend and its unaudited consolidated financial results for the first quarter of 2025.

Special One-Time Cash Dividend

On April 22, 2025, the Corporation’s Board of Directors declared a special one-time cash dividend of $0.50 per share on its common stock, payable May 22, 2025, to shareholders of record as of May 6, 2025.

"We are pleased to recognize and reward our shareholders with this special one-time cash dividend. We reported record earnings in 2024 and remain committed to creating shareholder value," stated Lance O. Diehl, President and CEO. "As a result of the success of our recent strategic merger with Muncy Bank Financial, Inc., we have both the ability and unique opportunity to return more through this special dividend while maintaining capital above well-capitalized levels,” Diehl explained.

Unaudited Financial Information

Net income, as reported under accounting principles generally accepted in the United States of America (“GAAP”), for the first quarter 2025 was $4,345,000, or $1.23 per share, compared to $4,036,000, or $1.13 per share, for the first quarter 2024. Return on average assets and return on average equity were 1.10% and 10.33%, respectively, for the first quarter 2025 as compared to 1.02% and 10.52%, respectively, for the first quarter 2024.

Net interest income of $13,868,000 for the first quarter 2025 was up $1,933,000 from the first quarter 2024 reflecting an increase in total interest and dividend income of $952,000 and a decrease of $981,000 in total interest expense. The fully-tax equivalent net interest margin was 3.83% for the first quarter 2025 as compared to 3.32% for the first quarter 2024.

For the first quarter 2025, a $110,000 provision for credit losses was recorded compared to $90,000 for the first quarter 2024. As of March 31, 2025, the allowance for credit losses to total loans was 0.87% as compared to 0.88% as of December 31, 2024.

Total non-interest income decreased $87,000 to $2,445,000 for the first quarter 2025, compared to the first quarter 2024 amount of $2,532,000. Service charges and fees increased $107,000 due primarily to higher overdraft fee income, and losses on marketable equity securities decreased $83,000 due to market value changes comparing the first quarter 2025 to the first quarter 2024. Other non-interest income decreased $341,000 due to one-time events in the first quarter 2024 including incentives received in conjunction with the launch of a debit card reissuance project as well as a governmental grant recorded in conjunction with the completion of a solar energy project.

Total non-interest expense increased $1,445,000 from $9,646,000 for the first quarter 2024, to $11,091,000 for the first quarter 2025. Salaries and employee benefits expense of $6,320,000 for the first quarter 2025 increased $1,518,000 from $4,802,000 for the first quarter 2024. The Corporation recorded one-time pretax expenses totaling $1,295,000 in conjunction with the retirement of its Executive Chairman during the first quarter 2025. Additionally, health insurance expenses associated with the Corporation’s partially self-funded health insurance plan were $151,000 higher in the first quarter 2025 than the first quarter 2024.

Total consolidated assets amounted to $1,602,336,000 at March 31, 2025, as compared to $1,595,958,000 at December 31, 2024. For the quarter ended March 31, 2025, available-for-sale debt securities decreased $15,789,000 and loans receivable, not held for sale, increased by $18,247,000. Total deposits increased $46,206,000 while short-term borrowings decreased $40,706,000 and long-term borrowings decreased $5,152,000 during the quarter ended March 31, 2025.

The increase in total deposits during the quarter ended March 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 2025 which will assist in optimizing the Bank’s long-term liquidity needs and balance sheet management strategies.

Total non-performing assets amounted to $12,300,000 or 0.77% of total assets at March 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 primarily attributable to an increase in non-accrual loans from $10,047,000 at December 31, 2024 to $12,230,000 at March 31, 2025.

Total stockholders’ equity equated to a book value per share of $48.50 at March 31, 2025 as compared with $47.11 at December 31, 2024. For the first quarter 2025 cash dividends of $0.45 per share were paid to stockholders as compared to $0.44 for the same period of 2024. The Corporation remains well capitalized, with an equity to assets ratio of 10.70% at March 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, 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) March 31,
2025 		December 31,
2024
ASSETS
Cash and due from banks

$

13,781

 

$

11,200

 

Interest-bearing deposits in other banks

 

9,978

 

 

6,180

 

Total cash and cash equivalents

 

23,759

 

 

17,380

 

 
Available-for-sale debt securities, at fair value

 

307,459

 

 

323,248

 

Marketable equity securities, at fair value

 

1,321

 

 

1,355

 

Restricted investment in bank stocks, at cost

 

6,480

 

 

7,095

 

Loans held for sale

 

1,782

 

 

1,691

 

 
Loans receivable

 

1,144,184

 

 

1,125,937

 

Allowance for credit losses

 

(9,985

)

 

(9,858

)

Loans, net

 

1,134,199

 

 

1,116,079

 

 
Premises and equipment, net

 

26,644

 

 

26,484

 

Foreclosed assets held for sale

 

70

 

 

70

 

Accrued interest receivable

 

4,948

 

 

4,850

 

Bank-owned life insurance

 

41,204

 

 

40,953

 

Investment in limited partnerships

 

4,905

 

 

5,092

 

Deferred tax asset, net

 

9,213

 

 

10,012

 

Goodwill

 

25,609

 

 

25,609

 

Other intangible assets, net

 

9,555

 

 

10,047

 

Other assets

 

5,188

 

 

5,993

 

TOTAL ASSETS

$

1,602,336

 

$

1,595,958

 

 
LIABILITIES
Interest-bearing deposits

$

1,064,852

 

$

1,032,729

 

Noninterest-bearing deposits

 

273,783

 

 

259,700

 

Total deposits

 

1,338,635

 

 

1,292,429

 

 
Short-term borrowings

 

27,682

 

 

68,388

 

Long-term borrowings

 

50,384

 

 

55,536

 

Accrued interest payable

 

1,864

 

 

1,857

 

Other liabilities

 

12,371

 

 

11,338

 

TOTAL LIABILITIES

 

1,430,936

 

 

1,429,548

 

 
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; 15,000,000 shares authorized;
issued 3,842,691 and outstanding 3,533,966 at March 31, 2025;
issued 3,841,438 and outstanding 3,532,713 at December 31, 2024

 

4,804

 

 

4,802

 

Additional paid-in capital

 

83,594

 

 

83,543

 

Retained earnings

 

106,023

 

 

103,268

 

Accumulated other comprehensive loss

 

(11,714

)

 

(13,896

)

Treasury stock, at cost; 308,725 shares at March 31, 2025 and December 31, 2024

 

(11,307

)

 

(11,307

)

TOTAL STOCKHOLDERS' EQUITY

 

171,400

 

 

166,410

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,602,336

 

$

1,595,958

 

 
Muncy Columbia Financial Corporation
Consolidated Statements of Income
 
For the Three Months Ended
March 31,
(In Thousands, Except Share and Per Share Data) (Unaudited)

 

2025

 

 

2024

 

INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable

$

18,284

 

$

17,256

 

Tax-exempt

 

398

 

 

353

 

Interest and dividends on investment securities:
Taxable

 

1,097

 

 

1,161

 

Tax-exempt

 

860

 

 

830

 

Dividend and other interest income

 

168

 

 

223

 

Deposits in other banks

 

34

 

 

66

 

TOTAL INTEREST AND DIVIDEND INCOME

 

20,841

 

 

19,889

 

 
INTEREST EXPENSE
Deposits

 

5,801

 

 

4,610

 

Short-term borrowings

 

543

 

 

2,497

 

Long-term borrowings

 

629

 

 

847

 

TOTAL INTEREST EXPENSE

 

6,973

 

 

7,954

 

 
NET INTEREST INCOME

 

13,868

 

 

11,935

 

 
PROVISION FOR CREDIT LOSSES

 

110

 

 

90

 

 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

 

13,758

 

 

11,845

 

 
NON-INTEREST INCOME
Service charges and fees

 

722

 

 

615

 

Interchange fees

 

623

 

 

619

 

Gain on sale of loans

 

83

 

 

76

 

Earnings on bank-owned life insurance

 

231

 

 

227

 

Brokerage

 

233

 

 

224

 

Trust

 

238

 

 

206

 

Losses on marketable equity securities

 

(34

)

 

(117

)

Realized losses on available-for-sale debt securities, net

 

-

 

 

(8

)

Other non-interest income

 

349

 

 

690

 

TOTAL NON-INTEREST INCOME

 

2,445

 

 

2,532

 

 
NON-INTEREST EXPENSE
Salaries and employee benefits

 

6,320

 

 

4,802

 

Occupancy

 

720

 

 

618

 

Furniture and equipment

 

426

 

 

406

 

Pennsylvania shares tax

 

301

 

 

210

 

Professional fees

 

448

 

 

457

 

Director's fees

 

153

 

 

134

 

Federal deposit insurance

 

218

 

 

220

 

Data processing and telecommunications

 

839

 

 

920

 

Automated teller machine and interchange

 

264

 

 

262

 

Merger-related expenses

 

-

 

 

96

 

Amortization of intangibles

 

510

 

 

549

 

Other non-interest expense

 

892

 

 

972

 

TOTAL NON-INTEREST EXPENSE

 

11,091

 

 

9,646

 

 
INCOME BEFORE INCOME TAX PROVISION

 

5,112

 

 

4,731

 

INCOME TAX PROVISION

 

767

 

 

695

 

NET INCOME

$

4,345

 

$

4,036

 

 
EARNINGS PER SHARE - BASIC AND DILUTED

$

1.23

 

$

1.13

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

3,532,727

 

 

3,570,342

 

 
At or 3 Months Ended (Unaudited)
 
(Dollars in Thousands, Except Per Share Data) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024
 
Operating Highlights
 
Net income

$

4,345

 

$

5,224

 

$

5,056

 

$

4,707

 

$

4,036

 

Net interest income

 

13,868

 

 

13,396

 

 

12,774

 

 

12,360

 

 

11,935

 

Provision for credit losses

 

110

 

 

567

 

 

151

 

 

29

 

 

90

 

Non-interest income

 

2,445

 

 

2,709

 

 

2,715

 

 

2,419

 

 

2,532

 

Non-interest expense

 

11,091

 

 

9,455

 

 

9,367

 

 

9,194

 

 

9,646

 

 
Balance Sheet Highlights
 
Total assets

$

1,602,336

 

$

1,595,958

 

$

1,607,322

 

$

1,592,300

 

$

1,573,271

 

Loans, net and loans held for sale

 

1,135,981

 

 

1,117,770

 

 

1,105,421

 

 

1,092,057

 

 

1,072,010

 

Goodwill and other intangibles, net

 

35,164

 

 

35,656

 

 

36,202

 

 

36,760

 

 

36,955

 

Total deposits
Noninterest-bearing

$

273,783

 

$

259,700

 

$

269,515

 

$

263,419

 

$

263,954

 

Savings

 

195,748

 

 

194,958

 

 

192,644

 

 

199,626

 

 

203,002

 

NOW

 

406,330

 

 

380,801

 

 

364,459

 

 

346,000

 

 

298,122

 

Money Market

 

103,759

 

 

108,263

 

 

112,319

 

 

117,770

 

 

112,190

 

Time Deposits

 

359,015

 

 

348,707

 

 

351,532

 

 

338,812

 

 

336,232

 

Total interest-bearing deposits

 

1,064,852

 

 

1,032,729

 

 

1,020,954

 

 

1,002,208

 

 

949,546

 

Core deposits*

 

979,620

 

 

943,722

 

 

938,937

 

 

926,815

 

 

877,268

 

 
Selected Ratios
 
Fully tax-equivalent net interest margin (YTD)

 

3.83

%

 

3.46

%

 

3.40

%

 

3.36

%

 

3.32

%

Annualized return on average assets

 

1.10

%

 

1.30

%

 

1.26

%

 

1.20

%

 

1.02

%

Annualized return on average equity

 

10.33

%

 

12.30

%

 

12.34

%

 

12.28

%

 

10.52

%

 
Capital Ratios - Journey Bank**
 
Common equity tier I capital ratio

 

15.13

%

 

15.06

%

 

14.59

%

 

14.06

%

 

13.95

%

Tier 1 capital ratio

 

15.13

%

 

15.06

%

 

14.59

%

 

14.06

%

 

13.95

%

Total risk-based capital ratio

 

16.13

%

 

16.03

%

 

15.54

%

 

14.99

%

 

14.94

%

Leverage ratio

 

9.30

%

 

9.10

%

 

8.82

%

 

8.68

%

 

8.41

%

 
Asset Quality Ratios
 
Non-performing assets

$

12,300

 

$

10,117

 

$

8,575

 

$

7,736

 

$

7,328

 

Allowance for credit losses - loans

 

9,985

 

 

9,858

 

 

9,415

 

 

9,362

 

 

9,351

 

Allowance for credit losses to total loans

 

0.87

%

 

0.88

%

 

0.85

%

 

0.85

%

 

0.87

%

Non-performing assets to total assets

 

0.77

%

 

0.63

%

 

0.53

%

 

0.49

%

 

0.47

%

 
Per Share Data
 
Earnings per share

$

1.23

 

$

1.47

 

$

1.42

 

$

1.32

 

$

1.13

 

Dividend declared per share

 

0.45

 

 

0.44

 

 

0.44

 

 

0.44

 

 

0.44

 

Book value

 

48.50

 

 

47.11

 

 

47.35

 

 

44.11

 

 

43.35

 

Common stock price:
Bid

$

40.25

 

$

41.88

 

$

33.35

 

$

32.10

 

$

30.50

 

Ask

 

42.00

 

 

42.88

 

 

34.25

 

 

34.75

 

 

32.00

 

Weighted average common shares

 

3,532,727

 

 

3,555,920

 

 

3,574,043

 

 

3,572,345

 

 

3,570,342

 

 
* Core deposits are defined as total deposits less time deposits
** Capital ratios for the most recent period are estimated

 

Investor Relations
570.784.4400
investorrelations@journeybank.com

Source: Muncy Columbia Financial Corporation