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

BLOOMSBURG, Pa.--(BUSINESS WIRE)-- 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

 

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Investor Relations

570.784.4400

investorrelations@journeybank.com

Source: Muncy Columbia Financial Corporation