Muncy Columbia Financial Corporation Reports Third Quarter 2024 Earnings

Rhea-AI Summary

Muncy Columbia Financial (OTCQX: CCFN), parent of Journey Bank, reported its Q3 2024 earnings. Net income for Q3 2024 was $5,056,000 ($1.42 per share), up from $1,171,000 ($0.56 per share) in Q3 2023. For the nine months ended September 30, 2024, net income was $13,799,000 ($3.86 per share), compared to $4,573,000 ($2.20 per share) in 2023.

Key financial metrics for Q3 2024 include:

• Return on average assets: 1.26%
• Return on average equity: 12.34%
• Fully-tax equivalent net interest margin (9 months): 3.40%
• Total consolidated assets: $1,607,322,000
• Non-performing assets: 0.53% of total assets
• Book value per share: $47.35
• Equity to assets ratio: 10.53%

The company reported increases in cash, loans receivable, and total deposits, while short-term borrowings decreased.

Positive

• Net income increased significantly to $5,056,000 in Q3 2024 from $1,171,000 in Q3 2023
• Earnings per share rose to $1.42 in Q3 2024 from $0.56 in Q3 2023
• Return on average assets improved to 1.26% from 0.63% year-over-year
• Return on average equity increased to 12.34% from 6.78% year-over-year
• Net interest margin improved to 3.40% from 2.29% year-over-year
• Total deposits increased by $24,842,000 during Q3 2024
• Book value per share increased to $47.35 from $43.08 at the end of 2023
• Equity to assets ratio improved to 10.53% from 9.38% at the end of 2023

Negative

• Non-performing assets increased to 0.53% of total assets from 0.49% in the previous quarter
• Unrealized losses on investment securities reduced stockholders' equity by $8,809,000
• Total consolidated assets decreased to $1,607,322,000 from $1,639,779,000 at the end of 2023

BLOOMSBURG, Pa.--(BUSINESS WIRE)-- Muncy Columbia Financial Corporation (“Corporation”) (OTCQX: CCFN), parent company of Journey Bank (”Bank”), has released its unaudited consolidated financial statements for the third 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 September 30, 2024 was $5,056,000, or $1.42 per share compared to net income of $1,171,000, or $0.56 per share for the same period in 2023. Net income, as reported under GAAP, for the nine months ended September 30, 2024 was $13,799,000, or $3.86 per share compared to $4,573,000, or $2.20 per share for the same period in 2023. Return on average assets and return on average equity were 1.26% and 12.34% for the quarter ended September 30, 2024, as compared to 0.63% and 6.78% for the same period of 2023.

The fully-tax equivalent net interest margin was 3.40% and 2.29% for the nine-month periods ended September 30, 2024 and 2023, respectively.

Total consolidated assets amounted to $1,607,322,000 at September 30, 2024, as compared to $1,592,300,000 at June 30, 2024 and $1,639,779,000 at December 31, 2023. For the quarter ended September 30, 2024, cash and cash equivalents increased $6,593,000 and loans receivable, not held for sale, increased by $11,979,000. Total deposits increased $24,842,000 while short term borrowings decreased $16,261,000 during the quarter ended September 30, 2024.

The increase in total deposits during the quarter and nine months ended September 30, 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 throughout the remainder of 2024. 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 $8,575,000 or 0.53% of total assets at September 30, 2024, as compared to $7,736,000 or 0.49% of total assets at June 30, 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 September 30, 2024, the temporary impact of these unrealized losses on the stockholders’ equity amounted to a reduction of $8,809,000. 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 $47.35 at September 30, 2024 as compared with $43.08 at December 31, 2023. For the nine months ended September 30, 2024 cash dividends of $1.32 per share were paid to stockholders as compared to $1.28 for the same period of 2023. The Corporation remains well capitalized, with an equity to assets ratio of 10.53% at September 30, 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
(In Thousands, Except Share and Per Share Data) (Unaudited)		September 30, 2024				December 31, 2023
ASSETS
Cash and due from banks		$	21,318			$	14,614
Interest-bearing deposits in other banks			6,751				3,763
Total cash and cash equivalents			28,069				18,377
Interest-bearing time deposits			249				979
Available-for-sale debt securities, at fair value			335,535				413,302
Marketable equity securities, at fair value			1,303				1,295
Restricted investment in bank stocks, at cost			7,529				10,394
Loans held for sale			2,192				366
Loans receivable			1,112,644				1,068,429
Allowance for credit losses			(9,415	)			(9,302	)
Loans, net			1,103,229				1,059,127
Premises and equipment, net			26,735				27,569
Foreclosed assets held for sale			70				170
Accrued interest receivable			4,840				5,362
Bank-owned life insurance			40,945				40,209
Investment in limited partnerships			5,278				5,828
Deferred tax asset, net			8,919				12,634
Goodwill			25,609				25,609
Other intangible assets, net			10,593				11,895
Other assets			6,227				6,663
TOTAL ASSETS		$	1,607,322			$	1,639,779
LIABILITIES
Interest-bearing deposits		$	1,020,954			$	884,654
Noninterest-bearing deposits			269,515				266,015
Total deposits			1,290,469				1,150,669
Short-term borrowings			73,025				252,532
Long-term borrowings			60,465				70,448
Accrued interest payable			2,099				2,358
Other liabilities			11,961				9,947
TOTAL LIABILITIES			1,438,019				1,485,954
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; 15,000,000 shares authorized;
issued 3,840,227 and outstanding 3,575,527 at September 30, 2024;
issued 3,834,976 and outstanding 3,570,276 at December 31, 2023;			4,800				4,794
Additional paid-in capital			83,504				83,343
Retained earnings			99,598				90,514
Accumulated other comprehensive loss			(8,809	)			(15,036	)
Treasury stock, at cost; 264,700 shares at September 30, 2024 and December 31, 2023			(9,790	)			(9,790	)
TOTAL STOCKHOLDERS' EQUITY			169,303				153,825
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,607,322			$	1,639,779

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)		2024			2023				2024				2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable		$	18,234		$	6,629			$	53,231			$	18,861
Tax-exempt			421			243				1,106				674
Interest and dividends on investment securities:
Taxable			994			1,211				3,175				3,641
Tax-exempt			842			135				2,508				398
Dividend and other interest income			190			86				617				222
Federal funds sold			-			-				-				1
Deposits in other banks			110			84				238				169
TOTAL INTEREST AND DIVIDEND INCOME			20,791			8,388				60,875				23,966
INTEREST EXPENSE
Deposits			6,133			892				16,353				2,299
Short-term borrowings			1,093			2,337				5,017				6,248
Long-term borrowings			791			268				2,436				414
TOTAL INTEREST EXPENSE			8,017			3,497				23,806				8,961
NET INTEREST INCOME			12,774			4,891				37,069				15,005
Provision (credit) for credit losses - loans			151			(172	)			288				(594	)
Provision (credit) for credit losses - off balance sheet credit exposures			-			4				(18	)			1
TOTAL PROVISION (CREDIT) FOR CREDIT LOSSES			151			(168	)			270				(593	)
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR CREDIT LOSSES			12,623			5,059				36,799				15,598
NON-INTEREST INCOME
Service charges and fees			727			477				2,009				1,516
Gain on sale of loans			75			68				244				193
Earnings on bank-owned life insurance			236			113				692				335
Brokerage			193			146				609				425
Trust			243			195				653				613
Gains (losses) on marketable equity securities			163			(118	)			8				(265	)
Realized losses on available-for-sale debt securities, net			-			-				(8	)			-
Interchange fees			664			428				1,970				1,294
Other non-interest income			414			213				1,489				743
TOTAL NON-INTEREST INCOME			2,715			1,522				7,666				4,854
NON-INTEREST EXPENSE
Salaries and employee benefits			4,704			2,275				14,146				7,307
Occupancy			644			326				1,843				969
Furniture and equipment			448			305				1,238				872
Pennsylvania shares tax			251			(58	)			691				234
Professional fees			359			316				1,135				838
Director's fees			103			72				342				227
Federal deposit insurance			187			110				595				327
Data processing and telecommunications			848			361				2,672				1,064
Automated teller machine and interchange			107			111				475				221
Merger-related expenses			43			757				340				1,206
Amortization of intangibles			558			-				1,656				-
Other non-interest expense			1,115			698				3,074				1,682
TOTAL NON-INTEREST EXPENSE			9,367			5,273				28,207				14,947
INCOME BEFORE INCOME TAX PROVISION			5,971			1,308				16,258				5,505
INCOME TAX PROVISION			915			137				2,459				932
NET INCOME		$	5,056		$	1,171			$	13,799			$	4,573
EARNINGS PER SHARE - BASIC AND DILUTED		$	1.42		$	0.56			$	3.86			$	2.20
WEIGHTED AVERAGE SHARES OUTSTANDING			3,574,043			2,080,109				3,572,250				2,079,635

							At or 3 Months Ended (Unaudited)
(Dollars in Thousands, Except Per Share Data)							9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023
Operating Highlights
Net income (loss)							$	5,056			$	4,707			$	4,036			$	(1,186	)		$	1,171
Net interest income								12,774				12,360				11,935				8,257				4,891
Provision (credit) for credit losses								151				29				90				3,114				(168	)
Non-interest income								2,715				2,419				2,532				2,267				1,522
Non-interest expense								9,367				9,194				9,646				9,163				5,273
Balance Sheet Highlights
Total assets							$	1,607,322			$	1,592,300			$	1,573,271			$	1,639,779			$	957,580
Loans, net and loans held for sale								1,105,421				1,092,057				1,072,010				1,059,493				556,862
Goodwill and other intangibles, net								36,202				36,760				36,955				37,504				7,937
Total deposits
Noninterest-bearing							$	269,515			$	263,419			$	263,954			$	266,015			$	165,888
Savings								192,644				199,626				203,002				204,968				155,750
NOW								364,459				346,000				298,122				251,953				146,944
Money Market								112,319				117,770				112,190				103,602				41,521
Time Deposits								351,532				338,812				336,232				324,131				130,472
Total interest-bearing deposits								1,020,954				1,002,208				949,546				884,654				474,687
Core deposits*								938,937				926,815				877,268				826,538				510,103
Selected Ratios
Fully tax-equivalent net interest margin (YTD)								3.40	%			3.36	%			3.32	%			2.34	%			2.29	%
Annualized return on average assets								1.26	%			1.20	%			1.02	%			-0.35	%			0.63	%
Annualized return on average equity								12.34	%			12.28	%			10.52	%			-3.95	%			6.78	%
Capital Ratios - Journey Bank**
Common equity tier I capital ratio								14.59	%			14.06	%			13.95	%			13.52	%			18.80	%
Tier 1 capital ratio								14.59	%			14.06	%			13.95	%			13.52	%			18.80	%
Total risk-based capital ratio								15.54	%			14.99	%			14.94	%			14.49	%			19.91	%
Leverage ratio								8.82	%			8.68	%			8.40	%			8.03	%			10.58	%
Asset Quality Ratios
Non-performing assets							$	8,575			$	7,736			$	7,328			$	4,475			$	2,659
Allowance for credit losses - loans								9,415				9,362				9,351				9,302				6,094
Allowance for credit losses to total loans								0.85	%			0.85	%			0.87	%			0.87	%			1.09	%
Allowance for credit losses to
non-performing assets								109.80	%			121.02	%			127.61	%			207.87	%			244.81	%
Non-performing assets to total assets								0.53	%			0.49	%			0.47	%			0.27	%			0.28	%
Per Share Data
Earnings (loss) per share							$	1.42			$	1.32			$	1.13			$	(0.41	)		$	0.56
Dividend declared per share								0.44				0.44				0.44				0.43				0.43
Book value								47.35				44.11				43.35				43.08				42.50
Common stock price:
Bid							$	33.35			$	32.10			$	30.50			$	34.50			$	34.59
Ask								34.25				34.75				32.00				37.17				35.00
Weighted average common shares								3,574,043				3,572,345				3,570,342				2,873,775				2,080,109
* 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

FAQ

What was Muncy Columbia Financial 's (CCFN) net income for Q3 2024?

Muncy Columbia Financial (CCFN) reported a net income of $5,056,000 for Q3 2024.

How did CCFN's earnings per share (EPS) change in Q3 2024 compared to Q3 2023?

CCFN's earnings per share increased to $1.42 in Q3 2024 from $0.56 in Q3 2023.

What was CCFN's return on average equity for Q3 2024?

CCFN's return on average equity for Q3 2024 was 12.34%.

How did CCFN's total deposits change during Q3 2024?

CCFN's total deposits increased by $24,842,000 during Q3 2024.

What was CCFN's book value per share as of September 30, 2024?

CCFN's book value per share was $47.35 as of September 30, 2024.