Muncy Columbia Financial Corporation Reports Fourth Quarter 2024 Earnings

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.

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