Muncy Columbia Financial Corporation Announces First Quarter 2026 Earnings

BLOOMSBURG, Pa.--(BUSINESS WIRE)--Muncy Columbia Financial Corporation (“Corporation”) (OTCQX: CCFN), parent company of Journey Bank (“Bank”), has released its unaudited consolidated financial results for the first quarter of 2026.

Unaudited Financial Information

Net income, as reported under accounting principles generally accepted in the United States of America (“GAAP”), for the first quarter 2026 was $7,156,000, or $2.02 per share, compared to $4,345,000, or $1.23 per share, for the first quarter 2025. Return on average assets and return on average equity were 1.72% and 14.83%, respectively, for the first quarter 2026 as compared to 1.10% and 10.33%, respectively, for the first quarter 2025.

Net interest income of $16,443,000 for the first quarter 2026 increased $2,575,000 from the first quarter 2025 reflecting an increase in total interest and dividend income of $2,060,000 and a decrease of $515,000 in total interest expense. The fully-tax equivalent net interest margin was 4.33% for the first quarter 2026 as compared to 3.83% for the first quarter 2025.

For the first quarter 2026, a $69,000 provision for credit losses was recorded compared to a $110,000 provision for the first quarter 2025. As of March 31, 2026, the allowance for credit losses to total loans was 0.84% compared to 0.85% as of December 31, 2025.

Total non-interest income increased $45,000 to $2,490,000 for the first quarter 2026, compared to the first quarter 2025 amount of $2,445,000. For the first quarter 2026, a $637,000 loss on sale of loans was recorded, compared to a gain on sale of loans of $83,000 for the first quarter 2025. On January 28, 2026, the Bank entered into an Asset Purchase and Interim Servicing Agreement pursuant to which the Bank agreed to sell a portfolio of 82 individual delinquent, nonperforming or reperforming 1-4 family residential mortgage loans. The purchase price was approximately $9.1 million and was paid in cash. The outstanding principal balance of the loans was approximately $9.8 million. The resulting pretax loss of $714,000 was recognized during the first quarter 2026. This loss was partially offset by ongoing gains on sale of loans of $77,000 recognized during the first quarter 2026. Other significant variances in total non-interest income included an increase in gains (losses) on marketable equity securities of $113,000 due to market value changes comparing the first quarter 2026 to the first quarter 2025 and an increase in other non-interest income of $580,000 due primarily to a sales tax refund received from the Commonwealth of Pennsylvania of $454,000 during the first quarter 2026 resulting from a state sales and use tax review engagement.

Total non-interest expense decreased $894,000 from $11,091,000 for the first quarter 2025, to $10,197,000 for the first quarter 2026. Salaries and employee benefits expense of $5,333,000 for the first quarter 2026 decreased $987,000 from $6,320,000 for the first quarter 2025. 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. This decrease was partially offset by health insurance expenses associated with the Corporation’s partially self-funded health insurance plan which were $165,000 higher in the first quarter 2026 than the first quarter 2025 along with ongoing salary and wage increases for employees. Other significant variances in total non-interest expense included an increase in professional fees of $196,000 due primarily to fees paid in conjunction with the sales and use tax review engagement noted above and a decrease in automated teller machine and interchange expenses of $102,000 due primarily to lower automated teller machine processing expenses comparing the first quarter 2026 to the first quarter 2025.

Total assets amounted to $1,717,328,000 at March 31, 2026, as compared to $1,673,199,000 at December 31, 2025. For the quarter ended March 31, 2026, cash and cash equivalents increased $11,897,000, available-for-sale debt securities increased $27,948,000 and loans receivable held for investment increased by $3,938,000. Total liabilities amounted to $1,525,270,000 at March 31, 2026, as compared to $1,480,658,000 at December 31, 2025. Total deposits increased $40,816,000 during the quarter ended March 31, 2026, representing strong organic deposit growth. Dividends payable at March 31, 2026, reflect the Corporation’s special one-time cash dividend of $1.00 per share which was declared on February 18, 2026, and is payable on April 23, 2026, to shareholders of record as of April 8, 2026.

Total non-performing assets amounted to $9,360,000 or 0.55% of total assets at March 31, 2026, as compared to $11,978,000 or 0.72% of total assets at December 31, 2025. The decrease in non-performing assets was primarily attributable to a decrease in non-accrual loans from $11,523,000 at December 31, 2025, to $9,095,000 at March 31, 2026. The decrease in non-accrual loans during the first quarter 2026 was largely driven by the loan sale noted above.

Total stockholders’ equity equated to a book value per share of $54.29 at March 31, 2026, as compared with $54.44 at December 31, 2025. For the first quarter 2026 total cash dividends of $1.46 per share were declared, which includes the impact of a special one-time cash dividend of $1.00 per share, as compared to $0.45 for the same period of 2025. The Corporation remains well capitalized, with an equity to assets ratio of 11.18% at March 31, 2026, as compared to 11.51% at December 31, 2025.

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, Luzerne, 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, 2026			December 31, 2025
ASSETS
Cash and due from banks	$	13,529		$	12,828
Interest-bearing deposits in other banks		46,908			35,712
Total cash and cash equivalents		60,437			48,540
Available-for-sale debt securities, at fair value		355,193			327,245
Marketable equity securities, at fair value		1,490			1,411
Restricted investment in bank stocks, at cost		5,319			5,412
Loans held for sale		966			847
Loans receivable		1,181,519			1,177,581
Allowance for credit losses		(9,968	)		(9,959	)
Loans, net		1,171,551			1,167,622
Premises and equipment, net		25,991			26,263
Foreclosed assets held for sale		265			320
Accrued interest receivable		5,331			5,063
Bank-owned life insurance		41,992			41,740
Investment in limited partnerships		4,159			4,346
Deferred tax asset, net		6,328			5,992
Goodwill		25,609			25,609
Other intangible assets, net		7,588			8,042
Other assets		5,109			4,747
TOTAL ASSETS	$	1,717,328		$	1,673,199
LIABILITIES
Interest-bearing deposits	$	1,170,358		$	1,135,740
Noninterest-bearing deposits		283,210			277,012
Total deposits		1,453,568			1,412,752
Short-term borrowings		10,654			12,455
Long-term borrowings		40,649			40,584
Dividends payable		3,537			-
Accrued interest payable		1,719			1,644
Other liabilities		15,143			13,223
TOTAL LIABILITIES		1,525,270			1,480,658
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; 15,000,000 shares authorized;
issued 3,846,134 and outstanding 3,537,409 at March 31, 2026;
issued 3,845,479 and outstanding 3,536,754 at December 31, 2025		4,808			4,807
Additional paid-in capital		83,756			83,720
Retained earnings		121,355			119,364
Accumulated other comprehensive loss		(6,554	)		(4,043	)
Treasury stock, at cost; 308,725 shares at March 31, 2026 and December 31, 2025		(11,307	)		(11,307	)
TOTAL STOCKHOLDERS' EQUITY		192,058			192,541
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,717,328		$	1,673,199

Muncy Columbia Financial Corporation
Consolidated Statements of Income
	For the Three Months Ended
	March 31,
(In Thousands, Except Share and Per Share Data) (Unaudited)		2026			2025
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable	$	19,345		$	18,284
Tax-exempt		413			398
Interest and dividends on investment securities:
Taxable		1,833			1,097
Tax-exempt		870			860
Dividend and other interest income		136			168
Deposits in other banks		304			34
TOTAL INTEREST AND DIVIDEND INCOME		22,901			20,841
INTEREST EXPENSE
Deposits		5,893			5,801
Short-term borrowings		95			543
Long-term borrowings		470			629
TOTAL INTEREST EXPENSE		6,458			6,973
NET INTEREST INCOME		16,443			13,868
PROVISION FOR CREDIT LOSSES		69			110
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		16,374			13,758
NON-INTEREST INCOME
Service charges and fees		753			722
Interchange fees		617			623
(Loss) gain on sale of loans		(637	)		83
Earnings on bank-owned life insurance		232			231
Brokerage		238			233
Trust		279			238
Gains (losses) on marketable equity securities		79			(34	)
Other non-interest income		929			349
TOTAL NON-INTEREST INCOME		2,490			2,445
NON-INTEREST EXPENSE
Salaries and employee benefits		5,333			6,320
Occupancy		734			720
Furniture and equipment		379			426
Pennsylvania shares tax		375			301
Professional fees		644			448
Director's fees		167			153
Federal deposit insurance		195			218
Data processing and telecommunications		879			839
Automated teller machine and interchange		162			264
Amortization of intangibles		454			510
Other non-interest expense		875			892
TOTAL NON-INTEREST EXPENSE		10,197			11,091
INCOME BEFORE INCOME TAX PROVISION		8,667			5,112
INCOME TAX PROVISION		1,511			767
NET INCOME	$	7,156		$	4,345
EARNINGS PER SHARE - BASIC AND DILUTED	$	2.02		$	1.23
WEIGHTED AVERAGE SHARES OUTSTANDING		3,536,761			3,532,727

		At or Three Months Ended (Unaudited)
(Dollars in Thousands, Except Per Share Data)		3/31/2026			12/31/2025			9/30/2025			6/30/2025			3/31/2025
Operating Highlights
	Net income	$	7,156		$	7,393		$	6,719		$	5,768		$	4,345
	Net interest income		16,443			16,272			15,651			14,808			13,868
	Provision (credit) for credit losses		69			(4	)		479			254			110
	Non-interest income		2,490			2,789			2,892			2,237			2,445
	Non-interest expense		10,197			10,095			9,978			9,856			11,091
Balance Sheet Highlights
	Total assets	$	1,717,328		$	1,673,199		$	1,654,950		$	1,616,215		$	1,602,336
	Loans, net and loans held for sale		1,172,517			1,168,469			1,160,829			1,149,624			1,135,981
	Goodwill and other intangibles, net		33,197			33,651			34,142			34,653			35,164
	Total deposits
	Noninterest-bearing	$	283,210		$	277,012		$	272,376		$	272,680		$	273,783
	Savings		196,828			192,311			192,903			194,816			195,748
	NOW		451,699			461,367			456,661			422,415			406,330
	Money Market		127,633			104,726			107,853			104,677			103,759
	Time Deposits		394,198			377,336			367,097			366,475			359,015
	Total interest-bearing deposits		1,170,358			1,135,740			1,124,514			1,088,383			1,064,852
	Core deposits*		1,059,370			1,035,416			1,029,793			994,588			979,620
Selected Ratios
	Fully tax-equivalent net interest margin		4.33	%		4.27	%		4.15	%		4.04	%		3.83	%
	Annualized return on average assets		1.72	%		1.77	%		1.63	%		1.44	%		1.10	%
	Annualized return on average equity		14.83	%		15.49	%		14.81	%		13.33	%		10.33	%
Capital Ratios - Journey Bank**
	Common equity tier I capital ratio		15.87	%		15.92	%		15.69	%		15.33	%		15.13	%
	Tier 1 capital ratio		15.87	%		15.92	%		15.69	%		15.33	%		15.13	%
	Total risk-based capital ratio		16.81	%		16.87	%		16.70	%		16.33	%		16.13	%
	Leverage ratio		9.89	%		9.93	%		9.62	%		9.43	%		9.30	%
Asset Quality Ratios
	Non-performing assets	$	9,360		$	11,978		$	15,536		$	13,844		$	12,300
	Allowance for credit losses - loans		9,968			9,959			10,548			10,167			9,985
	Allowance for credit losses to total loans		0.84	%		0.85	%		0.90	%		0.88	%		0.87	%
	Non-performing assets to total assets		0.55	%		0.72	%		0.94	%		0.86	%		0.77	%
Per Share Data
	Earnings per share	$	2.02		$	2.09		$	1.90		$	1.63		$	1.23
	Dividends declared per share***		1.46			0.45			0.45			0.95			0.45
	Book value		54.29			54.44			52.17			49.87			48.50
	Common stock price:
	Bid	$	65.90		$	47.81		$	49.36		$	47.25		$	40.25
	Ask		70.72			59.54			50.00			49.05			42.00
	Weighted average common shares		3,536,761			3,535,985			3,535,009			3,533,977			3,532,727
	* Core deposits are defined as total deposits less time deposits
	** Capital ratios for the most recent period are estimated
	*** Includes special one-time cash dividends of $1.00 per share for the three months ended 3/31/2026 and $0.50 per share for the three months ended 6/30/2025