BLOOMSBURG, Pa., October 18, 2024--(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.
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
