BLOOMSBURG, Pa., July 19, 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 second 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 June 30, 2024 was $4,707,000, or $1.32 per share compared to net income of $1,462,000, or $0.71 per share for the same period in 2023. Net income, as reported under GAAP, for the six months ended June 30, 2024 was $8,743,000, or $2.45 per share compared to $3,402,000, or $1.64 per share for the same period in 2023. Return on average assets and return on average equity were 1.20% and 12.28% for the quarter ended June 30, 2024, as compared to 0.71% and 7.63% for the same period of 2023.
The fully-tax equivalent net interest margin on interest-earning assets and interest-bearing liabilities was 3.36% and 2.32% for the six-month periods ended June 30, 2024 and 2023, respectively.
Total consolidated assets amounted to $1,592,300,000 at June 30, 2024, as compared to $1,573,271,000 at March 31, 2024 and $1,639,779,000 at December 31, 2023. For the quarter ended June 30, 2024, loans receivable, not held for sale, increased by $19,918,000 while available-for-sale debt securities decreased $4,786,000. Total deposits increased $52,127,000 while short term borrowings decreased $36,627,000 during the quarter ended June 30, 2024.
The increase in total deposits during the quarter and six months ended June 30, 2024 was 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 $7,736,000 or 0.49% of total assets at June 30, 2024, as compared to $7,328,000 or 0.47% of total assets at March 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 June 30, 2024, the temporary impact of these unrealized losses on the stockholders’ equity amounted to a reduction of $16,936,000. 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 $44.11 at June 30, 2024 as compared with $43.08 at December 31, 2023. For the six months ended June 30, 2024 cash dividends of $0.88 per share were paid to stockholders as compared to $0.85 for the same period of 2023. The Corporation remains well capitalized, with an equity to assets ratio of 9.90% as of June 30, 2024 and 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 merger; the risk that the anticipated benefits, cost savings and other savings from the merger may not be fully realized or may take longer than expected to realize; potential impairment to the goodwill recorded in connection with the merger; 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)
June 30, 2024
December 31, 2023
ASSETS
Cash and due from banks
$
18,200
$
14,614
Interest-bearing deposits in other banks
3,276
3,763
Total cash and cash equivalents
21,476
18,377
Interest-bearing time deposits
248
979
Available-for-sale debt securities, at fair value
334,808
413,302
Marketable equity securities, at fair value
1,140
1,295
Restricted investment in bank stocks, at cost
8,064
10,394
Loans held for sale
754
366
Loans receivable
1,100,665
1,068,429
Allowance for credit losses
(9,362
)
(9,302
)
Loans, net
1,091,303
1,059,127
Premises and equipment, net
27,025
27,569
Foreclosed assets held for sale
335
170
Accrued interest receivable
5,077
5,362
Bank-owned life insurance
40,709
40,209
Investment in limited partnerships
5,465
5,828
Deferred tax asset, net
11,517
12,634
Goodwill
25,609
25,609
Other intangible assets, net
11,151
11,895
Other assets
7,619
6,663
TOTAL ASSETS
$
1,592,300
$
1,639,779
LIABILITIES
Interest-bearing deposits
$
1,002,208
$
884,654
Noninterest-bearing deposits
263,419
266,015
Total deposits
1,265,627
1,150,669
Short-term borrowings
89,286
252,532
Long-term borrowings
65,599
70,448
Accrued interest payable
2,299
2,358
Other liabilities
11,848
9,947
TOTAL LIABILITIES
1,434,659
1,485,954
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; 15,000,000 shares authorized;
issued 3,838,727 and outstanding 3,574,027 at June 30, 2024;
issued 3,834,976 and outstanding 3,570,276 at December 31, 2023;
4,798
4,794
Additional paid-in capital
83,455
83,343
Retained earnings
96,114
90,514
Accumulated other comprehensive loss
(16,936
)
(15,036
)
Treasury stock, at cost; 264,700 shares at June 30, 2024 and December 31, 2023
(9,790
)
(9,790
)
TOTAL STOCKHOLDERS' EQUITY
157,641
153,825
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
1,592,300
$
1,639,779
Muncy Columbia Financial Corporation
Consolidated Statements of Income
For the Three Months Ended
For the Six Months Ended
June 30,
June 30,
(In Thousands, Except Share and Per Share Data) (Unaudited)
2024
2023
2024
2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable
$
17,741
$
6,298
$
34,997
$
12,232
Tax-exempt
332
215
685
431
Interest and dividends on investment securities:
Taxable
1,020
1,222
2,181
2,430
Tax-exempt
836
134
1,666
263
Dividend and other interest income
204
69
427
136
Federal funds sold
-
1
-
1
Deposits in other banks
62
25
128
85
TOTAL INTEREST AND DIVIDEND INCOME
20,195
7,964
40,084
15,578
INTEREST EXPENSE
Deposits
5,610
780
10,220
1,407
Short-term borrowings
1,427
2,125
3,924
3,911
Long-term borrowings
798
146
1,645
146
TOTAL INTEREST EXPENSE
7,835
3,051
15,789
5,464
NET INTEREST INCOME
12,360
4,913
24,295
10,114
Provision (credit) for credit losses - loans
36
(4
)
137
(422
)
(Credit) provision for credit losses - off balance sheet credit exposures
(7
)
(12
)
(18
)
(3
)
TOTAL PROVISION (CREDIT) FOR CREDIT LOSSES
29
(16
)
119
(425
)
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR CREDIT LOSSES
12,331
4,929
24,176
10,539
NON-INTEREST INCOME
Service charges and fees
667
514
1,282
1,039
Gain on sale of loans
93
96
169
125
Earnings on bank-owned life insurance
229
113
456
222
Brokerage
192
151
416
279
Trust
204
227
410
418
Losses on marketable equity securities
(38
)
(66
)
(155
)
(147
)
Realized losses on available-for-sale debt securities, net
-
-
(8
)
-
Interchange fees
687
442
1,306
866
Other non-interest income
385
229
1,075
530
TOTAL NON-INTEREST INCOME
2,419
1,706
4,951
3,332
NON-INTEREST EXPENSE
Salaries and employee benefits
4,640
2,440
9,442
5,032
Occupancy
581
320
1,199
643
Furniture and equipment
384
282
790
567
Pennsylvania shares tax
230
131
440
292
Professional fees
319
264
776
522
Director's fees
105
73
239
155
Federal deposit insurance
188
109
408
217
Data processing and telecommunications
904
332
1,824
703
Automated teller machine and interchange
106
(9
)
368
110
Merger-related expenses
201
449
297
449
Amortization of intangibles
549
-
1,098
-
Other non-interest expense
987
466
1,959
984
TOTAL NON-INTEREST EXPENSE
9,194
4,857
18,840
9,674
INCOME BEFORE INCOME TAX PROVISION
5,556
1,778
10,287
4,197
INCOME TAX PROVISION
849
316
1,544
795
NET INCOME
$
4,707
$
1,462
$
8,743
$
3,402
EARNINGS PER SHARE - BASIC AND DILUTED
$
1.32
$
0.71
$
2.45
$
1.64
WEIGHTED AVERAGE SHARES OUTSTANDING
3,572,345
2,079,649
3,571,344
2,079,393
At or 3 Months Ended (Unaudited)
(Dollars in Thousands, Except Per Share Data)
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
Operating Highlights
Net income (loss)
$
4,707
$
4,036
$
(1,186
)
$
1,171
$
1,462
Net interest income
12,360
11,935
8,257
4,891
4,913
Provision (credit) for credit losses
29
90
3,114
(168
)
(16
)
Non-interest income
2,419
2,532
2,267
1,522
1,706
Non-interest expense
9,194
9,646
9,163
5,273
4,857
Balance Sheet Highlights
Total assets
$
1,592,300
$
1,573,271
$
1,639,779
$
957,580
$
960,080
Loans, net and loans held for sale
1,092,057
1,072,010
1,059,493
556,862
544,593
Goodwill and other intangibles, net
36,760
36,955
37,504
7,937
7,937
Total deposits
Noninterest-bearing
$
263,419
$
263,954
$
266,015
$
165,888
$
175,521
Savings
199,626
203,002
204,968
155,750
157,833
NOW
346,000
298,122
251,953
146,944
152,358
Money Market
117,770
112,190
103,602
41,521
44,341
Time Deposits
338,812
336,232
324,131
130,472
128,430
Total interest-bearing deposits
1,002,208
949,546
884,654
474,687
482,962
Core deposits*
926,815
877,268
826,538
510,103
530,053
Selected Ratios
Fully tax-equivalent net interest margin (YTD)
3.36
%
3.32
%
2.34
%
2.29
%
2.32
%
Annualized return on average assets
1.20
%
1.02
%
-0.35
%
0.63
%
0.71
%
Annualized return on average equity
12.28
%
10.52
%
-3.95
%
6.78
%
7.63
%
Capital Ratios - Journey Bank**
Common equity tier I capital ratio
14.06
%
13.95
%
13.52
%
18.80
%
18.96
%
Tier 1 capital ratio
14.06
%
13.95
%
13.52
%
18.80
%
18.96
%
Total risk-based capital ratio
15.03
%
14.94
%
14.49
%
19.91
%
20.11
%
Leverage ratio
8.68
%
8.40
%
8.03
%
10.58
%
10.65
%
Asset Quality Ratios
Non-performing assets
$
7,736
$
7,328
$
4,475
$
2,659
$
2,562
Allowance for credit losses - loans
9,362
9,351
9,302
6,094
6,278
Allowance for credit losses to total loans
0.85
%
0.87
%
0.87
%
1.09
%
1.14
%
Allowance for credit losses to
non-performing assets
121.02
%
127.61
%
207.87
%
244.81
%
245.04
%
Per Share Data
Earnings (loss) per share
$
1.32
$
1.13
$
(0.41
)
$
0.56
$
0.71
Dividend declared per share
0.44
0.44
0.43
0.43
0.43
Book value
44.11
43.35
43.08
42.50
43.44
Common stock price:
Bid
$
32.10
$
30.50
$
34.50
$
34.59
$
37.57
Ask
34.75
32.00
37.17
35.00
43.00
Weighted average common shares
3,572,345
3,570,342
2,873,775
2,080,109
2,079,649
* Core deposits are defined as total deposits less time deposits
** Capital ratios for the most recent period are estimated
