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 | |||||||||||||||||||||||||
