EX-99.1 2 ex99-1.htm PRESS RELEASE

 

 

MUNCY COLUMBIA FINANCIAL CORPORATION 8-K

 

Exhibit 99.1

 

Press Release – For Immediate Release

April 23, 2024

Muncy Columbia Financial Corporation Reports First Quarter 2024 Earnings

 

Bloomsburg, PA – Muncy Columbia Financial Corporation (“Corporation”) (OTCQX: CCFN), parent company of Journey Bank (”Bank”), has released its unaudited financial statements for the first 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 March 31, 2024, was $4,036,000 compared to net income of $1,940,000 for the same period in 2023. Earnings per share, basic and diluted, for the quarters-ended March 31, 2024 and 2023 were $1.13 and $0.93, respectively. Return on average assets and return on average equity were 1.02% and 10.52% for the quarter-ended March 31, 2024 as compared to 0.82% and 8.94% for the same period of 2023.

 

The fully-tax equivalent net interest margin on interest earning assets and liabilities was 3.32% and 2.41% at March 31, 2024 and 2023, respectively.

 

Total consolidated assets amounted to $1,573,271,000 at March 31, 2024, as compared to $1,639,779,000 at December 31, 2023. For the quarter-ended March 31, 2024, loans receivable, not held for sale, increased by $12,318,000 while available-for-sale debt securities decreased $73,708,000. Total deposits increased $62,831,000 while short term borrowings decreased $126,619,000 since the end of 2023.

 

On January 17, 2024, the Corporation sold available-for-sale debt securities with a total market value of $50,311,000, the proceeds of which were utilized to paydown short-term Federal Home Loan Bank of Pittsburgh (“FHLB”) borrowings. Securities sold included $34,222,000 of US government agency securities, $15,526,000 of mortgaged-backed securities and $563,000 of collateralized mortgage obligations. The sale resulted in a net realized loss of $8,000 which was recorded in January 2024.

 

The increase in total deposits during the quarter-ended March 31, 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 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 $7,328,000 at March 31, 2024, as compared to $4,475,000 at December 31, 2023. For the quarter-ended March 31, 2024, the increase in non-performing assets was primarily attributable to one real estate loan relationship with an aggregate balance of $2,221,000 which was placed on nonaccrual status during the quarter. This relationship is well secured, and the Bank is working closely with the borrower to bring the relationship to a current status. The Bank does not expect to incur a credit loss related to this relationship at this time.

 

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). For the quarter-ended March 31, 2024, the temporary impact of these unrealized losses on the stockholders’ equity amounted to a reduction of $16,526,000. 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 $43.35 at March 31, 2024 as compared with $43.08 at December 31, 2023. For the quarter-ended March 31, 2024 cash dividends of $0.44 per share were paid to stockholders as compared to $0.42 for the same period of 2023. The Corporation remains well capitalized, with an equity to assets ratio of 9.84% as of March 31, 2024 and 9.38% at December 31, 2023.

 

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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 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.

 

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Muncy Columbia Financial Corporation

Consolidated Balance Sheets

 

(In Thousands, Except Share and Per Share Data) (Unaudited)  March 31, 2024   December 31, 2023 
ASSETS          
Cash and due from banks  $11,994   $14,614 
Interest-bearing deposits in other banks   4,237    3,763 
Total cash and cash equivalents   16,231    18,377 
           
Interest-bearing time deposits   736    979 
Available-for-sale debt securities, at fair value   339,594    413,302 
Marketable equity securities, at fair value   1,178    1,295 
Restricted investment in bank stocks, at cost   8,013    10,394 
Loans held for sale   614    366 
           
Loans receivable   1,080,747    1,068,429 
Allowance for credit losses   (9,351)   (9,302)
Loans, net   1,071,396    1,059,127 
           
Premises and equipment, net   27,322    27,569 
Foreclosed assets held for sale   335    170 
Accrued interest receivable   4,849    5,362 
Bank-owned life insurance   40,456    40,209 
Investment in limited partnerships   5,641    5,828 
Deferred tax asset, net   11,745    12,634 
Goodwill   25,609    25,609 
Core deposit intangible, net   11,346    11,895 
Other assets   8,206    6,663 
TOTAL ASSETS  $1,573,271   $1,639,779 
           
LIABILITIES          
Interest-bearing deposits  $949,546   $884,654 
Noninterest-bearing deposits   263,954    266,015 
Total deposits   1,213,500    1,150,669 
           
Short-term borrowings   125,913    252,532 
Long-term borrowings   65,524    70,448 
Accrued interest payable   2,281    2,358 
Other liabilities   11,190    9,947 
TOTAL LIABILITIES   1,418,408    1,485,954 
           
STOCKHOLDERS' EQUITY          
Common stock, par value $1.25 per share; 15,000,000 shares authorized; issued 3,836,988 and outstanding 3,572,288 at March 31, 2024; issued 3,834,976 and outstanding 3,570,276 at December 31, 2023;   4,796    4,794 
Additional paid-in capital   83,403    83,343 
Retained earnings   92,980    90,514 
Accumulated other comprehensive loss   (16,526)   (15,036)
Treasury stock, at cost; 264,700 shares at March 31, 2024 and December 31, 2023   (9,790)   (9,790)
TOTAL STOCKHOLDERS' EQUITY   154,863    153,825 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $1,573,271   $1,639,779 

 

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Muncy Columbia Financial Corporation

Consolidated Statements of Income 

 

   For the Three Months Ended 
   March 31, 
(In Thousands, Except Share and Per Share Data) (Unaudited)  2024   2023 
INTEREST AND DIVIDEND INCOME          
Interest and fees on loans:          
Taxable  $17,256   $5,934 
Tax-exempt   353    216 
Interest and dividends on investment securities:          
Taxable   1,161    1,208 
Tax-exempt   830    129 
Dividend and other interest income   223    67 
Federal funds sold   —    — 
Deposits in other banks   66    60 
TOTAL INTEREST AND DIVIDEND INCOME   19,889    7,614 
           
INTEREST EXPENSE          
Deposits   4,610    627 
Short-term borrowings   2,497    1,786 
Long-term borrowings   847    — 
TOTAL INTEREST EXPENSE   7,954    2,413 
           
NET INTEREST INCOME   11,935    5,201 
           
Provision (credit) for credit losses - loans   101    (418)
(Credit) provision for credit losses - off balance sheet credit exposures   (11)   9 
TOTAL PROVISION (CREDIT) FOR CREDIT LOSSES   90    (409)
           
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR CREDIT LOSSES   11,845    5,610 
           
NON-INTEREST INCOME          
Service charges and fees   615    525 
Gain on sale of loans   76    29 
Earnings on bank-owned life insurance   227    109 
Brokerage   224    128 
Trust   206    191 
Losses on marketable equity securities   (117)   (81)
Realized losses on available-for-sale debt securities, net   (8)   — 
Interchange fees   619    424 
Other non-interest income   690    301 
TOTAL NON-INTEREST INCOME   2,532    1,626 
           
NON-INTEREST EXPENSE          
Salaries and employee benefits   4,802    2,592 
Occupancy   618    323 
Furniture and equipment   896    519 
Pennsylvania shares tax   210    161 
Professional fees   799    311 
Director's fees   134    82 
Federal deposit insurance   220    108 
Telecommunications   88    84 
Automated teller machine and interchange   262    119 
Merger-related expenses   96    — 
Amortization of core deposit intangible   549    — 
Other non-interest expense   972    518 
TOTAL NON-INTEREST EXPENSE   9,646    4,817 
           
INCOME BEFORE INCOME TAX PROVISION   4,731    2,419 
INCOME TAX PROVISION   695    479 
NET INCOME  $4,036   $1,940 
           
EARNINGS PER SHARE - BASIC AND DILUTED  $1.13   $0.93 
WEIGHTED AVERAGE SHARES OUTSTANDING   3,570,342    2,079,135 

 

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   At or 3 Months Ended (Unaudited) 
                     
(Dollars in Thousands, Except Per Share Data)  3/31/2024   12/31/2023   9/30/2023   6/30/2023   3/31/2023 
                     
Operating Highlights                         
                          
Net income (loss)  $4,036   $(1,186)  $1,171   $1,462   $1,940 
Net interest income   11,935    8,257    4,891    4,913    5,201 
Provision (credit) for credit losses   90    3,114    (168)   (16)   (409)
Non-interest income   2,532    2,267    1,522    1,706    1,626 
Non-interest expense   9,646    9,163    5,273    4,857    4,817 
                          
Balance Sheet Highlights                         
                          
Total assets  $1,573,271   $1,639,779   $957,580   $960,080   $955,030 
Loans, net and loans held for sale   1,072,010    1,059,493    556,862    544,593    535,843 
Goodwill and core deposit intangible, net   36,955    37,504    7,937    7,937    7,937 
Total deposits                         
Noninterest-bearing  $263,954   $266,015   $165,888   $175,521   $178,438 
Savings   203,002    204,968    155,750    157,833    166,231 
NOW   298,122    251,953    146,944    152,358    151,191 
Money Market   112,190    103,602    41,521    44,341    51,846 
Time Deposits   336,232    324,131    130,472    128,430    127,670 
Total interest-bearing deposits   949,546    884,654    474,687    482,962    496,938 
Core deposits*   877,268    826,538    510,103    530,053    547,706 
                          
Selected Ratios                         
                          
Fully tax-equivalent net interest margin (YTD)   3.32%   2.34%   2.29%   2.32%   2.41%
Annualized return on average assets   1.02%   -0.35%   0.63%   0.71%   0.82%
Annualized return on average equity   10.52%   -3.95%   6.78%   7.63%   8.94%
                          
Capital Ratios - Journey Bank**                         
                          
Common equity tier I capital ratio   13.95%   13.52%   18.80%   18.96%   18.94%
Tier 1 capital ratio   13.95%   13.52%   18.80%   18.96%   18.94%
Total risk-based capital ratio   14.94%   14.49%   19.91%   20.11%   20.10%
Leverage ratio   8.40%   8.03%   10.58%   10.65%   10.62%
                          
Asset Quality Ratios                         
                          
Non-performing assets  $7,328   $4,475   $2,659   $2,562   $2,808 
Allowance for credit losses - loans   9,351    9,302    6,094    6,278    6,288 
Allowance for credit losses to total loans   0.87%   0.87%   1.09%   1.14%   1.16%
Allowance for credit losses to non-performing assets   127.61%   207.87%   244.81%   245.04%   223.91%
                          
Per Share Data                         
                          
Earnings (loss) per share  $1.13   $(0.41)  $0.56   $0.71   $0.93 
Dividend declared per share   0.44    0.43    0.43    0.43    0.42 
Book value   43.35    43.08    42.50    43.44    44.52 
Common stock price:                         
Bid  $30.50   $34.50   $34.59   $37.57   $40.05 
Ask   32.00    37.17    35.00    43.00    42.50 
Weighted average common shares   3,570,342    2,873,775    2,080,109    2,079,649    2,079,135 

 

* Core deposits are defined as total deposits less time deposits

** Capital ratios for the most recent period are estimated

 

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