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

Unaudited Financial Information

Net income, as reported under accounting principles generally accepted in the United States of America (“GAAP”), for the second quarter 2026 was $7,155,000, or $0.67 per share, compared to $5,768,000, or $0.54 per share, for the second quarter 2025. Net income, as reported under GAAP, for the six months ended June 30, 2026 was $14,311,000, or $1.35 per share, compared to $10,113,000, or $0.95 per share for the same period in 2025. Return on average assets and return on average equity were 1.70% and 14.65%, respectively, for the second quarter 2026 as compared to 1.44% and 13.33%, respectively, for the second quarter 2025.

Net interest income of $16,769,000 for the second quarter 2026 increased $1,961,000 from the second quarter 2025 amount of $14,808,000, reflecting an increase in total interest and dividend income of $1,737,000 and a decrease of $224,000 in total interest expense. The fully-tax equivalent net interest margin was 4.37% for the second quarter 2026 as compared to 4.04% for the second quarter 2025.

For the second quarter 2026, a $394,000 provision for credit losses was recorded compared to a $254,000 provision for the second quarter 2025. The allowance for credit losses to total loans was 0.85% at both June 30, 2026 and December 31, 2025.

Total non-interest income increased $323,000 to $2,560,000 for the second quarter 2026, compared to the second quarter 2025 amount of $2,237,000. Realized losses on available-for-sale debt securities, net, totaled $1,445,000 for the second quarter 2026 compared to $426,000 for the second quarter 2025. This change was offset by $605,000 of one-time gains recognized related to bank-owned life insurance claims in the second quarter 2026 as well as an increase in other non-interest income of $400,000 which was primarily related to incentives received pursuant to the Bank’s debit card processing contract during the second quarter 2026.

Total non-interest expense increased $564,000 from $9,856,000 for the second quarter 2025, to $10,420,000 for the second quarter 2026. Salaries and employee benefits expense of $5,580,000 for the second quarter 2026 increased $596,000 from $4,984,000 for the second quarter 2025. This increase was related to health insurance expenses associated with the Corporation’s partially self-funded health insurance plan which were $316,000 higher in the second quarter 2026 than the second quarter 2025 along with ongoing salary and wage increases for employees. The increase in salaries and employee benefits expense was partially offset by a decrease in data processing and telecommunications expenses of $116,000 due to one-time charges incurred in conjunction with the implementation of new products during the second quarter 2025.

Total assets amounted to $1,672,332,000 at June 30, 2026, as compared to $1,673,199,000 at December 31, 2025. For the six months ended June 30, 2026, cash and cash equivalents decreased $28,396,000 and loans receivable held for investment increased by $28,603,000. Total liabilities amounted to $1,473,665,000 at June 30, 2026, as compared to $1,480,658,000 at December 31, 2025. Total deposits increased $20,843,000 while short-term borrowings increased $11,841,000 and long-term borrowings decreased $40,584,000 during the six months ended June 30, 2026. During the second quarter 2026, the Corporation prepaid, in full, its outstanding long-term FHLB borrowings.

Total non-performing assets amounted to $8,881,000 or 0.53% of total assets at June 30, 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 $8,881,000 at June 30, 2026.

Total stockholders’ equity equated to a book value per share of $18.72 at June 30, 2026, as compared with $18.15 at December 31, 2025. For the second quarter 2026 total cash dividends of $0.155 per share were declared as compared to $0.317 for the same period of 2025. For the six months ended June 30, 2026, total cash dividends of $0.642 per share were declared as compared to $0.467 for the same period of 2025, which included the impact of special one-time dividends of $0.333 per share and $0.167 per share for the six months ended June 30, 2026 and 2025, respectively. The Corporation remains well capitalized, with an equity to assets ratio of 11.88% at June 30, 2026, as compared to 11.51% at December 31, 2025.

Stock Split

On April 23, 2026, the Corporation’s Board of Directors declared a three-for-one stock split in the form of a 200% stock dividend on its outstanding shares of common stock. Each shareholder of record as of the close of business on May 7, 2026 received two additional shares of common stock for each share then held, effective May 15, 2026. The dividend was paid in authorized but unissued shares of common stock of the Corporation. The par value of the Corporation's stock was not affected by the split and remained at $1.25 per share. All share and per share amounts reported in this press release have been adjusted to reflect the three-for-one stock split.

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 CorporationConsolidated Balance Sheets (In Thousands, Except Share and Per Share Data) (Unaudited)June 30,2026December 31,2025ASSETSCash and due from banks

$

16,327

$

12,828

Interest-bearing deposits in other banks

3,817

35,712

Total cash and cash equivalents

20,144

48,540

 Available-for-sale debt securities, at fair value

328,225

327,245

Marketable equity securities, at fair value

1,616

1,411

Restricted investment in bank stocks, at cost

4,690

5,412

Loans held for sale

1,354

847

 Loans receivable

1,206,184

1,177,581

Allowance for credit losses

(10,261

)

(9,959

)

Loans, net

1,195,923

1,167,622

 Premises and equipment, net

26,449

26,263

Foreclosed assets held for sale

-

320

Accrued interest receivable

5,567

5,063

Bank-owned life insurance

41,170

41,740

Investment in limited partnerships

3,973

4,346

Deferred tax asset, net

5,809

5,992

Goodwill

25,609

25,609

Other intangible assets, net

7,134

8,042

Other assets

4,669

4,747

TOTAL ASSETS

$

1,672,332

$

1,673,199

 LIABILITIESInterest-bearing deposits

$

1,156,203

$

1,135,740

Noninterest-bearing deposits

277,392

277,012

Total deposits

1,433,595

1,412,752

 Short-term borrowings

24,296

12,455

Long-term borrowings

-

40,584

Accrued interest payable

1,539

1,644

Other liabilities

14,235

13,223

TOTAL LIABILITIES

1,473,665

1,480,658

 STOCKHOLDERS' EQUITYCommon stock, par value $1.25 per share; 15,000,000 shares authorized;issued 10,922,772 and outstanding 10,614,047 at June 30, 2026;issued 10,918,987 and outstanding 10,610,262 at December 31, 2025

13,653

4,807

Additional paid-in capital

74,949

83,720

Retained earnings

126,866

119,364

Accumulated other comprehensive loss

(5,494

)

(4,043

)

Treasury stock, at cost; 308,725 shares at June 30, 2026 and December 31, 2025

(11,307

)

(11,307

)

TOTAL STOCKHOLDERS' EQUITY

198,667

192,541

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,672,332

$

1,673,199

 * All share amounts have been adjusted to reflect the three-for-one stock split effective May 15, 2026.
Muncy Columbia Financial CorporationConsolidated 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)

2026

2025

2026

2025

INTEREST AND DIVIDEND INCOMEInterest and fees on loans:Taxable

$

19,642

$

18,805

$

38,987

$

37,089

Tax-exempt

394

420

807

818

Interest and dividends on investment securities:Taxable

2,202

1,311

4,035

2,408

Tax-exempt

864

860

1,734

1,720

Dividend and other interest income

138

165

274

333

Deposits in other banks

159

101

463

135

TOTAL INTEREST AND DIVIDEND INCOME

23,399

21,662

46,300

42,503

 INTEREST EXPENSEDeposits

6,051

6,037

11,944

11,838

Short-term borrowings

118

252

213

795

Long-term borrowings

461

565

931

1,194

TOTAL INTEREST EXPENSE

6,630

6,854

13,088

13,827

 NET INTEREST INCOME

16,769

14,808

33,212

28,676

 PROVISION FOR CREDIT LOSSES

394

254

463

364

 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

16,375

14,554

32,749

28,312

 NON-INTEREST INCOMEService charges and fees

749

709

1,502

1,431

Interchange fees

672

673

1,289

1,296

Gain (loss) on sale of loans

155

71

(482

)

154

Earnings on bank-owned life insurance

257

233

489

464

Gain on settlement of bank-owned life insurance claims

605

-

605

-

Brokerage

310

252

548

485

Trust

300

280

579

518

Gains (losses) on marketable equity securities

126

14

205

(20

)

Realized losses on available-for-sale debt securities, net

(1,445

)

(426

)

(1,445

)

(426

)

Other non-interest income

831

431

1,760

780

TOTAL NON-INTEREST INCOME

2,560

2,237

5,050

4,682

 NON-INTEREST EXPENSESalaries and employee benefits

5,580

4,984

10,913

11,304

Occupancy

682

640

1,416

1,360

Furniture and equipment

357

460

736

886

Pennsylvania shares tax

374

301

749

602

Professional fees

445

414

1,089

862

Director's fees

161

165

328

318

Federal deposit insurance

195

217

390

435

Data processing and telecommunications

962

1,078

1,841

1,917

Automated teller machine and interchange

140

101

302

365

Amortization of intangibles

454

511

908

1,021

Other non-interest expense

1,070

985

1,945

1,877

TOTAL NON-INTEREST EXPENSE

10,420

9,856

20,617

20,947

 INCOME BEFORE INCOME TAX PROVISION

8,515

6,935

17,182

12,047

INCOME TAX PROVISION

1,360

1,167

2,871

1,934

NET INCOME

$

7,155

$

5,768

$

14,311

$

10,113

 EARNINGS PER SHARE - BASIC AND DILUTED

$

0.67

$

0.54

$

1.35

$

0.95

WEIGHTED AVERAGE SHARES OUTSTANDING

10,612,247

10,601,932

10,611,271

10,600,067

 * All share and per share amounts have been adjusted to reflect the three-for-one stock split effective May 15, 2026.
At or Three Months Ended (Unaudited) (Dollars in Thousands, Except Per Share Data)6/30/20263/31/202612/31/20259/30/20256/30/2025 Operating Highlights Net income

$

7,155

$

7,156

$

7,393

$

6,719

$

5,768

Net interest income

16,769

16,443

16,272

15,651

14,808

Provision (credit) for credit losses

394

69

(4

)

479

254

Non-interest income

2,560

2,490

2,789

2,892

2,237

Non-interest expense

10,420

10,197

10,095

9,978

9,856

 Balance Sheet Highlights Total assets

$

1,672,332

$

1,717,328

$

1,673,199

$

1,654,950

$

1,616,215

Loans, net and loans held for sale

1,197,277

1,172,517

1,168,469

1,160,829

1,149,624

Goodwill and other intangibles, net

32,743

33,197

33,651

34,142

34,653

Total depositsNoninterest-bearing

$

277,392

$

283,210

$

277,012

$

272,376

$

272,680

Savings

198,675

196,828

192,311

192,903

194,816

NOW

453,593

451,699

461,367

456,661

422,415

Money Market

113,486

127,633

104,726

107,853

104,677

Time Deposits

390,449

394,198

377,336

367,097

366,475

Total interest-bearing deposits

1,156,203

1,170,358

1,135,740

1,124,514

1,088,383

Core deposits (a)

1,043,146

1,059,370

1,035,416

1,029,793

994,588

 Selected Ratios Fully tax-equivalent net interest margin

4.37

%

4.33

%

4.27

%

4.15

%

4.04

%

Annualized return on average assets

1.70

%

1.72

%

1.77

%

1.63

%

1.44

%

Annualized return on average equity

14.65

%

14.83

%

15.49

%

14.81

%

13.33

%

 Capital Ratios - Journey Bank (b) Common equity tier I capital ratio

16.74

%

16.29

%

15.92

%

15.69

%

15.33

%

Tier 1 capital ratio

16.74

%

16.29

%

15.92

%

15.69

%

15.33

%

Total risk-based capital ratio

17.73

%

17.26

%

16.87

%

16.70

%

16.33

%

Leverage ratio

10.22

%

9.88

%

9.93

%

9.62

%

9.43

%

 Asset Quality Ratios Non-performing assets

$

8,881

$

9,360

$

11,978

$

15,536

$

13,844

Allowance for credit losses - loans

10,261

9,968

9,959

10,548

10,167

Allowance for credit losses to total loans

0.85

%

0.84

%

0.85

%

0.90

%

0.88

%

Non-performing assets to total assets

0.53

%

0.55

%

0.72

%

0.94

%

0.86

%

 Per Share Data Earnings per share

$

0.67

$

0.67

$

0.70

$

0.63

$

0.54

Dividends declared per share (c)

0.155

0.487

0.150

0.150

0.317

Book value

18.72

18.10

18.15

17.39

16.62

Common stock price:Bid

$

27.31

$

21.97

$

15.94

$

16.45

$

15.75

Ask

27.73

23.57

19.85

16.67

16.35

Weighted average common shares

10,612,247

10,610,284

10,607,955

10,605,027

10,601,932

 * All share and per share amounts have been adjusted to reflect the three-for-one stock split effective May 15, 2026.(a) Core deposits are defined as total deposits less time deposits.(b) Capital ratios for the most recent period are estimated.(c) Includes special one-time cash dividends of $0.333 per share for the three months ended 3/31/2026 and $0.167 per share for the three months ended 6/30/2025.

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