Muncy Columbia Financial Corporation (OTCQX: CCFN), the parent company of Journey Bank, declared a special one-time cash dividend and released its unaudited consolidated financial results for the first quarter of 2025. The company’s Board of Directors approved a $0.50 per share dividend, payable on May 22, 2025, to shareholders of record as of May 6, 2025.
The special dividend reflects the Corporation’s strong financial performance and capital position following its strategic merger with Muncy Bank Financial, Inc. Lance O. Diehl, President and CEO, emphasized the company’s commitment to delivering shareholder value, noting that the merger has created an opportunity to return additional capital while maintaining a capital base above regulatory well-capitalized levels.
First Quarter 2025 Financial Highlights
- Net Income and Earnings Per Share: The Corporation reported net income of $4.35 million, or $1.23 per share, for the first quarter of 2025, up from $4.04 million, or $1.13 per share, in the same period last year. Return on average assets was 1.10%, slightly higher than 1.02% in Q1 2024, while return on average equity was 10.33%, compared to 10.52% a year earlier.
- Net Interest Income: Net interest income rose to $13.87 million, an increase of $1.93 million from the prior year quarter. This improvement was driven by a $952,000 increase in total interest and dividend income, partially offset by a $981,000 reduction in interest expense. The fully-tax equivalent net interest margin expanded to 3.83% from 3.32% in Q1 2024.
- Credit Losses: The provision for credit losses increased modestly to $110,000 from $90,000 in the prior year quarter. The allowance for credit losses to total loans remained stable at 0.87% as of March 31, 2025.
- Non-Interest Income and Expenses: Total non-interest income declined $87,000 to $2.45 million, influenced by lower one-time gains recognized in the prior year. Service charges and fees increased by $107,000, mainly due to higher overdraft fee income. Total non-interest expenses rose by $1.45 million to $11.09 million, largely reflecting $1.30 million in one-time pretax expenses related to the retirement of the Executive Chairman and increased health insurance costs.
- Balance Sheet and Capital: Total consolidated assets were $1.60 billion at March 31, 2025, slightly above the $1.60 billion at year-end 2024. Loans receivable increased by $18.25 million, while available-for-sale debt securities decreased by $15.79 million. Deposits grew by $46.21 million, supported by organic growth and a strategic initiative to convert repurchase agreements into core deposit accounts, which is expected to complete in 2025. Non-performing assets increased to $12.3 million, or 0.77% of total assets, up from $10.1 million, or 0.63%, at December 31, 2024.
- Equity and Dividends: Stockholders’ equity rose, resulting in a book value per share of $48.50 at quarter-end, compared to $47.11 at the end of 2024. The Corporation paid a quarterly cash dividend of $0.45 per share in Q1 2025, up from $0.44 in Q1 2024. The equity-to-assets ratio improved to 10.70% from 10.43%, underscoring the company’s strong capital base.
Muncy Columbia Financial Corporation continues to focus on optimizing its balance sheet and liquidity through strategic deposit growth and repurchase agreement repositioning. The Corporation’s management highlighted that the successful merger and ongoing initiatives provide a solid foundation for future growth and shareholder returns.
Headquartered in Bloomsburg, Pennsylvania, Muncy Columbia Financial Corporation operates through its subsidiary, Journey Bank. The bank serves a diverse client base including individuals, families, nonprofits, and businesses across six counties in Pennsylvania through 22 banking offices.
This dividend announcement and financial report reflect Muncy Columbia Financial Corporation’s ongoing efforts to enhance shareholder value and maintain financial strength amid evolving market conditions.
