CCFN

MKT CAP $323.5MP/E 4.6DIV YIELD 8.25%FCF YIELD 10.64%REV TTM —NET INCOME $28.4M +39.4%NET DEBT $20.5M52W 17.39 – 30.60SEC XBRL · TTM TO Invalid Date

How CCFN rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

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170

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Length

−1,270

words, now 24,061

New in FY2025

At December 31, 2025, our cumulative gap positions were within the internal risk management guidelines.
The following table illustrates the simulated impact of parallel and instantaneous interest rate shocks of +100, +200, +300, -100, -200, and -300 basis points on net interest income and the change in economic value over a one-year time horizon from the December 31, 2025 levels: Rates +100 Rates +200 Rates +300 Rates -100 Rates -200 Rates -300 Simulation Results Policy Limit Simulation Results Policy Limit Simulation Results Policy Limit Simulation Results Policy Limit Simulation Results Policy Limit Simulation Results Policy Limit Earnings at risk: Percent change in net interest income 2.12 % -10.00 % -1.58 % -15.00 % -5.55 % -20.00 % 6.59 % -10.00 % 7.41 % -15.00 % 10.04 % -20.00 % Economic value at risk: Percent change in economic value of equity -5.95 % -15.00 % -13.14 % -25.00 % -21.26 % -30.00 % 2.31 % -15.00 % 3.75 % -25.00 % 5.55 % -30.00 % Model results from the simulation at December 31, 2025 indicated that the Bank was projected to see an increase in net interest income over a one-year horizon in any of the rate shock scenarios, with the exception of the +200 and +300 scenarios, which showed 1.58% and 5.55% decreases, respectively.
Financial Statements and Supplementary Data Muncy Columbia Financial Corporation Consolidated Balance Sheets (In Thousands, Except Share and Per Share Data) December 31, 2025 December 31, 2024 ASSETS Cash and due from banks $ 12,828 $ 11,200 Interest-bearing deposits in other banks 35,712 6,180 Total cash and cash equivalents 48,540 17,380 Available-for-sale debt securities, at fair value 327,245 323,248 Marketable equity securities, at fair value 1,411 1,355 Restricted investment in bank stocks, at cost 5,412 7,095 Loans held for sale 847 1,691 Loans receivable 1,177,581 1,125,937 Allowance for credit losses ( 9,959 ) ( 9,858 ) Loans, net 1,167,622 1,116,079 Premises and equipment, net 26,263 26,484 Foreclosed assets held for sale 320 70 Accrued interest receivable 5,063 4,850 Bank-owned life insurance 41,740 40,953 Investment in limited partnerships 4,346 5,092 Deferred tax asset, net 5,992 10,012 Goodwill 25,609 25,609 Other intangible assets, net 8,042 10,047 Other assets 4,747 5,993 TOTAL ASSETS $ 1,673,199 $ 1,595,958 LIABILITIES Interest-bearing deposits $ 1,135,740 $ 1,032,729 Noninterest-bearing deposits 277,012 259,700 Total deposits 1,412,752 1,292,429 Short-term borrowings 12,455 68,388 Long-term borrowings 40,584 55,536 Accrued interest payable 1,644 1,857 Other liabilities 13,223 11,338 TOTAL LIABILITIES 1,480,658 1,429,548 STOCKHOLDERS' EQUITY Common stock, par value $ 1.25 per share; 15,000,000 shares authorized; issued 3,845,479 and outstanding 3,536,754 at December 31, 2025 issued 3,841,438 and outstanding 3,532,713 at December 31, 2024 4,807 4,802 Additional paid-in capital 83,720 83,543 Retained earnings 119,364 103,268 Accumulated other comprehensive loss ( 4,043 ) ( 13,896 ) Treasury stock, at cost; 308,725 shares at December 31, 2025 and 2024 ( 11,307 ) ( 11,307 ) TOTAL STOCKHOLDERS' EQUITY 192,541 166,410 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,673,199 $ 1,595,958 See accompanying notes to the consolidated financial statements.
Muncy Columbia Financial Corporation Consolidated Statements of Income For the Years Ended December 31, (In Thousands, Except Share and Per Share Data) 2025 2024 INTEREST AND DIVIDEND INCOME Interest and fees on loans: Taxable $ 76,002 $ 71,513 Tax-exempt 1,583 1,518 Interest and dividends on investment securities: Taxable 5,580 4,256 Tax-exempt 3,461 3,361 Dividend and other interest income 625 807 Deposits in other banks 767 288 TOTAL INTEREST AND DIVIDEND INCOME 88,018 81,743 INTEREST EXPENSE Deposits 24,115 22,402 Short-term borrowings 1,103 5,741 Long-term borrowings 2,201 3,135 TOTAL INTEREST EXPENSE 27,419 31,278 NET INTEREST INCOME 60,599 50,465 PROVISION FOR CREDIT LOSSES 839 837 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 59,760 49,628 NON-INTEREST INCOME Service charges and fees 2,968 2,732 Interchange fees 2,641 2,640 Gain on sale of loans 503 413 Earnings on bank-owned life insurance 925 928 Brokerage 938 807 Trust 1,111 943 Gains on marketable equity securities 56 60 Realized losses on available-for-sale debt securities, net ( 422 ) ( 85 ) Other non-interest income 1,643 1,937 TOTAL NON-INTEREST INCOME 10,363 10,375 NON-INTEREST EXPENSE Salaries and employee benefits 21,720 19,167 Occupancy 2,623 2,459 Furniture and equipment 1,704 1,665 Pennsylvania shares tax 1,239 941 Professional fees 1,939 1,522 Director's fees 695 618 Federal deposit insurance 870 820 Data processing and telecommunications 3,645 3,595 Automated teller machine and interchange 779 671 Merger-related expenses — 241 Amortization of intangibles 2,023 2,202 Other non-interest expense 3,783 3,761 TOTAL NON-INTEREST EXPENSE 41,020 37,662 INCOME BEFORE INCOME TAX PROVISION 29,103 22,341 INCOME TAX PROVISION 4,878 3,318 NET INCOME $ 24,225 $ 19,023 EARNINGS PER SHARE - BASIC AND DILUTED $ 6.85 $ 5.33 WEIGHTED AVERAGE SHARES OUTSTANDING 3,534,435 3,568,145 See accompanying notes to the consolidated financial statements.
Muncy Columbia Financial Corporation Consolidated Statements of Comprehensive Income For the Years Ended December 31, (In Thousands) 2025 2024 Net Income $ 24,225 $ 19,023 Other comprehensive income: Unrealized holding gains on available-for-sale debt securities 12,050 1,360 Tax effect ( 2,530 ) ( 287 ) Net realized losses included in net income 422 85 Tax effect ( 89 ) ( 18 ) Other comprehensive income, net 9,853 1,140 Comprehensive income $ 34,078 $ 20,163 See accompanying notes to the consolidated financial statements.
Muncy Columbia Financial Corporation Consolidated Statements of Changes in Stockholders' Equity Accumulated Common Additional Other Total Stock Paid-In Retained Comprehensive Treasury Stockholders' (In Thousands Except Share and Per Share Data) Shares Amount Capital Earnings Loss Stock Equity Balance, December 31, 2024 3,841,438 $ 4,802 $ 83,543 $ 103,268 $ ( 13,896 ) $ ( 11,307 ) $ 166,410 Net income — — — 24,225 — — 24,225 Other comprehensive income — — — — 9,853 — 9,853 Common stock issuance under employee stock purchase plan 4,041 5 158 — — — 163 Recognition of employee stock purchase plan expense — — 19 — — — 19 Cash dividends ($ 2.30 per share) — — — ( 8,129 ) — — ( 8,129 ) Balance, December 31, 2025 3,845,479 $ 4,807 $ 83,720 $ 119,364 $ ( 4,043 ) $ ( 11,307 ) $ 192,541 Balance, December 31, 2023 3,834,976 $ 4,794 $ 83,343 $ 90,514 $ ( 15,036 ) $ ( 9,790 ) $ 153,825 Net income — — — 19,023 — — 19,023 Other comprehensive income — — — — 1,140 — 1,140 Common stock issuance under employee stock purchase plan 6,462 8 179 — — — 187 Recognition of employee stock purchase plan expense — — 21 — — — 21 Purchase of treasury stock ( 44,025 shares) — — — — — ( 1,517 ) ( 1,517 ) Cash dividends ($ 1.76 per share) — — — ( 6,269 ) — — ( 6,269 ) Balance, December 31, 2024 3,841,438 $ 4,802 $ 83,543 $ 103,268 $ ( 13,896 ) $ ( 11,307 ) $ 166,410 See accompanying notes to the consolidated financial statements.
Muncy Columbia Financial Corporation Consolidated Statements of Cash Flows For the Years Ended December 31, (In Thousands) 2025 2024 OPERATING ACTIVITIES Net Income $ 24,225 $ 19,023 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 839 837 Depreciation and amortization of premises and equipment 1,498 1,515 Accretion of loan fair value adjustments, net ( 9,601 ) ( 10,685 ) Amortization of deposit fair value adjustments, net 276 1,185 Gains on marketable equity securities ( 56 ) ( 60 ) Realized losses on available-for-sale debt securities, net 422 85 Accretion of investment securities, net ( 1,390 ) ( 719 ) Losses on disposal of premises and equipment, net 137 — Gain (loss) on sale of foreclosed assets held for sale, net ( 10 ) 129 Deferred income taxes 1,401 2,317 Gain on sale of loans ( 503 ) ( 413 ) Earnings on bank-owned life insurance ( 925 ) ( 928 ) Proceeds from sale of mortgage loans 22,919 16,219 Originations of mortgage loans held for resale ( 21,572 ) ( 17,131 ) Amortization of intangibles 2,023 2,202 Amortization of investment in limited partnerships 746 736 Gain on settlement of bank-owned life insurance claims ( 119 ) ( 66 ) Decrease in accrued interest receivable and other assets 1,033 1,476 Increase in accrued interest payable and other liabilities 1,672 890 Other, net 272 288 Net cash provided by operating activities 23,287 16,900 INVESTING ACTIVITIES Available-for-sale debt securities: Purchases ( 84,604 ) ( 14,924 ) Proceeds from sales 29,574 51,734 Proceeds from paydowns, calls and maturities 64,473 55,323 Proceeds from maturities of interest-bearing time deposits — 989 Purchase of bank-owned life insurance ( 47 ) ( 44 ) Proceeds from settlement of bank-owned life insurance claims 304 — Proceeds from redemption of restricted investment in bank stocks 4,699 10,386 Purchase of restricted investment in bank stocks ( 3,016 ) ( 7,087 ) Net increase in loans ( 43,101 ) ( 47,381 ) Proceeds from sale of foreclosed assets held for sale 80 248 Acquisition of customer relationship intangibles ( 18 ) ( 354 ) Acquisition of premises and equipment ( 1,395 ) ( 407 ) Net cash (used for) provided by investing activities ( 33,051 ) 48,483 FINANCING ACTIVITIES Net increase in deposits 120,047 140,575 Net decrease in short-term borrowings ( 55,933 ) ( 184,144 ) Repayment of long-term borrowings ( 15,224 ) ( 15,212 ) Purchase of treasury stock — ( 1,517 ) Proceeds from issuance of common stock 163 187 Cash dividends paid ( 8,129 ) ( 6,269 ) Net cash provided by (used for) financing activities 40,924 ( 66,380 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 31,160 ( 997 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,380 18,377 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 48,540 $ 17,380 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Interest paid $ 27,632 $ 31,779 Income taxes paid 1,875 — Loans transferred to foreclosed assets held for sale 320 277 Bank-owned life insurance death benefit receivable — 294 See accompanying notes to the consolidated financial statements.
Material estimates that are particularly susceptible to significant changes include the allowance for credit losses, fair values of available-for-sale debt securities based on estimates from independent valuation services or from brokers and goodwill and other intangible assets.
The Corporation does not hold any held-to-maturity or trading securities as of December 31, 2025 and 2024.
Accrued interest receivable on available-for-sale debt securities totaled $ 1,198,000 and $ 1,160,000 at December 31, 2025 and 2024, respectively, and is included within accrued interest receivable on the Consolidated Balance Sheets.
Restricted Investment in Bank Stocks Restricted investment in bank stocks represent required investments in the common stock of correspondent banks and consists of common stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) of $ 5,312,000 and $ 6,995,000 at December 31, 2025 and 2024, respectively, and other correspondent banks of $ 100,000 at both December 31, 2025 and 2024.
The Bank evaluated its holding of restricted stock and noted no credit loss at December 31, 2025 and 2024.
The Bank has elected to exclude accrued interest receivable from the measurement of its ACL totaling $ 3,865,000 and $ 3,690,000 at December 31, 2025 and 2024, respectively.
No impairment losses on mortgage servicing rights were recorded for the years ended December 31, 2025 and 2024.
Total loans serviced for the benefit of others amounted to $ 238,435,000 and $ 245,517,000 at December 31, 2025 and 2024, respectively, and are not included in the Consolidated Balance Sheets.
Net servicing fees totaled $ 371,000 and $ 441,000 for the years ended December 31, 2025 and 2024, respectively.
The Corporation has recorded net goodwill of $ 25,609 ,000 at both December 31, 2025 and 2024, related to the 2023 acquisition of Muncy Bank Financial, Inc. and its subsidiary, The Muncy Bank & Trust Company, and the 2008 acquisition of Columbia Financial Corporation and its subsidiary, First Columbia Bank & Trust Co.
Based upon its evaluation, management determined there was no impairment of goodwill during 2025 or 2024.
These intangibles are being amortized on a sum of the years digits method over 10 years and had a net carrying value of $ 8,042,000 and $ 10,047,000 as of December 31, 2025 and 2024, respectively.
Amortization of the Corporation’s other intangible assets amounted to $ 2,023 ,000 and $ 2,202 ,000 for the years ended December 31, 2025 and 2024, respectively.
The estimated amortization expense of the other intangible assets over their remaining life is as follows: (In Thousands): Core Deposit Intangible Customer Relationship Intangible Total 2026 $ 1,738 $ 58 $ 1,796 2027 1,519 52 1,571 2028 1,299 45 1,344 2029 1,080 38 1,118 2030 860 31 891 Thereafter 1,263 59 1,322 Total $ 7,759 $ 283 $ 8,042 Bank-Owned Life Insurance The Corporation has purchased life insurance policies on certain officers and directors.
Investments in Limited Partnerships The Corporation is a limited partner in six partnerships at December 31, 2025 that provide low income housing in the Corporation’s geographic market area.
The amount of tax credits allocated to the Corporation was $ 840,000 and the amortization of the investments in limited partnerships was $ 746,000 in both 2025 and 2024.
The carrying value of the Corporation’s investments in limited partnerships was $ 4,346 ,000 and $ 5,092 ,000 at December 31, 2025 and 2024, respectively.
With limited exceptions, the Corporation is no longer subject to examination by Federal or State taxing authorities for years prior to 2022.
At December 31, 2025 and December 31, 2024 the Corporation did not have any unrecognized tax benefits.
At December 31, 2025 and December 31, 2024, the Corporation does not have any amounts accrued for interest and/or penalties.
Advertising expenses for the years ended December 31, 2025 and 2024 were approximately $ 747,000 and $ 715,000 , respectively.
Reclassifications Certain amounts in the consolidated financial statements of the prior years have been reclassified to conform to presentations used in the 2025 consolidated financial statements.
Adoption of New Accounting Standards In March 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction.
Recently Issued But Not Yet Effective Accounting Standards In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures , which requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses.
The Corporation is currently evaluating the impact the new guidance will have on relevant disclosures.
In November 2025, the FASB issued ASU 2025-08, Financial Instruments – Credit Losses (Topic 326) : Purchased Loans , which amends the guidance in ASC 326 on the accounting for certain purchased loans.
Under the ASU, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (“purchased seasoned loans”) by recognizing them at their purchase price plus an allowance for expected credit losses (i.e., the so-called gross-up approach).
The ASU’s amendments align the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination (“PCD assets”).
Although the ASU expands the application of the gross-up approach, it does not amend the measurement, presentation, or disclosure requirements in ASC 326.
The ASU’s guidance is effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods, and entities must apply it prospectively.
To the extent the Corporation purchases loans after the effective date of this ASU, this new guidance would apply which would eliminate the day 1 ACL on non-PCD loans being recorded through the provision for credit losses within the Corporation’s Consolidated Statements of Income. 2.
ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in accumulated other comprehensive loss by component, net of the tax, for the years ended December 31, 2025 and 2024: (In Thousands) Unrealized Loss on Available-for-Sale Debt Securities (a) Balance, December 31, 2023 $ ( 15,036 ) Other comprehensive income before reclassifications, net of tax 1,073 Amounts reclassified from accumulated other comprehensive loss, net of tax 67 Net change in accumulated other comprehensive loss 1,140 Balance, December 31, 2024 ( 13,896 ) Other comprehensive income before reclassifications, net of tax 9,520 Amounts reclassified from accumulated other comprehensive loss, net of tax 333 Net change in accumulated other comprehensive loss 9,853 Balance, December 31, 2025 $ ( 4,043 ) (a) All amounts are net of tax.

and 130 more.

Gone since FY2024

At December 31, 2024, our cumulative gap positions were within the internal risk management guidelines.
The following table illustrates the simulated impact of parallel and instantaneous interest rate shocks of +100, +200, +300, -100, -200, and -300 basis points on net interest income and the change in economic value over a one-year time horizon from the December 31, 2024 levels: Rates +100 Rates +200 Rates +300 Rates -100 Rates -200 Rates -300 Simulation Results Policy Limit Simulation Results Policy Limit Simulation Results Policy Limit Simulation Results Policy Limit Simulation Results Policy Limit Simulation Results Policy Limit Earnings at risk: Percent change in net interest income 6.66% -10.00% 0.46% -15.00% -6.07% -20.00% 16.19% -10.00% 18.41% -15.00% 20.51% -20.00% Economic value at risk: Percent change in economic value of equity -6.96% -15.00% -15.14% -25.00% -24.11% -30.00% 3.65% -15.00% 4.95% -25.00% 4.95% -30.00% Model results from the simulation at December 31, 2024 indicated that the Bank was projected to see an increase in net interest income over a one-year horizon in any of the rate shock scenarios, with the exception of the +300 scenario, which showed a 6.07% decrease.
Financial Statements and Supplementary Data Muncy Columbia Financial Corporation Consolidated Balance Sheets December 31, (In Thousands, Except Share and Per Share Data) 2024 2023 ASSETS Cash and due from banks $ 11,200 $ 14,614 Interest-bearing deposits in other banks 6,180 3,763 Total cash and cash equivalents 17,380 18,377 Interest-bearing time deposits — Available-for-sale debt securities, at fair value 323,248 413,302 Marketable equity securities, at fair value 1,355 1,295 Restricted investment in bank stocks, at cost 7,095 10,394 Loans held for sale 1,691 Loans receivable 1,125,937 1,068,429 Allowance for credit losses ( 9,858 ) ( 9,302 ) Loans, net 1,116,079 1,059,127 Premises and equipment, net 26,484 27,569 Foreclosed assets held for sale Accrued interest receivable 4,850 5,362 Bank-owned life insurance 40,953 40,209 Investment in limited partnerships 5,092 5,828 Deferred tax asset, net 10,012 12,634 Goodwill 25,609 25,609 Other intangible assets, net 10,047 11,895 Other assets 5,993 6,663 TOTAL ASSETS $ 1,595,958 $ 1,639,779 LIABILITIES Interest-bearing deposits $ 1,032,729 $ 884,654 Noninterest-bearing deposits 259,700 266,015 Total deposits 1,292,429 1,150,669 Short-term borrowings 68,388 252,532 Long-term borrowings 55,536 70,448 Accrued interest payable 1,857 2,358 Other liabilities 11,338 9,947 TOTAL LIABILITIES 1,429,548 1,485,954 STOCKHOLDERS’ EQUITY Common stock, par value $ 1.25 per share; 15,000,000 shares authorized; issued 3,841,438 and outstanding 3,532,713 at December 31, 2024; issued 3,834,976 and outstanding 3,570,276 at December 31, 2023; 4,802 4,794 Additional paid-in capital 83,543 83,343 Retained earnings 103,268 90,514 Accumulated other comprehensive loss ( 13,896 ) ( 15,036 ) Treasury stock, at cost; 308,725 shares at December 31, 2024 and 264,700 shares at December 31, 2023 ( 11,307 ) ( 9,790 ) TOTAL STOCKHOLDERS’ EQUITY 166,410 153,825 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,595,958 $ 1,639,779 See accompanying notes to the consolidated financial statements.
Muncy Columbia Financial Corporation Consolidated Statements of Income For the Years Ended December 31, (In Thousands, Except Share and Per Share Data) 2024 2023 INTEREST AND DIVIDEND INCOME Interest and fees on loans: Taxable $ 71,513 $ 30,885 Tax-exempt 1,518 Interest and dividends on investment securities: Taxable 4,256 5,030 Tax-exempt 3,361 Dividend and other interest income Federal funds sold — Deposits in other banks TOTAL INTEREST AND DIVIDEND INCOME 81,743 38,347 INTEREST EXPENSE Deposits 22,402 4,964 Short-term borrowings 5,741 9,119 Long-term borrowings 3,135 1,002 TOTAL INTEREST EXPENSE 31,278 15,085 NET INTEREST INCOME 50,465 23,262 Provision for credit losses - loans 2,554 Recovery of credit losses - off balance sheet credit exposures ( 10 ) ( 33 ) TOTAL PROVISION FOR CREDIT LOSSES 2,521 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 49,628 20,741 NON-INTEREST INCOME Service charges and fees 2,732 2,094 Interchange fees 2,640 1,839 Gain on sale of loans Earnings on bank-owned life insurance Brokerage Trust Gains (losses) on marketable equity securities ( 119 ) Realized losses on available-for-sale debt securities, net ( 85 ) — Other non-interest income 1,937 1,007 TOTAL NON-INTEREST INCOME 10,375 7,121 NON-INTEREST EXPENSE Salaries and employee benefits 19,027 11,618 Occupancy 2,459 1,391 Furniture and equipment 1,665 1,192 Pennsylvania shares tax Professional fees 1,522 1,280 Director’s fees Federal deposit insurance Data processing and telecommunications 3,595 1,559 Automated teller machine and interchange Merger-related expenses 3,028 Amortization of intangibles 2,202 Other non-interest expense 3,901 2,350 TOTAL NON-INTEREST EXPENSE 37,662 24,110 INCOME BEFORE INCOME TAX PROVISION 22,341 3,752 INCOME TAX PROVISION 3,318 NET INCOME $ 19,023 $ 3,387 EARNINGS PER SHARE - BASIC AND DILUTED $ 5.33 $ 1.49 WEIGHTED AVERAGE SHARES OUTSTANDING 3,568,145 2,279,808 See accompanying notes to the consolidated financial statements.
Muncy Columbia Financial Corporation Consolidated Statements of Comprehensive Income For the Years Ended December 31, (In Thousands) 2024 2023 Net Income $ 19,023 $ 3,387 Other comprehensive income: Unrealized holding gains on available-for-sale debt securities 1,360 15,629 Tax effect ( 287 ) ( 3,281 ) Net realized losses included in net income — Tax effect ( 18 ) — Other comprehensive income, net 1,140 12,348 Comprehensive income $ 20,163 $ 15,735 See accompanying notes to the consolidated financial statements.
Muncy Columbia Financial Corporation Consolidated Statements of Changes in Stockholders’ Equity Accumulated (In Thousands Except Share and Per Common Stock Additional Paid-In Retained Other Comprehensive Treasury Total Stockholders’ Share Data) Shares Amount Capital Earnings Loss Stock Equity Balance, December 31, 2023 3,834,976 $ 4,794 $ 83,343 $ 90,514 $ ( 15,036 ) $ ( 9,790 ) $ 153,825 Net income — — — 19,023 — — 19,023 Other comprehensive income — — — — 1,140 — 1,140 Common stock issuance under employee stock purchase plan 6,462 — — — Recognition of employee stock purchase plan expense — — — — — Purchase of treasury stock (44,025 shares) — — — — — ( 1,517 ) ( 1,517 ) Cash dividends ($ 1.76 per share) — — — ( 6,269 ) — — ( 6,269 ) Balance, December 31, 2024 3,841,438 $ 4,802 $ 83,543 $ 103,268 $ ( 13,896 ) $ ( 11,307 ) $ 166,410 Balance, December 31, 2022 2,343,835 $ 2,930 $ 30,030 $ 90,156 $ ( 27,384 ) $ ( 9,790 ) $ 85,942 Net income — — — 3,387 — — 3,387 Other comprehensive income — — — — 12,348 — 12,348 Common stock issuance under employee stock purchase plan 2,181 — — — Recognition of employee stock purchase plan expense — — — — — Cash dividends ($ 1.71 per share) — — — ( 3,557 ) — — ( 3,557 ) Shares issued for acquisition of Muncy Bank Financial, Inc. 1,488,960 1,861 53,231 — — — 55,092 Cumulative effect of adoption of ASU 2016-13 — — — — — Balance, December 31, 2023 3,834,976 $ 4,794 $ 83,343 $ 90,514 $ ( 15,036 ) $ ( 9,790 ) $ 153,825 See accompanying notes to the consolidated financial statements.
Muncy Columbia Financial Corporation Consolidated Statements of Cash Flows For the Years Ended December 31, (In Thousands) 2024 2023 OPERATING ACTIVITIES Net Income $ 19,023 $ 3,387 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 2,521 Depreciation and amortization of premises and equipment 1,515 Accretion of loan fair value adjustments, net ( 10,685 ) ( 948 ) Amortization of deposit fair value adjustments, net 1,185 (Gains) losses on marketable equity securities ( 60 ) Realized losses on available-for-sale debt securities, net — (Accretion) amortization of investment securities, net ( 719 ) Losses on sale of foreclosed assets held for sale, net Deferred income taxes 2,317 ( 200 ) Gain on sale of loans ( 413 ) ( 276 ) Proceeds from sale of mortgage loans 16,219 13,286 Originations of mortgage loans held for resale ( 17,131 ) ( 12,395 ) Amortization of intangibles 2,202 Amortization of investment in limited partnerships Decrease (increase) in accrued interest receivable ( 869 ) Earnings on bank-owned life insurance ( 928 ) ( 503 ) Gain on settlement of bank-owned life insurance claims ( 66 ) — (Decrease) increase in accrued interest payable ( 501 ) Other, net 2,643 Net cash provided by operating activities 16,900 7,079 INVESTING ACTIVITIES Net cash and cash equivalents provided by business combination — 7,845 Available-for-sale debt securities: Purchases ( 14,924 ) ( 789 ) Proceeds from sales 51,734 — Proceeds from paydowns, calls and maturities 55,323 36,847 Proceeds from maturities of interest-bearing time deposits — Purchase of bank-owned life insurance ( 44 ) ( 45 ) Proceeds from redemption of restricted investment in bank stocks 10,386 7,097 Purchase of restricted investment in bank stocks ( 7,087 ) ( 6,098 ) Net increase in loans ( 47,381 ) ( 32,420 ) Proceeds from sale of foreclosed assets held for sale — Purchase of investment in limited partnership — ( 2,366 ) Acquisition of customer relationship intangibles ( 354 ) — Acquisition of premises and equipment ( 407 ) ( 968 ) Net cash provided by investing activities 48,483 9,103 FINANCING ACTIVITIES Net increase (decrease) in deposits 140,575 ( 53,125 ) Net (decrease) increase in short-term borrowings ( 184,144 ) 20,720 Proceeds from long-term borrowings — 25,000 Repayment of long-term borrowings ( 15,212 ) ( 4 ) Purchase of treasury stock ( 1,517 ) — Proceeds from issuance of common stock Cash dividends paid ( 6,269 ) ( 3,557 ) Net cash used for financing activities ( 66,380 ) ( 10,889 ) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 997 ) 5,293 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 18,377 13,084 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 17,380 $ 18,377 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Interest paid $ 31,779 $ 12,914 Income taxes paid — Loans transferred to foreclosed assets held for sale Loans held for sale transferred to loans — 3,587 Bank-owned life insurance death benefit receivable — See Note 2 for additional information on the noncash effects of business combination See accompanying notes to the consolidated financial statements.
As discussed further in Note 2, in 2023 the Corporation expanded its operations by acquiring Muncy Bank Financial, Inc.
Material estimates that are particularly susceptible to significant changes include the allowance for credit losses, fair values of available-for-sale debt securities based on estimates from independent valuation services or from brokers and the fair values of assets acquired and liabilities assumed in business combinations.
Interest-Bearing Time Deposits Interest-bearing time deposits have original maturities in excess of one year and are carried at cost.
The Corporation does not hold any held-to-maturity or trading securities as of December 31, 2024 and 2023.
Accrued interest receivable on available-for-sale debt securities totaled $ 1,160,000 and $ 1,644,000 at December 31, 2024 and 2023, respectively, and is included within accrued interest receivable on the Consolidated Balance Sheets.
Restricted Investment in Bank Stocks Restricted investment in bank stocks represent required investments in the common stock of correspondent banks and consists of common stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) of $ 6,995,000 and $ 10,294,000 at December 31, 2024 and 2023, respectively, and other correspondent banks of $ 100,000 at both December 31, 2024 and 2023.
The Bank evaluated its holding of restricted stock and noted no credit loss at December 31, 2024 and 2023.
The Bank has elected to exclude accrued interest receivable from the measurement of its ACL totaling $ 3,690,000 and $ 3,714,000 at December 31, 2024 and 2023, respectively.
No impairment losses on mortgage servicing rights were recorded for the years ended December 31, 2024 and 2023.
Total loans serviced for the benefit of others amounted to $ 245,517,000 and $ 256,993,000 at December 31, 2024 and 2023, respectively, and are not included in the Consolidated Balance Sheets.
Net servicing fees totaled $ 441,000 and $ 313,000 for the years ended December 31, 2024 and 2023, respectively.
The Corporation has recorded net goodwill of $ 25,609,000 at both December 31, 2024 and 2023, related to the 2023 acquisition of Muncy Bank Financial, Inc. and its subsidiary, The Muncy Bank & Trust Company, and the 2008 acquisition of Columbia Financial Corporation and its subsidiary, First Columbia Bank & Trust Co.
Based upon its evaluation, management determined there was no impairment of goodwill during 2024 or 2023.
These intangibles are being amortized on a sum of the years digits method over 10 years and had a net carrying value of $ 10,047,000 and $ 11,895,000 as of December 31, 2024 and 2023, respectively.
Amortization of the Corporation’s other intangible assets amounted to $ 2,202,000 and $ 183,000 for the years ended December 31, 2024 and 2023, respectively.
The estimated amortization expense of the other intangible assets over their remaining life is as follows: (In Thousands): Core Deposit Intangible Customer Relationship Intangible Total 2025 $ 1,958 $ $ 2,020 2026 1,738 1,793 2027 1,519 1,568 2028 1,299 1,342 2029 1,080 1,116 Thereafter 2,123 2,208 Total $ 9,717 $ $ 10,047 Bank-Owned Life Insurance The Corporation has purchased life insurance policies on certain officers and directors.
Investments in Limited Partnerships The Corporation is a limited partner in six partnerships at December 31, 2024 that provide low income housing in the Corporation’s geographic market area.
The amount of tax credits allocated to the Corporation was $ 840,000 and the amortization of the investments in limited partnerships was $ 746,000 in 2024.
The amount of tax credits allocated to the Corporation was $ 484,000 and the amortization of the investments in limited partnerships was $ 346,000 in 2023.
The carrying value of the Corporation’s investments in limited partnerships was $ 5,092,000 and $ 5,828,000 at December 31, 2024 and 2023, respectively.
With limited exceptions, the Corporation is no longer subject to examination by Federal or State taxing authorities for years prior to 2021.
At December 31, 2024 and December 31, 2023 the Corporation did not have any unrecognized tax benefits.
At December 31, 2024 and December 31, 2023, the Corporation does not have any amounts accrued for interest and/or penalties.
Advertising expenses for the years ended December 31, 2024 and 2023 were approximately $ 715,000 and $ 322,000 , respectively.
Reclassifications Certain amounts in the consolidated financial statements of the prior years have been reclassified to conform to presentations used in the 2024 consolidated financial statements.
Adoption of New Accounting Standards In June 2016, the FASB issued ASU No. 2016-13 , “Financial Instruments – Credit Losses (Topics 326): Measurement of Credit Losses on Financial Instruments” and subsequent related updates.
This ASU replaces the incurred loss methodology for recognizing credit losses and requires businesses and other organizations to measure the current expected credit losses (CECL) on financial assets measured at amortized cost, including loans and held-to-maturity securities, net investment in leases, off-balance sheet credit exposures such as unfunded commitments, and other financial instruments.
In addition, ASC 326 requires credit losses on available-for-sale debt securities to be presented as an allowance rather than as a write-down when management does not intend to sell or believes that it is not more likely than not they will be required to sell.
This guidance became effective on January 1, 2023 for the Corporation.
The Corporation adopted this guidance, and subsequent related updates, using the modified retrospective approach for all financial assets measured at amortized cost, including loans, available-for-sale debt securities and unfunded commitments.
On January 1, 2023, the Corporation recorded a cumulative effect increase to retained earnings of $ 528,000 , net of tax, of which $ 490,000 related to loans, $ 38,000 related to unfunded commitments, and $ 0 related to available-for-sale securities.
The Corporation has no held-to-maturity securities.
The Corporation adopted the provisions of ASC 326 related to presenting other-than-temporary impairment on available-for-sale debt securities prior to January 1, 2023 using the prospective transition approach, though no such changes had been recorded on the securities held by the Corporation as of the date of adoption.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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