Business/Financial Results (Form 8-K)

Press Release - For Immediate Release

October 19, 2026

Muncy Columbia Financial Corporation Announces Third Quarter 2026 Earnings

Bloomsburg, PA - Muncy Columbia Financial Corporation ("Corporation") (OTCQX: CCFN), parent company of Journey Bank ("Bank"), has released its unaudited consolidated financial results for the third quarter of 2026.

Unaudited Financial Information

Net income, as reported under accounting principles generally accepted in the United States of America ("GAAP"), for the third quarter 2026 was $6,043,000, or $0.57 per share, compared to $6,719,000, or $0.63 per share, for the third quarter 2025. Net income, as reported under GAAP, for the nine months ended September 30, 2026 was $20,354,000, or $1.92 per share, compared to $16,832,000, or $1.59 per share for the same period in 2025. Return on average assets and return on average equity were 1.42% and 11.97%, respectively, for the third quarter 2026 as compared to 1.63% and 14.81%, respectively, for the third quarter 2025.

Net interest income of $17,633,000 for the third quarter 2026 increased $1,982,000 from the third quarter 2025 amount of $15,651,000, reflecting an increase in total interest and dividend income of $1,365,000 and a decrease of $617,000 in total interest expense. The fully-tax equivalent net interest margin was 4.54% for the third quarter 2026 as compared to 4.15% for the third quarter 2025.

For the third quarter 2026, a $942,000 provision for credit losses was recorded compared to a $479,000 provision for the third quarter 2025. The allowance for credit losses to total loans was 0.91% at September 30, 2026 and 0.85% at December 31, 2025.

Total non-interest income decreased $2,281,000 to $611,000 for the third quarter 2026, compared to the third quarter 2025 amount of $2,892,000. Realized losses on available-for-sale debt securities, net, totaled $2,404,000 for the third quarter 2026. No realized losses on available-for-sale debt securities were recognized during the third quarter 2025. During the third quarter 2026, the Corporation sold certain available-for-sale debt securities at a loss as part of a balance sheet repositioning strategy designed to improve the Corporation's net interest margin and enhance future earnings potential. The securities sold generally carried substantially lower contractual yields relative to the yields available on comparable securities at the time of reinvestment. The proceeds from the sales were reinvested in higher-yielding securities, which management expects will contribute to improved interest income and net interest margin in future periods, subject to changes in market interest rates, deposit costs, balance sheet composition, and other factors affecting the Corporation's net interest margin.

Total non-interest expense increased $70,000 from $9,978,000 for the third quarter 2025, to $10,048,000 for the third quarter 2026. Salaries and employee benefits expense of $5,417,000 for the third quarter 2026 increased $618,000 from $4,799,000 for the third quarter 2025. This increase was related to health insurance expenses associated with the Corporation's partially self-funded health insurance plan which were $422,000 higher in the third quarter 2026 than the third 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 professional fees of $164,000 due primarily to lower legal and consulting costs and a decrease in other non-interest expense of $351,000 due primarily to lower overall marketing and advertising costs comparing the third quarter 2026 to the third quarter 2025.

Total assets amounted to $1,688,153,000 at September 30, 2026, as compared to $1,673,199,000 at December 31, 2025. For the nine months ended September 30, 2026, cash and cash equivalents decreased $12,780,000 and loans receivable held for investment increased by $30,783,000. Total liabilities amounted to $1,495,117,000 at September 30, 2026, as compared to $1,480,658,000 at December 31, 2025. Total deposits increased $59,087,000 while short-term borrowings decreased $4,938,000 and long-term borrowings decreased $40,584,000 during the nine months ended September 30, 2026. During the second quarter 2026, the Corporation prepaid, in full, its outstanding long-term FHLB borrowings.

Total non-performing assets amounted to $11,272,000 or 0.67% of total assets at September 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 $10,325,000 at September 30, 2026.

Total stockholders' equity equated to a book value per share of $18.18 at September 30, 2026, as compared with $18.15 at December 31, 2025. For the third quarter 2026 total cash dividends of $0.155 per share were declared as compared to $0.150 for the same period of 2025. For the nine months ended September 30, 2026, total cash dividends of $0.797 per share were declared as compared to $0.617 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 nine months ended September 30, 2026 and 2025, respectively. The Corporation remains well capitalized, with an equity to assets ratio of 11.43% at September 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.