MUNCY COLUMBIA FINANCIAL Corp (CCFN)·Q2 2025 Earnings Summary

Executive Summary

• Solid quarter with EPS up to $1.63 (+32% y/y, +32% q/q) on expanding NIM (4.04%, +61 bps y/y, +21 bps q/q) and lower interest expense; net income rose to $5.77M (+22% y/y, +33% q/q) .
• Deposits grew and mix shifted toward core accounts as the bank continued migrating customer repurchase agreements into core deposits; short-term borrowings fell sharply and liquidity positioning improved .
• Operating costs normalized versus Q1 as one-time executive retirement costs rolled off, but noninterest expense remained up y/y on higher health insurance and data processing charges (y/y +$662k), partially offset by stronger NII .
• Asset quality softened: NPAs increased to $13.84M (0.86% of assets) from 0.77% in Q1 and 0.49% a year ago; ACL/loans remained 0.88% . Catalysts: sustained NIM expansion and continued deposit mix shift; watch list: rising NPAs and security losses .

What Went Well and What Went Wrong

• What Went Well

  • Margin expansion: Fully tax-equivalent NIM reached 4.04% (vs 3.83% in Q1 and 3.43% in Q2’24), reflecting both higher asset yields and lower y/y interest expense; ROAA rose to 1.44% and ROAE to 13.33% .
  • Balance sheet optimization: Total deposits rose $68.6M YTD while short-term borrowings declined $50.3M as the bank continued repositioning customer repurchase agreements into core deposits; management expects completion later in 2025 .
  • Shareholder returns: Q2 dividend declared per share was $0.95 (includes $0.50 special); Q3 dividend maintained at $0.45, taking YTD declared dividends to $1.85/share by Aug-12 . CEO on the special dividend (Apr-22): “We are pleased to recognize and reward our shareholders… We reported record earnings in 2024…” .

• What Went Wrong

  • Asset quality: Non-performing assets increased to $13.84M (0.86% of assets) from $12.30M (0.77%) in Q1 and $7.74M (0.49%) in Q2’24; nonaccrual loans rose to $13.77M .
  • Securities/OCI headwind: Realized losses on AFS debt securities of $0.43M weighed on noninterest income; AOCI remained a drag (accumulated other comprehensive loss -$9.29M at 6/30/25) .
  • Expense pressures: Noninterest expense increased y/y on health insurance (+$397k y/y in Q2) and data processing (+$174k y/y), partly offsetting NII strength .

Financial Results

Values retrieved from S&P Global.*

• Segment breakdown: Not applicable (single-bank franchise).
• KPIs | KPI | Q2 2024 | Q1 2025 | Q2 2025 | |---|---|---|---| | Loans, net + HFS ($M) | $1,092.06 | $1,135.98 | $1,149.62 | | Total Assets ($M) | $1,592.30 | $1,602.34 | $1,616.22 | | Core Deposits ($M) | $926.82 | $979.62 | $994.59 | | NPAs ($M) | $7.74 | $12.30 | $13.84 | | NPAs / Assets (%) | 0.49% | 0.77% | 0.86% | | ACL / Loans (%) | 0.85% | 0.87% | 0.88% | | CET1 ratio (Journey Bank) | 14.06% | 15.13% | 15.35% | | Leverage ratio (Journey Bank) | 8.68% | 9.30% | 9.43% | | Book Value/Share ($) | $44.11 | $48.50 | $49.87 | | Dividend Declared/Share ($) | $0.44 | $0.45 | $0.95 |

Guidance Changes

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was filed; themes drawn from company 8-Ks/press releases.

Management Commentary

• “We are pleased to recognize and reward our shareholders with this special one-time cash dividend. We reported record earnings in 2024 and remain committed to creating shareholder value.” — Lance O. Diehl, President & CEO (Apr-22 press release) .
• Shareholder letter emphasized strong 2024 performance, a “strong first quarter of 2025,” and office consolidation to “drive synergies” in execution (May-28) .
• Q2 release highlighted deposit growth and migration of customer repurchase agreements to core deposits, expected to complete later in 2025, to optimize long-term liquidity and balance sheet management .

Q&A Highlights

No Q2 2025 earnings call transcript was available in filings; therefore no formal Q&A to summarize. Investor focus is likely on:

• Sustainability of NIM at ~4%+ amid rate path uncertainty .
• Asset quality trajectory given higher NPAs and nonaccruals .
• Expense normalization after one-time items and health insurance/data processing headwinds .
• Pace of deposit mix migration and implications for funding costs and liquidity .

Estimates Context

• S&P Global consensus coverage: No quarterly EPS or revenue consensus means were available for Q2 2025; therefore, no beat/miss versus Street can be determined.*
• S&P Global shows actual “Revenue” of $16.79M in Q2 2025 (Q1 2025: $16.20M), broadly consistent with NII + noninterest income reported by the company.* .
  Values retrieved from S&P Global.*

Key Takeaways for Investors

• Margin-led earnings: NIM expansion to 4.04% and lower y/y funding costs drove EPS strength; continued execution on funding mix is a key upside lever .
• Watch credit: NPAs/Assets moved to 0.86% with rising nonaccruals; monitor provision trajectory (Q2 provision $0.25M vs $0.11M in Q1) .
• Expense watch: Q2 expenses normalized q/q post Q1 one-time items but remain elevated y/y on health insurance and tech costs; operating leverage depends on revenue momentum vs cost creep .
• Capital and returns: Book value rose to $49.87; leverage and CET1 ratios remain strong; dividend cadence remains intact (special paid in Q2) .
• Liquidity strategy: Ongoing shift from repurchase agreements to core deposits reduces reliance on short-term borrowings, supporting NIM and balance sheet resilience .
• Setup: With no Street coverage, near-term stock moves could hinge on internal catalysts (NIM sustainability, credit outcomes) and dividend policy rather than estimate revisions.

References: Q2 2025 8-K earnings press release and exhibits ; Q1 2025 8-K (special dividend + earnings) ; Q4 2024 8-K ; Dividend press releases (May 13, 2025; Aug 12, 2025) ; Shareholder letter (May 28, 2025) .