Muncy Columbia Financial (CCFN 1.40%), a regional community banking company operating under the Journey Bank brand, reported its second quarter results on July 18, 2025. EPS was $1.63, up from $1.32 for Q2 2024, and net income rose 22.5% compared to Q2 2024. Net interest income (GAAP) improved sharply to $14.81 million. Despite no available analyst estimates for comparison, the quarter continued a trend of robust balance sheet growth but included rising credit loss provisions and non-performing assets. Overall, the period reflected solid performance in lending and deposit gathering, with ongoing work in merger integration and funding optimization.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS (GAAP) | $1.63 | $1.32 | 23.5% |
| Net Income (GAAP) | $5.77 million | $4.71 million | 22.5% |
| Net Interest Income | $14.81 million | $12.36 million | 19.8% |
| Non-Interest Income | $2.24 million | $2.42 million | (7.4%) |
| Non-Interest Expense | $9.86 million | $9.19 million | 7.3% |
| Return on Average Assets | 1.44% | 1.20% | 0.24 pp |
About the Business and Recent Focus Areas
Muncy Columbia Financial (CCFN 1.40%) operates as a community-focused bank through its Journey Bank branch network, serving Northcentral Pennsylvania. It provides a range of financial products and services for individuals, businesses, and local organizations, including deposits, mortgage and business lending, and trust and wealth management.
Recently, the focus has been on successfully integrating its 2023 merger between CCFNB Bancorp, Inc. and Muncy Bank Financial. The company’s key success factors remain capital adequacy, regulatory compliance, effective risk management, and the ability to generate organic growth through tailored community banking services.
Quarterly Performance: Earnings Drivers and Financial Trends
The quarter saw core lending and deposit franchise metrics advance meaningfully. Net interest income, which measures the difference between what the bank earns on loans and investments versus what it pays for customer deposits and borrowings, led performance with a 19.8% year-over-year increase compared to Q2 2024. The fully tax-equivalent net interest margin, a key measure of lending profitability, expanded to 4.04% from 3.43% in Q2 2024. Higher asset yields and lower interest expense—down $981,000 (GAAP) despite rate pressures—drove this improvement.
On the deposit side, balances grew by $68.6 million in the first half of 2025. The mix shift away from short-term borrowings into core customer deposits continued, as part of a long-term strategy to shore up funding. Loans, net and held for sale, rose to $1.15 billion (GAAP), marking 5% growth compared to Q2 2024. These trends indicate solid demand and the effectiveness of deposit-gathering initiatives.
Non-interest income, which includes revenue from fees, advisory, and investment operations, declined by 7.4% compared to Q2 2024. This was mainly due to $426,000 in realized losses on available-for-sale debt securities (GAAP)—there were no comparable losses in Q2 2024. Modest gains in brokerage and trust income were insufficient to offset these securities losses. Non-interest expenses (GAAP) climbed 7.2%, largely reflecting higher salaries and employee health insurance costs, along with ongoing technology and product investments. Notably, data processing and telecommunications expenses increased by $174,000 compared to Q2 2024 due to ongoing pricing increases and one-time charges in conjunction with the implementation of new products.
Non-performing assets rose to $13.8 million, up from $7.7 million for Q2 2024, and the provision for credit losses (GAAP) was set at $254,000 compared to $29,000 for Q2 2024. This increase in non-performing assets was attributable to a higher level of loans not accruing interest. The allowance for credit losses to total loans remained steady at 0.88% as of June 30, 2025, and December 31, 2024. Capital measures improved, with the equity to assets ratio up to 10.91% and regulatory capital ratios well above minimum requirements. Book value per share (GAAP) increased to $49.87 from $44.11 in Q2 2024, showing tangible growth for shareholders.
The bank paid a total dividend of $0.95 per share, more than doubling the prior-year payout of $0.44 per share, due to a special one-time cash dividend of $0.50 per share. This marks a significant boost in returns to shareholders and reflects the company’s strong capital position.
Looking Ahead: Strategy and Guidance
Management emphasized strategic priorities but did not issue any formal financial guidance for the coming quarter or full year. The team expects to finish its project of repositioning customer accounts from repurchase agreements, or “repos,” into core deposit accounts later in 2025. This move aims to further strengthen funding stability and improve long-term liquidity.
As the integration of merger operations progresses, investors should continue monitoring trends in asset quality—particularly non-performing loans—and non-interest income. Capital strength and liquidity remain high, providing stability as the focus shifts to completing organizational changes and sustaining growth in a competitive regional market.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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