Muncy Columbia Financial Corporation Reports $4.3 Million Net Income for Q1 2025

Muncy Columbia Financial Corporation reported a net income of $4.3 million, or $1.23 per share, for the first quarter of 2025, reflecting a 7.7% increase from the $4.0 million, or $1.13 per share, recorded in the same period of 2024. The increase in profitability was primarily driven by a 16.2% rise in net interest income, which reached $13.9 million, up from $11.9 million a year earlier. This growth was attributed to higher interest income from loans and a decrease in interest expenses, which fell to $7.0 million from $8.0 million, largely due to reduced average borrowings.

Total assets for the corporation increased to $1.602 billion as of March 31, 2025, a slight rise of $6.4 million, or 0.4%, from $1.596 billion at the end of 2024. The growth in assets was primarily due to a $6.4 million increase in cash and cash equivalents and an $18.2 million rise in gross loans receivable, which reached $1.144 billion. However, available-for-sale debt securities decreased by $15.8 million during the same period. Total liabilities also saw a modest increase, rising to $1.431 billion, driven by a $46.2 million increase in deposits, while short-term and long-term borrowings decreased.

Operationally, Muncy Columbia Financial Corporation maintained a strong loan portfolio, with gross loans increasing by 1.6% from the previous quarter. The composition of the loan portfolio remained stable, with residential real estate loans making up 56.9% of total loans. The allowance for credit losses rose to $10.0 million, representing 0.87% of total loans, compared to $9.9 million or 0.88% at the end of 2024. The corporation's non-performing loans increased to $12.2 million, or 1.07% of total loans, up from $10.0 million, indicating a need for continued monitoring of credit quality.

Looking ahead, Muncy Columbia Financial Corporation expressed confidence in its financial position, citing strong organic growth in both loans and deposits. The corporation's management anticipates that it will continue to meet capital adequacy requirements and maintain a strong liquidity position. The outlook remains cautiously optimistic, with expectations of stable economic conditions in its primary market areas, which include Clinton, Columbia, Lycoming, Montour, and Northumberland counties in Pennsylvania. The corporation's strategic focus will remain on enhancing customer relationships and managing interest rate risk effectively.