Form 8-K/A - Current report: [Amend]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

(Amendment No. 1)

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

November 11, 2023

Date of Report (Date of earliest event reported)

MUNCY COLUMBIA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Pennsylvania	000-19028	23-2254643
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Ident. No.)

232 East Street, Bloomsburg, Pennsylvania 17815
(Address of principal executive offices) (Zip Code)

(570) 784-4400 Registrant’s telephone number, including area code

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
None		None		None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Explanatory Note

On November 11, 2023, CCFNB Bancorp, Inc. (“CCFNB”) completed its previously announced merger with Muncy Bank Financial, Inc. (“MBF”) pursuant to an Agreement and Plan of Merger, dated as of April 17, 2023, as amended June 21, 2023 (the “Merger Agreement”), by and between CCFNB and MBF. Under the terms of the Merger Agreement, (i) MBF merged with and into CCFNB, with CCFNB being the surviving entity, and (ii) MBF’s wholly-owned banking subsidiary, The Muncy Bank and Trust Company (“Muncy Bank”) merged with and into CCFNB’s wholly-owned banking subsidiary, First Columbia Bank & Trust Co. (“First Columbia Bank”), with First Columbia Bank being the surviving bank (the “Mergers”). In connection with the Mergers, CCFNB changed its name to Muncy Columbia Financial Corporation (“MCFC”), and First Columbia Bank changed its name to Journey Bank.

On November 16, 2023, MCFC filed a Current Report on Form 8-K reporting the completion of the Mergers (the “Original Report”). This Amendment No. 1 to the Original Report is being filed with the Securities and Exchange Commission (the “Commission”) solely to amend and supplement Item 9.01 of the Original Report, as described in Item 9.01 below. This Amendment No. 1 makes no other amendments to the Original Report.

Item 9.01

Financial Statements and Exhibits.

(a)

Financial Statements of Business Acquired

Pursuant to General Instruction B.3 of Form 8-K, the audited consolidated financial statements of MBF as of and for the years ended December 31, 2022 and 2021, including the independent auditor’s report, are not required to be filed again by this Current Report on Form 8-K because substantially the same information was previously filed in CCFNB’s Registration Statement on Form S-4 as originally filed with the Commission on June 29, 2023 ( File No. 333-273023) and as thereafter amended.

The unaudited consolidated financial statements MBF as of September 30, 2023 and December 31, 2022 and for for the nine-month periods ended September 30, 2023 and 2022 are filed herewith as Exhibit 99.1 and incorporated by reference into this Item 9.01(a).

	(b)	Pro-Forma Financial Information

The unaudited pro forma condensed consolidated combined financial information required by this Item 9.01(b) is filed herewith as Exhibit 99.2 and is incorporated by reference into this Item 9.01(b).

(d)

Exhibits

The following Exhibits are filed with this report on Form 8-K:

99.1 MBF’s unaudited consolidated financial statements for the nine-month periods ended September 30, 2023 and 2022

99.2 Unaudited Pro forma Condensed Consolidated Combined Financial Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MUNCY COLUMBIA FINANCIAL CORPORATION

Dated: January 24, 2024

	By:	/s/ Joseph K. O’Neill, Jr.
		Joseph K. O’Neill, Jr.
		Executive Vice President and Chief Financial Officer

MUNCY COLUMBIA FINANCIAL CORPORATION 8-K/A

EXHIBIT 99.1

MUNCY BANK FINANCIAL, INC.

MUNCY, PENNSYLVANIA

SEPTEMBER 30, 2023

MUNCY BANK FINANCIAL, INC.

CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SEPTEMBER 30, 2023

		Page Number
Financial Statements

	Consolidated Balance Sheet – September 30, 2023 (unaudited) and December 31, 2022	3

	Consolidated Statement of Income (unaudited)	4

	Consolidated Statement of Comprehensive Loss (unaudited)	5

	Consolidated Statement of Changes in Shareholders’ Equity (unaudited)	6

	Consolidated Statement of Cash Flows (unaudited)	7

Notes to Unaudited Consolidated Financial Statements		8–24

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MUNCY BANK FINANCIAL, INC.

CONSOLIDATED BALANCE SHEET

(In Thousands, Except Share and Per Share Data) (Unaudited)	September 30, 2023			December 31, 2022
ASSETS:
Cash and due from banks	$	4,930		$	4,928
Interest-bearing deposits in other financial institutions		2,068			1,496
Total cash and cash equivalents		6,998			6,424

Interest-bearing time deposits		989			989
Available-for-sale debt securities, at fair value		89,982			99,140
Marketable equity securities, at fair value		353			383
Restricted investment in bank stocks, at cost		5,245			3,346

Loans receivable		515,388			485,714
Allowance for credit losses		(5,153	)		(4,952	)
Loans, net		510,235			480,762

Premises and equipment, net		17,338			17,363
Accrued interest receivable		2,303			2,086
Bank-owned life insurance		17,752			14,339
Deferred tax asset, net		6,493			5,169
Other assets		2,777			2,604
TOTAL ASSETS	$	660,465		$	632,605

LIABILITIES:
Interest-bearing deposits	$	414,575		$	444,700
Noninterest-bearing deposits		106,881			106,913
Total deposits		521,456			551,613

Short-term borrowings		41,473			27,369
Long-term borrowings		46,401			—
Accrued interest payable		1,267			366
Other liabilities		5,986			5,752
TOTAL LIABILITIES		616,583			585,100

SHAREHOLDERS’ EQUITY:
Common stock, par value $0.4167 per share; 3,626,684 shares authorized; 1,793,475 shares issued; 1,608,358 shares outstanding at September 30, 2023 and December 31, 2022		747			747
Additional paid-in capital		9,297			9,297
Retained earnings		56,611			55,789
Accumulated other comprehensive loss		(18,791	)		(14,346	)
Treasury stock, at cost; 185,117 shares at September 30, 2023 and December 31, 2022		(3,982	)		(3,982	)
TOTAL SHAREHOLDERS’ EQUITY		43,882			47,505
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	660,465		$	632,605

See accompanying notes to the unaudited consolidated financial statements.

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MUNCY BANK FINANCIAL, INC.

CONSOLIDATED STATEMENT OF INCOME

	Nine Months Ended September 30,
(In Thousands, Except Per Share Data) (Unaudited)	2023			2022
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans	$	19,504		$	15,243
Interest on balances with depository institutions		82			59
Investment securities:
Taxable		614			546
Tax-exempt		1,244			1,285
Dividends		212			77
TOTAL INTEREST AND DIVIDEND INCOME		21,656			17,210

INTEREST EXPENSE:
Interest on deposits		6,246			2,205
Interest on short-term borrowings		1,007			37
Interest on long-term borrowings		1,064			—
TOTAL INTEREST EXPENSE		8,317			2,242

NET INTEREST INCOME		13,339			14,968

(Credit) provision for credit losses - loans		(120	)		225
(Credit) provision for credit losses - off balance sheet credit exposures		(1	)		—
TOTAL (CREDIT) PROVISION FOR CREDIT LOSSES		(121	)		225

NET INTEREST INCOME AFTER (CREDIT) PROVISION FOR CREDIT LOSSES		13,460			14,743

NON-INTEREST INCOME:
Service charges on deposit accounts		1,378			1,323
Realized gains on available-for-sale debt securities, net		—			3
Losses on marketable equity securities		(31	)		(29	)
Earnings on bank-owned life insurance		305			214
Investment services income		160			110
Trust income		—			40
Gains on sale of loans		73			101
Other service charges and fees		162			202
Other non-interest income		255			308
TOTAL NON-INTEREST INCOME		2,302			2,272

NON-INTEREST EXPENSE:
Salaries and employee benefits		6,234			6,263
Occupancy		873			635
Furniture and equipment		320			257
Data processing		941			978
Pennsylvania shares tax		241			321
Federal deposit insurance		171			133
Automated teller machine expense		378			495
Professional fees		402			511
Merger-related expenses		355			—
Other non-interest expense		1,500			1,701
TOTAL NON-INTEREST EXPENSE		11,415			11,294

INCOME BEFORE INCOME TAX PROVISION		4,347			5,721
INCOME TAX PROVISION		673			891
NET INCOME	$	3,674		$	4,830

EARNINGS PER SHARE - BASIC AND DILUTED	$	2.28		$	3.00

See accompanying notes to the unaudited consolidated financial statements.

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MUNCY BANK FINANCIAL, INC.

CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

	Nine Months Ended September 30,
(In Thousands) (Unaudited)	2023			2022
Net income	$	3,674		$	4,830
Other comprehensive loss:
Unrealized holding loss on available-for-sale debt securities		(5,627	)		(23,963	)
Tax effect		1,182			5,032
Net realized gain included in net income		—			3
Tax effect		—			(1	)
Total other comprehensive loss		(4,445	)		(18,929	)
Comprehensive loss	$	(771	)	$	(14,099	)

See accompanying notes to the unaudited consolidated financial statements.

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MUNCY BANK FINANCIAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

For the Nine Months Ended September 30, 2023 and 2022

(In Thousands, Except Per Share Data) (Unaudited)	COMMON STOCK		ADDITIONAL PAID-IN CAPITAL		RETAINED EARNINGS			ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)			TREASURY STOCK			TOTAL SHAREHOLDERS’ EQUITY
For the nine months ended:
Balance, January 1, 2022	$	747	$	9,297	$	51,987		$	1,058		$	(3,982	)	$	59,107
Net income		—		—		4,830			—			—			4,830
Other comprehensive loss		—		—		—			(18,929	)		—			(18,929	)
Cash dividends declared, $1.15 per share		—		—		(1,849	)		—			—			(1,849	)
Balance, September 30, 2022	$	747	$	9,297	$	54,968		$	(17,871	)	$	(3,982	)	$	43,159
Balance, January 1, 2023	$	747	$	9,297	$	55,789		$	(14,346	)	$	(3,982	)	$	47,505
Adoption of ASU 2016-13 (CECL)		—		—		(311	)		—			—			(311	)
Net income		—		—		3,674			—			—			3,674
Other comprehensive loss		—		—		—			(4,445	)		—			(4,445	)
Cash dividends declared, $1.58 per share		—		—		(2,541	)		—			—			(2,541	)
Balance, September 30, 2023	$	747	$	9,297	$	56,611		$	(18,791	)	$	(3,982	)	$	43,882

See accompanying notes to the unaudited consolidated financial statements.

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MUNCY BANK FINANCIAL, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

	Nine Months Ended September 30,
(In Thousands) (Unaudited)	2023			2022
OPERATING ACTIVITIES:
Net income	$	3,674		$	4,830
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		548			362
(Credit) provision for credit losses		(121	)		225
Amortization and accretion of investment securities		289			321
Realized gains on available-for-sale debt securities, net		—			(3	)
Losses on marketable equity securities		31			29
Earnings on bank-owned life insurance		(305	)		(215	)
Deferred income taxes		(142	)		(103	)
Origination of loans held for sale		(2,804	)		(4,058	)
Proceeds from sale of loans		2,877			4,397
Gains on sale of loans		(73	)		(101	)
Loss on sale of premises and equipment		25			11
Increase in accrued interest receivable and other assets		(390	)		(105	)
Increase in accrued interest payable and other liabilities		491			795
Net cash provided by operating activities		4,100			6,385
INVESTING ACTIVITIES:
Available-for-sale debt securities:
Proceeds from paydowns, calls and maturities		4,044			9,855
Purchases		(802	)		(17,922	)
Net increase in loans		(29,663	)		(23,515	)
Purchase of bank-owned life insurance		(3,108	)		—
Purchases of restricted investment in bank stocks		(8,582	)		(1,311	)
Redemption of restricted investment in bank stocks		6,683			964
Acquisition of premises and equipment		(548	)		(4,720	)
Net cash used by investing activities		(31,976	)		(36,649	)
FINANCING ACTIVITIES:
Net (decrease) increase in interest-bearing deposits		(30,125	)		35,099
Net decrease in noninterest-bearing deposits		(32	)		(2,331	)
Net increase in short-term borrowings		14,104			623
Proceeds of long-term borrowings		46,401			—
Cash dividends paid		(1,898	)		(1,849	)
Net cash provided by financing activities		28,450			31,542
NET INCREASE IN CASH AND CASH EQUIVALENTS		574			1,278
CASH AND CASH EQUIVALENTS, BEGINNING		6,424			6,083
CASH AND CASH EQUIVALENTS, ENDING	$	6,998		$	7,361

SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	$	7,416		$	2,270
Income taxes paid	$	775		$	1,050

See accompanying notes to the unaudited consolidated financial statements.

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MUNCY BANK FINANCIAL, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION

The consolidated financial statements include the accounts of Muncy Bank Financial, Inc. (“Company”), and its wholly-owned subsidiary, The Muncy Bank & Trust Company (“Bank”). All significant intercompany balances and transactions have been eliminated.

The consolidated financial information included herein, except the consolidated balance sheet dated December 31, 2022, is unaudited. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included.

The Company has evaluated events and transactions occurring subsequent to the consolidated balance sheet date of September 30, 2023 for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.

NOTE 2 – SUMMARY OF SIGNFICANT ACCOUNTING POLICIES

Adoption of New Accounting Standards

On January 1, 2023, the Company adopted Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 required financial assets measured at amortized cost to be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company took steps to prepare for the implementation over the past several years, such as: forming an internal committee, gathering pertinent data, consulting with outside professionals, subscribing to a new software system, and running existing and new methodologies concurrently through the period of implementation. The Company adopted the ASU’s provisions using the modified retrospective method and evaluated the impact the current expected credit loss (“CECL”) model had on the accounting for credit losses, and recognized a one-time, cumulative-effect adjustment to retained earnings at the beginning of the first reporting period in which the new standard became effective. The cumulative-effect adjustment resulted in a decrease to retained earnings of $311,000, as outlined in the table below. There was no impact on the securities portfolio upon adoption. This adoption method is considered a change in accounting principle requiring additional disclosure of the nature of and reason for the change, which is solely a result of the adoption of the required standard.

(In Thousands)	As Reported Under ASC 326 January 1, 2023		Pre-ASC 326 Adoption December 31, 2022		Impact of ASC 326 Adoption
Allowance for credit losses on loans	$	5,301	$	4,952	$	349
Allowance for credit losses on off-balance sheet exposures (included in other liabilities)		45		—		45
Deferred tax asset, net		1,123		1,040		83
Retained earnings		55,478		55,789		(311	)

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On January 1, 2023, the Company adopted ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminated the accounting guidance on troubled debt restructurings (“TDRs”) by creditors that have adopted the CECL model and enhances disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulty. The ASU also amended the guidance on “vintage disclosures” to require disclosure of current-period gross charge-offs by year of origination. The Company adopted the ASU’s provisions using the modified retrospective method in conjunction with the CECL adoption. The adoption of ASU 2022-02 did not have a material impact on the Company’s consolidated financial statements.

Accounting Policies

The Company’s significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited consolidated financial statements and notes for the year ended December 31, 2022. There have been no significant changes to the application of significant accounting policies since December 31, 2022, except for the following:

Allowance for Credit Losses – Available-for-Sale Debt Securities

For available-for-sale debt securities, management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security, an allowance for credit losses is recorded.

If either of the above criteria is not met, the Company evaluates whether the decline in fair value is the result of credit losses or other factors. The Company has elected the practical expedient of zero credit loss estimates for securities issued or guaranteed by U.S. Government entities or agencies. In making the credit loss assessment of securities not issued or guaranteed by U.S. Government entities or agencies, the Company may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an allowance for credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an allowance for credit loss is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance for credit losses when management believes an available-for-sale debt security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met. At September 30, 2023, there was no allowance for credit losses related to the available-for-sale portfolio.

Accrued interest receivable on available-for-sale debt securities totaled $604,000 at September 30, 2023 and was excluded from the estimate of credit losses.

Allowance for Credit Losses on Loans

The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

The allowance for credit losses represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.

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Accrued interest receivable on loans totaled $1,699,000 at September 30, 2023 and was excluded from the estimate of credit losses.

The allowance for credit losses (“ACL”) includes two primary components: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis), and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and which are individually evaluated for credit losses (individual basis).

Loans evaluated on an individual basis are identified based on a detailed assessment of loan relationships, and their related credit risk ratings. The allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan.

The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Company has identified the following portfolio segments and calculates the allowance for credit losses for each using the vintage method:

Residential mortgage:

Residential mortgage loans - first liens

Residential mortgage loans - junior liens

Home equity lines of credit

1-4 Family residential construction

Commercial:

Commercial loans secured by real estate

Commercial and industrial

Political subdivisions

Commercial construction and land

Loans secured by farmland

Multi-family (5 or more) residential

Agricultural loans

Other commercial loans

Consumer

In determining the pools for collective evaluation, management used a combination of loan purpose, collateral and payment type (for example, lines of credit vs. amortizing) as well as weighted average lives. The pools identified are the same as the loan classes used in the Company’s financial reporting.

Estimation Method - Vintage

The vintage methodology under CECL measures the expected loss calculation for future periods based on historical performance by the origination period of loans with similar life cycles and risk characteristics. Loans are included in tracking historical losses in the period in which they originated. Upon renewal of a loan, a new vintage is created.

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Loss rates applied in the Company’s vintage methodology start with historical loss rates for each vintage. Loss rates for future periods are based upon historical trends as well as factoring in any changes for current conditions and reasonable and supportable forecast periods, where these periods are different. When future years are no longer reasonably forecastable, loss rates are reverted to adjusted historical averages. To determine the ACL the Company applies the expected loss rates determined from the historical loss rates adjusted for qualitative and forecast factors for each vintage to the origination balance of each vintage pool as of the reporting date and sum the totals for each vintage to determine the current expected loss.

Qualitative Factors

The allowance for credit losses calculation includes subjective adjustments for qualitative risk factors that are deemed likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments generally increase allowance levels and include adjustments for factors deemed relevant, including: lending policies and procedures; economic conditions; nature and volume of the portfolio and terms of loans; experience, ability and depth of lending management and staff; volume and severity of past due, classified and nonaccrual loans; loan review; underlying collateral; concentrations of credit, and; other external factors and conditions not already captured.

Allowance for Credit Losses on Off-Balance Sheet Exposures

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded.

The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for unfunded commitments in the Company’s statement of income. The allowance for credit losses on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model, taking into consideration the likelihood that funding will occur. The allowance for off-balance sheet exposures is included in other liabilities in the Company’s unaudited consolidated balance sheet and the related credit loss expense is recorded in the unaudited consolidated statement of income.

NOTE 3 – BUSINESS COMBINATION

On April 18, 2023, CCFNB Bancorp, Inc. (“CCFNB”) and the Company jointly announced the signing of a definitive merger agreement to combine the two companies in a strategic merger of equals. Effective November 11, 2023, the merger was completed. Under the terms of the Merger Agreement, (i) the Company merged with and into CCFNB, with CCFNB being the surviving entity, and (ii) the Bank merged with and into CCFNB's wholly-owned banking subsidiary, First Columbia Bank & Trust Co. ("First Columbia Bank"), with First Columbia Bank being the surviving bank (the "Mergers"). In connection with the Mergers, CCFNB changed its name to Muncy Columbia Financial Corporation ("MCFC"), and First Columbia Bank changed its name to Journey Bank.

At the effective time of the merger, the Company’s shareholders received a fixed exchange ratio of 0.9259 shares of MCFC for each Company share they owned, except to the extent of cash received for fractional shares at $41.47 per share.

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NOTE 4 – SECURITIES

The amortized cost, gross unrealized gains and losses, and fair value of securities are as follows at September 30, 2023 and December 31, 2022:

	September 30, 2023
(In Thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
State and political securities	$	80,644	$	—	$	(17,663	)	$	62,981
Mortgage-backed securities		21,819		—		(4,108	)		17,711
Collateralized mortgage obligations		11,006		—		(1,982	)		9,024
Other debt securities		300		—		(34	)		266
Total debt securities		113,769		—		(23,787	)		89,982
Marketable equity securities		375		—		(22	)		353
Restricted investment in bank stocks		5,245		—		—			5,245
Total investment securities	$	119,389	$	—	$	(23,809	)	$	95,580

	December 31, 2022
(In Thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
State and political securities	$	81,932	$	1	$	(13,053	)	$	68,880
Mortgage-backed securities		23,466		3		(3,368	)		20,101
Collateralized mortgage obligations		11,602		—		(1,726	)		9,876
Other debt securities		300		—		(17	)		283
Total debt securities		117,300		4		(18,164	)		99,140
Marketable equity securities		375		8		—			383
Restricted investment in bank stocks		3,346		—		—			3,346
Total investment securities	$	121,021	$	12	$	(18,164	)	$	102,869

The amortized cost and fair value of debt securities at September 30, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(In Thousands)	Amortized Cost		Fair Value
Due in one year or less	$	310	$	305
Due after 1 year to 5 years		4,312		3,978
Due after 5 years to 10 years		16,451		13,487
Due after 10 years		59,871		45,477
Sub-total		80,944		63,247

Mortgage-backed securities		21,819		17,711
Collateralized mortgage obligations		11,006		9,024
Total debt securities	$	113,769	$	89,982

- 12 -

The Company’s mortgage-backed securities and collateralized mortgage obligations have stated maturities that may differ from actual maturities due to borrowers’ ability to prepay obligations. Cash flows from such investments are dependent upon the performance of the underlying mortgage loans and are generally influenced by the level of interest rates. In the table above, mortgage-backed securities and collateralized mortgage obligations are shown in one period.

Investment securities with a carrying value of approximately $33,156,000 and $43,683,000 at September 30, 2023 and December 31, 2022, respectively, were pledged to secure public funds and certain other deposits and for other purposes as provided by law.

The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at September 30, 2023 and December 31, 2022.

	September 30, 2023
	Less than 12 Months					12 Months or Greater					Total
(In Thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
State and political securities	$	2,633	$	(182	)	$	60,348	$	(17,481	)	$	62,981	$	(17,663	)
Mortgage-backed securities		844		(32	)		16,867		(4,076	)		17,711		(4,108	)
Collateralized mortgage obligations		452		(15	)		8,572		(1,967	)		9,024		(1,982	)
Other debt securities		87		(13	)		179		(21	)		266		(34	)
	$	4,016	$	(242	)	$	85,966	$	(23,545	)	$	89,982	$	(23,787	)

	December 31, 2022
	Less than 12 Months					12 Months or Greater					Total
(In Thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
State and political securities	$	29,121	$	(3,652	)	$	39,475	$	(9,401	)	$	68,596	$	(13,053	)
Mortgage-backed securities		7,929		(679	)		11,709		(2,689	)		19,638		(3,368	)
Collateralized mortgage obligations		4,163		(332	)		5,713		(1,394	)		9,876		(1,726	)
Other debt securities		—		—			183		(17	)		183		(17	)
	$	41,213	$	(4,663	)	$	57,080	$	(13,501	)	$	98,293	$	(18,164	)

A summary of information management considered in evaluating debt and equity securities for credit losses at September 30, 2023 and December 31, 2022 is provided below.

Debt Securities

As reflected in the table above, gross unrealized holding losses on available-for-sale debt securities totaled $23,787,000 at September 30, 2023 and $18,164,000 at December 31, 2022. At September 30, 2023, the Company does not have the intent to sell, nor is it more likely than not it will be required to sell, these securities before it is able to recover the amortized cost basis. The unrealized holding losses were consistent with significant increases in market interest rates that occurred in 2022 and 2023.

At September 30, 2023 and December 31, 2022, management performed an assessment for possible credit losses of the Company’s debt securities on an issue-by-issue basis, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. At September 30, 2023 and December 31, 2022, all of the Company’s holdings of obligations of states and political subdivisions were investment grade and there have been no payment defaults.

- 13 -

Based on the results of the assessment, there was no ACL required on available-for-sale debt securities in an unrealized loss position at September 30, 2023. There was no other-than-temporary-impairment on available-for-sale debt securities in an unrealized loss position at December 31, 2022.

Equity Securities

The Bank is a member of the Federal Home Loan Bank of Pittsburgh (FHLB-Pittsburgh), which is one of 11 regional Federal Home Loan Banks. As a member, the Bank is required to purchase and maintain stock in FHLB-Pittsburgh. There is no active market for FHLB-Pittsburgh stock, and it must ordinarily be redeemed by FHLB-Pittsburgh in order to be liquidated. The Bank’s investment in FHLB-Pittsburgh stock was $5,180,000 at September 30, 2023 and $3,281,000 at December 31, 2022. The Company evaluated its holding of FHLB-Pittsburgh stock for impairment and deemed the stock to not be impaired at September 30, 2023 and December 31, 2022. In making this determination, management concluded that recovery of total outstanding par value, which equals the carrying value, is expected. The decision was based on review of financial information that FHLB-Pittsburgh has made publicly available.

The Company has marketable equity securities with a carrying value of $353,000 at September 30, 2023 and $383,000 at December 31, 2022, consisting exclusively of preferred stock of another financial institution. There was an unrealized loss of $22,000 at September 30, 2023 and an unrealized gain of $8,000 at December 31, 2022. Changes in the unrealized gains or losses on these securities are included in other noninterest income in the consolidated statement of income.

NOTE 5 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

The loans receivable portfolio is segmented into residential mortgage, commercial and consumer loans. Loans outstanding at September 30, 2023 and December 31, 2022 are summarized by segment, and by classes within each segment, as follows:

(In Thousands)	September 30, 2023			December 31, 2022
Residential mortgage:
Residential mortgage loans - first liens	$	232,028		$	220,586
Residential mortgage loans - junior liens		12,211			11,222
Home equity lines of credit		53,089			51,036
1-4 Family residential construction		18,021			23,558
Total residential mortgage		315,349			306,402
Commercial:
Commercial loans secured by real estate		106,824			89,838
Commercial and industrial		31,013			30,346
Political subdivisions		8,330			9,275
Commercial construction and land		2,677			1,182
Loans secured by farmland		10,969			12,252
Multi-family (5 or more) residential		26,817			23,965
Agricultural loans		1,205			1,320
Other commercial loans		1,418			299
Total commercial		189,253			168,477
Consumer		10,786			10,835
Gross loans		515,388			485,714
Allowance for credit losses		(5,153	)		(4,952	)
Loans, net	$	510,235		$	480,762

- 14 -

The following table summarizes the activity related to the allowance for credit losses for the nine months ended September 30, 2023 under the CECL methodology.

(In Thousands)	Balance, December 31, 2022		Adoption of CECL			Charge-offs			Recoveries		Provision (Credit)			Balance, September 30, 2023
Residential mortgage:
Residential mortgage loans - first liens	$	2,110	$	(1,095	)	$	—		$	—	$	58		$	1,073
Residential mortgage loans - junior liens		108		(34	)		—			—		6			80
Home equity lines of credit		453		(97	)		—			—		6			362
1-4 Family residential construction		226		(130	)		—			—		(38	)		58
Total residential mortgage		2,897		(1,356	)		—			—		32			1,573
Commercial:												—
Commercial loans secured by real estate		997		548			—			—		104			1,649
Commercial and industrial		336		657			(4	)		2		(103	)		888
Political subdivisions		56		(42	)		—			—		(2	)		12
Commercial construction and land		13		8			—			—		37			58
Loans secured by farmland		136		(89	)		—			—		(12	)		35
Multi-family (5 or more) residential		266		267			—			—		22			555
Agricultural loans		14		(8	)		—			—		(2	)		4
Other commercial loans		3		(2	)		—			—		5			6
Total commercial		1,821		1,339			(4	)		2		49			3,207
Consumer		128		245			(30	)		4		26			373
Unallocated		106		121			—			—		(227	)		—
Total	$	4,952	$	349		$	(34	)	$	6	$	(120	)	$	5,153

Prior to the adoption of ASC 326 on January 1, 2023, the Company calculated the allowance for loan losses under the incurred loss methodology. The following table is disclosed related to the allowance for loan losses in prior periods.

(In Thousands)	Balance, December 31, 2021		Charge-offs			Recoveries		Provision (Credit)			Balance, March 31, 2022
Residential mortgage:
Residential mortgage loans - first liens	$	1,943	$	—		$	—	$	39		$	1,982
Residential mortgage loans - junior liens		111		—			—		(5	)		106
Home equity lines of credit		416		—			—		33			449
1-4 Family residential construction		175		—			—		(20	)		155
Total residential mortgage		2,645		—			—		47			2,692
Commercial:
Commercial loans secured by real estate		810		—			—		87			897
Commercial and industrial		541		—			1		(203	)		339
Political subdivisions		22		—			—		(2	)		20
Commercial construction and land		—		—			—		104			104
Loans secured by farmland		147		—			—		(10	)		137
Multi-family (5 or more) residential		242		—			—		4			246
Agricultural loans		18		—			—		(3	)		15
Other commercial loans		5		—			—		—			5
Total commercial		1,785		—			1		(23	)		1,763
Consumer		111		(23	)		1		22			111
Unallocated		197		—			—		29			226
Total	$	4,738	$	(23	)	$	2	$	75		$	4,792

- 15 -

The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated.

	September 30, 2023						December 31, 2022
(dollars in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans		Nonaccrual Loans
Residential mortgage	$	775	$	144	$	919	$	802
Commercial		—		—		—		—
Consumer		—		—		—		—
Total	$	775	$	144	$	919	$	802

The Company recognized $55,000 of interest income on nonaccrual loans during the nine months ended September 30, 2023. All nonaccrual loans as of September 30, 2023 and December 31, 2022 were collateral-dependent and were collateralized by real estate.

The following table presents an analysis of past due loans as of September 30, 2023 and December 31, 2022:

	September 30, 2023
(In Thousands)	Current		30-89 Days Past Due		90+ Days Past Due		Total Loans		90+ Days & Accruing
Residential mortgage:
Residential mortgage loans - first liens	$	230,061	$	1,864	$	103	$	232,028	$	—
Residential mortgage loans - junior liens		12,139		72		—		12,211		—
Home equity lines of credit		52,362		512		215		53,089		100
1-4 Family residential construction		18,021		—		—		18,021		—
Total residential mortgage		312,583		2,448		318		315,349		100
Commercial:
Commercial loans secured by real estate		106,824		—		—		106,824		—
Commercial and industrial		30,964		49		—		31,013		—
Political subdivisions		8,330		—		—		8,330		—
Commercial construction and land		2,677		—		—		2,677		—
Loans secured by farmland		10,969		—		—		10,969		—
Multi-family (5 or more) residential		26,817		—		—		26,817		—
Agricultural loans		1,205		—		—		1,205		—
Other commercial loans		1,418		—		—		1,418		—
Total commercial		189,204		49		—		189,253		—
Consumer		10,728		54		4		10,786		4
Total	$	512,515	$	2,551	$	322	$	515,388	$	104

- 16 -

	December 31, 2022
(In Thousands)	Current		30-89 Days Past Due		90+ Days Past Due		Total Loans		90+ Days & Accruing
Residential mortgage:
Residential mortgage loans - first liens	$	218,082	$	1,885	$	619	$	220,586	$	212
Residential mortgage loans - junior liens		11,079		143		—		11,222		—
Home equity lines of credit		50,653		383		—		51,036		—
1-4 Family residential construction		23,558		—		—		23,558		—
Total residential mortgage		303,372		2,411		619		306,402		212
Commercial:
Commercial loans secured by real estate		89,838		—		—		89,838		—
Commercial and industrial		30,187		159		—		30,346		—
Political subdivisions		9,275		—		—		9,275		—
Commercial construction and land		1,182		—		—		1,182		—
Loans secured by farmland		12,252		—		—		12,252		—
Multi-family (5 or more) residential		23,965		—		—		23,965		—
Agricultural loans		1,320		—		—		1,320		—
Other commercial loans		299		—		—		299		—
Total commercial		168,318		159		—		168,477		—
Consumer		10,768		62		5		10,835		5
Total	$	482,458	$	2,632	$	624	$	485,714	$	217

Credit Quality Indicators

The Company categorized loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends and other factors. The Company analyzes loans individually to classify the loans as to credit risk. Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first five categories are considered not criticized, and are aggregated as Pass rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. Special Mention loans have potential weaknesses that, if left uncorrected, may result in deterioration of the repayment prospects or in the Bank’s credit position at some future date. Substandard loans have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Doubtful loans exhibit the same weaknesses found in the Substandard loans; however, the weaknesses are more pronounced. Such loans are static and collection in full is improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. Loans classified Loss are considered uncollectible and charge-off is imminent.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a loan rating process with layers of internal and external oversight. Generally, residential mortgage and consumer loans are included in the pass category unless a specific action, such as bankruptcy, repossession, death, or significant delay in payment occurs to raise awareness of a possible credit event. An annual external loan review of large business relationships is performed, as well as a sample of smaller transactions.

- 17 -

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of September 30, 2023:

(In Thousands)	Term Loans by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Residential mortgage loans - first liens
Pass	$	23,461	$	44,047	$	33,763	$	37,667	$	15,932	$	75,803	$	463	$	231,136
Substandard		243		—		93		103		51		402		—		892
Total residential mortgage loans - first liens	$	23,704	$	44,047	$	33,856	$	37,770	$	15,983	$	76,205	$	463	$	232,028
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential mortgage loans - junior liens
Pass	$	2,442	$	969	$	1,184	$	526	$	694	$	6,241	$	—	$	12,056
Substandard		—		—		—		—		—		155		—		155
Total residential mortgage loans - junior liens	$	2,442	$	969	$	1,184	$	526	$	694	$	6,396	$	—	$	12,211
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity lines of credit
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	52,974	$	52,974
Substandard		—		—		—		—		—		—		115		115
Total home equity lines of credit	$	—	$	—	$	—	$	—	$	—	$	—	$	53,089	$	53,089
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 residential construction
Pass	$	2,778	$	6,146	$	5,893	$	2,942	$	—	$	262	$	—	$	18,021
Substandard		—		—		—		—		—		—		—		—
Total 1-4 family residential construction	$	2,778	$	6,146	$	5,893	$	2,942	$	—	$	262	$	—	$	18,021
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial loans secured by real estate
Pass	$	19,085	$	22,782	$	29,358	$	6,131	$	6,724	$	18,156	$	4,189	$	106,425
Substandard		—		—		—		—		—		399		—		399
Total commercial loans secured by real estate	$	19,085	$	22,782	$	29,358	$	6,131	$	6,724	$	18,555	$	4,189	$	106,824
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial and industrial
Pass	$	4,302	$	5,308	$	8,739	$	2,342	$	884	$	1,259	$	7,801	$	30,635
Substandard		—		—		—		—		—		378		—		378
Total commercial and industrial	$	4,302	$	5,308	$	8,739	$	2,342	$	884	$	1,637	$	7,801	$	31,013
Current period gross charge-offs	$	—	$	—	$	—	$	4	$	—	$	—	$	—	$	4

Political subdivisions
Pass	$	—	$	6,273	$	—	$	15	$	35	$	2,007	$	—	$	8,330
Substandard		—		—		—		—		—		—		—		—
Total political subdivisions	$	—	$	6,273	$	—	$	15	$	35	$	2,007	$	—	$	8,330
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial construction and land
Pass	$	893	$	762	$	416	$	108	$	—	$	65	$	433	$	2,677
Substandard		—		—		—		—		—		—		—		—
Total commercial construction and land	$	893	$	762	$	416	$	108	$	—	$	65	$	433	$	2,677
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Loans secured by farmland
Pass	$	—	$	1,094	$	40	$	1,178	$	170	$	7,951	$	536	$	10,969
Substandard		—		—		—		—		—		—		—		—
Total loans secured by farmland	$	—	$	1,094	$	40	$	1,178	$	170	$	7,951	$	536	$	10,969
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-family (5 or more) residential
Pass	$	2,798	$	5,020	$	9,583	$	1,659	$	286	$	5,723	$	95	$	25,164
Substandard		—		—		—		—		—		1,537		116		1,653
Total multi-family (5 or more) residential	$	2,798	$	5,020	$	9,583	$	1,659	$	286	$	7,260	$	211	$	26,817
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Agricultural loans
Pass	$	25	$	146	$	110	$	298	$	182	$	4	$	440	$	1,205
Substandard		—		—		—		—		—		—		—		—
Total agricultural loans	$	25	$	146	$	110	$	298	$	182	$	4	$	440	$	1,205
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other commercial loans
Pass	$	—	$	1,129	$	19	$	71	$	30	$	66	$	103	$	1,418
Substandard		—		—		—		—		—		—		—		—
Total other commercial loans	$	—	$	1,129	$	19	$	71	$	30	$	66	$	103	$	1,418
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer
Pass	$	2,620	$	2,241	$	1,907	$	807	$	389	$	114	$	2,708	$	10,786
Substandard		—		—		—		—		—		—		—		—
Total consumer loans	$	2,620	$	2,241	$	1,907	$	807	$	389	$	114	$	2,708	$	10,786
Current period gross charge-offs	$	—	$	4	$	—	$	7	$	—	$	19	$	—	$	30

Total
Pass	$	58,404	$	95,917	$	91,012	$	53,744	$	25,326	$	117,651	$	69,742	$	511,796
Substandard		243		—		93		103		51		2,871		231		3,592
Total loans	$	58,647	$	95,917	$	91,105	$	53,847	$	25,377	$	120,522	$	69,973	$	515,388
Total current period gross charge-offs	$	—	$	4	$	—	$	11	$	—	$	19	$	—	$	34

- 18 -

The Company had no loans classified as special mention, doubtful or loss at September 30, 2023.

Credit quality indicators are as follows at December 31, 2022:

(In Thousands)	Pass		Special Mention		Substandard		Total
Residential mortgage:
Residential mortgage loans - first liens	$	219,821	$	—	$	765	$	220,586
Residential mortgage loans - junior liens		11,222		—		—		11,222
Home equity lines of credit		50,919		—		117		51,036
1-4 Family residential construction		23,558		—		—		23,558
Total residential mortgage		305,520		—		882		306,402
Commercial:
Commercial loans secured by real estate		89,433		—		405		89,838
Commercial and industrial		29,866		—		480		30,346
Political subdivisions		9,275		—		—		9,275
Commercial construction and land		1,182		—		—		1,182
Loans secured by farmland		12,252		—		—		12,252
Multi-family (5 or more) residential		21,250		—		2,715		23,965
Agricultural loans		1,320		—		—		1,320
Other commercial loans		299		—		—		299
Total commercial		164,877		—		3,600		168,477
Consumer		10,835		—		—		10,835
Total	$	481,232	$	—	$	4,482	$	485,714

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty, such as extensions of terms, insignificant payment delays and interest rate reductions, is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification.

- 19 -

Occasionally, the Company modifies loans to borrowers in distress by providing an other-than-insignificant payment delay. There were no loans modified to borrowers experiencing financial difficulty during the nine months ended September 30, 2023. The Company has not committed to lending any additional amounts on loans modified to borrowers experiencing financial difficulty at September 30, 2023. The Company experienced no payment defaults during the nine months ended September 30, 2023 on loans modified to borrowers experiencing financial difficulty.

NOTE 6 – DEPOSITS

Major segments of the deposit portfolio are summarized as follows as of September 30, 2023 and December 31, 2022:

(In Thousands)	September 30, 2023		December 31, 2022
Noninterest-bearing	$	106,881	$	106,913
Interest-bearing demand		112,201		164,058
Savings		56,596		63,902
Money market		59,675		78,059
Time		186,103		138,681
	$	521,456	$	551,613

Time deposits of $250,000 or more totaled approximately $30,322,000 and $33,014,000 at September 30, 2023 and December 31, 2022, respectively.

NOTE 7 – BORROWINGS

SHORT-TERM BORROWINGS

Short-term borrowings include repurchase agreements with customers and advances from the FHLB. As of September 30, 2023, the Bank was approved by the FHLB for borrowings of up to $257,254,000 of which $85,549,000 was outstanding in the form of advances and the FHLB had issued letters of credit on the Bank’s behalf totaling $46,900,000 against its borrowing capacity. Advances from the FHLB are secured by qualifying assets of the Bank. In addition to the outstanding balances noted below, the Bank also has additional lines of credit totaling $5,000,000 available from a correspondent bank other than the FHLB. The outstanding balances of short-term borrowings are summarized as follows:

(In Thousands)	September 30,		December 31,
	2023		2022
FHLB-Pittsburgh borrowings	$	39,148	$	25,368
Customer repurchase agreements		2,325		2,001
Total short-term borrowings	$	41,473	$	27,369

The weighted average rate paid by the Company on customer repurchase agreements was 3.00% at September 30, 2023 and 1.40% at December 31, 2022. The carrying value of the underlying securities was $2,977,000 at September 30, 2023 and $2,278,000 at December 31, 2022.

At September 30, 2023, short-term FHLB-Pittsburgh borrowings were composed of overnight borrowings at an interest rate of 5.68%. At December 31, 2022, short-term FHLB-Pittsburgh borrowings were composed of overnight borrowings of $13,910,000 at an interest rate of 4.45%, as well as a short-term advances of $11,458,000 at a weighted average interest rate of 4.48%.

- 20 -

LONG-TERM BORROWINGS – FHLB ADVANCES

Long-term borrowings from FHLB-Pittsburgh are as follows:

(In Thousands)	September 30,		December 31,
	2023		2022
Loans maturing in 2024 with a weighted-average rate of 5.30%	$	10,209	$	—
Loans maturing in 2025 with a weighted-average rate of 4.98%		10,208		—
Loans maturing in 2026 with a weighted-average rate of 4.04%		10,359		—
Loans maturing in 2027 with a weighted-average rate of 3.94%		10,417		—
Loan maturing in 2028 with a rate of 3.89%		5,208		—
Total long-term FHLB-Pittsburgh borrowings	$	46,401	$	—

NOTE 8 – FAIR VALUE

The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. The three broad levels of pricing observations are as follows:

Level I:

Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level II:

Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.

Level III:

Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

This hierarchy requires the use of observable market data when available.

The following tables present the assets reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of September 30, 2023 and December 31, 2022, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

- 21 -

	September 30, 2023
(In Thousands)	Level I		Level II		Level III		Total
Available-for-sale debt securities:
State and political securities	$	—	$	62,981	$	—	$	62,981
Mortgage-backed securities		—		17,711		—		17,711
Collateralized mortgage obligations		—		9,024		—		9,024
Other debt securities		—		266		—		266
Total	$	—	$	89,982	$	—	$	89,982

Marketable equity securities	$	353	$	—	$	—	$	353

	December 31, 2022
(In Thousands)	Level I		Level II		Level III		Total
Available-for-sale debt securities:
State and political securities	$	—	$	68,880	$	—	$	68,880
Mortgage-backed securities		—		20,101		—		20,101
Collateralized mortgage obligations		—		9,876		—		9,876
Other debt securities		—		283		—		283
Total	$	—	$	99,140	$	—	$	99,140

Marketable equity securities	$	383	$	—	$	—	$	383

The following table presents the assets reported on the balance sheet at their fair value on a non-recurring basis as of September 30, 2023 and December 31, 2022, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	September 30, 2023
(In Thousands)	Level I		Level II		Level III		Total
Loans individually evaluated for credit loss	$	—	$	—	$	920	$	920

	December 31, 2022
(In Thousands)	Level I		Level II		Level III		Total
Impaired loans	$	—	$	—	$	617	$	617

- 22 -

The following table provides a listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques as of September 30, 2023 and December 31, 2022:

September 30, 2023

Quantitative Information about Level III Fair Value Measurements

(In Thousands)

Fair Value Estimate

Valuation Technique

Unobservable Input

Amount

Weighted Average

Loans individually evaluated for credit loss

138

Appraisal of collateral

Discount to appraised value

20%

December 31, 2022

Quantitative Information about Level III Fair Value Measurements

(In Thousands)

Fair Value Estimate

Valuation Technique

Unobservable Input

Amount

Weighted Average

Impaired loan

142

Appraisal of collateral

Discount to appraised value

26%

Impaired loan

475

Discounted cash flows

Discount rate

The significant unobservable input used in the fair value measurement of the Company’s impaired loans using the appraisal of collateral valuation technique include appraisal adjustments, which are adjustments to appraisals by management for qualitative factors such as economic conditions and estimated liquidation expenses.

The estimated fair values, and related carrying amounts, of the Company’s financial instruments that are not recorded at fair value in the consolidated financial statements at September 30, 2023 and December 31, 2022 are as follows:

	September 30, 2023
(In Thousands)	Carrying Value		Fair Value		Level I		Level II		Level III
Financial assets:
Cash and cash equivalents	$	6,998	$	6,998	$	6,998	$	—	$	—
Interest-bearing time deposits		989		975		—		975		—
Restricted equity securities		5,245		5,245		—		5,245		—
Loans, net		510,235		504,504		—		—		504,504
Accrued interest receivable		2,303		2,303		—		2,303		—
Mortgage servicing rights		453		945		—		—		945

Financial liabilities:
Interest-bearing deposits		414,575		346,973		—		161,124		185,849
Noninterest-bearing deposits		106,881		106,881		—		106,881		—
Short-term borrowings		41,473		41,473		—		41,473		—
Long-term borrowings		46,401		45,327		—		—		45,327
Accrued interest payable		1,267		1,267		—		1,267		—

- 23 -

	December 31, 2022
(In Thousands)	Carrying Value		Fair Value		Level I		Level II		Level III
Financial assets:
Cash and cash equivalents	$	6,424	$	6,424	$	6,424	$	—	$	—
Interest-bearing time deposits		989		972		—		972		—
Restricted equity securities		3,346		3,346		—		3,346		—
Loans, net		480,762		458,147		—		—		458,147
Accrued interest receivable		2,086		2,086		—		2,086		—
Mortgage servicing rights		488		962		—		—		962

Financial liabilities:
Interest-bearing deposits		444,700		378,697		—		240,309		138,388
Noninterest-bearing deposits		106,913		106,913		—		106,913		—
Short-term borrowings		27,369		27,369		—		27,369		—
Accrued interest payable		366		366		—		366		—

- 24 -

MUNCY COLUMBIA FINANCIAL CORPORATION 8-K/A

EXHIBIT 99.2

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED COMBINED FINANCIAL INFORMATION

The unaudited pro forma condensed consolidated combined financial information has been prepared using the acquisition method of accounting under the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, ASC 805, “Business Combinations”, giving effect to CCFNB Bancorp, Inc.’s (“CCFNB”) acquisition of Muncy Bank Financial, Inc. (“MBF”). In connection with the transaction, CCFNB changed its name to Muncy Columbia Financial Corporation (“MCFC”) concurrently with the completion of the merger on November 11, 2023. Under the acquisition method of accounting, MBF’s assets and liabilities as of the date of the acquisition will be recorded at their respective fair values and added to those of MCFC. Any difference between the purchase price for MBF and the fair value of the identifiable net assets acquired (including core deposit intangibles) will be recorded as goodwill. The goodwill resulting from the acquisition will not be amortized to expense, but instead will be reviewed for impairment at least annually. Any core deposit intangible and other intangible assets with estimated useful lives to be recorded by MCFC in connection with the acquisition will be amortized to expense over their estimated useful lives. The financial statements of MCFC issued after the acquisition will reflect the results attributable to the acquired operations of MBF beginning on the date of completion of the acquisition. The merger was consummated on November 11, 2023.

The unaudited pro forma condensed consolidated combined financial information and accompanying notes are based on and should be read in conjunction with (i) the historical audited consolidated financial statements of CCFNB and the related notes for the year ended December 31, 2022 included in CCFNB’s Registration Statement on Form S-4 as originally filed with the Securities and Exchange Commission (the “Commission”) on June 29, 2023 (File No. 333-273023) and as thereafter amended (the “Registration Statement”), (ii) the historical unaudited consolidated financial statements of CCFNB and the related notes for the nine months ended September 30, 2023 included in CCFNB’s Quarterly Report on Form 10-Q filed with the Commission on November 9, 2023, (iii) the historical audited consolidated financial statements of MBF and the related notes for the year ended December 31, 2022 included in the Registration Statement, and (iv) the historical unaudited consolidated financial statements of MBF for the nine months ended September 30, 2023, which are included in this Current Report on Form 8-K as Exhibit 99.1.

The unaudited pro forma condensed consolidated combined financial information is provided for illustrative information purposes only. The unaudited pro forma condensed consolidated combined financial information is not necessarily, and should not be assumed to be, an indication of the actual results that would have been achieved had the merger been completed as of the dates indicated or that may be achieved in the future. The unaudited pro forma condensed consolidated combined financial statements have been prepared in accordance with Article 11 of Regulation S-X, Pro Forma Information, which requires the depiction of the accounting for the transaction. The unaudited pro forma condensed consolidated combined financial information also does not consider any potential effects of changes in market conditions, revenue enhancements, or expense efficiencies, among other factors.

The unaudited pro forma condensed consolidated combined balance sheet as of September 30, 2023 gives effect to the merger as if the transaction occurred September 30, 2023. The unaudited pro forma condensed consolidated combined statements of income for the nine months ended September 30, 2023 and the year ended December 31, 2022 give effect to the merger as if the transaction occurred on the first day of the year and nine months periods presented.

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The unaudited pro forma condensed consolidated combined financial statements were prepared with MCFC as the accounting acquirer and MBF as the accounting acquiree under the acquisition method of accounting. Accordingly, the consideration paid by MCFC to complete the acquisition of MBF will be allocated to MBF’s assets and liabilities based upon their estimated fair values as of the date of completion of the acquisition. The fair value adjustments made to the acquired assets and liabilities of MBF are considered preliminary at this time and are subject to change as MCFC finalizes its fair value determinations. There can be no assurance that the final determination will not result in material changes from the amounts presented in these unaudited pro forma condensed consolidated combined financial statements. The pro forma calculations, shown below, include a closing share price of $37.00, which represents the closing price of CCFNB’s common stock on November 10, 2023.

The unaudited pro forma condensed consolidated combined income statement and earnings per share data do not include anticipated cost savings or revenue enhancements, nor do they include one-time merger-related expenses which will be expensed against income, or a one-time provision expense of $2.9 million related to ASC 326 Current Expected Credit Losses (“CECL”) allowance for credit losses for non-PCD loans. MCFC is currently in the process of assessing the two companies’ personnel, benefits plans, premises, equipment, computer systems and service contracts to determine where the companies may take advantage of redundancies or where it will be beneficial or necessary to convert to one system. Certain decisions arising from these assessments may involve canceling contracts between either MCFC or MBF and certain service providers. There is no assurance that the anticipated cost savings will be realized on the anticipated time schedule or at all.

The pro forma combined basic and diluted earnings per share of MCFC common stock are based on the pro forma combined net income per common share for MCFC and MBF divided by the pro forma basic or diluted common shares of the combined entities. The pro forma information includes adjustments related to the fair value of assets and liabilities of MBF and is subject to adjustment as additional information becomes available and as final merger data analyses are performed.

The pro forma condensed consolidated combined balance sheet and book value per share data do include the impact of merger related expenses on the balance sheet with MBF’s after-tax charges currently estimated at $2.7 million, illustrated as a transaction adjustment to accrued other liabilities, MCFC’s after-tax estimated charges of $1.5 million, illustrated as a decrease to retained earnings and to accrued other liabilities, and the one-time provision expense of $5.3 million related to CECL allowance for credit losses for non-PCD loans shown as an increase in the allowance for credit losses and a decrease in retained earnings. The pro forma combined book value per share of MCFC common stock is based on the pro forma combined common stockholders’ equity of MCFC and MBF divided by total pro forma common shares of the combined entities.

The unaudited pro forma data are qualified by the statements set forth under this caption and should not be considered indicative of the market value of MCFC common stock or the actual or future results of operations of MCFC for any period. Actual results may be materially different than the pro forma information presented.

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Unaudited Pro Forma Condensed Consolidated Combined Balance Sheets as of September 30, 2023

($ In Thousands, Except Per Share Data)

	CCFNB Bancorp, Inc.			Muncy Bank Financial, Inc.			Transaction Accounting Adjustments			Combined Muncy Columbia Financial Corporation
Assets:
Cash and due from banks	$	8,209		$	4,930		$	—		$	13,139
Interest-bearing deposits in other banks		9,232			2,068			(9	) (1)
Total cash and cash equivalents		17,441			6,998			(9	)		24,430

Interest-bearing time deposits		—			989			(13	) (3)		976
Available-for-sale debt securities, at fair value		321,572			89,982			49	(3)		411,603
Marketable equity securities, at fair value		812			353			—			1,165
Restricted investment in bank stocks, at cost		3,968			5,245			—			9,213
Loans held for sale		607			—			—			607
Loans receivable		556,255			515,388			(25,310	) (4)		1,046,333
Allowance for credit losses		(6,094	)		(5,153	)		2,006	(5)		(9,241	)
Loans, net		550,161			510,235			(23,304	)		1,037,092

Premises and equipment, net		12,467			17,338			(2,549	) (6)		27,256
Accrued interest receivable		2,664			2,303			—			4,967
Bank-owned life insurance		22,239			17,752			—			39,991
Investment in limited partnerships		5,951			—			—			5,951
Deferred tax asset, net		8,187			6,493			2,507	(7)		17,187
Goodwill		7,937			—			19,861	(1)		27,798
Core deposit intangible, net		—			—			12,078	(8)		12,078
Other assets		3,574			2,777			464	(8)		6,815
Total assets	$	957,580		$	660,465			9,084		$	1,627,129

Liabilities:
Interest-bearing deposits	$	474,687		$	414,575			—		$	889,262
Noninterest-bearing deposits		165,888			106,881			(1,895	) (9)		270,874
Total deposits		640,575			521,456			(1,895	)		1,160,136

Short-term borrowings		199,083			41,473			—			240,556
Long-term borrowings		25,021			46,401			(999	) (10)		70,423
Accrued interest payable		518			1,267			—			1,785
Other liabilities		3,957			5,986			5,200	(11)		15,143
Total liabilities		869,154			616,583			2,306			1,488,043

Shareholders' equity:
Common stock, par value		2,932			747			1,114	(1)(2)		4,793
Additional paid-in capital		30,092			9,297			43,934	(1)(2)		83,323
Retained earnings		92,594			56,611			(61,043	) (2)(5)(11)		88,162
Accumulated other comprehensive loss		(27,402	)		(18,791	)		18,791	(2)		(27,402	)
Treasury stock		(9,790	)		(3,982	)		3,982	(2)		(9,790	)
Total shareholders' equity		88,426			43,882			6,778			139,086
Total liabilities and shareholders' equity	$	957,580		$	660,465			9,084		$	1,627,129

Per share data:
Common shares outstanding		2,080,723			1,608,358			(119,398	) (1)		3,569,683
Book value per share	$	42.50		$	27.28					$	38.96

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Unaudited Pro Forma Condensed Consolidated Combined Statements of Income for the Nine Months Ended
September 30, 2023

($ In Thousands, Except Per Share Data)

	CCFNB Bancorp, Inc.			Muncy Bank Financial, Inc., Inc.			Transaction Accounting Adjustments			Pro Forma Combined Muncy Columbia Financial Corporation
Interest and Dividend Income
Interest and fees on loans	$	19,535		$	19,504		$	8,223	(4)	$	47,262
Interest on investment securities		4,039			1,858			1,528	(3)		7,425
Dividend and other interest income		222			212			—			434
Federal funds sold		1			—			—			1
Deposits in other banks		169			82			13	(3)		264
Total interest and dividend income		23,966			21,656			9,764			55,387

Interest Expense
Deposits		2,299			6,246			1,155	(9)		9,700
Short-term borrowings		6,248			1,007			—			7,255
Long-term borrowings		414			1,064			229	(10)		1,707
Total interest expense		8,961			8,317			1,384			18,662
Net interest income		15,005			13,339			8,380			36,725
(Credit) provision for credit losses		(593	)		(121	)		—			(714	)
Net interest income after provision for credit losses		15,598			13,460			8,380			37,439

Non-Interest Income
Service charges and fees		1,516			708			—			2,224
Gain on sale of loans		193			73			—			266
Earnings on bank-owned life insurance		335			305			—			640
Brokerage		425			160			—			585
Trust		613			—			—			613
Losses on marketable equity securities		(265	)		(31	)		—			(296	)
Realized gains on available-for-sale debt securities, net		—			—						—
Interchange fees		1,294			832						2,126
Other		743			255			—			998
Total non-interest income		4,854			2,302			—			7,156

Non-Interest Expense
Salaries and employee benefits		7,307			6,234			—			13,541
Occupancy		969			873			(20	) (6)		1,822
Furniture and equipment		1,546			1,204			—			2,750
Pennsylvania shares tax		234			241			—			475
Professional fees		985			402			—			1,387
Director's fees		227			208						435
Federal deposit insurance		327			171						498
Telecommunications		243			70						313
Automated teller machine and interchange		221			378			—			599
Merger-related expenses		1,206			355			(1,561	) (11)		—
Other non-interest expense		1,682			1,279			1,710	(8)		4,671
Total non-interest expense		14,947			11,415			129			26,491
Income Before Income Tax Provision		5,505			4,347			8,251			18,104
Income tax provision		932			673			1,512	(7)		3,117
Net Income	$	4,573		$	3,674		$	6,739		$	14,987

Earnings per share - basic and diluted	$	2.20		$	2.28					$	4.20
Cash dividends per common share	$	1.28		$	1.18					$	1.28
Weighted average shares outstanding		2,079,635			1,608,358			(119,398	) (1)		3,568,595

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Unaudited Pro Forma Condensed Consolidated Combined Statements of Income for the Year Ended December 31, 2022

($ In Thousands, Except Per Share Data)

	CCFNB Bancorp, Inc.			Muncy Bank Financial, Inc., Inc.			Transaction Accounting Adjustments			Pro Forma Combined Muncy Columbia Financial Corporation
Interest and Dividend Income
Interest and fees on loans	$	21,279		$	21,025		$	10,777	(4)	$	53,081
Interest on investment securities		4,506			2,456			2,038	(3)		9,000
Dividend and other interest income		198			116			—			314
Federal funds sold		20			—						20
Deposits in other banks		385			86			13	(3)		484
Total interest and dividend income		26,388			23,683			12,828			62,899

Interest Expense
Deposits		1,773			3,521			1,322	(9)		6,616
Short-term borrowings		2,286			339			—			2,625
Long-term borrowings		2			—			302	(10)		304
Total interest expense		4,061			3,860			1,624			9,545
Net interest income		22,327			19,823			11,204			53,354
(Credit) provision for loan losses		(1,810	)		250			—			(1,560	)
Net interest income after provision for loan losses		24,137			19,573			11,204			54,914

Non-Interest Income
Service charges and fees		2,117			904			—			3,021
Gain on sale of loans		478			111			—			589
Earnings on bank-owned life insurance		652			287			—			939
Brokerage		597			141			—			738
Trust		845			40			—			885
Losses on marketable equity securities		(37	)		(26	)		—			(63	)
Realized (losses) gains on available-for-sale debt securities, net		(1,236	)		3			—			(1,233	)
Interchange fees		1,720			1,108			—			2,828
Other		935			335			—			1,270
Total non-interest income		6,071			2,903			—			8,974

Non-Interest Expense
Salaries and employee benefits		10,406			8,348			—			18,754
Occupancy		1,476			863			(27	) (6)		2,312
Furniture and equipment		1,757			1,612			—			3,369
Pennsylvania shares tax		412			430			—			842
Professional fees		1,390			663			—			2,053
Director's fees		314			274			—			588
Federal deposit insurance		262			177			—			439
Telecommunications		351			109			—			460
Automated teller machine and interchange		338			638			—			976
Other non-interest expense		2,362			1,936			2,279	(8)		6,577
Total non-interest expense		19,068			15,050			2,252			36,370
Income Before Income Tax Provision		11,140			7,426			8,952			27,518
Income tax provision		1,626			1,147			1,880	(7)		4,653
Net Income	$	9,514		$	6,279		$	7,072		$	22,865

Earnings per share - basic and diluted	$	4.58		$	3.90					$	6.41
Cash dividends per common share	$	1.67		$	1.54					$	1.67
Weighted average common shares outstanding		2,078,218			1,608,358			(119,398	) (1)		3,567,178

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Unaudited Pro Forma Per Share Data For The Nine Months Ended September 30, 2023

		CCFNB Bancorp, Inc. Historical		Muncy Bank Financial, Inc. Historical		Pro Forma Combined Muncy Columbia Financial Corporation		Pro Forma Equivalent Muncy Columbia Financial Corporation Share (A)
For The Nine Months Ended September 30, 2023:
Net income per share - basic and diluted	$	2.20	$	2.28	$	4.20	$	3.89
Cash dividends per share	$	1.28	$	1.18	$	1.28	$	1.19

Unaudited Pro Forma Per Share Data For The Twelve Months Ended December 31, 2022

		CCFNB Bancorp, Inc. Historical		Muncy Bank Financial, Inc. Historical		Pro Forma Combined Muncy Columbia Financial Corporation		Pro Forma Equivalent Muncy Columbia Financial Corporation Share (A)
For the twelve months ended December 31, 2022
Net income per share - basic and diluted	$	4.58	$	3.90	$	6.41	$	5.93
Cash Dividends Per Share	$	1.67	$	1.54	$	1.67	$	1.55

(A)	Pro forma equivalent MCFC per share amount is calculated by multiplying the pro forma combined MCFC per share amount by the exchange ratio of 0.9259 in accordance with the definitive merger agreement.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED PRO FORMA COMBINED FINANCIAL STATEMENTS

(1)	At the effective time of the merger, each share of MBF’s common stock issued, and outstanding immediately prior to the effective time of the Merger (the “MBF Shares”) will be converted into the right to receive 0.9259 of a share of common stock, par value $1.25 per share, of MCFC.

The total estimated purchase price of $55.1 million used in the goodwill calculation, is based on CCFNB’s common stock price of $37.00 per share as of November 10, 2023, which represents the closing price of CCFNB’s common stock on November 10, 2023.

The following is a summary of the fair value of assets acquired and liabilities assumed resulting in goodwill. Goodwill is created when the purchase price consideration exceeds the fair value of the net assets acquired. Goodwill of $19.9 million resulted from the transaction; however, it is noted the fair value adjustments made to the acquired assets and liabilities are considered preliminary at this time and are subject to change as CCFNB finalizes its fair value determinations. The final adjustments may be materially different from the transaction accounting adjustments presented herein.

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(dollars in thousands, except per share data)

Purchase Price Consideration in Common Stock
MBF common shares settled for stock		1,608,122
Exchange Ratio		0.926
CCFNB shares to be issued		1,488,960
Value assigned to MBF common shares (closing stock price as of 11/10/2023)	$	37.00
Purchase price assigned to MBF common shares exchanged for CCFNB common stock			$	55,092

Cash in lieu of fractional shares			$	9

Total Purchase Price Consideration			$	55,101

(Dollars in thousand)	Muncy Bank Financial, Inc. Book Value 9/30/2023			Fair Value Adjustments				Muncy Bank Financial, Inc. Fair Value 9/30/2023
Total purchase price consideration							(1)	$	55,101

Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	$	6,998		$	—			$	6,998
Interest-bearing time deposits		989			(13	)	(3)		976
Securities, available for sale		89,982			49		(3)		90,031
Marketable equity securities, at fair value		353			—				353
Loans gross		515,388			(25,310	)	(4)		490,078
Allowance credit losses		(5,153	)		4,938		(5)		(215	)
Loans, net of allowance		510,235			(20,372	)			489,863
Restricted stock		5,245							5,245
Premises and equipment		17,338			(2,549	)	(6)		14,789
Accrued interest receivable		2,303			—				2,303
Core deposit intangibles		—			12,078		(8)		12,078
Deferred tax asset		6,493			2,185		(7)		8,678
Other assets		20,529			464		(8)		20,993
Total identifiable assets acquired		660,465			(8,158	)			652,307

Deposits		521,456			(1,895	)	(9)		519,561
Borrowings		87,874			(999	)	(10)		86,875
Accrued interest payable		1,267			—				1,267
Other liabilities		5,986			3,378		(11)		9,364
Total liabilities assumed		616,583			484				617,067
Total identifiable net assets	$	43,882			(8,642	)			35,240
Goodwill (not taxable)								$	19,861

(2)	Balance sheet adjustments to reflect the reversal of MBF’s historical equity accounts to APIC and record the purchase price consideration for common stock.

			Balance Sheet
(Dollars in thousands, except per share data)			9/30/2023
Transaction accounting adjustment for common stock
Reversal of MBF’s common stock			$	(747	)

Number of CCFNB common shares issued		1,488,960
Par value of CCFNB common stock	$	1.25
Par value of CCFNB common shares issued for merger				1,861
Total transaction accounting adjustment for common stock			$	1,114

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				Balance Sheet
(Dollars in thousands, except per share data)				9/30/2023
Transaction accounting adjustment for APIC
Reversal of MBF common stock to APIC				$	747
Reversal of MBF retained earnings to APIC					56,611
Reversal of MBF accumulated other comprehensive loss to APIC					(18,791	)
Reversal of MBF treasury stock to APIC					(3,982	)
Shares of MBF		1,608,122
Exchange ratio		0.9259
Number of CCFNB Shares issued		1,488,960
Value assigned to CCFNB common shares	$	37.00
Purchase price consideration for common stock	$	55,092
Cash in lieu of fractional shares		9
Total purchase price		55,101
Par value of CCFNB shares issued for merger at $1.25 per share		(1,861	)
APIC adjustment for CCFNB shares issued		53,231
Less: MBF Equity		(43,882	)
Net adjustment to APIC for stock consideration					9,349
Total transaction accounting adjustment for APIC				$	43,934

	Balance Sheet
(Dollars in thousands, except per share data)	9/30/2023
Transaction accounting adjustment for retained earnings
Reversal of MBF retained earnings	$	(56,611	)
Acquisition activity - CCFNB merger costs		(1,500	)
Provision for loan losses for Non-PCD loans		(2,932	)
Total transaction accounting adjustment for retained earnings	$	(61,043	)

	Balance Sheet
(Dollars in thousands, except per share data)	9/30/2023
Transaction accounting adjustment for accumulated other comprehensive loss
Reversal of MBF’s accumulated other comprehensive loss	$	18,791
Total transaction accounting adjustment for accumulated other comprehensive loss	$	18,791

	Balance Sheet
(Dollars in thousands, except per share data)	9/30/2023
Transaction accounting adjustment for treasury stock
Reversal of MBF’s treasury stock	$	3,982
Total transaction accounting adjustment for treasury stock	$	3,982

(3)

Balance sheet and income statement adjustment to reflect a fair value adjustment discount for interest-bearing deposits in other banks of $13 thousand and a premium for securities available for sale of $49 thousand. Income statement adjustment includes existing available-for-sale securities negative fair value adjustment of $20.4 million to an accreting discount which will be accreted into income based on the expected life of the securities.

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				Statements of Income
	Balance Sheet September 30, 2023			Nine Months Ended September 30, 2023		Twelve Months ended December 31, 2022
Interest-bearing deposits in other banks
Interest-bearing deposits in other banks fair value adjustment	$	(13	)	$	13	$	13
Total Interest-bearing deposits in other banks fair value adjustment	$	(13	)	$	13		13

Securities held to maturity	$	—		$	—	$	—

Investment securities available for sale
Investment securities available for sale fair value adjustment	$	49		$	1,528	$	2,038
Total balance sheet adjustments for investment securities	$	49		$	1,528		2,038

(4)

Balance sheet adjustment to reflect the fair value discount for acquired PCD and non-PCD loans of $25.3 million of which $25.8 million is assigned to loans, $215 thousand is assigned to the allowance for credit losses (recorded to ACL in footnote 5) and the reversal of deferred loan fees, net of $237 thousand. The following table also includes the income statement impact of Non-PCD and PCD Accruing loans amortization which will be recognized over the expected life of the loans.

				Income Statement
	Balance Sheet September 30, 2023			Nine Months Ended September 30, 2023		Twelve Months ended December 31, 2022
Fair value adjustments on loans acquired
HFI Non-PCD loans interest rate fair value	$	(19,346	)	$	7,038	$	9,236
HFI Non-PCD loans general credit fair value		(4,518	)		659		856
HFI PCD Accruing loans non-credit interest rate fair value		(1,310	)		475		624
HFI PCD Accruing loans non-credit general credit fair value		(439	)		52		62
HFI PCD Non-accruing loans non-credit interest rate fair value		(110	)		—		—
HFI PCD Non-Accruing loans non-credit general credit fair value		(39	)		—		—
Total fair value adjustment assigned to HFI loans		(25,762	)		8,223		10,777
Reversal of deferred loan fees, net		237			—		—
Gross-up for PCD accruing ACL		205			—		—
Gross-up for PCD non-accruing ACL		10			—		—
Total adjustments to loans	$	(25,310	)	$	8,223	$	10,777

(5)

Balance sheet adjustment for the reversal of MBF’s existing allowance for loan losses of $5.1 million. Balance sheet adjustment of $215 thousand for PCD loan fair value assigned to the allowance for credit losses. Balance sheet and equity adjustment for the CECL allowance for credit losses of $2.9 million for acquired non-PCD loans (known as the “CECL Credit Double Count”). The pro forma income statement does not include a one-time provision expense of $2.9 million related to CECL allowance for credit losses for non-PCD loans as it is shown as a direct retained earnings adjustment.

				Statements of Income
	Balance Sheet September 30, 2023			Nine Months Ended September 30, 2023		Twelve Months ended December 31, 2022
Allowance for loan losses
Reversal of existing allowance for loan losses	$	5,153		$	—	$	—
PCD Accruing allowance for credit losses		(205	)		—		—
PCD Non-Accruing allowance for credit losses		(10	)		—		—
Total adjustments to allowance for loan losses		4,938			—		—
CECL ACL for Non-PCD loans (“CECL Credit Double Count”)		(2,932	)		—		—
Total balance sheet adjustments to allowance for credit losses	$	2,006		$	—	$	—

(6)	Balance sheet and income statement adjustment to reflect the fair value of premises of $2.5 million and amortized over the expect life using the straight-line method over 40 years.

9 | P a g e

				Income Statement
		Balance Sheet September 30, 2023			Nine Months Ended September 30, 2023			Twelve Months ended December 31, 2022
Premises
Premises fair value	$	(2,549	)	$	(20	)	$	(27	)
Total balance sheet adjustments to premises	$	(2,549	)	$	(20	)	$	(27	)

(7)

Balance sheet adjustment to reflect the net deferred tax asset, at a rate of 21.00%, related to fair value adjustments, CECL allowance for credit losses for Non-PCD Loans, deferred tax asset adjustment to conform to MCFC’s tax position, and tax benefits related to MCFC one-time merger related charges. The related income tax provision related to these adjustments was applied using an effective tax rate of 21.00%.

				Statements of Income
	Balance Sheet September 30, 2023			Nine Months Ended September 30, 2023		Twelve Months ended December 31, 2022
Tax impact
Fair value adjustments	$	2,696		$	1,405	$	1,880
Reversal of existing deferred fees, net		(50	)		—		—
Reversal of existing allowance for loan losses		(1,113	)		—		—
Reversal of merger related expenses for MCFC and MBF		—			107		—
Accrual of merger related expenses for MBF		652			—		—
Tax impact on purchase accounting items effecting goodwill		2,185			1,512		1,880
Accrual of merger related expenses for MCFC		322			—		—
Total tax impact	$	2,507		$	1,512	$	1,880

(8)

Balance sheet and income statement adjustment to intangible assets to reflect the fair value of $12.1 million for acquired core deposit intangible asset and the related amortization adjustment based upon the sum-of-the years method over 10 years. Balance sheet and income statement adjustment to reflect the fair value of mortgage servicing rights of $464 thousand and the related amortization adjustment based upon the sum-of-the years method over 7 years.

			Statements of Income
	Balance Sheet September 30, 2023		Nine Months Ended September 30, 2023		Twelve Months ended December 31, 2022
Core deposit intangible asset and mortgage servicing rights
Core deposit intangible asset	$	12,078	$	1,647	$	2,196
Mortgage servicing rights		464		63		83
Total balance sheet adjustment to core deposit intangible asset and mortgage servicing rights	$	12,542	$	1,710	$	2,279

(9)

Balance sheet and income statement adjustment to reflect the fair value discount of $1.9 million on interest-bearing time deposit liabilities based on current interest rates for similar instruments. The adjustment will be recognized using an amortization method based upon the maturities of the deposit liabilities.

				Statements of Income
	Balance Sheet September 30, 2023			Nine Months Ended September 30, 2023		Twelve Months ended December 31, 2022
Certificates of Deposit	$	(1,895	)	$	1,155	$	1,322
	$	(1,895	)	$	1,155	$	1,322

(10)

Borrowings balance sheet and income statement adjustment to reflect the fair value discount of $999 thousand and will be amortized over the life of the borrowing.

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				Income Statement
		Balance Sheet September 30, 2023			Nine Months Ended September 30, 2023		Twelve Months ended December 31, 2022
FHLB borrowings	$	(999	)	$	229	$	302
	$	(999	)	$	229	$	302

(11)

Balance sheet adjustment to reflect the cash payment of one-time merger related charges for MCFC and MBF Bancorp: (a) MBF Bancorp pre-tax charges are estimated at $3.4 million ($2.7 million after-tax), and (b) MCFC pre-tax charges are estimated at $1.8 million ($1.5 million after-tax) with the after-tax cost as reduction to retained earnings. The pro forma income statement does not include one-time merger-related expenses which will be expensed against income when incurred. It is noted that a tax benefit was not taken for certain merger obligations and costs that were not considered to be tax deductible. Additionally, an income statement adjustment was made to exclude a one-time merger and system related expenses that were incurred in 2023 for both MCFC and MBF. MCFC expenses were $1.2 million pre-tax or $1.1 million thousand after tax and MBF were $355 thousand pre-tax and $343 thousand after tax.

			Statements of Income
	Balance Sheet September 30, 2023		Nine Months Ended September 30, 2023		Twelve Months ended December 31, 2022
Other liabilities
Accrual for CCFNB’s merger expenses		1,822		—		—
Accrual for MBF’s merger expenses		3,378		—		—
Total adjustments for other liabilities	$	5,200	$	—	$	—

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Cover	Nov. 11, 2023
Cover [Abstract]
Document Type	8-K/A
Amendment Flag	true
Amendment Description	On November 16, 2023, MCFC filed a Current Report on Form 8-K reporting the completion of the Mergers (the “Original Report”). This Amendment No. 1 to the Original Report is being filed with the Securities and Exchange Commission (the “Commission”) solely to amend and supplement Item 9.01 of the Original Report, as described in Item 9.01 below. This Amendment No. 1 makes no other amendments to the Original Report.
Document Period End Date	Nov. 11, 2023
Entity File Number	000-19028
Entity Registrant Name	MUNCY COLUMBIA FINANCIAL CORPORATION
Entity Central Index Key	0000731122
Entity Tax Identification Number	23-2254643
Entity Incorporation, State or Country Code	PA
Entity Address, Address Line One	232 East Street
Entity Address, City or Town	Bloomsburg,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	232 East Street, Bloomsburg, Pennsylvania 17815
City Area Code	(570)
Local Phone Number	784-4400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	None
Trading Symbol	None
Entity Emerging Growth Company	false
Entity Information, Former Legal or Registered Name	Not Applicable

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