MUNCY BANK FINANCIAL, INC. Dear Shareholders,
I am pleased to announce the results of another successful quarter for Muncy Bank Financial, Inc. The second quarter 2022 was marked by some of the most significant shifts in interest rates in recent history. The Federal Reserve approved two rate increases during the quarter, a 0.50% increase on May 4, 2022 and a 0.75% increase on June 15, 2022, the largest single increase since 1994. The Federal Reserve continues to telegraph its intent to curb inflation by increasing the fed funds rate from its current level of 1.50% - 1.75% to a range of 3.25% - 3.5% by the end of 2022. In the face of these challenges, Muncy Bank Financial, Inc. continues to perform at a high level. The Bank has been able to successfully deploy excess liquidity, grow its loan portfolio and maintain a stable net interest margin. We believe that we are positioned well to maintain continued profitability through this cycle of rising interest rates for the remainder of 2022 and beyond.
Financial Highlights
Financial highlights for Muncy Bank Financial, Inc. as of and for the six months ended June 30, 2022, compared to the same period in 2021, include:
- Cash dividend increased to $0.76/share compared to $0.72/share in 2021
- Total Assets increased 8% to $606,560,000
- Total Deposits increased 10% to $549,424,000
- Net Loans increased 9% to $454,559,000
- Retained Earnings increased 9% to $54,111,000
- Return on Average Assets was 1.10%
- Return on Average Equity was 12.68%
Net income for the six months ended June 30, 2022 was $3,346,000 or $2.08 per share, compared to $4,253,000 or $2.64 per share for the same period in 2021. Net interest income for the six months ended June 30, 2022 increased to $10,144,000, from $9,155,000 for the same period in 2021. Gains on sales of secondary market mortgages were $90,000 for the six months ended June 30, 2022, compared to $731,000 for the same period of 2021. In the second quarter 2021, the Bank recorded a gain of $1.1 million in connection with proceeds received on bank-owned life insurance policies as well as a pre-tax loss of $364,000 on prepayment of long-term borrowings.
Increased Cash Dividend
Muncy Bank Financial, Inc. paid cash dividends of $0.76 per share through June 30 2022, compared to $0.72 for the same period in 2021, an increase of 6%. The second quarter 2022 dividend represented the 347th consecutive dividend payout dating back to 1935. Muncy Bank Financial Inc. has increased its annual dividend payout since 1990.
Loan and Deposit Growth
The Bank's loan portfolio remained strong with an overall delinquency ratio of 0.36% of gross loans at both June 30, 2022 and June 30, 2021. The allowance for loan losses was $4,889,000 or 1.06% of gross loans at June 30, 2022, compared to $4,490,000 or 1.07% of gross loans at June 30, 2021. Total deposits increased to $549,424,000 at June 30, 2022, compared to $497,712,000 at June 30, 2021.
New Core Banking System
We are pleased to announce that we will be launching a new core banking system effective August 29, 2022. All of our customers will be receiving a letter notifying them of this change, along with a list of affected services. This upgrade is part of our commitment to remain in the forefront of banking technology advances and to enhance the experience for our customers.
With our new South Williamsport office nearing completion, significant investments in technology and our ever-expanding human capital, this is a very exciting time in our storied history. On behalf of the entire Muncy Bank family, we thank you for your continued loyalty and support.
Respectfully,
President and Chief Executive Officer
BOARD OF DIRECTORS
Todd M. Arthur | Robert M. Rabb |
Robert J. Glunk | Stephen M. Tasselli |
Robert P. Hager | Bonnie M. Tompkins |
J. Howard Langdon | David E. Wallis |
Gary M. Peck |
HONORARY DIRECTORS
James L. Muffly, Sr. Arlene R. Opp
Richard H. Lloyd - Director Emeritus
MUNCY BANK FINANCIAL, INC. OFFICERS
Robert J. Glunk, Chairman of the Board, President & CEO Joseph K. O'Neill, Jr., CPA, Senior Vice President, Treasurer Beth A. Benson, Secretary
OFFICE LOCATIONS
MUNCY | HUGHESVILLE |
2 N Main St | 725 Route 405 Hwy |
PO Box 179 | Hughesville, PA 17737 |
Muncy, PA 17756 | (570) 584-5171 |
(570) 546-2211 |
CLARKSTOWN | MONTOURSVILLE |
2175 Route 442 Hwy | 900 N Loyalsock Ave |
PO Box 179 | Montoursville, PA 17754 |
Muncy, PA 17756 | (570) 368-1234 |
(570) 546-2226 |
MUNCY DRIVE THRU | DEWART | ||
319 S Main St | 4880 State Route 44 | ||
PO Box 179 | PO Box 1 | ||
Muncy, PA 17756 | Watsontown, PA 17777 | ||
(570) 940-1930 | (570) 538-2200 |
AVIS | LINDEN | ||
2 W Central Ave | 7520 S Route 220 Hwy | ||
PO Box 146 | Linden, PA 17744 | ||
Avis, PA 17721 | (570) 398-1234 |
- 753-5155
MONTGOMERY
2190 State Route 54
PO Box 33
Montgomery, PA 17752
(570) 547-0123
MuncyBank.com
Toll Free (877) 243-8919
24 Hour Telephone Access Banking
(570) 546-9221 or Toll Free (877) 243-8916
QUARTERLY REPORT
AS OF
JUNE 30, 2022
MUNCY BANK FINANCIAL, INC.
CONSOLIDATED BALANCE SHEET
(In Thousands, Except Share Data) (Unaudited) | June 30, | |||||||||
2022 | 2021 | |||||||||
ASSETS: | ||||||||||
Cash and due from banks | $ | 5,245 | $ | 4,470 | ||||||
Interest-bearing deposits in other financial institutions | 1,080 | 9,525 | ||||||||
Total cash and cash equivalents | 6,325 | 13,995 | ||||||||
Interest-bearing time deposits | 740 | 740 | ||||||||
Available-for-sale debt securities, at fair value | 104,503 | 97,191 | ||||||||
Marketable equity securities, at fair value | 382 | 413 | ||||||||
Restricted investment in bank stocks, at cost | 1,783 | 1,315 | ||||||||
Loans receivable | 459,448 | 420,607 | ||||||||
Allowance for loan losses | (4,889) | (4,490) | ||||||||
Loans, net | 454,559 | 416,117 | ||||||||
Premises and equipment, net | 14,924 | 10,783 | ||||||||
Accrued interest receivable | 1,750 | 1,567 | ||||||||
Bank-owned life insurance | 14,194 | 14,082 | ||||||||
Foreclosed assets held for sale | 46 | 90 | ||||||||
Deferred tax asset, net | 4,623 | 913 | ||||||||
Other assets | 2,731 | 5,500 | ||||||||
TOTAL ASSETS | $ | 606,560 | $ | 562,706 | ||||||
LIABILITIES: | ||||||||||
Interest-bearing deposits | $ | 442,196 | $ | 399,845 | ||||||
Noninterest-bearing deposits | 107,228 | 97,867 | ||||||||
Total deposits | 549,424 | 497,712 | ||||||||
Short-term borrowings | 3,058 | 2,154 | ||||||||
Long-term borrowings | - | - | ||||||||
Accrued interest payable | 213 | 319 | ||||||||
Other liabilities | 5,903 | 5,086 | ||||||||
TOTAL LIABILITIES | 558,598 | 505,271 | ||||||||
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 June 30, 2022 | ||||||||||
and 2021 | 747 | 747 | ||||||||
Additional paid-in capital | 9,297 | 9,297 | ||||||||
Retained earnings | 54,111 | 49,796 | ||||||||
Accumulated other comprehensive (loss) income | (12,211) | 1,577 | ||||||||
Treasury stock, at cost; 185,117 shares at June 30, 2022 and 2021 | (3,982) | (3,982) | ||||||||
TOTAL SHAREHOLDERS' EQUITY | 47,962 | 57,435 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 606,560 | $ | 562,706 | ||||||
CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Share Data) (Unaudited) | Six Months Ended June 30, | ||||||||||
2022 | 2021 | ||||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||
Interest and fees on loans | $ | 9,972 | $ | 9,436 | |||||||
Interest on balances with depository institutions | 34 | 18 | |||||||||
Investment securities: | |||||||||||
Taxable | 342 | 130 | |||||||||
Tax-exempt | 862 | 848 | |||||||||
Dividends | 48 | 47 | |||||||||
TOTAL INTEREST AND DIVIDEND INCOME | 11,258 | 10,479 | |||||||||
INTEREST EXPENSE: | |||||||||||
Interest on deposits | 1,107 | 1,243 | |||||||||
Interest on short-term borrowings | 7 | 5 | |||||||||
Interest on long-term borrowings | - | 76 | |||||||||
TOTAL INTEREST EXPENSE | 1,114 | 1,324 | |||||||||
NET INTEREST INCOME | 10,144 | 9,155 | |||||||||
PROVISION FOR LOAN LOSSES | 150 | 285 | |||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | |||||||||||
9,994 | 8,870 | ||||||||||
NON-INTEREST INCOME: | |||||||||||
Service charges on deposit accounts | 891 | 798 | |||||||||
Realized gains (losses) on available-for-sale debt securities, net | 3 | (17) | |||||||||
(Losses) gains on marketable equity securities | (27) | 22 | |||||||||
Earnings on bank-owned life insurance | 141 | 162 | |||||||||
Gain on bank-owned life insurance benefits | - | 1,094 | |||||||||
Investment services income | 76 | 77 | |||||||||
Trust income | 40 | 136 | |||||||||
Gains on sale of loans | 90 | 731 | |||||||||
Other service charges and fees | 149 | 199 | |||||||||
Other non-interest income | 290 | 307 | |||||||||
TOTAL NON-INTEREST INCOME | 1,653 | 3,509 | |||||||||
NON-INTEREST EXPENSE: | |||||||||||
Salaries and employee benefits | 4,287 | 4,005 | |||||||||
Occupancy | 425 | 371 | |||||||||
Furniture and equipment | 181 | 161 | |||||||||
Data processing | 631 | 777 | |||||||||
Pennsylvania shares tax | 212 | 151 | |||||||||
Federal deposit insurance | 88 | 67 | |||||||||
Automated teller machine expense | 315 | 263 | |||||||||
Professional fees | 398 | 257 | |||||||||
Loss on prepayment of debt | - | 364 | |||||||||
Other non-interest expense | 1,138 | 1,136 | |||||||||
TOTAL NON-INTEREST EXPENSE | 7,675 | 7,552 | |||||||||
INCOME BEFORE INCOME TAX PROVISION | 3,972 | 4,827 | |||||||||
INCOME TAX PROVISION | 626 | 574 | |||||||||
NET INCOME | $ | 3,346 | $ | 4,253 | |||||||
EARNINGS PER SHARE-BASIC AND DILUTED | $ | 2.08 | $ | 2.64 | |||||||
DIVIDENDS PER SHARE | $ | 0.76 | $ | 0.72 | |||||||
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Disclaimer
Muncy Bank Financial Inc. published this content on 30 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 July 2022 15:43:06 UTC.
