Dear Shareholders,
I am pleased to announce our fourth quarter 2021 results. While we continue
to feel the impact of the COVID-19 pandemic, including inflationary pressures
and employment and supply chain constraints, we exit 2021 proud of our accomplishments. The Bank was able to strategically grow the loan portfolio
and worked to deploy excess liquidity from deposit inflows into the investment
portfolio to enhance net interest income in future periods. Net interest income also continued to be positively impacted by fees recognized on forgiven PPP loans, and a further reduction in cost of funds. Our favorable net interest margin and low
level of nonperforming assets continue to drive profitability and shareholder value.
Financial Highlights
Financial highlights for Muncy Bank Financial, Inc. as of and for the year ended December 31, 2021, compared to the same period in 2020, include:
- Special 5% stock dividend in 2021
- Cash dividend increased to $1.46/share compared to $1.41/share in 2020
- Total Assets increased 12% to $594,334,000
- Shareholders' Equity increased 9% to $59,107,000
- Total Deposits increased 16% to $527,512,000
- Net Loans increased 10% to $441,912,000
- Return on Average Assets was 1.33% compared to 1.13% in 2020
- Return on Average Equity was 13.44% compared to 11.05% in 2020
Net income for the year ended December 31, 2021 was $7,635,000 or $4.75 per share, compared to $5,748,000 or $3.57 per share for the same period in 2020. In the second and third quarters of 2021, the Bank recorded total gains 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. Net income for the year ended December 31, 2021 was also positively impacted by recognition of PPP fees and gains on sales of secondary market mortgages of $823,000 and $1,258,000, respectively, compared to $401,000 and $509,000, respectively, for the same period in 2020.
Increased Cash Dividend and Special 5% Stock Dividend
Muncy Bank Financial, Inc. paid cash dividends of $1.46 per share for the year ended December 31, 2021, compared to $1.41 per share for the year ended December 31, 2020, an increase of 4%. Shareholders also received a special 5% stock dividend on March 15, 2021, effectively increasing the total dividend by 9% for 2021. The fourth quarter 2021 dividend represented the 345th consecutive dividend payout dating back to 1935. Muncy Bank Financial Inc. has increased its dividend payout since 1990.
Loan and Deposit Growth
The Bank's loan portfolio remained strong, with an overall delinquency ratio of 0.46% of gross loans at December 31, 2021, compared to 1.21% at December 31, 2020. The allowance for loan losses was $4,738,000 or 1.06% of gross loans at December 31, 2021, compared to $4,268,000 or 1.05% of gross loans at December 31, 2020. Total deposits increased to $527,512,000 at December 31, 2021, compared to $454,106,000 at December 31, 2020.
New South Williamsport Community Office
The construction of our new facility in South Williamsport is now well underway. We are extremely excited about continuing to expand the Muncy Bank Brand into the Williamsport/South Williamsport market area. We look forward to a fourth quarter 2022 opening.
On behalf of our Directors, Officers and Employees, 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
DECEMBER 31, 2021
MUNCY BANK FINANCIAL, INC.
CONSOLIDATED BALANCE SHEET
(In Thousands, Except Share Data) (Unaudited) | December 31, | |||||||||
2021 | 2020 | |||||||||
ASSETS: | ||||||||||
Cash and due from banks | $ | 3,921 | $ | 5,741 | ||||||
Interest-bearing deposits in other financial institutions | 2,162 | 4,573 | ||||||||
Total cash and cash equivalents | 6,083 | 10,314 | ||||||||
Interest-bearing time deposits | 740 | 740 | ||||||||
Available-for-sale debt securities, at fair value | 111,943 | 86,998 | ||||||||
Marketable equity securities, at fair value | 409 | 390 | ||||||||
Restricted investment in bank stocks, at cost | 1,600 | 1,314 | ||||||||
Loans held for sale | 238 | 591 | ||||||||
Loans receivable | 446,650 | 405,920 | ||||||||
Allowance for loan losses | (4,738) | (4,268) | ||||||||
Loans, net | 441,912 | 401,652 | ||||||||
Premises and equipment, net | 11,866 | 9,997 | ||||||||
Accrued interest receivable | 1,571 | 1,723 | ||||||||
Bank-owned life insurance | 14,052 | 15,752 | ||||||||
Foreclosed assets held for sale | - | 160 | ||||||||
Deferred tax asset, net | 1,018 | 880 | ||||||||
Other assets | 2,902 | 1,063 | ||||||||
TOTAL ASSETS | $ | 594,334 | $ | 531,574 | ||||||
LIABILITIES: | ||||||||||
Interest-bearing deposits | $ | 416,570 | $ | 367,923 | ||||||
Noninterest-bearing deposits | 110,942 | 86,183 | ||||||||
Total deposits | 527,512 | 454,106 | ||||||||
Short-term borrowings | 1,875 | 7,554 | ||||||||
Long-term borrowings | - | 10,024 | ||||||||
Accrued interest payable | 256 | 425 | ||||||||
Other liabilities | 5,584 | 5,015 | ||||||||
TOTAL LIABILITIES | 535,227 | 477,124 | ||||||||
SHAREHOLDERS' EQUITY: | ||||||||||
Common stock, par value $0.4167 per share; 3,626,684 shares authorized; | ||||||||||
1,793,475 and 1,708,036 shares issued; 1,608,358 and 1,531,734 shares | ||||||||||
outstanding at December 31, 2021 and 2020, respectively | 747 | 712 | ||||||||
Additional paid-in capital | 9,297 | 6,341 | ||||||||
Retained earnings | 51,987 | 49,692 | ||||||||
Accumulated other comprehensive income | 1,058 | 1,687 | ||||||||
Treasury stock, at cost; 185,117 and 176,302 shares at December 31, | ||||||||||
2021 and 2020, respectively | (3,982) | (3,982) | ||||||||
TOTAL SHAREHOLDERS' EQUITY | 59,107 | 54,450 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 594,334 | $ | 531,574 | ||||||
CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Share Data) (Unaudited) | Year Ended December 31, | |||||||||||
2021 | 2020 | |||||||||||
INTEREST AND DIVIDEND INCOME: | ||||||||||||
Interest and fees on loans | $ | 19,217 | $ | 19,487 | ||||||||
Interest on balances with depository institutions | 54 | 39 | ||||||||||
Investment securities: | ||||||||||||
Taxable | 330 | 344 | ||||||||||
Tax-exempt | 1,716 | 1,428 | ||||||||||
Dividends | 91 | 53 | ||||||||||
TOTAL INTEREST AND DIVIDEND INCOME | 21,408 | 21,351 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 2,330 | 3,374 | ||||||||||
Interest on short-term borrowings | 8 | 16 | ||||||||||
Interest on long-term borrowings | 76 | 182 | ||||||||||
TOTAL INTEREST EXPENSE | 2,414 | 3,572 | ||||||||||
NET INTEREST INCOME | 18,994 | 17,779 | ||||||||||
PROVISION FOR LOAN LOSSES | 550 | 650 | ||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | ||||||||||||
18,444 | 17,129 | |||||||||||
NON-INTEREST INCOME: | ||||||||||||
Service charges on deposit accounts | 1,648 | 1,500 | ||||||||||
Realized (losses) gains on available-for-sale debt securities, net | (28) | 83 | ||||||||||
Gains on marketable equity securities | 18 | 15 | ||||||||||
Earnings on bank-owned life insurance | 313 | 331 | ||||||||||
Gain on bank-owned life insurance benefits | 1,136 | - | ||||||||||
Investment services income | 204 | 145 | ||||||||||
Trust income | 265 | 233 | ||||||||||
Gains on sale of loans | 1,258 | 509 | ||||||||||
Other service charges and fees | 320 | 261 | ||||||||||
Other non-interest income | 375 | 54 | ||||||||||
TOTAL NON-INTEREST INCOME | 5,509 | 3,131 | ||||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 8,321 | 7,423 | ||||||||||
Occupancy | 732 | 627 | ||||||||||
Furniture and equipment | 330 | 349 | ||||||||||
Data processing | 1,409 | 1,434 | ||||||||||
Pennsylvania shares tax | 301 | 325 | ||||||||||
Federal deposit insurance | 147 | 99 | ||||||||||
Automated teller machine expense | 542 | 496 | ||||||||||
Professional fees | 594 | 633 | ||||||||||
Loss on prepayment of debt | 364 | - | ||||||||||
Other non-interest expense | 2,314 | 2,077 | ||||||||||
TOTAL NON-INTEREST EXPENSE | 15,054 | 13,463 | ||||||||||
INCOME BEFORE INCOME TAX PROVISION | 8,899 | 6,797 | ||||||||||
INCOME TAX PROVISION | 1,264 | 1,049 | ||||||||||
NET INCOME | $ | 7,635 | $ | 5,748 | ||||||||
EARNINGS PER SHARE-BASIC AND DILUTED | $ | 4.75 | $ | 3.57 | ||||||||
DIVIDENDS PER SHARE | $ | 1.46 | $ | 1.41 | ||||||||
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Muncy Bank Financial Inc. published this content on 25 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 13:08:32 UTC.