Muncy Columbia sells $9.8M loan portfolio at discount

Rhea-AI Filing Summary

Muncy Columbia Financial Corporation, through its subsidiary Journey Bank, agreed to sell a portfolio of 82 delinquent, nonperforming or reperforming 1-4 family residential mortgage loans to RCF II Loan Acquisition, LP, with Raymond James Mortgage Company, Inc. as facilitator.

The loans have an outstanding principal balance of approximately $9.8 million, and the portfolio will be sold for approximately $9.1 million in cash. The company expects to recognize a pretax charge of about $0.7 million in the quarter ending March 31, 2026 related to this sale. The asset purchase and interim servicing agreement includes customary representations, warranties, covenants, repurchase obligations and indemnification provisions.

Insights

Banking transactions analyst

Journey Bank sells nonperforming mortgage portfolio at a discount, taking a modest pretax charge.

Journey Bank is selling 82 delinquent, nonperforming or reperforming 1-4 family residential mortgages with an outstanding principal balance of $9.8 million for cash proceeds of about $9.1 million. This crystallizes losses upfront but removes problem assets from the balance sheet.

The transaction will generate an expected pretax charge of roughly $0.7 million in the quarter ending March 31, 2026. The agreement includes customary representations, covenants, repurchase obligations and indemnities, which is typical for loan portfolio sales and helps allocate risks among Journey Bank, the purchaser and the facilitator.

Overall impact depends on the size of this portfolio relative to Journey Bank’s total loans and capital, which is not detailed here. Future periodic reports for periods including the quarter ending March 31, 2026 will show how the charge and removal of these loans affect asset quality and earnings.

8-K Event Classification

2 items: 1.01, 9.01

2 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What transaction did Muncy Columbia Financial (CCFN) disclose on January 28, 2026?

Muncy Columbia Financial disclosed that Journey Bank agreed to sell 82 delinquent, nonperforming or reperforming 1-4 family residential mortgage loans. The loans have a principal balance of about $9.8 million and will be sold for roughly $9.1 million in cash to RCF II Loan Acquisition, LP.

How much is the loan portfolio Journey Bank is selling worth and what is the sale price?

The portfolio’s outstanding principal balance is approximately $9.8 million, while the agreed cash purchase price is about $9.1 million. This difference reflects a discount to principal and will result in a pretax charge associated with the sale in the upcoming quarter.

What financial impact will the loan sale have on Muncy Columbia Financial (CCFN)?

The company expects to record a pretax charge of about $0.7 million in the quarter ending March 31, 2026. This charge arises from selling the $9.8 million principal loan portfolio for roughly $9.1 million, crystallizing the loss on these problem credits.

Who are the counterparties in Journey Bank’s mortgage loan portfolio sale?

Journey Bank entered into an Asset Purchase and Interim Servicing Agreement with RCF II Loan Acquisition, LP as purchaser and Raymond James Mortgage Company, Inc. as facilitator. These parties structure and execute the sale and interim servicing of the 1-4 family residential mortgage loans.

What types of loans are included in the portfolio Muncy Columbia Financial is selling?

The portfolio consists of 82 individual 1-4 family residential mortgage loans that are delinquent, nonperforming or reperforming. Selling these loans allows Journey Bank to dispose of higher-risk assets, though it does so at a discount to their outstanding principal balance.

When will the pretax charge from the loan sale be recognized by Muncy Columbia Financial (CCFN)?

The expected pretax charge of approximately $0.7 million from the sale will be recognized in the quarter ending March 31, 2026. That period’s financial statements will reflect both the loss and the removal of the 82 mortgage loans from Journey Bank’s balance sheet.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 01/29/2026 - 02:11 PM Learn about SEC filing dates

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

January 28, 2026

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)	(I.R.S. Employer Identification No.)

1199 Lightstreet Road

Bloomsburg, PA 17815

(Address of principal executive offices)

570-784-4400

(Registrant’s telephone number, including area code)

N/A

(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 Exchange Act:

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

Indicated 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) ☐

If an emerging growth company, indicate by check mark if 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 ☐

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

On January 28, 2026, Journey Bank (the “Bank”), the wholly-owned subsidiary of Muncy Columbia Financial (the “Company”), entered into an Asset Purchase and Interim Servicing Agreement (the “Agreement”) with RCF II Loan Acquisition, LP (the “Purchaser”) and Raymond James Mortgage Company, Inc. (the “Facilitator”), pursuant to which the Bank agreed to sell a portfolio of 82 individual delinquent, nonperforming or reperforming 1-4 family residential mortgage loans. The purchase price was approximately $9.1 million and was paid in cash. The outstanding principal balance of the loans was approximately $9.8 million. The resulting pretax charge of approximately $0.7 million will be recognized during the quarter ending March 31, 2026. The Agreement contains customary representations, warranties, covenants, repurchase obligations and indemnification provisions.

The foregoing summary of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, which is filed as Exhibit 10.1 to this current report on Form 8-K and incorporated herein by reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) Exhibits.

Exhibit Number	Description
10.1*	Asset Purchase and Interim Servicing Agreement, dated January 28, 2026
104	Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL)

* The schedules and attachments to this exhibit have been omitted in accordance with the instructions to Form 8-K. The Company agrees to furnish a copy of any omitted schedule to the U.S. Securities and Exchange Commission upon its request.

SIGNATURE

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.

Date:     January 29, 2026	Muncy Columbia Financial Corporation
	By:	/s/ Joseph K. O’Neill, Jr.
	Name:	Joseph K. O’Neill, Jr.
	Title:	Executive Vice President and Chief Financial Officer