MUNCY COLUMBIA FINANCIAL Corp 8-K

What Happened

• On January 28, 2026, Journey Bank, a wholly owned subsidiary of Muncy Columbia Financial Corp, announced an Asset Purchase and Interim Servicing Agreement with RCF II Loan Acquisition, LP (purchaser) and Raymond James Mortgage Company, Inc. (facilitator) to sell a portfolio of 82 delinquent, nonperforming or reperforming 1–4 family residential mortgage loans.
• The purchaser paid approximately $9.1 million in cash for the loans, whose outstanding principal balance was about $9.8 million. The Company will record a pretax charge of approximately $0.7 million in the quarter ending March 31, 2026.

Key Details

• Parties: Journey Bank (seller), RCF II Loan Acquisition, LP (purchaser), Raymond James Mortgage Co., Inc. (facilitator).
• Loans sold: 82 individual 1–4 family residential mortgage loans (delinquent/nonperforming/reperforming).
• Consideration: ~ $9.1 million cash; outstanding principal ~ $9.8 million.
• Accounting impact: ~ $0.7 million pretax charge to be recognized in Q1 2026.
• Agreement contains customary representations, warranties, covenants, repurchase obligations and indemnification; full agreement filed as Exhibit 10.1.

Why It Matters

• The sale converts a pool of problem loans into cash, reducing the Bank’s nonperforming loan exposure and changing the composition of its assets.
• The transaction will reduce net income in Q1 2026 by the stated pretax charge (~$0.7M) but provides immediate cash proceeds of about $9.1M.
• Investors should note the impact on asset quality metrics, liquidity and quarterly earnings when reviewing upcoming financial results and disclosures.