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 UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 WASHINGTON, D.C. 20549

 FORM 10-K

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year-ended December 31, 2024

 OR

 TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition
period from _____________to________________

 Commission file No. 000-19028

 MUNCY COLUMBIA FINANCIAL CORPORATION

 (Exact name of registrant as specified in its charter)

 pennsylvania

 23-2254643

 (State or other jurisdiction of

 (I.R.S. Employer

 incorporation or organization)

 Identification Number)

 232 East Street, Bloomsburg, Pennsylvania

 17815

 (Address of principal executive offices)

 (Zip Code)

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

 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

 Securities registered pursuant to section 12(g)
of the Act: Common Stock, par value $1.25 per share

is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

 Indicate by check mark if the registrant is not
required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No

(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes No

has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.
See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and
"emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer
Accelerated filer Non-accelerated filer
Smaller reporting company 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.

has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report.

 If securities are registered pursuant to Section
12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction
of an error to previously issued financial statements.

 Indicate by check mark whether any of those error
corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's
executive officers during the relevant recovery period pursuant to § 240.10D-1(b).

is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 The aggregate market value of the registrant's
common stock held by non-affiliates at June 30, 2024, the registrant's most recently completed second fiscal quarter, was $ 106,520,960.

 The number of shares of common stock outstanding
at March 7, 2025 was 3,532,713.

 DOCUMENTS INCORPORATED BY REFERENCE

 Portions of the registrant's proxy statement
for the annual meeting of its shareholders to be held April 22, 2025 are incorporated by reference into Parts III and IV of this Annual
Report on Form 10-K. Except as expressly incorporated by reference, the registrant's definitive proxy statement shall not be deemed
to be part of this report.

 MUNCY COLUMBIA FINANCIAL CORPORATION

 FORM 10-K

 Page

 Item 1.

 Business

 Item 1A.

 Risk Factors

 Item 1B.

 Unresolved Staff Comments

 Item 1C.

 Cybersecurity

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosures

 Item 5.

 Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6.

 Reserved

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures about Market Risk

 Item 8.

 Financial Statements and Supplementary Data

 Item 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item 9A

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item 14.

 Principal Accounting Fees and Services

 Item 15.

 Exhibits and Financial Statements Schedules

 SIGNATURES

 INDEX TO EXHIBITS

 Item 1. Business

 General

(the "Corporation") is a registered financial holding company, bank holding company, and Pennsylvania business corporation,
headquartered in Bloomsburg, Pennsylvania. The Corporation has one wholly-owned bank subsidiary, Journey Bank (the "Bank").
A substantial part of the Corporation's business consists of the management and supervision of the Bank. The Corporation's
principal source of income is dividends paid by the Bank. At December 31, 2024, the Corporation, on a consolidated basis, had approximately:

 $1.6 billion in total assets;

 $1.1 billion in gross loans;

 $1.3 billion in deposits; and

 $166 million in stockholders' equity.

 The Corporation and Bank were
formed through a merger in 2023. On April 18, 2023, CCFNB Bancorp, Inc. ("CCFNB") and Muncy Bank Financial, Inc. ("MBF")
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) MBF merged with and into CCFNB, with CCFNB being
the surviving entity, and (ii) The Muncy Bank & Trust Company 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 and First Columbia Bank changed its name
to Journey Bank. Total purchase consideration was $55.1 million, including 1,488,960 shares of the Corporation's common stock issued
with a value of $55,092,000 and cash of $9,000 paid for fractional shares. Holders of MBF common stock prior to the consummation of the
merger held approximately 41.7% of the Corporation's common stock outstanding immediately following the merger.

 The Bank is a state-chartered,
nonmember bank, whose deposits are insured by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation ("FDIC").
The Bank is a full-service commercial bank providing a range of services and products, including time and demand deposit accounts, consumer,
commercial and mortgage loans to individuals and small to medium-sized businesses in its Northcentral Pennsylvania market area. The Bank
also operates a full-service trust department and offers brokerage services through a third-party networking agreement. At December 31,
2024, the Bank had twenty-two branch banking offices located in the Pennsylvania counties of Clinton, Columbia, Lycoming, Montour and
Northumberland.

 Management has determined
that the Corporation has one reportable segment, "Community Banking." All of the Corporation's activities are interrelated,
and each activity is dependent and assessed based on how each of the activities of the Corporation supports the others. The Corporation
considers its branch banking offices to be a single reporting segment, because these branches have similar:

 economic characteristics,

 products and services,

 operating processes,

 delivery systems,

 customer bases, and

 regulatory oversight.

 As of December 31, 2024, the
Corporation had 236 employees on a full-time equivalent basis. The Corporation and the Bank are not parties to any collective bargaining
agreement and employee relations are considered to be good.

 The Bank

 The Bank's legal headquarters
are located at 232 East Street, Bloomsburg, Columbia County, Pennsylvania 17815. The Bank is a locally managed community bank that seeks
to provide personal attention and professional financial assistance to its customers. The Bank serves the needs of individuals and small
to medium-sized businesses. The Bank's business philosophy includes offering direct access to its President and other officers and
providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and
consistently-applied credit policies.

 Regulation and Supervision

 The Corporation and the Bank
operate in a highly regulated industry and are subject to a variety of statutes, regulations, and policies, as well as ongoing regulatory
supervision and review. Significant federal statutes that apply to the Corporation and the Bank include the Gramm Leach Bliley Act ("GLB
Act"), the Bank Holding Company Act ("BHCA"), the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank
Act"), the USA Patriot Act, the Federal Reserve Act and the Federal Deposit Insurance Act. The Bank is subject primarily to the
provisions of the Federal Deposit Insurance Act and, as a state-chartered financial institution, to the Pennsylvania Banking Code of 1965.
In general, these statutes, regulations promulgated in accordance with these

 statutes, and interpretations of the statutes and regulations
by the banking regulatory agencies establish the eligible business activities of the Corporation and the Bank, certain acquisition and
merger restrictions, limitations on intercompany transactions, such as loans and dividends, and capital adequacy requirements, among other
things. These laws, regulations and policies are subject to frequent change and the Corporation takes measures to comply with applicable
requirements. The following summarizes some of the more significant provisions of these laws as they relate to the Corporation and the
Bank. To the extent that the following information describes statutory or regulatory provisions, it is qualified in its entirety by reference
to the particular statutory provisions. Any change in applicable law or regulation may have a material effect on the business and prospects
of the Corporation and the Bank.

 Financial and Bank Holding Company Activities

 As a financial holding company,
the Corporation may engage in, and acquire companies engaged in, activities that are considered "financial in nature", as
defined by the GLB Act and Federal Reserve Board interpretations. These activities include, among other things, securities underwriting,
dealing and market-making, sponsoring mutual funds and investment companies, insurance underwriting and agency activities, and merchant
banking. If any banking subsidiary of the Corporation ceases to be "well capitalized" or "well managed" under
applicable regulatory standards, the Federal Reserve Board may, among other things, place limitations on the Corporation's ability
to conduct the broader financial activities permissible for financial holding companies or, if the deficiencies persist, require the Corporation
to divest the banking subsidiary. In addition, if any banking subsidiary of the Corporation receives a Community Reinvestment Act rating
of less than satisfactory, the Corporation would be prohibited from engaging in any additional activities other than those permissible
for bank holding companies that are not financial holding companies. The Corporation may engage directly or indirectly in activities considered
financial in nature, either de novo or by acquisition, as long as it gives the Federal Reserve Board after-the-fact notice of the new
activities.

 Interstate Banking and Branching

 The federal banking agencies
are generally authorized to approve interstate bank merger transactions. The Dodd-Frank Act amended federal banking law to permit banks
to establish de novo branches in other states to the same extent as a bank chartered by that state would be so permitted. The interstate
banking and branching provisions of the federal banking laws would permit the Bank to merge with banks in other states and branch into
other states and would also permit banks from other states to acquire banks in the Bank's market area and to establish de novo branches
in the Bank's market area.

 Control Acquisitions

 The Change in Bank Control
Act prohibits a person or group of persons from acquiring "control" of a bank holding company, unless the Federal Reserve
Board has been notified and has not objected to the transaction.

 Under a rebuttable presumption
established by the Federal Reserve Board, the acquisition of 10% or more of a class of voting stock of a bank holding company with a class
of securities registered under Section 12 of the Exchange Act would, under the circumstances set forth in the presumption, constitute
acquisition of control of the bank holding company. In addition, a company is required to obtain the approval of the Federal Reserve Board
under the Bank Holding Company Act before acquiring 25% (5% in the case of an acquirer that is a bank holding company) or more of any
class of outstanding voting stock of a bank holding company, or otherwise obtaining control or a "controlling influence" over
that bank holding company.

 Liability for Banking Subsidiaries

 Under Federal Reserve Board
policy, a bank holding company is expected to act as a source of financial and managerial strength to each of its subsidiary banks and
to commit resources to their support. This support may be required at times when the bank holding company may not have the resources to
provide it. Similarly, under the cross-guarantee provisions of the Federal Deposit Insurance Act, the FDIC can hold any FDIC-insured depository
institution liable for any loss suffered or anticipated by the FDIC in connection with (1) the "default" of a commonly controlled
FDIC-insured depository institution; or (2) any assistance provided by the FDIC to a commonly controlled FDIC-insured depository institution
"in danger of default".

 Capital Requirements

 The federal banking agencies
approved final capital rules in July 2013 that substantially amend the existing capital rules for banks and bank holding companies. The
new rules reflect, in part, certain standards initially adopted by the Basel Committee on Banking and Supervision in December 2010 (commonly
known as Basel III), as well as requirements contemplated by the Dodd-Frank Act.

 The new rules include a new
minimum ratio of common equity tier 1 capital to risk-weighted assets of 4.5% and a common equity tier 1 capital conservation buffer of
2.5% of risk-weighted assets, raise the minimum ratio of tier 1 capital to risk-weighted assets from 4% to 6% and include a minimum leverage
ratio of 4%. Both the Corporation and the Bank comply with these ratios. The new rules also implement strict eligibility criteria for
regulatory capital instruments and improve the methodology for calculating risk-weighted assets to enhance risk sensitivity.

 During 2018, the FRB raised
the threshold of its "Small Bank Holding Company" exemption to the application of consolidated capital requirements for qualifying
small bank holding companies from $1 billion to $3 billion of consolidated assets. Consequently, qualifying bank holding companies having
less than $3 billion of consolidated assets are not subject to the consolidated capital requirements unless otherwise directed by the
FRB. As of December 31, 2024, the Corporation qualifies as a small bank holding company and, while it complies with the consolidated capital
requirements, it is not subject to regulation in accordance with the consolidated capital requirements.

 Additional information concerning
the Corporation and the Bank with respect to capital requirements is incorporated by reference from Note 14, "Regulatory Matters",
of the "Notes to Consolidated Financial Statements" included under Item 8 of this report, and from the "Capital Resources"
section of the "Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations",
included under Item 7 of this report.

 FDICIA

 The Federal Deposit Insurance
Corporation Improvement Act of 1991 ("FDICIA"), and the regulations promulgated under FDICIA, among other things, established
five capital categories for insured depository institutions – well capitalized, adequately capitalized, undercapitalized, significantly
undercapitalized and critically undercapitalized – and requires federal bank regulatory agencies to implement systems for "prompt
corrective action" for insured depository institutions that do not meet minimum capital requirements based on these categories.
Unless a bank is well capitalized, it is subject to restrictions on its ability to offer brokered deposits and on certain other aspects
of its operations. An undercapitalized bank must develop a capital restoration plan and its parent bank holding company must guarantee
the bank's compliance with the plan up to the lesser of 5% of the bank's assets at the time it became undercapitalized and
the amount needed to comply with the plan. As of December 31, 2024, the Bank was considered well capitalized based on the guidelines implemented
by the bank's regulatory agencies.

 Dividend and Share Repurchase Restrictions

 The Corporation is a legal
entity separate and distinct from the Bank. The Corporation's revenues (on a parent company only basis) and its ability to pay dividends
to its shareholders, or repurchase shares from its shareholders, are almost entirely dependent upon the receipt of dividends from the
Bank. The right of the Corporation, and consequently the rights of its creditors and shareholders to participate in any distribution of
the assets or earnings of any subsidiary through the payment of such dividends or otherwise is necessarily subject to the prior claims
of creditors of the subsidiary (including depositors) except to the extent that claims of the Corporation, in its capacity as a creditor,
may be recognized. Additionally, the ability of the Bank to pay dividends to the Corporation is subject to Pennsylvania state law and
various regulatory restrictions.

 The declaration of cash dividends
on the Corporation's common stock, or the repurchase of shares of its common stock, is at the discretion of its board of directors,
and any decision to declare a dividend, or repurchase shares, is based on a number of factors, including, but not limited to, earnings,
prospects, financial condition, regulatory capital levels, applicable covenants under any credit agreements, notes and other contractual
restrictions, Pennsylvania law, federal bank regulatory law, and other factors deemed relevant.

 Deposit or Preference Statute

 In the "liquidation
or other resolution" of an institution by any receiver, U.S. federal law provides that deposits and certain claims for administrative
expenses and employee compensation against the insured depository institution would be afforded a priority over the general unsecured
claims against that institution, including federal funds and letters of credit.

 Other Federal Laws and Regulations

 The Corporation's operations
are subject to additional federal laws and regulations applicable to financial institutions, including, without limitation:

 Privacy provisions of the GLB Act and related regulations, which require us to maintain privacy policies
intended to safeguard customer financial information, to disclose the policies to our customers and to allow customers to "opt out"
of having their financial service providers disclose their confidential financial information to non-affiliated third parties, subject
to certain exceptions;

 Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial
records and prescribes procedures for complying with administrative subpoenas of financial records;

 Consumer protection rules for the sale of insurance products by depository institutions, adopted pursuant
to the requirements of the GLB Act; and

 USA Patriot Act, which requires financial institutions to take certain actions to help prevent, detect
and prosecute international money laundering and the financing of terrorism.

 Sarbanes-Oxley Act of 2002

 On July 30, 2002, the Sarbanes-Oxley
Act of 2002 was enacted. The Sarbanes-Oxley Act represents a comprehensive revision of laws affecting corporate governance, accounting
obligations and corporate reporting. The Sarbanes-Oxley Act is applicable to all companies, such as the Corporation, with equity securities
registered or that file reports under the Securities Exchange Act of 1934. In particular, the Sarbanes-Oxley Act established: (i) new
requirements for audit committees, including independence, expertise, and responsibilities; (ii) additional responsibilities regarding
financial statements for the chief executive officer and chief financial officer; (iii) new standards for auditors and regulation of audits;
(iv) increased disclosure and reporting obligations for the company and its directors and executive officers; and (v) new and increased
civil and criminal penalties for violations of the securities laws. Many of the provisions were effective immediately while other provisions
became effective over a period of time and are subject to rulemaking by the SEC.

 FDIC Insurance and Assessments

 Journey Bank is fully insured
by the FDIC up to the deposit insurance limit of $250,000 per depositor, per FDIC insured institution, and per ownership category, in
accordance with applicable laws and regulations. The assessment rate paid by each FDIC member institution is based on its relative risks
of default as measured by regulatory capital ratios and other factors. Specifically, the assessment rate is based on the institution's
capitalization risk category and supervisory subgroup category. An institution's capitalization risk category is based on the institution's
capitalization and supervisory ratings. An institution's supervisory subgroup category is based on the FDIC's assessment of
the financial condition of the institution and the probability that FDIC intervention or other corrective action will be required. The
FDIC may terminate insurance of deposits upon a finding that an institution has engaged in unsafe and unsound practices, is in an unsafe
or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC.

 The base for deposit insurance
assessments is average consolidated total assets less average tangible equity. Assessment rates are calculated using formulas that take
into account the risk of the institution being assessed.

 The FDIC may increase or decrease
the assessment rate schedule in order to manage the Deposit Insurance Fund ("DIF") to prescribed statutory target levels.
An increase in the risk category for a subsidiary bank or in the assessment rates could have an adverse effect on such bank's and,
consequently, the holding company's earnings. The FDIC may terminate deposit insurance if it determines the institution involved
has engaged in or is engaging in unsafe or unsound banking practices, is in an unsafe or unsound condition, or has violated applicable
laws, regulations or orders.

 On May 11, 2023, the FDIC
proposed a special assessment to make up for losses to the deposit insurance fund caused by the decision of bank regulators to declare
a systemic exception in the failures of Silicon Valley Bank and Signature Bank. Starting with the first quarter of 2024, the FDIC would
impose a special assessment on the amount of an independent bank's estimated uninsured deposits in excess of $5 billion as of December,
2022. Banks with less than $5 billion in assets, such as Journey Bank, would not be subject to the special assessment.

 Dodd-Frank Wall Street Reform and Consumer
Protection Act

 On July 21, 2010, the Dodd-Frank
Act was signed into law. The Dodd-Frank Act is intended to affect a fundamental restructuring of federal banking regulation. Among other
things, the Dodd-Frank Act creates a new Financial Stability Oversight Council to identify systemic risks in the financial system and
gives federal regulators new authority to take control of and liquidate financial firms. The Dodd-Frank Act additionally creates a new
independent federal regulator to administer federal consumer protection laws. To date, the following provisions of the Dodd-Frank Act
are considered to be of the greatest significance to the Corporation:

 expands the authority of the FRB to examine bank holding companies and their subsidiaries, including insured
depository institutions;

 requires a bank holding company to be well capitalized and well managed to receive approval of an interstate
bank acquisition;

 provides mortgage reform provisions regarding a customer's ability to pay and making more loans
subject to provisions for higher-cost loans and new disclosures;

 created the Consumer Financial Protection Bureau (the "CFPB") that has rulemaking authority
for a wide range of consumer protection laws that apply to all banks and has broad powers to supervise and enforce consumer protection
laws;

 made permanent the $250,000 limit for federal deposit insurance at all insured depository institutions;

 includes additional corporate governance and executive compensation requirements on companies subject
to the Exchange Act;

 permits FDIC-insured banks to pay interest on business demand deposits;

 requires that holding companies and other companies that directly or indirectly control an insured depository
institution serve as a source of financial strength;

 created the Financial Stability Oversight Council with authority to identify institutions and practices
that might pose a systemic risk; and

 permits national and state banks to establish interstate branches to the same extent as the branch host
state allows establishment of in-state branches.

 C onsumer Financial Protection
Bureau and Consumer Lending Regulation. The Dodd-Frank Act created the CFPB, which is granted broad rulemaking, supervisory and enforcement
powers under various federal consumer financial protection laws, including the Equal Credit Opportunity Act, Truth in Lending Act ("TILA"),
Real Estate Settlement Procedures Act ("RESPA"), Fair Credit Reporting Act, Fair Debt Collection Practices Act, Consumer Financial
Privacy provisions of the Gramm-Leach-Bliley Act, and certain other statutes. The CFPB has examination and primary enforcement authority
with respect to depository institutions with $10 billion or more in assets. Smaller institutions are subject to rules promulgated by the
CFPB but continue to be examined and supervised by federal banking regulators for consumer compliance purposes. The CFPB has authority
to prevent unfair, deceptive or abusive practices in connection with the offering of consumer financial products. For example, the Dodd-Frank
Act authorizes the CFPB to establish certain minimum standards for the origination of residential mortgages including, in certain circumstances,
a determination of the borrower's ability to repay. In addition, the Dodd-Frank Act allows certain borrowers to raise certain defenses
to foreclosure if they receive any loan other than a "qualified mortgage" as defined by the CFPB. The Dodd-Frank Act permits
states to adopt consumer protection laws and standards that are more stringent than those adopted at the federal level and, in certain
circumstances, permits state attorneys general to enforce compliance with both the state and federal laws and regulations.

 The CFPB's rulemaking,
examination and enforcement authority has and will continue to significantly affect financial institutions offering consumer financial
products and services, including the Corporation and the Bank. These regulatory activities may limit the types of financial services and
products the Bank may offer, which in turn may reduce the Corporation's revenues.

 Community Reinvestment Act

 The Community Reinvestment
Act requires the FDIC to evaluate the Bank's performance in helping to meet the credit needs of the entire community it serves,
including low- and moderate-income neighborhoods, consistent with safe and sound banking operations, and to take this record into consideration
when evaluating certain applications, such as applications to establish, relocate or close branch offices and applications in connection
with mergers and other acquisition transactions. On October 23, 2023, the FDIC and the other federal banking agencies approved changes
to their CRA regulations, replacing the existing tests with four new tests and associated performance metrics. The new CRA regulations
were to become effective on January 1, 2026. Early in 2024, a federal judge issued an injunction staying the effective date of the CRA
regulations. The injunction has been appealed by the federal banking agencies, but remains in effect as of the date of this annual report.
The effective dates will be extended for each day the injunction remains in place, pending the resolution of the lawsuit. The Bank achieved
a rating of "outstanding" on its most recent CRA examination dated December 5, 2022.

 Commercial Real Estate Concentrations

 Lending operations of commercial
banks may be subject to enhanced scrutiny by federal banking regulators based on a bank's concentration of commercial real estate
loans. On December 6, 2006, the federal banking regulators issued final guidance to remind financial institutions of the risk posed by
commercial real estate, or CRE, lending concentrations, and on December 18, 2015, the federal bank regulators issued additional guidance
on prudent risk management for CRE lending. CRE loans generally include land development, construction loans, and loans secured by multifamily
property, and nonfarm, nonresidential real property where the primary source of repayment is derived from rental income associated with
the property. The guidance prescribes the following guidelines for examiners to help identify institutions that are potentially exposed
to significant CRE risk and may warrant greater supervisory scrutiny:

 total reported loans for construction, land development and other land, or C&D, represent 100% or
more of the institution's total capital; or

 Total CRE loans represent 300% or more of the institution's total capital, and the outstanding balance
of the institution's CRE loan portfolio has increased over 50% or more.

 As of December 31, 2024, the
Bank did not exceed either guideline threshold.

 Environmental

 The Corporation has no material
ongoing costs related to compliance with federal, state, or local environmental laws. From time to time, the Bank originates loans with
special environmental considerations. The Bank's lending policy outlines policies and procedures related to loans with special environmental
considerations, including the need to obtain phase I/II environmental assessments. Generally, the cost of these assessments is covered
by the borrower.

 Future Legislation

 Changes to the laws and regulations
to which the Corporation and the Bank are subject can affect the operating environment of both the Corporation and the Bank in substantial
and unpredictable ways. The Corporation cannot accurately predict whether those changes in laws and regulations will occur, and, if those
changes occur, the ultimate effect they would have upon the financial condition or results of operations of the Corporation. This is also
true of federal legislation particularly given the current volatile environment.

 Human Capital Resources

 We recognize the importance
of human capital resources as a cornerstone of our business. The Corporation's key human capital management objectives are to attract
and retain highly qualified individuals that fit our values and culture. The Corporation is an Equal Opportunity and Affirmative Action
Employer. We recruit, employ, train, compensate, and promote without regard to race, religion, creed, color, national origin, age, gender,
sexual orientation, gender identity, marital status, disability, veteran status, or any other basis protected by applicable federal, state
or local law.

 Available Information

 The
Corporation files reports, proxy and information statements and other information electronically with the SEC. The SEC maintains an Internet
site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the
SEC. The SEC's website address is  The Corporation makes its Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K and amendments thereto available through its website at
The information contained on our website is not included as a part of, or incorporated by reference in, this Annual Report on Form 10-K.
These reports may also be obtained free of charge as soon as practicable after filing or furnishing them to the SEC upon request by sending
an email to investorrelations@journeybank.com. Information may also be obtained via written request to Muncy Columbia Financial
Corporation, Attention: Chief Financial Officer, 232 East Street, Bloomsburg, PA 17815.

 Item 1A. Risk Factors

 The operations and financial
results of the Corporation are subject to various risks and uncertainties, including those described below. The risks and uncertainties
described below are not the only ones the Corporation faces. Additional risks and uncertainties the Corporation is unaware of, or currently
believes are not material, may also become important factors affecting the Corporation. If any of the following risks occur, the Corporation's
business, financial condition, operating results and prospects could be materially and adversely affected. In that event, the price of
the Corporation's common stock could decline.

 Risks Relating to the Financial Services Industry

 Events impacting the financial services
industry may adversely affect the business of the Corporation and the market price of its common stock.

 Developments and events in
the financial services industry, including the well-publicized failures of several institutions in 2023 and more recently, have resulted
in decreased confidence in banks among depositors, other counterparties and investors, as well as significant disruption and volatility
of equity and other securities of banks in the capital markets. These events have occurred against the backdrop of a heighted interest
rate environment which, among other things, has resulted in unrealized losses in longer duration securities and loans held by banks, and
a corresponding decrease in shareholders' equity and bank capital levels, impacting the dynamics in the competition for bank deposits,
and may increase the risk of a potential recession. These events and developments could materially and adversely impact the business or
financial condition of the Corporation, including through potential liquidity pressures, reduced net interest margins, and potential increased
credit losses. These events and developments have, and could continue to, adversely impact the market price and volatility
of the Corporation's common stock. These events may also result in changes to laws or regulations governing banks and bank holding
companies or result in the impositions of restrictions through supervisory or enforcement activities, including higher capital requirements,
which could have a material impact on the businesses of the Corporation. The cost of resolving the failures may prompt the FDIC to increase
its premiums above the recently increased levels or to issue additional special assessments.

 Risks Relating to the Corporation's Business

 Changes in economic conditions, in particular
an economic slowdown in central Pennsylvania, could materially and negatively affect the Corporation's business.

 The Corporation's business
is directly impacted by factors such as economic, political and market conditions, broad trends in industry and finance, legislative and
regulatory changes, changes in government monetary and fiscal policies and inflation, all of which are beyond the Corporation's
control. Any deterioration in economic conditions, whether caused by national or local concerns, and in particular in Pennsylvania, could
result in the following consequences, any of which could hurt the Corporation's business materially: loan delinquencies may increase;
problem assets and foreclosures may increase; demand for the Corporation's products and services may decrease; low cost or noninterest
bearing deposits may decrease; and collateral for loans made by the Corporation, especially real estate, may decline in value, reducing
customers' borrowing power and reducing the value of assets and collateral associated with the Corporation's existing loans.

 An economic downturn or prolonged
recession would likely result in further deterioration of the quality of the Corporation's loan portfolio and reduce the Corporation's
level of deposits, which in turn would hurt its business. If the Corporation experiences an economic downturn or a prolonged economic
recession occurs in the economy as a whole, borrowers will be less likely to repay their loans as scheduled. Unlike many larger institutions,
the Corporation is not able to spread the risks of unfavorable local economic conditions across a large number of diversified local economies.
An economic downturn could, therefore, result in losses that materially and adversely affect the Corporation's business.

 The small- and medium-sized business target
market may have fewer financial resources to weather a downturn in the economy.

 The Corporation targets its
commercial development and marketing strategy to serve the banking and financial services needs of small- and medium-sized businesses.
These businesses generally have fewer financial resources in terms of capital or borrowing capacity than larger entities. If general economic
conditions negatively impact this major economic sector in the markets in which the Corporation operates, its results of operations and
financial condition, as well as the value of its securities, may be adversely affected.

 Competition with other financial institutions
may have an adverse effect on the Corporation's ability to retain and grow its client base, which could have a negative effect on
its financial condition or results of operations.

 The banking and financial
services industry is very competitive and includes services offered from other banks, savings and loan associations, credit unions, mortgage
companies, other lenders, and institutions offering uninsured investment alternatives. Legal and regulatory developments have made it
easier for new and sometimes unregulated competitors to compete with the Corporation. The financial services industry has and is experiencing
an ongoing trend towards consolidation in which fewer large national and regional banks and other financial institutions are replacing
many smaller and more local banks. These larger banks and other financial institutions hold a large accumulation of assets and have significantly
greater resources and a wider geographic presence or greater accessibility. In some instances, these larger entities operate without the
traditional brick and mortar facilities that restrict geographic presence. Some competitors have more aggressive marketing campaigns and
better brand recognition, and are able to offer more services, more favorable pricing or greater customer convenience than the Corporation.
In addition, competition has increased from other banks and other financial services providers that target the Corporation's existing
or potential customers. As consolidation continues among large banks, the Corporation expects other smaller institutions to try to compete
in the markets the Corporation plans to serve. This competition could reduce the Corporation's net income by decreasing the number
and size of the loans that it originates and the interest rates it charges on these loans. Additionally, these competitors may offer higher
interest rates on deposits, which could decrease the deposits the Corporation attracts or require it to increase rates to retain existing
deposits or attract new deposits. Increased deposit competition could adversely affect the Corporation's ability to generate the
funds necessary for lending operations which could increase its cost of funds.

 The financial services industry
could become even more competitive as a result of legislative, regulatory and technological changes and continued consolidation. Banks,
securities firms and insurance companies can merge as part of a financial holding company, which can offer virtually any type of financial
service, including banking, securities underwriting, insurance (both agency and underwriting) and merchant banking. Technological developments
have allowed competitors, including some non-depository institutions, to compete more effectively in local markets and has expanded the
range of financial products, services and capital available to the Corporation's target customers. If the Corporation is unable
to implement, maintain and use such technologies effectively, it may not be able to offer products or achieve cost-efficiencies necessary
to compete in the industry. In addition, some of these competitors have fewer regulatory constraints and lower cost structures.

 Liquidity needs could adversely affect the
Corporation's financial condition and results of operation.

 The primary sources of funds
of the Corporation are customer deposits and loan repayments. While scheduled loan repayments are a relatively stable source of funds,
they are subject to the ability of borrowers to repay the loans. The ability of borrowers to repay loans can be adversely affected by
a number of factors, including changes in economic conditions, adverse trends or events affecting business industry groups, reductions
in real estate values or markets, business closings or lay-offs, inclement weather, which could be exacerbated by potential climate change,
natural disasters and international instability.

 Additionally, deposit levels
may be affected by a number of factors, including rates paid by competitors, general interest rate levels, regulatory capital requirements,
returns available to customers on alternative investments and general economic conditions. Accordingly, the Corporation may be required
from time to time to rely on secondary sources of liquidity to meet withdrawal demands or otherwise fund operations. Such sources include
proceeds from Federal Home Loan Bank advances, sales of investment securities and loans, and federal funds lines of credit from correspondent
banks, as well as out-of-market time deposits. While the Corporation believes that these sources are currently adequate, there can be
no assurance they will be sufficient to meet future liquidity demands, particularly if the Corporation continues to grow and experience
increasing loan demand. The Corporation may be required to slow or discontinue loan growth, capital expenditures or other investments
or liquidate assets should such sources not be adequate.

 Changes in prevailing interest rates may
reduce the Corporation's profitability.

 The Corporation's results
of operations depend in large part upon the level of its net interest income, which is the difference between interest income from interest-earning
assets, such as loans and investment securities, and interest expense on interest-bearing liabilities, such as deposits and other borrowings.
Depending on the terms and maturities of the Corporation's assets and liabilities, a significant change in interest rates could
have a material adverse effect on its profitability. Many factors cause changes in interest rates, including governmental monetary policies
and domestic and international economic and political conditions. While the Corporation intends to manage the effects of changes in interest
rates by adjusting the terms, maturities, and pricing of its assets and liabilities, its efforts may not be effective, and its financial
condition and results of operations could suffer.

 The Corporation may not be able to adequately
anticipate and respond to changes in market interest rates.

 The Corporation may be unable
to anticipate changes in market interest rates, which are affected by many factors beyond its control including, but not limited to, inflation,
recession, unemployment, money supply, monetary policy, and other changes that affect financial markets, both domestic and foreign. The
Corporation's net interest income is affected not only by the level and direction of interest rates, but also by the shape of the
yield curve and relationships between interest sensitive instruments and key index rates, as well as balance sheet growth, customer loan
and deposit preferences, and the timing of changes in these variables. In the event interest rates increase, the Corporation's interest
costs on liabilities may increase more rapidly than its income on interest earning assets, resulting in a deterioration of its net interest
margin. As such, fluctuations in interest rates could have a material adverse effect on the Corporation's financial condition and
results of operations.

 Significant increases in interest rates
may affect customer loan demand and payment habits.

 Significant increases in market
interest rates, or the perception that an increase may occur, could adversely impact the Bank's ability to generate new loans. An
increase in market interest rates may also adversely impact the ability of adjustable-rate borrowers to meet repayment obligations, thereby
causing nonperforming loans and loan charge-offs to increase in these mortgage products.

 If the Bank's loan growth exceeds
that of its deposit growth, then the Bank may be required to obtain higher cost sources of funds.

 Our growth strategy depends
upon generating an increasing level of loans at the Bank while maintaining a low level of loan losses for the Bank. As the Bank's
loans grow, it is necessary for the Bank's deposits to grow at a comparable pace in order to avoid the need for the Bank to obtain
other sources of loan funds at higher costs. If the Bank's loan growth exceeds the deposit growth, the Bank may have to obtain other
sources of funds at higher costs which could adversely affect our earnings.

 The Corporation's decisions regarding
allowance for credit losses and credit risk may materially and adversely affect its business.

 Making loans and other extensions
of credit is an essential element of the Corporation's business. Although the Corporation seeks to mitigate risks inherent in lending
by adhering to specific underwriting practices, the Corporation's loans and other extensions of credit may not be repaid. The risk
of nonpayment is affected by a number of factors, including:

 the duration of the credit;

 credit risks of a particular customer;

 changes in economic and industry conditions; and

 in the case of a collateralized loan, risks resulting from uncertainties about the future
value of the collateral.

 The Corporation attempts
to maintain an appropriate allowance for credit losses to provide for probable losses in its loan portfolio. The Corporation periodically
determines the amount of the allowance based on consideration of several factors, including but not limited to:

 an ongoing review of the quality, mix, and size of the Corporation's overall loan portfolio;

 the Corporation's historical loan loss experience;

 evaluation of current and future economic conditions;

 regular reviews of loan delinquencies and loan portfolio quality;

 ongoing review of financial information provided by borrowers; and

 the amount and quality of collateral, including guarantees, securing the loans.

 The determination of the
appropriate level of the allowance for credit losses inherently involves a high degree of subjectivity and requires the Corporation to
make significant estimates of current credit risks and future trends, all of which may undergo material changes. Deterioration in economic
conditions affecting borrowers, new information regarding existing loans, identification of additional problem loans and other factors,
both within and outside of the Corporation's control, may require an increase in the allowance for credit losses. In addition, regulatory
agencies periodically review the Corporation's allowance for credit losses and may require an increase in the provision for credit
losses or the recognition of further loan charge-offs, based on judgments different than those of management. If charge-offs in future
periods exceed the allowance for credit losses, the Corporation will need additional provisions to increase the allowance for credit losses.
Any increases in the allowance for credit losses will result in a decrease in net income and, possibly, capital, and may have a material
adverse effect on the Corporation's financial condition and results of operations.

 The Corporation may have higher credit losses
than it has allowed for in its allowance for credit losses.

 The Corporation's actual
credit losses could exceed its allowance for credit losses and therefore its allowance for credit losses may not be adequate. Industry
experience shows that a portion of loans will become delinquent and a portion of loans will require partial or entire charge-off. Regardless
of the underwriting criteria utilized, losses may be experienced as a result of various factors beyond the Corporation's control,
including among other things, changes in market conditions affecting the value of loan collateral and problems affecting borrower credit.

 Our reliance upon the accuracy and completeness
of information about customers and counterparties could adversely affect our financial condition and results of operations.

 In deciding whether to extend
credit or enter into other transactions with customers and counterparties, we rely upon information furnished by or on behalf of customers
and counterparties, including financial statements, credit reports and other financial information. We also may rely upon representations
of those customers and counterparties, or third parties such as auditors or appraisers, as to the accuracy and completeness of that information.
If this information is inaccurate, we could experience a material adverse impact on our results of operations and financial condition.

 Adverse changes in the market value of securities
and investments that we manage for others may negatively impact the growth level of the Bank's non-interest income.

 The Bank provides a broad
range of trust and investment management services for estates, trusts, agency accounts, and individual and employer sponsored retirement
plans. The market value of the securities and investments managed by the Bank may decline due to factors outside the Bank's control.
Any such adverse changes in the market value of the securities and investments could negatively impact the growth of the non-interest
income generated from providing these services.

 The Bank's branch locations may be
negatively affected by changes in demographics.

 The Bank has strategically
selected locations for bank branches based upon regional demographics. Any changes in regional demographics may impact the Bank's
ability to reach or maintain profitability at its branch locations. Changes in regional demographics may also affect the perceived benefits
of certain branch locations and management may be required to reduce the number of locations of its branches.

 The Corporation is subject to extensive
government regulation and supervision that could interfere with its ability to conduct its business and may negatively impact its financial
results, restrict its activities, have an adverse impact on its operations, and impose financial requirements or limitations on the conduct
of its business.

 The Corporation, primarily
through the Bank, is subject to extensive federal and state regulation and supervision. Banking regulations are primarily intended to
protect depositors' funds, the Federal Deposit Insurance Fund and the safety and soundness of the banking system as a whole, not
stockholders. These regulations affect the Corporation's lending practices, capital structure, investment practices, dividend policy and growth,
among other things. Congress and federal regulatory agencies continually review banking laws, regulations and policies for possible changes.
Changes to statutes, regulations or regulatory policies, including changes in interpretation or implementation of statutes, regulations
or policies, could affect the Corporation in substantial and unpredictable ways. Such changes could subject the Corporation to additional
costs, limit the types of financial services and products it may offer, and/or limit the pricing it may charge on certain banking services,
among other things. The Corporation will have to apply resources to ensure that it is in compliance with any changes to statutes, regulations
or regulatory policies, including changes in interpretations or implementation, which may increase its costs of operations and adversely
impact its earnings.

 The Corporation faces a risk of noncompliance
and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.

 The Bank Secrecy Act, as amended
by the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, which
we refer to as the Patriot Act, and other laws and regulations require financial institutions, among other duties, to institute and maintain
effective anti-money laundering programs and file suspicious activity and currency transaction reports as appropriate. The Financial Crimes
Enforcement Network, established by the U.S. Treasury to administer the Bank Secrecy Act, is authorized to impose significant civil money
penalties for violations of those requirements and has recently engaged in coordinated enforcement efforts with the individual federal
banking regulators, as well as the U.S. Department of Justice, Drug Enforcement Administration and Internal Revenue Service. There is
also increased scrutiny of compliance with the rules enforced by the Office of Foreign Assets Control, which we refer to as OFAC. Over
the past several years, federal and state bank regulators also have increased their focus on compliance with Bank Secrecy Act and anti-money
laundering regulations. If the Corporation's policies, procedures and systems are deemed deficient or the policies, procedures and
systems of the financial institutions that it has already acquired or may acquire in the future are deficient, it would be subject to
liability, including fines and regulatory actions such as restrictions on its ability to pay dividends and the necessity to obtain regulatory
approvals to proceed with certain aspects of its business plan, including its acquisition plans, which would negatively impact its business,
financial condition and results of operations. Failure to maintain and implement adequate programs to combat money laundering and terrorist
financing could also have serious reputational consequences for the Corporation.

 Regulations relating to privacy, information
security and data protection could increase the Corporation's costs, affect or limit how it collects and uses personal information
and adversely affect its business opportunities.

 The Corporation is subject
to various privacy, information security and data protection laws, including requirements concerning security breach notification, and
it could be negatively impacted by these laws. For example, the Corporation's business is subject to the Financial Services Modernization
Act of 1999, also known as the Gramm-Leach-Bliley Act, which, among other things: (i) imposes certain limitations on its ability to share
nonpublic personal information about its customers with nonaffiliated third parties; (ii) requires that it provide certain disclosures
to customers about its information collection, sharing and security practices and afford customers the right to "opt out"
of any information sharing by the Corporation with nonaffiliated third parties (with certain exceptions) and (iii) requires it to develop,
implement and maintain a written comprehensive information security program containing safeguards appropriately based on its size and
complexity, the nature and scope of its activities, and the sensitivity of customer information it processes, as well as plans for responding
to data security breaches. Various state and federal banking regulators have also enacted data security breach notification requirements
with varying levels of individual, consumer, regulatory or law enforcement notification in certain circumstances in the event of a security
breach. This includes increased privacy-related enforcement activity at the federal level, by the Federal Trade Commission, as well as
at the state level, such as with regard to mobile applications. Moreover, legislators and regulators in the United States are increasingly
adopting or revising privacy, information security and data protection laws that potentially could have a significant impact on the Corporation's
current and planned privacy, data protection and information security-related practices, the Corporation's collection, use, sharing,
retention and safeguarding of consumer or employee information, and some of its current or planned business activities. This could also
increase the Corporation's costs of compliance and business operations and could reduce income from certain business initiatives.

 Compliance with current or
future privacy, data protection and information security laws (including those regarding security breach notification) affecting customer
or employee data to which the Corporation is subject could result in higher compliance and technology costs and could restrict its ability
to provide certain products and services, which could have a material adverse effect on its business, financial condition or results of
operations. The Corporation's failure to comply with privacy, data protection and information security laws could result in potentially
significant regulatory or governmental investigations or actions, litigation, fines, sanctions and damage to its reputation, which could
have a material adverse effect on its business, results of operations, financial condition, and the value of its securities.

 The Corporation's use of third-party
vendors and other ongoing third-party business relationships are subject to increasing regulatory requirements and attention.

 The Corporation regularly
uses third party vendors as part of its business. The Corporation also has substantial ongoing business relationships with other third
parties. These types of third-party relationships are subject to increasingly demanding regulatory requirements and attention by the Corporation's
federal bank regulators. Regulatory guidance requires all banking organizations to enhance due diligence, ongoing
monitoring and control over organizations' third-party vendors and other ongoing third-party business relationships. The Corporation
expects that its regulators will hold it responsible for any deficiencies in its oversight and control of its third-party relationships
and in the performance of the parties with which it has these relationships. As a result, if the Corporation's regulators conclude
that it has not exercised adequate oversight and control over its third party vendors or other ongoing third party business relationships
or that such third parties have not performed appropriately, the Corporation could be subject to enforcement actions, including civil
money penalties or other administrative or judicial penalties or fines as well as requirements for customer remediation, any of which
could have a material adverse effect on its business, results of operations, financial condition, and the value of its securities.

 Technological advances impact the Corporation's
business; its information systems may experience an interruption or breach in security.

 To conduct the Corporation's
business, it relies heavily on new technology-driven products and services, communications and information systems. The Corporation's
future success will depend, in part, on its ability to address the needs of the Corporation's customers by using technology to provide
products and services that will satisfy customer demands for convenience as well as to create additional efficiencies in operations. Any
failure, interruption or breach of the security of the Corporation's information systems could result in failures or disruptions
in its customer relationship management, general ledger, deposit, loan and other systems. While the Corporation has policies and procedures
designed to prevent or limit the effect of the failure, interruption or security breach of the Corporation's information systems,
there can be no assurance that the Corporation can prevent any such failures, interruptions or security breaches or, if they do occur,
that they will be adequately addressed. During the normal course of the Corporation's business, it has experienced and it expects
to continue to experience attempts to breach its systems, none of which has been material to the Corporation to date, and it may be unable
to protect sensitive data and the integrity of its systems. The occurrence of any failures, interruptions or security breaches of the
Corporation's information systems could damage its reputation, result in a loss of customer business, subject it to additional regulatory
scrutiny, or expose it to civil litigation and possible financial liability, any of which could have a material adverse effect on its
financial condition and results of operations as well as the value of its securities.

 The Corporation's controls and procedures
may fail or be circumvented.

 The Corporation regularly
reviews and updates its internal controls, disclosure controls and procedures, and corporate governance policies and procedures. Any system
of controls, however well-designed and operated, is based in part on certain assumptions and can provide only reasonable, not absolute,
assurances that the objectives of the system are met. Any failure or circumvention of the Corporation's controls and procedures
or failure to comply with regulations related to controls and procedures could have a material adverse effect on its business, results
of operations and financial condition.

 Negative public opinion surrounding the
Corporation and the financial institutions industry generally could damage its reputation and adversely impact its earnings.

 Reputation risk, or the risk
to the Corporation's business, earnings and capital from negative public opinion surrounding the Corporation and the financial institutions
industry generally, is inherent in its business. Negative public opinion can result from the Corporation's actual or alleged conduct
in any number of activities, including lending practices, corporate governance and acquisitions, and from actions taken by government
regulators and community organizations in response to those activities. Negative public opinion regarding the banking and financial services
industries generally, such as the public reaction to the recent banking failures, also can negatively affect the Corporation. Negative
public opinion can adversely affect the Corporation's ability to keep and attract clients and employees and can expose it to litigation
and regulatory action. Although the Corporation takes steps to minimize reputation risk in dealing with its clients and communities, this
risk will always be present given the nature of its business.

 The Corporation relies heavily on its senior
management team, and the unexpected loss of any of those personnel could adversely affect its operations.

 The Corporation is a customer-focused
and relationship-driven organization. The Corporation expects its future growth to be driven in a large part by the relationships maintained
with its customers by its chief executive officer and by other senior officers. The unexpected loss of any of the Corporation's
key employees could have a material adverse effect on its business and operations, which would have an adverse effect on its business,
results of operations, financial condition, and the value of its securities. While the Corporation's and the Bank's Executive
Chairman recently retired from active day-to-day service as a member of senior management of the Corporation and the Bank, because he
will continue on as Chairman of the boards of directors of both the Corporation and the Bank, the Corporation does not anticipate that
his retirement will have an adverse effect on business, operations, financial condition or the value of the Corporation's securities.

 The success of the Corporation's strategy
depends on its ability to identify and retain individuals with experience and relationships in its markets.

 In order to be successful,
the Corporation must identify and retain experienced key management members with local expertise and relationships. Competition for qualified
personnel is intense and there are a limited number of qualified persons with knowledge of and experience in the community banking industry
in the Corporation's chosen geographic markets. Even if the Corporation identifies individuals that it believes could assist the
Corporation, the Corporation may be unable to recruit these individuals away from more established banks. In addition, the process of
identifying and recruiting individuals with the combination of skills and attributes required is often lengthy. The Corporation's
inability to identify, recruit, and retain talented personnel could limit its growth and could materially adversely affect its business,
results of operations, financial condition, and the value of its securities.

 Higher FDIC deposit insurance premiums and
assessments could adversely impact the Corporation's financial condition.

 The Corporation's deposits
are insured up to applicable limits by the Deposit Insurance Fund of the FDIC and are subject to deposit insurance assessments to maintain
deposit insurance. As an FDIC-insured institution, the Corporation is required to pay quarterly deposit insurance premium assessments
to the FDIC. Although the Corporation cannot predict what the insurance assessment rates will be, either a deterioration in its risk-based
capital ratios or adjustments to the base assessment rates could have a material adverse impact on its business, financial condition,
results of operations, and cash flows.

 The Corporation is a holding company dependent
for liquidity on payments from the Bank, our only subsidiary, which are subject to restrictions.

 The Corporation is a financial
holding company and depends on dividends, distributions and other payments from the Bank, our subsidiary, to fund dividend payments to
shareholders and to fund all payments on obligations. The Bank is subject to laws that restrict dividend payments or authorize regulatory
bodies to block or reduce the flow of funds from it to us. Restrictions or regulatory action of that kind could impede access to funds
that we need to make payments on our obligations, dividend payments or stock repurchases. In addition, our right to participate in a distribution
of assets upon our subsidiary's liquidation or reorganization is subject to the prior claims of the subsidiary's creditors.

 Commercial real estate loans may increase
the Corporation's exposure to credit risk.

 A portion of the Corporation's
loan portfolio is secured by commercial real estate. Loans secured by commercial real estate are generally viewed as having more risk
of default than loans secured by residential real estate or consumer loans because repayment of the loans often depends on the successful
operation of the property, the income stream of the borrowers, the accuracy of the estimate of the property's value at completion
of construction, and the estimated cost of construction. Such loans are generally more risky than loans secured by residential real estate
or consumer loans because those loans are typically not secured by commercial real estate collateral. An adverse development with respect
to one lending relationship could expose the Corporation to a significantly greater risk of loss compared with a single-family residential
mortgage loan because the Corporation typically has more than one loan with such borrowers. Additionally, these loans typically involve
larger loan balances to single borrowers or groups of related borrowers compared with single-family residential mortgage loans. Therefore,
the deterioration of one or a few of these loans could cause a significant decline in the related asset quality. If the Corporation's
primary market areas experience an economic slowdown, these loans represent higher risk and could result in a sharp increase in loans
charged off and could require the Corporation to significantly increase its allowance for credit losses, which could have a material adverse
impact on its business, financial condition, results of operations, and cash flows.

 Repayment of commercial business loans is
often dependent on the cash flows of the borrower, which may be unpredictable, and the collateral securing these loans may fluctuate in
value.

 The Corporation has commercial
business loans as part of its loan portfolio. The Corporation's commercial business loans are originated primarily based on the
identified cash flow and general liquidity of the borrower and secondarily on the underlying collateral provided by the borrower and/or
repayment capacity of any guarantor. The borrower's cash flow may be unpredictable, and collateral securing these loans may fluctuate
in value. Although commercial business loans are often collateralized by equipment, inventory, accounts receivable or other business assets,
the liquidation of collateral in the event of default is often an insufficient source of repayment because accounts receivable may be
uncollectible and inventories may be obsolete or of limited use. In addition, business assets may depreciate over time, may be difficult
to appraise, and may fluctuate in value based on the success of the business. Accordingly, the repayment of commercial business loans
depends primarily on the cash flow and credit worthiness of the borrower and secondarily on the underlying collateral value provided by
the borrower and liquidity of the guarantor.

 The Corporation is limited in the amount
it can lend to one borrower.

 The Corporation is limited
in the amount that it can lend to a single borrower to 15% of the Bank's capital and surplus, with an additional 10% available for
certain loans meeting heightened collateral requirements. However, the Corporation generally imposes an internal limit that is more conservative
than the legal maximum. The Corporation's lending limit is significantly less than the limit for many of its competitors and may
affect its ability to seek relationships with larger businesses in its market area. From time to time, the Corporation attempts to accommodate
larger loans by selling participations in those loans to other financial institutions. However, the Corporation cannot ensure that it
will be able to attract or maintain customers seeking larger loans or that it will be able to sell participations in such loans on terms
it considers favorable. The Corporation's inability to attract and maintain these customers or its inability to sell loan participations
on favorable terms could adversely impact its business, financial condition, results of operation, and the value of its securities.

 The Federal Reserve may require the Corporation
to commit capital resources to support the Bank.

 The Federal Reserve requires
a bank holding company to act as a source of financial and managerial strength to a subsidiary bank and to commit resources to support
such subsidiary bank. Under the "source of strength" doctrine, the Federal Reserve may require a bank holding company to make
capital injections into a troubled subsidiary bank and may charge the bank holding company with engaging in unsafe and unsound practices
for failure to commit resources to such a subsidiary bank. In addition, the Dodd-Frank Wall Street Reform and Consumer Protection Act
("Dodd-Frank Act") directs the federal bank regulators to require that all companies that directly or indirectly control an
insured depository institution serve as a source of financial strength for the institution. Under these requirements, in the future, the
Corporation could be required to provide financial assistance to Journey Bank if it experiences financial distress.

 A capital infusion may be
required at times when the Corporation does not have the resources to provide it, and therefore the Corporation may be required to borrow
the funds. In the event of a bank holding company's bankruptcy, the bankruptcy trustee will assume any commitment by the holding
company to a federal bank regulatory agency to maintain the capital of a subsidiary bank. Moreover, bankruptcy law provides that claims
based on any such commitment will be entitled to a priority of payment over the claims of the holding company's general unsecured
creditors, including the holders of its note obligations. Thus, any borrowing that must be done by the holding company in order to make
the required capital injection becomes more difficult and expensive and will adversely impact the holding company's cash flows,
financial condition, results of operations and prospects.

 The Corporation may be subject to more stringent
capital requirements in the future.

 From time to time, the Corporation's
banking regulators change the regulatory capital adequacy guidelines applicable to it and its banking subsidiary. In December 2010 and
January 2011, the Basel Committee on Banking Supervision published the final texts of reforms on capital and liquidity generally referred
to as "Basel III." The federal regulatory agencies adopted capital rules implementing the Basel III capital framework in the
United States. Under these rules, the Corporation is required to satisfy additional, more stringent, capital adequacy standards than it
has in the past. The Corporation has met all of the requirements of the Basel III-based capital rules to date, but the Corporation may
fail to do so in the future. In addition, these requirements could have a negative impact on the Corporation's ability to lend,
grow deposit balances, make acquisitions or make capital distributions in the form of dividends or share repurchases. Higher capital levels
could also lower the Corporation's return on equity, which may negatively impact its business, results of operations, financial
condition, and the value of its securities.

 The use of estimates and valuations in the
preparation of the Corporation's consolidated financial statements requires the exercise of judgment, and may be different from
actual results, which could have a material adverse effect on the Corporation's consolidated financial statements.

 The Corporation makes various
estimates that affect reported amounts and disclosures. Broadly, those estimates are used in measuring the fair value of certain financial
instruments, establishing the provision for credit losses and estimating potential litigation liability. Market volatility may make it
difficult to determine the fair value for certain of the Corporation's assets and liabilities. Subsequent valuations, in light of
factors then prevailing, may result in significant changes in the values of these financial instruments in future periods. In addition,
at the time of any sales and settlements of these assets and liabilities, the price the Corporation ultimately realizes will depend on
the demand and liquidity in the market at that time for that particular type of asset or liability and may be materially lower than its
estimate of their current fair value. Estimates are based on available information and judgment. Therefore, actual values and results
could differ from the Corporation's estimates, and that difference could have a material adverse effect on its consolidated financial

 Credit losses related to investment securities,
impairment charges related to goodwill, other intangible assets, or deferred tax assets could require charges to earnings, which could
result in a negative impact on our results of operations.

 In assessing investment securities
for credit losses, we consider the extent to which the fair value has been less than cost, the financial condition and near-term prospects
of the issuers, and the intent and ability to retain its investment in the issuer for a period of time sufficient to allow for an anticipated
recovery in fair value in the near term. Under current accounting standards, goodwill and certain other intangible assets with indeterminate
lives are no longer amortized but, instead, are assessed for impairment periodically or when impairment indicators are present. Assessment
of goodwill and such other intangible assets could result in circumstances where the applicable intangible asset is deemed to be impaired
for accounting purposes. Under such circumstances, the intangible asset's impairment would be reflected as a charge to earnings
in the period during which such impairment is identified. In assessing the realizability of deferred tax assets, management considers
whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization
of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences
become deductible. The impact of each of these impairment matters could have a material adverse effect on our business, results of operations
and financial condition.

 If we want to, or are compelled to, raise
additional capital in the future, that capital may not be available when it is needed and on terms favorable to current shareholders.

 Federal banking regulators
require us and our banking subsidiary to maintain adequate levels of capital to support our operations. These capital levels are determined
and dictated by law, regulation and banking regulatory agencies. In addition, capital levels are also determined by our management and
board of directors based on capital levels that they believe are necessary to support our business operations. At December 31, 2024, all
three capital ratios for us and our banking subsidiary were above "well capitalized" levels under current bank regulatory
guidelines. To be "well capitalized," banking companies generally must maintain a Tier 1 leverage ratio of at least 5%, a
Tier 1 risk-based capital ratio of at least 6.5% and a Total risk-based capital ratio of at least 10%. However, our regulators may require
us or our banking subsidiary to operate with higher capital levels.

 Our ability to raise additional
capital will depend on conditions in the capital markets at that time, which are outside of our control, and on our financial performance.
Accordingly, we cannot assure you of our ability to raise additional capital on terms and time frames acceptable to us and to raise additional
capital at all. If we cannot raise additional capital in sufficient amounts when needed, our ability to comply with regulatory capital
requirements could be materially impaired. Additionally, the inability to raise capital in sufficient amounts may adversely affect our
operations, financial conditions and results of operations. Our ability to borrow could also be impaired by factors that are nonspecific
to us, such as severe disruption of the financial markets or negative news and expectations about the prospects for the financial services
industry as a whole as evidenced by recent turmoil in the domestic and worldwide credit markets. If we raise capital through the issuance
of additional shares of our common stock or other securities, we would likely dilute the ownership interests of current investors and
could dilute the per share book value or earnings per share of our common stock. Furthermore, a capital raise through issuance of additional
shares may have an adverse impact on our stock price.

 The Corporation may be adversely affected
by the soundness of other financial institutions.

 Financial services institutions
are interrelated as a result of trading, clearing, counterparty, or other relationships. The Corporation has exposure to many different
industries and counterparties, and routinely executes transactions with counterparties in the financial services industry, including commercial
banks, brokers and dealers, investment banks, and other institutional clients. Many of these transactions expose the Corporation to credit
risk in the event of a default by a counterparty or client. In addition, the Corporation's credit risk may be exacerbated when the
collateral held by the Corporation cannot be realized upon or is liquidated at prices not sufficient to recover the full amount of the
credit or derivative exposure due to the Corporation. Any such losses could have a material adverse effect on the Corporation's
financial condition and results of operations.

 The Federal Home Loan Bank of Pittsburgh's
financial condition could deteriorate.

 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. The Bank has a line of credit
with the FHLB-Pittsburgh that is secured by a blanket lien on its loan portfolio. Access to this line of credit is critical if a funding
need arises. However, there can be no assurance that the FHLB-Pittsburgh will be able to provide funding when needed, nor can there be
assurance that the FHLB-Pittsburgh will provide funds specifically to the Bank should its financial condition deteriorate and/or regulators
prevent that access. The inability to access this source of funds could have a materially adverse effect on the Corporation's financial
flexibility if alternate financing is not available at acceptable interest rates. The failure of the FHLB-Pittsburgh or the FHLB system
in general, may materially impair the Corporation's ability to meet short- and long-term liquidity needs or to meet growth plans.

 The Corporation owns common
stock of the FHLB-Pittsburgh to qualify for membership in the FHLB system and access services from the FHLB-Pittsburgh. The FHLB-Pittsburgh
faces a variety of risks in its operations including interest rate risk, counterparty credit risk, and adverse changes in its regulatory
framework. In addition, the 11 Federal Home Loan Banks are jointly liable for the consolidated obligations of the FHLB system. To the
extent that one FHLB cannot meet its obligations, other FHLBs can be called upon to make required payments. Such risks affecting the FHLB-Pittsburgh
could adversely impact the value of the Corporation's investment in the common stock of the FHLB-Pittsburgh and/or affect its access
to credit.

 There is a risk that the Corporation may
not experience the projected benefits of its recent merger.

 As described in Item 1, the
Corporation completed a merger with Muncy Bank Financial, Inc. during 2023, and expanded its geographic footprint in central Pennsylvania.
Merger and acquisition activity involves various risks including: potential exposure to unknown or contingent liabilities of the target
company, exposure to potential asset quality issues of the target company, difficulty and expense of integrating the operations and personnel
of the target company, potential disruption to the Corporation's business, potential diversion of management's time and attention,
the possible loss of key employees and customers of the target company, difficulty in estimating the value of the target company and potential
changes in banking or tax laws or regulations that may affect the target company. Mergers and acquisitions may involve the payment of
a premium over book and market values, and, therefore, some dilution of the Corporation's tangible book value and net income per
share of common stock may occur in connection with any such transaction. Furthermore, failure to realize the expected revenue projections,
cost savings, increases in geographic or product presence, and/or other projected benefits from our recent merger could have a material
adverse effect on the Corporation's financial condition or results of operations.

 Risks Related to an Investment in the Corporation's
Common Stock

 There is a limited trading market in the
Corporation common stock, which will hinder your ability to sell the Corporation's common stock and may lower the market price of
the stock.

 Although the Corporation common
stock is quoted on OTCQX, the Corporation common stock is traded only sporadically. An active trading market for shares of the Corporation
common stock may never develop or be sustained. Shareholders may not be able to sell shares when they desire if a liquid trading market
does not develop or sell them at a price equal to their cost basis even if a liquid trading market does develop. This limited trading
market for the Corporation common stock may also result in a lower market value of the Corporation common stock.

 The Corporation can provide no assurance
regarding whether, and if so when, it will make dividend payments in the future.

 All dividends paid by the
Corporation in the future will be dependent on the Corporation's financial condition, results of operations, and cash flows, as
well as capital regulations and dividend restrictions imposed by the rules and regulations of the Pennsylvania Department of Banking and
Securities ("PADOBS"), the FDIC, and the Federal Reserve. The Federal Reserve and the FDIC have issued policy statements,
which provide that bank holding companies and insured banks should generally only pay dividends out of current operating earnings. The
FDIC also has the authority under federal law to enjoin a bank from engaging in what in its opinion constitutes an unsafe or unsound practice
in conducting its business, including the payment of a dividend under certain circumstances. The Corporation can provide no assurance
regarding whether, and if so when, it will make dividend payments in the future.

 The Corporation common stock is not FDIC
insured and may lose value.

 Shares of
the Corporation common stock are not savings accounts or deposits and are not insured or guaranteed by the FDIC, or any other governmental
agency, and involve investment risk, including the possible loss of the entire value of the investment.

 Item 1B. Unresolved Staff Comments

 None.

 Item 1C. Cybersecurity

 Cybersecurity

 We are exposed to various
cybersecurity risks that could adversely affect our business, operations, and financial condition.

 As a community bank, we rely
heavily on information technology and telecommunications systems to conduct our business activities, such as processing transactions,
maintaining records, communicating with customers and vendors, and providing online and mobile banking services. These systems are subject
to various cybersecurity threats, such as unauthorized access, hacking, phishing, malware, ransomware, denial-of-service attacks, and
other malicious or criminal activities, that could compromise the confidentiality, integrity, or availability of our systems, data, or
customer information. Cybersecurity threats may originate from external sources, such as cybercriminals, hackers, terrorists, or foreign
governments, or from internal sources, such as employees, contractors, or vendors. Cybersecurity threats may also target our third-party
service providers, such as core processors, cloud providers, or payment processors, whose systems and data are interconnected with ours.

 We have implemented various
security measures and controls to protect our systems and data from unauthorized access, use, or disclosure, such as firewalls, encryption,
authentication, backup, and recovery, both internally and with our third party managed service provider. We also have established policies
and procedures to monitor and respond to cybersecurity incidents, and to comply with applicable laws and regulations regarding cybersecurity
and data privacy. We regularly review and update our security measures and controls to address the evolving nature and
sophistication of cybersecurity threats. We also provide training and education to our employees and customers on cybersecurity awareness
and best practices. In addition, we maintain cyber liability insurance coverage to mitigate the potential financial impact of cybersecurity
incidents. Furthermore, internal and external auditors and regulators periodically review our processes, systems, and controls, including
with respect to our information security program, to assess their design and operating effectiveness and make recommendations to strengthen
our risk management program.

 We maintain a Business Continuity and Incident Response Program that provides
a documented framework for responding to actual or potential incidents, including engagement of appropriate third parties such as insurance
providers and incident response professionals, and timely reporting to our chief executive officer and board of directors as appropriate.
 The Business Continuity and Incident Response Program is coordinated by the information security officer and key members of management
are embedded into the Plan by its design. The Business Continuity and Incident Response Program facilitates coordination across multiple
areas of our organization and is evaluated at least annually.

 Notwithstanding our defensive
measures and processes, the threat posed by cyber-attacks is always present. Our internal systems, processes, and controls are designed
to mitigate loss from cyber-attacks. Despite our efforts, we cannot guarantee that our security measures and controls will be sufficient
or effective to prevent, detect, or mitigate all cybersecurity incidents or to protect our systems and data from unauthorized access,
use, or disclosure. We may experience cybersecurity incidents in the future that could result in operational disruption, reputational
damage, customer dissatisfaction, loss of business or revenue, legal liability, regulatory actions, fines, penalties, or remediation costs.
Any of these outcomes could have a material adverse effect on our business, operations, and financial condition. While we have experienced
cybersecurity incidents in the past, risks from cybersecurity threats have not materially affected the Corporation to date.

 Item 2. Properties

 The
Corporation and its subsidiary occupy twenty-two branch properties in Clinton, Columbia, Lycoming, Montour, and Northumberland Counties
in Pennsylvania, which are used principally as banking offices, as well as one ancillary facility. As of December 31, 2024, the Corporation
and its subsidiary bank owned twenty-one of such properties and leased two such properties.

 We consider our facilities
to be suitable and adequate for our current and immediate future purposes.

 Item 3. Legal Proceedings

 The Corporation and the Bank
are involved in various legal proceedings incidental to their business. Management believes that any such legal proceedings will not have
a material adverse effect upon the Corporation's financial condition or results of operations.

 Item 4. Mine Safety Disclosures

 Not applicable.

 Item 5. Market for the Registrant's Common
Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 The Corporation had 917 stockholders
of record and 3,532,713 shares of common stock outstanding, par value of $1.25 per share, the only authorized class of common stock, outstanding
as of December 31, 2024. Quotations for the Corporation's common stock appear under the symbol "CCFN" on the OTCQX,
a trading platform operated by OTC Markets Group for companies that are current in their reporting with federal banking regulators. These
quotations represent inter-dealer prices and do not include retail mark- up, markdown or commission. They may not necessarily represent
actual transactions. The high and low closing sale prices and dividends per share of our common stock for the four quarters of 2024 and
2023 are summarized in the following table.

 2024:

 High ($)

 Low ($)

 Dividends

Declared ($)

 First quarter

 35.75

 28.98

 0.44

 Second quarter

 34.75

 29.00

 0.44

 Third quarter

 35.00

 32.00

 0.44

 Fourth quarter

 44.00

 32.60

 0.44

 2023:

 High ($)

 Low ($)

 Dividends

Declared ($)

 First quarter

 51.00

 42.02

 0.42

 Second quarter

 44.50

 37.50

 0.43

 Third quarter

 43.55

 35.00

 0.43

 Fourth quarter

 37.50

 33.55

 0.43

 We have paid cash dividends
since organization of the Corporation in 1983. It is our present intention to continue the dividend payment policy, although the payment
of future dividends must necessarily depend upon earnings, financial position, restrictions under applicable law and other factors relevant
at the time the Board of Directors considers any declaration of dividends. Our ability to pay dividends is subject to certain legal restrictions
described in Note 14, "Regulatory Matters" of the "Notes to Consolidated Financial Statements" included under
Item 8 of this report, and in the "Capital Resources" section of the "Management's Discussion and Analysis of
Consolidated Financial Conditions and Results of Operations," included under Item 7 of this report.

 Effective May 14, 2024, the
Corporation's Board of Directors authorized a new treasury stock repurchase program. Under the program, the Corporation was authorized
to repurchase up to 178,614 shares of the Corporation's common stock. The Board of Directors' authorization provides that
the treasury stock repurchase program shall continue until the earlier of the date an aggregate of 178,614 shares of common stock has
been purchased or May 14, 2026, or until suspended or terminated by the Board of Directors, in its sole discretion. The following table
sets forth a summary of purchases by the Corporation, in the open market, of its equity securities during the fourth quarter 2024:

 Period

 Total Number

of Shares

Purchased

Price Paid

per Share

 Total Number of

Shares

Purchased

as Part of

Publicly

Announced

Plans

or Programs

 Maximum

Number of

Shares that May

Yet

be Purchased

Under

the Plans or

Programs

 October 1 - 31, 2024

 —

 $

 —

 —

 178,614

 November 1 - 30, 2024

 44,025

 $

 34.46

 44,025

 134,589

 December 1 - 31, 2024

 —

 $

 —

 —

 134,589

 The Corporation sells shares of its $1.25
par value per share common stock to employee participants in its Employee Stock Purchase Plan. The following table summarizes the
quarterly sales of shares within the past three years pursuant to the plan:

 Date of Sale

 Number of Shares Sold

 Offering Price

 Aggregate Consideration Received

 1,211

 $

 30.52

 $

 36,960

 September 30, 2024

 1,500

 30.44

 45,660

 June 30, 2024

 1,739

 27.97

 48,640

 March 31, 2024

 2,012

 27.98

 56,296

 32.09

 19,029

 September 30, 2023

 33.63

 20,649

 June 30, 2023

 38.22

 17,581

 March 31, 2023

 38.38

 19,727

 December 31, 2022

 42.05

 18,082

 September 30, 2022

 42.70

 21,393

 June 30, 2022

 46.64

 18,050

 March 31, 2022

 47.13

 15,694

 The shares in the table above
issued on March 31, 2022, and each quarter thereafter through June 30, 2023, were issued without registration under the Securities Act
of 1933, as amended, in reliance upon the exemption provided by 17 CFR 230.701.

 Item 6. Reserved

 Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations

 Management's
Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, represents an overview of the financial condition
and results of operations of the Corporation and should be read in conjunction with our consolidated financial statements and notes thereto
included in Item 8, "Financial Statements and Supplementary Data" and Item 1A, "Risk Factors" of Part I to this
Annual Report on Form 10-K.

 The
Corporation is in the business of providing customary retail, commercial banking and financial services to individuals, businesses and
local governments through its 22 branch offices operated by Journey Bank, the Corporation's wholly-owned subsidiary. The Corporation's
22 branch offices are operated in Clinton, Columbia, Lycoming, Montour and Northumberland counties in central Pennsylvania.

 CAUTIONARY STATEMENT

 Certain statements in this
section and elsewhere in this Annual Report on Form 10-K, other periodic reports filed by us under the Securities Exchange Act of 1934,
as amended, and any other written or oral statements made by or on behalf of us may include "forward looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 which reflect our current views with respect to future events and
financial performance. Such forward looking statements are based on general assumptions and are subject to various risks, uncertainties,
and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements.
These risks, uncertainties and other factors include, but are not limited to:

 Our business and financial results are affected by business and economic conditions, both generally and
specifically in the mostly North Central Pennsylvania market in which we operate.

 Changes in interest rates and valuations in the debt, equity and other financial markets.

 Disruptions in the liquidity and other functioning of financial markets, including such disruptions in
the market for real estate and other assets commonly securing financial products.

 Actions by the Federal Reserve Board and other government agencies, including those that impact money
supply and market interest rates.

 Changes in our customers' and suppliers' performance in general and their creditworthiness
in particular.

 Changes in customer preferences and behavior, whether as a result of changing business and economic conditions
or other factors.

 Changes resulting from the enacted Dodd-Frank Wall Street Reform and Consumer Protection Act.

 A continuation of recent turbulence in significant segments of the United States and global financial markets, particularly if it worsens, could impact our performance, both directly by affecting our revenues and the value of our assets and liabilities and indirectly by affecting our customers and suppliers and the economy generally.

 Our business and financial performance could be impacted as the financial industry restructures in the current environment by changes in the competitive landscape.

 Given current economic and financial market conditions, our forward-looking statements are subject to the risk that these conditions will be substantially different than we are currently expecting.

 Legal and regulatory developments could have an impact on our ability to operate our businesses or our financial condition or results of operations or our competitive position or reputation. Reputational impacts, in turn, could affect matters such as business generation and retention, our ability to attract and retain management, liquidity and funding. These legal and regulatory developments could include: (a) the unfavorable resolution of legal proceedings or regulatory and other governmental inquiries; (b) increased litigation risk from recent regulatory and other governmental developments; (c) the results of the regulatory examination process, and regulators' future use of supervisory and enforcement tools; (d) legislative and regulatory reforms, including changes to laws and regulations involving tax, pension, education and mortgage lending, the protection of confidential customer information, and other aspects of the financial institution industry; and (e) changes in accounting policies and principles.

 Our business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through the effective use of third-party insurance and capital management techniques.

 Our ability to anticipate and respond to technological changes can have an impact on our ability to respond to customer needs and to meet competitive demands.

 Our ability to implement our business initiatives and strategies could affect our financial performance over the next several years.

 Competition can have an impact on customer acquisition, growth and retention, as well as on our credit spreads and product pricing, which can affect market share, deposits and revenues.

 Our business and operating results can also be affected by widespread natural disasters, terrorist activities or international hostilities, either as a result of the impact on the economy and capital and other financial markets generally or on us or on our customers and suppliers.

 The words "believe,"
"expect," "anticipate," "project" and similar expressions signify forward looking statements. Readers
are cautioned not to place undue reliance on any forward looking statements made by or on behalf of us. Any such statement speaks only
as of the date the statement was made. We undertake no obligation to update or revise any forward looking statements.

 The following discussion and
analysis should be read in conjunction with the detailed information and consolidated financial statements, including notes thereto, included
elsewhere in this report. Our consolidated financial condition and results of operations are essentially those of our subsidiary, the
Bank. Therefore, the analysis that follows is directed to the performance of the Bank.

 CRITICAL ACCOUNTING
POLICIES AND ESTIMATES

 The Corporation's financial
statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S.
GAAP") and conform to general practices within the banking industry. In the preparation of its financial statements, the Corporation
is required to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses
as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. The Corporation's
critical accounting policies are fundamental to understanding this MD&A and are more fully described in Note 1 ("Summary of
Significant Accounting Policies") within the Corporation's Notes to the Consolidated
Financial Statements which are included in Part II of this Annual Report on Form 10-K.

 The
Corporation defines its critical accounting policies, in accordance with U.S. GAAP. U.S. GAAP requires the Corporation to make subjective
estimates and judgments about matters that are uncertain and are likely to have a material impact on its financial condition and results
of operations, as well as the specific manner in which those principles are applied. Application of assumptions different than those used
by the Corporation could result in material changes in the Corporation's financial position or results of operations. The Corporation
believes its policies governing the determination of the allowance for credit losses, the fair value of available-for-sale debt securities
and the fair values of assets acquired and liabilities assumed in business combinations are critical accounting policies.
The Corporation's management has reviewed and approved these critical accounting policies and has discussed these policies with
its Audit Committee. The Corporation believes the critical accounting policies used in the preparation of its financial statements that
require significant estimates and judgments are as follows:

 Allowance for Credit
Losses (ACL) - Loans

 As
of January 1, 2023, the Corporation adopted Accounting Standards Update ("ASU") 2016-13, Financial Instruments
– Credit Losses (Topic 326): "Measurement of Credit Losses on Financial Instruments," which replaced the current
loss impairment methodology under U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader
range of reasonable and supportable information to form credit loss estimates in an effort to provide financial statement users with more
decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13,
commonly referred to as Current Expected Credit Losses ("CECL"), requires a financial asset (or a group of financial assets)
to be measured at an amortized cost basis and presented at the net amount expected to be collected. The amendments in this update affect
financial assets and net investment in leases that are not accounted for at fair value through net income, including such financial

assets as loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables,
and any other financial assets not excluded from the scope that have the contractual right to receive cash. Upon adoption of ASU
2016-13 on January 1, 2023, the Corporation recorded an incremental decrease in the ACL through a cumulative effect adjustment to
equity, net of tax, with subsequent adjustments charged to earnings through a provision for credit losses.

 Management
evaluates the credit quality of the Corporation's loan portfolio on an ongoing basis and performs a formal review of the adequacy
of the ACL on a quarterly basis. The ACL is established through a provision for credit losses charged to earnings and is maintained at
a level that management considers to be an estimate of the lifetime expected credit losses of the portfolio as of the evaluation date.
Loans, or portions of loans, determined by management to be uncollectible are charged off against the ACL, while recoveries of amounts
previously charged off are credited to the ACL.

 Determining
the amount of the ACL is considered a critical accounting estimate because it requires significant judgment and the use of estimates related
to the amount and timing of expected future cash flows, estimated losses on pools of homogeneous loans based on historical loss experience
and reasonable and supportable forecasts, as well as consideration of current economic trends and conditions, all of which may be
susceptible to significant change. Banking regulators, as an integral part of their examination of the Corporation, also review the ACL,
and may require, based on information available to them at the time of their examination, that certain loan balances be charged off or
require that adjustments be made to the ACL. Additionally, the ACL is determined, in part, by the composition and size of the loan portfolio.

 The
ACL consists of two components, a specific component and a general component. The specific component relates to loans that are individually
analyzed for impairment. For such loans, an allowance is established when the discounted cash flows, collateral value or observable market
price of the loan is lower than the carrying value of that loan. The general component covers all other loans and is based on historical
loss experience as adjusted for qualitative factors. The general reserve component of the ACL is based on pools of performing loans segregated
by loan segment. Historical loss factors are applied based on historical losses in each risk rating category to determine the appropriate
reserve related to those loans.

 Although the Corporation's management uses
the best information available, the level of the ACL remains an estimate which is subject to significant judgment and short-term change
which could have a significant impact on the Corporation's financial condition or results of operations. From January 1, 2024 to
December 31, 2024, the level of the ACL increased from $9.3 million to $9.9 million and the ACL to total loans increased from 0.87% to
0.88%. The Corporation's ACL is highly sensitive to the methods, assumptions and estimates underlying its calculation. See Note
1, "Summary of Significant Accounting Policies" and Note 5 "Loans and Allowance for Credit Losses" within the
Corporation's Notes to the Consolidated Financial Statements which are included in Part II of this Annual Report on Form 10-K for
additional qualitative and quantitative information about the Corporation's ACL.

 Fair Value of Available-For-Sale
Debt Securities

 Another
material estimate is the calculation of fair values of the Corporation's debt securities. For the Corporation's debt securities,
the Corporation receives estimated fair values from an independent valuation service, or from brokers. In developing fair values, the
valuation service and the brokers compare securities that have similar maturities, coupon rates, and credit ratings. Estimated fair values
of debt securities may vary among brokers and other valuation services.

 Business Combinations

 Business
combinations are accounted for by applying the acquisition method. As of acquisition date, the identifiable assets acquired and liabilities
assumed are measured at fair value and recognized separately from goodwill. Results of operations of the acquired entity are included
in the consolidated statement of income from the date of acquisition. The calculation of intangible assets including core deposits and
the fair value of loans are based on significant judgements. Core deposit intangibles are calculated using a discounted cash flow model
based on various factors including discount rate, attrition rate, interest rate, cost of alternative funds and net maintenance costs.
Loans acquired in connection with acquisitions are recorded at their acquisition-date fair value. Determining the fair value of the
acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash
flows at a market rate of interest. Management considers a number of factors in evaluating the acquisition-date fair value including the
remaining life of the acquired loans, delinquency status, estimated prepayments, payment options and other loan features, internal risk
grade, estimated value of the underlying collateral and interest rate environment.

 MERGER WITH MUNCY BANK FINANCIAL, INC.

 The
Corporation's merger with Muncy Bank Financial, Inc. ("MBF") was completed November 11, 2023. MBF was a Pennsylvania
corporation that conducted its business primarily through its wholly owned subsidiary The Muncy Bank & Trust Company, which operated
from a main office in Muncy, Pennsylvania, and had nine additional branches throughout Northcentral Pennsylvania.

 At the effective time of the
merger, MBF's shareholders received a fixed exchange ratio of 0.9259 shares of the Corporation's common stock for each MBF
common share they owned, except to the extent of cash received for fractional shares at $41.47 per share. Total purchase consideration
was $55,101,000, including common stock with a fair value of $55,092,000 and cash of $9,000 paid for fractional shares. Holders of MBF
common stock prior to the consummation of the merger held approximately 41.7% of the Corporation's common stock outstanding immediately
following the merger.

 In connection with the acquisition,
effective November 11, 2023, the Corporation recorded goodwill of $17.7 million and a core deposit intangible asset of $12.1 million.
Assets acquired totaled $671.4 million, including gross loans valued at $504.1 million, available-for-sale debt securities valued at $93.0
million, bank-owned life insurance valued at $17.8 million and premises and equipment, net, valued at $14.9 million. Liabilities assumed
totaled $634.0 million, including deposits valued at $521.3 million and borrowings valued at $105.5 million. The assets purchased and
liabilities assumed in the acquisition were recorded at their preliminary estimated fair values at the time of closing and may be adjusted
for up to one year subsequent to the acquisition.

 For the year ended December
31, 2024, the Corporation incurred pre-tax merger-related expenses related to the MBF transaction of $241,000 compared to $3,028,000,
for the year ended December 31, 2023. Merger-related expenses include voluntary severance and similar expenses as well as expenses related
to conversion of MBF's core banking system into the Corporation's core system and legal and other professional expenses.

 FINANCIAL CONDITION

 Total assets at December
31, 2024, were $1.596 billion, a decrease of $43.8 million, or 2.7% from $1.640 billion at December 31, 2023. The change in total
assets primarily reflected decreases in available-for-sale debt securities, restricted investment in bank stocks and deferred tax
assets, net, partially offset by an increase in loans receivable. Available-for-sale debt securities decreased $90.1 million,
restricted investment in bank stocks decreased $3.3 million and deferred tax assets, net, decreased $2.6 million. Gross loans
receivable increased $57.5 million. Total liabilities at December 31, 2024, were $1.430 billion, a decrease of $56.4 million, or
3.8% from $1.486 billion at December 31, 2023. Deposit balances increased by $141.8 million, short-term borrowings decreased $184.1
million and long-term borrowings decreased $14.9 million since December 31, 2023.

 Total average assets increased
51.3% from $1.053 billion for the year ended December 31, 2023, to $1.593 billion for the year ended December 31, 2024, primarily related
to the MBF merger. Average earning assets were $1.491 billion for the year ended December 31, 2024 and $1.009 billion for the year ended
December 31, 2023. Average interest-bearing liabilities were $1.159 billion for the year ended December 31, 2024 and $763.4 million for
the year ended December 31, 2023.

 Available-for-sale debt securities
decreased $90.1 million to $323.2 million at December 31, 2024 from $413.3 million at December 31, 2023. During the year ended December
31, 2024, the Corporation sold available-for-sale debt securities with a total market value of $51.7 million, the proceeds of which were
primarily utilized to paydown short-term FHLB borrowings. Securities sold included $35.6 million of US government agency securities, $15.5
million of mortgaged-backed securities and $563,000 of collateralized mortgage obligations. In addition to the securities sold, the Corporation
received proceeds from paydowns, calls and maturities of available-for-sale debt securities of $55.3 million during the year ended December
31, 2024. Partially offsetting these changes was an increase in fair value of available-for-sale debt securities of $1.4 million and purchases
of $14.9 million for the year ended December 31, 2024.

 Restricted investment in bank
stocks decreased $3.3 million to $7.1 million at December 31, 2024 from $10.4 million at December 31, 2023. This decrease is directly
attributable to the decrease in required FHLB stock holdings due to the paydown in short and long-term FHLB borrowings.

 Deferred tax assets, net,
decreased $2.6 million to $10.0 million at December 31, 2024 from $12.6 million at December 31, 2023. This decrease is primarily related
to decreases in deferred tax assets, net, related to core deposit intangibles and purchase accounting adjustments for the year ended December
31, 2024.

 Gross loans not held for sale
increased 5.4% to $1.126 billion at December 31, 2024 from $1.068 billion at December 31, 2023. This increase is related to strong loan
demand during the year ended December 31, 2024.

 Interest-bearing deposits
increased $148.1 million to $1.033 billion at December 31, 2024 from $884.7 million at December 31, 2023. Noninterest-bearing deposits
decreased 2.4% from $266.0 million at December 31, 2023 to $259.7 million at December 31, 2024. The increase in interest-bearing deposits
during the year ended December 31, 2024 was a result of a strategic initiative to reposition customer repurchase agreements, which
are classified as short-term borrowings, into core deposit accounts. The Bank anticipates a continued migration of customer repurchase
accounts from short-term borrowings to interest bearing deposits moving into 2025. The decrease in noninterest-bearing deposits was
a result of the migration of noninterest-bearing deposit accounts into interest bearing products for the year ended December 31, 2024.

 Short-term borrowings decreased
$184.1 million to $68.4 million at December 31, 2024 from $252.5 million at December 31, 2023. This change was primarily related to the
migration of customer repurchase agreements as well as a paydown in short-term FHLB borrowings during the year as discussed above.

 Long-term borrowings were
$55.5 million at December 31, 2024 compared to $70.5 million at December 31, 2023. This decrease is primarily related to $15.2 million
in long-term borrowing maturities during the year ended December 31, 2024.

 Total stockholder's
equity increased by $12.6 million, or 8.2%, from $153.8 million at December 31, 2023, to $166.4 million at December 31, 2024. The increase
is primarily attributable to earnings, net of cash dividends, along with a decrease in accumulated other comprehensive loss due to changes
in the fair values of available-for-sale debt securities. Accumulated other comprehensive loss amounted to $13.9 million as of December
31, 2024 and $15.0 million as of December 31, 2023. These increases were partially offset by an increase in treasury stock of $1.5 million
related to a repurchase during the year ended December 31, 2024.

 The loan-to-deposit ratio
is a key measurement of liquidity. Our loan-to-deposit ratio decreased from 92.0% as of December 31, 2023 to 86.4% as of December 31,
2024 due to the asset/liability mix changes noted above, and remains within internal policy limits.

 It is our opinion that the
asset/liability mix and the interest rate risk associated with the balance sheet are within manageable parameters. Constant monitoring
using asset/liability reports and interest rate risk scenarios are in place along with quarterly asset/liability management meetings on
the committee level by the Bank's Board of Directors. Additionally, the Bank's Asset/Liability Committee meets quarterly with
an investment consultant and works with independent third parties regularly to review key assumptions and other metrics used in the modeling
software.

 Securities

 The
Corporation's investment securities portfolio provides a source of liquidity needed to meet expected loan demand and interest income
to increase profitability. Additionally, the investment securities portfolio is used to meet pledging requirements to secure public deposits,
customer repurchase agreements and for other purposes. Debt securities are classified as either available-for-sale or held-to-maturity
at the time of purchase based on management's intent. Available-for-sale securities are carried at fair value, with unrealized holding
gains and losses reported as a component of stockholders' equity in accumulated other comprehensive income (loss), net of tax, while held-to-maturity
securities are carried at amortized cost. At December 31, 2024 and December 31, 2023, all debt securities were classified as available-for-sale.
Equity securities with readily determinable fair values are carried at fair value, with gains and losses due to fluctuations in market
value included in the Consolidated Statements of Income. Securities with limited marketability and/or restrictions, such as FHLB of Pittsburgh
stock, are carried at cost. Decisions to purchase or sell investment securities are based upon management's current assessment
of long- and short-term economic and financial conditions, including the interest rate environment and asset/liability management, liquidity
and tax-planning strategies.

 At
December 31, 2024, the investment portfolio was comprised principally of available-for-sale debt securities including, fixed-rate, taxable
and tax-exempt obligations of state and political subdivisions and fixed-rate and floating-rate securities issued by U.S. government
or U.S. government-sponsored agencies, which include agencies, mortgage-backed securities and collateralized mortgage obligations, or
CMOs. Additionally, the Corporation holds equity investments in the stock of certain publicly traded bank holding companies. Except for
U.S. government and government-sponsored agencies, there were no securities of any individual issuer that exceeded 10.0% of stockholders'
equity as of December 31, 2024.

 The
majority of the Corporation's debt securities are fixed-rate instruments and inherently subject to interest rate
risk, as the value of fixed-rate securities fluctuates with changes in interest rates. Generally, a security's value reacts inversely
with changes in interest rates. Available-for-sale securities are carried at fair value, with unrealized gains or losses reported in the
accumulated other comprehensive income or loss component of stockholder's equity, net of deferred income taxes. At December 31,
2024, the Corporation reported a net unrealized loss, included in accumulated other comprehensive loss, of $13.9 million, net of
deferred income taxes of $3.7 million, a decrease of $1.1 million compared to the net unrealized holding loss of $15.0 million,
net of deferred income taxes of $4.0 million, at December 31, 2023. Any future changes in interest rates could result in changes
in the fair value of the Corporation's
securities portfolio and capital position. However, accumulated other comprehensive income and loss related to available-for-sale debt
securities is excluded from regulatory capital and does not have an impact on the Corporation's regulatory capital ratios.

 The
following table presents the carrying value of available-for-sale debt securities, at fair value at December 31, 2024 and December
31, 2023:

Cost

 Fair

Value

Cost

 Fair

Value

 AVAILABLE-FOR-SALE DEBT SECURITIES:

 Obligation of U.S.Government Corporations and Agencies:

 $

 128,631

 $

 $

 145,196

 $

 131,340

 6,752

 7,046

 8,515

 9,018

 Other

 123,500

 197,325

 81,680

 82,762

 81,033

 84,956

 Other debt securites

 $

 340,837

 $

 $

 432,336

 $

 Aggregate Unrealized Loss

 $

 (17,589)

 $

 (19,034)

 Aggregate Unrealized Loss as a % of Amortized Cost

 (5.2%)

 (4.4%)

 The
following table presents the weighted-average yields on available-for-sale debt securities by major category and maturity period
at December 31, 2024. Yields are calculated on the basis of the amortized cost and weighted for the scheduled maturity of each security.
Because mortgage-backed securities and collateralized mortgage obligations are not due at a single maturity date, they are not included
in the maturity categories in the following summary.

 (Dollars In Thousands)

 Within

One

Year

 Yield

 One-

Five

Years

 Yield

 Five-

Ten

Years

 Yield

 After

 Ten

Years

 Yield

 Total

 Yield

 AVAILABLE-FOR-SALE DEBT SECURITIES:

 Obligation of U.S.Government Corporations and Agencies:

 Other

 $

 57,000

 0.77%

 $

 66,500

 1.18%

 $

 —

 —

 $

 —

 —

 $

 123,500

 0.99%

 1,321

 3.77%

 6,176

 3.92%

 27,805

 4.13%

 46,378

 4.65%

 81,680

 4.40%

 5.24%

 5.78%

 5.00%

 —

 —

 5.34%

 Sub-total

 $

 58,419

 1.00%

 $

 72,765

 1.53%

 $

 27,892

 4.43%

 $

 46,378

 4.65%

 $

 205,454

 2.48%

 Mortgage-backed securities

 128,631

 2.11%

 6,752

 5.12%

 Total

 $

 340,837

 2.32%

 Marketable Equity Securities

 At December 31, 2024 and December
31, 2023, the Corporation held $1.4 and $1.3 million, respectively, in equity securities recorded at fair value. The following is a summary
of unrealized and realized gains and losses recognized in net income on equity securities during the years ended December 31, 2024 and
2023:

 For the Years

 Ended December 31,

 2024

 2023

 Net gains (losses) recognized during the period on marketable equity securities

 $

 $

 (119)

 Less: Net gains (losses) recognized during the period on marketable equity securities sold during the period

 —

 —

 Unrealized gains (losses) recognized during the period on marketable equity securities still held at the reporting date

 $

 $

 (119)

 See Note 4 within the Corporation's
Notes to the Consolidated Financial Statements which are included in this Annual Report on Form 10-K for more information regarding Corporation's
investment portfolio as of December 31, 2024.

 Loans

 Gross loans receivable increased
5.4% from $1.068 billion at December 31, 2023 to $1.126 billion at December 31, 2024. The percentage distribution in the loan portfolio
is shown in the tables below:

 %

 %

 $

 8.3%

 $

 8.8%

 Commercial real estate:

 Commercial mortgages

 325,882

 28.9%

 326,152

 30.5%

 Student housing

 45,808

 4.1%

 33,650

 3.1%

 56.7%

 55.2%

 1.9%

 2.3%

 Gross loans

 $

 $

 Loan concentrations are considered
to exist when there are amounts loaned to a number of borrowers engaged in similar activities that would cause them to be similarly impacted
by economic or other conditions. Our lending activity is heavily concentrated in the geographic market areas we serve. This geographic
concentration subjects our loan portfolio to the general economic conditions within the state. The risks created by this concentration
have been considered by management and are monitored on an ongoing basis. As of December 31, 2024 and December 31, 2023, there were no
concentrations of loans exceeding 10% of total loans other than the categories of loans disclosed in the table above. We believe our loan
portfolio is diversified relative to industry concentrations across the various loan portfolio categories.

 Banking regulators have established
guidelines of less than 100% of tier 1 capital plus allowance for credit losses in construction lending and less than 300% of tier 1 capital
plus allowance for credit losses in commercial real estate lending that management monitors as part of the risk management process. The
construction concentration ratio is a percentage of the outstanding construction and land development loans to total tier 1 capital plus
allowance for credit losses. The commercial real estate concentration ratio is a percentage of the outstanding balance of non-owner occupied
commercial real estate, multifamily, and construction and land development loans to tier 1 capital plus allowance for credit losses. At
December 31, 2024, the Bank's exposure to commercial real estate was well below these guidelines.

 As of December 31, 2024, commercial
real estate loans totaled $371.7 million or 33.0% of total gross loans. Of this amount commercial mortgage loans represented $325.9 million
or 28.9% of total gross loans and student housing loans represented $45.8 million or 4.1% of total gross loans. The
following table presents the distribution of commercial mortgage loans and related percentage of the total loan portfolio as of December
31, 2024 and December 31, 2023:

 %

 %

 Commercial mortgages:

 Commercial construction

 $

 24,664

 2.2%

 $

 22,530

 2.1%

 Multifamily

 74,463

 6.6%

 70,750

 6.6%

 Owner occupied nonfarm nonresidential

 101,697

 9.0%

 100,095

 9.4%

 Non-owner occupied nonfarm nonresidential

 83,882

 7.4%

 95,403

 8.9%

 Other commercial

 41,176

 3.7%

 37,374

 3.5%

 Total commercial mortgages

 $

 325,882

 28.9%

 $

 326,152

 30.5%

 The
following table presents the maturity distribution and interest rate information of the loan portfolio by major category as of December
31, 2024:

 As of December 31, 2024

 Fixed-Rate Loans

 Variable- or Adjustable-Rate Loans

 All Loans

 1 Year

 1-5

 5-15

 >15

 1 Year

 1-5

 5-15

 >15

 or Less

 Years

 Years

 Years

 Total

 or Less

 Years

 Years

 Years

 Total

 Total

 $

 4,969

 $

 18,161

 $

 15,478

 $

 $

 38,740

 $

 5,473

 $

 3,730

 $

 22,627

 $

 22,875

 $

 54,705

 $

 Commercial real estate:

 Commercial mortgages

 3,271

 3,079

 16,343

 1,187

 23,880

 6,760

 8,438

 73,142

 213,662

 302,002

 325,882

 Student housing

 1,292

 -

 2,069

 -

 3,361

 -

 4,742

 16,207

 21,498

 42,447

 45,808

 4,972

 7,936

 62,455

 43,273

 118,636

 5,250

 4,243

 51,536

 459,287

 520,316

 6,480

 2,473

 1,282

 11,100

 3,383

 6,978

 10,750

 Total

 $

 15,369

 $

 35,656

 $

 98,818

 $

 45,874

 $

 195,717

 $

 17,600

 $

 21,425

 $

 166,895

 $

 724,300

 $

 930,220

 $

 See Note 5 within the Corporation's
Notes to the Consolidated Financial Statements which are included in this Annual Report on Form 10-K for more information regarding the
Corporation's loan portfolio as of December 31, 2024.

 Asset Quality

 Loans
that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of
unpaid principal, net of deferred loan fees and costs, and reduced by the allowance for credit losses. The allowance for credit losses
is established through a provision for credit losses charged to earnings.

 The
Corporation has established and consistently applies loan policies and procedures designed to foster sound underwriting and credit monitoring
practices. Credit risk is managed through the efforts of loan officers, the Chief Credit Officer, the loan review function, as well as
oversight from the Board of Directors. Management continually evaluates its credit risk management practices to ensure problems in
the loan portfolio are addressed in a timely manner, although, as is the case with any financial institution, a certain degree of credit
risk is dependent in part on local and general economic conditions that are beyond management's control. Under the Corporation's
risk rating system, loans are rated pass, special mention, substandard, doubtful, or loss, with all categories reviewed regularly as part
of the risk management practices.

 Non-performing
loans are monitored on an ongoing basis as part of the Corporation's loan review process. Additionally, work-outs for non-performing
loans and foreclosed assets held for sale are actively monitored through the Bank's Credit Department. A potential loss on a non-performing
asset is generally determined by comparing the outstanding loan balance to the fair market value of the pledged collateral, less estimated
cost to sell.

 Management
actively manages non-performing loans in an effort to mitigate loss to the Corporation by working with customers to develop strategies
to resolve borrower difficulties, through sale or liquidation of collateral, foreclosure and other appropriate means. In addition, management
monitors employment and economic conditions within its market area, as weakening of conditions could result in real estate devaluations
and an increase in loan delinquencies, which could negatively impact asset quality and cause an increase in the provision for credit losses.

 The
following table presents information about non-performing assets, as of December 31, 2024 and December 31, 2023:

 Non-performing Assets

 (dollars in thousands)

 2024

 2023

 Non-accrual loans

 $

 $

 4,012

 Loans past due 90 days or more and still accruing

 -

 Total non-performing loans

 4,306

 Foreclosed assets held for sale

 Total non-performing assets

 $

 10,117

 $

 4,476

 Non-performing loans as a percentage of total loans, gross

 0.89%

 0.40%

 Non-performing assets as a percentage of total assets

 0.63%

 0.27%

 Allowance for credit losses as a percentage of total loans, gross

 0.88%

 0.87%

 Allowance for credit losses to non-performing assets

 97.44%

 207.82%

 Total non-performing assets
amounted to $10,117,000, or 0.63% of total assets at December 31, 2024, as compared to $4,476,000, or 0.27% of total assets at December
31, 2023. For the year ended December 31, 2024, the Corporation experienced increases in non-accrual loans in all major loan classifications,
however, the most significant increases were in commercial real estate and residential real estate loans which increased $1,415,000 and
$3,785,000, respectively.

 Increases in residential real
estate non-accrual loans were generally applicable to a homogenous population of well secured loans collateralized by 1-4 family residential
properties. With respect to commercial real estate non-accrual loans, the Corporation has experienced a limited number of large commercial
relationships that have required significant monitoring and workout efforts. As a result, these relationships may significantly impact
the total amount of allowance required on individual loans and may significantly impact the provision for credit losses and the amount
of total charge-offs reported in any one period.

 Management believes it has
been conservative in its decisions concerning identification of loans requiring individual evaluation for credit loss, estimates of loss,
and nonaccrual status; however, the actual losses realized from these relationships could vary materially from the allowances calculated
as of December 31, 2024. Management continues to closely monitor its loan relationships for credit losses and will adjust its estimates
of loss and decisions concerning nonaccrual status, if appropriate.

 Allowance for Credit Losses

 The allowance for credit
losses was $9.9 million at December 31, 2024, compared to $9.3 million at December 31, 2023. The allowance equaled 0.88% of total
loans, net of unearned fees and costs and unamortized fair value adjustments, at December 31, 2024 as compared to 0.87% of total
loans at December 31, 2023. The allowance for credit losses is analyzed quarterly and reviewed by the Corporation's Board of
Directors. No concentration or apparent deterioration in classes of loans or pledged collateral was evident. Regular loan meetings
with the Corporation's Board of Directors reviewed new loans over specified thresholds. Delinquent loans, loan exceptions and certain
large loans are addressed by the full Board no less than monthly to determine compliance with policies.

 The
following tables present the allocation of the allowance for credit losses as of December 31, 2024 and December 31, 2023:

 (dollars in thousands)

 Allowance

for Credit Losses

 Percent of Allowance

 Percent of Loans

to Gross Loans

 Allowance

for Credit Losses

 Percent of Allowance

 Percent of Loans

to Gross Loans

 $

 9.4%

 8.3%

 $

 8.6%

 8.8%

 Commercial real estate

 6,869

 69.7%

 33.0%

 6,847

 73.6%

 33.7%

 1,850

 18.8%

 56.7%

 1,474

 15.8%

 55.2%

 2.1%

 1.9%

 1.9%

 2.3%

 Total

 $

 9,858

 $

 9,302

 See Note 1 and 5 within the
Corporation's Notes to the Consolidated Financial Statements which are included in this Annual Report on Form 10-K for more information
regarding the Corporation's allowance for credit losses as of December 31, 2024.

 Deposits

 Deposits are the primary source
of funds for the Corporation's lending and investing activities. The Corporation provides a range of deposit services to businesses
and individuals, including noninterest-bearing checking accounts, interest-bearing checking accounts, savings accounts, money market accounts
and time deposits. These accounts generally earn interest at rates the Corporation establishes based on market factors and the anticipated
amount and timing of funding needs. The establishment or continuity of a core deposit relationship can be a factor in loan pricing decisions.
While the Corporation's primary focus is on establishing customer relationships to attract core deposits, at times, the Corporation
may use brokered deposits and other wholesale deposits to supplement its funding sources. As of December 31, 2024, the Corporation held
no brokered deposits.

 The following tables summarize
the average balances outstanding and average interest rates for each major category of deposits for years ended December 31, 2024 and
2023, respectively:

 Balance Change

 Rate

 Rate

 %

 Non-interest bearing

 $

 261,935

 -

 %

 $

 186,934

 —

 %

 $

 75,001

 40.1

 %

 Savings

 198,175

 0.03

 167,611

 0.03

 30,564

 18.2

 Interest-bearing demand deposits

 324,602

 2.02

 165,347

 0.31

 159,255

 96.3

 Money market deposits

 109,584

 2.08

 54,190

 1.44

 55,394

 102.2

 Time deposits

 341,740

 3.95

 155,863

 2.33

 185,877

 119.3

 Total deposits

 $

 1,236,036

 1.81

 %

 $

 729,945

 0.68

 %

 $

 506,091

 69.3

 %

 The Corporation believes its
deposit product offerings are properly structured to attract and retain core low-cost deposit relationships. The average cost of interest-bearing
deposits for the years ended December 31, 2024, and 2023, was 2.30% and 0.91%, respectively. The increased cost was primarily attributable
to the increases in rates and increased pricing competition.

 At
December 31, 2024, estimated uninsured deposits, or the portion of deposit accounts which exceeded the Federal Deposit Corporation insurance
limit, totaled $353.2 million. Of this amount, $202.0 million was collateralized by securities pledged by the Corporation or letters of
credit issued through the Federal Home Loan Bank of Pittsburgh. Time deposits of $250,000 or more totaled approximately $100.3 million
at December 31, 2024.

 See Note 7 within the Corporation's
Notes to the Consolidated Financial Statements which are included in this Annual Report on Form 10-K for more information regarding the
Corporation's deposits as of December 31, 2024.

 Borrowings

 Short-term borrowings consist
primarily of securities sold under agreements to repurchase and periodic overnight or short-term Federal Home Loan Bank advances. Average
short-term borrowings amounted to 10.3% and 25.9% of total interest-bearing liabilities for the years ended December 31, 2024 and 2023,
respectively. This change was primarily related to the migration of customer repurchase agreements as well as a paydown in short-term
FHLB borrowings during 2024 as discussed above.

 Long-term borrowings consist
of advances due to the FHLB - Pittsburgh. Under terms of a blanket agreement, the loans are secured by certain qualifying assets of the
Bank which consist principally of first mortgage loans. The carrying value of these collateralized items was $822.1 million at December
31, 2024. The Bank has lines of credit with the Federal Reserve Bank Discount Window, FHLB – Pittsburgh, and Atlantic Community
Bankers Bank in the aggregate amount of $588.0 million at December 31, 2024. The unused portion of these lines of credit was $486.6 million
at December 31, 2024.

 See Note 8 within the Corporation's
Notes to the Consolidated Financial Statements which are included in this Annual Report on Form 10-K for more information regarding the
Corporation's borrowings as of December 31, 2024.

 Capital Resources

 Management
believes, as of December 31, 2024, that Journey Bank meets all capital adequacy requirements to which it is subject. Management annually
performs stress testing on its regulatory capital levels and expects Journey Bank to maintain capital levels that exceed the regulatory
standards for well-capitalized institutions for the next 12 months and for the foreseeable future.

 Future
dividend payments and repurchases of common stock will depend upon maintenance of a strong financial condition, future earnings and capital
and regulatory requirements. In addition, Journey Bank is subject to restrictions on the amount of dividends that may be paid without
approval of banking regulatory authorities. Further, although Muncy Columbia Financial Corporation is not subject to the specific consolidated
capital requirements, its ability to pay dividends, repurchase stock or engage in other activities may be limited by the Federal Reserve
if it fails to hold sufficient capital commensurate with its overall risk profile.

 The following table reflects the Bank's
actual capital amounts and ratios at December 31, 2024 and 2023:

 Journey Bank

 Minimum Required For Capital Adequacy Purposes

 Minimum Required For Capital Adequacy Purposes with Conservation Buffer

 Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations

 (Dollars in Thousands)

 Ratio

 Ratio

 Ratio

 Ratio

 Total capital (to risk-weighted assets)

 $

 152,703

 16.03%

 8.00%

 10.50%

 10.00%

 Tier I capital (to risk-weighted assets)

 15.06%

 6.00%

 8.50%

 8.00%

 Tier I common equity (to risk-weighted assets)

 15.06%

 4.50%

 7.00%

 6.50%

 Tier I capital (to average assets)

 9.10%

 4.00%

 4.00%

 5.00%

 Total risk-weighted assets

 952,452

 Total average assets

 1,576,746

 Journey Bank

 Minimum Required For Capital Adequacy Purposes

 Minimum Required For Capital Adequacy Purposes with Conservation Buffer

 Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations

 (Dollars in Thousands)

 Ratio

 Ratio

 Ratio

 Ratio

 Total capital (to risk-weighted assets)

 $

 138,382

 14.49%

 8.00%

 10.50%

 10.00%

 Tier I capital (to risk-weighted assets)

 13.52%

 6.00%

 8.50%

 8.00%

 Tier I common equity (to risk-weighted assets)

 13.52%

 4.50%

 7.00%

 6.50%

 Tier I capital (to average assets)

 8.03%

 4.00%

 4.00%

 5.00%

 Total risk-weighted assets

 954,878

 Total average assets

 1,607,661

 RESULTS OF OPERATIONS

 Net income in 2024 amounted
to $19.0 million, or $5.33 per share, an increase of $15.6 million compared to $3.4 million, or $1.49 per share, in 2023. The increase
in net income for 2024 compared to 2023 was primarily attributable to a significant increase in net interest income along with nonrecurring
expenses associated with the MBF merger in 2023. Pretax merger-related expenses recorded in 2023 were $3.0 million, compared to $241,000
in 2024. Also, during the fourth quarter 2023, the Corporation recorded a one-time pretax provision for credit losses of $2.9 million
for acquired non-PCD loans.

 Net
interest income increased $27.2 million, or 116.9% to $50.5 million in 2024, from $23.3 million in 2023. Non-interest income
was $10.4 million in 2024, an increase of $3.3 million, or 45.7%, from $7.1 million in 2023, which primarily related to increases
in service charges and fees, earnings on bank-owned life insurance, interchange fees and other non-interest income. Non-interest expense was
$37.7 million in 2024, an increase of $13.6 million, or 56.2%, from $24.1 million in 2023, which was primarily related to increases
in expenses following the MBF merger.

 The
annualized return on average assets was 1.19% in 2024 compared to 0.32% in 2023. The annualized return on average equity
was 11.88% in 2024 compared to 3.48% in 2023. The Corporation declared and paid dividends to holders of common stock of $1.76 per
share in 2024 and $1.71 per share in 2023.

 Net Interest Income

 Net
interest income is the difference between (i) interest income, interest and fees on interest-earning assets, and (ii) interest expense,
interest paid on deposits and borrowed funds. Net interest income represents the largest component of the Corporation's operating
income and, as such, is the primary determinant of profitability. Net interest income is impacted by variations in the volume, rate and
composition of earning assets and interest-bearing liabilities, changes in general market interest rates and the level of non-performing
assets. Interest income is shown on a fully tax-equivalent basis using the corporate statutory tax rate of 21.0% in 2024 and 2023.

 Tax-equivalent
net interest income increased $28.0 million, or 119.0%, to $51.6 million in 2024 compared to $23.6 million in
2023. The increase in tax-equivalent net interest income was due to an increase in tax-equivalent interest income
reflecting higher earning asset volumes and yields, partially offset by an increase in interest expense which resulted
primarily from an increase in interest-bearing deposits and increased cost of funds. Tax-equivalent net interest
margin, a key measurement used in the banking industry to measure income from earning assets relative to the cost to fund those
assets, is calculated by dividing tax-equivalent net interest income by average interest-earning assets. The
Corporation's tax-equivalent net interest margin increased 112 basis points to 3.46% in 2024 compared to 2.34% in 2023, which
was largely caused by increases in yields on earning assets outpacing the increase in cost of funds. Additionally, interest
rate spread, the difference between the average yield on interest-earning assets, shown on a fully tax-equivalent basis, and the
average cost of interest-bearing liabilities, increased 101 basis points to 2.86% in 2024 compared to 1.85% in 2023.

 Tax-equivalent
interest income increased $44.2 million, or 114.4%, to $82.9 million in 2024 from $38.7 million in 2023, which was largely caused
by significant growth in average earning assets, coupled with an increase in the tax-equivalent yield on average earning assets. Average
earning assets increased $482.1 million, or 47.8%, to $1.5 billion in 2024 from $1.0 billion in 2023, resulting in a corresponding
increase to tax-equivalent interest income of $27.1 million. Specifically, average loans increased $493.7 million, or 79.3%, to $1.1
billion in 2024 from $622.5 million in 2023, which reflected the MBF merger as well as strong organic loan growth. Taxable investment
securities averaged $291.0 million in 2024, a decrease of $63.5 million, or 17.9%, compared to $354.4 million in 2023, and tax-exempt
securities averaged $78.9 million in 2024, an increase of $55.4 million, or 235.9%, compared to $23.5 million in 2023, which contributed
to an increase of $1.5 million in tax-equivalent interest income. The tax-equivalent yield on earning assets increased 173 basis
points to 5.56% in 2024 from 3.83% in 2023, which resulted in a corresponding increase in tax-equivalent interest income of $17.1 million.
The Corporation's tax-equivalent yield on loans increased 144 basis points to 6.58% in 2024 compared to 5.14% in 2023, resulting
in a corresponding increase in tax-equivalent interest income of $15.7 million, due primarily to net accretion of loan fair value adjustments
recorded in conjunction with the MBF merger as well as the continued repricing of existing variable rate loans in the Corporation's
portfolio. Meanwhile, the tax-equivalent yield on investment securities increased 79 basis points to 2.49% in 2024 from
1.70% in 2023 and caused a corresponding increase to tax-equivalent interest income of $1.3 million.

 Interest
expense increased $16.2 million, or 107.3%, to $31.3 million in 2024 from $15.1 million in 2023, which was primarily from an increase
in funding costs, coupled with an increase in average deposits resulting from the MBF merger. Average borrowed funds, which is largely
comprised of customer repurchase agreements and FHLB of Pittsburgh advances, averaged $184.5 million in 2024, a decrease of $35.9
million from $220.4 million in 2023. Lower volumes of average borrowed funds resulted in a corresponding decrease in interest expense
of $1.7 million. Total average interest-bearing deposits increased $431.1 million, or 79.4%, to $974.1 million for 2024, compared
to $543.0 million for 2023, which resulted in a corresponding increase in interest expense of $5.6 million. The Corporation experienced
higher funding costs in 2023 and 2024 as a result of rising market rates and increased competition. For the year ended December
31, 2024, the Corporation's cost of funds increased 72 basis points to 2.70% from 1.98% for the year ended December 31, 2023, which
resulted in a corresponding increase in interest expense of $12.3 million.

 The following Average Balance
Sheet and Rate Analysis tables presents the average assets, actual income or expense and the average yield on assets, liabilities and
stockholders' equity for the years ended December 31, 2024 and 2023.

 AVERAGE BALANCE SHEET AND RATE ANALYSIS

 YEARS ENDED DECEMBER 31,

 2024

 2023

 Average Balance

 Interest

 Average Rate

 Average Balance

 Interest

 Average Rate

 ASSETS:

 (1)

 (1)

 Tax-exempt loans

 $

 41,875

 $

 1,889

 4.51%

 $

 31,729

 $

 1,136

 3.58%

 All other loans

 1,074,344

 71,513

 6.66%

 590,814

 30,885

 5.23%

 Total loans (2)(3)(4)

 1,116,219

 73,402

 6.58%

 622,543

 32,021

 5.14%

 Taxable securities

 290,951

 5,063

 1.74%

 354,436

 5,348

 1.51%

 Tax-exempt securitites (3)

 78,907

 4,145

 5.25%

 23,490

 1,061

 4.52%

 Total securities

 369,858

 9,208

 2.49%

 377,926

 6,409

 1.70%

 Federal funds sold

 —

 —

 0.00%

 —

 0.00%

 Interest-bearing deposits in other banks

 5,339

 5.39%

 8,875

 2.57%

 Total interest-earning assets

 1,491,416

 82,898

 5.56%

 1,009,347

 38,658

 3.83%

 Other assets

 102,048

 43,765

 TOTAL ASSETS

 $

 1,593,464

 $

 1,053,112

 LIABILITIES:

 Savings

 $

 198,175

 0.03%

 $

 167,611

 0.03%

 Now deposits

 324,602

 6,564

 2.02%

 165,347

 0.31%

 Money market deposits

 109,584

 2,270

 2.07%

 54,190

 1.44%

 Time deposits

 341,740

 13,507

 3.95%

 155,863

 3,628

 2.33%

 Total interest-bearing deposits

 974,101

 22,402

 2.30%

 543,011

 4,964

 0.91%

 119,908

 5,741

 4.79%

 197,827

 9,119

 4.61%

 64,633

 3,135

 4.85%

 22,575

 1,002

 4.44%

 Total borrowings

 184,541

 8,876

 4.81%

 220,402

 10,121

 4.59%

 Total interest-bearing liabilities

 1,158,642

 31,278

 2.70%

 763,413

 15,085

 1.98%

 Noninterest-bearing deposits

 261,935

 186,934

 Other liabilities

 12,752

 5,538

 Stockholders' equity

 160,135

 97,227

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 $

 1,593,464

 $

 1,053,112

 Interest rate spread (6)

 2.86%

 1.85%

 Net interest income/margin (5)

 $

 51,620

 3.46%

 $

 23,573

 2.34%

 (1)
 Average volume information was compared using daily averages for interest-earning and bearing accounts.

 (2)
 Interest on loans includes loan fee income.

 (3)
 Tax exempt interest revenue is shown on a tax-equivalent basis using a statutory federal income tax rate
of 21 percent for 2024 and 2023.

 (4)
 Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.

 (5)
 Net interest margin is computed by dividing annualized tax-equivalent net interest income by total interest
earning assets.

 (6)
 Interest rate spread represents the difference between the average rate earned on interest-earning assets
and the average rate paid on interest-bearing liabilities.

 Reconcilement of Taxable Equivalent Net Interest Income

 For the Years Ended December 31,

 2024

 2023

 Total interest income

 $

 81,743

 $

 38,347

 Total interest expense

 31,278

 15,085

 Net interest income

 50,465

 23,262

 Tax equivalent adjustment

 1,155

 Net interest income

 (fully taxable equivalent)

 $

 51,620

 $

 23,573

 Rate/Volume Analysis

 To enhance the understanding
of the effects of volumes (the average balance of earning assets and costing liabilities) and average interest rate fluctuations on the
Consolidated Balance Sheets as it pertains to net interest income, the table below reflects these changes for the years ended December
31, 2024 versus December 31, 2023:

 Years Ended December 31,

 2024 vs 2023

 Increase (Decrease)

 Due to

 Volume

 Rate

 Net

 Interest income:

 Loans, tax-exempt

 $

 $

 $

 Loans

 25,277

 15,351

 40,628

 Taxable investment securities

 (958

)

 (285

)

 Tax-exempt investment securities

 2,503

 3,084

 Federal funds sold

 —

 —

 —

 Interest bearing deposits

 (91

)

 Total interest-earning assets

 27,094

 17,146

 44,240

 Interest expense:

 Savings

 NOW deposits

 5,571

 6,058

 Money market deposits

 1,491

 Time deposits

 4,327

 5,552

 9,879

 (3,592

)

 (3,378

)

 Long-term borrowings, FHLB

 1,867

 2,133

 Total interest-bearing liabilities

 3,894

 12,299

 16,193

 Change in net interest income

 $

 23,200

 $

 4,847

 $

 28,047

 Provision for Credit Losses - Loans

 For the year ended December
31, 2024, the Corporation recorded a $847,000 provision for credit losses on loans compared to $2.6 million for the year ended December
31, 2023. The provision for 2024 primarily reflects an increase in volume in the loan portfolio along with changes in qualitative factors
related to the nature of the loan portfolio, volume and severity of past due loans, loan grade migration, changes in lending staff and
changes in lending policies and procedures. The provision for 2023 was primarily as a result of a $2.9 million one-time provision related
to purchased non-PCD loans acquired as part of the MBF merger, as well as a net credit due to other factors.

 See Note 1 and 5 within the
Corporation's Notes to the Consolidated Financial Statements which are included in this Annual Report on Form 10-K for more information
regarding the Corporation's allowance for credit losses as of December 31, 2024.

 Non-interest Income

 Total non-interest income
increased $3.3 million or 45.7% to $10.4 million for the year ended December 31, 2024, compared to $7.1 million for the year ended December
31, 2023. Service charges and fees increased $638,000 due to an increased number of accounts and increased transaction volumes due to
the MBF merger. Interchange fees increased $801,000 or 43.6% due to an increase in the volume of transactions due to the MBF merger and
continued increase in electronic payments. Earnings on bank-owned life insurance increased $425,000 or 84.5% from $503,000 to $928,000
due to an increase in cash surrender values related to the MBF merger. Other non-interest income increased $930,000 or 92.4% due primarily
to incentives received in conjunction with the launch of a debit card reissuance project, a governmental grant recorded in conjunction
with the completion of a solar energy project, increases in merchant services income and secondary market mortgage servicing fees.

 Change

 % Total

 % Total

 %

 Service charges and fees

 $

 2,732

 26.3

 %

 $

 2,094

 29.4

 %

 $

 30.5

 %

 Interchange fees

 2,640

 25.4

 1,839

 25.8

 43.6

 Gain on sale of loans

 4.0

 3.9

 49.6

 Earnings on bank-owned life insurance

 8.9

 7.1

 84.5

 Brokerage

 7.8

 8.9

 26.9

 Trust

 9.1

 12.4

 6.6

 Gains (losses) on marketable equity securities

 0.6

 (119

)

 (1.7

 150.4

 Realized losses on available-for-sale debt securities, net

 (85

)

 (0.8

 —

 —

 (85

)

 (100.0

 Other non-interest income

 1,937

 18.7

 1,007

 14.2

 92.4

 Total non-interest income

 $

 10,375

 100.0

 %

 $

 7,121

 100.0

 %

 $

 3,254

 45.7

 %

 Non-interest Expense

 Total
non-interest expense increased $13.6 million or 56.2% from $24.1 million for the year ended December 31, 2023, to $37.7 million for the
year ended December 31, 2024. The MBF merger has contributed significantly to increases in all components of non-interest expense. Salaries
and employee benefits increased $7.4 million, occupancy increased $1.1 million, Pennsylvania shares tax increased $576,000, data processing
and telecommunications increased $2.0 million and other non-interest expense increased $1.6 million. All of these increases relate to
the closing of the MBF merger on November 11, 2023. Merger-related expenses totaled $241,000 for the year ended December 31, 2024, compared
to $3.0 million for the year ended December 31, 2023. Amortization of intangibles totaled $2.2 million for the year ended December 31,
2024, compared to $183,000 for the year ended December 31, 2023 with the increase being due primarily to amortization of the core deposit
intangible related to the MBF merger.

 One standard to measure non-interest
expense is to express annualized non-interest expense as a percentage of average total assets. For the year ended December 31, 2024 this
percentage was 2.53% compared to 2.39% for the year ended December 31, 2023.

 Change

 % Total

 % Total

 %

 Salaries and employee benefits

 $

 19,027

 50.5

 %

 $

 11,618

 48.2

 %

 $

 7,409

 63.8

 %

 Occupancy

 2,459

 6.5

 1,391

 5.8

 1,068

 76.8

 Furniture and equipment

 1,665

 4.4

 1,192

 4.9

 39.7

 Pennsylvania shares tax

 2.5

 1.5

 157.8

 Professional fees

 1,522

 4.0

 1,280

 5.3

 18.9

 Director's fees

 1.6

 1.4

 89.6

 Federal deposit insurance

 2.2

 2.0

 71.5

 Data processing and telecommunications

 3,595

 9.5

 1,559

 6.5

 2,036

 130.6

 Automated teller machine and interchange

 1.8

 1.4

 97.4

 Merger-related expenses

 0.6

 3,028

 12.6

 (2,787

)

 (92.0

 Amortization of intangibles

 2,202

 5.8

 0.8

 2,019

 100.0

 Other non-interest expense

 3,901

 10.6

 2,350

 9.6

 1,551

 66.0

 Total non-interest expense

 $

 37,662

 100.0

 %

 $

 24,110

 100.0

 %

 $

 13,552

 56.2

 %

 LIQUIDITY

 The Bank's liquidity,
represented by cash and due from banks, is a product of its operating, investing and financing activities. The Bank's primary sources
of funds are deposits, securities sold under agreements to repurchase, principal repayments of securities and outstanding loans, funds
provided from operations, and day-to-day FHLB – Pittsburgh borrowings. In addition, the Bank invests excess funds in short-term
interest-earning assets such as overnight deposits or U.S. agency securities, which provide liquidity to meet lending requirements. While
scheduled payments from the amortization of loans and securities and short-term investments are relatively predictable sources of funds,
general interest rates, economic conditions and competition greatly influence deposit flows and repayments on loans and mortgage-backed
securities.

 The Bank strives to maintain sufficient liquidity to fund operations, loan
demand and to satisfy fluctuations in deposit levels. The Bank is required to have enough investments that qualify as liquid assets in
order to maintain sufficient liquidity to ensure safe and sound banking operations. Liquidity may increase or decrease depending upon
the availability of funds and comparative yields on investments in relation to the return on loans. The Bank attempts to maintain adequate
but not excessive liquidity, and liquidity management is both a daily and long-term function of its business management. The Bank manages
its liquidity in accordance with a board of directors-approved asset liability policy and liquidity contingency plan, which are administered
by its asset-liability committee ("ALCO"). ALCO reports interest rate sensitivity, liquidity, capital and investment-related
matters on a quarterly basis to the Bank's board of directors.

 The Bank reviews cash flow
projections regularly and updates them in order to maintain liquid assets at levels believed to meet the requirements of normal operations,
including loan commitments and potential deposit outflows from maturing certificates of deposit and savings withdrawals. While deposits
and securities sold under agreements to repurchase are its primary source of funds, when needed it is also able to generate cash through
borrowings from the FHLB. At December 31, 2024, the Bank had remaining available capacity with FHLB, subject to certain collateral restrictions,
of $468.0 million.

 Liquidity management is required
to ensure that adequate funds will be available to meet anticipated and unanticipated deposit withdrawals, debt service payments, investment
commitments, commercial and consumer loan demand, and ongoing operating expenses. Funding sources include principal repayments on loans,
sale of assets, growth in time and core deposits, short and long-term borrowings, investment securities coming due, loan prepayments and
repurchase agreements. Regular loan payments are a dependable source of funds, while the sale of investment securities, deposit growth
and loan prepayments are significantly influenced by general economic conditions and the level of interest rates.

 The
statement of cash flows presents the change in cash and cash equivalents from operating, investing and financing activities. Cash and
due from banks and interest-bearing deposits in other banks, which comprise cash and cash equivalents, are the Corporation's most
liquid assets. Cash and cash equivalents totaled $17.4 million at December 31, 2024, a decrease of $1.0 million, or 5.4%, from $18.4 million
at December 31, 2023, as net cash inflows from operating and investing activities were less than net cash outflows from financing activities.

 Net
cash inflows from investing activities provided $48.5 million of cash and cash equivalents during the year ended December 31, 2024. Accounting
for the majority of the net cash inflows was $107.1 million related to proceeds from sales, paydowns, calls and maturities of available-for-sale
debt securities. This was partially offset by purchases of available-for-sale debt securities of $14.9 million and a net increase in loans
and leases of $47.4 million, which reflected strong loan demand. Financing activities used $66.4 million in net cash, which resulted primarily
from a decrease in short-term borrowings, consisting of customer repurchase agreements and short-term FHLB borrowings, of $184.1 million.
These outflows were offset by a $140.6 million increase in deposits. These changes were primarily related to a strategic initiative to
reposition customer repurchase agreements into core deposit accounts. Operating activities include net income, adjusted for the effects
of non-cash transactions including, among others, depreciation and amortization and the provision for credit losses, and is the primary
source of cash flows from operations. For the year ended December 31, 2024, operating activities provided the Corporation with $16.9 million
in net cash, which primarily reflected net income of $19.0 million.

 The
Corporation regularly analyzes its ability to generate adequate amounts of cash to meet its short and long-term cash requirements and
plans. As part of its quarterly asset liability management procedures, the Corporation performs liquidity cash flow forecasts in various
base level and stress scenarios to monitor future cash needs. As of December 31, 2024, the Corporation is expected to maintain a level
cash balance over the next 12 months. The Corporation has not identified any known demands, commitments, events or uncertainties that
would result or that are reasonably likely to result in its liquidity position materially increasing or decreasing over the next 12 months.
The Corporation's long-term cash needs are regularly analyzed through its strategic planning process, which includes a detailed
review of liquidity and funding needs.

 We manage liquidity on a daily
basis. We believe that our liquidity is sufficient to meet present and future financial obligations and commitments on a timely basis.
However, see potential liquidity risk factors at Item 1A – Risk Factors and refer to the Consolidated Statements of Cash Flows contained
in this Annual Report on Form 10-K.

 INTEREST RATE RISK MANAGEMENT

 Interest rate risk management
involves managing the extent to which interest-sensitive assets and interest-sensitive liabilities are matched. Interest rate sensitivity
is the relationship between market interest rates and earnings volatility due to the repricing characteristics of assets and liabilities.
The Bank's net interest income is affected by changes in the level of market interest rates. In order to maintain consistent earnings
performance, the Bank seeks to manage, to the extent possible, the repricing characteristics of its assets and liabilities.

 One major objective of the
Bank when managing the rate sensitivity of its assets and liabilities is to stabilize net interest income. The management of and authority
to assume interest rate risk is the responsibility of the Bank's ALCO, which is comprised of senior management and Board members.
ALCO meets quarterly to monitor the ratio of interest sensitive assets to interest sensitive liabilities. The process to review interest
rate risk is a regular part of management of the Bank. Consistent policies and practices of measuring and reporting interest
rate risk exposure, particularly regarding the treatment of noncontractual assets and liabilities, are in effect. In addition, there is
an annual process to review the interest rate risk policy with the Board of Directors which includes limits on the impact to earnings
from shifts in interest rates.

 The ratio between assets and
liabilities repricing in specific time intervals is referred to as an interest rate sensitivity gap. Interest rate sensitivity gaps can
be managed to take advantage of the slope of the yield curve as well as forecasted changes in the level of interest rate changes.

 To manage the interest sensitivity
position, an asset/liability model called "gap analysis" is used to monitor the difference in the volume of the Bank's
interest sensitive assets and liabilities that mature or reprice within given periods. A positive gap (asset sensitive) indicates that
more assets reprice during a given period compared to liabilities, while a negative gap (liability sensitive) has the opposite effect.
The Bank employs computerized net interest income simulation modeling to assist in quantifying interest rate risk exposure. This process
measures and quantifies the impact on net interest income through varying interest rate changes and balance sheet compositions. The use
of this model assists the ALCO to gauge the effects of the interest rate changes on interest sensitive assets and liabilities in order
to determine what impact these rate changes will have upon our net interest spread. At December 31, 2024, our cumulative gap positions
were within the internal risk management guidelines.

 In
addition to gap analysis, the Bank uses net interest income simulations and economic value of equity ("EVE") simulations as
the primary tools in measuring and managing the Bank's position and considers balance sheet forecasts, the Bank's liquidity
position, the economic environment, anticipated direction of interest rates and the Bank's earnings sensitivity to changes in these
rates in its modeling. In addition, ALCO has established policy tolerance limits for acceptable negative changes in net interest income.
Furthermore, as part of its ongoing monitoring, ALCO requires annual back testing of modeling results, which involves after-the-fact comparisons
of projections with the Bank's actual performance to measure the validity of assumptions used in the modeling techniques.

 The
following table illustrates the simulated impact of parallel and instantaneous interest rate shocks of +100, +200, +300, -100, -200, and
-300 basis points on net interest income and the change in economic value over a one-year time horizon from the December 31, 2024 levels:

 Rates +100

 Rates +200

 Rates +300

 Rates -100

 Rates -200

 Rates -300

 Earnings at risk:

 Percent change in net interest income

 6.66%

 -10.00%

 0.46%

 -15.00%

 -6.07%

 -20.00%

 16.19%

 -10.00%

 18.41%

 -15.00%

 20.51%

 -20.00%

 Economic value at risk:

 Percent change in economic value of equity

 -6.96%

 -15.00%

 -15.14%

 -25.00%

 -24.11%

 -30.00%

 3.65%

 -15.00%

 4.95%

 -25.00%

 4.95%

 -30.00%

 Model
results from the simulation at December 31, 2024 indicated that the Bank was projected to see an increase in net interest income over
a one-year horizon in any of the rate shock scenarios, with the exception of the +300 scenario, which showed a 6.07% decrease. The percent
change in EVE is expected to decrease in all rates up scenarios and increase in all rates down scenarios. All modeled exposures to net
interest income and EVE for the next twelve-month horizon are within internal ALCO policy guidelines.

 This
analysis does not represent a forecast for the Bank and should not be relied upon as being indicative of expected operating results. These
simulations are based on numerous assumptions, including but not limited to, the nature and timing of interest rate levels, prepayments
on loans and securities, deposit decay rates, pricing decisions on loans and deposits, reinvestment/replacements of asset and liability
cash flows, and other factors. While assumptions reflect current economic and local market conditions, the Bank cannot make any assurances
as to the predictive nature of these assumptions, including changes in interest rates, customer preferences, competition and liquidity
needs, or what actions ALCO might take in responding to these changes.

 It is our opinion that the
asset/liability mix and the interest rate risk associated with the balance sheet is within manageable parameters. Additionally, the Bank's
ALCO meets quarterly with an asset liability management consultant.

 IMPACT OF INFLATION
AND CHANGING PRICES

 The
preparation of financial statements in conformity with U.S. GAAP requires management to measure the Corporation's financial position
and operating results primarily in terms of historic dollars. Changes in the relative value of money due to inflation or recession are
generally not considered. The primary effect of inflation on the Corporation's operations is primarily related to increases in operating
expenses. Management considers changes in interest rates to impact our financial condition and results of operations to a far greater
degree than changes in prices due to inflation. Although interest rates are greatly influenced by changes in the inflation rate, they
do not necessarily change at the same rate or in the same magnitude as the inflation rate. The Corporation manages interest rate risk
in several ways. There can be no assurance that the Corporation will not be materially adversely affected by future changes in interest
rates, as interest rates are highly sensitive to many factors that are beyond its control. Additionally, inflation may adversely impact
the financial condition of the Corporation's borrowers and could impact their ability to repay their loans, which could negatively
affect the Corporation's asset quality through higher delinquency rates and increased charge-offs. Management will carefully consider
the impact of inflation and rising interest rates on the Corporation's borrowers in managing credit risk related to the loan portfolio.

 Item 7A. Quantitative and Qualitative Disclosures
about Market Risk

 The information called for
by this item can be found at Item 7 of this report on Form 10-K under the caption "Interest Rate Risk Management" and is incorporated
in its entirety by reference under this Item 7A.

 Item 8. Financial Statements and Supplementary Data

 Consolidated Balance Sheets

 (In Thousands, Except Share and Per Share Data)

 2024

 2023

 ASSETS

 Cash and due from banks

 $
 11,200

 $
 14,614

 Interest-bearing deposits in other banks

 6,180

 3,763

 Total cash and cash equivalents

 —

 Available-for-sale debt securities, at fair value

 Marketable equity securities, at fair value

 1,355

 1,295

 Restricted investment in bank stocks, at cost

 7,095

 10,394

 Loans held for sale

 1,691

 Loans receivable

 Allowance for credit losses

 ( 9,858
)

 ( 9,302
)

 Loans, net

 1,116,079

 1,059,127

 Premises and equipment, net

 26,484

 27,569

 Foreclosed assets held for sale

 4,850

 5,362

 Bank-owned life insurance

 40,953

 40,209

 Investment in limited partnerships

 5,092

 5,828

 Deferred tax asset, net

 10,012

 12,634

 Goodwill

 25,609

 25,609

 Other intangible assets, net

 11,895

 Other assets

 5,993

 6,663

 TOTAL ASSETS

 $
 1,595,958

 $
 1,639,779

 LIABILITIES

 Interest-bearing deposits

 $
 1,032,729

 $
 884,654

 Noninterest-bearing deposits

 Total deposits

 1,292,429

 1,150,669

 55,536

 70,448

 Accrued interest payable

 1,857

 2,358

 Other liabilities

 11,338

 9,947

 TOTAL LIABILITIES

 1,429,548

 1,485,954

 STOCKHOLDERS' EQUITY

 Common stock, par value $ 1.25 per share; 15,000,000
 shares authorized; issued 3,841,438 and outstanding 3,532,713 at December 31, 2024; issued 3,834,976 and outstanding 3,570,276 at
 December 31, 2023;

 4,802

 4,794

 Additional paid-in capital

 83,543

 83,343

 Retained earnings

 103,268

 90,514

 Accumulated other comprehensive loss

 ( 13,896
)

 ( 15,036
)

 Treasury stock, at cost; 308,725 shares at December 31, 2024 and 264,700 shares at December 31, 2023

 ( 11,307
)

)

 TOTAL STOCKHOLDERS' EQUITY

 166,410

 153,825

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 $
 1,595,958

 $
 1,639,779

 Consolidated Statements of Income

 (In Thousands, Except Share and Per Share Data)

 2024

 2023

 INTEREST AND DIVIDEND INCOME

 Interest and fees on loans:

 Taxable

 $
 71,513

 $
 30,885

 Tax-exempt

 1,518

 Interest and dividends on investment securities:

 Taxable

 4,256

 5,030

 Tax-exempt

 3,361

 Dividend and other interest income

 Federal funds sold

 —

 Deposits in other banks

 TOTAL INTEREST AND DIVIDEND INCOME

 81,743

 38,347

 INTEREST EXPENSE

 Deposits

 22,402

 4,964

 5,741

 9,119

 3,135

 1,002

 TOTAL INTEREST EXPENSE

 31,278

 15,085

 NET INTEREST INCOME

 50,465

 23,262

 Provision for credit losses - loans

 2,554

 Recovery of credit losses - off balance sheet credit exposures

 ( 10
)

 ( 33
)

 TOTAL PROVISION FOR CREDIT LOSSES

 2,521

 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

 49,628

 20,741

 NON-INTEREST INCOME

 Service charges and fees

 2,732

 2,094

 Interchange fees

 2,640

 1,839

 Gain on sale of loans

 Earnings on bank-owned life insurance

 Brokerage

 Trust

 Gains (losses) on marketable equity securities

 ( 119
)

 Realized losses on available-for-sale debt securities, net

 ( 85
)

 —

 Other non-interest income

 1,937

 1,007

 TOTAL NON-INTEREST INCOME

 10,375

 7,121

 NON-INTEREST EXPENSE

 Salaries and employee benefits

 19,027

 11,618

 Occupancy

 2,459

 1,391

 Furniture and equipment

 1,665

 1,192

 Pennsylvania shares tax

 Professional fees

 1,522

 1,280

 Director's fees

 Federal deposit insurance

 Data processing and telecommunications

 3,595

 1,559

 Automated teller machine and interchange

 Merger-related expenses

 3,028

 Amortization of intangibles

 2,202

 Other non-interest expense

 3,901

 2,350

 TOTAL NON-INTEREST EXPENSE

 37,662

 24,110

 INCOME BEFORE INCOME TAX PROVISION

 22,341

 3,752

 INCOME TAX PROVISION

 3,318

 NET INCOME

 $

 $
 3,387

 EARNINGS PER SHARE - BASIC AND DILUTED

 $
 5.33

 $
 1.49

 WEIGHTED AVERAGE SHARES OUTSTANDING

 3,568,145

 2,279,808

 Consolidated Statements of Comprehensive Income

 2024

 2023

 Net Income

 $

 $
 3,387

 Other comprehensive income:

 Unrealized holding gains on available-for-sale debt securities

 1,360

 15,629

 Tax effect

 ( 287
)

 ( 3,281
)

 Net realized losses included in net income

 —

 Tax effect

 ( 18
)

 —

 Other comprehensive income, net

 1,140

 Comprehensive income

 $
 20,163

 $
 15,735

 Consolidated Statements of Changes in Stockholders'
Equity

 Accumulated

 (In Thousands Except Share and Per

 Common
 Stock

 Additional
 Paid-In

 Retained

 Other
 Comprehensive

 Treasury

 Total
 Stockholders'

 Share Data)

 Shares

 Capital

 Earnings

 Loss

 Stock

 Equity

 3,834,976

 $
 4,794

 $
 83,343

 $
 90,514

 $
 ( 15,036
)

 $
)

 $
 153,825

 Net income

 —

 —

 —

 —

 —

 Other comprehensive income

 —

 —

 —

 —

 1,140

 —

 1,140

 Common stock issuance under employee stock purchase plan

 6,462

 —

 —

 —

 Recognition of employee stock purchase plan expense

 —

 —

 —

 —

 —

 Purchase of treasury stock (44,025 shares)

 —

 —

 —

 —

 —

 ( 1,517
)

 ( 1,517
)

 Cash dividends ($ 1.76 per share)

 —

 —

 —

 ( 6,269
)

 —

 —

 ( 6,269
)

 Balance, December 31, 2024

 3,841,438

 $
 4,802

 $
 83,543

 $
 103,268

 $
 ( 13,896
)

 $
 ( 11,307
)

 $
 166,410

 Balance, December 31, 2022

 2,343,835

 $
 2,930

 $
 30,030

 $
 90,156

 $
 ( 27,384
)

 $
)

 $
 85,942

 Net income

 —

 —

 —

 3,387

 —

 —

 3,387

 Other comprehensive income

 —

 —

 —

 —

 —

 Common stock issuance under employee stock purchase plan

 2,181

 —

 —

 —

 Recognition of employee stock purchase plan expense

 —

 —

 —

 —

 —

 Cash dividends ($ 1.71 per share)

 —

 —

 —

 ( 3,557
)

 —

 —

 ( 3,557
)

 Shares issued for acquisition of Muncy Bank Financial, Inc.

 1,488,960

 1,861

 53,231

 —

 —

 —

 55,092

 Cumulative effect of adoption of ASU 2016-13

 —

 —

 —

 —

 —

 3,834,976

 $
 4,794

 $
 83,343

 $
 90,514

 $
 ( 15,036
)

 $
)

 $
 153,825

 Consolidated Statements of Cash Flows

 2024

 2023

 OPERATING ACTIVITIES

 Net Income

 $

 $
 3,387

 Adjustments to reconcile net income to net cash provided by operating activities:

 Provision for credit losses

 2,521

 Depreciation and amortization of premises and equipment

 1,515

 Accretion of loan fair value adjustments, net

 ( 10,685
)

 ( 948
)

 Amortization of deposit fair value adjustments, net

 1,185

 (Gains) losses on marketable equity securities

 ( 60
)

 Realized losses on available-for-sale debt securities, net

 —

 (Accretion) amortization of investment securities, net

 ( 719
)

 Losses on sale of foreclosed assets held for sale, net

 Deferred income taxes

 2,317

 ( 200
)

 Gain on sale of loans

 ( 413
)

 ( 276
)

 Proceeds from sale of mortgage loans

 16,219

 13,286

 Originations of mortgage loans held for resale

 ( 17,131
)

 ( 12,395
)

 Amortization of intangibles

 2,202

 Amortization of investment in limited partnerships

 Decrease (increase) in accrued interest receivable

 ( 869
)

 Earnings on bank-owned life insurance

 ( 928
)

 ( 503
)

 Gain on settlement of bank-owned life insurance claims

 ( 66
)

 —

 (Decrease) increase in accrued interest payable

 ( 501
)

 Other, net

 2,643

 Net cash provided by operating activities

 16,900

 7,079

 INVESTING ACTIVITIES

 Net cash and cash equivalents provided by business combination

 —

 7,845

 Available-for-sale debt securities:

 Purchases

 ( 14,924
)

 ( 789
)

 Proceeds from sales

 51,734

 —

 Proceeds from paydowns, calls and maturities

 55,323

 36,847

 Proceeds from maturities of interest-bearing time deposits

 —

 Purchase of bank-owned life insurance

 ( 44
)

 ( 45
)

 Proceeds from redemption of restricted investment in bank stocks

 10,386

 7,097

 Purchase of restricted investment in bank stocks

 ( 7,087
)

 ( 6,098
)

 Net increase in loans

 ( 47,381
)

 ( 32,420
)

 Proceeds from sale of foreclosed assets held for sale

 —

 Purchase of investment in limited partnership

 —

 ( 2,366
)

 Acquisition of customer relationship intangibles

 ( 354
)

 —

 Acquisition of premises and equipment

 ( 407
)

 ( 968
)

 Net cash provided by investing activities

 48,483

 9,103

 FINANCING ACTIVITIES

 Net increase (decrease) in deposits

 140,575

 ( 53,125
)

 Net (decrease) increase in short-term borrowings

 ( 184,144
)

 20,720

 Proceeds from long-term borrowings

 —

 25,000

 Repayment of long-term borrowings

 ( 15,212
)

 ( 4
)

 Purchase of treasury stock

 ( 1,517
)

 —

 Proceeds from issuance of common stock

 Cash dividends paid

 ( 6,269
)

 ( 3,557
)

 Net cash used for financing activities

 ( 66,380
)

 ( 10,889
)

 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

 ( 997
)

 5,293

 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 13,084

 CASH AND CASH EQUIVALENTS, END OF PERIOD

 $

 $

 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

 Interest paid

 $
 31,779

 $
 12,914

 Income taxes paid

 —

 Loans transferred to foreclosed assets held for sale

 Loans held for sale transferred to loans

 —

 3,587

 Bank-owned life insurance death benefit receivable

 —

 See Note 2 for additional information on the noncash
effects of business combination

 MUNCY COLUMBIA FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 The accounting and reporting
policies of Muncy Columbia Financial Corporation (the "Corporation") are in accordance with the accounting principles generally
accepted in the United States of America and conform to common practices within the banking industry. The more significant policies follow:

 Principles of Consolidation

 The consolidated financial
statements include the accounts of Muncy Columbia Financial Corporation and its wholly-owned subsidiary, Journey Bank (the "Bank").
All significant inter-company balances and transactions have been eliminated in consolidation.

 Nature of Operations

 The Corporation is a financial
holding company that provides full-service banking, including trust and financial services, through the Bank, to individuals and corporate
customers. The Bank has twenty-two offices covering five Counties in Northcentral Pennsylvania. As discussed further in Note 2, in
2023 the Corporation expanded its operations by acquiring Muncy Bank Financial, Inc. The Corporation and Bank are subject to the regulation
of the Pennsylvania Department of Banking, the Federal Deposit Insurance Corporation, and the Federal Reserve Bank of Philadelphia.

 Procuring deposits and making
loans are the major lines of business. The deposits are mainly deposits of individuals and small businesses and include various types
of checking accounts, statement savings, money market accounts, interest checking accounts, individual retirement accounts, and certificates
of deposit. The Bank also offers non-insured "Repo sweep" accounts which are collateralized by pledged securities. Lending
products include commercial, consumer, and mortgage loans. Trust services include administration of various estates, pension plans, self-directed
IRA's and other services. Financial services are offered through a third-party brokerage arrangement. These services include a full
line of stocks, bonds and other non-insured financial products which are offered through the Bank's investment center.

 Use of Estimates

 The preparation of financial
statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of these consolidated financial statements and the reported amounts of revenue and expenses during the reporting
periods. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant
changes include the allowance for credit losses, fair values of available-for-sale debt securities based on estimates from independent
valuation services or from brokers and the fair values of assets acquired and liabilities assumed in business combinations. Assumptions
and factors used in the estimates are evaluated on an annual basis or whenever events or changes in circumstances indicate that the previous
assumptions and factors have changed. The result of the analysis could result in adjustments to the estimates.

 Cash and Cash Equivalents

 Cash and cash equivalents
include cash on hand and in banks and federal funds sold. Interest-earning deposits have original maturities of 90 days or less. Net cash
flows are reported for loan, deposit, and short-term borrowing transactions.

 Interest-Bearing
Time Deposits

have original maturities in excess of one year and are carried at cost.

 Available-for-Sale
Debt Securities

 Debt securities classified
as available-for-sale are carried at fair value with unrealized gains and losses, net of the related tax effects, reflected as a separate
component of stockholders' equity. Investment securities are classified at the time of purchase, based on management's intention
and ability, as securities held-to-maturity, securities available-for-sale, or securities held for trading. Debt securities acquired with
the intent and ability to hold to maturity are stated at cost, adjusted for amortization of premium and accretion of discount, which are
computed using the interest method and recognized as adjustments of interest income. Debt securities which are held principally as a source
of liquidity are classified as available-for-sale. Debt securities that are bought and held principally for the purpose of selling them
in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in current
earnings. Realized security gains and losses are computed using the specific identification method. The Corporation does not hold any
held-to-maturity or trading securities as of December 31, 2024 and 2023. Interest and dividends on investment securities are recognized
as income when earned.

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

 The Bank measures expected
credit losses on available-for-sale debt securities when the Bank does not intend to sell, or when it is not more likely than not that
it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement
to sell is met, the security's amortized cost basis is written down to fair value through income. For available-for-sale debt securities
that do not meet the aforementioned criteria, the Bank evaluates whether the decline in fair value has resulted from credit losses or
other factors. In making this assessment, the Bank considers the extent to which fair value is less than amortized cost, any changes to
the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this
evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared
to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost
basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value
is less than the amortized cost basis. Economic forecast data is utilized to calculate the present value of expected cash flows. The Bank
obtains its forecast data through a subscription to a widely recognized and relied upon company who publishes various forecast scenarios.
Management evaluates the various scenarios to determine a reasonable and supportable scenario, and utilizes a single scenario in the model.
Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

 The allowance for credit
losses on available-for-sale debt securities is included within investment securities available-for-sale on the Consolidated Balance Sheets.
Changes in the allowance for credit losses are recorded within provision for credit losses on the Consolidated Statements of Income. Losses
are charged against the allowance for credit losses when the Bank believes the collectability of an available-for-sale security is in
jeopardy or when either of the criteria regarding intent or requirement to sell is met.

on available-for-sale debt securities totaled $ 1,160,000 and $ 1,644,000 at December 31, 2024 and 2023, respectively, and is included within
 accrued interest receivable on the Consolidated Balance Sheets. This amount is excluded from the estimate of expected credit losses. Available-for-sale
debt securities are typically classified as non-accrual when the contractual payment of principal or interest has become 90 days past
due or management has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities
are placed on non-accrual status, unpaid interest credited to income is reversed.

 Marketable
Equity Securities

 Marketable equity securities are carried
at fair value with unrealized and realized gains and losses included in net income.

 Restricted Investment in Bank Stocks

 Restricted investment in bank
stocks represent required investments in the common stock of correspondent banks and consists of common stock of the Federal Home Loan
Bank of Pittsburgh ("FHLB") of $ 6,995,000 and $ 10,294,000 at December 31, 2024 and 2023, respectively, and other correspondent
banks of $ 100,000 at both December 31, 2024 and 2023. As no active market exists for this stock, it is carried at cost. As a member of
the FHLB, the Bank is required to maintain an investment in FHLB stock based on advances and other criteria. The Bank evaluated its holding
of restricted stock and noted no credit loss at December 31, 2024 and 2023.

 Loans Held for Sale

 Mortgage loans originated
and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value, as determined by outstanding
commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

 Mortgage loans held for sale
are generally sold with servicing rights retained; the mortgage servicing rights are recognized as assets upon the sale. See further information
for accounting for these assets under "Mortgage Servicing Rights." Gains and losses on sales of mortgage loans are based on
the difference between the selling price and the carrying value of the related loan sold.

 Loans Receivable

 Loans receivable that management has the intent and ability to hold for
the foreseeable future or until maturity or payoff generally are reported at unpaid principal balance, net of unamortized deferred loan
fees and costs, and an allowance for credit losses. Interest on fixed rate real estate loans and most business loans is accrued using
a 360-day year. Interest on other loans is accrued over the term of each loan generally using the simple interest method based on a 365-day
year. The Corporation recognizes nonrefundable loan origination fees and certain direct loan origination costs over the
life of the related loans as an adjustment of loan yield using the interest method.

 A loan is considered past
due when a required payment is not received by the scheduled due date and is considered delinquent when it is 30 days or more past due.
Loans are placed on nonaccrual status when principal or interest is past due 90 days or more and the collection of interest is doubtful,
except for residential mortgage loans secured by 1-4 family dwellings. Residential mortgage loans are placed on nonaccrual status when
it is established that funds are not available for repayment. Interest accrued but not collected as of the date of placement on nonaccrual
status is reversed and charged against current income. While a loan is classified as nonaccrual and the future collectability of the recorded
loan balance is doubtful, collections of interest and principal are generally applied as a reduction to the principal outstanding. Generally,
loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for
a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest
is no longer in doubt.

 Purchased Credit Deteriorated ("PCD")
Loans

 The Corporation purchased
loans in connection with its acquisition of Muncy Bank Financial, Inc. in 2023, some of which had, at the acquisition date, experienced
more than insignificant credit deterioration since origination. The Corporation considers several factors as indicators that an acquired
loan has evidence of deterioration in credit quality. These factors include loans classified as nonaccrual, loans with a risk rating of
watch or worse, loans past due 30 days and over and still accruing, loans that are current but were more than 60 days past due at least
once since origination and loans that are current but were delinquent 30 days, more than 3 times, since origination. PCD loans are recorded
at the amount paid. An allowance for credit losses is determined on a collective basis and is allocated to individual loans. The sum of
the loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial
amortized costs basis and the par value of the loan is noncredit discount or premium, which is amortized into interest income over the
life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.

 Allowance for Credit Losses – Loans

 The allowance for credit losses
("ACL") is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost
basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the
ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of the amounts previously charged-off and expected
to be charged-off.

 The ACL is an estimate of
expected credit losses, measured over the contractual life of a loan that considers our historical loss experience, current conditions
and forecasts of future economic conditions. Determination of an appropriated ACL inherently subjective and may have significant changes
from period to period.

 The methodology for determining
the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk
characteristics and evaluation of loans that do not share risk characteristics with other loans.

 The allowance for credit
losses is measured on a collective (pool) basis when similar risk characteristics exist. The Bank has identified the following portfolio
segments and measures the allowance for credit losses using the following methods:

 Commercial real estate

 Historical credit loss experience
is the basis for the estimation of expected credit losses. We apply historical loss rates to pools of loans with similar risk characteristics.
After consideration of the historic loss calculation, management may apply qualitative adjustments to reflect the current conditions and
reasonable and supportable forecasts not already reflected in the historical loss information at the balance sheet date. Our reasonable
and supportable forecast adjustment is based on various economic forecasts, unemployment forecast and management judgment. For periods
beyond our reasonable and supportable forecast, we revert to historical loss rates utilizing a straight-line method over a one-year reversion
period.

 The Bank has elected to exclude
accrued interest receivable from the measurement of its ACL totaling $ 3,690,000 and $ 3,714,000 at December 31, 2024 and 2023, respectively.
When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income.

 The ACL for individual loans
begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other
pooled loans and therefore, should be individually assessed. We evaluate all commercial loans that meet the following criteria: (1) when
it is determined that foreclosure is probable; or (2) substandard, doubtful and

 nonperforming loans when repayment is expected
to be provided substantially through the operation or sale of the collateral; or (3) when it is determined by management that a loan does
not share similar risk characteristics with other loans. Specific reserves are established based on the following three acceptable methods
for measuring the ACL: (1) the present value of expected future cash flows discounted at the loan's original effective interest
rate; (2) the loan's observable market price; or (3) the fair value of the collateral when the loan is collateral dependent. Our
individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent.
Collateral values are discounted to consider dispositions costs when appropriate. A specific reserve is established or a charge-off is
taken if the fair value of the loan is less than the loan balance.

 Allowance for Credit Losses – Off-Balance
Sheet Credit Exposures

 Financial
instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit. The Corporation'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
Corporation 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 Corporation's Consolidated Statements
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 Corporation's Consolidated Balance Sheets and the related credit loss expense
is recorded in the Consolidated Statements of Income.

 Mortgage Servicing Rights

 When mortgage loans are sold
with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sale
of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based
on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently
measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and
over the period of, the estimated future net servicing income of the underlying loans. Mortgage servicing rights are reported in other
assets on the Consolidated Balance Sheets. Servicing rights are evaluated for impairment annually based upon the fair value of the rights
as compared to the carrying amount. Significant inputs to the fair value of mortgage servicing rights include expected net servicing income
to be received, the expected life of the underlying loans and the discount rate. No impairment losses on mortgage servicing rights were
recorded for the years ended December 31, 2024 and 2023.

 Total loans serviced for
the benefit of others amounted to $ 245,517,000 and $ 256,993,000 at December 31, 2024 and 2023, respectively, and are not included in the
Consolidated Balance Sheets. Servicing fee income, which is reported on the Consolidated Statements of Income as other non-interest income,
is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed
amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing
fee income. Net servicing fees totaled $ 441,000 and $ 313,000 for the years ended December 31, 2024 and 2023, respectively.

 Transfers
of Financial Assets

 Transfers of financial assets
are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered
when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it
from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective
control over the transferred assets through an agreement to repurchase them before their maturity.

 Foreclosed
Assets Held for Sale

 Foreclosed assets are held
for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent
to foreclosure, valuations are periodically performed by management and assets are carried at the lower of the carrying amount or fair
value less cost to sell. Net operating expenses and gains and losses realized from disposition are included in non-interest expense and
income, respectively, within the Consolidated Statements of Income.

 Premises and Equipment

 Land is carried at cost. Premises
and equipment are stated at cost less accumulated depreciation computed principally on the straight-line method over the estimated useful
lives of the assets. Maintenance and minor repairs are charged to operations as incurred. The cost and accumulated depreciation of the
premises and equipment retired or sold are eliminated from the property accounts at the time of retirement or sale, and the resulting
gain or loss is reflected in current operations.

 Intangible Assets – Goodwill

 Goodwill arises from business
combinations and is determined as the excess of the fair value of the consideration transferred over the fair value of the net assets
acquired and liabilities assumed as of the acquisition date. The Corporation has recorded net goodwill of $ 25,609,000 at both December
31, 2024 and 2023, related to the 2023 acquisition of Muncy Bank Financial, Inc. and its subsidiary, The Muncy Bank & Trust Company,
and the 2008 acquisition of Columbia Financial Corporation and its subsidiary, First Columbia Bank & Trust Co. Goodwill acquired in
a business combination is determined to have an indefinite useful life and is not amortized, but tested for impairment at least annually
or more frequently if events and circumstances exists that indicate an impairment test should be performed. Any impairment of goodwill
results in a charge to income. Goodwill is tested for impairment at the reporting unit level and an impairment loss is recorded to the
extent that the carrying amount of goodwill exceeds its implied fair value. The Corporation employs general industry practices in evaluating
the impairment of its goodwill and other intangible assets. Based upon its evaluation, management determined there was no impairment
of goodwill during 2024 or 2023. No assurance can be given that future impairment tests will not result in a charge to earnings.

 Intangible Assets – Other

 The Corporation's other
intangible assets consist of core deposit and customer relationship intangibles. These intangibles are being amortized on a sum of the
years digits method over 10 years and had a net carrying value of $ 10,047,000 and $ 11,895,000 as of December 31, 2024 and 2023, respectively.
The recoverability of the carrying value is evaluated on an ongoing basis, and permanent declines in value, if any, are charged to expense.
Amortization of the Corporation's other intangible assets amounted to $ 2,202,000 and $ 183,000 for the years ended December 31, 2024
and 2023, respectively.

 The estimated amortization
expense of the other intangible assets over their remaining life is as follows:

 (In Thousands):

 Core Deposit

Intangible

 Customer

Relationship

Intangible

 Total

 2025

 $

 1,958

 $

 $

 2,020

 2026

 1,738

 1,793

 2027

 1,519

 1,568

 2028

 1,299

 1,342

 2029

 1,080

 1,116

 Thereafter

 2,123

 2,208

 Total

 $

 9,717

 $

 $

 Bank-Owned Life Insurance

 The Corporation has purchased
life insurance policies on certain officers and directors. Bank-owned life insurance is recorded at its cash surrender value, or the amount
that can be realized. Increases in the cash surrender value, and gains received upon the death of an insured, are recognized as a component
of non-interest income within the Consolidated Statements of Income. The policies can be liquidated, if necessary, with tax costs associated.
However, the Corporation intends to hold these policies and accordingly, the Corporation has not provided for deferred income taxes on
the earnings from the increase in cash surrender value.

 Investments in Limited Partnerships

 The Corporation is a limited
partner in six partnerships at December 31, 2024 that provide low income housing in the Corporation's geographic market area. The
investments are accounted for under the proportional amortization method. The proportional amortization method results in the cost of
the investments being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization
of the investments and the income tax credits being presented net in the Consolidated Statements of Income as a component of income tax
expense. The amount of tax credits allocated to the Corporation was $ 840,000 and the amortization of the investments in limited partnerships
was $ 746,000 in 2024. The amount of tax credits allocated to the Corporation was $ 484,000 and the amortization of the investments in limited
partnerships was $ 346,000 in 2023. The carrying value of the Corporation's investments in limited partnerships was $ 5,092,000 and
$ 5,828,000 at December 31, 2024 and 2023, respectively.

 Income Taxes

 The provision for income taxes
is based on the results of operations, adjusted primarily for tax-exempt income. Certain items of income and expense are reported in different
periods for financial reporting and tax return purposes. Deferred tax assets and liabilities are determined based on the differences between
the consolidated financial statement and income tax basis of assets and liabilities measured by using the enacted tax rates and laws expected
to be in effect when the timing differences are expected to reverse. Deferred tax expense or benefit is based on the difference between
deferred tax asset or liability from period to period.

 In assessing the realizability
of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will
not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities,
the projected future taxable income and tax planning strategies in making this assessment. A valuation allowance, if needed, reduces deferred
tax assets to the amount expected to be realized.

 A tax position is recognized
as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax
examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being
realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded.

 The Corporation and the Bank
are subject to U.S. federal income tax and Commonwealth of Pennsylvania tax. The Corporation and the Bank file a consolidated federal
income tax return. The Corporation is also required to file a separate state income tax return. With limited exceptions, the Corporation
is no longer subject to examination by Federal or State taxing authorities for years prior to 2021. At December 31, 2024 and December
31, 2023 the Corporation did not have any unrecognized tax benefits. The Corporation does not expect the amount of any unrecognized tax
benefits to significantly increase in the next twelve months. The Corporation recognizes interest related to income tax matters as interest
expense and penalties related to income tax matters as other noninterest expense. At December 31, 2024 and December 31, 2023, the Corporation
does not have any amounts accrued for interest and/or penalties.

 Per Share Data

 Basic earnings per share are
calculated by dividing net income by the weighted average number of shares of common stock outstanding at the end of each period. Diluted
earnings per share are calculated by increasing the denominator for the assumed conversion of all potentially dilutive securities. The
Corporation does not have any securities which have or will have a dilutive effect, so accordingly, basic and diluted per share data are
the same. Treasury shares are not deemed outstanding for earnings per share calculations.

 Cash Flow Information

 For purposes of reporting
consolidated cash flows, cash and cash equivalents include cash on hand and due from banks, interest-bearing deposits in other banks and
federal funds sold. The Corporation considers cash classified as interest-bearing deposits with other banks as a cash equivalent because
they are represented by cash accounts essentially on a demand basis. Federal funds are also included as a cash equivalent because they
are generally purchased and sold for one-day periods.

 Treasury Stock

 The purchase of the Corporation's
common stock is recorded at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on
a last-in first-out basis.

 Trust Assets and Income

 Property held by the Corporation
in a fiduciary or agency capacity for its customers is not included in the accompanying consolidated financial statements because such
items are not assets of the Corporation and the Bank. Trust Department income is generally recognized on a cash basis and is not materially
different than if it was reported on an accrual basis.

 Advertising Costs

 It is the Corporation's
policy to expense advertising costs in the period in which they are incurred. Advertising expenses for the years ended December 31, 2024
and 2023 were approximately $ 715,000 and $ 322,000, respectively.

 Comprehensive Income

 The Corporation is required
to present comprehensive income and its components in a full set of general-purpose financial statements for all periods presented. The
Corporation's other comprehensive income is composed exclusively of the net unrealized gains and losses attributable to available-for-sale
debt securities.

 Revenue Recognition

 Under Financial Accounting
Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606, management determined that the
primary sources of revenue associated with financial instruments, including interest income on loans and investments, along with certain
noninterest revenue sources including investment security gains, loan servicing charges, gains on the sale of loans, and earnings on
bank owned life insurance are not within the scope of Topic 606. The Corporation's largest sources of noninterest income within
the scope of Topic 606 are as follows:

 Trust and Brokerage fees – Trust and investment advisory income is primarily comprised of fees earned from the management and administration of trusts and customer investment portfolios. The Corporation's performance obligation is generally satisfied over a period of time and the resulting fees are billed monthly or quarterly, based upon the month end market value of the assets under management. Payment is generally received after month end through a direct charge to customers' accounts. Other performance obligations (such as delivery of account statements to customers) are generally considered immaterial to the overall transactions price. Commissions on transactions are recognized on a trade-date basis as the performance obligation is satisfied at the point in time in which the trade is processed.

 Service charges and fees – The Corporation has contracts with its deposit account customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Corporation or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Corporation has an unconditional right to the fee consideration. The Corporation also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. All these fees are attributed to specific performance obligations of the Corporation where revenue is recognized at a defined point in time upon the completion of the requested service/transaction.

 Interchange fees – The Corporation issues debit cards to consumer and business customers with checking deposit accounts. Debit card and ATM transactions are processed via electronic systems that involve several parties. The Corporation's debit card and ATM transaction processing is executed via contractual arrangements with payment processing networks, a processor and a settlement bank. As described above, all deposit liabilities are considered to have one-day terms and therefore interchange revenue from customers' use of their debit cards to initiate transactions are recognized in income at the time when the services are provided and related fees received in the Corporation's deposit account with the settlement bank. Incremental costs associated with ATM and interchange processing are recognized as expense when incurred within noninterest expense in the Consolidated Statements of Income.

 Segment Reporting

 Management has determined
that the Corporation has one reportable segment, "Community Banking." All of the Corporation's activities
are interrelated, and each activity is dependent and assessed based on how each of the activities of the Corporation supports the others.

 The Community Banking segment
derives revenues from traditional banking and related financial services to individual, business and government customers. Through its
branch, remote capture, internet banking, telephone, mobile banking, and automated teller machine network, the Bank offers a full array
of commercial and retail financial services, including the taking of time, savings, and demand deposits; the making of commercial, consumer
and mortgage loans; and the providing of other financial services. The Bank also performs personal, corporate, pension and fiduciary services
as well as offers diverse investment products through its investment center. The Corporation does not have intra-entity sales or transfers
other than dividends paid to the Corporation from the Bank.

 The accounting policies of
the Community Banking segment are the same as those described in the summary of significant accounting policies above. The Corporation's
chief operating decision maker is the Chief Executive Officer. The Chief Executive Officer assesses performance for the Community Banking
segment and decides how to allocate resources based on net income that is reported on the Consolidated Statements of Income. The measure
of segment assets is reported on the Consolidated Balance Sheets as total assets.

 The Chief Executive Officer
uses net income to evaluate income generated from segment assets (return on average assets) in determining appropriate strategic initiatives
and balance sheet management practices. Net income is used to monitor budget versus actual results. The Chief Executive Officer also
uses net income in peer analysis by benchmarking the Corporation's competitors. The peer analysis along with the monitoring of budgeted
versus actual results are used in assessing performance of the segment and in establishing management's strategic outlook.

 Reclassifications

 Certain amounts in the consolidated
financial statements of the prior years have been reclassified to conform to presentations used in the 2024 consolidated financial statements.
Such reclassifications had no effect on the Corporation's consolidated financial condition or net income.

 Adoption of New Accounting Standards

 In June 2016, the FASB issued
ASU No. 2016-13, "Financial Instruments – Credit Losses (Topics 326): Measurement of Credit Losses on Financial Instruments"
and subsequent related updates. This ASU replaces the incurred loss methodology for recognizing credit losses and requires businesses
and other organizations to measure the current expected credit losses (CECL) on financial assets measured at amortized cost, including
loans and held-to-maturity securities, net investment in leases, off-balance sheet credit exposures such as unfunded commitments, and
other financial instruments. In addition, ASC 326 requires credit losses on available-for-sale debt securities to be presented as an allowance
rather than as a write-down when management does not intend to sell or believes that it is not more likely than not they will be required
to sell. This guidance became effective on January 1, 2023 for the Corporation.

 The Corporation adopted this
guidance, and subsequent related updates, using the modified retrospective approach for all financial assets measured at amortized cost,
including loans, available-for-sale debt securities and unfunded commitments. On January 1, 2023, the Corporation recorded a cumulative
effect increase to retained earnings of $ 528,000, net of tax, of which $ 490,000 related to loans, $ 38,000 related to unfunded commitments,
and $ 0 related to available-for-sale securities. The Corporation has no held-to-maturity securities.

 The Corporation adopted the
provisions of ASC 326 related to presenting other-than-temporary impairment on available-for-sale debt securities prior to January 1,
2023 using the prospective transition approach, though no such changes had been recorded on the securities held by the Corporation as
of the date of adoption.

 The Corporation expanded the
pooling utilized under the legacy incurred loss method to include additional segmentation based on risk. The impact of the change from
the incurred loss model to the current expected credit loss model is detailed below.

 Assets:

 January 1, 2023

 Pre-ASC 326

Adoption

 Impact of

ASC 326

Adoption

 As Reported

Under

ASC 326

 Assets:

 Allowance for Credit Losses - Loans

 $

 3,077

 $

 ( 2,617

)

 $

 2,897

 3,198

 6,095

 1,041

 ( 959

)

 ( 39

)

 Unallocated

 ( 204

)

 —

 $

 7,279

 $

 ( 621

)

 $

 6,658

 Liabilities:

 Allowance for Credit Losses on

 Off-Balance Sheet Credit Exposure

 $

 $

 ( 48

)

 $

 In March 2022, the FASB issued
ASU No. 2022-02, " Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures."
The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted CECL and enhance the
disclosure requirements for modifications of receivables made with borrowers experiencing financial difficulty. In addition, the amendments
require disclosure of current period gross write-offs by year of origination for financing receivables and net investments in leases
in the existing vintage disclosures. This ASU became effective on January 1, 2023 for the Corporation. The adoption of this ASU resulted
in updated disclosures within our financial statements but otherwise did not have a material impact on the Corporation's consolidated
financial statements.

 In March 2023, the FASB issued
Accounting Standards Update ("ASU") No. 2023-02, Investments – Equity Method and Joint Ventures (Topic 323):
Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. ASU 2023-02 is intended
to improve the accounting for investments in tax credit structures. ASU 2023-02 allows entities to elect to account for qualifying tax
equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits.
Previously, this method was only available for qualifying tax equity investments in low-income housing tax credit structures. The guidance
is effective for fiscal years beginning after December 15, 2023. The adoption of this ASU resulted in updated disclosures within our financial
statements but otherwise did not have a material impact on the Corporation's consolidated financial statements.

 In November 2023, the FASB
issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07
expands segment disclosure requirements for public entities to require disclosure of significant segment expenses and other segment items
on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit or loss and
assets that are currently required annually. This guidance is effective for fiscal years beginning after December 15, 2023, and interim
periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this ASU resulted in
updated disclosures within our financial statements but otherwise did not have a material impact on the Corporation's consolidated
financial statements.

 Recently Issued But Not Yet Effective Accounting
Standards

 In December 2023, the
FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which improves the
transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation
and (2) income taxes paid disaggregated by jurisdiction. ASU No. 2023-09 is effective for public business entities for annual periods
beginning after December 15, 2024. The ASU may be adopted on a prospective or retrospective basis and early adoption is
permitted. The Corporation is currently evaluating the impact the new guidance will have on related disclosures related to income
taxes.

 In November 2024, the
FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures,
which requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses. In January
2025, the FASB issued ASU 2025-01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation
Disclosures, which clarifies the effective date of ASU 2024-03, which is effective for public business entities for annual periods
beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The Corporation
is currently evaluating the impact the new guidance will have on relevant disclosures.

 2. BUSINESS COMBINATION

 On April 18, 2023, CCFNB Bancorp,
Inc. ("CCFNB") and Muncy Bank Financial, Inc. ("MBF") 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) MBF merged with and into CCFNB, with CCFNB being the surviving entity, and (ii) The Muncy Bank & Trust Company
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 and First Columbia Bank changed its name to Journey Bank.

 At the effective time of the
merger, MBF's shareholders received a fixed exchange ratio of 0.9259 shares of the Corporation's common stock for each MBF
common share they owned, except to the extent of cash received for fractional shares at $ 41.47 per share. Total purchase consideration
was $ 55,101,000, including common stock with a fair value of $ 55,092,000 and cash of $ 9,000 paid for fractional shares.

 MBF
was a Pennsylvania corporation that conducted its business primarily through its wholly owned subsidiary The Muncy Bank & Trust Company,
which operated from a main office in Muncy, Pennsylvania, and had nine additional branches throughout Northcentral Pennsylvania.

 As
a result of the acquisition, the Corporation issued 1,488,960 common shares. The shares were issued with a value of $ 37.00 per
share, which was based on the closing price of the Corporation's stock on November 10, 2023.

 The
following table summarizes the consideration paid for MBF and the amounts of the assets acquired and liabilities assumed recognized at
the acquisition date of November 11, 2023:

 (In Thousands, Except Share and Per Share Data)

 Purchase price consideration

 Muncy Columbia Financial Corporation shares issued

 1,488,960

 Per share value assigned to shares issued

 $

 37.00

 Total purchase price assigned to shares issued

 $

 55,092

 Cash paid in lieu of fractional shares

 Fair value of total consideration transferred

 $

 55,101

 Total purchase price consideration

 $

 55,101

 Recognized amounts of identifiable assets acquired and liabilities assumed

 Cash and cash equivalents

 $

 7,854

 Available-for-sale debt securities

 93,026

 Restricted investment in bank stocks

 8,170

 Loans gross

 504,100

 Allowance credit losses

 ( 215

)

 Loans, net

 503,885

 Premises and equipment, net

 14,939

 2,271

 Core deposit intangible

 12,078

 Deferred tax asset

 7,339

 Other assets

 20,878

 Total identifiable assets acquired

 671,416

 Deposits

 Interest-bearing

 416,149

 Noninterest-bearing

 105,144

 Borrowings

 105,473

 Accrued interest payable

 1,384

 Other liabilities

 5,837

 Total liabilities assumed

 633,987

 Total identifiable net assets

 37,429

 Goodwill resulting from the merger

 $

 17,672

 The Corporation determined
that this acquisition constitutes a business combination and therefore was accounted for using the acquisition method of accounting. Accordingly,
as of the date of the acquisition, the Corporation recorded the assets acquired, liabilities assumed and consideration paid at fair value.
The $ 17.7 million excess of the consideration paid over the fair value of assets acquired was recorded as goodwill and is not amortizable
or deductible for tax purposes. The amount of goodwill arising from the acquisition consists largely of the synergies and economies of
scale expected from combining the operations of the Corporation with MBF.

 The fair value of the 1,488,960 common
shares issued was determined based on the $ 37.00 closing market price of the Corporation's common shares on November 10,
2023. While the valuation of the acquired assets and liabilities is substantially complete, fair value estimates are subject to adjustment
during the provisional period, which may last up to twelve months subsequent to the acquisition date. During this period, the
Corporation may obtain additional information to refine the valuations and adjust the recorded fair value, although such adjustments are
not expected to be significant. Valuations subject to adjustments include, but are not limited to, the fair value of acquired loans, deposits,
land and building, core deposit intangible and other assets and liabilities.

 The following is a description
of the valuation methodologies used to estimate the fair values of major categories of assets acquired and liabilities assumed. The Corporation
used an independent valuation specialist to assist with the determination of fair values for certain acquired assets and assumed liabilities.

 Cash and cash equivalents - The estimated fair value was determined to approximate the carrying
amount of these assets.

 Available-for-sale debt securities - The estimated fair value of the investment portfolio
was based on quoted market prices, dealer quotes, and pricing obtained from independent pricing services.

 Loans - The estimated fair value of loans were based on a discounted cash flow methodology
applied on a pooled basis for nonpurchased credit-deteriorated ("non-PCD") loans, accruing purchased credit-deteriorated loans
and on an individual basis for nonaccruing purchased
credit-deteriorated ("PCD") loans. The valuation considered underlying characteristics including loan type, term, rate, payment
schedule and credit rating. The discounted cash flow methodology involved assumptions and judgements as to credit risk, expected lifetime
losses, environmental factors, collateral values, discount rates, expected payments and expected prepayments.

 Premises and equipment - The estimated fair value of land and buildings were determined by
independent market-based appraisals.

 Core deposit intangible - The core deposit intangible was valued utilizing a discounting cash
flow method approach, which recognizes the cost savings represented by the expense of maintaining the core deposit base (net of deposit
fee income) versus the cost of an alternative funding source. The valuation incorporates assumptions related to account retention, discount
rates, deposit interest rates, deposit maintenance costs and alternative funding rates.

 Time deposits - The estimated fair value of time deposits was determined using a discounted
cash flow approach incorporating a discount rate equal to current market interest rates offered on time deposits with similar terms and
maturities.

 Borrowings - The estimated fair value of short-term borrowings were determined to approximate
carrying value. The estimated fair value of long-term borrowings from the FHLB were determined using a discounted cash flow approach incorporating
a discount rate equal to current market interest rates offered on borrowings with similar terms and maturities.

 Acquired
loans are classified into two categories: PCD loans and non-PCD loans. PCD loans are defined as a loan or group of loans that have experienced
more than insignificant credit deterioration since origination. Non-PCD loans will have an allowance established on acquisition date,
which is recognized as an expense through provision for credit losses. For PCD loans, an allowance is recognized on day 1 by
adding it to the fair value of the loan, which is the "Day 1 amortized cost". There is no provision for credit loss
expense recognized on PCD loans because the initial allowance is established by grossing-up the amortized cost of the PCD loan.

 A
Day 1 allowance for credit losses on non-PCD loans of $ 2.9 million was recorded through the provision for credit
losses within the Consolidated Statements of Income. At the date of acquisition, of the $ 529.0 million of loans acquired
from MBF, $ 41.1 million, or 7.8 %, of MBF's loan portfolio, was accounted for as PCD loans.

 The following table provides
details related to the fair value of acquired PCD loans:

 Unpaid principal

balance

 PCD
Allowance for

Credit Loss at

Acquisition

 (Discount)

Premium on

Acquired Loans

 Fair Value of

PCD Loans at

Acquisition

 $

 2,606

 $

 ( 41

)

 $

 ( 99

)

 $

 2,466

 Commercial real estate

 12,305

 ( 104

)

 ( 881

)

 11,320

 25,373

 ( 61

)

 ( 930

)

 24,382

 ( 9

)

 Total

 $

 41,084

 $

 ( 215

)

 $

 ( 1,898

)

 $

 38,971

 The following table provides
details related to the fair value and Day 1 provision related to the acquired non-PCD loans:

 Unpaid principal

balance

 (Discount)

Premium on

Acquired Loans

 Fair
Value of
Non-PCD

Loans at Acquisition

 Day 1Provision for Credit

Losses- Non-PCD Loans

 $

 39,781

 $

 ( 2,955

)

 $

 36,826

 $

 Commercial real estate

 145,624

 ( 6,417

)

 139,207

 1,235

 292,722

 ( 14,207

)

 278,515

 1,003

 9,748

 ( 285

)

 9,463

 Total

 $

 487,875

 $

 ( 23,864

)

 $

 464,011

 $

 2,932

 Amounts recognized separately
from the acquisition include primarily legal fees, investment banking fees, system conversion costs, severance costs and contract termination
costs. These costs were included in merger-related expenses within non-interest expense on the Consolidated Statements of Income and amounted
to $ 241,000 and $ 3,028,000 for the years ended December 31, 2024 and 2023, respectively.

 Results of operations for
MBF prior to the acquisition date are not included in the Consolidated Statements of Income for the year ended December 31, 2023.
The core processing systems, including general ledger, of the Corporation and MBF were merged on November 11, 2023. As such, MBF net interest
income and net income from November 11, 2023 through December 31, 2023, which are included in the Corporation's Consolidated Statements
of Income, are not uniquely identifiable.

pro forma information as if the acquisition of MBF had occurred on January 1, 2022. The table below has been prepared for comparative
purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of
the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited proforma information does
not reflect management's estimate of any revenue-enhancing opportunities nor anticipated cost savings as a result of the integration
and consolidation of the acquisition. Merger and acquisition integration costs have been removed and amortization of fair value
adjustments are included in the numbers below.

 Year Ended December 31,

 (In Thousands, Except Per Share Data)

 2023

 2022

 Net interest income

 $

 48,693

 $

 54,914

 Non-interest income

 9,711

 8,974

 Net income

 17,917

 22,865

 Pro forma earnings per share - basic and diluted

 $

 5.02

 $

 6.41

 3. ACCUMULATED OTHER COMPREHENSIVE LOSS

 The following table presents the changes in accumulated
other comprehensive loss by component, net of the tax, for the years ended December 31, 2024 and 2023:

 Unrealized Loss on Available-for-Sale Debt Securities (a)

 Balance, December 31, 2022

 $

 ( 27,384)

 Other comprehensive income before reclassifications, net of tax

 Amounts reclassified from accumulated other comprehensive loss, net of tax

 -

 Net change in accumulated other comprehensive loss

 ( 15,036)

 Other comprehensive income before reclassifications, net of tax

 1,073

 Amounts reclassified from accumulated other comprehensive loss, net of tax

 Net change in accumulated other comprehensive loss

 1,140

 Balance, December 31, 2024

 $

 ( 13,896)

 (a)
 All amounts are net of tax. Amounts in parentheses indicate debits.

 The following table presents the amounts reclassified
out of accumulated other comprehensive loss by component, net of tax, for the years ended December 31, 2024 and 2023:

 Details about accumulated other comprehensive loss

 Amounts Reclassified from

Accumulated Other

Comprehensive Loss (a)

 2024

 2023

 Net realized losses on available-for-sale debt securities

 $

 ( 85

)

 $

 -

 Income tax effect

 —

 $

 ( 67

)

 $

 -

 (a)
 All amounts are net of tax. Amounts in parentheses indicate debits.

 4. SECURITIES

 The amortized cost, related estimated fair value,
and unrealized gains and losses of available-for-sale debt securities were as follows at December 31, 2024 and December 31, 2023:

 Gross

 Gross

 Fair

 Cost

 Gains

 Value

 Obligation of U.S. Government Corporations and Agencies:

 $

 128,631

 $

 $

 ( 14,989

)

 $

 6,752

 —

 7,046

 Other

 123,500

 —

 ( 4,046

)

 81,680

 1,666

 ( 584

)

 82,762

 —

 $

 340,837

 $

 2,030

 $

 ( 19,619

)

 $

 Gross

 Gross

 Fair

 Cost

 Gains

 Value

 Obligation of U.S. Government Corporations and Agencies:

 $

 145,196

 $

 1,158

 $

 ( 15,014

)

 $

 131,340

 8,515

 —

 9,018

 Other

 197,325

 —

 ( 9,613

)

 81,033

 4,032

 ( 109

)

 84,956

 —

 $

 432,336

 $

 5,702

 $

 ( 24,736

)

 $

 Securities available-for-sale
with an aggregate fair value of $ 176,016,000 and $ 263,706,000 at December 31, 2024 and December 31, 2023, respectively, were pledged to
secure public funds, trust funds, securities sold under agreements to repurchase and other balances as required by law.

 The amortized cost and estimated
fair value of investment securities, by expected maturity, are shown below at December 31, 2024. Expected maturities on debt securities
will differ from contractual maturities, because some borrowers may have the right to call or prepay obligations with or without call
or prepayment penalties.

 Cost

 Fair Value

 Due in one year or less

 $

 58,419

 $

 57,496

 Due after one year to five years

 72,765

 69,622

 Due after five years to ten years

 27,892

 27,728

 Due after ten years

 46,378

 47,649

 Sub-total

 205,454

 202,495

 Mortgage-backed securities

 128,631

 6,752

 7,046

 Total debt securities

 $

 340,837

 $

 The Corporation'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.

the gross proceeds received, and gross realized gains and losses, on sales of available-for-sale debt securities for the years ended December
31, 2024 and 2023. Gains and losses realized on sales of available-for-sale debt securities are included in non-interest income in the
Consolidated Statements of Income.

 For the Years Ended December 31,

 2024

 2023

 Gross proceeds received on sales

 $

 51,734

 $

 —

 Gross realized gains

 —

 Gross realized losses

 ( 680

)

 —

 The following summary shows
the gross unrealized losses and fair value, aggregated by investment category of those individual securities for which an allowance for
credit losses has not been recorded that have been in a continuous unrealized loss position for less than or more than 12 months as of
December 31, 2024 and December 31, 2023:

 Less than Twelve Months

 Twelve Months or Greater

 Total

 Gross

 Gross

 Gross

 Fair

 Fair

 Fair

 Value

 Value

 Value

 Obligations of U.S. Government Corporations and Agencies:

 $

 14,456

 $

 ( 332

)

 $

 97,308

 $

 ( 14,657

)

 $

 111,764

 $

 ( 14,989

)

 Other

 —

 —

 ( 4,046

)

 ( 4,046

)

 31,646

 ( 475

)

 3,138

 ( 109

)

 34,784

 ( 584

)

 Total

 $

 46,102

 $

 ( 807

)

 $

 219,900

 $

 ( 18,812

)

 $

 266,002

 $

 ( 19,619

)

 Less than Twelve Months

 Twelve Months or Greater

 Total

 Gross

 Gross

 Gross

 Fair

 Fair

 Fair

 Value

 Value

 Value

 Obligations of U.S. Government Corporations and Agencies:

 $

 $

 ( 1

)

 $

 112,884

 $

 ( 15,013

)

 $

 112,931

 $

 ( 15,014

)

 Other

 —

 —

 ( 9,613

)

 ( 9,613

)

 10,284

 ( 90

)

 1,663

 ( 19

)

 11,947

 ( 109

)

 Total

 $

 10,331

 $

 ( 91

)

 $

 302,259

 $

 ( 24,645

)

 $

 312,590

 $

 ( 24,736

)

 At December 31, 2024, the
Corporation had a total of 97 debt securities that have been in a gross unrealized loss position for less than twelve months with depreciation
of 1.7 % from the Corporation's amortized cost basis.

 At December 31, 2024, the
Corporation had a total of 121 debt securities that have been in a gross unrealized loss position for greater than twelve months with
depreciation of 8.6 % from the Corporation's amortized cost basis.

 At December 31, 2024, unrealized
losses on debt securities have not been recognized into income because the issuers bonds are of high credit quality (rated BBB or higher),
management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated
recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The fair value is expected
to recover as the bonds approach maturity.

 As of December 31, 2024 and
2023, no allowance for credit loss ("ACL") was required for debt securities. The Bank does not have the intent to sell and
does not believe it will be more likely than not to be required to sell any of these securities prior to a recovery of their fair value
to amortized cost, which may be at maturity.

 As of December 31, 2024, all
debt securities were rated above investment grade. Based on the payment status, rating and management's evaluation of these securities,
no ACL was required for the debt securities as of December 31, 2024. As of December 31, 2024, the underlying issuers continue to make
timely principal and interest payments on the securities.

 Equity securities with a readily determinable
fair value are stated at fair value with realized and unrealized gains and losses reported in income. At December 31, 2024 and 2023,
the Corporation had $1,355,000 and $1,295,000, respectively, in marketable equity securities recorded at fair value. The following is
a summary of unrealized and realized gains and losses recognized in net income on marketable equity securities during the years ended
December 31, 2024 and 2023:

 For the Years

 Ended December 31,

 2024

 2023

 Net gains (losses) recognized during the period on marketable equity securities

 $

 $

 ( 119

)

 Less: Net gains (losses) recognized during the period on marketable equity securities sold during the period

 —

 —

 Unrealized gains (losses) recognized during the period on marketable equity securities still held at the reporting date

 $

 $

 ( 119

)

 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES

 Loans that management has
the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal
balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment to yield (interest
income) over the life of the loan. Deferred fees and costs amounted to $ 790,000 at December 31, 2024 and $ 779,000 at December 31, 2023
and are netted against the outstanding unpaid principal balances.

 The segments of the Corporation's
loan portfolio are disaggregated into classes that allow management to monitor risk and performance. The loan classes used are consistent
with the internal reports evaluated by the Corporation's management and Board of Directors to monitor risk and performance within
the various segments of its loan portfolio.

 Major classifications of loans
at December 31, 2024 and December 31, 2023 consisted of:

 $

 $

 Commercial real estate:

 Commercial mortgages

 325,882

 326,152

 Student housing

 45,808

 33,650

 Gross loans

 $

 $

 Allowance for Credit Losses and Recorded Investment in Financial
Receivables

 The allowance for credit losses
is measured on a collective (pool) basis when similar risk characteristics exist. The Corporation has aligned our segmentation to internal
loan reports. The Corporation has identified the following portfolio segments:

the activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2024 and 2023:

 For the Year Ended December 31, 2024

 Commercial

 Residential

 Commercial and

 Real

 Real

 Consumer

 Industrial

 and Other

 Total

 $

 $

 6,847

 $

 1,474

 $

 $

 9,302

 Provision charged to operations

 Loans charged off

 ( 82

)

 ( 64

)

 ( 68

)

 ( 92

)

 ( 306

)

 Recoveries

 —

 Balance, December 31, 2024

 $

 $

 6,869

 $

 1,850

 $

 $

 9,858

 For the Year Ended December 31, 2023

 Commercial

 Residential

 Commercial and

 Real

 Real

 Consumer

 Industrial

 and Other

 Unallocated

 Total

 Balance, December 31, 2022

 $

 1,041

 $

 2,897

 $

 3,077

 $

 $

 $

 7,279

 Impact of adopting ASC 326

 ( 959

)

 3,198

 ( 2,617

)

 ( 39

)

 ( 204

)

 ( 621

)

 Allowance for credit loss on PCD acquired loans

 —

 Provision for credit losses - acquisition day 1 non-PCD

 1,235

 1,003

 —

 2,932

 Provision (credit) charged to operations

 ( 517

)

 —

 ( 378

)

 Loans charged off

 —

 ( 70

)

 ( 79

)

 ( 47

)

 —

 ( 196

)

 Recoveries

 —

 —

 —

 $

 $

 6,847

 $

 1,474

 $

 $

 —

 $

 9,302

 The cumulative loss rate used
as the basis for the estimate of credit losses is comprised of the Corporation's historical loss experience. As of December 31,
2024, the Corporation expects that the markets in which it operates will experience no significant changes in economic conditions based
primarily on housing indexes, interest rate stabilization, and a steady unemployment rate. Management adjusts historical loss experience
as needed based upon economic expectations. No reversion adjustments were necessary, as the starting point for the Corporation's
estimate was a cumulative loss rate covering the expected contractual term of the loan portfolio.

 For the year ended December
31, 2024, the Corporation recorded a $ 847,000 provision for credit losses on loans compared to $ 2,554,000 for the year ended December
31, 2023. The provision for 2024 primarily reflects an increase in volume in the loan portfolio along with changes in qualitative factors
related to the nature of the loan portfolio, volume and severity of past due loans, loan grade migration, changes in lending staff and
changes in lending policies and procedures. The provision for 2023 was primarily as a result of a $ 2.9 million one-time provision related
to purchased non-PCD loans acquired as part of the MBF merger, as well as a net credit due to other factors.

 Historical credit loss experience
is the basis for the estimation of expected credit losses. The Corporation applies historical loss rates to pools of loans with similar
risk characteristics. After consideration of the historic loss calculation, management can apply qualitative adjustments to reflect the
current conditions and reasonable and supportive forecasts not already captured in the historical loss information at the balance sheet
date.

 In accordance with Accounting
Standards Codification ("ASC") 326, the Corporation will evaluate individual loans for expected credit losses when those loans
do not share similar risk characteristics with loans evaluated using a collective (pooled) basis. Loans will not be included in both collective
and individual analysis. The individual analysis will establish a specific reserve for loans in scope.

 Specific reserves are established
based on the following three acceptable methods for measuring the ACL:1) the present value of expected future cash flows discounted at
the loan's original interest rate; 2) the loan's observable market price; 3) the fair value of the collateral when the loan
is collateral dependent. The method is selected on a loan-by-loan basis with the evaluation of the need and amount of a specific allocation
of the allowance being made on a quarterly basis.

 The need for an updated appraisal
on collateral dependent loans is determined on a case-by-case basis. The useful life of an appraisal or evaluation will vary depending
upon the circumstances of the property and the economic conditions in the marketplace. A new appraisal is not required if there is an
existing appraisal which, along with other information, is sufficient to determine a reasonable value for the property and to support
an appropriate and adequate allowance for credit losses. At a minimum, annual documented reevaluation of the property is completed by
the Bank's Chief Credit Officer to support the value of the property.

 When receiving an appraisal
associated with an existing real estate collateral dependent transaction, the Bank's Chief Credit Officer must determine if there
have been material changes to the underlying assumptions in the appraisal which affect the original estimate of value. Some of the factors
that could cause material changes to reported values include:

 the passage of time;

 the volatility of the local market;

 the availability of financing;

 natural disasters;

 the inventory of competing properties;

 new improvements to, or lack of maintenance of,
the subject property or competing properties upon physical inspection by the Bank;

 changes in underlying economic and market assumptions,
such as material changes in current and projected vacancy, absorption rates, capitalization rates, lease terms, rental rates, sales prices,
concessions, construction overruns and delays, zoning changes, etc.; and/or

 environmental contamination.

 The value of the property
is adjusted to appropriately reflect the above listed factors and the value is discounted to reflect the value impact of a forced distressed
sale, any outstanding senior liens, any outstanding unpaid real estate taxes, transfer taxes and closing costs that would occur with sale
of the real estate. If the Chief Credit Officer determines that a reasonable value cannot be derived based on the available information,
a new appraisal is ordered. The determination of the need for a new appraisal rests with the Chief Credit Officer and not the originating
account officer.

 The following table summarizes
the loan portfolio and allowance for credit losses as of December 31, 2024 and December 31, 2023:

 Commercial

 Residential

 Commercial and

 Real

 Real

 Consumer

 Industrial

 and Other

 Total

 Loans:

 Individually evaluated

 $

 —

 $

 12,712

 $

 2,046

 $

 —

 $

 14,758

 Collectively evaluated

 358,978

 636,906

 1,111,179

 Total loans

 $

 $

 371,690

 $

 $

 $

 Allowance for credit losses:

 Individually evaluated

 $

 —

 $

 4,011

 $

 $

 —

 $

 4,144

 Collectively evaluated

 2,858

 1,717

 5,714

 Total allowance for credit losses

 $

 $

 6,869

 $

 1,850

 $

 $

 9,858

 Commercial

 Residential

 Commercial and

 Real

 Real

 Consumer

 Industrial

 and Other

 Total

 Loans:

 Individually evaluated

 $

 —

 $

 12,279

 $

 —

 $

 —

 $

 12,279

 Collectively evaluated

 347,523

 1,056,150

 Total loans

 $

 $

 359,802

 $

 $

 $

 Allowance for credit losses:

 Individually evaluated

 $

 —

 $

 4,143

 $

 —

 $

 —

 $

 4,143

 Collectively evaluated

 2,704

 1,474

 5,159

 Total allowance for credit losses

 $

 $

 6,847

 $

 1,474

 $

 $

 9,302

 As of December 31, 2024 and
2023, the amortized cost basis of individually evaluated loans that were deemed to be collateral dependent was $ 2,925,000 and $ 0, respectively.
As of December 31, 2024, the amortized cost basis of collateral dependent loans classified as Residential Real Estate were $ 2,046,000
and were collateralized by residential real estate properties. The amortized cost basis of collateral dependent loans classified as Commercial
Real Estate were $ 879,000 and were collateralized by commercial real estate properties.

 Age Analysis of Past-Due Loans Receivable

 The performance and credit
quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded
payment is past due. The following table presents the classes of the loan portfolio summarized by the past-due status as of December 31,
2024 and 2023:

 30-59

 60-89

 Days

 Days

 90+ Days

 Total

 Total

 Current

 Loans

 $

 92,690

 $

 $

 $

 $

 $

 367,171

 2,139

 1,115

 1,265

 4,519

 371,690

 625,201

 7,163

 2,326

 4,262

 13,751

 21,532

 $

 1,106,594

 $

 9,468

 $

 3,680

 $

 6,195

 $

 19,343

 $

 30-59

 60-89

 Days

 Days

 90+ Days

 Total

 Total

 Current

 Loans

 $

 93,879

 $

 $

 $

 $

 $

 355,786

 2,316

 4,016

 359,802

 578,802

 7,226

 1,134

 2,122

 10,482

 24,955

 $

 1,053,422

 $

 9,757

 $

 2,345

 $

 2,905

 $

 15,007

 $

 Non-performing Loans

 The following tables present
the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest as of December 31, 2024
and 2023:

 Nonaccrual with no ACL

 Nonaccrual with ACL

 Total Nonaccrual

 Loans Past Due over 90 Days Still Accruing

 Total Nonperforming

 $

 —

 $

 $

 $

 —

 $

 2,069

 2,208

 —

 2,208

 1,458

 5,478

 6,936

 —

 6,936

 —

 —

 Total

 $

 1,597

 $

 8,450

 $

 $

 —

 $

 Nonaccrual with no ACL

 Nonaccrual with ACL

 Total Nonaccrual

 Loans Past Due over 90 Days Still Accruing

 Total Nonperforming

 $

 $

 $

 $

 —

 $

 —

 —

 3,151

 3,151

 3,445

 —

 Total

 $

 $

 3,869

 $

 4,012

 $

 $

 4,306

 Credit Quality Indicators

 The Bank categorizes 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, among other factors. The Bank analyzes
loans individually to classify the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial real estate,
commercial construction, and commercial and industrial loans. This analysis is performed on a quarterly basis. The Bank uses the following
definitions for risk ratings:

 Pass. Loans which are
protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

 Special Mention. Loans
classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential
weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future
date.

 Substandard. Loans
classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral
pledged, if any. Loans so classified have well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized
by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

 Doubtful. Loans classified
as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make
collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

 Based on the most recent analysis
performed, the following table presents the recorded investment in non-homogenous loans by internal risk rating system as of December
31, 2024 and 2023:

 Revolving

 Loans

 Term Loans Amortized Cost Basis by Origination Period

 2024

 2023

 2022

 2021

 2020

 Prior

 Cost Basis

 Total

 Pass

 $

 13,008

 $

 9,194

 $

 13,658

 $

 13,394

 $

 7,057

 $

 17,194

 $

 14,898

 $

 88,402

 —

 2,902

 4,111

 —

 —

 —

 —

 —

 —

 —

 —

 Total

 $

 13,111

 $

 9,465

 $

 13,861

 $

 13,564

 $

 7,496

 $

 17,816

 $

 18,133

 $

 $

 —

 $

 —

 $

 $

 $

 $

 —

 $

 —

 $

 Pass

 $

 44,854

 $

 53,940

 $

 59,313

 $

 59,533

 $

 20,624

 $

 102,581

 $

 15,025

 $

 355,870

 —

 —

 2,757

 —

 3,276

 6,504

 —

 1,250

 2,396

 4,064

 9,316

 —

 —

 —

 —

 —

 —

 —

 —

 Total

 $

 44,854

 $

 54,329

 $

 63,320

 $

 61,930

 $

 21,417

 $

 109,921

 $

 15,920

 $

 371,690

 $

 —

 $

 —

 $

 $

 —

 $

 —

 $

 —

 $

 —

 $

 Total

 Pass

 $

 57,862

 $

 63,134

 $

 72,971

 $

 72,927

 $

 27,680

 $

 119,775

 $

 29,923

 $

 444,272

 —

 2,789

 3,393

 7,436

 1,421

 2,560

 4,569

 3,598

 13,427

 —

 —

 —

 —

 —

 —

 —

 —

 Total

 $

 57,965

 $

 63,794

 $

 77,181

 $

 75,493

 $

 28,913

 $

 127,737

 $

 34,053

 $

 465,135

 $

 —

 $

 —

 $

 $

 $

 $

 —

 $

 —

 $

 Revolving

 Loans

 Term Loans Amortized Cost Basis by Origination Period

 2023

 2022

 2021

 2020

 2019

 Prior

 Cost Basis

 Total

 Pass

 $

 12,342

 $

 16,357

 $

 15,969

 $

 9,681

 $

 2,149

 $

 18,068

 $

 14,463

 $

 89,029

 —

 1,103

 2,861

 4,146

 —

 —

 —

 —

 —

 —

 —

 —

 Total

 $

 12,633

 $

 16,664

 $

 16,149

 $

 10,119

 $

 2,334

 $

 18,692

 $

 17,687

 $

 $

 —

 $

 —

 $

 —

 $

 —

 $

 —

 $

 —

 $

 —

 $

 —

 Pass

 $

 61,858

 $

 65,974

 $

 66,974

 $

 23,184

 $

 20,199

 $

 100,528

 $

 11,116

 $

 349,833

 —

 —

 —

 —

 —

 1,648

 2,473

 3,471

 9,329

 —

 —

 —

 —

 —

 —

 —

 —

 Total

 $

 62,222

 $

 67,858

 $

 69,447

 $

 23,461

 $

 20,819

 $

 104,403

 $

 11,592

 $

 359,802

 $

 —

 $

 —

 $

 —

 $

 —

 $

 —

 $

 $

 —

 $

 Total

 Pass

 $

 74,200

 $

 82,331

 $

 82,943

 $

 32,865

 $

 22,348

 $

 118,596

 $

 25,579

 $

 438,862

 1,743

 1,873

 2,641

 4,095

 3,337

 13,475

 —

 —

 —

 —

 —

 —

 —

 —

 Total

 $

 74,855

 $

 84,522

 $

 85,596

 $

 33,580

 $

 23,153

 $

 123,095

 $

 29,279

 $

 454,080

 $

 —

 $

 —

 $

 —

 $

 —

 $

 —

 $

 $

 —

 $

 The Bank monitors the credit risk profile by payment
activity for residential real estate, consumer, and other loan classes. Loans past due 90 days or more and loans on nonaccrual status
are considered non-performing. Non-performing loans are reviewed quarterly. The following table presents the amortized cost in residential
real estate, and consumer and other loans based on payment activity as of December 31, 2024 and 2023:

 Revolving

Loans

 Term Loans Amortized Cost Basis by Origination Period

 2024

 2023

 2022

 2021

 2020

 Prior

 Cost Basis

 Total

 $

 87,826

 $

 81,836

 $

 103,749

 $

 77,766

 $

 55,360

 $

 153,775

 $

 71,705

 $

 632,017

 1,506

 2,219

 6,936

 Total

 $

 88,121

 $

 82,316

 $

 104,708

 $

 79,272

 $

 55,861

 $

 155,993

 $

 72,681

 $

 $

 —

 $

 —

 $

 $

 —

 $

 —

 $

 $

 —

 $

 Consumer and Other

 $

 2,893

 $

 3,558

 $

 8,322

 $

 1,263

 $

 $

 1,060

 $

 4,096

 $

 21,681

 —

 Total

 $

 2,914

 $

 3,584

 $

 8,385

 $

 1,270

 $

 $

 1,069

 $

 4,138

 $

 $

 $

 $

 $

 $

 $

 $

 —

 $

 Total

 $

 90,719

 $

 85,394

 $

 112,071

 $

 79,028

 $

 55,851

 $

 154,834

 $

 75,800

 $

 653,698

 1,022

 1,514

 2,228

 1,018

 7,105

 Total

 $

 91,035

 $

 85,899

 $

 113,093

 $

 80,542

 $

 56,352

 $

 157,063

 $

 76,818

 $

 660,802

 $

 $

 $

 $

 $

 $

 $

 —

 $

 Revolving

Loans

 Term Loans Amortized Cost Basis by Origination Period

 2023

 2022

 2021

 2020

 2019

 Prior

 Cost Basis

 Total

 $

 85,542

 $

 111,413

 $

 84,007

 $

 57,696

 $

 28,192

 $

 141,952

 $

 77,037

 $

 585,839

 1,644

 —

 3,445

 Total

 $

 85,817

 $

 111,505

 $

 84,543

 $

 58,151

 $

 28,635

 $

 143,596

 $

 77,037

 $

 $

 —

 $

 —

 $

 —

 $

 —

 $

 —

 $

 $

 —

 $

 Consumer and Other

 $

 5,618

 $

 10,145

 $

 2,330

 $

 $

 $

 1,193

 $

 4,380

 $

 25,050

 —

 —

 —

 Total

 $

 5,623

 $

 10,153

 $

 2,331

 $

 $

 $

 1,194

 $

 4,380

 $

 $

 $

 $

 $

 —

 $

 $

 $

 —

 $

 Total

 $

 91,160

 $

 121,558

 $

 86,337

 $

 58,686

 $

 28,586

 $

 143,145

 $

 81,417

 $

 610,889

 1,645

 —

 3,460

 Total

 $

 91,440

 $

 121,658

 $

 86,874

 $

 59,141

 $

 29,029

 $

 144,790

 $

 81,417

 $

 614,349

 $

 $

 $

 $

 —

 $

 $

 $

 —

 $

 Modifications to Borrowers Experiencing Financial Difficulty

 Occasionally, the Bank may
consider modifying loans to borrowers in financial distress by providing term extension, other-than-significant payment delay or interest
rate reduction. In some cases, the Bank provides multiple types of concessions on one loan. Typically, one type of concession, such as
an interest rate reduction, is granted initially. If the borrower continues to experience financial difficulty, another concession, such
as term extension, may be granted.

 For the years ended December
31, 2024 and 2023, the Bank did not grant any loan modifications to borrowers experiencing financial difficulty.

 The carrying amount of foreclosed
residential real estate properties held as a result of obtaining physical possession were $ 70,000 and $ 0 at December 31, 2024 and 2023,
respectively. The recorded investment of consumer mortgage loans secured by residential real properties for which formal foreclosure proceedings
were in process were $ 1,846,000 and $ 252,000 at December 31, 2024 and 2023, respectively.

 Concentrations of Credit Risk

 Most of the Corporation's
lending activity occurs within the Bank's primary market area which encompasses Clinton, Columbia, Lycoming, Montour and Eastern
Northumberland counties in Northcentral Pennsylvania. The majority of the Corporation's loan portfolio consists of commercial and
consumer real estate loans. As of December 31, 2024 and 2023, there were no concentrations of loans related to any single industry in
excess of 10% of total loans.

 6. PREMISES AND EQUIPMENT

 A summary of premises and equipment at December
31, 2024 and 2023 is as follows:

 2024

 2023

 Land

 $

 5,203

 $

 5,203

 Construction in process

 Premises

 31,047

 30,327

 Furniture and equipment

 14,793

 14,632

 Leasehold improvements

 Total

 51,358

 50,961

 Less accumulated depreciation and amortization

 24,874

 23,392

 Total

 $

 26,484

 $

 27,569

 Depreciation amounted to $ 1,515,000 and $ 790,000
in 2024 and 2023, respectively.

 7. DEPOSITS

 Major classifications of deposits at December 31,
2024 and 2023 consisted of:

 2024

 2023

 Demand deposits

 $

 $

 Interest-bearing demand deposits

 380,801

 251,953

 Savings

 194,958

 204,968

 Money market

 108,263

 103,602

 Time deposits

 348,707

 324,131

 Total deposits

 $

 1,292,429

 $

 1,150,669

 The following is a schedule reflecting scheduled
maturities of time deposits at December 31, 2024:

 2025

 $

 295,438

 2026

 30,105

 2027

 10,372

 2028

 5,684

 2029

 6,286

 Thereafter

 Total

 $

 348,707

 Time deposits of $250,000
or more totaled approximately $ 100,287,000 and $ 94,445,000 at December 31, 2024 and 2023, respectively.

 8. BORROWED FUNDS

 Short-Term Borrowings

 Short-term borrowings include
repurchase agreements with customers and advances from the FHLB. As of December 31, 2024, the Bank was approved by the FHLB for borrowings
of up to $ 568,756,000 of which $ 74,791,000 was outstanding in the form of advances and the FHLB had issued letters of credit on the Bank's
behalf totaling $ 26,000,000 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 $ 19,260,000 available from correspondent
banks other than the FHLB. The outstanding balances and related information for short-term borrowings are summarized as follows:

 Ending

 Maximum

Month End

Rate During

Year

 Weighted

Average Rate

At Period End

 Securities sold under agreements to repurchase

 $

 49,806

 $

 102,589

 $

 185,680

 4.66

 %

 3.76

 %

 Other short-term borrowings

 18,582

 17,319

 34,000

 5.54

 %

 4.71

 %

 Total

 $

 $

 119,908

 $

 219,680

 4.79

 %

 4.02

 %

 Ending

 Maximum

Month End

Rate During

Year

 Weighted

Average Rate

At Period End

 Securities sold under agreements to repurchase

 $

 189,532

 $

 182,708

 $

 200,311

 4.54

 %

 4.85

 %

 Other short-term borrowings

 63,000

 15,119

 63,000

 5.50

 %

 5.68

 %

 Total

 $

 $

 197,827

 $

 263,311

 4.61

 %

 5.10

 %

 The Corporation utilizes securities
sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities
sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral
levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities.
Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents.

 The remaining contractual
maturity of repurchase agreements in the Consolidated Balance Sheets as of December 31, 2024 and 2023 is presented in the following tables:

 Remaining Contractual Maturity of the Agreements

 Overnight and

 Greater than

 Continuous

 Up to 30 Days

 30-90 Days

 90 Days

 Total

 Securities sold under agreements to repurchase:

 Obligation of U.S. Government Corporations and Agencies:

 $

 37,385

 $

 —

 $

 —

 $

 —

 $

 37,385

 —

 —

 —

 Other

 4,511

 —

 4,088

 9,199

 Obligation of state and political subdivisions

 2,594

 —

 —

 —

 2,594

 Total borrowings

 $

 45,118

 $

 $

 —

 $

 4,088

 $

 49,806

 Gross amount of recognized liabilities for repurchase agreements

 $

 49,806

 Amounts related to agreements not included in offsetting disclosure above

 $

 —

 Remaining Contractual Maturity of the Agreements

 Overnight and

 Greater than

 Continuous

 Up to 30 Days

 30-90 Days

 90 Days

 Total

 Securities sold under agreements to repurchase:

 Obligation of U.S. Government Corporations and Agencies:

 $

 93,137

 $

 —

 $

 —

 $

 —

 $

 93,137

 Other

 92,151

 1,663

 1,094

 1,487

 96,395

 Total borrowings

 $

 185,288

 $

 1,663

 $

 1,094

 $

 1,487

 $

 189,532

 Gross amount of recognized liabilities for repurchase agreements

 $

 189,532

 Amounts related to agreements not included in offsetting disclosure above

 $

 —

 The fair value of securities
pledged to secure repurchase agreements may decline. The Corporation manages this risk by having a policy to pledge securities valued
at 110 % of the gross outstanding balance of repurchase agreements. Securities sold under agreements to repurchase are secured by securities
with a carrying amount of $ 60,099,000 and $ 219,227,000 at December 31, 2024 and 2023, respectively.

 Long-Term Borrowings

 Long-term FHLB borrowings consisted of the following
at December 31, 2024 and 2023:

 Loans maturing in 2024 with a weighted-average rate of 4.70 %

 $

 —

 $

 15,208

 Loans maturing in 2025 with a weighted-average rate of 4.79 %

 15,208

 15,208

 Loans maturing in 2026 with a weighted-average rate of 4.05 %

 15,359

 15,359

 Loans maturing in 2027 with a weighted-average rate of 3.93 %

 15,417

 15,417

 Loans maturing in 2028 with a weighted-average rate of 3.85 %

 10,225

 10,229

 Total long-term FHLB borrowings; weighted average rate of 4.18 %

 56,209

 71,421

 Unamortized fair value adjustments

 ( 673

)

 ( 973

)

 Total long-term borrowings

 $

 55,536

 $

 70,448

 9. STOCKHOLDERS' EQUITY AND STOCK PURCHASE PLANS

 The Amended Articles of Incorporation
contain a provision that permits the Corporation to issue warrants for the purchase of shares of common stock, par value $ 1.25 per share
(the "Common Stock"), at below market prices in the event any person or entity acquires 25 % or more of the Common Stock.

 The Corporation offers employees
a stock purchase plan. The maximum number of shares of the Common Stock to be issued under this plan is 100,000. In addition, the Corporation
may choose to purchase shares on the open market to facilitate this plan. The plan allows participating employees to elect quarterly
deductions of at least 1 % of base pay, but not more than 10 % of base pay, to cover purchases of shares under this plan. A participating
employee shall be deemed to have been granted an opportunity to purchase a number of shares of the Common Stock equal to the quarterly
aggregate amount of payroll deductions elected by the employee divided by the lower of 90 % of the fair market value of Common Stock on
the average of the last ten days prior to the offering date or 90 % of the fair market value of common Stock on the average of the last
ten days prior to purchase date as defined by the plan. Stock issued to participating employees under the plan for the most recent two
year period was:

 Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity

 Average Per Share

 Employees'

 Market Value

 Year Issued

 Number of Shares

 Purchase Price

 of Shares

 2024

 6,462

 $

 29.23

 $

 32.48

 2023

 2,181

 $

 35.58

 $

 39.54

 10. INCOME TAXES

 The provision for income tax
expense consisted of the following components for the years ended December 31, 2024 and 2023:

 For the Years Ended December 31,

 2024

 2023

 Currently payable

 $

 1,001

 $

 Deferred tax (benefit)

 2,317

 ( 200)

 Total income tax provision

 $

 3,318

 $

 A reconciliation between the
expected statutory income tax rate and the effective income tax rate on income before income taxes is as follows for the years ended December
31, 2024 and 2023:

 2024

 2023

 %

 %

 Provision at statutory rate

 $

 4,692

 21.0

 %

 $

 21.0

 %

 Tax-exempt income

 ( 871

)

 - 3.9

 %

 ( 376

)

 - 10.0

 %

 Bank-owned life insurance income-net

 ( 209

)

 - 0.9

 %

 ( 106

)

 - 2.8

 %

 Tax credit from limited partnerships less amortization, net

 ( 94

)

 - 0.4

 %

 ( 138

)

 - 3.7

 %

 Energy tax credit

 ( 206

)

 - 0.9

 %

 -

 0.0

 %

 Non-deductible expenses

 0.7

 %

 7.0

 %

 Other, net

 ( 152

)

 - 0.7

 %

 ( 65

)

 - 1.7

 %

 Effective income tax and rate

 $

 3,318

 14.9

 %

 $

 9.7

 %

 The net deferred tax asset
recorded by the Corporation consisted of the following tax effects of temporary timing differences at December 31, 2024 and 2023:

 2024

 2023

 Deferred tax assets:

 Allowance for credit losses

 $

 2,071

 $

 1,953

 Purchase accounting adjustments on loans

 2,922

 5,116

 Purchase accounting adjustments on securities

 3,121

 4,228

 Purchase accounting adjustments on premises and equipment

 Allowance for off balance sheet losses

 Deferred compensation and director's fees

 1,964

 1,763

 Investment in limited partnerships

 Unrealized losses on available-for-sale debt securities

 3,693

 3,997

 Operating lease liability

 Other

 Total

 14,797

 18,159

 Deferred tax liabilities:

 Loan fees and costs

 ( 166

)

 ( 164

)

 Bond accretion

 ( 217

)

 ( 158

)

 Premises and equipment

 ( 755

)

 ( 788

)

 Core deposit intangibles

 ( 2,041

)

 ( 2,498

)

 Purchase accounting adjustments on deposits and borrowings

 ( 269

)

 ( 566

)

 Mortgage servicing rights

 ( 262

)

 ( 260

)

 Right of use assets

 ( 92

)

 ( 100

)

 Other

 ( 983

)

 ( 991

)

 Total

 ( 4,785

)

 ( 5,525

)

 Deferred tax asset, net

 $

 10,012

 $

 12,634

 It is anticipated that all
tax assets shown above will be realized and accordingly no valuation allowance was provided. The Corporation prescribes a recognition
threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be
taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not
that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant
information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that
is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not
recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously
recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent
financial reporting period in which that threshold is no longer met. There is currently no liability for uncertain tax positions and no
known unrecognized tax benefits. With limited exceptions, the Corporation is no longer subject to examination by Federal or State taxing
authorities for years prior to 2021.

 11. RELATED PARTY TRANSACTIONS

 Certain directors and executive
officers of the Corporation and the Bank, as well as their associates, family relationships and companies in which they are principal
owners (i.e., at least 10% ownership), were indebted to the Bank at December 31, 2024 and 2023. These loans were made on substantially
the same terms and conditions, including interest rates and collateral, as those prevailing at the time for comparable transactions with
unrelated parties. These loans did not present more than the normal risk of collectability nor present other unfavorable features. A summary
of the activity on these related party loans consisted of the following:

 Schedule of Related Party Transactions

 Beginning

 Other

 Ending

 Additions

 Payments

 Changes

 2024

 $
 18,049

 $
 2,296

 $
 ( 2,740
)

 $
 ( 2,693
)

 $
 14,912

 2023

 14,938

 6,799

 ( 3,688
)

 —

 18,049

 Loans represent funds drawn
and outstanding at the date of the accompanying consolidated financial statements. In the table above, other changes represent transfers
out of the related party category. Commitments by the Bank to related parties on loan commitments and standby letters of credit for 2024
and 2023 presented an off-balance sheet risk to the extent of undisbursed funds in the amount of $ 4,268,000 and $ 5,936,000 respectively.

 Deposits from related parties
held by the Bank amounted to $17,629,000 and $21,857,000 at December 31, 2024 and 2023, respectively.

 12. EMPLOYEE BENEFIT AND DEFERRED COMPENSATION
PLANS

 EMPLOYEE BENEFIT PLANS

 The Bank maintains a 401K
salary deferral profit sharing plan for the benefit of its employees. Under the salary deferral component, employees may elect to contribute
a percentage of compensation up to the maximum amount allowable not to exceed the limits of IRS Code Section 401(K). The Corporation matches
 100 % of employee contributions up to 6 % of compensation for the year ended December 31, 2024, and up to 4 % of compensation for the year
ended December 31, 2023. Under the profit sharing component, contributions are made at the discretion of the Bank's Board of Directors.
Matching contributions amounted to $ 682,000, and $ 295,000 for the years ended December 31, 2024 and 2023. There were no discretionary
contributions for the years ended December 31, 2024 and 2023.

 DEFERRED COMPENSATION PLANS

 Directors

 During 2003, the directors
were given the option of receiving or deferring their directors' fees under a non-qualified deferred compensation plan which allows
the director to defer such fees until the year following the expiration of the directors' term. Payments are then made over specified
terms under these arrangements up to a ten-year period. Interest is to accrue on these deferred fees at a 5-year certificate of deposit
rate, which was 0.90 % in 2024 and 2023. The certificate of deposit rate will reset in January 2028. Three directors have elected to participate
in this program and the total accrued liability as of December 31, 2024 and 2023 was $ 323,000, and $ 333,000, respectively.

 Total directors' fees,
including amounts currently paid for the years ended December 31, 2024 and 2023 were $ 480,000 and $ 326,000, respectively.

 During 2008, the directors
were given the option of receiving or deferring their entire or partial directors' fees under a non-qualified deferred compensation
plan with the same features as the above plan. The interest rate that was paid was 1.54 % in 2024 and 2.38 % in 2023. The certificate of
deposit rate will reset in January 2029. The total accrued liability as of December 31, 2024 and 2023 was $ 776,000 and $ 770,000, respectively.

 Officers

 The Bank sponsors non-qualified,
non-funded supplemental retirement plans, for its executives, for which the Corporation has purchased cost recovery life insurance on
the lives of the participants. The participant is the insured person under the policy and the Bank is the owner and beneficiary. The amount
of the coverage is designed to provide sufficient revenues to cover all costs of the plans if assumptions made as to mortality experience,
policy earnings, and other factors are realized. The Corporation incurred expenses related to the supplemental retirement plans of $ 1,078,000
and $ 445,000 for the years ended December 31, 2024 and 2023, respectively. At December 31, 2024 and 2023, the Corporation had an accrued
liability related to the supplemental retirement plans of $ 6,330,000 and $ 5,579,000, respectively.

 SPLIT-DOLLAR LIFE INSURANCE

 The Bank provides endorsed
split-dollar life insurance benefits to certain executives and directors. These benefits are accounted for under ASC Topic 715 "Compensation
– Retirement Benefits". This pronouncement requires recognition of a liability for postretirement benefits provided through
an endorsed split-dollar life insurance arrangement. The Bank incurred expenses related to these endorsed split-dollar life insurance
arrangements of $ 215,000 and $ 43,000 for the years ended December 31, 2024 and 2023, respectively. At December 31, 2024 and 2023, the
Corporation had an accrued liability related to these arrangements of $ 1,921,000 and $ 1,710,000, respectively.

 13. OPERATING LEASE COMMITMENTS AND CONTINGENCIES

 The Corporation leases two
office locations under operating leases. The Corporation has elected to account for the variable nonlease components, such as common area
maintenance charges, utilities, real estate taxes, and insurance, separately from the lease component. Such variable nonlease components
are reported in net occupancy expense on the Consolidated Statements of Income when paid. These variable nonlease components were excluded
from the calculation of the present value of the remaining lease payments, therefore, they are not included in the right-of-use assets
and lease liabilities reported on the Consolidated Balance Sheets.

 As of December 31, 2024 and
2023, the Corporation had recorded right-of-use assets in other assets for operating leases of $ 437,000 and $ 475,000, respectively, and
related lease liabilities totaling $ 450,000 and $ 485,000, respectively, in other liabilities in its Consolidated Balance Sheets.

 Certain of the Corporation's
leases contain options to renew the lease after the initial term. Management considers the Corporation's historical pattern of
exercising renewal options on leases and the positive performance of the leased locations, when determining whether it is reasonably
certain that the leases will be renewed. If management concludes that there is reasonable certainty about the renewal option, it is included
in the calculation of the remaining term of each applicable lease. The discount rate utilized in calculating the present value of the
remaining lease payments for each lease was the Federal Home Loan Bank of Pittsburgh advance rate corresponding to the remaining maturity
of the lease as of January 1, 2019. The following table presents the weighted-average remaining lease term and discount rate for the
leases outstanding at December 31, 2024 and 2023.

 2024

 2023

 Weighted-average remaining term (years)

 11.6

 12.5

 Weighted-average discount rate

 3.52 %

 3.53 %

the undiscounted cash flows due related to operating leases as of December 31, 2024, along with a reconciliation to the discounted amount
recorded on the Consolidated Balance Sheets:

 Undiscounted cash flows due (In thousands):

 2025

 $

 2026

 2027

 2028

 2029

 Thereafter

 Total undiscounted cash flows

 Discount on cash flows

 ( 98

)

 Total lease liabilities

 $

 Under Topic 842, the lessee
can elect to not record on the Consolidated Balance Sheets a lease whose term is twelve months or less and does not include a purchase
option that the lessee is reasonably certain to exercise. As of December 31, 2024, the Corporation had no leases that had a term of twelve
months or less.

 Rental expense under operating
leases totaled approximately $ 60,000 in 2024 and $ 45,000 in 2023.

 In the normal course of business,
the Corporation is subject to pending and threatened litigation in which claims for monetary damages are asserted. In management's
opinion, the Corporation's financial position and results of operations would not be materially affected by the outcome of these
legal proceedings.

 14. REGULATORY MATTERS

 In August 2018, the Federal
Reserve Board issued an interim final rule that expanded applicability of the Board's small bank holding company policy statement.
The interim final rule raised the policy statement's asset threshold from $1 billion to $3 billion in total consolidated assets
for a bank holding company or savings and loan holding company that: (1) is not engaged in significant nonbanking activities; (2) does
not conduct significant off-balance sheet activities; and (3) does not have a material amount of debt or equity securities, other than
trust-preferred securities, outstanding. The interim final rule provides that, if warranted for supervisory purposes, the Federal Reserve
may exclude a company from the threshold increase. Management believes the Corporation meets the conditions of the Federal Reserve's
small bank holding company policy statement and is therefore excluded from consolidated capital requirements at December 31, 2024.

 The Bank is subject to regulatory
capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve
quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital
amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet capital requirements can initiate
regulatory action. The net unrealized gain or loss on available-for-sale debt securities is not included in computing regulatory capital.
Management believes as of December 31, 2024, the Bank meets all capital adequacy requirements to which it is subject.

 Prompt corrective action regulations
provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically
undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval
is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and
capital restoration plans are required. At December 31, 2024 and 2023, the most recent regulatory notifications categorized the Bank as
well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification
that management believes have changed the institution's category.

 Current quantitative measures
established by regulation to ensure capital adequacy require Journey Bank to maintain minimum amounts and ratios (set forth in the table
below) of Total capital, Tier I capital, and Tier I common equity (as defined in the regulations) to risk-weighted assets (as defined),
and of Tier I capital (as defined) to average assets (as defined). The following tables present summary information regarding the Bank's
risk-based capital and related ratios at December 31, 2024 and 2023:

 Journey Bank

 Minimum Required For Capital Adequacy Purposes

 Minimum Required For Capital Adequacy Purposes with Conservation Buffer

 Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations

 (Dollars in Thousands)

 Ratio

 Ratio

 Ratio

 Ratio

 Total capital (to risk-weighted assets)

 $

 152,703

 16.03 %

 8.00 %

 10.50 %

 10.00 %

 Tier I capital (to risk-weighted assets)

 15.06 %

 6.00 %

 8.50 %

 8.00 %

 Tier I common equity (to risk-weighted assets)

 15.06 %

 4.50 %

 7.00 %

 6.50 %

 Tier I capital (to average assets)

 9.10 %

 4.00 %

 4.00 %

 5.00 %

 Total risk-weighted assets

 952,452

 Total average assets

 1,576,746

 Journey Bank

 Minimum Required For Capital Adequacy Purposes

 Minimum Required For Capital Adequacy Purposes with Conservation Buffer

 Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations

 (Dollars in Thousands)

 Ratio

 Ratio

 Ratio

 Ratio

 Total capital (to risk-weighted assets)

 $

 138,382

 14.49 %

 8.00 %

 10.50 %

 10.00 %

 Tier I capital (to risk-weighted assets)

 13.52 %

 6.00 %

 8.50 %

 8.00 %

 Tier I common equity (to risk-weighted assets)

 13.52 %

 4.50 %

 7.00 %

 6.50 %

 Tier I capital (to average assets)

 8.03 %

 4.00 %

 4.00 %

 5.00 %

 Total risk-weighted assets

 954,878

 Total average assets

 1,607,661

 15. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK

 The Corporation is a party
to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These
financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Those instruments
involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance
Sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Corporation has in particular classes
of financial instruments. The Corporation does not engage in trading activities with respect to any of its financial instruments with
off-balance sheet risk.

 The Corporation may require
collateral or other security to support financial instruments with off-balance sheet credit risk. The contract or notional amounts at
December 31, 2024 and 2023 were as follows:

 2024

 2023

 Financial instruments whose contract amounts represents credit risk:

 Commitments to extend credit

 $

 169,217

 $

 166,850

 Standby letters of credit

 4,828

 6,621

 Commitments to extend credit
are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally
have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments are expected
to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation
evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the
Corporation upon extension of credit, is based on management's credit evaluation of the counter-party. Collateral held varies but
may include accounts receivable, inventory, property, plant, equipment and income-producing commercial properties.

 Standby letters of credit
and commercial letters of credit are conditional commitments issued by the Corporation to guarantee payment to a third party when a customer
either fails to repay an obligation or fails to perform some non-financial obligation. The credit risk involved in issuing letters of
credit is essentially the same as that involved in extending loan facilities to customers. The Corporation holds collateral supporting
those commitments for which collateral is deemed necessary. The extent of collateral held for those commitments at December 31, 2024 varied
from 0 % to 100 %. The average amount collateralized was 86.2 %.

 The Corporation's exposure
to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters
of credit is represented by the contractual notional amount of those instruments. The Corporation uses the same credit policies in making
commitments and conditional obligations, as it does for on-balance sheet instruments.

 The Corporation granted commercial,
consumer and residential loans to customers primarily within Pennsylvania. Of the total loan portfolio, 89.9 % was for real estate loans,
principally residential. It was the opinion of management that this high concentration did not pose an adverse credit risk. Further, it
is management's opinion that the remainder of the loan portfolio was balanced and diversified to the extent necessary to avoid any
significant concentration of credit.

 As
of December 31, 2024, the total reserve for unfunded commitments was $ 16,000 as compared to $ 27,000 at December 31, 2023, and
is accounted for in other liabilities in the Consolidated Balance Sheets. See Note 1 for more information on the accounting policy for
the allowance for unfunded commitments.

 16. PARENT COMPANY ONLY FINANCIAL INFORMATION

 Condensed financial information for Muncy Columbia
Financial Corporation (Parent Company only) was as follows:

 BALANCE SHEETS

 2024

 2023

 Assets

 Cash

 $

 $

 1,037

 Investment in subsidiary

 162,334

 148,349

 Available-for-sale debt securities

 1,426

 2,767

 Marketable equity securities

 1,355

 1,295

 Other assets

 Total Assets

 $

 166,416

 $

 153,845

 Liabilities and Stockholders' Equity

 Accrued expenses and other liabilities

 $

 $

 Total Liabilities

 Stockholders' Equity

 Common stock

 4,802

 4,794

 Additional paid-in capital

 83,543

 83,343

 Retained earnings

 103,268

 90,514

 Accumulated other comprehensive loss

 ( 13,896

)

 ( 15,036

)

 Treasury stock

 ( 11,307

)

)

 Total Stockholders' Equity

 166,410

 153,825

 Total Liabilities and Stockholders' Equity

 $

 166,416

 $

 153,845

 Condensed Income Statement

 STATEMENTS OF INCOME

 Years Ended December 31,

 2024

 2023

 Income

 Dividends from subsidiary bank

 $

 6,269

 $

 3,557

 Interest & dividends - other

 Gains (losses) on marketable equity securities

 ( 119

)

 Realized losses on available-for-sale debt securities, net

 ( 77

)

 —

 Total Income

 6,355

 3,521

 Operating expenses

 Income Before Taxes and Equity in Undistributed

 5,985

 3,300

 Applicable income tax

 ( 68

)

 ( 48

)

 Income Before Equity in Undistributed Net Income of Subsidiary

 6,053

 3,348

 Equity in undistributed income of subsidiary

 12,970

 Net Income

 $

 $

 3,387

 Condensed Cash Flow Statement

 STATEMENTS OF CASH FLOWS

 Years Ended December 31,

 2024

 2023

 Operating Activities:

 Net income

 $

 $

 3,387

 Adjustments to reconcile net income to net cash provided by operating activities:

 (Gains) losses on marketable equity securities

 ( 60

)

 Realized losses on available-for-sale debt securities

 —

 Equity in undistributed net income of subsidiary

 ( 12,970

)

 ( 39

)

 Deferred income taxes

 ( 34

)

 Increase in other assets

 ( 97

)

 ( 13

)

 Other, net

 Net Cash Provided By Operating Activities

 5,991

 3,429

 Investing Activities:

 Net cash and cash equivalents provided by business combination

 —

 Proceeds from sales of available-for-sale debt securities

 1,424

 —

 Net Cash Provided By Investing Activities

 1,424

 Financing Activities:

 Acquisition of treasury stock

 ( 1,517

)

 —

 Proceeds from issuance of common stock

 Cash dividends

 ( 6,269

)

 ( 3,557

)

 Net Cash Used In Financing Activities

 ( 7,599

)

 ( 3,480

)

 (Decrease) Increase in Cash and Cash Equivalents

 ( 184

)

 Cash and Cash Equivalents at Beginning of Year

 1,037

 Cash and Cash Equivalents at End of Year

 $

 $

 1,037

 17. FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS

 The Corporation establishes
a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair
value. The standard describes three levels of inputs that may be used to measure fair values:

 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 include items
for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments of
which can be directly observed.

 Level III:
 Assets and liabilities that have little to no pricing observability
as of the reported date. These items do not have two-way markets and are measured using management's best estimate of fair value,
where the inputs into the determination of fair value require significant management judgement or estimation.

 This hierarchy requires the
use of observable market data available.

the assets reported on the Consolidated Balance Sheets at their fair value on a recurring basis as of December 31, 2024 and December
31, 2023, 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.

 Total

 Obligation of US Government Corporations and Agencies

 $
 —

 $

 $
 —

 $

 —

 7,046

 —

 7,046

 Other

 —

 —

 —

 82,762

 —

 82,762

 —

 —

 $
 —

 $

 $
 —

 $

 Marketable equity securities

 $
 1,355

 $
 —

 $
 —

 $
 1,355

 Real estate loans held for sale

 $
 —

 $
 1,691

 $
 —

 $
 1,691

 Total

 Obligation of US Government Corporations and Agencies

 $
 —

 $
 131,340

 $
 —

 $
 131,340

 —

 9,018

 —

 9,018

 Other

 —

 —

 —

 84,956

 —

 84,956

 —

 —

 $
 —

 $

 $
 —

 $

 Marketable equity securities

 $
 1,295

 $
 —

 $
 —

 $
 1,295

 Real estate loans held for sale

 $
 —

 $

 $
 —

 $

 The fair values of equity
securities classified as Level I are derived from quoted market prices in active markets; these assets consist entirely of stocks held
in other banks. The fair values of all debt securities classified as Level II are obtained from nationally-recognized third-party pricing
agencies. The fair values are derived primarily from cash flow models, which include assumptions for interest rates, credit losses, and
prepayment speeds. The significant inputs utilized in the cash flow models are based on market data obtained from sources independent
of the Corporation (observable inputs) and are therefore classified as Level II within the fair value hierarchy. The fair values of real
estate loans held for sale classified as Level II are derived from observable pricing inputs for similar assets in active markets.

the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of December 31, 2024 and 2023, 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.

 Total

 Assets Measured on a Non-recurring Basis:

 Loans individually evaluated for credit loss

 $
 —

 $
 —

 $
 7,398

 $
 7,398

 Foreclosed assets held for sale

 —

 —

 Total nonrecurring fair value measurements

 $
 —

 $
 —

 $
 7,468

 $
 7,468

 Total

 Assets Measured on a Non-recurring Basis:

 Loans individually evaluated for credit loss

 $
 —

 $
 —

 $
 8,136

 $
 8,136

 Loans are individually evaluated
for credit loss when they do not share similar risk characteristics as similar loans within their loan pool. Foreclosed assets held for
sale consist of real estate acquired by foreclosure. Loans individually evaluated for credit loss are reviewed and evaluated on at least
a quarterly basis for individual reserve requirements and adjusted accordingly. The following table provides a listing of significant
unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques on a nonrecurring basis
as of December 31, 2024 and 2023:

 Quantitative Information about Level III Fair Value Measurements

 Fair Value Estimate

 Valuation Technique

 Unobservable Input

 Range

 Weighted Average

 Loans individually evaluated for credit loss:

 $

 6,429

 Discounted cash flows

 Charge-off rates

 0 - 100 %

 21.25 %

 Sales comparison

 Discount to appraised value

 26 - 31 %

 26.44 %

 Sales comparison

 Discount to appraised value

 21 - 41 %

 29.40 %

 Total loans individually evaluated for credit loss

 $

 7,398

 Foreclosed assets held for sale:

 $

 Sales comparison

 Discount to appraised value

 30.69 %

 N/A

 Quantitative Information about Level III Fair Value Measurements

 Fair Value Estimate

 Valuation Technique

 Unobservable Input

 Range

 Weighted Average

 Loans individually evaluated for credit loss:

 $

 8,136

 Discounted cash flows

 Charge-off rates

 0 - 100 %

 18.22 %

 At December 31, 2024 and 2023,
the carrying values and fair values of financial instruments that are not recorded at fair value on the Consolidated Balance Sheets are
presented in the table below:

 Carrying

 Fair Value

 Financial assets:

 Cash and cash equivalents

 $

 $

 $

 $

 —

 $

 —

 —

 —

 —

 —

 —

 Restricted equity securities

 7,095

 7,095

 —

 7,095

 —

 Loans, net

 1,116,079

 1,042,090

 —

 —

 1,042,090

 4,850

 4,850

 —

 4,850

 Mortgage servicing rights

 1,756

 2,041

 —

 —

 2,041

 Financial liabilities:

 Interest-bearing deposits

 $

 1,032,729

 $

 1,031,198

 $

 —

 $

 684,022

 $

 347,176

 Noninterest-bearing deposits

 —

 —

 —

 —

 55,536

 55,032

 —

 —

 55,032

 Accrued interest payable

 1,857

 1,857

 —

 1,857

 —

 Carrying

 Fair Value

 Financial assets:

 Cash and cash equivalents

 $

 $

 $

 $

 —

 $

 —

 —

 —

 Restricted equity securities

 10,394

 10,394

 —

 10,394

 —

 Loans, net

 1,059,127

 972,834

 —

 —

 972,834

 5,362

 5,362

 —

 5,362

 Mortgage servicing rights

 2,035

 2,107

 —

 —

 2,107

 Financial liabilities:

 Interest-bearing deposits

 $

 884,654

 $

 883,434

 $

 —

 $

 560,521

 $

 322,913

 Noninterest-bearing deposits

 —

 —

 —

 —

 70,448

 68,887

 —

 —

 68,887

 Accrued interest payable

 2,358

 2,358

 —

 2,358

 —

 Fair value is defined as a
financial instrument which could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale.
If a quoted market price is available for a financial instrument, the estimated fair value would be calculated based upon the market price
per trading unit of the instrument, but focuses on the exit price of the asset and liability.

 If no readily available market
exists, the fair value estimates for financial instruments should be based upon management's judgment regarding current economic
conditions, interest rate risk, expected cash flows, future estimate losses, and other factors as determined through various option pricing
formulas. As many of these assumptions result from judgments made by management based upon estimates that are inherently uncertain, the
resulting estimated fair values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition,
changes in assumptions on which the estimate fair values are based may have a significant impact on the resulting estimated fair values.

 18. SUBSEQUENT EVENT

 On February 12, 2025, the
Corporation filed a Current Report on Form 8-K announcing the retirement of its Executive Chairman. The Corporation and the Bank entered
into an Employment Separation Agreement and Release dated February 11, 2025 (the "Separation Agreement") with Robert J. Glunk,
Executive Chairman of the Corporation and the Bank, and the Bank entered into a Fourth Amendment to Supplemental Executive Retirement
Plan (the "Amendment") with Mr. Glunk. The Separation Agreement and Amendment were approved by the boards of directors of
the Corporation and the Bank on February 11, 2025. The material terms of the Separation Agreement and Amendment are described below.

 Pursuant to the Separation
Agreement, Mr. Glunk's employment agreement will be terminated and his last day of active employment with the Company and the Bank
will be February 28, 2025 (the "Termination Date"). He will be paid his salary pursuant to the terms of his employment agreement
through the Termination Date. In consideration of the termination of his employment agreement, the Separation Agreement provides for Mr.
Glunk to be paid $ 650,000 in a single lump sum within fifteen (15) days after the Termination Date. Pursuant to the Amendment, the Company
has agreed that Mr. Glunk shall be entitled to the full normal retirement benefit of $ 150,000 under his Supplemental Executive Retirement
Plan ("SERP"), which previously was only available upon the attainment of a normal retirement age of 63. The $ 650,000 pretax
lump sum payment, as well as the one-time additional pretax expense associated with the accelerated vesting of the SERP of $ 578,000,
were recorded in the first quarter 2025. The Separation Agreement further provides that Mr. Glunk will continue to serve through his existing
term on the board of directors as its board Chairman and the Corporation has agreed to nominate Mr. Glunk for one additional term of service
as a director and to recommend his election to the Company's shareholders.

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

 To the Stockholders and the Board of Directors of

 Opinion on the Financial Statements

 We have audited the accompanying consolidated balance
sheets of Muncy Columbia Financial Corporation and subsidiary (the "Company") as of December 31, 2024 and 2023; the related
consolidated statements of income, comprehensive income, changes in stockholders' equity, and cash flows for the years then ended;
and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results
of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United
States of America.

 Basis for Opinion

 These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are
required to be independent, with respect to the Company, in accordance with U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards
of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform,
an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal
control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting. Accordingly, we express no such opinion.

 Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 Critical Audit Matters

 The critical audit matters communicated below are
matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the
Audit Committee and that: (1) relate to accounts or disclosures that are material to the financial statements; and (2) involve our especially
challenging, subjective, or complex judgments. The communication of critical audit matters does not alter, in any way, our opinion on
the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions
on the critical audit matters or on the accounts or disclosures to which they relate.

 Allowance for Credit Losses (ACL) – Loans

 The Company's loan portfolio totaled $1.1 billion
as of December 31, 2024, and the associated ACL was $9.9 million. As described in Notes 1 and 5 to the consolidated financial statements,
the determination of the ACL requires significant judgement about the expected future losses, which is based on baseline lifetime loss
rates, which are calculated using either a discounted cash flow model or a probability of default methodology, and then adjusted as applicable
for current qualitative conditions and the forecasted environment, based upon both internal and external factors that are different from
the conditions that existed during the historical loss calculation period.

 We identified the adjustments to the historical loss
factor components of the allowance for credit losses as a critical audit matter, as auditing the underlying adjustments required significant
auditor judgment, as amounts determined by management rely on analysis that is highly subjective and includes significant estimation uncertainty.

 The primary procedures we performed to address this
critical audit matter included:

 •
 Testing the design, implementation, and operating effectiveness of internal controls over the calculation
of the allowance for credit losses

 •
 Testing the completeness and accuracy of the significant data points that management uses in their modeling
of the ACL

 •
 Evaluating the directional consistency and reasonableness of management's conclusions regarding
assessment of qualitative factors based on the trends identified in the underlying supporting data

 •
 Testing the valuations for individually evaluated loans by evaluating assumptions on repayment and verifying
the mathematical accuracy of calculations

 We have served as the Company's auditor since
2014.

 /s/ S.R. Snodgrass, P.C.

 Cranberry Township, Pennsylvania

 March 7, 2025

 Item 9. Changes in and Disagreements With Accountants on Accounting
and Financial Disclosure

 None

 Item 9A. Controls and Procedures

 Our Chief Executive Officer
(CEO) and Chief Financial Officer (CFO) have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended), based on their evaluation of these controls and procedures as of the
end of the period covered by this Report, were effective as of such date at the reasonable assurance level as discussed below to ensure
that information required to be disclosed by us in the reports we file under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission
and that such information is accumulated and communicated to our management, including its principal executive officer and principal financial
officer, as appropriate to allow timely decisions regarding required disclosure.

 Our management, including
the CEO and CFO, does not expect that our disclosure controls and internal controls will prevent all errors and all fraud. A control system,
no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the system are
met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control
issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments
in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. In addition, controls can be circumvented
by the individual acts of some persons, by collusion of two or more people or by management override of the controls.

 The CEO and CFO have evaluated
the changes to our internal controls over financial reporting that occurred during our fiscal Quarter Ended December 31, 2024, as required
by Rules 13a-15(d) and 15d-15(d) under the Securities Exchange Act of 1934, as amended. There were no significant changes in the Corporation's
internal control over financial reporting that occurred during the period covered by this report that have materially affected, or that
are reasonably likely to affect, our internal control over financial reporting.

 Management's
Report on Internal Control Over Financial Reporting

 Management
is responsible for establishing and maintaining adequate internal control over financial reporting for Muncy Columbia Financial Corporation
(the "Corporation"). Internal control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles in the United States and is not intended to provide absolute assurance that a misstatement of the Corporation's
financial statements would be prevented or detected.

 Internal
control over financial reporting includes those policies and procedures that pertain to the maintenance of records that in reasonable
detail accurately and fairly reflect the transactions and dispositions of the assets of the Corporation; provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the Corporation are only being made in accordance with authorizations of management
and directors of the Corporation; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the Corporation's assets that could have a material effect on the financial statements.

 Any
control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of
the control system are met. The design of a control system inherently has limitations and the benefits of controls must be weighed against
their costs. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or
by management override of the controls. Therefore, no assessment of a cost-effective system of internal controls can provide absolute
assurance that all control issues and instances of fraud, if any, will be detected.

 As
of December 31, 2024, management of the Corporation conducted an assessment of the effectiveness of the Corporation's internal
control over financial reporting based on criteria established in Internal Control – Integrated Framework (2013) issued
by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation under the criteria in the Framework,
management concluded that the Corporation's system of internal control over financial reporting was effective as of December
31, 2024.

 /s/ Lance O. Diehl

 /s/ Joseph K. O'Neill, Jr., CPA

 Lance O. Diehl

 Joseph K. O'Neill, Jr., CPA

 President and Chief Executive Officer

 Executive Vice President and Chief Financial Officer

 Item 9B. Other Information

 (a)
 There was no information the Corporation was required to disclose in a
report on Form 8-K during the fourth quarter of 2024 that was not disclosed.

 (b)
 During the three months ended December 31, 2024, no director or officer of the Corporation adopted or
terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined
in Item 408(a) of Regulation S-K.

 Item 9C. Disclosure Regarding Foreign Jurisdictions
that Prevent Inspections

 Not Applicable

 Item 10. Directors, Executive Officers and Corporate Governance

concerning Directors, Executive Officers and Corporate Governance is incorporated herein by reference to disclosure under the heading
"Proposal No. 1 – Election of Five (5) Directors to Class 2," and the captions "Information as to Nominees
and Directors," "Executive Officers of the Company and Significant Employees of Journey Bank," and "Corporate
Governance" and under the heading "Proposal No. 2 – Ratification of Approval of the Independent Registered Public Accounting
Firm," of the Corporation's proxy statement dated March 7, 2025 for the annual meeting of stockholders to be held on
April 22, 2025.

 The
Corporation's Board of Directors has adopted a Code of Conduct and Ethics for the Corporation's employees, officers and directors.
The provisions of the Code of Conduct and Ethics are available on the Corporation's website at

 The
Corporation's Board of Directors has adopted an Insider Trading Policy that prohibits the directors, officers, employees, agents,
independent advisors and consultants of the Corporation and the Bank, and their related persons, from purchasing or selling any of the
Corporation's securities or the securities of any other company while in possession of material nonpublic information about the
Corporation or any other company, as applicable. The policy prohibits such persons from communicating such nonpublic information to any
other person, except to persons who need to know such information for purposes of Corporation business. The policy contains anti-hedging
provisions that prohibit directors and officers of the Corporation and the Bank from purchasing financial instruments or engaging in transactions
that are designed to hedge or offset any decrease in the market value of equity securities of the Corporation, including, without limitation,
puts, calls, prepaid variable forward contracts, equity swaps, collars, exchange funds and other derivative securities or transactions
with economic consequences comparable to the foregoing.

 Item 11. Executive Compensation

concerning director and executive compensation is incorporated herein by reference to disclosure under the headings "Proposal No.
1 – Election of Five (5) Directors to Class 2 " and the captions "Director
Compensation" and "Executive Compensation" of the Corporation's proxy statement dated March 7, 2025 for the
annual meeting of stockholders to be held on April 22, 2025.

 Item 12. Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters

concerning security ownership of certain beneficial owners and management is incorporated herein by reference to disclosure under the
heading "Proposal No. 1 – Election of Five (5) Directors to Class 2" and the caption "Share Ownership of Directors,
Named Executive Officers and Certain Beneficial Owners" of the Corporation's proxy statement dated March 7, 2025 for
the annual meeting of stockholders to be held on April 22, 2025.

 Item 13. Certain Relationships and Related
Transactions, Director Independence

concerning loans and deposit balances with Directors and Executive Officers is provided in Note 11 to the Consolidated Financial
Statements, which is included in Part II, Item 8 of this Annual Report on Form 10-K. Additional information, including
information concerning director independence, is incorporated herein by reference to disclosure appearing under heading "Proposal
No. 1 – Election of Five (5) Directors to Class 2" and the captions "Director Independence" and "Transactions
with Directors and Executive Officers" of the Corporation's proxy statement dated March 7, 2025 for the annual meeting
of stockholders to be held on April 22, 2025.

 Item 14. Principal Accounting Fees and Services

concerning services provided by the Corporation's independent auditor S.R. Snodgrass P.C., the audit committee's pre-approval
policies and procedures for such services, and fees paid by the Corporation to that firm, is incorporated herein by reference to disclosure
under the heading "Proposal No. 2 – Ratification of Approval of the Independent Registered Public Accounting Firm" of
the Corporation's proxy statement dated March 7, 2025 for the annual meeting of stockholders to be held on April 22, 2025.

 Item 15. Exhibits and Financial Statement Schedules

 (a) The following documents are filed
as part of this report:

 (1) The following financial
statements are filed herewith in Item 8:

 Report of Independent
Registered Public Accounting Firm

 Consolidated Balance
Sheets as of December 31, 2024 and 2023

 Consolidated Statements of Income for
the Years Ended December 31, 2024 and 2023

 Consolidated Statements of Comprehensive
Income for the Years Ended December 31, 2024 and 2023

 Consolidated Statements of Changes in
Stockholders' Equity for the Years Ended December 31, 2024 and 2023

 Consolidated Statements of Cash Flows
for the Years Ended December 31, 2024 and 2023

 Notes to Consolidated Financial Statements

 (2) All financial statement
schedules are omitted because the required information is either not applicable, not required or is shown in the respective financial
statement or in the notes thereto, which are incorporated by reference at subsection (a)(1) of this item.

 (3) Refer to the Exhibit
Index following the signature page of this report, which is incorporated herein by reference.

 (b) See item 15(a) (3)

 (c) None.

 SIGNATURES

 Pursuant to the requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

 (Registrant)

 By:

 /s/ Lance O. Diehl

 Lance O. Diehl

 President and Chief Executive Officer

(Principal Executive Officer)

 By:

 /s/ Joseph K. O'Neill, Jr.

 Joseph K. O'Neill, Jr.

 Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

 Pursuant to the requirements
of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in
the capacities and on the dates indicated.

 BOARD OF DIRECTORS

 By:

 /s/ Todd M. Arthur

 Todd M. Arthur

 By:

 /s/ Lance O. Diehl

 Lance O. Diehl

 By:

 /s/ Robert W. Dillon

 Robert W. Dillon

 By:

 /s/ Robert J. Glunk

 Robert J. Glunk

 By:

 /s/ Robert P. Hager

 Robert P. Hager

 By:

 /s/ Willard H. Kile, Jr.

 Willard H. Kile, Jr.

 By:

 /s/ Brian D. Klingerman

 Brian D. Klingerman

 By:

 /s/ J. Howard Langdon

 J. Howard Langdon

 By:

 /s/ W. Bruce McMichael, Jr.

 W. Bruce McMichael, Jr.

 By:

 /s/ Steven H. Shannon

 Steven H. Shannon

 By:

 /s/ Stephen M. Tasselli

 Stephen M. Tasselli

 By:

 /s/ Bonnie M. Tompkins

 Bonnie M. Tompkins

 By:

 /s/ Edwin A. Wenner

 Edwin A. Wenner

 By:

 /s/ Brenda R. H. Williams

 Brenda R. H. Williams

 INDEX TO EXHIBITS

 The following exhibits are filed herewith, or,
as indicated, incorporated by reference as a part of this report.

 3.1

 Articles of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (filed on November 16, 2023))

 3.2

 Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to Registrant's Current Report on Form 8-K (filed on December 11, 2024)

 4.1

 Form of common stock certificate (incorporated by reference to Exhibit 4.1 to Registrant's Quarterly Report on Form 10-Q (filed May 13, 2024))

 4.2

 Description of Registrant's Common Stock (Filed herewith)

 10.1

 Amended and Restated Employment Agreement dated as of February 13, 2024 by and among Registrant, Journey Bank and Robert J. Glunk (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (filed on February 14, 2024))

 10.2

 Employment Agreement dated as of April 17, 2023 by and among CCFNB Bancorp, Inc., First Columbia Bank & Trust Co. and Joseph K. O'Neill, Jr. (incorporated by reference to Exhibit 10.4 to the Registrant's Registration Statement on Form S-4 (File No. 333-273023 filed on June 29, 2023))

 10.3

 Amended and Restated Employment Agreement dated as of February 13, 2024 by and among Registrant, Journey Bank and Lance O. Diehl (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (filed on February 14, 2024))

 10.4

 First Amendment to Amended and Restated Employment Agreement dated as of December 10, 2024 by and among Registrant, Journey Bank and Lance O. Diehl (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (filed on December 12, 2024))

 10.5

 Amended and Restated Employment Agreement dated as of August 2, 2023 by and among CCFNB Bancorp, Inc., First Columbia Bank & Trust Co. and Jeffrey T. Arnold (incorporated by reference to Exhibit 10.7 to the Registrant's Registration Statement on Form S-4 Amendment No. 1 (File No. 333-273023 filed on August 7, 2023))

 10.6

 Supplemental Executive Retirement Plan Agreement dated April 15, 2003, between First Columbia Bank & Trust Co. (formerly Columbia County Farmers National Bank) and Lance O. Diehl, as amended (incorporated by reference to Exhibit 10.10 to the Registrant's Registration Statement on Form S-4 (File No. 333-273023 filed on June 29, 2023))

 10.7

 Third Amendment to Supplemental Executive Retirement Agreement dated April 15, 2003 for Lance O. Diehl dated December 10, 2024 between Journey Bank and Lance O. Diehl (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (filed on December 12, 2024))

 10.8

 2022 Supplemental Executive Retirement Plan dated March 15, 2022 between First Columbia Bank & Trust Co. and Lance O. Diehl, as amended (incorporated by reference to Exhibit 10.11 to the Registrant's Registration Statement on Form S-4 (File No. 333-273023 filed on June 29, 2023))

 10.9

 Supplemental Executive Retirement Benefit Agreement dated December 15, 2010 between First Columbia Bank & Trust Co. and Jeffrey T. Arnold, as amended (incorporated by reference to Exhibit 10.12 to the Registrant's Registration Statement on Form S-4 (File No. 333-273023 filed on June 29, 2023))

 10.10

 Supplemental Executive Retirement Agreement dated May 17, 2016, as amended, by and between Journey Bank, as successor by merger to The Muncy Bank and Trust Company, and Robert J. Glunk (incorporated by reference to Exhibit 10.3 to Registration's Current Report on Form 8-K (filed on November 16, 2023))

 10.11

 Third Amendment to Supplemental Executive Retirement Plan dated February 13, 2024, between Journey Bank and Robert J. Glunk (incorporated by reference to Exhibit 10.3 to Registrant's Current Report on Form 8-K (filed on February 14, 2024))

 10.12

 Supplemental Executive Retirement Agreement dated September 24, 2020, as amended, by and between Journey Bank, as successor by merger to The Muncy Bank and Trust Company, and Joseph K. O'Neill, Jr. (incorporated by reference to Exhibit 10.4 to Registrant's Current Report on Form 8-K (filed on November 16, 2023))

 10.13

 Employment Separation Agreement and Release dated February 11, 2025 between Robert J. Glunk, Muncy Columbia Financial Corporation and Journey Bank (incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K (filed on February 12, 2025))

 10.14

 Fourth Amendment to Supplemental Executive Retirement Agreement dated February 11, 2025 between Journey Bank and Robert Glunk (incorporated by reference to Exhibit 10.2 to Registrant's Current Report on Form 8-K (filed on February 12, 2025))

 14.

 Code of Conduct and Ethics – The Code of Conduct and Ethics is available through the Registrant's website at

 19.

 Insider Trading Policy (Filed herewith)

 21.1

 Subsidiaries of Muncy Columbia Financial Corporation (Filed herewith)

 23.

 Consent of Independent Registered Public Accounting Firm (Filed herewith)

 31.1

 Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer (Filed herewith)

 31.2

 Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer (Filed herewith)

 32.1

 Section 1350 Certification of Chief Executive Officer (Filed herewith)

 32.2

 Section 1350 Certification of Chief Financial Officer (Filed herewith)

 99.1

 Additional information mailed or made available to shareholders with the proxy statement and annual report on Form 10-K on March 7, 2025 (Filed herewith)

 101.

 Interactive data file (Filed herewith)

 104.