Mountain Commerce Bancorp, Inc. Announces Second Quarter 2024 Results And Quarterly Cash Dividend

Rhea-AI Summary

Mountain Commerce Bancorp (OTCQX: MCBI) released its Q2 2024 results and announced a quarterly cash dividend of $0.05 per share.

Key figures include a net interest margin improvement to 2.00%, net income of $2.32 million, and an earnings per share (EPS) of $0.37. The bank also reported a decline in noninterest expenses to 1.36% of average assets, with strong asset quality and liquidity.

For the six months ended June 30, 2024, net income was $3.84 million and EPS was $0.61. The company saw a decline in net interest income by 17.5% year-over-year, while noninterest income increased to $1.5 million from $0.8 million.

Key highlight was the opening of a new financial center in Johnson City, aiding potential growth in the TriCities market. The dividend is payable on September 2, 2024, to shareholders of record as of August 5, 2024.

Positive

• Net interest margin improvement to 2.00% from 1.66% in Q1 2024.
• Noninterest expense declined to 1.36% of average assets from 1.47% in Q2 2023.
• Strong asset quality with non-performing assets at 0.08%.
• Liquidity remained strong, with available funding sources over $50 million.
• Noninterest income increased to $1.5 million for the first six months of 2024, from $0.8 million in the same period of 2023.

Negative

• Net interest income declined by 17.5% year-over-year.
• Net income decreased to $2.32 million from $2.45 million in Q2 2023.
• Earnings per share dropped to $0.37 from $0.39 in Q2 2023.
• Return on average equity decreased to 7.46% from 8.13% in Q2 2023.

KNOXVILLE, Tenn., July 22, 2024 /PRNewswire/ -- Mountain Commerce Bancorp, Inc. (the "Company") (OTCQX: MCBI), the holding company for Mountain Commerce Bank (the "Bank"), today announced results and related data as of and for the three and six months ended June 30, 2024.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.05 per common share, its fifteenth consecutive quarterly dividend.  The dividend is payable on September 2, 2024 to shareholders of record as of the close of business on August 5, 2024.

Management Commentary

William E. "Bill" Edwards, III, President and Chief Executive Officer of the Company, commented as follows:

"The second quarter of 2024 appears to have been a turning point for the Company's net interest margin, which improved from 1.66% in the first quarter of 2024 to 2.00% in the second quarter of 2024, and finished the quarter at 2.08% for the month of June, 2024.  Net interest income represents approximately 90% of the Company's revenue and is a key driver of the Company's earnings.  Our recent results from our deposit pricing initiatives suggest that our cost of deposit trends have reversed course during the first quarter of 2024, and we are anticipating continued improvement in our net interest margin for the remainder of 2024 and into the start of 2025.  We are pleased that our average yield on taxable loans continues to increase, rising 11 bp to 5.77% from 5.66% in the first quarter of 2024 and 49 bp from the same quarter a year ago.  Equally as important, the Company's cost of funds declined 22bp from 3.92% in the first quarter of 2024 to 3.70% in the current quarter, although still elevated from 3.23% in the second quarter of 2023.  We continue to experience excellent asset quality with non-performing assets to total assets of 0.08%, no properties in real estate owned, and an allowance to non-performing loans coverage ratio of nearly 9x.  Liquidity remained strong as of June 30, 2024 with available funding sources more than $50 million in excess of our level of uninsured and uncollateralized deposits.  During this time of lower net interest income, we remain very focused on controlling noninterest expenses which declined to 1.36% of average assets during the second quarter of 2024 from 1.47% in the same quarter of 2023, which we believe is among the lowest in our peer group.  Our dividend for the quarter remains unchanged from the prior quarter as we continue to manage our tangible book value and ensure that we have adequate capital for future growth.

Construction of our Johnson City financial center was completed and this new facility opened for business on schedule on July 1, 2024.  This location, which has significant I-26 visibility, is a major upgrade from our single existing branch in this market, and we believe the opening of this location will aid in our efforts to significantly grow our Johnson City and TriCities deposit market share."

Highlights

The following tables highlight the trends that the Company believes are most relevant to understanding the performance of the Company as of and for the three and six months ended June 30, 2024.  As further detailed in Appendix A and Appendix C to this press release, adjusted results (which are non-GAAP financial measures), reflect adjustments for realized and unrealized investment gains and losses, gains and losses from the sale of fixed assets, the provision for or recovery of credit losses, and the impact of material one-time fraud losses or recoveries.  See Appendix B to this press release for more information on the Company's tax equivalent net interest margin.  All financial information in this press release is unaudited.

		For the Three Months Ended June 30,
		(Dollars in thousands, except per share data)
		2024					2023
		GAAP		Adjusted (1)			GAAP		Adjusted (1)
Net income	$	2,324		1,966		$	2,459		2,202
Diluted earnings per share	$	0.37		0.31		$	0.39		0.35
Return on average assets (ROAA)		0.53 %		0.44 %			0.59 %		0.53 %
Return on average equity		7.46 %		6.31 %			8.13 %		7.28 %
Noninterest expense to average assets		1.36 %		1.36 %			1.47 %		1.47 %
Net interest margin (tax equivalent)		2.00 %		2.00 %			2.09 %		2.09 %
Pre-tax, pre-provision earnings (1)	$			2,448		$			2,315
Pre-tax, pre-provision ROAA (1)				0.55 %					0.55 %

(1)	Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.

 

		For the Six Months Ended June 30,
		(Dollars in thousands, except per share data)
		2024					2023
		GAAP		Adjusted (1)			GAAP		Adjusted (1)
Net income	$	3,839		3,071		$	4,817		5,258
Diluted earnings per share	$	0.61		0.49		$	0.77		0.84
Return on average assets (ROAA)		0.86 %		0.69 %			0.58 %		0.63 %
Return on average equity		12.40 %		9.92 %			8.02 %		8.75 %
Noninterest expense to average assets		1.33 %		1.33 %			1.47 %		1.47 %
Net interest margin (tax equivalent)		1.80 %		1.80 %			2.32 %		2.32 %
Pre-tax, pre-provision earnings (1)	$			3,866		$			5,852
Pre-tax, pre-provision ROAA (1)				0.87 %					0.71 %

(1)	Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.

 

			As of and for the			As of and for the			As of and for the
			3 Months Ended			3 Months Ended			12 Months Ended
			June 30,			March 31,			December 31,
			2024			2024			2023
			(Dollars in thousands, except share data)
Asset Quality
	Non-performing loans	$	1,381		$	805		$	1,607
	Real estate owned	$	-		$	-		$	-
	Non-performing assets	$	1,381		$	805		$	1,607
	Non-performing loans to total loans		0.09 %			0.06 %			0.11 %
	Non-performing assets to total assets		0.08 %			0.04 %			0.09 %
	Year-to-date net charge-offs (recoveries)	$	(243)		$	(230)		$	459
	Allowance for credit losses to non-performing loans		889.86 %			1559.38 %			811.08 %
	Allowance for credit losses to total loans		0.83 %			0.86 %			0.90 %
Other Data
	Cash dividends declared	$	0.050		$	0.080		$	0.640
	Shares outstanding		6,373,998			6,376,660			6,352,725
	Book and tangible book value per share (2)	$	19.83		$	19.46		$	19.33
	Accumulated other comprehensive income (loss) (AOCI) per share		(2.57)			(2.55)			(2.56)
	Book and tangible book value per share, excluding AOCI (1) (2)		22.39		$	22.01		$	21.89
	Closing market price per common share	$	16.87		$	18.25		$	18.50
	Closing price to book value ratio		85.08 %			93.79 %			95.71 %
	Tangible common equity to tangible assets ratio		7.06 %			6.88 %			7.07 %
	Bank regulatory leverage ratio		9.31 %			9.15 %			9.45 %

(1)	As further detailed in Appendix A and Appendix C to this press release, this is a non-GAAP financial measure
(2)	The Company does not have any intangible assets

Five Quarter Trends

		For the Three Months Ended
		(Dollars in thousands, except per share data)
		2024				2023
		June 30		March 31		December 31		September 30		June 30
		GAAP		GAAP		GAAP		GAAP		GAAP
Net income (loss)	$	2,324	$	1,515	$	(376)	$	2,473	$	2,459
Diluted earnings (loss) per share	$	0.37	$	0.24	$	(0.06)	$	0.40	$	0.39
Return on average assets (ROAA)		0.53 %		0.34 %		-0.09 %		0.58 %		0.59 %
Return on average equity		7.46 %		4.92 %		-1.25 %		8.19 %		8.13 %
Noninterest expense to average assets		1.36 %		1.30 %		1.48 %		1.34 %		1.47 %
Net interest margin (tax equivalent)		2.00 %		1.66 %		1.98 %		2.08 %		2.09 %
		2024				2023
		June 30		March 31		December 31		September 30		June 30
		Adjusted (1)		Adjusted (2)		Adjusted (2)		Adjusted (2)		Adjusted (1)
Net income	$	1,966	$	1,104	$	1,244	$	2,405	$	2,202
Diluted earnings per share	$	0.31	$	0.18	$	0.20	$	0.39	$	0.35
Return on average assets (ROAA)		0.44 %		0.25 %		0.29 %		0.56 %		0.53 %
Return on average equity		6.31 %		3.59 %		4.13 %		7.97 %		7.28 %
Noninterest expense to average assets		1.36 %		1.30 %		1.48 %		1.34 %		1.47 %
Net interest margin (tax equivalent)		2.00 %		1.66 %		1.98 %		2.08 %		2.09 %
Pre-tax, pre-provision earnings	$	2,448	$	1,418	$	1,182	$	2,684	$	2,315
Pre-tax, pre-provision ROAA		0.55 %		0.32 %		0.27 %		0.63 %		0.55 %

(1)	Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.
(2)	Represents a non-GAAP financial measure.  See Appendix C to this press release for more information.

Net Interest Income

Net interest income decreased $0.05 million, or 0.6%, from $7.83 million for the three months ended June 30, 2023 to $7.79 million for the same period in 2024.  The change between the periods was primarily the net result of the following factors:

• Average interest-earning assets grew $73.4 million, or 4.6%, from $1.591 billion to $1.664 billion, driven primarily by increases in loans.
• Average net interest-earning assets declined $47.5 million, or 14.5%, from $329.0 million to $281.4 million, due primarily to a $28.1 million decrease in noninterest bearing deposits and a $22.9 million increase in noninterest earning assets – primarily resulting from higher levels of fixed assets which are discussed below.
• The average rate paid on interest-bearing liabilities increased 44 bp from 3.93% to 4.37%, while the average rate earned on interest-earning assets increased 42 bp from 5.21% to 5.63%, resulting in a decrease in tax-equivalent net interest margin from 2.09% to 2.00%.

Net interest income decreased $3.0 million, or 17.5%, from $17.2 million for the six months ended June 30, 2023 to $14.2 million for the same period in 2024. The change between the periods was primarily the net result of the following factors:

• Average interest-earning assets grew $121.3 million, or 7.7%, from $1.580 billion to $1.701 billion, driven primarily by increases in loans.
• Average net interest-earning assets declined $29.5 million, or 8.9%, from $333.4 million to $303.9 million, due primarily to a $38.4 million decrease in noninterest bearing deposits and a $4.3 million increase in noninterest earning assets – primarily resulting from higher levels of fixed assets which are discussed below.
• The average rate paid on interest-bearing liabilities increased 97 bp from 3.51% to 4.48%, while the average rate earned on interest-earning assets increased 39 bp from 5.09% to 5.48%, resulting in a decrease in tax-equivalent net interest margin from 2.32% to 1.80%.

Rate Sensitivity

The Company has the following loans subject to repricing of interest rates as of June 30, 2024:

	Prime	SOFR	Treasury	Total
$	188,558	97,860	21,370	307,788

The Federal Reserve has increased the Federal Funds interest rate by 525 bp since December 31, 2021.  Since that time, the Company has experienced the following cumulative impacts on its loan yields and deposit costs:

	Cumulative Beta
	Loan Yields	Deposit Costs
Mar 31, 2022	128.0 %	0.0 %
Jun 30, 2022	32.0 %	5.3 %
Sep 30, 2022	24.7 %	14.3 %
Dec 31, 2022	25.4 %	30.6 %
Mar 31, 2023	26.1 %	43.8 %
Jun 30, 2023	27.8 %	55.0 %
Sep 30, 2023	30.7 %	57.5 %
Dec 31, 2023	33.5 %	62.3 %
Mar 31, 2024	33.9 %	67.6 %
Jun 30, 2024	36.0 %	65.1 %

Effective October 1, 2023, the Company entered into a $150 million notional amount pay-fixed swap with a term of 3 years whereby the Company pays a fixed rate of 4.69% and receives the SOFR Compound rate. This swap has been accounted for as a fair value hedge of fixed-rate loans and should improve the Company's exposure to interest rates in a rising rate environment.  The Company currently receives approximately $1.0 million per year in net proceeds from the swap.

Provision For Credit Losses

A provision for (recovery of) credit losses of ($0.5) million and $0.6 million was recognized for the three months ended June 30, 2024 and 2023, respectively. A provision for (recovery of) credit losses of ($1.0) million and $0.02 million was recognized for the six months ended June 30, 2024 and 2023, respectively.  The Company continues to experience near historically low levels of problem assets and charge-offs which, when combined with favorable economic factors, has resulted in minimal or negative provisions in recent periods. 

Noninterest Income

The following summarizes changes in the Company's noninterest income for the periods indicated:

		Three Months Ended June 30
(In thousands)		2024	2023	Change
Service charges and fees	$	371	393	(22)
Bank owned life insurance		55	46	9
Realized gain (loss) on sale of investment securities available for sale		(8)	1	(9)
Realized and unrealized loss on equity securities		(7)	(214)	207
Gain (loss) on sale of loans		29	10	19
Gain on sale of fixed assets		-	-	-
Wealth management		217	170	47
Swap fees		-	173	(173)
Limited partnership distributions		-	-	-
Other		15	39	(24)
Total noninterest income	$	672	618	54

Noninterest income increased to $0.7 million in the second quarter of 2024 from $0.6 million in the same quarter of 2023.  The following factors had an impact on noninterest income during these periods:

• Realized and unrealized losses on equity securities improved by $0.2 million from the second quarter of 2023 as a result of the sale of the majority of the Company's equity securities during the fourth quarter of 2023.
• The Company recognized a $0.2 million decrease in swap fees from the second quarter of 2023 due to a decline in the Company's lending volume. The Bank receives a fee for delivering the swap to a third party with our borrower as counterparty to the swap, but does not maintain a contractual obligation for the swap other than in the event of a default.

 

		Six Months Ended June 30
(In thousands)		2024	2023	Change
Service charges and fees	$	753	768	(15)
Bank owned life insurance		110	92	18
Realized gain (loss) on sale of investment securities available for sale		69	(9)	78
Realized and unrealized loss on equity securities		(27)	(731)	704
Gain on sale of loans		26	13	13
Gain on sale of fixed assets		30	69	(39)
Wealth management		418	321	97
Swap fees		51	220	(169)
Limited partnership distributions		-	-	-
Other		24	37	(13)
Total noninterest income	$	1,454	780	674

Noninterest income increased to $1.5 million for the six months ended June 30, 2024 from $0.8 million in the same period of 2023.  The following factors had an impact on noninterest income during these periods:

• Realized and unrealized losses on equity securities improved by $0.7 million from the six months ended June 30, 2023 as a result of the sale of the majority of the Company's equity securities during the fourth quarter of 2023.
• The Company recognized a $0.2 million decrease in swap fees from the six months ended June 30, 2023 due to a decline in the Company's lending volume. The Bank receives a fee for delivering the swap to a third party, but does not maintain a contractual obligation for the swap other than in the event of a default.

Noninterest Expense

The following summarizes changes in the Company's noninterest expense for the periods indicated:

		Three Months Ended June 30
(In thousands)		2024	2023	Change
Compensation and employee benefits	$	3,005	3,396	(391)
Occupancy		643	558	85
Furniture and equipment		269	184	85
Data processing		608	544	64
FDIC insurance		364	353	11
Office		180	205	(25)
Advertising		102	154	(52)
Professional fees		551	324	227
Other noninterest expense		295	424	(129)
Total noninterest expense	$	6,017	6,142	(125)

Noninterest expense declined $0.1 million, or 2.0%, from $6.1 million in the second quarter of 2023 to $6.0 million in the same period of 2024. The following factors had an impact on changes in noninterest expense during these periods:

• Compensation and employee benefits expense decreased $0.4 million, or 11.5%, due primarily to a decrease in incentive accruals and a decline in FTE employees from 115 to 107, offset, in part, by merit increases and an increase in benefit costs.
• Professional fees increased $0.2 million, or 70%, due to a change in the timing of recognizing certain auditing, regulatory and legal costs.

 

		Six Months Ended June 30
(In thousands)		2024	2023	Change
Compensation and employee benefits	$	5,997	6,659	(662)
Occupancy		1,231	1,173	58
Furniture and equipment		514	376	138
Data processing		1,054	1,061	(7)
FDIC insurance		747	587	160
Office		346	407	(61)
Advertising		202	267	(65)
Professional fees		1,150	903	247
Other noninterest expense		577	744	(167)
Total noninterest expense	$	11,818	12,177	(359)

Noninterest expense declined $0.4 million, or 2.9%, from $12.2 million in the first six months of 2023 to $11.8 million in the same period of 2024. The following factors had an impact on changes in noninterest expense during these periods:

• Compensation and employee benefits decreased $0.6 million, or 9.9%, due primarily to a decrease in incentive accruals and a decline in FTE employees from 115 to 107, offset, in part, by merit increases and an increase in benefit costs.
• Furniture and equipment expense increased $0.1 million, or 36.7%, due primarily to increased depreciation expense for the West Knoxville financial center, which opened for business during the fourth quarter of 2023.
• FDIC insurance increased $0.2 million, or 27.2%, due to an increase in average assets and the quarterly multiplier used to calculate the assessment.
• Professional fees increased $0.2 million, or 27.4%, due to a change in the timing of recognizing certain auditing, regulatory and legal costs.

Income Taxes

The effective tax rates of the Company were as follows for the periods indicated

Three Months Ended June 30			Six Months Ended June 30
2024	2023		2024	2023
21.14 %	14.50 %		20.58 %	17.32 %

The Company's tax rates for the three and six months ended June 30, 2023 were unusually low due to the recognition of tax credits on certain loans for state tax purposes.  The Company's tax rates for the three and six months ended June 30, 2024 reflect a more normalized tax rate.  The Company's marginal tax rate of 26.14% is favorably impacted by certain sources of non-taxable income including bank-owned life insurance (BOLI), tax-free loans, and investments in tax-free municipal securities. 

Balance Sheet

Total assets increased $52.7 million, or 3.0%, from $1.738 billion at December 31, 2023 to $1.790 billion at June 30, 2024.  The change was primarily driven by the following factors:

• Cash and cash equivalents increased $45.5 million, or 66.0%, due to a decrease in new loan volumes and an increased focus on core deposit growth.
• Available for sale investment security balances decreased $13.2 million, or 10.1%, primarily due to the sale of approximately $8.0 million of securities during the first quarter of 2024 and principal paydowns.

The following summarizes the composition of the Company's available for sale investment securities portfolio (at fair value) as of June 30, 2024 and December 31, 2023:

		June 30, 2024			December 31, 2023
		Estimated	Net		Estimated	Net
		Fair	Unrealized		Fair	Unrealized
		Value	Gain (Loss)		Value	Gain (Loss)
(in thousands)
Agency MBS / CMO	$	12,163	(2,085)		12,870	(1,853)
Agency multifamily (non-guaranteed)		7,046	(835)		8,944	(897)
Agency floating rate		7,593	28		16,919	(41)
Business Development Companies		3,395	(367)		3,420	(345)
Corporate		23,774	(2,678)		23,801	(2,673)
Municipal		26,078	(7,107)		26,465	(6,790)
Non-agency MBS / CMO		37,000	(9,139)		37,805	(9,489)
	$	117,048	(22,182)		130,224	(22,088)

Non-agency MBS/CMO have an average credit-enhancement of approximately 31% as of June 30, 2024.  Municipal securities are generally rated AA or higher. 

• The Company did not have any securities classified as held-to-maturity as of June 30, 2024 and December 31, 2023.
• Loans receivable increased $19.3 million, or 1.3%, from $1.453 billion at December 31, 2023 to $1.472 billion at June 30, 2024. The Company is actively managing its exposure to commercial real estate and has a regulatory commercial real estate concentration of 322% of total risk-based capital as of June 30, 2024. The following summarizes changes in loan balances over the last five quarters:

 

		June 30,		March 31,		December 31,		September 30,		June 30,
		2024		2024		2023		2023		2023
(in thousands)
Residential construction	$	18,859		29,716		33,881		39,824		40,309
Other construction		79,309		84,967		89,388		82,288		73,183
Farmland		9,539		9,684		8,614		8,699		9,381
Home equity		53,670		48,059		48,118		45,839		43,992
Residential		459,572		449,894		452,957		446,215		434,780
Multi-family		115,530		115,065		109,859		112,786		111,988
Owner-occupied commercial		244,344		239,010		234,289		229,879		217,778
Non-owner occupied commercial		356,914		335,634		329,204		317,651		324,883
Commercial & industrial		124,712		134,397		137,076		142,685		134,188
PPP Program		119		137		154		191		884
Consumer		9,562		8,779		9,331		9,572		12,732
	$	1,472,130		1,455,342		1,452,871		1,435,629		1,404,098

The following summarizes the industry components of the Company's non-owner occupied commercial real estate loans as of June 30, 2024.  Office loans are primarily comprised of low-rise office space.

		Loan		% of Total
		Balance		Loans
Hotels	$	73,514		5.0 %
Retail		68,534		4.7 %
Office		33,038		2.2 %
Marina		31,421		2.1 %
Campground		30,101		2.0 %
Medical		28,539		1.9 %
Mini-storage		23,893		1.6 %
Warehouse		22,491		1.5 %
Vacation Rentals		16,947		1.2 %
Car Wash		13,298		0.9 %
Entertainment		9,047		0.6 %
Restaurant		4,926		0.3 %
Other		1,165		0.1 %
	$	356,914		24.2 %

 

• Premises and equipment increased $6.3 million, or 12.0%, from December 31, 2023 to June 30, 2024 primarily due to costs incurred for the construction of the new 23,000 sf Johnson City combined financial/corporate center which opened for business on July 1, 2024.  The following summarizes costs incurred and remaining to be incurred with respect to this project as of June 30, 2024:

 

		Maximum
	Costs	Remaining
	Incurred	Expenditures
	(in thousands)
$	19,746	3,344

 

• Total deposits increased $82.7 million, or 5.6%, from $1.472 billion at December 31, 2023 to $1.555 billion at June 30, 2024.  An increase in non-interest bearing transaction and NOW and money market accounts during the first six months of 2024 offset a decline in savings accounts and retail time deposits and was further used to reduce wholesale time deposits and increase liquidity.

The following summarizes changes in deposit balances over the last five quarters:

		June 30,		March 31,		December 31,		September 30,		June 30,
		2024		2024		2023		2023		2023
(in thousands)
Non-interest bearing transaction	$	285,446		247,262		243,750		270,299		322,003
NOW and money market		415,772		421,139		271,208		250,920		266,777
Savings		227,282		266,168		248,576		258,110		260,741
Retail time deposits		378,944		381,110		392,638		382,708		355,367
		1,307,444		1,315,679		1,156,172		1,162,037		1,204,888
Wholesale time deposits		247,329		272,932		315,862		246,716		212,988
Total deposits	$	1,554,773		1,588,611		1,472,034		1,408,753		1,417,876

The following summarizes the composition of wholesale time deposits as of June 30, 2024:

					Original
Type		Principal	Rate	Maturity	Term
(in thousands)
Brokered CD		46,673	5.15 %	May, 2025	1 Yr
Brokered CD		555	4.75 %	Dec, 2025	2 Yr
Brokered CD		39,721	4.80 %	Mar, 2026	2 Yr
Brokered CD		10,579	4.75 %	Mar, 2026	2 Yr
Brokered CD		48,551	4.50 %	Dec, 2026	3 Yr
Brokered CD		44,201	4.75 %	Apr, 2027	3 Yr
Qwickrate		57,049	5.32 %	Through Dec 15, 2026	2.5 Yrs or Less
	$	247,329	4.92 %

 

• FHLB borrowings decreased $30.0 million from December 31, 2023 to June 30, 2024, and increased $20.0 million from March 31, 2024 to June 30, 2024, and consisted of the following at June 30, 2024:

 

Amounts	Original	Current	Maturity
(000's)	Term	Rate	Date
20,000	2 weeks	5.44 %	07/03/24
10,000	1 month	5.44 %	07/23/24
15,000	3 months	5.50 %	08/26/24
25,000	6 months	5.46 %	09/11/24
70,000		5.46 %

 

• Total equity increased $3.6 million, or 2.9%, from $122.8 million at December 31, 2023 to $126.4  million at June 30, 2024.  The following summarizes the components of the change in total shareholders' equity and tangible book value per share for the six months ended June 30, 2024:

 

		Total	Tangible
		Shareholders'	Book Value
		Equity	Per Share
(In thousands)
December 31, 2023	$	122,787	19.33
Net income		3,839	0.61
Dividends paid		(829)	(0.13)
Stock compensation		720	0.11
Share repurchases		(30)	(0.00)
Change in fair value of investments available for sale		(94)	(0.01)
June 30, 2024	$	126,393	19.83	*
* Sum of the individual components may not equal the total

The Company's tangible equity to tangible assets ratio remained steady at 7.06% at June 30, 2024 from 7.07% at December 31, 2023, but was up from 6.88% at March 31, 2024, as the Company continues to manage its growth and dividend levels in light of current income levels.  The Company and Bank both remain well capitalized at June 30, 2024, with the Bank maintaining a regulatory leverage ratio of 9.31% at June 30, 2024.

Share Repurchases

The Company has an active authorization to repurchase up to $5 million of shares through March 31, 2025.  No shares were repurchased during the six months ended June 30, 2024.

Asset Quality

Non-performing loans to total loans decreased to 0.09% at June 30, 2024 from 0.11% at December 31, 2023.  Non-performing assets to total assets decreased to 0.08% at June 30, 2024 from 0.09% at December 31, 2023.  Other real estate owned balances remained at $0 at both June 30, 2024 and December 31, 2023.  Net recoveries of $0.2 million were recognized during the six months ended June 30, 2024, compared to net charge-offs of $0.5 million during the year ended December 31, 2023.  The allowance for credit losses to total loans declined to 0.83% at June 30, 2024 from 0.90% at December 31, 2023 due primarily to the payoff in full of a $0.7 million loan which was fully-reserved as of December 31, 2023 and an improvement in modeled economic projections.  Coverage of non-performing loans by the allowance for credit losses was nearly 9 to 1 at June 30, 2024 compared to 8 to 1 at December 31, 2023, but declined from 15 to 1 as of March 31, 2024 due to an increase in nonperforming loans from $0.8 million to $1.4 million.

Non-GAAP Financial Measures

Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables in Appendix A and Appendix C, which provide a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.  This press release and the accompanying tables discuss financial measures such as adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average equity, and adjusted noninterest expense to average assets ratio, which are all non-GAAP financial measures. We also present in this press release and the accompanying tables pre-tax, pre-provision earnings, pre-tax, pre-provision return on average assets, and book and tangible book value per share excluding AOCI, which are also non-GAAP financial measures. We believe that such non-GAAP financial measures are useful because they enhance the ability of investors and management to evaluate and compare the Company's operating results from period to period in a meaningful manner.  Non-GAAP financial measures should not be considered as an alternative to any measure of performance calculated pursuant to GAAP, nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies.  Investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.  Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.

Forward-Looking Statements

This press release contains forward-looking statements. The words "expect," "intend," "should," "may," "could," "believe," "suspect," "anticipate," "seek," "plan," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical fact may also be considered forward-looking. Such forward-looking statements involve known and unknown risks and uncertainties that include, without limitation, (i) deterioration in the financial condition of our borrowers, including as a result of continued elevated interest rates, persistent inflationary pressures and challenging economic conditions, resulting in significant increases in credit losses and provisions for those losses; (ii) fluctuations or differences in interest rates on loans or deposits from those that we are modeling or anticipating, including as a result of our inability to better match deposit rates with the changes in the short-term rate environment, or that affect the yield curve; (iii) deterioration in the real estate market conditions in our market areas;  (iv) our ability to grow and retain low cost core deposits and retain large, uninsured deposits including during times when we are seeking to limit the rates we pay on deposits or uncertainty exists in the financial services sector; v) the impact of increased competition with other financial institutions, including pricing pressures, and the resulting impact on our results, including as a result of compression to our net interest margin; (vi) the deterioration of the economy in our market areas, including the negative impact of inflationary pressures and other challenging economic conditions on our customers and their businesses; (vii) the ability to grow and retain lower-cost core deposits, including during times when uncertainty exists in the financial services sector; (viii) our ability to meet our liquidity needs without having to liquidate investment securities that we own while those securities are in an unrealized loss position as a result of the elevated rate environment, or increase the rates we pay on deposits or increase our levels of non-core deposits to levels that cause our net interest margin to further decline;  (ix) significant downturns in the business of one or more large customers; (x) effectiveness of our asset management activities in improving, resolving or liquidating lower quality assets; (xi) our inability to maintain the historical, long-term growth rate of our loan portfolio; (xii) risks of expansion into new geographic or product markets; (xiii) the possibility of increased compliance and operational costs as a result of increased regulatory oversight; (xiv) our inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xv) the ineffectiveness of our hedging strategies, or the unexpected counterparty failure or failure of the underlying hedges; (xvi) changes in state or Federal regulations, policies, or legislation applicable to banks and other financial  service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy; (xvii) changes in capital levels and loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xviii) inadequate allowance for credit losses; (xix) results of regulatory examinations; (xx) the vulnerability of our network and online banking portals, and the systems of parties with whom we contract or do business with, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxi) loss of key personnel; and (xxii) adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, examinations or other legal and/or regulatory actions.  These risks and uncertainties may cause our actual results or performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Our future operating results depend on a number of factors which were derived utilizing numerous assumptions that could cause actual results to differ materially from those projected in forward-looking statements.

About Mountain Commerce Bancorp, Inc. and Mountain Commerce Bank

Mountain Commerce Bancorp, Inc. is the holding company for Mountain Commerce Bank.  The Company's shares of common stock trade on the OTCQX under the symbol "MCBI".

Mountain Commerce Bank is a state-chartered financial institution headquartered in Knoxville, TN. The Bank traces its history back over a century and serves Middle and East Tennessee through 7 branches located in Brentwood, Erwin, Johnson City (2), Bearden / Knoxville, West Knoxville and Unicoi.  The Bank focuses on responsive relationship banking of small and medium-sized businesses, professionals, affluent individuals, and those who value the personal service and attention that only a community bank can offer.  For further information, please visit us at www.mcb.com.

 

Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in thousands, except share data)
			Three Months Ended					Six Months Ended
			June 30,	March 31,	June 30,			June 30,	June 30,
			2024	2024	2023			2024	2023
Interest income
	Loans	$	20,542	19,846	17,560		$	40,388	33,921
	Investment securities - taxable		1,112	1,323	1,302			2,435	2,613
	Investment securities - tax exempt		29	29	38			58	77
	Dividends and other		1,133	1,326	1,302			2,459	2,339
			22,816	22,524	20,202			45,340	38,950
Interest expense
	Savings		1,859	2,078	1,587			3,937	3,142
	Interest bearing transaction accounts		4,175	3,648	2,706			7,823	5,025
	Time certificates of deposit of $250,000 or more		4,302	4,860	3,811			9,162	6,474
	Other time deposits		3,569	3,653	1,988			7,222	3,002
	Total deposits		13,905	14,239	10,092			28,144	17,643
	Senior debt		405	405	389			810	637
	Subordinated debt		164	164	164			328	329
	FHLB & FRB advances		549	1,279	1,718			1,828	3,093
			15,023	16,087	12,363			31,110	21,702
Net interest income			7,793	6,437	7,839			14,230	17,248
Provision for (recovery of) credit losses			(499)	(469)	(561)			(968)	26
Net interest income after provision for (recovery of) credit losses			8,292	6,906	8,400			15,198	17,222
Noninterest income
	Service charges and fees		371	382	393			753	768
	Bank owned life insurance		55	55	46			110	92
	Realized gain (loss) on sale of investment securities available for sale		(8)	77	1			69	(9)
	Realized and unrealized loss on equity securities		(7)	(20)	(214)			(27)	(731)
	Gain (loss) on sale of loans		29	(3)	10			26	13
	Gain on sale of fixed assets		-	30	-			30	69
	Wealth management		217	201	170			418	321
	Swap fees		-	51	173			51	220
	Other		15	9	39			24	37
			672	782	618			1,454	780
Noninterest expense
	Compensation and employee benefits		3,005	2,992	3,396			5,997	6,659
	Occupancy		643	588	558			1,231	1,173
	Furniture and equipment		269	245	184			514	376
	Data processing		608	446	544			1,054	1,061
	FDIC insurance		364	383	353			747	587
	Office		180	166	205			346	407
	Advertising		102	100	154			202	267
	Professional fees		551	599	324			1,150	903
	Other noninterest expense		295	282	424			577	744
			6,017	5,801	6,142			11,818	12,177
Income before income taxes			2,947	1,887	2,876			4,834	5,826
Income taxes			623	372	417			995	1,009
Net income		$	2,324	1,515	2,459		$	3,839	4,817
Earnings  per common share:
	Basic	$	0.37	0.24	0.39		$	0.61	0.77
	Diluted	$	0.37	0.24	0.39		$	0.61	0.77
Weighted average common shares outstanding:
	Basic		6,264,564	6,251,792	6,232,306			6,258,178	6,226,577
	Diluted		6,270,308	6,264,626	6,239,575			6,267,261	6,239,761

 

Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
			June 30,			March 31,			December 31,
			2024			2024			2023
Assets
Cash and due from banks		$	19,122		$	12,176		$	21,193
Interest-earning deposits in other banks			95,238			127,961			47,688
	Cash and cash equivalents		114,360			140,137			68,881
Investments available for sale			117,048			120,295			130,224
Equity securities			1,884			1,875			1,882
Premises and equipment held for sale			3,762			3,762			3,762
Loans receivable			1,472,130			1,455,342			1,452,871
Allowance for credit losses			(12,289)			(12,553)			(13,034)
	Net loans receivable		1,459,841			1,442,789			1,439,837
Premises and equipment, net			58,676			56,182			52,397
Accrued interest receivable			5,707			5,657			5,479
Bank owned life insurance			10,078			10,023			9,968
Restricted stock			4,563			6,224			8,145
Deferred tax assets, net			8,562			8,832			9,101
Other assets			5,940			7,337			8,094
Total assets		$	1,790,421		$	1,803,113		$	1,737,770
Liabilities and Shareholders' Equity
Noninterest-bearing		$	285,446		$	247,262		$	243,750
Interest-bearing			1,021,998			1,068,417			912,422
Wholesale			247,329			272,932			315,862
	Total deposits		1,554,773			1,588,611			1,472,034
FHLB borrowings			70,000			50,000			100,000
Senior debt, net			18,000			20,000			20,000
Subordinated debt, net			9,946			9,932			9,917
Accrued interest payable			3,142			1,968			2,258
Post-employment liabilities			3,350			3,383			3,414
Other liabilities			4,817			5,134			7,360
Total liabilities			1,664,028			1,679,028			1,614,983
Total shareholders' equity			126,393			124,085			122,787
Total liabilities and shareholders' equity		$	1,790,421		$	1,803,113		$	1,737,770

 

Appendix A - Reconciliation of Non-GAAP Financial Measures
		Three Months Ended			Six Months Ended
		June 30			June 30
		(Dollars in thousands, except per share data)			(Dollars in thousands, except per share data)
		2024	2023		2024	2023
Adjusted Net Income
Net income (GAAP)	$	2,324	2,459	$	3,839	4,817
Realized (gain) loss on sale of investment securities		8	(1)		(69)	9
Unrealized loss on equity securities		7	214		27	731
Gain on sale of fixed assets		-	-		(30)	(69)
Provision for (recovery of) credit losses		(499)	(561)		(968)	26
Fraud loss (recovery)		-	-		-	(100)
Tax effect of adjustments		126	91		272	(156)
Adjusted net income (Non-GAAP)	$	1,966	2,202	$	3,071	5,258
Adjusted Diluted Earnings Per Share
Diluted earnings per share (GAAP)	$	0.37	0.39	$	0.61	0.77
Realized (gain) loss on sale of investment securities		0.00	(0.00)		(0.01)	0.00
Unrealized loss on equity securities		0.00	0.03		0.00	0.12
Gain on sale of fixed assets		-	-		(0.00)	(0.01)
Provision for (recovery of) credit losses		(0.08)	(0.09)		(0.15)	0.00
Fraud loss (recovery)		-	-		-	(0.02)
Tax effect of adjustments		0.02	0.01		0.04	(0.03)
Adjusted diluted earnings per share (Non-GAAP)	$	0.31	0.35	$	0.49	0.84
Adjusted Return on Average Assets
Return on average assets (GAAP)		0.53 %	0.59 %		0.86 %	0.58 %
Realized (gain) loss on sale of investment securities		0.00 %	0.00 %		-0.02 %	0.00 %
Unrealized loss on equity securities		0.00 %	0.05 %		0.01 %	0.09 %
Gain on sale of fixed assets		0.00 %	0.00 %		-0.01 %	-0.01 %
Provision for (recovery of) credit losses		-0.11 %	-0.13 %		-0.22 %	0.00 %
Fraud loss (recovery)		0.00 %	0.00 %		0.00 %	-0.01 %
Tax effect of adjustments		0.03 %	0.02 %		0.06 %	-0.02 %
Adjusted return on average assets (Non-GAAP)		0.44 %	0.53 %		0.69 %	0.63 %
Adjusted Return on Average Equity
Return on average equity (GAAP)		7.46 %	8.13 %		12.40 %	8.02 %
Realized (gain) loss on sale of investment securities		0.03 %	0.00 %		-0.22 %	0.01 %
Unrealized loss on equity securities		0.02 %	0.71 %		0.09 %	1.22 %
Gain on sale of fixed assets		0.00 %	0.00 %		-0.10 %	-0.11 %
Provision for (recovery of) credit losses		-1.60 %	-1.86 %		-3.13 %	0.04 %
Fraud loss (recovery)		0.00 %	0.00 %		0.00 %	-0.17 %
Tax effect of adjustments		0.41 %	0.30 %		0.88 %	-0.26 %
Adjusted return on average equity (Non-GAAP)		6.31 %	7.28 %		9.92 %	8.75 %

 

Appendix A - Reconciliation of Non-GAAP Financial Measures, Continued
		Three Months Ended			Six Months Ended
		June 30			June 30
		(Dollars in thousands, except per share data)			(Dollars in thousands, except per share data)
		2024	2023		2024	2023
Adjusted Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP)		1.36 %	1.47 %		1.33 %	1.47 %
Fraud loss (recovery)		0.00 %	0.00 %		0.00 %	0.01 %
Adjusted noninterest expense to average assets (Non-GAAP)		1.36 %	1.47 %		1.33 %	1.47 %
Pre-tax, Pre-Provision Earnings
Net income (GAAP)	$	2,324	2,459	$	3,839	4,817
Income taxes		623	417		995	1,009
Provision for (recovery of) credit losses		(499)	(561)		(968)	26
Pre-tax, pre-provision earnings (non-GAAP)	$	2,448	2,315	$	3,866	5,852
Pre-tax, Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP)		0.53 %	0.59 %	$	0.86 %	0.58 %
Income taxes		0.14 %	0.10 %		0.11 %	0.12 %
Provision for (recovery of) credit losses		-0.11 %	-0.13 %		-0.11 %	0.00 %
Pre-tax, pre-provision return on average assets (non-GAAP)		0.55 %	0.55 %	$	0.87 %	0.71 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP)	$	19.83	19.00
Impact of AOCI per share		2.57	2.78
Book and tangible book value per share, excluding AOCI (non-GAAP)	$	22.39	21.78

 

Appendix B - Tax Equivalent Net Interest Margin Analysis
			For the Three Months Ended June 30,
			2024					2023
			Average					Average
			Outstanding		Yield /			Outstanding		Yield /
			Balance	Interest	Rate			Balance	Interest	Rate
			(Dollars in thousands)
Interest-earning Assets:
	Loans - taxable, including loans held for sale	$	1,431,221	20,542	5.77 %		$	1,334,047	17,560	5.28 %
	Loans - imputed tax credits (2)		29,057	488	6.75 %			27,219	458	6.75 %
	Investments - taxable		115,022	1,112	3.89 %			136,877	1,302	3.82 %
	Investments - tax exempt (1)		4,136	37	3.57 %			5,424	48	3.56 %
	Interest earning deposits		79,124	964	4.90 %			72,699	1,073	5.92 %
	Other investments, at cost		5,581	169	12.18 %			14,436	229	6.36 %
	Total interest-earning assets		1,664,141	23,312	5.63 %			1,590,702	20,670	5.21 %
	Noninterest earning assets		105,434					82,560
	Total assets	$	1,769,575				$	1,673,262
Interest-bearing liabilities:
	Interest-bearing transaction accounts	$	139,641	1,368	3.94 %		$	96,827	957	3.96 %
	Savings accounts		241,012	1,859	3.10 %			270,025	1,587	2.36 %
	Money market accounts		281,763	2,807	4.01 %			192,829	1,749	3.64 %
	Retail time deposits		378,057	4,218	4.49 %			329,820	3,304	4.02 %
	Wholesale time deposits		251,649	3,653	5.84 %			206,411	2,495	4.85 %
	Total interest bearing deposits		1,292,122	13,905	4.33 %			1,095,912	10,092	3.69 %
	Senior debt		19,000	405	8.57 %			20,000	389	7.80 %
	Subordinated debt		9,942	164	6.63 %			9,886	164	6.65 %
	Federal Home Loan Bank & FRB advances		61,649	549	3.58 %			135,935	1,718	5.07 %
	Total interest-bearing liabilities		1,382,713	15,023	4.37 %			1,261,733	12,363	3.93 %
	Noninterest-bearing deposits		251,882					280,011
	Other noninterest-bearing liabilities		10,331					10,602
	Total liabilities		1,644,926					1,552,346
	Total shareholders' equity		124,649					120,916
	Total liabilities and shareholders' equity	$	1,769,575				$	1,673,262
	Tax-equivalent net interest income			8,289					8,307
	Net interest-earning assets (3)	$	281,428				$	328,969
	Average interest-earning assets to interest-
	bearing liabilities		120 %					126 %
	Tax-equivalent net interest rate spread (4)		1.26 %					1.28 %
	Tax equivalent net interest margin (5)		2.00 %					2.09 %

(1)	Tax exempt investments are calculated assuming a 21% federal tax rate
(2)	Reflects the tax equivalent yield of a 5% state tax credit assuming a 26% federal and state tax rate
(3)	Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities
(4)	Tax-equivalent net interest rate spread represents the difference between the tax equivalent yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)	Tax equivalent net interest margin represents tax equivalent net interest income divided by average total interest-earning assets

 

Appendix B - Tax Equivalent Net Interest Margin Analysis
			For the Six Months Ended June 30,
			2024					2023
			Average					Average
			Outstanding		Yield /			Outstanding		Yield /
			Balance	Interest	Rate			Balance	Interest	Rate
			(Dollars in thousands)
Interest-earning Assets:
	Loans, including loans held for sale	$	1,450,308	40,388	5.60 %		$	1,316,414	33,921	5.20 %
	Loans - imputed tax credits (2)		29,249	982	6.75 %			26,670	893	6.75 %
	Investments - taxable		120,701	2,435	4.06 %			137,778	2,613	3.82 %
	Investments - tax exempt (1)		4,210	73	3.51 %			5,420	97	3.63 %
	Interest earning deposits		90,010	2,091	4.67 %			81,224	1,930	4.79 %
	Other investments, at cost		6,467	369	11.47 %			12,142	409	6.79 %
	Total interest-earning assets		1,700,945	46,338	5.48 %			1,579,647	39,863	5.09 %
	Noninterest earning assets		75,360					79,669
	Total assets	$	1,776,305				$	1,659,316
Interest-bearing liabilities:
	Interest-bearing transaction accounts	$	127,310	2,445	3.86 %		$	99,536	1,745	3.54 %
	Savings accounts		249,582	3,937	3.17 %			303,856	3,142	2.09 %
	Money market accounts		258,567	5,379	4.18 %			196,940	3,280	3.36 %
	Retail time deposits		387,383	8,520	4.42 %			269,402	4,988	3.73 %
	Wholesale time deposits		270,816	7,863	5.84 %			200,395	4,487	4.52 %
	Total interest bearing deposits		1,293,658	28,144	4.37 %			1,070,129	17,642	3.32 %
	Senior debt		19,500	810	8.35 %			15,714	637	8.17 %
	Subordinated debt		9,934	328	6.64 %			9,879	329	6.72 %
	Federal Home Loan Bank & FRB advances		73,956	1,828	4.97 %			150,503	3,093	4.14 %
	Total interest-bearing liabilities		1,397,048	31,110	4.48 %			1,246,225	21,701	3.51 %
	Noninterest-bearing deposits		244,137					282,495
	Other noninterest-bearing liabilities		11,252					10,414
	Total liabilities		1,652,437					1,539,134
	Total shareholders' equity		123,868					120,182
	Total liabilities and shareholders' equity	$	1,776,305				$	1,659,316
	Tax-equivalent net interest income			15,228					18,162
	Net interest-earning assets (3)	$	303,897				$	333,422
	Average interest-earning assets to interest-
	bearing liabilities		122 %					127 %
	Tax-equivalent net interest rate spread (4)		1.00 %					1.58 %
	Tax equivalent net interest margin (5)		1.80 %					2.32 %

(1)	Tax exempt investments are calculated assuming a 21% federal tax rate
(2)	Reflects the tax equivalent yield of a 5% state tax credit assuming a 26% federal and state tax rate
(3)	Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities
(4)	Tax-equivalent net interest rate spread represents the difference between the tax equivalent yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)	Tax equivalent net interest margin represents tax equivalent net interest income divided by average total interest-earning assets

 

Appendix C - Reconciliation of Prior Period Non-GAAP Financial Measures
		Three Months Ended
		(Dollars in thousands, except per share data)
		March 31, 2024	December 31, 2023	September 30, 2023
Adjusted Net Income
Net income (loss) (GAAP)	$	1,515	(376)	2,473
Realized (gain) loss on sale of investment securities		(77)	666	-
Unrealized loss on equity securities		20	90	50
(Gain) loss on sale of fixed assets		(30)	55	269
Provision for (recovery of) credit losses		(469)	1,382	(411)
Tax effect of adjustments		145	(573)	24
Adjusted net income (Non-GAAP)	$	1,104	1,244	2,405
Adjusted Diluted Earnings Per Share
Diluted earnings (loss) per share (GAAP)	$	0.24	(0.06)	0.40
Realized (gain) loss on sale of investment securities		(0.01)	0.11	-
Unrealized loss on equity securities		-	0.01	0.01
(Gain) loss on sale of fixed assets		-	0.01	0.04
Provision for (recovery of) credit losses		(0.07)	0.22	(0.07)
Tax effect of adjustments		0.02	(0.09)	0.00
Adjusted diluted earnings per share (Non-GAAP)	$	0.18	0.20	0.39
Adjusted Return on Average Assets
Return on average assets (GAAP)		0.34 %	-0.09 %	0.58 %
Realized (gain) loss on sale of investment securities		-0.02 %	0.15 %	0.00 %
Unrealized loss on equity securities		0.00 %	0.02 %	0.01 %
(Gain) loss on sale of fixed assets		-0.01 %	0.01 %	0.06 %
Provision for (recovery of) credit losses		-0.11 %	0.32 %	-0.10 %
Tax effect of adjustments		0.03 %	-0.13 %	0.01 %
Adjusted return on average assets (Non-GAAP)		0.25 %	0.29 %	0.56 %
Adjusted Return on Average Equity
Return on average equity (GAAP)		4.92 %	-1.25 %	8.19 %
Realized (gain) loss on sale of investment securities		-0.25 %	2.21 %	0.00 %
Unrealized loss on equity securities		0.06 %	0.30 %	0.17 %
(Gain) loss on sale of fixed assets		-0.10 %	0.18 %	0.89 %
Provision for (recovery of) credit losses		-1.52 %	4.59 %	-1.36 %
Tax effect of adjustments		0.47 %	-1.90 %	0.08 %
Adjusted return on average equity (Non-GAAP)		3.58 %	4.13 %	7.97 %

 

Appendix C - Reconciliation of Prior Period Non-GAAP Financial Measures, Continued
		Three Months Ended
		(Dollars in thousands, except per share data)
		March 31, 2024	December 31, 2023	September 30, 2023
Adjusted Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP)		1.30 %	1.48 %	1.34 %
Adjusted noninterest expense to average assets (Non-GAAP)		1.30 %	1.48 %	1.34 %
Pre-tax Pre-Provision Earnings
Net income (loss) (GAAP)	$	1,515	(376)	2,473
Income taxes		372	176	622
Provision for (recovery of) credit losses		(469)	1,382	(411)
Pre-tax Pre-provision earnings (non-GAAP)	$	1,418	1,182	2,684
Pre-tax Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP)	$	0.34 %	-0.09 %	0.58 %
Income taxes		0.08 %	0.04 %	0.15 %
Provision for (recovery of) credit losses		-0.11 %	0.32 %	-0.10 %
Pre-tax Pre-provision return on average assets (non-GAAP)	$	0.31 %	0.27 %	0.63 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP)	$	19.46	19.33	18.78
Impact of AOCI per share		2.55	2.56	3.28
Book and tangible book value per share, excluding AOCI (non-GAAP)	$	22.01	21.89	22.06

 

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SOURCE Mountain Commerce Bancorp, Inc.

FAQ

What was Mountain Commerce Bancorp's net income for Q2 2024?

Mountain Commerce Bancorp reported a net income of $2.32 million for Q2 2024.

What is the dividend declared by Mountain Commerce Bancorp for Q2 2024?

Mountain Commerce Bancorp declared a quarterly cash dividend of $0.05 per share for Q2 2024.

How did Mountain Commerce Bancorp's net interest margin change in Q2 2024?

The net interest margin improved to 2.00% in Q2 2024 from 1.66% in Q1 2024.

What is Mountain Commerce Bancorp's earnings per share for Q2 2024?

Mountain Commerce Bancorp's earnings per share (EPS) for Q2 2024 was $0.37.

How has Mountain Commerce Bancorp's noninterest income changed?

Noninterest income increased to $1.5 million for the first six months of 2024, from $0.8 million in the same period of 2023.

When is the dividend payment date for Mountain Commerce Bancorp's Q2 2024 dividend?

The dividend is payable on September 2, 2024, to shareholders of record as of August 5, 2024.