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

Rhea-AI Summary

Mountain Commerce Bancorp (MCBI) announced its Q3 2024 results and a quarterly dividend of $0.05 per share, payable on December 2, 2024, to shareholders of record on November 4, 2024. The company reported a net income of $2.99 million, up from $2.47 million in Q3 2023, and diluted earnings per share of $0.48, an increase from $0.40. The net interest margin improved to 2.08%, and the average yield on taxable loans increased to 5.89%. Non-performing assets remained low at 0.08% of total assets. Liquidity was strong with over $100 million in available funding sources. Noninterest expenses rose to $6.51 million, driven by increased occupancy and data processing costs. The tangible common equity to tangible assets ratio improved to 7.50%. The company anticipates continued improvement in net interest margin through 2025.

Positive

• Net income increased to $2.99 million from $2.47 million in Q3 2023.
• Diluted earnings per share rose to $0.48 from $0.40.
• Net interest margin improved to 2.08%.
• Average yield on taxable loans increased to 5.89%.
• Non-performing assets remained low at 0.08%.
• Liquidity strong with over $100 million in available funding sources.
• Tangible common equity to tangible assets ratio improved to 7.50%.

Negative

• Noninterest expenses increased to $6.51 million.
• Net interest income decreased by $2.8 million for the nine months ended September 30, 2024.

KNOXVILLE, Tenn., Oct. 21, 2024 /PRNewswire/ -- Mountain Commerce Bancorp, Inc. (the "Company") (OTCQX: MCBI), the holding company for century-old Mountain Commerce Bank (the "Bank"), today announced results and related data as of and for the three and nine months ended September 30, 2024.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.05 per common share, its sixteenth consecutive quarterly dividend.  The dividend is payable on December 2, 2024 to shareholders of record as of the close of business on November 4, 2024.

Management Commentary

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

"The third quarter of 2024 delivered further improvement in yields on interest-earning assets resulting in further increases in the Company's net interest margin, which improved from 2.00% in the second quarter of 2024 to 2.08% in the third quarter of 2024, and finished the quarter at 2.16% for the month of September 2024.  The Company anticipates continued improvement in its net interest margin for the remainder of 2024 and throughout 2025 as the result of improved loan yields and improved funding costs resulting from the repricing of certificates of deposit that have already repriced or will reprice during 2025.  We also believe we are well positioned for future changes in interest rates, whether these adjustments are up or down.  We are pleased that our average yield on taxable loans continues to increase, rising 12 bp to 5.89% in the third quarter of 2024 from 5.77% in the second quarter of 2024 and rising 45 bp from the same quarter a year ago.  Equally as important, our cost of funds remained steady at 3.70% in the second and third quarter of 2024 and declined 22bp from 3.92% in the first quarter of 2024.  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 over 8x.  Liquidity remained strong as of September 30, 2024 with available funding sources more than $100 million in excess of our level of uninsured and uncollateralized deposits. We remain very focused on controlling noninterest expenses which totaled 1.45% of average assets on an adjusted basis during the third quarter of 2024, which we believe is among the best in our peer group.  Careful management of our dividend and asset growth has allowed our tangible common equity to tangible assets ratio to rise to 7.50% from 7.06% at June 30, 2024, with the Bank's leverage ratio remaining steady at 9.29% at September 30, 2024 compared to 9.31% at June 30, 2024.  We continue to see excellent growth from our newest branches in Brentwood, West Knoxville and Johnson City and believe that these markets will continue to drive profitable growth for the Company.

While some of our markets were devastated by the recent storm and floods, we are thankful that our branches and employees sustained minimal damage.  Additionally, we have an immaterial amount of loans in Unicoi County where most of the storm damage occurred and do not expect significant loan losses."

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 nine months ended September 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, the impact of material one-time fraud losses or recoveries, and software conversion expenses.  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 September 30,
		(Dollars in thousands, except per share data)
		2024					2023
		GAAP		Adjusted (1)			GAAP		Adjusted (1)
Net income	$	2,992		2,203		$	2,473		2,405
Diluted earnings per share	$	0.48		0.35		$	0.40		0.39
Return on average assets (ROAA)		0.67 %		0.49 %			0.58 %		0.56 %
Return on average equity		9.17 %		6.75 %			8.19 %		7.97 %
Noninterest expense to average assets		1.46 %		1.45 %			1.34 %		1.34 %
Net interest margin (tax equivalent)		2.08 %		2.08 %			2.08 %		2.08 %
Pre-tax, pre-provision earnings (1)	$			2,450		$			2,684
Pre-tax, pre-provision ROAA (1)				0.55 %					0.00 %
(1) Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.

 

		For the Nine Months Ended September 30,
		(Dollars in thousands, except per share data)
		2024					2023
		GAAP		Adjusted (1)			GAAP		Adjusted (1)
Net income	$	6,830		5,273		$	7,290		7,663
Diluted earnings per share	$	1.09		0.84		$	1.17		1.23
Return on average assets (ROAA)		0.51 %		0.40 %			0.58 %		0.61 %
Return on average equity		7.22 %		5.58 %			8.08 %		8.49 %
Noninterest expense to average assets		1.37 %		1.36 %			1.42 %		1.43 %
Net interest margin (tax equivalent)		1.88 %		1.88 %			2.24 %		2.24 %
Pre-tax, pre-provision earnings (1)	$			6,315		$			8,536
Pre-tax, pre-provision ROAA (1)				0.47 %					0.68 %
(1) Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.

 

		For the Three Months Ended
		(Dollars in thousands, except per share data)
		2024						2023
		September 30		June 30		March 31		December 31		September 30
		GAAP		GAAP		GAAP		GAAP		GAAP
Net income (loss)	$	2,992		2,324	$	1,515	$	(376)	$	2,473
Diluted earnings (loss) per share	$	0.48		0.37	$	0.24	$	(0.06)	$	0.40
Return on average assets (ROAA)		0.67 %		0.53 %		0.34 %		-0.09 %		0.58 %
Return on average equity		9.17 %		7.46 %		4.92 %		-1.25 %		8.19 %
Noninterest expense to average assets		1.46 %		1.36 %		1.30 %		1.48 %		1.34 %
Net interest margin (tax equivalent)		2.08 %		2.00 %		1.66 %		1.98 %		2.08 %
		2024						2023
		September 30		June 30		March 31		December 31		September 30
		Adjusted (1)		Adjusted (2)		Adjusted (2)		Adjusted (2)		Adjusted (1)
Net income	$	2,203		1,966	$	1,104	$	1,244	$	2,405
Diluted earnings per share	$	0.35		0.31	$	0.18	$	0.20	$	0.39
Return on average assets (ROAA)		0.49 %		0.44 %		0.25 %		0.29 %		0.56 %
Return on average equity		6.75 %		6.31 %		3.59 %		4.13 %		7.97 %
Noninterest expense to average assets		1.45 %		1.36 %		1.30 %		1.48 %		1.34 %
Net interest margin (tax equivalent)		2.08 %		2.00 %		1.66 %		1.98 %		2.08 %
Pre-tax, pre-provision earnings	$	2,450		2,448	$	1,418	$	1,182	$	2,684
Pre-tax, pre-provision ROAA		0.55 %		0.55 %		0.32 %		0.27 %		0.63 %
(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.

 

			As of and for the			As of and for the			As of and for the
			3 Months Ended			3 Months Ended			12 Months Ended
			September 30,			June 30,			December 31,
			2024			2024			2023
			(Dollars in thousands, except share data)
Asset Quality
	Non-performing loans	$	1,381		$	1,381		$	1,607
	Real estate owned	$	-		$	-		$	-
	Non-performing assets	$	1,381		$	1,381		$	1,607
	Non-performing loans to total loans		0.09 %			0.09 %			0.11 %
	Non-performing assets to total assets		0.08 %			0.08 %			0.09 %
	Year-to-date net charge-offs (recoveries)	$	(258)		$	(243)		$	459
	Allowance for credit losses to non-performing loans		805.21 %			889.86 %			811.08 %
	Allowance for credit losses to total loans		0.76 %			0.83 %			0.90 %
Other Data
	Cash dividends declared	$	0.050		$	0.050		$	0.640
	Shares outstanding		6,371,324			6,373,998			6,352,725
	Book and tangible book value per share (2)	$	20.83		$	19.83		$	19.33
	Accumulated other comprehensive income (loss) (AOCI) per share		(2.02)			(2.57)			(2.56)
	Book and tangible book value per share, excluding AOCI (1) (2)		22.85		$	22.39		$	21.89
	Closing market price per common share	$	20.98		$	16.87		$	18.50
	Closing price to book value ratio		100.70 %			85.08 %			95.71 %
	Tangible common equity to tangible assets ratio		7.50 %			7.06 %			7.07 %
	Bank regulatory leverage ratio		9.29 %			9.31 %			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

Net Interest Income

Net interest income increased $0.3 million, or 3.1%, from $8.0 million for the three months ended September 30, 2023 to $8.3 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 $50.9 million, or 3.1%, from $1.622 billion to $1.673 billion, driven primarily by increases in loans.
• Average net interest-earning assets declined $25.4 million, or 7.8%, from $324.3 million to $298.9 million, due primarily to a $16.6 million decrease in noninterest bearing deposits and a $19.4 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 32 bp from 4.09% to 4.41%, while the average rate earned on interest-earning assets increased 35 bp from 5.35% to 5.70%, resulting in tax-equivalent net interest rate spread expanding by 3 bp to 1.29% from 1.26% and a consistent level of net interest margin of 2.08% in both periods.

Net interest income decreased $2.8 million, or 11.0%, from $25.3 million for the nine months ended September 30, 2023 to $22.5 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 $78.2 million, or 4.9%, from $1.594 billion to $1.672 billion, driven primarily by increases in loans.
• Average net interest-earning assets declined $47.7 million, or 14.4%, from $330.5 million to $282.8 million, due primarily to a $31.0 million decrease in noninterest bearing deposits and a $23.1 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 75 bp from 3.71% to 4.46%, while the average rate earned on interest-earning assets increased 40 bp from 5.18% to 5.58%, resulting in a decrease in tax-equivalent net interest rate spread from 1.47% to 1.13% and a decrease in tax-equivalent net interest margin from 2.24% to 1.88%.

Rate Sensitivity

The Company has the following assets subject to contractual repricing of interest rates as of September 30, 2024:

		As of
		September 30, 2024
Loans receivable	$	339,865
Investments available for sale		7,400
Interest rate swaps (notional)		225,000
	$	572,265

Interest Rate Swaps

The Company has the following interest rate swaps hedging loans receivable as of September 30, 2024:

				Estimated
			Fair	Annual			Receive	Pay
		Notional	Value	Earnings	Term	Maturity	Rate	Rate
Interest Rate Swap	$	150,000	(3,735)	405	3 Yrs	10/1/2026	4.96 %	4.69 %
Interest Rate Swap		75,000	(326)	938	2 Yrs	9/1/2026	4.96 %	3.71 %
	$	225,000	(4,061)	1,343

Recovery Of Credit Losses

		Three Months Ended September 30
		2024	2023
Recovery of credit losses	$	1,282	411
		Nine Months Ended September 30
		2024	2023
Recovery of credit losses	$	2,250	385

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 provisions for credit losses or reductions to our allowance for credit losses in recent periods.  Additionally, the Company began recognizing industry benchmarks for expected recoveries during the third quarter of 2024 which had the effect of reducing the allowance for credit losses.

Noninterest Income

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

		Three Months Ended September 30
(In thousands)		2024	2023	Change
Service charges and fees	$	389	369	20
Bank owned life insurance		56	47	9
Realized and unrealized gain (loss) on equity securities		57	(50)	107
Gain on sale of loans		12	7	5
Loss on sale of fixed assets		-	(269)	269
Wealth management		193	158	35
Swap fees		-	145	(145)
Other		3	-	3
Total noninterest income	$	710	407	303

Noninterest income increased to $0.7 million in the third quarter of 2024 from $0.4 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 $0.1 million from the third quarter of 2023 as a result of the sale of the majority of the Company's equity securities during the fourth quarter of 2023 which were causing the realized and unrealized losses.
• The Company incurred a $0.3 million loss on the sale of fixed assets from the sale of its former headquarters building during the third quarter of 2023.
• The Company recognized a $0.1 million decrease in swap fees from the third 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.

 

		Nine Months Ended September 30
(In thousands)		2024	2023	Change
Service charges and fees	$	1,142	1,137	5
Bank owned life insurance		166	139	27
Realized gain (loss) on sale of investment securities available for sale		69	(9)	78
Realized and unrealized gain (loss) on equity securities		30	(781)	811
Gain on sale of loans		39	21	18
Gain (loss) on sale of fixed assets		30	(200)	230
Wealth management		611	479	132
Swap fees		51	365	(314)
Other		26	37	(11)
Total noninterest income	$	2,164	1,188	976

Noninterest income increased to $2.2 million for the nine months ended September 30, 2024 from $1.2 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 $0.8 million from the nine months ended September 30, 2023 as a result of the sale of the majority of the Company's equity securities during the fourth quarter of 2023 which were causing the realized and unrealized losses.
• The Company incurred a $0.3 million loss on the sale of fixed assets from the sale of its former headquarters building during the third quarter of 2023.
• Wealth management fees improved by $0.1 million from the 2023 to the 2024 period as a result of an improvement in equity market conditions.
• The Company recognized a $0.3 million decrease in swap fees from the nine 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 September 30
(In thousands)		2024	2023	Change
Compensation and employee benefits	$	2,904	3,148	(244)
Occupancy		780	568	212
Furniture and equipment		320	166	154
Data processing		955	536	419
FDIC insurance		371	286	85
Office		214	197	17
Advertising		121	127	(6)
Professional fees		441	421	20
Other noninterest expense		406	277	129
Total noninterest expense	$	6,512	5,726	786

Noninterest expense increased $0.8 million, or 13.7%, from $5.7 million in the third quarter of 2023 to $6.5 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 $0.2 million, or 7.8%, due primarily to a decrease in incentive accruals and bonuses tied to 2024 performance and a decline in FTE employees from 115 to 108, offset, in part, by merit increases.
• Occupancy and furniture and equipment expenses increased by a combined $0.4 million, or 49.9%, due to the opening of the Johnson City financial center on July 1, 2024, offset by the absence of expenses previously recorded for formerly leased facilities.
• Data processing increased $0.4 million, or 78.1%, due primarily to a $0.3 million one-time payment to a vendor in connection with the termination of a software relationship.

 

		Nine Months Ended September 30
(In thousands)		2024	2023	Change
Compensation and employee benefits	$	8,902	9,807	(905)
Occupancy		2,011	1,740	271
Furniture and equipment		834	543	291
Data processing		2,009	1,597	412
FDIC insurance		1,119	874	245
Office		560	603	(43)
Advertising		323	392	(69)
Professional fees		1,591	1,325	266
Other noninterest expense		982	1,021	(39)
Total noninterest expense	$	18,331	17,902	429

Noninterest expense increased $0.4 million, or 2.4%, from $17.9 million in the first nine months of 2023 to $18.3 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 $0.9 million, or 9.2%, due primarily to a decrease in incentive accruals and bonuses tied to 2024 performance and a decline in FTE employees from 117 to 108, offset, in part, by merit increases.
• Occupancy and furniture and equipment expenses increased by a combined $0.6 million, or 24.6%, due to the opening of the West Knoxville financial center on October 1, 2023 and Johnson City financial center on July 1, 2024, offset by the absence of expenses previously recorded for formerly leased facilities.
• Data processing increased $0.4 million, or 25.8%, due primarily to a $0.3 million one-time payment to a vendor in connection with the termination of a software relationship.
• FDIC insurance increased $0.2 million, or 28.0%, due primarily to an increase in average assets and the quarterly multiplier used to determine assessments.
• Professional fees increased $0.3 million, or 20.0%, 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 September 30
2024	2023
19.83 %	20.10 %
Nine Months Ended September 30
2024	2023
20.26 %	18.28 %

The Company's tax rates for the three and nine months ended September 30, 2024 and 2023 reflect the impact of tax credits on certain loans which reduce the effective state tax rate to a nominal amount.  The Company's marginal tax rate of 26.14% is also favorably impacted by certain sources of non-taxable income including bank-owned life insurance (BOLI) and investments in tax-free municipal securities. 

Balance Sheet

Total assets increased 33.3 million, or 1.9%, from $1.738 billion at December 31, 2023 to $1.771 billion at September 30, 2024.  The change was primarily driven by the following factors:

• Cash and cash equivalents increased $17.0 million, or 24.7%, due to a decrease in new loan volumes and an increased focus on core deposit growth.
• Available for sale investment security balances decreased $12.4 million, or 9.5%, 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 September 30, 2024 and December 31, 2023:

		September 30, 2024			December 31, 2023
		Estimated	Net		Estimated	Net
		Fair	Unrealized		Fair	Unrealized
		Value	Gain (Loss)		Value	Gain (Loss)
(in thousands)
Agency MBS / CMO	$	12,403	(1,566)		12,870	(1,853)
Agency multifamily (non-guaranteed)		7,237	(618)		8,944	(897)
Agency floating rate		6,998	15		16,919	(41)
Business Development Companies		3,500	(260)		3,420	(345)
Corporate		22,595	(1,867)		23,801	(2,673)
Municipal		27,443	(5,728)		26,465	(6,790)
Non-agency MBS / CMO		37,691	(7,428)		37,805	(9,489)
	$	117,867	(17,452)		130,224	(22,088)

Non-agency MBS/CMO have an average credit-enhancement of approximately 32% as of September 30, 2024.  Municipal securities are generally rated AA or higher. 

• The Company did not have any securities classified as held-to-maturity as of September 30, 2024 and December 31, 2023.
• Loans receivable increased $19.6 million, or 1.4%, from $1.453 billion at December 31, 2023 to $1.472 billion at September 30, 2024. The Company is actively managing its exposure to commercial real estate and has a regulatory commercial real estate concentration of 312% of total risk-based capital as of September 30, 2024, down from 322% as of June 30, 2024 and 318% at December 31, 2023. The following summarizes changes in loan balances over the last five quarters:

 

		September 30,		June 30,		March 31,		December 31,		September 30,
		2024		2024		2024		2023		2023
(in thousands)
Residential construction	$	18,957		18,859		29,716		33,881		39,824
Other construction		48,991		79,309		84,967		89,388		82,288
Farmland		9,462		9,539		9,684		8,614		8,699
Home equity		53,407		53,670		48,059		48,118		45,839
Residential		466,107		459,572		449,894		452,957		446,215
Multi-family		115,069		115,530		115,065		109,859		112,786
Owner-occupied commercial		260,981		244,344		239,010		234,289		229,879
Non-owner occupied commercial		367,918		356,914		335,634		329,204		317,651
Commercial & industrial		122,096		124,712		134,397		137,076		142,685
PPP Program		101		119		137		154		191
Consumer		9,409		9,562		8,779		9,331		9,572
	$	1,472,498		1,472,130		1,455,342		1,452,871		1,435,629

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

		Loan		% of Total
		Balance		Loans
Hotels	$	72,289		4.9 %
Retail		71,249		4.8 %
Office		67,868		4.6 %
Marina		31,217		2.1 %
Campground		24,849		1.7 %
Warehouse		22,722		1.5 %
Mini-storage		22,359		1.5 %
Vacation Rentals		18,081		1.2 %
Car Wash		16,829		1.1 %
Entertainment		9,346		0.6 %
Restaurant		4,876		0.3 %
Other		6,233		0.4 %
	$	367,918		25.0 %

 

• Premises and equipment increased $9.3 million, or 17.8%, from December 31, 2023 to September 30 30, 2024 primarily due to costs incurred for the construction of the 23,000 sf Johnson City combined financial/corporate center which opened for business on July 1, 2024.
• Total deposits increased $79.7 million, or 5.4%, from $1.472 billion at December 31, 2023 to $1.552 billion at September 30, 2024. An increase in non-interest bearing transaction and NOW and money market accounts during the first nine 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:

		September 30,		June 30,		March 31,		December 31,		September 30,
		2024		2024		2024		2023		2023
(in thousands)
Non-interest bearing transaction	$	268,563		285,446		247,262		243,750		270,299
NOW and money market		437,579		415,772		421,139		271,208		250,920
Savings		207,466		227,282		266,168		248,576		258,110
Retail time deposits		382,386		378,944		381,110		392,638		382,708
		1,295,994		1,307,444		1,315,679		1,156,172		1,162,037
Wholesale time deposits		255,739		247,329		272,932		315,862		246,716
Total deposits	$	1,551,733		1,554,773		1,588,611		1,472,034		1,408,753

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

					Original
Type		Principal	Rate	Maturity	Term
(in thousands)
Brokered CD		46,673	5.25 %	May, 2025	1 Yr
Brokered CD		555	4.75 %	Dec, 2025	2 Yr
Brokered CD		39,721	4.95 %	Mar, 2026	2 Yr
Brokered CD		10,579	4.90 %	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		65,459	5.21 %	Through Mar 30, 2027	2.5 Yrs or Less
	$	255,739	4.95 %

 

• FHLB borrowings decreased $55.5 million from December 31, 2023 to September 30, 2024, and consisted of the following at September 30, 2024:

 

	Amounts	Original	Current	Maturity
	(000's)	Term	Rate	Date
$	10,000	1 month	5.23 %	10/08/24
	20,000	1 month	4.82 %	10/23/24
	15,000	1 Year	4.53 %	08/26/25
$	45,000		4.81 %

 

• Total equity increased $10.0 million, or 8.1%, from $122.8 million at December 31, 2023 to $132.7 million at September 30, 2024. The following summarizes the components of the change in total shareholders' equity and tangible book value per share for the nine months ended September 30, 2024:

 

		Total	Tangible
		Shareholders'	Book Value
		Equity	Per Share
(In thousands)
December 31, 2023	$	122,787	19.33
Net income		6,830	1.09
Dividends paid		(1,148)	(0.18)
Stock compensation		915	0.14
Share repurchases from stock compensation		(30)	(0.00)
Change in fair value of investments available for sale		3,389	0.53
September 30, 2024	$	132,743	20.83	*
* Sum of the individual components may not equal the total

 

The Company's tangible equity to tangible assets ratio increased to 7.50% at September 30, 2024 from 7.07% at December 31, 2023, 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 September 30, 2024, with the Bank maintaining a regulatory leverage ratio of 9.29% at September 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 pursuant to such plan during the nine months ended September 30, 2024.

Asset Quality

Non-performing loans to total loans decreased to 0.09% at September 30, 2024 from 0.11% at December 31, 2023.  Non-performing assets to total assets decreased to 0.08% at September 30, 2024 from 0.09% at December 31, 2023.  Other real estate owned balances remained at $0 at both September 30, 2024 and December 31, 2023.  Net recoveries of $0.3 million were recognized during the nine months ended September 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 0.76% at September 30, 2024 from 0.90% at December 31, 2023 due, in part, to the payoff in full of a $0.7 million loan which was fully-reserved as of December 31, 2023, an improvement in modeled economic projections, and inclusion of expected recoveries beginning in the third quarter of 2024.  Coverage of non-performing loans by the allowance for credit losses was more than 8 to 1 at September 30, 2024 and December 31, 2023.

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) 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 decline;  (viii) significant downturns in the business of one or more large customers; (ix) effectiveness of our asset management activities in improving, resolving or liquidating lower quality assets; (x) our inability to maintain the historical, long-term growth rate of our loan portfolio; (xi) risks of expansion into new geographic or product markets; (xii) the possibility of increased compliance and operational costs as a result of increased regulatory oversight; (xiii) our inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xiv) the ineffectiveness of our hedging strategies, or the unexpected counterparty failure or failure of the underlying hedges; (xv) 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; (xvi) changes in capital levels and loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xvii) inadequate allowance for credit losses; (xviii) results of regulatory examinations; (xix) 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; (xx) loss of key personnel; and (xxi) 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					Nine Months Ended
			September 30,	June 30,	September 30,			September 30,	September 30,
			2024	2024	2023			2024	2023
Interest income
	Loans	$	21,131	20,542	19,015		$	61,518	52,936
	Investment securities - taxable		1,100	1,112	1,274			3,534	3,886
	Investment securities - tax exempt		29	29	39			88	117
	Dividends and other		1,224	1,133	1,059			3,684	3,398
			23,484	22,816	21,387			68,824	60,337
Interest expense
	Savings		1,550	1,859	1,760			5,488	4,902
	Interest bearing transaction accounts		4,178	4,175	2,487			12,001	7,512
	Time certificates of deposit of $250,000 or more		4,319	4,302	4,351			13,480	10,825
	Other time deposits		3,710	3,569	2,615			10,931	5,617
	Total deposits		13,757	13,905	11,213			41,900	28,856
	Senior debt		347	405	405			1,157	1,042
	Subordinated debt		164	164	163			493	493
	FHLB advances		964	549	1,603			2,792	4,696
			15,232	15,023	13,384			46,342	35,087
Net interest income			8,252	7,793	8,003			22,482	25,250
Recovery of credit losses			(1,282)	(499)	(411)			(2,250)	(385)
Net interest income after recovery of credit losses			9,534	8,292	8,414			24,732	25,635
Noninterest income
	Service charges and fees		389	371	369			1,142	1,137
	Bank owned life insurance		56	55	47			166	139
	Realized gain (loss) on sale of investment securities available for sale		-	(8)	-			69	(9)
	Realized and unrealized gain (loss) on equity securities		57	(7)	(50)			30	(781)
	Gain on sale of loans		12	29	7			39	21
	Gain (loss) on sale of fixed assets		-	-	(269)			30	(200)
	Wealth management		193	217	158			611	479
	Swap fees		-	-	145			51	365
	Other		3	15	-			26	37
			710	672	407			2,164	1,188
Noninterest expense
	Compensation and employee benefits		2,904	3,005	3,148			8,902	9,807
	Occupancy		780	643	568			2,011	1,740
	Furniture and equipment		320	269	166			834	543
	Data processing		955	608	536			2,009	1,597
	FDIC insurance		371	364	286			1,119	874
	Office		214	180	197			560	603
	Advertising		121	102	127			323	392
	Professional fees		441	551	421			1,591	1,325
	Other noninterest expense		406	295	277			982	1,021
			6,512	6,017	5,726			18,331	17,902
Income before income taxes			3,732	2,947	3,095			8,565	8,921
Income taxes			740	623	622			1,735	1,631
Net income		$	2,992	2,324	2,473		$	6,830	7,290
Earnings  per common share:
	Basic	$	0.48	0.37	0.40		$	1.09	1.17
	Diluted	$	0.48	0.37	0.40		$	1.09	1.17
Weighted average common shares outstanding:
	Basic		6,271,047	6,264,564	6,240,403			6,262,499	6,231,237
	Diluted		6,279,212	6,270,308	6,243,630			6,271,068	6,240,119

 

Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
			September 30,			June 30,			December 31,
			2024			2024			2023
Assets
Cash and due from banks		$	13,796		$	19,122		$	21,193
Interest-earning deposits in other banks			72,112			95,238			47,688
	Cash and cash equivalents		85,908			114,360			68,881
Investments available for sale			117,867			117,048			130,224
Equity securities			2,727			1,884			1,882
Premises and equipment held for sale			3,762			3,762			3,762
Loans receivable			1,472,498			1,472,130			1,452,871
Allowance for credit losses			(11,120)			(12,289)			(13,034)
	Net loans receivable		1,461,378			1,459,841			1,439,837
Premises and equipment, net			61,715			58,676			52,397
Accrued interest receivable			5,622			5,707			5,479
Bank owned life insurance			10,134			10,078			9,968
Restricted stock			4,563			4,563			8,145
Deferred tax assets, net			7,200			8,562			9,101
Other assets			10,156			5,940			8,094
Total assets		$	1,771,032		$	1,790,421		$	1,737,770
Liabilities and Shareholders' Equity
Noninterest-bearing		$	268,563		$	285,446		$	243,750
Interest-bearing			1,027,431			1,021,998			912,422
Wholesale			255,739			247,329			315,862
	Total deposits		1,551,733			1,554,773			1,472,034
FHLB borrowings			45,000			70,000			100,000
Senior debt, net			16,000			18,000			20,000
Subordinated debt, net			9,957			9,946			9,917
Accrued interest payable			3,482			3,142			2,258
Post-employment liabilities			3,319			3,350			3,414
Other liabilities			8,798			4,817			7,360
Total liabilities			1,638,289			1,664,028			1,614,983
Total shareholders' equity			132,743			126,393			122,787
Total liabilities and shareholders' equity		$	1,771,032		$	1,790,421		$	1,737,770

 

Appendix A - Reconciliation of Non-GAAP Financial Measures
		Three Months Ended			Nine Months Ended
		September 30			September 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)	$	2,992	2,473	$	6,830	7,290
Realized (gain) loss on sale of investment securities available for sale		-	-		(69)	9
Realized and unrealized (gain) loss on equity securities		(57)	50		(30)	781
(Gain) loss on sale of fixed assets		-	269		(30)	200
Recovery of credit losses		(1,282)	(411)		(2,250)	(385)
Recovery of fraud loss		-	-		-	(100)
Software conversion expense		271	-		271	-
Tax effect of adjustments		279	24		551	(132)
Adjusted net income (Non-GAAP)	$	2,203	2,405	$	5,273	7,663
Adjusted Diluted Earnings Per Share
Diluted earnings per share (GAAP)	$	0.48	0.40	$	1.09	1.17
Realized (gain) loss on sale of investment securities available for sale		-	-		(0.01)	0.00
Realized and unrealized (gain) loss on equity securities		(0.01)	0.01		(0.00)	0.13
(Gain) loss on sale of fixed assets		-	0.04		(0.00)	0.03
Recovery of credit losses		(0.20)	(0.07)		(0.36)	(0.06)
Recovery of fraud loss		-	-		-	(0.02)
Software conversion expense		0.04	-		0.04	-
Tax effect of adjustments		0.04	0.00		0.09	(0.02)
Adjusted diluted earnings per share (Non-GAAP)	$	0.35	0.39	$	0.84	1.23
Adjusted Return on Average Assets
Return on average assets (GAAP)		0.67 %	0.58 %		0.51 %	0.58 %
Realized (gain) loss on sale of investment securities available for sale		0.00 %	0.00 %		-0.01 %	0.00 %
Realized and unrealized (gain) loss on equity securities		-0.01 %	0.01 %		0.00 %	0.06 %
(Gain) loss on sale of fixed assets		0.00 %	0.06 %		0.00 %	0.02 %
Recovery of credit losses		-0.29 %	-0.10 %		-0.17 %	-0.03 %
Recovery of fraud loss		0.00 %	0.00 %		0.00 %	-0.01 %
Software conversion expense		0.06 %	0.00 %		0.02 %	0.00 %
Tax effect of adjustments		0.06 %	0.01 %		0.04 %	-0.01 %
Adjusted return on average assets (Non-GAAP)		0.49 %	0.56 %		0.40 %	0.61 %
Adjusted Return on Average Equity
Return on average equity (GAAP)		9.17 %	8.19 %		7.22 %	8.08 %
Realized (gain) loss on sale of investment securities available for sale		0.00 %	0.00 %		-0.07 %	0.01 %
Realized and unrealized (gain) loss on equity securities		-0.17 %	0.17 %		-0.03 %	0.87 %
(Gain) loss on sale of fixed assets		0.00 %	0.89 %		-0.03 %	0.22 %
Recovery of credit losses		-3.93 %	-1.36 %		-2.38 %	-0.43 %
Recovery of fraud loss		0.00 %	0.00 %		0.00 %	-0.11 %
Software conversion expense		0.83 %	0.00 %		0.29 %	0.00 %
Tax effect of adjustments		0.86 %	0.08 %		0.58 %	-0.15 %
Adjusted return on average equity (Non-GAAP)		6.75 %	7.97 %		5.58 %	8.49 %

 

Appendix A - Reconciliation of Non-GAAP Financial Measures, Continued
		Three Months Ended			Nine Months Ended
		September 30			September 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)		1.46 %	1.34 %		1.37 %	1.42 %
Software conversion expense		-0.02 %	0.00 %		-0.02 %	0.01 %
Adjusted noninterest expense to average assets (Non-GAAP)		1.45 %	1.34 %		1.36 %	1.43 %
Pre-tax, Pre-Provision Earnings
Net income (GAAP)	$	2,992	2,473	$	6,830	7,290
Income taxes		740	622		1,735	1,631
Recovery of credit losses		(1,282)	(411)		(2,250)	(385)
Pre-tax, pre-provision earnings (non-GAAP)	$	2,450	2,684	$	6,315	8,536
Pre-tax, Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP)		0.67 %	0.58 %	$	0.51 %	0.58 %
Income taxes		0.17 %	0.15 %		0.13 %	0.13 %
Recovery of credit losses		-0.29 %	-0.10 %		-0.17 %	-0.03 %
Pre-tax, pre-provision return on average assets (non-GAAP)		0.55 %	0.63 %	$	0.47 %	0.68 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP)	$	20.83	18.78
Impact of AOCI per share		2.02	3.28
Book and tangible book value per share, excluding AOCI (non-GAAP)	$	22.85	22.06

 

Appendix B - Tax Equivalent Net Interest Margin Analysis
			For the Three Months Ended September 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	$	1,427,693	21,131	5.89 %		$	1,386,818	19,015	5.44 %
	Loans - imputed tax credits (2)		28,814	489	6.75 %			28,935	492	6.75 %
	Investments - taxable		115,964	1,100	3.77 %			131,461	1,274	3.84 %
	Investments - tax exempt (1)		4,244	37	3.44 %			5,301	49	3.69 %
	Interest earning deposits		90,779	1,093	4.79 %			60,571	720	4.72 %
	Other investments, at cost		5,429	131	9.60 %			8,982	339	14.97 %
	Total interest-earning assets		1,672,923	23,981	5.70 %			1,622,068	21,889	5.35 %
	Noninterest earning assets		107,583					88,162
	Total assets	$	1,780,506				$	1,710,230
Interest-bearing liabilities:
	Interest-bearing transaction accounts	$	137,038	1,370	3.98 %		$	65,837	607	3.66 %
	Savings accounts		218,956	1,550	2.82 %			259,887	1,760	2.69 %
	Money market accounts		291,614	2,808	3.83 %			186,249	1,880	4.00 %
	Retail time deposits		382,547	4,348	4.52 %			371,000	3,994	4.27 %
	Wholesale time deposits		252,313	3,681	5.80 %			236,112	2,972	4.99 %
	Total interest bearing deposits		1,282,468	13,757	4.27 %			1,119,085	11,213	3.98 %
	Senior debt		17,000	347	8.12 %			20,000	405	8.03 %
	Subordinated debt		9,953	164	6.56 %			9,898	163	6.53 %
	Federal Home Loan Bank advances		64,565	964	5.94 %			148,739	1,603	4.28 %
	Total interest-bearing liabilities		1,373,986	15,232	4.41 %			1,297,722	13,384	4.09 %
	Noninterest-bearing deposits		264,015					280,651
	Other noninterest-bearing liabilities		12,039					11,137
	Total liabilities		1,650,040					1,589,510
	Total shareholders' equity		130,466					120,720
	Total liabilities and shareholders' equity	$	1,780,506				$	1,710,230
	Tax-equivalent net interest income			8,749					8,505
	Net interest-earning assets (3)	$	298,937				$	324,346
	Average interest-earning assets to interest-
	bearing liabilities		122 %					125 %
	Tax-equivalent net interest rate spread (4)		1.29 %					1.26 %
	Tax equivalent net interest margin (5)		2.08 %					2.08 %
	(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 Nine Months Ended September 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	$	1,423,285	61,518	5.77 %		$	1,340,148	52,936	5.28 %
	Loans - imputed tax credits (2)		29,104	1,035	4.75 %			27,425	1,384	6.75 %
	Investments - taxable		119,110	3,534	3.96 %			135,649	3,886	3.83 %
	Investments - tax exempt (1)		4,222	111	3.52 %			5,380	148	3.68 %
	Interest earning deposits		90,268	3,184	4.71 %			74,264	2,650	4.77 %
	Other investments, at cost		6,118	499	10.89 %			11,077	749	9.04 %
	Total interest-earning assets		1,672,107	69,881	5.58 %			1,593,943	61,753	5.18 %
	Noninterest earning assets		105,609					82,531
	Total assets	$	1,777,716				$	1,676,474
Interest-bearing liabilities:
	Interest-bearing transaction accounts	$	130,577	3,815	3.90 %		$	88,179	2,351	3.56 %
	Savings accounts		239,298	5,487	3.06 %			289,039	4,902	2.27 %
	Money market accounts		269,662	8,186	4.05 %			193,337	5,160	3.57 %
	Retail time deposits		385,760	12,868	4.46 %			303,640	8,984	3.96 %
	Wholesale time deposits		264,603	11,544	5.83 %			212,432	7,459	4.69 %
	Total interest bearing deposits		1,289,900	41,900	4.34 %			1,086,627	28,856	3.55 %
	Senior debt		18,667	1,157	8.28 %			17,000	1,042	8.20 %
	Subordinated debt		9,941	493	6.62 %			9,885	493	6.67 %
	Federal Home Loan Bank advances		70,803	2,792	5.27 %			149,908	4,696	4.19 %
	Total interest-bearing liabilities		1,389,311	46,342	4.46 %			1,263,420	35,087	3.71 %
	Noninterest-bearing deposits		250,811					281,830
	Other noninterest-bearing liabilities		11,527					10,902
	Total liabilities		1,651,649					1,556,152
	Total shareholders' equity		126,067					120,322
	Total liabilities and shareholders' equity	$	1,777,716				$	1,676,474
	Tax-equivalent net interest income			23,539					26,666
	Net interest-earning assets (3)	$	282,796				$	330,523
	Average interest-earning assets to interest-
	bearing liabilities		120 %					126 %
	Tax-equivalent net interest rate spread (4)		1.13 %					1.47 %
	Tax equivalent net interest margin (5)		1.88 %					2.24 %
	(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)
		June 30, 2024	March 31, 2024	December 31, 2023
Adjusted Net Income
Net income (loss) (GAAP)	$	2,324	1,515	(376)
Realized (gain) loss on sale of investment securities available for sale		8	(77)	666
Realized and unrealized (gain) loss on equity securities		7	20	90
(Gain) loss on sale of fixed assets		-	(30)	55
Provision for (recovery of) credit losses		(499)	(469)	1,382
Tax effect of adjustments		126	145	(573)
Adjusted net income (Non-GAAP)	$	1,966	1,104	1,244
Adjusted Diluted Earnings Per Share
Diluted earnings (loss) per share (GAAP)	$	0.37	0.24	(0.06)
Realized (gain) loss on sale of investment securities available for sale		-	(0.01)	0.11
Realized and unrealized (gain) loss on equity securities		-	-	0.01
(Gain) loss on sale of fixed assets		-	-	0.01
Provision for (recovery of) credit losses		(0.08)	(0.07)	0.22
Tax effect of adjustments		0.02	0.02	(0.09)
Adjusted diluted earnings per share (Non-GAAP)	$	0.31	0.18	0.20
Adjusted Return on Average Assets
Return on average assets (GAAP)		0.53 %	0.34 %	-0.09 %
Realized (gain) loss on sale of investment securities available for sale		0.00 %	-0.02 %	0.15 %
Realized and unrealized (gain) loss on equity securities		0.00 %	0.00 %	0.02 %
(Gain) loss on sale of fixed assets		0.00 %	-0.01 %	0.01 %
Provision for (recovery of) credit losses		-0.11 %	-0.11 %	0.32 %
Tax effect of adjustments		0.03 %	0.03 %	-0.13 %
Adjusted return on average assets (Non-GAAP)		0.44 %	0.25 %	0.29 %
Adjusted Return on Average Equity
Return on average equity (GAAP)		7.46 %	4.92 %	-1.25 %
Realized (gain) loss on sale of investment securities available for sale		0.03 %	-0.25 %	2.21 %
Realized and unrealized (gain) loss on equity securities		0.02 %	0.06 %	0.30 %
(Gain) loss on sale of fixed assets		0.00 %	-0.10 %	0.18 %
Provision for (recovery of) credit losses		-1.60 %	-1.52 %	4.59 %
Tax effect of adjustments		0.41 %	0.47 %	-1.90 %
Adjusted return on average equity (Non-GAAP)		6.31 %	3.58 %	4.13 %

 

Appendix C - Reconciliation of Prior Period Non-GAAP Financial Measures, Continued
		Three Months Ended
		(Dollars in thousands, except per share data)
		June 30, 2024	March 31, 2024	December 31, 2023
Adjusted Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP)		1.36 %	1.30 %	1.48 %
Adjusted noninterest expense to average assets (Non-GAAP)		1.36 %	1.30 %	1.48 %
Pre-tax Pre-Provision Earnings
Net income (loss) (GAAP)	$	2,324	1,515	(376)
Income taxes		623	372	176
Provision for (recovery of) credit losses		(499)	(469)	1,382
Pre-tax Pre-provision earnings (non-GAAP)	$	2,448	1,418	1,182
Pre-tax Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP)	$	0.53 %	0.34 %	-0.09 %
Income taxes		0.14 %	0.08 %	0.04 %
Provision for (recovery of) credit losses		-0.11 %	-0.11 %	0.32 %
Pre-tax Pre-provision return on average assets (non-GAAP)	$	0.55 %	0.31 %	0.27 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP)	$	19.83	19.46	19.33
Impact of AOCI per share		2.57	2.55	2.56
Book and tangible book value per share, excluding AOCI (non-GAAP)	$	22.39	22.01	21.89

 

 

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SOURCE Mountain Commerce Bancorp, Inc.

FAQ

What were Mountain Commerce Bancorp's Q3 2024 earnings?

Mountain Commerce Bancorp reported a net income of $2.99 million and diluted earnings per share of $0.48 for Q3 2024.

What is the dividend announced by Mountain Commerce Bancorp for Q3 2024?

Mountain Commerce Bancorp announced a quarterly cash dividend of $0.05 per share, payable on December 2, 2024, to shareholders of record on November 4, 2024.

How did Mountain Commerce Bancorp's net interest margin perform in Q3 2024?

The net interest margin improved to 2.08% in Q3 2024.

What is the status of Mountain Commerce Bancorp's non-performing assets?

Non-performing assets remained low at 0.08% of total assets as of September 30, 2024.

How did Mountain Commerce Bancorp's noninterest expenses change in Q3 2024?

Noninterest expenses increased to $6.51 million in Q3 2024, driven by higher occupancy and data processing costs.