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About Mountain Commerce Bancorp, Inc. (MCBI)
Mountain Commerce Bancorp, Inc. (OTCQX: MCBI) is the holding company for Mountain Commerce Bank, a state-chartered financial institution headquartered in Knoxville, Tennessee. With a history spanning over a century, the company has established itself as a key player in the Middle and East Tennessee banking landscape. Mountain Commerce Bank operates through a network of seven strategically located branches in Brentwood, Erwin, Johnson City (2), Bearden (Knoxville), West Knoxville, and Unicoi.
Core Business Model
Mountain Commerce Bank specializes in responsive relationship banking, catering to small- and medium-sized businesses, professionals, and affluent individuals. Unlike larger, transactional banks, MCB emphasizes personalized service, ensuring that customers have direct access to dedicated bankers who understand their unique financial needs. This approach allows the bank to build long-term relationships and foster customer loyalty.
Revenue Streams
The company derives its revenue primarily from net interest income, which accounts for approximately 90% of its earnings. This income is generated through a diverse portfolio of loans, including commercial and residential real estate loans, as well as consumer loans. Additionally, MCB earns non-interest income from services such as wealth management, financial planning, and mortgage products.
Market Position and Competitive Landscape
Operating in a competitive market, Mountain Commerce Bank differentiates itself through its focus on community-oriented banking. Its primary competitors include other regional community banks and larger financial institutions with a presence in Tennessee. MCB's strategic emphasis on core deposit growth, cost control, and asset quality positions it as a reliable and trustworthy institution within its market.
Operational Strengths
- Asset Quality: MCB maintains excellent asset quality metrics, with low levels of non-performing loans and charge-offs. This conservative approach to risk management ensures financial stability.
- Cost Efficiency: The company's non-interest expense ratio is among the lowest in its peer group, reflecting a strong commitment to operational efficiency.
- Liquidity: MCB has robust liquidity management practices, with available funding sources exceeding uninsured and uncollateralized deposits.
Branch Network and Expansion
In recent years, MCB has invested in expanding its branch network to enhance customer accessibility. The opening of a state-of-the-art financial center in Johnson City in 2024 exemplifies its commitment to growth and customer service. This facility serves as a hub for a wide range of banking products and services, including interactive teller machines and drive-thru options.
Regulatory Compliance and Governance
Mountain Commerce Bank adheres to stringent regulatory standards, ensuring it remains well-capitalized and compliant with state and federal requirements. Its tangible equity to tangible assets ratio and regulatory leverage ratio underscore its financial health and stability.
Conclusion
Mountain Commerce Bancorp, Inc. represents a strong, community-focused banking institution with a proven track record of financial stability, operational efficiency, and customer-centric service. Its strategic emphasis on relationship banking, asset quality, and cost control positions it as a trusted partner for businesses and individuals in Tennessee.
Mountain Commerce Bancorp, operating as MCBI, announced its Q1 2023 results, revealing a net income of $2,358K, down from $4,765K in Q1 2022. Diluted earnings per share also dropped to $0.38 from $0.77 year-over-year. The company declared a quarterly cash dividend of $0.16 per common share, marking its tenth consecutive dividend, payable on June 1, 2023. Despite a challenging interest rate environment that reduced the net interest margin to 2.55% from 3.68%, the bank maintained strong asset quality with non-performing assets at 0.04%. Total assets increased by $97.9 million to $1.698 billion. The Company added liquidity through borrowings and experienced minimal impacts from recent banking sector turmoil.
Mountain Commerce Bancorp (MCBI) reported its earnings for Q4 2022 with a net income of $3.8 million, down from $5.1 million in Q4 2021. The diluted earnings per share (EPS) decreased to $0.61 from $0.82 a year earlier. The Board declared a quarterly cash dividend of $0.16 per share, payable on March 1, 2023, to shareholders of record by February 6, 2023, marking the ninth consecutive quarterly dividend. Notable challenges included a decline in net interest margin from 3.66% to 3.15% due to increased funding costs and lower noninterest income, which fell to $0.3 million from $0.6 million year-over-year.
Mountain Commerce Bank (MCB) recently broke ground on its new Johnson City Financial Center, a two-story banking facility expected to open in mid-2024. The project is part of MCB's strategy to enhance its presence in Johnson City and includes advanced features like touch-screen technology stations and traditional teller services. Additionally, MCB is relocating its Operations Center and introducing a new Interactive Teller Machine (ITM) by Q2 2023 to improve customer service access. These developments reflect MCB's commitment to relationship banking in East Tennessee.
Mountain Commerce Bancorp (MCBI) reported strong earnings for Q3 2022, with net income of $5.3 million and a diluted earnings per share of $0.85. The Board declared a quarterly cash dividend of $0.16, marking a 3.2% increase from the prior quarter. The company also witnessed growth in net interest income, reaching $12.9 million, up 13.6% year-over-year. Non-performing loans decreased to 0.10% of total loans, reflecting improved asset quality. The bank's total assets grew to $1.567 billion, a 17.4% increase from last year, bolstered by strong demand for loans and deposits.
Mountain Commerce Bancorp (OTCQX: MCBI) announced a new senior revolving line of credit totaling $20 million, replacing an existing $10 million term loan due April 10, 2023. The new credit line matures on August 1, 2025 at a prime rate minus 0.50%, with interest-only payments due quarterly. A 0.10% fee incurs if the balance drops below $10 million. The company aims to utilize this credit to support its banking operations and general corporate purposes.
Mountain Commerce Bancorp (MCBI) announced strong quarterly earnings as of June 30, 2022, with a net income of $4.57 million, surpassing last year's $4.64 million. The diluted earnings per share rose to $0.73, up from $0.74. The Board declared a quarterly dividend of $0.155, a 3.3% increase over the previous dividend. Net interest income rose 17.8% to $12.3 million, driven by a growth in interest-earning assets. However, a fraudulent wire loss of $825,000 was reported, highlighting some financial risks. The company remains well-capitalized with improving asset quality metrics.
On May 9, 2022, Mountain Commerce Bancorp (OTCQX: MCBI) announced the appointment of Joshua R. Marsh as a senior vice president and senior relationship manager at its Brentwood, TN office. Marsh, with 18 years of financial services experience, previously worked at Pinnacle Financial Partners and BB&T, enhancing Mountain Commerce Bank's regional presence in Nashville. His expertise aims to strengthen the bank's commitment to 'Responsive, Relationship Banking' for clients in the area. Mountain Commerce Bank serves middle and east Tennessee through several branches.
Mountain Commerce Bancorp has reauthorized a stock repurchase program allowing it to buy back up to $5 million of its common shares through March 31, 2023. The buyback aims to manage capital levels and enhance shareholder returns, with flexibility in execution based on stock performance and market conditions. CEO Bill Edwards emphasized the strategy's potential to provide liquidity and long-term value to shareholders. However, the program can be modified or suspended at the Company's discretion, depending on various factors.
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