Mountain Commerce Bancorp, Inc. Announces Fourth Quarter 2025 Results and Quarterly Cash Dividend

Rhea-AI Summary

Mountain Commerce Bancorp (OTCQX: MCBI) reported results for the three and twelve months ended December 31, 2025 and declared a quarterly cash dividend of $0.07 per share payable March 2, 2026 (record date Feb 2, 2026).

Key 12-month metrics: GAAP net income $11.187M, diluted EPS $1.78, adjusted ROAA 0.67%, adjusted ROAE 8.60%, and tax-equivalent net interest margin 2.44%. Tangible book value per share rose to $22.80 (10.15% YoY). The company recorded a $0.6M provision for credit losses in Q4 and noted higher Q4 noninterest expense tied to merger-related items and property repairs.

The company entered an all-stock merger agreement with Home Bancshares (exchange ratio 0.85 Home shares per MCBI share), expected to close early in H1 2026, subject to approvals.

Positive

• GAAP net income +25.3% YoY to $11.187M for twelve months ended 12/31/2025
• Diluted EPS improved to $1.78 from $1.42 year-over-year
• Tax-equivalent net interest margin expanded 43 bps to 2.44% YoY
• Tangible book value per share +10.15% to $22.80
• Declared quarterly cash dividend of $0.07 (21st consecutive quarter)

Negative

• Non-performing assets increased to $9.161M (0.52% of assets) as of 12/31/2025 from $3.955M (0.23%) at 12/31/2024
• Provision for credit losses of $0.6M recognized in Q4 2025
• Higher Q4 noninterest expense due to merger-related costs and non-recurring property repairs

News Market Reaction

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Data tracked by StockTitan Argus on the day of publication.

KNOXVILLE, Tenn., Jan. 20, 2026 /PRNewswire/ -- Mountain Commerce Bancorp, Inc. (the "Company") (OTCQX: MCBI), the holding company for century-old Mountain Commerce Bank (the "Bank"), today announced financial results and related data as of and for the three and twelve months ended December 31, 2025.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.07 per common share, its twenty-first consecutive quarterly dividend.  The dividend is payable on March 2, 2026 to shareholders of record as of the close of business on February 2, 2026. 

Management Commentary

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

"We are pleased to see our earnings continue to improve with adjusted return on average assets and equity rising to 0.67% and 8.60%, respectively, for the twelve months ended 2025, compared to 0.45% and 6.22%, respectively, for the twelve months ended 2024.  We continued to see further improvements in our net interest margin, which improved from 2.01% for the twelve months ended 2024 to 2.44% for the twelve months ended 2025.    

While we have experienced an increase in non-performing assets in 2025, we believe these assets are well collateralized and do not represent a risk of material loss to the Company.  Our adjusted noninterest expense to average assets was 1.52% for the twelve months ended 2025, which continues to be nearly half that of similarly-sized peer banks based on recent call report data.  We saw an increase in non-interest expense in the fourth quarter of 2025 primarily attributable to merger-related expenses associated with our proposed merger with Home Bancshares, as well as certain non-recurring repairs and maintenance performed on buildings and properties owned by the Company.  Additionally, the Company recognized a provision for credit losses of $0.6 million in the fourth quarter of 2025.  Careful management of our dividend and asset growth has allowed our tangible common equity to tangible assets ratio to rise to 8.22% at December 31, 2025 from 7.58% at December 31, 2024, with the Bank's leverage ratio finishing the fourth quarter of 2025 at 9.17%.  Additionally, tangible book value per share rose to $22.80 as of December 31, 2025 from $20.70 as of December 31, 2024, marking a 10.15% increase.

In summary, we will seek to continue to carefully control our risk and growth while targeting net interest margin expansion and earnings growth in 2026.  Our modeling and forecasting suggest continued year-over-year improvement in earnings, assuming the current macro-economic conditions do not deteriorate."

Proposed Merger Update

On December 8, 2025, the Company and Home Bancshares announced that they had entered into a definitive agreement providing for the acquisition of the Company by Home Bancshares in an all-stock merger transaction with Home Bancshares as the surviving entity.  Under the terms of the merger agreement, the Company's shareholders will receive 0.85 shares of Home Bancshares' common stock for each share of the Company's common stock owned by the shareholder at the effective time of the merger. 

Home Bancshares and its subsidiary bank, Centennial Bank, have filed all required bank regulatory applications related to the proposed merger and Home Bancshares has filed a registration statement with the Securities and Exchange Commission related to the proposed transaction, which has not yet been declared effective by the SEC. 

The Company's proposed merger with Home Bancshares is expected to close early in the first half of 2026, subject to the satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the Company's shareholders.

Regarding the proposed merger, Mr. Edwards commented, "I remain excited for our proposed combination with Home Bancshares and am pleased with the progress we and Home have made in filing the required regulatory applications and our respective initial efforts to develop integration plans that I believe will result in a smooth transaction for our customers and communities.  I've also enjoyed talking to our customers about the potential benefits that they will enjoy as a result of our combination with Home and believe our team is thrilled with the idea of combining with a bank of Centennial's caliber and operating philosophy.  I also continue to believe that our combination with Home will reward our shareholders, many of whom have been owners of our company since its founding, with, among other benefits, an increased dividend and additional liquidity for their shares."  

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 twelve months ended December 31, 2025.  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 and other real estate owned, corporate and strategic planning expenses, including merger-related expenses, the provision for or recovery of credit losses, and net loan charge-offs 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 December 31
		(Dollars in thousands, except per share data)
		2025					2024
		GAAP		Adjusted (1)			GAAP		Adjusted (1)
Net income	$	2,304		2,915		$	2,092		2,481
Diluted earnings per share	$	0.37		0.46		$	0.33		0.39
Return on average assets (ROAA)		0.52 %		0.65 %			0.47 %		0.56 %
Return on average equity		6.34 %		8.02 %			6.32 %		7.49 %
Noninterest expense to average assets		1.67 %		1.61 %			1.40 %		1.40 %
Net interest margin (tax equivalent)		2.54 %		2.54 %			2.29 %		2.29 %
Pre-tax, pre-provision earnings (1)	$			3,556		$			3,441
Pre-tax, pre-provision ROAA (1)				0.80 %					0.78 %
(1) Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.
		For the Twelve Months Ended December 31
		(Dollars in thousands, except per share data)
		2025					2024
		GAAP		Adjusted (1)			GAAP		Adjusted (1)
Net income	$	11,187		12,025		$	8,923		7,946
Diluted earnings per share	$	1.78		1.91		$	1.42		1.27
Return on average assets (ROAA)		0.63 %		0.67 %			0.50 %		0.45 %
Return on average equity		8.00 %		8.60 %			6.99 %		6.22 %
Noninterest expense to average assets		1.54 %		1.52 %			1.38 %		1.37 %
Net interest margin (tax equivalent)		2.44 %		2.44 %			2.01 %		2.01 %
Pre-tax, pre-provision earnings (1)	$			14,771		$			9,756
Pre-tax, pre-provision ROAA (1)				0.83 %					0.55 %
(1) Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.

 

Five Quarter Trends

		For the Three Months Ended
		(Dollars in thousands, except per share data)
		2025					2024
		December 31	September 30	June 30	March 31		December 31
		GAAP	GAAP	GAAP	GAAP		GAAP
Net income	$	2,304	3,898	2,806	2,179		2,092
Diluted earnings per share	$	0.37	0.62	0.45	0.35		0.33
Return on average assets (ROAA)		0.52 %	0.87 %	0.63 %	0.50 %		0.47 %
Return on average equity		6.34 %	11.03 %	8.17 %	6.43 %		6.32 %
Noninterest expense to average assets		1.67 %	1.46 %	1.55 %	1.50 %		1.40 %
Net interest margin (tax equivalent)		2.54 %	2.50 %	2.40 %	2.31 %		2.29 %
Yield on interest-earning assets		5.57 %	5.61 %	5.65 %	5.58 %		5.69 %
Cost of funds		3.12 %	3.19 %	3.32 %	3.30 %		3.48 %
		2025					2024
		December 31	September 30	June 30	March 31		December 31
		Adjusted (1)	Adjusted (2)	Adjusted (2)	Adjusted (2)		Adjusted (1)
Net income	$	2,915	3,858	3,037	2,214		2,481
Diluted earnings per share	$	0.46	0.62	0.48	0.35		0.39
Return on average assets (ROAA)		0.65 %	0.86 %	0.68 %	0.50 %		0.56 %
Return on average equity		8.02 %	10.92 %	8.84 %	6.53 %		7.49 %
Noninterest expense to average assets		1.61 %	1.46 %	1.49 %	1.50 %		1.40 %
Pre-tax, pre-provision earnings	$	3,556	4,781	3,612	2,823		3,441
Pre-tax, pre-provision ROAA		0.80 %	1.07 %	0.81 %	0.64 %		0.78 %

Asset Quality and Other Data

			As of and for the			As of and for the			As of and for the
			3 Months Ended			3 Months Ended			12 Months Ended
			December 31,			September 30,			December 31,
			2025			2025			2024
			(Dollars in thousands, except share data)
Asset Quality
	Non-performing loans	$	6,058		$	7,661		$	1,383
	Real estate owned	$	3,103		$	2,788		$	2,572
	Non-performing assets	$	9,161		$	10,449		$	3,955
	Non-performing loans to total loans		0.41 %			0.52 %			0.09 %
	Non-performing assets to total assets		0.52 %			0.58 %			0.23 %
	Year-to-date net charge-offs (recoveries)	$	158		$	167		$	(247)
	Allowance for credit losses to non-performing loans		191.91 %			148.40 %			835.14 %
	Allowance for credit losses to total loans		0.78 %			0.77 %			0.79 %
Other Data
	Cash dividends declared and paid	$	0.070		$	0.070		$	0.230
	Shares outstanding		6,385,286			6,357,359			6,393,081
	Book and tangible book value per share (2)	$	22.80		$	22.50		$	20.70
	Accumulated other comprehensive loss (AOCI) per share		(1.75)			(1.85)			(2.37)
	Book and tangible book value per share, excluding AOCI (1) (2)		24.56		$	24.35		$	23.07
	Closing market price per common share	$	22.85		$	20.45		$	21.52
	Closing price to book value ratio		100.20 %			90.88 %			103.95 %
	Tangible common equity to tangible assets ratio		8.22 %			7.94 %			7.58 %
	Bank regulatory leverage ratio		9.17 %			9.22 %			9.31 %
	(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 $1.2 million, or 13.1%, from $9.1 million for the three months ended December 31, 2024 to $10.3 million for the same period in 2025.  The change between the periods was primarily the net result of the following factors:

• Average interest-earning assets increased $15.5 million, or 0.9%, from $1.662 billion to $1.677 billion, driven primarily by increases in taxable loans and interest earning deposits.
• Average net interest-earning assets increased $3.8 million, or 1.3%, from $294.7 million to $298.5 million, due primarily to $12.8 million increase in shareholders' equity.
• Cost of funds declined 36 bp from 3.48% to 3.12% resulting in tax-equivalent net interest rate spread expanding by 33 bp to 1.88% from 1.56% and tax-equivalent net interest margin expanding 25 bp to 2.54% from 2.29%. The cost of funds and the yield earned on interest-earning assets over the comparable period last year have been impacted by 100 bp of decreases in short-term interest rates by the Federal Reserve since December 2024.

Net interest income increased $7.4 million, or 23.5%, from $31.5 million for the twelve months ended December 31, 2024 to $38.9 million for the same period in 2025.  The change between the periods was primarily the net result of the following factors:

• Average interest-earning assets increased $2.6 million, or 0.2%, from $1.669 billion to $1.672 billion, driven primarily by increases in taxable loans.
• Average net interest-earning assets increased $6.1 million, or 2.1%, from $285.6 million to $291.6 million, due primarily to a $12.1 million increase in shareholders' equity.
• Cost of funds declined 45 bp from 3.70% to 3.25% resulting in tax-equivalent net interest rate spread expanding by 51 bp from 1.26% to 1.77% and tax-equivalent net interest margin expanding 43 bp from 2.01 % to 2.44%.

Rate Sensitivity

The Company has the following assets, derivatives and liabilities subject to contractual repricing of interest rates:

(In thousands)		December 31, 2025
Interest-earning deposits	$	65,202
Investments available for sale		14,300
Loans receivable		460,411
Interest rate swaps (notional)		260,000
	$	799,913
Deposits	$	105,428
Senior debt		17,996
	$	123,424

Interest Rate Swaps

The Company has the following interest rate swaps designated as hedges as of December 31, 2025:

				Estimated
			Fair	Annual			Receive	Pay
Hedged Item		Notional	Value	Earnings	Term	Maturity	Rate	Rate
(dollars in thousands)
Fixed rate loans	$	150,000	(1,496)	(1,356)	3 Yrs	10/1/2026	3.79 %	4.69 %
Fixed rate loans		75,000	(103)	58	2 Yrs	9/1/2026	3.79 %	3.71 %
Floating rate deposit		35,000	(52)	60	1.5 Yrs	10/22/2026	3.82 %	3.65 %
	$	260,000	(1,651)	(1,239)

Provision For (Recovery Of) Credit Losses

The following summarizes the Company's provision for (recovery of) credit losses and net charge-offs (recoveries) for each of the last five quarters:

		Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)		2025		2025		2025		2025		2024
Provision for (recovery of) credit losses	$	575		(33)		138		64		480
Net charge-offs (recoveries)		(9)		5		7		155		11

The Company continues to experience historically lower levels of specific reserves and net charge-offs which, when combined with minimal changes in economic factors, has resulted in minimal provisions for credit losses during the last five quarters.  Given our limited loss history, the Company utilizes peer data in its estimation of expected loan losses.

Noninterest Income

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

		Three Months Ended December 31
(In thousands)		2025	2024	Change
Service charges and fees	$	401	386	15
Bank owned life insurance		57	57	-
Realized and unrealized gain (loss) on equity securities		12	(58)	70
Gain (loss) on sale of loans		9	-	9
Wealth management		219	199	20
Other		26	(2)	28
Total noninterest income	$	724	582	142

Noninterest income increased to $0.7 million in the fourth quarter of 2025 from $0.6 million in the same quarter of 2024.  The following factors had an impact on noninterest income during these periods:

• Realized and unrealized gain (loss) on equity securities improved by $0.1 million from the fourth quarter of 2024 primarily due to improved equity market conditions.

		Twelve Months Ended December 31
(In thousands)		2025	2024	Change
Service charges and fees	$	1,542	1,528	14
Bank owned life insurance		224	223	1
Realized gain (loss) on sale of investment securities available for sale		(160)	69	(229)
Realized and unrealized gain (loss) on equity securities		30	(28)	58
Gain on sale of loans		15	38	(23)
Gain (loss) on sale of fixed assets		5	30	(25)
Wealth management		901	810	91
Swap fees		385	51	334
Limited partnership income		352	-	352
Other		48	24	24
Total noninterest income	$	3,342	2,745	597

Noninterest income increased to $3.3 million during the twelve months ended December 31, 2025 from $2.7 million during the same period of 2024.  The following factors had an impact on noninterest income during these periods:

• Realized gain (loss) on sale of investment securities available for sale declined by $0.2 million from the first twelve months of 2024 due to management's decision during January 2025 to sell a municipal bond at a loss as a risk mitigation measure given that it was issued by a municipality that was in close proximity to the California wildfires.
• Wealth management fees improved by $0.1 million as a result of an improvement in equity market conditions and assets under management.
• Swap fees increased $0.3 million due to an increased demand from customers wanting to lock in a fixed interest rate on loans. 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.
• Limited partnership income increased $0.4 million from distributions from certain of the Company's investments in limited partnerships, which tend to have distributions towards the end of their life.

Noninterest Expense

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

		Three Months Ended December 31
(In thousands)		2025	2024	Change
Compensation and employee benefits	$	3,546	3,010	536
Occupancy		879	742	137
Furniture and equipment		367	348	19
Data processing		731	634	97
FDIC insurance		334	332	2
Office		188	173	15
Advertising		137	120	17
Professional fees		521	450	71
Real Estate Owned		9	-	9
Merger-related expenses		255	-	255
Other noninterest expense		484	396	88
Total noninterest expense	$	7,451	6,205	1,246

Noninterest expense increased $1.3 million from $6.2 million for the three months ended December 31, 2024 to $7.5 million in the same period of 2025. The following factors had an impact on noninterest expense during these periods:

• Compensation and employee benefits expense increased $0.5 million, or 17.8%, due primarily to an increase in incentive accruals and bonuses tied to forecasted 2025 performance, as well as merit increases and an increase in FTE employees from 108 to 110.
• Merger-related expenses increased $0.3 million due to certain merger-related services received in the fourth quarter of 2025 associated with the proposed merger with Home Bancshares.

		Twelve Months Ended December 31
(In thousands)		2025	2024	Change
Compensation and employee benefits	$	14,007	11,912	2,095
Occupancy		3,162	2,753	409
Furniture and equipment		1,295	1,182	113
Data processing		2,738	2,643	95
FDIC insurance		1,402	1,450	(48)
Office		744	733	11
Advertising		433	443	(10)
Professional fees		1,990	2,041	(51)
Real Estate Owned		25	-	25
Merger-related expenses		255	-	255
Other noninterest expense		1,472	1,378	94
Total noninterest expense	$	27,523	24,535	2,988

Noninterest expense increased $3.0 million, or 12.2%, from $24.5 million for the twelve months ended December 31, 2024 to $27.5 million in the same period of 2025. The following factors had an impact on changes in noninterest expense during these periods:

• Compensation and employee benefits expense increased $2.1 million, or 17.6%, due primarily to an increase in incentive accruals and bonuses tied to forecasted 2025 performance, as well as merit increases.
• Occupancy and furniture and equipment expenses increased by a combined $0.5 million, or 13.3%, due to the opening of the Johnson City financial center on July 1, 2024, offset, in part, by the elimination of expenses for the formerly leased facilities. Additionally, certain non-recurring maintenance and repair services were performed for buildings and properties owned by the Company in the fourth quarter of 2025.
• Merger-related expenses increased $0.3 million due to certain merger-related services received in the fourth quarter of 2025 associated with the proposed merger with Home Bancshares.

Income Taxes

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

Three Months Ended December 31
2025	2024
22.71 %	29.35 %
Twelve Months Ended December 31
2025	2024
20.25 %	22.58 %

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) and investments in tax-free municipal securities, and state tax credits on certain loans.  The Company's effective tax rate declined in the 2025 periods compared to comparable periods in 2024 due to higher utilization of state tax credits.

Balance Sheet

Total assets increased $25.3 million, or 1.45%, from $1.746 billion at December 31, 2024 to $1.771 billion at December 31, 2025.  The change was primarily driven by the following factors:

• Available for sale investment security balances decreased $3.8 million, or 3.41%, primarily due to changes in fair value and contractual maturities.

The following summarizes the composition of the Company's available for sale investment securities portfolio (at fair value) as of the periods indicated:

		December 31, 2025			December 31, 2024
		Estimated	Net		Estimated	Net
		Fair	Unrealized		Fair	Unrealized
		Value	Gain (Loss)		Value	Gain (Loss)
(in thousands)
Agency MBS / CMO	$	11,221	(1,302)		11,560	(1,960)
Agency multifamily (non-guaranteed)		5,867	(374)		7,081	(750)
Agency floating rate		10,992	25		6,647	18
Business Development Companies		3,665	(86)		3,522	(236)
Corporate		17,659	(633)		22,832	(1,860)
Municipal		27,066	(5,428)		25,987	(7,169)
Non-agency MBS / CMO		33,436	(7,293)		35,331	(8,566)
	$	109,905	(15,091)		112,960	(20,523)

Non-agency MBS/CMO have an average credit-enhancement of approximately 35% as of December 31, 2025.  Municipal securities are generally rated AA or higher. 

• The Company did not have any securities classified as held-to-maturity as of December 31, 2025 and 2024.
• Loans receivable increased $27.3 million, or 1.86%, from $1.463 billion at December 31, 2024 to $1.490 billion at December 31, 2025. The Company is intentionally managing its loan growth as it seeks to improve its risk profile by paying down debt, increasing capital, and reducing the amount of its wholesale borrowings. The Company is managing its exposure to commercial real estate and has a regulatory commercial real estate concentration of 335% of total risk-based capital as of December 31, 2025 as compared to 325% at December 31, 2024, while our AD&C concentration remains low at 36% of total risk-based capital as of December 31, 2025 as compared to 43% at December 31, 2024. The following summarizes changes in loan balances over the last five quarters:

		December 31,		September 30,		June 30,		March 31,		December 31,
		2025		2025		2025		2025		2024
(in thousands)
Residential construction	$	28,622		23,446		18,811		19,636		14,831
Other construction		35,486		33,642		51,846		51,047		60,474
Farmland		11,904		10,531		8,192		7,577		4,513
Home equity		66,863		64,272		60,625		56,588		57,972
Residential		431,519		430,970		445,966		444,620		449,056
Multi-family		122,875		131,836		125,803		121,511		114,634
Owner-occupied commercial		263,722		266,357		251,842		252,764		252,615
Non-owner occupied commercial		405,089		403,709		395,038		389,666		382,136
Commercial & industrial		111,469		107,338		108,151		114,899		115,234
PPP Program		24		37		50		66		83
Consumer		12,786		11,924		12,068		11,112		11,559
	$	1,490,359		1,484,062		1,478,392		1,469,486		1,463,107

The following summarizes the industry components of the Company's non-owner occupied commercial real estate loans as of December 31, 2025.  Office loans are primarily comprised of low-rise office space.

		Loan		% of Total
($ in thousands)		Balance		Loans
Hotels	$	103,457		6.9 %
Retail		83,612		5.6 %
Office		85,939		5.8 %
Marina		22,943		1.5 %
Campground		21,650		1.5 %
Warehouse		21,460		1.4 %
Mini-storage		16,746		1.1 %
Vacation Rentals		25,119		1.7 %
Car Wash		5,159		0.3 %
Entertainment		8,160		0.5 %
Restaurant		3,853		0.3 %
Other		6,991		0.5 %
	$	405,089		27.2 %

The following summarizes the Company's loan portfolio by market where the loan was originated:

		December 31,		December 31,
(in thousands)		2025		2024
Tri-Cities	$	193,148		189,287
Knoxville		1,003,695		1,019,266
Nashville		293,516		254,554
	$	1,490,359		1,463,107

• Other real estate owned increased $0.5 million, or 20.7%, from $2.6 million at December 31, 2024 to $3.1 million at December 31, 2025. The following summarizes the detail of Other real estate owned as of the periods indicated:

		December 31,		December 31,
(in thousands)		2025		2024
Residential	$	2,572		2,572
Commercial Real Estate		315		-
Land		216		-
	$	3,103		2,572

• Total deposits increased $18.3 million, or 1.2%, from $1.527 billion at December 31, 2024 to $1.545 billion at December 31, 2025.

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

		December 31,		September 30,		June 30,		March 31,		December 31,
		2025		2025		2025		2025		2024
(in thousands)
Non-interest bearing transaction	$	231,568		257,199		264,725		248,711		248,298
NOW and money market		500,393		514,932		503,216		462,367		431,629
Savings		177,001		177,863		185,815		189,814		189,246
Retail time deposits		375,952		373,209		364,027		372,741		370,989
		1,284,914		1,323,203		1,317,783		1,273,633		1,240,162
Wholesale time deposits		260,064		259,438		267,072		296,578		286,552
Total deposits	$	1,544,978		1,582,641		1,584,855		1,570,211		1,526,714

The following summarizes core deposits, treasury deposits, and wholesale deposits and average interest rate as of December 31, 2025:

	December 31, 2025
($ in thousands)	Balance	Rate
Core
Non-interest DDA	$      231,568	0.00 %
Interest DDA	41,454	0.63 %
Money Market	357,160	3.10 %
Savings	128,471	1.83 %
Retail CDs	375,952	4.02 %
Total Core	$  1,134,605	2.52 %
Treasury
Inspira	$         55,208	4.45 %
PMA/ICS/CDARS	95,101	3.20 %
Total Treasury	$     150,309	3.66 %
Wholesale
Brokered CDs	183,113	4.46 %
QwickRate CDs	76,951	4.56 %
Total Wholesale	$     260,064	4.49 %
Total Deposits	$  1,544,978	2.96 %

The following summarizes the composition of certificates of deposit by maturity and average interest rate as of December 31, 2025:

Maturity		Brokered CD				Qwickrate CD				Retail CD				Total
Date		Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
Q1 2026		70,300		4.56 %		7,341		4.38 %		156,254		4.14 %		233,895		4.27 %
Q2 2026		20,061		3.70 %		17,672		5.24 %		69,260		3.98 %		106,993		4.14 %
Q3 2026		-		-		19,465		4.53 %		33,088		4.06 %		52,553		4.23 %
Q4 2026		48,551		4.50 %		24,789		4.20 %		70,640		3.85 %		143,980		4.13 %
Q1 2027		-		-		4,435		4.88 %		39,987		3.91 %		44,422		4.01 %
Q2 2027		44,201		4.60 %		2,751		3.88 %		3,172		3.96 %		50,124		4.52 %
Q3 2027		-		-		498		3.75 %		1,546		4.21 %		2,044		4.10 %
Q4 2027		-		-		-		-		492		3.71 %		492		3.71 %
Thereafter		-		-		-		-		1,513		3.78 %		1,513		3.78 %
		183,113		4.46 %		76,951		4.56 %		375,952		4.02 %		636,016		4.21 %

The following summarizes deposits by market where the deposit was originated:

		December 31,		December 31,
		2025		2024
Tri-Cities	$	350,140		329,912
Knoxville		668,958		688,049
Nashville		108,620		100,928
	$	1,127,718		1,118,889

• FHLB borrowings were $50.0 million at December 31, 2025 and 2024, and consisted of the following at December 31, 2025:

	Amounts	Original	Current	Maturity
	(000's)	Term	Rate	Date
$	20,000	1 Week	3.69 %	01/07/26
	20,000	3 Month	3.89 %	03/16/26
	10,000	2 Years	4.38 %	11/05/26
$	50,000		3.91 %

• Total equity increased $13.3 million, or 10.0%, from $132.4 million at December 31, 2024 to $145.6 million at December 31, 2025. The following summarizes the components of the change in total shareholders' equity and tangible book value per share for the twelve months ended December 31, 2025:

		Total	Tangible
		Shareholders'	Book Value
		Equity	Per Share
(In thousands)
December 31, 2024	$	132,353	20.70
Net income		11,187	1.78
Dividends paid		(1,659)	(0.26)
Stock compensation		943	0.15
Share repurchases from stock compensation		(152)	(0.02)
Share repurchases		(1,003)	(0.16)
Change in fair value of investments available for sale		3,947	0.62
December 31, 2025	$	145,616	22.80	*
* Sum of the individual components may not equal the total

The Company's tangible equity to tangible assets ratio increased to 8.22% at December 31, 2025 from 7.58% at December 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 December 31, 2025, with the Bank maintaining a regulatory leverage ratio of 9.17% at December, 2025.

Share Repurchases

The Company has an active authorization to repurchase up to $5 million of shares through March 31, 2026.  50,000 shares at an average price of $20.00 per share were repurchased pursuant to such plan during the twelve months ended December 31, 2025.

Asset Quality

Non-performing loans to total loans increased to 0.41% at December 31, 2025 from 0.09% at December 31, 2024.  Non-performing assets to total assets increased to 0.52% at December 31, 2025 from 0.23% at December 31, 2024.  The following summarizes the composition of non-performing loans and related collateral values as of December 31, 2025:

No. of	Collateral		Loan	Collateral
Properties	Type		Amount	Value
1	Multifamily residential	$	506	1,058
1	Non-owner occupied CRE		2,263	2,218
3	1-4 Family residential		3,223	4,092
5		$	5,992	7,368

Other real estate owned of $3.1 million at December 31, 2025 is comprised of four properties for which no remaining loss on sale is anticipated.  Net charge-offs of $0.2 million were recognized during the twelve months ended December 31, 2025 in conjunction with the transfer of multiple properties to other real estate owned, compared to net recoveries of $0.2 million during the year ended December 31, 2024. 

The allowance for credit losses to total loans declined to 0.78% at December 31, 2025 from 0.79% at December 31, 2024.  Coverage of non-performing loans by the allowance for credit losses was nearly 2 to 1 at December 31, 2025, down from more than 8 to 1 at December 31, 2024 due to the increase in non-performing loans.  Loans represented in the increase in non-performing loans during the quarter ended December 31, 2025 have been individually evaluated for collateral adequacy and did require a specific reserve of less than $0.1 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, 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," "target," "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) the impact of U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting from there, and geopolitical instability, (iii) 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; (iv) deterioration in the real estate market conditions in our market areas;  (v) 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 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 possibility that our proposed merger with Home Bancshares does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; (viii) the possibility that our proposed merger with Home Bancshares may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (ix) the risk that the benefits from our proposed merger with Home Bancshares may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, interest rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which we and Home Bancshares operate; (x) the ability to promptly and effectively integrate our and Home Bancshares' businesses; (xi) the reaction to our proposed merger with Home Bancshares from our or Home Bancshares' customers, employees and counterparties; (xii) the diversion of our management's time and attention to merger-related matters; (xiii) risks associated with the shutdown of the United States federal government, including adverse effects on the national or local economies and adverse effects resulting from a shutdown of the U.S. Small Business Administration's SBA loan program; (xiv) 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;  (xv) significant downturns in the business of one or more large customers; (xvi) effectiveness of our asset management activities in improving, resolving or liquidating lower quality assets; (xvii) our inability to maintain the historical, long-term growth rate of our loan portfolio; (xviii) risks of expansion into new geographic or product markets; (xix) the possibility of increased compliance and operational costs as a result of increased regulatory oversight; (xx) our inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xxi) the ineffectiveness of our hedging strategies, or the unexpected counterparty failure or failure of the underlying hedges; (xxii) changes in or interpretations of 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; (xxiii) changes in capital levels and loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xxiv) inadequate allowance for credit losses; (xxv) results of regulatory examinations; (xxvi) 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, ransomware attacks, human error, natural disasters, power loss and other security breaches; (xxvii) loss of key personnel; and (xxviii) 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, with another branch in the Johnson City area scheduled to open by the end of the first quarter 2026.  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.

Additional Important Information and Where to Find It

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed business combination transaction involving Home Bancshares and Mountain Commerce Bancorp. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful. In connection with the proposed acquisition, Home Bancshares has filed with the Securities and Exchange Commission (the "SEC") a Registration Statement on Form S-4 (the "Registration Statement") to register the shares of Home Bancshares common stock to be issued to shareholders of Mountain Commerce Bancorp in connection with the transaction. The Registration Statement will include a Proxy Statement of Mountain Commerce Bancorp and a Prospectus of Home Bancshares, as well as other relevant materials regarding the proposed merger transaction involving Home Bancshares and Mountain Commerce Bancorp. INVESTORS AND SECURITY HOLDERS OF MOUNTAIN COMMERCE BANCORP ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER TRANSACTION. Investors and security holders may obtain free copies of these documents and other documents filed with the SEC on the SEC's website at http://www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by Home Bancshares at its website at http://www.homebancshares.com, Investor Relations, or by contacting Donna Townsell, by telephone at (501) 328-4625.

Participants in Solicitation

Home Bancshares and Mountain Commerce Bancorp and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Mountain Commerce Bancorp in connection with the merger transaction. Information about the directors and executive officers of Home Bancshares and their ownership of Home Bancshares common stock is set forth in the proxy statement for HOMB's 2025 Annual Meeting of Shareholders, as filed with the SEC on Schedule 14A on March 7, 2025. Information about the directors and executive officers of Mountain Commerce Bancorp and their ownership of Mountain Commerce Bancorp common stock will be set forth in the Proxy Statement/Prospectus to be included in the Registration Statement. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the merger transaction. Free copies of this document may be obtained as described in the preceding paragraph when it becomes available.

Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in thousands, except share data)
			Three Months Ended					Twelve Months Ended
			December 31,	September 30,	December 31,			December 31,	December 31,
			2025	2025	2024			2025	2024
Interest income
	Loans	$	21,158	21,349	21,055		$	84,005	82,573
	Investment securities - taxable		990	1,024	1,076			4,103	4,611
	Investment securities - tax exempt		29	29	29			117	117
	Dividends and other		926	940	1,101			3,616	4,784
			23,103	23,342	23,261			91,841	92,085
Interest expense
	Savings		1,043	1,155	1,227			4,573	6,715
	Interest bearing transaction accounts		4,113	4,138	3,762			15,614	15,763
	Time certificates of deposit of $250,000 or more		3,851	3,828	4,397			16,058	17,877
	Other time deposits		3,012	3,043	3,638			13,047	14,570
	Total deposits		12,019	12,164	13,024			49,292	54,925
	Senior debt		279	181	269			871	1,425
	Subordinated debt		49	191	167			569	660
	FHLB advances		473	634	737			2,157	3,529
			12,820	13,170	14,197			52,889	60,539
Net interest income			10,283	10,172	9,064			38,952	31,546
Provision for (recovery of) credit losses			575	(33)	480			744	(1,770)
Net interest income after provision for (recovery of) credit losses			9,708	10,205	8,584			38,208	33,316
Noninterest income
	Service charges and fees		401	404	386			1,542	1,528
	Bank owned life insurance		57	56	57			224	223
	Realized gain (loss) on sale of investment securities available for sale		-	(13)	-			(160)	69
	Realized and unrealized gain (loss) on equity securities		12	29	(58)			30	(28)
	Gain on sale of loans		9	4	-			15	38
	Gain on sale of fixed assets		-	-	-			5	30
	Wealth management		219	239	199			901	810
	Swap fees		-	75	-			385	51
	Limited partnership income		-	352	-			352	-
	Other		26	8	(2)			48	24
			724	1,154	582			3,342	2,745
Noninterest expense
	Compensation and employee benefits		3,546	3,384	3,010			14,007	11,912
	Occupancy		879	767	742			3,162	2,753
	Furniture and equipment		367	302	348			1,295	1,182
	Data processing		731	671	634			2,738	2,643
	FDIC insurance		334	363	332			1,402	1,450
	Office		188	200	173			744	733
	Advertising		137	89	120			433	443
	Professional fees		521	385	450			1,990	2,041
	Real estate owned expense		9	53	-			25	-
	Merger-related expenses		255	-	-			255	-
	Other noninterest expense		484	331	396			1,472	1,378
			7,451	6,545	6,205			27,523	24,535
Income before income taxes			2,981	4,814	2,961			14,027	11,526
Income taxes			677	916	869			2,840	2,603
Net income		$	2,304	3,898	2,092		$	11,187	8,923
Earnings  per common share:
	Basic	$	0.37	0.62	0.33		$	1.78	1.42
	Diluted	$	0.37	0.62	0.33		$	1.78	1.42
Weighted average common shares outstanding:
	Basic		6,264,967	6,251,027	6,284,585			6,269,993	6,268,048
	Diluted		6,284,809	6,270,773	6,297,259			6,288,971	6,277,887

 

Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
			December 31,			September 30,			December 31,
			2025			2025			2024
Assets
Cash and due from banks		$	14,725		$	22,528		$	15,819
Interest-earning deposits in other banks			65,202			90,070			59,717
	Cash and cash equivalents		79,927			112,598			75,536
Investments available for sale			109,113			113,617			112,960
Equity securities			2,795			2,763			2,695
Premises and equipment held for sale			3,762			3,762			3,762
Loans receivable			1,490,359			1,484,062			1,463,107
Allowance for credit losses			(11,626)			(11,369)			(11,550)
	Net loans receivable		1,478,733			1,472,693			1,451,557
Premises and equipment, net			59,251			59,552			61,215
Accrued interest receivable			5,383			5,567			5,587
Other real estate owned			3,103			2,788			2,572
Bank owned life insurance			10,414			10,358			10,190
Restricted stock			3,646			3,710			4,317
Deferred tax assets, net			6,896			6,946			7,762
Other assets			7,971			8,286			7,516
Total assets		$	1,770,994		$	1,802,640		$	1,745,669
Liabilities and Shareholders' Equity
Noninterest-bearing deposits		$	231,568		$	257,199		$	248,298
Interest-bearing deposits			1,053,346			1,066,004			991,864
Wholesale deposits			260,064			259,438			286,552
	Total deposits		1,544,978			1,582,641			1,526,714
FHLB borrowings			50,000			45,000			50,000
Senior debt, net			17,996			10,000			14,000
Subordinated debt, net			-			7,995			9,971
Accrued interest payable			2,395			2,921			4,435
Post-employment liabilities			3,368			3,357			3,285
Other liabilities			6,641			7,668			4,911
Total liabilities			1,625,378			1,659,582			1,613,316
Total shareholders' equity			145,616			143,058			132,353
Total liabilities and shareholders' equity		$	1,770,994		$	1,802,640		$	1,745,669

 

Appendix A - Reconciliation of Non-GAAP Financial Measures
		Three Months Ended			Twelve Months Ended
		December 31			December 31
		(Dollars in thousands, except per share data)			(Dollars in thousands, except per share data)
		2025	2024		2025	2024
Adjusted Net Income
Net income (GAAP)	$	2,304	2,092	$	11,187	8,923
Realized (gain) loss on sale of investment securities available for sale		-	-		160	(69)
Realized and unrealized (gain) loss on equity securities		(12)	58		(30)	28
Gain on sale of fixed assets		-	-		(5)	(30)
Gain on sale of real estate owned		-	-		(75)	-
Corporate and strategic initiatives		-	-		243	-
Merger-related expenses		255	-		255	-
Provision for (recovery of) credit losses		575	480		744	(1,770)
Net (charge-offs) recoveries of credit losses		9	(11)		(158)	247
Software conversion expense		-	-		-	271
Tax effect of adjustments		(216)	(138)		(296)	346
Adjusted net income (Non-GAAP)	$	2,915	2,481	$	12,025	7,946
Adjusted Diluted Earnings Per Share
Diluted earnings per share (GAAP)	$	0.37	0.33	$	1.78	1.42
Realized (gain) loss on sale of investment securities available for sale		-	-		0.03	(0.01)
Realized and unrealized (gain) loss on equity securities		(0.00)	0.01		(0.00)	0.00
Gain on sale of fixed assets		-	-		(0.00)	(0.00)
Gain on sale of real estate owned		-	-		(0.01)	-
Corporate and strategic initiatives		-	-		0.04	-
Merger-related expenses		0.04	-		0.04	-
Provision for (recovery of) credit losses		0.09	0.08		0.12	(0.28)
Net (charge-offs) recoveries of credit losses		0.00	(0.00)		(0.03)	0.04
Software conversion expense		-	-		-	0.04
Tax effect of adjustments		(0.03)	(0.02)		(0.05)	0.06
Adjusted diluted earnings per share (Non-GAAP)	$	0.46	0.39	$	1.91	1.27
Adjusted Return on Average Assets
Return on average assets (GAAP)		0.52 %	0.47 %		0.63 %	0.50 %
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		0.00 %	0.01 %		0.00 %	0.00 %
Gain on sale of fixed assets		0.00 %	0.00 %		0.00 %	0.00 %
Gain on sale of real estate owned		0.00 %	0.00 %		0.00 %	0.00 %
Corporate and strategic initiatives		0.00 %	0.00 %		0.01 %	0.00 %
Merger-related expenses		0.06 %	0.00 %		0.01 %	0.00 %
Provision for (recovery of) credit losses		0.13 %	0.11 %		0.04 %	-0.10 %
Net (charge-offs) recoveries of credit losses		0.00 %	0.00 %		-0.01 %	0.01 %
Software conversion expense		0.00 %	0.00 %		0.00 %	0.02 %
Tax effect of adjustments		-0.05 %	-0.03 %		-0.02 %	0.02 %
Adjusted return on average assets (Non-GAAP)		0.65 %	0.56 %		0.67 %	0.45 %
Adjusted Return on Average Equity
Return on average equity (GAAP)		6.34 %	6.32 %		8.00 %	6.99 %
Realized (gain) loss on sale of investment securities available for sale		0.00 %	0.00 %		0.11 %	-0.05 %
Realized and unrealized (gain) loss on equity securities		-0.03 %	0.18 %		-0.02 %	0.02 %
Gain on sale of fixed assets		0.00 %	0.00 %		0.00 %	-0.02 %
Gain on sale of real estate owned		0.00 %	0.00 %		-0.05 %	0.00 %
Corporate and strategic initiatives		0.00 %	0.00 %		0.17 %	0.00 %
Merger-related expenses		0.70 %	0.00 %		0.18 %	0.00 %
Provision for (recovery of) credit losses		1.58 %	1.45 %		0.53 %	-1.39 %
Net (charge-offs) recoveries of credit losses		0.02 %	-0.03 %		-0.11 %	0.19 %
Software conversion expense		0.00 %	0.00 %		0.00 %	0.21 %
Tax effect of adjustments		-0.60 %	-0.42 %		-0.21 %	0.27 %
Adjusted return on average equity (Non-GAAP)		8.02 %	7.49 %		8.60 %	6.22 %
Appendix A - Reconciliation of Non-GAAP Financial Measures, Continued
		Three Months Ended			Twelve Months Ended
		December 31			December 31
		(Dollars in thousands, except per share data)			(Dollars in thousands, except per share data)
		2025	2024		2025	2024
Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP)	$	1.67 %	1.40 %	$	1.54 %	1.38 %
Software conversion expense		0.00 %	0.00 %		0.00 %	-0.02 %
Corporate and strategic initiatives		0.00 %	0.00 %		-0.01 %	0.00 %
Merger-related expenses		-0.06 %	0.00 %		-0.01 %	0.00 %
Noninterest expense to average assets (Non-GAAP)	$	1.61 %	1.40 %	$	1.52 %	1.37 %
Pre-tax, Pre-Provision Earnings
Net income (GAAP)	$	2,304	2,092	$	11,187	8,923
Income taxes		677	869		2,840	2,603
Provision for (recovery of) credit losses		575	480		744	(1,770)
Pre-tax, pre-provision earnings (non-GAAP)	$	3,556	3,441	$	14,771	9,756
Pre-tax, Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP)		0.52 %	0.47 %	$	0.63 %	0.50 %
Income taxes		0.15 %	0.20 %		0.16 %	0.15 %
Provision for (recovery of) credit losses		0.13 %	0.11 %		0.04 %	-0.10 %
Pre-tax, pre-provision return on average assets (non-GAAP)		0.80 %	0.78 %	$	0.83 %	0.55 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP)	$	22.80	20.70
Impact of AOCI per share		1.75	2.37
Book and tangible book value per share, excluding AOCI (non-GAAP)	$	24.56	23.07

 

Appendix B - Tax Equivalent Net Interest Margin Analysis
			For the Three Months Ended December 31,
			2025					2024
			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	$	1,446,853	21,158	5.80 %		$	1,425,857	21,055	5.87 %
	Loans - imputed tax credits (2)		26,695	455	6.75 %			28,583	485	6.75 %
	Investments - taxable		110,555	990	3.55 %			114,214	1,076	3.75 %
	Investments - tax exempt (1)		4,404	37	3.31 %			4,280	37	3.41 %
	Interest earning deposits		83,058	817	3.90 %			82,796	970	4.66 %
	Other investments, at cost		5,774	99	6.80 %			6,114	131	8.52 %
	Total interest-earning assets		1,677,339	23,555	5.57 %			1,661,844	23,754	5.69 %
	Noninterest-earning assets		107,014					107,862
	Total assets	$	1,784,353				$	1,769,706
Interest-bearing liabilities:
	Interest-bearing transaction accounts	$	133,088	1,109	3.31 %		$	127,447	1,120	3.50 %
	Savings accounts		171,901	1,044	2.41 %			197,239	1,227	2.47 %
	Money market accounts		382,073	3,003	3.12 %			305,828	2,642	3.44 %
	Retail time deposits		374,943	3,295	3.49 %			373,191	4,080	4.35 %
	Wholesale time deposits		256,293	3,568	5.52 %			278,213	3,955	5.66 %
	Total interest bearing deposits		1,318,298	12,019	3.62 %			1,281,918	13,024	4.04 %
	Senior debt		17,996	279	6.15 %			14,935	269	7.17 %
	Subordinated debt		1,217	49	15.97 %			9,966	167	6.67 %
	Federal Home Loan Bank advances		41,348	473	4.54 %			60,326	737	4.86 %
	Total interest-bearing liabilities		1,378,859	12,820	3.69 %			1,367,145	14,197	4.13 %
	Noninterest-bearing deposits		250,372					256,142
	Other noninterest-bearing liabilities		9,825					13,926
	Total liabilities		1,639,056					1,637,213
	Total shareholders' equity		145,297					132,493
	Total liabilities and shareholders' equity	$	1,784,353				$	1,769,706
	Tax-equivalent net interest income			10,735					9,557
	Net interest-earning assets (3)	$	298,480				$	294,699
	Average interest-earning assets to interest-
	bearing liabilities		122 %					122 %
	Tax-equivalent net interest rate spread (4)		1.88 %					1.56 %
	Tax equivalent net interest margin (5)		2.54 %					2.29 %
	(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 Twelve Months Ended December 31,
			2025					2024
			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	$	1,439,960	84,005	5.83 %		$	1,423,931	82,573	5.80 %
	Loans - imputed tax credits (2)		27,349	1,845	6.75 %			28,974	1,955	6.75 %
	Investments - taxable		112,372	4,103	3.65 %			117,879	4,611	3.91 %
	Investments - tax exempt (1)		4,228	148	3.50 %			4,237	148	3.50 %
	Interest earning deposits		82,491	3,155	3.82 %			88,390	4,155	4.70 %
	Other investments, at cost		5,771	420	7.28 %			6,117	630	10.30 %
	Total interest-earning assets		1,672,171	93,676	5.60 %			1,669,528	94,072	5.63 %
	Noninterest-earning assets		109,586					106,174
	Total assets	$	1,781,757				$	1,775,702
Interest-bearing liabilities:
	Interest-bearing transaction accounts	$	131,327	4,407	3.36 %		$	129,790	4,935	3.80 %
	Savings accounts		182,993	4,573	2.50 %			228,726	6,715	2.94 %
	Money market accounts		355,169	11,208	3.16 %			278,753	10,828	3.88 %
	Retail time deposits		370,562	14,062	3.79 %			382,599	16,948	4.43 %
	Wholesale time deposits		273,028	15,042	5.51 %			268,025	15,499	5.78 %
	Total interest bearing deposits		1,313,079	49,292	3.75 %			1,287,893	54,925	4.26 %
	Senior debt		12,666	871	6.88 %			17,964	1,425	7.93 %
	Subordinated debt		6,993	569	8.14 %			9,947	660	6.64 %
	Federal Home Loan Bank advances		47,792	2,157	4.51 %			68,169	3,529	5.18 %
	Total interest-bearing liabilities		1,380,530	52,889	3.83 %			1,383,973	60,539	4.37 %
	Noninterest-bearing deposits		248,743					252,151
	Other noninterest-bearing liabilities		12,675					11,904
	Total liabilities		1,641,948					1,648,028
	Total shareholders' equity		139,809					127,674
	Total liabilities and shareholders' equity	$	1,781,757				$	1,775,702
	Tax-equivalent net interest income			40,787					33,533
	Net interest-earning assets (3)	$	291,641				$	285,555
	Average interest-earning assets to interest-
	bearing liabilities		121 %					121 %
	Tax-equivalent net interest rate spread (4)		1.77 %					1.26 %
	Tax equivalent net interest margin (5)		2.44 %					2.01 %
	(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)
		2025
		September 30	June 30	March 31
Adjusted Net Income
Net income (GAAP)	$	3,898	2,806	2,179
Realized loss on sale of investment securities available for sale		13	8	139
Realized and unrealized (gain) loss on equity securities		(29)	6	4
Gain on sale of fixed assets		-	-	(5)
Gain on sale of real estate owned		-	(75)	-
Corporate and strategic initiatives		-	243	-
Provision for (recovery of) credit losses		(33)	138	64
Net (charge-offs) recoveries of credit losses		(5)	(7)	(155)
Tax effect of adjustments		14	(82)	(12)
Adjusted net income (Non-GAAP)	$	3,858	3,037	2,214
Adjusted Diluted Earnings Per Share
Diluted earnings per share (GAAP)	$	0.62	0.45	0.35
Realized loss on sale of investment securities available for sale		0.00	0.00	0.02
Realized and unrealized (gain) loss on equity securities		(0.00)	0.00	0.00
Gain on sale of fixed assets		-	-	(0.00)
Gain on sale of real estate owned		-	(0.01)	-
Corporate and strategic initiatives		-	0.04	-
Provision for (recovery of) credit losses		(0.01)	0.02	0.01
Net (charge-offs) recoveries of credit losses		(0.00)	(0.00)	(0.02)
Tax effect of adjustments		0.00	(0.01)	(0.00)
Adjusted diluted earnings per share (Non-GAAP)	$	0.62	0.48	0.35
Adjusted Return on Average Assets
Return on average assets (GAAP)		0.87 %	0.63 %	0.50 %
Realized loss on sale of investment securities available for sale		0.00 %	0.00 %	0.03 %
Realized and unrealized (gain) loss on equity securities		-0.01 %	0.00 %	0.00 %
Gain on sale of fixed assets		0.00 %	0.00 %	0.00 %
Gain on sale of real estate owned		0.00 %	-0.02 %	0.00 %
Corporate and strategic initiatives		0.00 %	0.05 %	0.00 %
Provision for (recovery of) credit losses		-0.01 %	0.03 %	0.01 %
Net (charge-offs) recoveries of credit losses		0.00 %	0.00 %	-0.04 %
Tax effect of adjustments		0.00 %	-0.02 %	0.00 %
Adjusted return on average assets (Non-GAAP)		0.86 %	0.68 %	0.50 %
Adjusted Return on Average Equity
Return on average equity (GAAP)		11.03 %	8.17 %	6.43 %
Realized loss on sale of investment securities available for sale		0.04 %	0.02 %	0.41 %
Realized and unrealized (gain) loss on equity securities		-0.08 %	0.02 %	0.01 %
Gain on sale of fixed assets		0.00 %	0.00 %	-0.01 %
Gain on sale of real estate owned		0.00 %	-0.22 %	0.00 %
Corporate and strategic initiatives		0.00 %	0.71 %	0.00 %
Provision for (recovery of) credit losses		-0.09 %	0.40 %	0.19 %
Net (charge-offs) recoveries of credit losses		-0.01 %	-0.02 %	-0.46 %
Tax effect of adjustments		0.04 %	-0.24 %	-0.04 %
Adjusted return on average equity (Non-GAAP)		10.92 %	8.84 %	6.53 %
Appendix C - Reconciliation of Prior Period Non-GAAP Financial Measures, Continued
		Three Months Ended
		(Dollars in thousands, except per share data)
		2025
		September 30	June 30	March 31
Adjusted Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP)		1.46 %	1.55 %	1.50 %
Corporate and strategic initiatives		0.00 %	-0.05 %	0.00 %
Adjusted noninterest expense to average assets (Non-GAAP)		1.46 %	1.49 %	1.50 %
Pre-tax Pre-Provision Earnings
Net income (GAAP)	$	3,898	2,806	2,179
Income taxes		916	668	580
Provision for (recovery of) credit losses		(33)	138	64
Pre-tax Pre-provision earnings (non-GAAP)	$	4,781	3,612	2,823
Pre-tax Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP)		0.87 %	0.63 %	0.50 %
Income taxes		0.20 %	0.15 %	0.13 %
Provision for (recovery of) credit losses		-0.01 %	0.03 %	0.01 %
Pre-tax Pre-provision return on average assets (non-GAAP)		1.07 %	0.81 %	0.64 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP)	$	22.50	21.72	21.26
Impact of AOCI per share		1.85	2.04	2.09
Book and tangible book value per share, excluding AOCI (non-GAAP)	$	24.35	23.76	23.35

 

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SOURCE Mountain Commerce Bancorp, Inc.

FAQ

What dividend did Mountain Commerce Bancorp (MCBI) declare for Q1 2026 and when is it payable?

The Board declared a quarterly cash dividend of $0.07 per share, payable March 2, 2026 to shareholders of record as of February 2, 2026.

What are MCBI's full-year 2025 earnings and diluted EPS?

For the twelve months ended 12/31/2025, MCBI reported GAAP net income of $11.187M and diluted EPS of $1.78.

What is the proposed merger deal for Mountain Commerce Bancorp (MCBI) with Home Bancshares?

MCBI entered an all-stock merger agreement where shareholders will receive 0.85 shares of Home Bancshares for each MCBI share; the transaction is expected to close early in H1 2026, subject to regulatory and shareholder approvals.

How did MCBI's net interest margin and net interest income change in 2025?

Tax-equivalent net interest margin expanded to 2.44% for 2025 (up 43 bps YoY); net interest income increased to $38.9M for the twelve months, a 23.5% rise versus 2024.

Did Mountain Commerce report any credit or asset-quality concerns in Q4 2025?

The company recorded a $0.6M provision for credit losses in Q4 and reported non-performing assets of $9.161M (0.52% of assets) at 12/31/2025, noting management views these assets as well collateralized.

What caused the increase in noninterest expense in Q4 2025 for MCBI?

Q4 noninterest expense rose primarily due to merger-related expenses tied to the proposed Home Bancshares transaction and non-recurring repairs and maintenance on company properties.