Mountain Commerce Bancorp, Inc. Announces Reauthorization of $5 Million Share Repurchase Authorization

Mountain Commerce Bancorp (OTCQX: MCBI) has announced a reauthorization of its share repurchase program, allowing the company to buy back up to $5 million of its outstanding common shares through March 31, 2026.

Rhea-AI Summary

Mountain Commerce Bancorp (OTCQX: MCBI) has announced a reauthorization of its share repurchase program, allowing the company to buy back up to $5 million of its outstanding common shares through March 31, 2026. The repurchases can be executed through open market or private transactions, including Rule 10b5-1 trading plans. CEO Bill Edwards stated that this program provides flexibility to repurchase shares at attractive prices, manage capital levels, and enhance shareholder returns. The company maintains discretion over the timing, number, and value of shares to be purchased, with considerations including stock price performance, capital planning, market conditions, and compliance with outstanding indebtedness terms.

Positive

• Authorization of $5 million share repurchase program through March 2026
• Program provides flexibility to manage capital levels efficiently
• Potential for enhanced long-term shareholder returns
• Opportunity to increase stock liquidity

Negative

• No commitment to actually repurchase shares - program is discretionary
• Implementation depends on various factors including capital planning and market conditions
• Program may be suspended or discontinued at any time

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KNOXVILLE, Tenn., May 1, 2025 /PRNewswire/ -- Mountain Commerce Bancorp, Inc. (the "Company") (OTCQX: MCBI), the holding company for Mountain Commerce Bank (the "Bank"), today announced that the Board of Directors has reauthorized a stock repurchase program under which the Company may, from time to time, acquire up to $5 million of its outstanding common shares during a period extending through March 31, 2026. The shares may be purchased in open market or private transactions, including pursuant to Rule 10b5-1 trading plans, at the discretion of management and subject to the limitations of applicable securities laws.

President and Chief Executive Officer Bill Edwards commented, "This reauthorization provides us the option of repurchasing shares, especially if the pricing is attractive. Repurchasing shares allows us to manage our capital levels, provide increased liquidity and enhanced longer-term returns for our shareholders."

The share repurchase program may be extended, modified, amended, suspended or discontinued at any time at the Company's discretion and does not commit the Company to repurchase shares of its common stock. The actual timing, number and value of the shares to be purchased under the program will be determined by the Company at its discretion and will depend on a number of factors, including the performance of the Company's stock price, the Company's ongoing capital planning considerations, general market and other conditions, applicable legal requirements and compliance with the terms of the Company's outstanding indebtedness.

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) 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 there from, 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) 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, ransomware 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.

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SOURCE Mountain Commerce Bancorp, Inc.

FAQ

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What is the size and duration of MCBI's share repurchase program?

Mountain Commerce Bancorp's share repurchase program authorizes the repurchase of up to $5 million of outstanding common shares through March 31, 2026.

How will MCBI execute its share repurchase program?

The company may purchase shares through open market or private transactions, including Rule 10b5-1 trading plans, at management's discretion.

What are the benefits of MCBI's share repurchase program?

The program allows MCBI to manage capital levels, provide increased liquidity, and potentially enhance long-term returns for shareholders.

Is MCBI committed to repurchasing the full $5 million in shares?

No, the program is discretionary and may be modified, suspended, or discontinued at any time based on factors including stock price, capital planning, and market conditions.