Mountain Commerce Bancorp, Inc. Announces Second Quarter 2025 Results, Quarterly Cash Dividend, And Senior Revolving Line of Credit

Rhea-AI Summary

Mountain Commerce Bancorp (OTCQX: MCBI) reported Q2 2025 financial results, highlighting improved performance metrics and announcing its nineteenth consecutive quarterly dividend of $0.07 per share. The company secured a new $25 million senior revolving line of credit on July 15, 2025, replacing its existing $10 million facility.

Key Q2 2025 metrics include: adjusted return on average assets of 0.68% (up from 0.50% in Q1), net interest margin of 2.40% (improved from 2.31% in Q1 and 2.00% year-over-year), and net income of $2.8 million ($0.45 per diluted share). The bank's tangible common equity ratio strengthened to 7.66%, with a bank regulatory leverage ratio of 9.22%.

Positive

• Net interest margin improved to 2.40% in Q2 2025 from 2.00% year-over-year
• Secured new $25 million senior revolving line of credit with improved terms
• Net income increased to $2.8 million in Q2 2025 from $2.3 million year-over-year
• Tangible common equity ratio improved to 7.66% from 7.58% at year-end 2024
• Senior debt reduced by $8 million from June 2024

Negative

• Non-performing assets increased significantly to $10.4 million from $4.1 million in Q1 2025
• Non-performing loans ratio rose to 0.52% from 0.06% in Q1 2025
• Noninterest expense to average assets increased to 1.55% from 1.36% year-over-year

KNOXVILLE, Tenn., July 21, 2025 /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 six months ended June 30, 2025.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.07 per common share, its nineteenth consecutive quarterly dividend.  The dividend is payable on September 2, 2025 to shareholders of record as of the close of business on August 4, 2025.

Senior Revolving Line of Credit

On July 15, 2025, the Company established a senior revolving line of credit in the maximum amount of $25 million with a financial institution.  This line of credit replaces the existing senior revolving line of credit with a current balance of $10 million that was due to mature on August 1, 2025.

Pursuant to the terms of the loan and security agreement, the line of credit will mature on July 15, 2027 and bear interest at a per annum rate equal to the Prime Rate in effect from time to time minus .50 percent (50 bps), subject to a floor rate of 5.00%.  Interest only payments on the line of credit are due quarterly, with remaining principal amounts due at maturity.  A non-use fee of .10 percent (10 bps) will be assessed if the principal amount declines below $10 million.  The Company's obligations under the line of credit are secured by a pledge of 100% of the stock of the Bank and are subject to terms and covenants similar to the existing senior revolving line of credit.  The Company intends to use the available balance of the line of credit to support the operations of the Bank and for general corporate purposes.

Management Commentary

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

"We are pleased to see our earnings continue to increase with adjusted return on average assets and equity rising to 0.68% and 8.84%, respectively, for the second quarter of 2025, compared to 0.50% and 6.53%, respectively, in the first quarter of 2025.  We continued to see further improvements in our net interest margin which improved from 2.31% in the first quarter of 2025 to 2.40% in the second quarter of 2025, and increased significantly from 2.00% one year ago in the quarter ended June 30, 2024.  We anticipate continued improvement in our net interest margin throughout the remainder of 2025 as the result of rising loan portfolio yields and improved funding costs resulting from contractually scheduled repricing of certain deposits and borrowings.  We also believe our net interest margin is well positioned and protected in a variety of potential interest rate scenarios. 

While we have experienced an increase in non-performing assets, 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 1.49% during the second quarter of 2025, which continues to be approximately half that of similarly-sized peer banks based on recent call report data.  Careful management of our dividend and asset growth has allowed our tangible common equity to tangible assets ratio to rise to 7.66% at June 30, 2025 from 7.58% at December 31, 2024, with the Bank's leverage ratio finishing the second quarter of 2025 at 9.22%.  We also remain committed to paying down senior debt, which declined by $2 million and $4 million for the three and six months ended June 30, 2025, and by $8 million from June 30, 2024.

In summary, we will seek to continue to carefully control our risk and growth while net interest margin and earnings continue to recover.  Our modeling and forecasting suggest continued improvement in earnings throughout 2025, should macro-economic conditions hold."

Highlights

The following tables highlight the trends that the Company believes are most relevant to understanding the performance of the Company as of and for the three and six months ended June 30, 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, 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 June 30
		(Dollars in thousands, except per share data)
		2025					2024
		GAAP		Adjusted (1)			GAAP		Adjusted (1)
Net income	$	2,806		3,037		$	2,324		1,976
Diluted earnings per share	$	0.45		0.48		$	0.37		0.32
Return on average assets (ROAA)		0.63 %		0.68 %			0.53 %		0.45 %
Return on average equity		8.17 %		8.84 %			7.46 %		6.34 %
Noninterest expense to average assets		1.55 %		1.49 %			1.36 %		1.36 %
Net interest margin (tax equivalent)		2.40 %		2.40 %			2.00 %		2.00 %
Pre-tax, pre-provision earnings (1)	$			3,612		$			2,448
Pre-tax, pre-provision ROAA (1)				0.81 %					0.55 %
(1) Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.

 

		For the Six Months Ended June 30
		(Dollars in thousands, except per share data)
		2025					2024
		GAAP		Adjusted (1)			GAAP		Adjusted (1)
Net income	$	4,985		5,251		$	3,839		3,250
Diluted earnings per share	$	0.79		0.83		$	0.61		0.52
Return on average assets (ROAA)		0.56 %		0.59 %			0.43 %		0.37 %
Return on average equity		7.31 %		7.70 %			6.20 %		5.25 %
Noninterest expense to average assets		1.52 %		1.50 %			1.33 %		1.33 %
Net interest margin (tax equivalent)		2.36 %		2.36 %			1.80 %		1.80 %
Pre-tax, pre-provision earnings (1)	$			6,435		$			3,866
Pre-tax, pre-provision ROAA (1)				0.73 %					0.44 %
(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
		June 30	March 31		December 31		September 30		June 30
		GAAP	GAAP		GAAP		GAAP		GAAP
Net income	$	2,806	2,179		2,092		2,992		2,324
Diluted earnings per share	$	0.45	0.35		0.33		0.48		0.37
Return on average assets (ROAA)		0.63 %	0.50 %		0.47 %		0.67 %		0.53 %
Return on average equity		8.17 %	6.43 %		6.32 %		9.17 %		7.46 %
Noninterest expense to average assets		1.55 %	1.50 %		1.40 %		1.46 %		1.36 %
Net interest margin (tax equivalent)		2.40 %	2.31 %		2.29 %		2.08 %		2.00 %
Yield on interest-earning assets		5.65 %	5.58 %		5.69 %		5.70 %		5.63 %
Cost of funds		3.32 %	3.30 %		3.48 %		3.70 %		3.69 %
		2025			2024
		June 30	March 31		December 31		September 30		June 30
		Adjusted (1)	Adjusted (2)		Adjusted (2)		Adjusted (2)		Adjusted (1)
Net income	$	3,037	2,214		2,481		2,203		1,976
Diluted earnings per share	$	0.48	0.35		0.39		0.35		0.32
Return on average assets (ROAA)		0.68 %	0.50 %		0.56 %		0.49 %		0.45 %
Return on average equity		8.84 %	6.53 %		7.49 %		6.75 %		6.34 %
Noninterest expense to average assets		1.49 %	1.50 %		1.40 %		1.46 %		1.36 %
Pre-tax, pre-provision earnings	$	3,612	2,823		3,441		2,450		2,448
Pre-tax, pre-provision ROAA		0.81 %	0.64 %		0.78 %		0.55 %		0.55 %
(1) Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.
(2) Represents a non-GAAP financial measure.  See Appendix C to this press release for more information.

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
			June 30,			March 31,			December 31,
			2025			2025			2024
			(Dollars in thousands, except share data)
Asset Quality
	Non-performing loans	$	7,638		$	891		$	1,383
	Real estate owned	$	2,788		$	3,256		$	2,572
	Non-performing assets	$	10,426		$	4,147		$	3,955
	Non-performing loans to total loans		0.52 %			0.06 %			0.09 %
	Non-performing assets to total assets		0.58 %			0.23 %			0.23 %
	Year-to-date net charge-offs (recoveries)	$	162		$	155		$	(247)
	Allowance for credit losses to non-performing loans		152.41 %			1279.01 %			835.14 %
	Allowance for credit losses to total loans		0.79 %			0.78 %			0.79 %
Other Data
	Cash dividends declared and paid	$	0.070		$	0.050		$	0.230
	Shares outstanding		6,365,711			6,408,625			6,393,081
	Book and tangible book value per share (2)	$	21.72		$	21.26		$	20.70
	Accumulated other comprehensive loss (AOCI) per share		(2.04)			(2.09)			(2.37)
	Book and tangible book value per share, excluding AOCI (1) (2)		23.76		$	23.35		$	23.07
	Closing market price per common share	$	19.90		$	20.00		$	21.52
	Closing price to book value ratio		91.62 %			94.08 %			103.95 %
	Tangible common equity to tangible assets ratio		7.66 %			7.60 %			7.58 %
	Bank regulatory leverage ratio		9.22 %			9.35 %			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 $1.8 million, or 23.0%, from $7.8 million for the three months ended June 30, 2024 to $9.6 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 $15.0 million, or 0.9%, from $1.664 billion to $1.679 billion, driven primarily by increases in taxable loans and interest earning deposits.
• Average net interest-earning assets declined $0.6 million, or 0.2%, from $281.4 million to $280.8 million, due primarily to a $11.5 million decrease in noninterest-bearing deposits and a $5.1 million increase in noninterest earning assets, offset by a $12.7 million increase in shareholders' equity.
• Cost of funds declined 37 bp from 3.69% to 3.32%, while the average yield earned on interest-earning assets increased 2 bp from 5.63% to 5.65%, resulting in tax-equivalent net interest rate spread expanding by 49 bp to 1.75% from 1.26% and tax-equivalent net interest margin expanding 40 bp from 2.00% to 2.40%. 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.

Net interest income increased $4.3 million, or 30.0%, from $14.2 million for the six months ended June 30, 2024 to $18.5 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 declined $36.6 million, or 2.1%, from $1.701 billion to $1.664 billion, driven primarily by decreases in taxable loans, taxable investments and interest earning deposits.
• Average net interest-earning assets declined $20.6 million, or 6.8%, from $303.9 million to $283.3 million, due primarily to a $35.3 million increase in noninterest earning assets, offset by a $12.4 million increase in shareholders' equity.
• Cost of funds declined 48 bp from 3.79% to 3.31%, while the average yield earned on interest-earning assets increased 14 bp from 5.48% to 5.62%, resulting in tax-equivalent net interest rate spread expanding by 69 bp to 1.69% from 1.00% and tax-equivalent net interest margin expanding 56 bp from 1.80% to 2.36%. 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.

Rate Sensitivity

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

		June 30, 2025
Interest-earning deposits	$	94,247
Investments available for sale		16,450
Loans receivable		425,380
Interest rate swaps (notional)		260,000
	$	796,077
Deposits	$	104,200
Senior debt		10,000
	$	114,200

The Company's subordinated det will adjust to floating rate during the third quarter of 2025.

Interest Rate Swaps

The Company has the following interest rate swaps designated as hedges as of June 30, 2025:

				Estimated
			Fair	Annual			Receive	Pay
Hedged Item		Notional	Value	Earnings	Term	Maturity	Rate	Rate
Fixed rate loans	$	150,000	(1,940)	(525)	3 Yrs	10/1/2026	4.34 %	4.69 %
Fixed rate loans		75,000	38	473	2 Yrs	9/1/2026	4.34 %	3.71 %
Floating rate deposit		35,000	21	242	1.5 Yrs	10/22/2026	4.34 %	3.65 %
	$	260,000	(1,881)	190

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
		June 30,		March 31,		December 31,		September 30,		June 30,
		2025		2025		2024		2024		2024
Provision for (recovery of) credit losses	$	138		64		480		(1,282)		(499)
Net charge-offs (recoveries)		7		155		11		-15		-13

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 June 30
(In thousands)		2025	2024	Change
Service charges and fees	$	353	371	(18)
Bank owned life insurance		55	55	-
Realized gain (loss) on sale of investment securities available for sale		(8)	(8)	-
Realized and unrealized loss on equity securities		(6)	(7)	1
Gain (loss) on sale of loans		-	29	(29)
Wealth management		223	217	6
Swap fees		310	-	310
Other		11	15	(4)
Total noninterest income	$	938	672	266

Noninterest income increased to $0.9 million in the second quarter of 2025 from $0.7 million in the same quarter of 2024.  The following factors had an impact on noninterest income during these periods:

• Swap fees increased $0.3 million due to an increased demand for customers wanting to lock in a fixed interest rate on loans and the Company desire to increase its floating rate 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.

		Six Months Ended June 30
(In thousands)		2025	2024	Change
Service charges and fees	$	737	753	(16)
Bank owned life insurance		110	110	-
Realized gain (loss) on sale of investment securities available for sale		(147)	69	(216)
Realized and unrealized loss on equity securities		(10)	(27)	17
Gain on sale of loans		3	26	(23)
Gain (loss) on sale of fixed assets		5	30	(25)
Wealth management		442	418	24
Swap fees		310	51	259
Other		16	24	(8)
Total noninterest income	$	1,466	1,454	12

Noninterest income was $1.5 million during the six months ended June 30, 2025 and 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 half of 2024 due to management's decision during January, 2025 to sell a municipal bond at a loss that was in close proximity to the California wildfires.
• Swap fees increased $0.3 million due to an increased demand for customers wanting to lock in a fixed interest rate on loans and the Company desire to increase its floating rate 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.

Noninterest Expense

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

		Three Months Ended June 30
(In thousands)		2025	2024	Change
Compensation and employee benefits	$	3,549	3,005	544
Occupancy		766	643	123
Furniture and equipment		293	269	24
Data processing		670	608	62
FDIC insurance		327	364	(37)
Office		189	180	9
Advertising		111	102	9
Professional fees		659	551	108
Real Estate Owned		(59)	-	(59)
Other noninterest expense		410	295	115
Total noninterest expense	$	6,915	6,017	898

Noninterest expense increased $0.9 million, or 14.9%, from $6.0 million for the three months ended June 30, 2024 to $6.9 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 $0.5 million, or 18.1%, due primarily to an increase in incentive accruals and bonuses tied to forecasted 2025 performance as well as merit increases. An increase in FTE employees from 107 to 112 between the periods also contributed to the increase.
• Occupancy and furniture and equipment expenses increased by a combined $0.1 million, or 16.1%, due to the opening of the Johnson City financial center on July 1, 2024, offset, in part, by the elimination of expenses for formerly leased facilities that the Company no longer occupies.
• Professional fees increased $0.1 million, or 19.6%, due to the June, 2025 payment of $0.2 million of legal expenses related to corporate and strategic initiatives.

		Six Months Ended June 30
(In thousands)		2025	2024	Change
Compensation and employee benefits	$	7,077	5,997	1,080
Occupancy		1,516	1,231	285
Furniture and equipment		625	514	111
Data processing		1,336	1,054	282
FDIC insurance		706	747	(41)
Office		355	346	9
Advertising		207	202	5
Professional fees		1,084	1,150	(66)
Real Estate Owned		(36)	-	(36)
Other noninterest expense		657	577	80
Total noninterest expense	$	13,527	11,818	1,709

Noninterest expense increased $1.7 million, or 14.5%, from $11.8 million for the six months ended June 30, 2024 to $13.5 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 $1.1 million, or 18.0%, due primarily to an increase in incentive accruals and bonuses tied to forecasted 2025 performance as well as merit increases. An increase in FTE employees from 107 to 112 between the comparable periods also contributed to the increase.
• Occupancy and furniture and equipment expenses increased by a combined $0.4 million, or 22.7%, 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.
• Data processing expense increased $0.3 million, or 26.7%, due primarily to the impact of a $0.1 million accrual reversal in the first half of 2024 as well as an increase in the cost of several key vendors.

Income Taxes

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

Three Months Ended June 30
2025	2024
19.23 %	21.14 %
Six Months Ended June 30
2025	2024
20.02 %	20.58 %

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 2024 due to higher utilization of state tax credits.

Balance Sheet

Total assets increased $60.0 million, or 3.4%, from $1.746 billion at December 31, 2024 to $1.806 billion at June 30, 2025.  The change was primarily driven by the following factors:

• Cash and cash equivalents increased $42.1 million, or 55.8%, due to deposit growth outpacing loan growth for the first six months of 2025.
• Available for sale investment security balances increased $3.7 million, or 3.2%, primarily due to a $3.0 million improvement in the fair value of the underlying bonds.

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

		June 30, 2025			December 31, 2024
		Estimated	Net		Estimated	Net
		Fair	Unrealized		Fair	Unrealized
		Value	Gain (Loss)		Value	Gain (Loss)
(in thousands)
Agency MBS / CMO	$	15,143	(1,580)		11,560	(1,960)
Agency multifamily (non-guaranteed)		5,753	(533)		7,081	(750)
Agency floating rate		8,376	1		6,647	18
Business Development Companies		3,609	(145)		3,522	(236)
Corporate		22,108	(1,254)		22,832	(1,860)
Municipal		26,227	(6,327)		25,987	(7,169)
Non-agency MBS / CMO		35,400	(7,710)		35,331	(8,566)
	$	116,616	(17,548)		112,960	(20,523)

Non-agency MBS/CMO have an average credit-enhancement of approximately 33% as of June 30, 2025.  Municipal securities are generally rated AA or higher. 

• The Company did not have any securities classified as held-to-maturity as of June 30, 2025 and December 31, 2024.
• Loans receivable increased $15.3 million, or 1.0%, from $1.463 billion at December 31, 2024 to $1.478 billion at June 30, 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 June 30, 2025 as compared to 325% at December 31, 2024. The following summarizes changes in loan balances over the last five quarters:

		June 30,		March 31,		December 31,		September 30,		June 30,
		2025		2025		2024		2024		2024
(in thousands)
Residential construction	$	18,811		19,636		14,831		18,957		18,859
Other construction		51,846		51,047		60,474		48,991		79,309
Farmland		8,192		7,577		4,513		9,462		9,539
Home equity		60,625		56,588		57,972		53,407		53,670
Residential		445,966		444,620		449,056		466,107		459,572
Multi-family		125,803		121,511		114,634		115,069		115,530
Owner-occupied commercial		251,842		252,764		252,615		260,981		244,344
Non-owner occupied commercial		395,038		389,666		382,136		367,918		356,914
Commercial & industrial		108,151		114,899		115,234		122,096		124,712
PPP Program		50		66		83		101		119
Consumer		12,068		11,112		11,559		9,409		9,562
	$	1,478,392		1,469,486		1,463,107		1,472,498		1,472,130

The following summarizes the industry components of the Company's non-owner occupied commercial real estate loans as of June 30, 2025.  Office loans are primarily comprised of low-rise office space.

		Loan		% of Total
		Balance		Loans
Hotels	$	91,328		6.2 %
Retail		86,207		5.8 %
Office		68,809		4.7 %
Marina		23,202		1.6 %
Campground		23,803		1.6 %
Warehouse		21,980		1.5 %
Mini-storage		21,967		1.5 %
Vacation Rentals		21,725		1.5 %
Car Wash		16,476		1.1 %
Entertainment		8,392		0.6 %
Restaurant		4,029		0.3 %
Other		7,120		0.5 %
	$	395,038		26.7 %

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

		June 30,		December 31,
		2025		2024
Tri-Cities	$	191,918		189,287
Knoxville		1,011,226		1,019,266
Nashville		275,248		254,554
	$	1,478,392		1,463,107

• Other real estate owned increased $0.2 million, or 8.4%, from $2.6 million at December 31, 2024 to $2.8 million at June 30, 2025. The following summarizes the detail of Other real estate owned as of the periods indicated:

		June 30,		December 31,
		2025		2024
Residential	$	2,572		2,572
Land		216		-
	$	2,788		2,572

• Total deposits increased $58.1 million, or 3.8%, from $1.527 billion at December 31, 2024 to $1.585 billion at June 30, 2025.

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

 

		June 30,		March 31,		December 31,		September 30,		June 30,
		2025		2025		2024		2024		2024
(in thousands)
Non-interest bearing transaction	$	264,725		248,711		248,298		268,563		285,446
NOW and money market		503,216		462,367		431,629		437,579		415,772
Savings		185,815		189,814		189,246		207,466		227,282
Retail time deposits		364,027		372,741		370,989		382,386		378,944
		1,317,783		1,273,633		1,240,162		1,295,994		1,307,444
Wholesale time deposits		267,072		296,578		286,552		255,739		247,329
Total deposits	$	1,584,855		1,570,211		1,526,714		1,551,733		1,554,773

The following summarizes the composition of wholesale time deposits as of June 30, 2025:

					Original
Type		Principal	Rate	Maturity	Term
(in thousands)
Brokered CD		25,000	4.15 %	Nov, 2025	6 months
Brokered CD		555	4.75 %	Dec, 2025	2 Yr
Brokered CD		20,000	4.10 %	Jan, 2026	15 Months
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		78,465	4.87 %	Through June 17, 2027	2.5 Yrs or Less
	$	267,072	4.67 %

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

		June 30		December 31,
		2025		2024
Tri-Cities	$	342,796		329,912
Knoxville		732,654		688,049
Nashville		96,541		100,928
	$	1,171,991		1,118,889

 

• FHLB borrowings were $50.0 million at June 30, 2025 and December 31, 2024 and consisted of the following at June 30, 2025:

 

	Amounts	Original	Current	Maturity
	(000's)	Term	Rate	Date
$	25,000	1 month	4.40 %	07/09/25
	15,000	1 Year	4.53 %	08/26/25
	10,000	2 Years	4.38 %	11/05/26
$	50,000		4.44 %

 

• Total equity increased $5.9 million, or 4.5%, from $132.4 million at December 31, 2024 to $138.3 million at June 30, 2025. The following summarizes the components of the change in total shareholders' equity and tangible book value per share for the six months ended June 30, 2025:

 

		Total	Tangible
		Shareholders'	Book Value
		Equity	Per Share
(In thousands)
December 31, 2024	$	132,353	20.70
Net income		4,985	0.79
Dividends paid		(768)	(0.12)
Stock compensation		533	0.08
Share repurchases from stock compensation		(49)	(0.01)
Share repurchases		(1,003)	(0.16)
Change in fair value of investments available for sale		2,206	0.35
June 30, 2025	$	138,257	21.72	*
* Sum of the individual components may not equal the total

The Company's tangible equity to tangible assets ratio increased to 7.66% at June 30, 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 June 30, 2025, with the Bank maintaining a regulatory leverage ratio of 9.22% at June 30, 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 six months ended June 30, 2025.

Asset Quality

Non-performing loans to total loans increased to 0.52% at June 30, 2025 from 0.09% at December 31, 2024.  Non-performing assets to total assets increased to 0.58% at June 30, 2025 from 0.23% at December 31, 2024.  The following summarizes the composition of non-performing loans as of June 30, 2025:

No. of	Collateral		Loan	Collateral
Properties	Type		Amount	Value
2	Non-owner occupied CRE	$	5,872	15,048
1	Owner occupied CRE		308	315
4	1-4 family residential		1,342	4,102
1	Commercial & industrial (SBA)		116	116
8		$	7,638	19,581

Other real estate owned of $2.8 million at June 30, 2025 is comprised of two properties for which no remaining loss on sale is anticipated.  Net charge-offs of $0.2 million were recognized during the six months ended June 30, 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 was 0.79% at both June 30, 2025 and December 31, 2024.  Coverage of non-performing loans by the allowance for credit losses was more than 1.5 to 1 at June 30, 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 June 30, 2025 have been individually evaluated for collateral adequacy and did not require additional specific reserves.

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," "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.

Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in thousands, except share data)
			Three Months Ended					Six Months Ended
			June 30,	March 31,	June 30,			June 30,	June 30,
			2025	2025	2024			2025	2024
Interest income
	Loans	$	21,102	20,395	20,542		$	41,497	40,388
	Investment securities - taxable		1,061	1,028	1,112			2,089	2,435
	Investment securities - tax exempt		30	30	29			60	58
	Dividends and other		992	758	1,133			1,750	2,459
			23,185	22,211	22,816			45,396	45,340
Interest expense
	Savings		1,178	1,197	1,859			2,375	3,937
	Interest bearing transaction accounts		3,850	3,513	4,175			7,363	7,823
	Time certificates of deposit of $250,000 or more		4,141	4,238	4,302			8,379	9,162
	Other time deposits		3,514	3,478	3,569			6,992	7,222
	Total deposits		12,683	12,426	13,905			25,109	28,144
	Senior debt		183	229	405			412	810
	Subordinated debt		165	164	164			329	328
	FHLB advances		565	485	549			1,050	1,828
			13,596	13,304	15,023			26,900	31,110
Net interest income			9,589	8,907	7,793			18,496	14,230
Provision for (recovery of) credit losses			138	64	(499)			202	(968)
Net interest income after provision for (recovery of) credit losses			9,451	8,843	8,292			18,294	15,198
Noninterest income
	Service charges and fees		353	384	371			737	753
	Bank owned life insurance		55	55	55			110	110
	Realized gain (loss) on sale of investment securities available for sale		(8)	(139)	(8)			(147)	69
	Realized and unrealized loss on equity securities		(6)	(4)	(7)			(10)	(27)
	Gain on sale of loans		-	3	29			3	26
	Gain on sale of fixed assets		-	5	-			5	30
	Wealth management		223	219	217			442	418
	Swap fees		310	-	-			310	51
	Other		11	5	15			16	24
			938	528	672			1,466	1,454
Noninterest expense
	Compensation and employee benefits		3,549	3,528	3,005			7,077	5,997
	Occupancy		766	750	643			1,516	1,231
	Furniture and equipment		293	332	269			625	514
	Data processing		670	666	608			1,336	1,054
	FDIC insurance		327	379	364			706	747
	Office		189	166	180			355	346
	Advertising		111	96	102			207	202
	Professional fees		659	425	551			1,084	1,150
	Real estate owned expense (recovery)		(59)	23	-			(36)	-
	Other noninterest expense		410	247	295			657	577
			6,915	6,612	6,017			13,527	11,818
Income before income taxes			3,474	2,759	2,947			6,233	4,834
Income taxes			668	580	623			1,248	995
Net income		$	2,806	2,179	2,324		$	4,985	3,839
Earnings  per common share:
	Basic	$	0.45	0.35	0.37		$	0.79	0.61
	Diluted	$	0.45	0.35	0.37		$	0.79	0.61
Weighted average common shares outstanding:
	Basic		6,273,181	6,291,244	6,264,564			6,282,163	6,258,178
	Diluted		6,283,413	6,305,674	6,270,308			6,294,563	6,267,261

 

Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
			June 30,			March 31,			December 31,
			2025			2025			2024
Assets
Cash and due from banks		$	23,463		$	20,232		$	15,819
Interest-earning deposits in other banks			94,247			95,438			59,717
	Cash and cash equivalents		117,710			115,670			75,536
Investments available for sale			116,616			115,290			112,960
Equity securities			2,716			2,706			2,695
Premises and equipment held for sale			3,762			3,762			3,762
Loans receivable			1,478,392			1,469,486			1,463,107
Allowance for credit losses			(11,641)			(11,396)			(11,550)
	Net loans receivable		1,466,751			1,458,090			1,451,557
Premises and equipment, net			60,006			60,478			61,215
Accrued interest receivable			5,487			5,804			5,587
Other real estate owned			2,788			3,256			2,572
Bank owned life insurance			10,301			10,245			10,190
Restricted stock			4,546			3,640			4,317
Deferred tax assets, net			7,204			7,302			7,762
Other assets			7,784			7,473			7,516
Total assets		$	1,805,671		$	1,793,716		$	1,745,669
Liabilities and Shareholders' Equity
Noninterest-bearing deposits		$	264,725		$	248,711		$	248,298
Interest-bearing deposits			1,053,058			1,024,922			991,864
Wholesale deposits			267,072			296,578			286,552
	Total deposits		1,584,855			1,570,211			1,526,714
FHLB borrowings			50,000			50,000			50,000
Senior debt, net			10,000			12,000			14,000
Subordinated debt, net			10,000			9,985			9,971
Accrued interest payable			2,821			4,922			4,435
Post-employment liabilities			3,339			3,314			3,285
Other liabilities			6,399			7,048			4,911
Total liabilities			1,667,414			1,657,480			1,613,316
Total shareholders' equity			138,257			136,236			132,353
Total liabilities and shareholders' equity		$	1,805,671		$	1,793,716		$	1,745,669

 

Appendix A - Reconciliation of Non-GAAP Financial Measures
		Three Months Ended			Six Months Ended
		June 30			June 30
		(Dollars in thousands, except per share data)			(Dollars in thousands, except per share data)
		2025	2024		2025	2024
Adjusted Net Income
Net income (GAAP)	$	2,806	2,324	$	4,985	3,839
Realized (gain) loss on sale of investment securities available for sale		8	8		147	(69)
Realized and unrealized loss on equity securities		6	7		10	27
Gain on sale of fixed assets		-	-		(5)	(30)
Gain on sale of real estate owned		(75)	-		(75)	-
Corporate and strategic initiatives		243	-		243	-
Provision for (recovery of) credit losses		138	(499)		202	(968)
Net (charge-offs) recoveries of credit losses		(7)	13		(162)	243
Tax effect of adjustments		(82)	123		(94)	208
Adjusted net income (Non-GAAP)	$	3,037	1,976	$	5,251	3,250
Adjusted Diluted Earnings Per Share
Diluted earnings per share (GAAP)	$	0.45	0.37	$	0.79	0.61
Realized (gain) loss on sale of investment securities available for sale		0.00	0.00		0.02	(0.01)
Realized and unrealized loss on equity securities		0.00	0.00		0.00	0.00
Gain on sale of fixed assets		-	-		(0.00)	(0.00)
Gain on sale of real estate owned		(0.01)	-		(0.01)	-
Corporate and strategic initiatives		0.04	-		0.04	-
Provision for (recovery of) credit losses		0.02	(0.08)		0.03	(0.15)
Net (charge-offs) recoveries of credit losses		(0.00)	0.00		(0.03)	0.04
Tax effect of adjustments		(0.01)	0.02		(0.01)	0.03
Adjusted diluted earnings per share (Non-GAAP)	$	0.48	0.32	$	0.83	0.52
Adjusted Return on Average Assets
Return on average assets (GAAP)		0.63 %	0.53 %		0.56 %	0.43 %
Realized (gain) loss on sale of investment securities available for sale		0.00 %	0.00 %		0.02 %	-0.01 %
Realized and unrealized loss on equity securities		0.00 %	0.00 %		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		-0.02 %	0.00 %		-0.01 %	0.00 %
Corporate and strategic initiatives		0.05 %	0.00 %		0.03 %	0.00 %
Provision for (recovery of) credit losses		0.03 %	-0.11 %		0.02 %	-0.11 %
Net (charge-offs) recoveries of credit losses		0.00 %	0.00 %		-0.02 %	0.03 %
Tax effect of adjustments		-0.02 %	0.03 %		-0.01 %	0.02 %
Adjusted return on average assets (Non-GAAP)		0.68 %	0.45 %		0.59 %	0.37 %
Adjusted Return on Average Equity
Return on average equity (GAAP)		8.17 %	7.46 %		7.31 %	6.20 %
Realized (gain) loss on sale of investment securities available for sale		0.02 %	0.03 %		0.22 %	-0.11 %
Realized and unrealized loss on equity securities		0.02 %	0.02 %		0.01 %	0.04 %
Gain on sale of fixed assets		0.00 %	0.00 %		-0.01 %	-0.05 %
Gain on sale of real estate owned		-0.22 %	0.00 %		-0.11 %	0.00 %
Corporate and strategic initiatives		0.71 %	0.00 %		0.36 %	0.00 %
Provision for (recovery of) credit losses		0.40 %	-1.60 %		0.30 %	-1.56 %
Net (charge-offs) recoveries of credit losses		-0.02 %	0.04 %		-0.24 %	0.39 %
Tax effect of adjustments		-0.24 %	0.40 %		-0.14 %	0.34 %
Adjusted return on average equity (Non-GAAP)		8.84 %	6.34 %		7.70 %	5.25 %

 

Appendix A - Reconciliation of Non-GAAP Financial Measures, Continued
		Three Months Ended			Six Months Ended
		June 30			June 30
		(Dollars in thousands, except per share data)			(Dollars in thousands, except per share data)
		2025	2024		2025	2024
Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP)	$	1.55 %	1.36 %	$	1.52 %	1.33 %
Corporate and strategic initiatives		-0.05 %	0.00 %		-0.03 %	0.00 %
Noninterest expense to average assets (Non-GAAP)	$	1.49 %	1.36 %	$	1.50 %	1.33 %
Pre-tax, Pre-Provision Earnings
Net income (GAAP)	$	2,806	2,324	$	4,985	3,839
Income taxes		668	623		1,248	995
Provision for (recovery of) credit losses		138	(499)		202	(968)
Pre-tax, pre-provision earnings (non-GAAP)	$	3,612	2,448	$	6,435	3,866
Pre-tax, Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP)		0.63 %	0.53 %	$	0.56 %	0.43 %
Income taxes		0.15 %	0.14 %		0.14 %	0.11 %
Provision for (recovery of) credit losses		0.03 %	-0.11 %		0.02 %	-0.11 %
Pre-tax, pre-provision return on average assets (non-GAAP)		0.81 %	0.55 %	$	0.73 %	0.44 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP)	$	21.72	19.83
Impact of AOCI per share		2.04	2.57
Book and tangible book value per share, excluding AOCI (non-GAAP)	$	23.76	22.39

 

Appendix B - Tax Equivalent Net Interest Margin Analysis
			For the Three Months Ended June 30,
			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	$	1,440,492	21,102	5.88 %		$	1,431,221	20,542	5.77 %
	Loans - imputed tax credits (2)		27,430	461	6.75 %			29,057	488	6.75 %
	Investments - taxable		114,877	1,061	3.70 %			115,022	1,112	3.89 %
	Investments - tax exempt (1)		4,120	38	3.70 %			4,136	37	3.57 %
	Interest earning deposits		86,288	884	4.11 %			79,124	964	4.90 %
	Other investments, at cost		5,957	106	7.14 %			5,581	169	12.18 %
	Total interest-earning assets		1,679,164	23,652	5.65 %			1,664,141	23,312	5.63 %
	Noninterest earning assets		110,553					105,434
	Total assets	$	1,789,717				$	1,769,575
Interest-bearing liabilities:
	Interest-bearing transaction accounts	$	131,199	1,142	3.49 %		$	139,641	1,368	3.94 %
	Savings accounts		186,028	1,179	2.54 %			241,012	1,859	3.10 %
	Money market accounts		346,173	2,707	3.14 %			281,763	2,807	4.01 %
	Retail time deposits		373,501	3,738	4.01 %			378,057	4,218	4.49 %
	Wholesale time deposits		285,272	3,916	5.51 %			251,649	3,653	5.84 %
	Total interest bearing deposits		1,322,173	12,682	3.85 %			1,292,122	13,905	4.33 %
	Senior debt		10,000	183	7.34 %			19,000	405	8.57 %
	Subordinated debt		9,995	165	6.62 %			9,942	164	6.63 %
	Federal Home Loan Bank advances		56,154	565	4.04 %			61,649	549	3.58 %
	Total interest-bearing liabilities		1,398,322	13,595	3.90 %			1,382,713	15,023	4.37 %
	Noninterest-bearing deposits		240,341					251,882
	Other noninterest-bearing liabilities		13,694					10,331
	Total liabilities		1,652,357					1,644,926
	Total shareholders' equity		137,360					124,649
	Total liabilities and shareholders' equity	$	1,789,717				$	1,769,575
	Tax-equivalent net interest income			10,057					8,289
	Net interest-earning assets (3)	$	280,842				$	281,428
	Average interest-earning assets to interest-
	bearing liabilities		120 %					120 %
	Tax-equivalent net interest rate spread (4)		1.75 %					1.26 %
	Tax equivalent net interest margin (5)		2.40 %					2.00 %
	(1)  Tax exempt investments are calculated assuming a 21% federal tax rate
	(2)  Reflects the tax equivalent yield of a 5% state tax credit assuming a 26% federal and state tax rate
	(3)  Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities
	(4)  Tax-equivalent net interest rate spread represents the difference between the tax equivalent yield on average
	interest-earning assets and the cost of average interest-bearing liabilities.
	(5)  Tax equivalent net interest margin represents tax equivalent net interest income divided by average total
	interest-earning assets

 

Appendix B - Tax Equivalent Net Interest Margin Analysis
			For the Six Months Ended June 30,
			2025					2024
			Average					Average
			Outstanding		Yield /			Outstanding		Yield /
			Balance	Interest	Rate			Balance	Interest	Rate
			(Dollars in thousands)
Interest-earning Assets:					2.90 %
	Loans, including loans held for sale	$	1,435,261	41,497	5.83 %		$	1,450,308	40,388	5.60 %
	Loans - imputed tax credits (2)		27,922	935	6.75 %			29,249	982	6.75 %
	Investments - taxable		113,311	2,089	3.72 %			120,701	2,435	4.06 %
	Investments - tax exempt (1)		4,172	76	3.67 %			4,210	73	3.51 %
	Interest earning deposits		78,081	1,515	3.91 %			90,010	2,091	4.67 %
	Other investments, at cost		5,646	233	8.32 %			6,467	369	11.47 %
	Total interest-earning assets		1,664,393	46,345	5.62 %			1,700,945	46,338	5.48 %
	Noninterest earning assets		110,610					75,360
	Total assets	$	1,775,003				$	1,776,305
Interest-bearing liabilities:
	Interest-bearing transaction accounts	$	130,415	2,242	3.47 %		$	127,310	2,445	3.86 %
	Savings accounts		190,759	2,376	2.51 %			249,582	3,937	3.17 %
	Money market accounts		328,940	5,120	3.14 %			258,567	5,379	4.18 %
	Retail time deposits		371,327	7,480	4.06 %			387,383	8,520	4.42 %
	Wholesale time deposits		287,983	7,890	5.52 %			270,816	7,863	5.84 %
	Total interest bearing deposits		1,309,424	25,108	3.87 %			1,293,658	28,144	4.37 %
	Senior debt		11,333	412	7.33 %			19,500	810	8.35 %
	Subordinated debt		9,988	329	6.64 %			9,934	328	6.64 %
	Federal Home Loan Bank advances		50,331	1,050	4.21 %			73,956	1,828	4.97 %
	Total interest-bearing liabilities		1,381,076	26,899	3.93 %			1,397,048	31,110	4.48 %
	Noninterest-bearing deposits		244,122					244,137
	Other noninterest-bearing liabilities		13,481					11,252
	Total liabilities		1,638,679					1,652,437
	Total shareholders' equity		136,311					123,868
	Total liabilities and shareholders' equity	$	1,774,990				$	1,776,305
	Tax-equivalent net interest income			19,446					15,228
	Net interest-earning assets (3)	$	283,317				$	303,897
	Average interest-earning assets to interest-
	bearing liabilities		121 %					122 %
	Tax-equivalent net interest rate spread (4)		1.69 %					1.00 %
	Tax equivalent net interest margin (5)		2.36 %					1.80 %
	(1)  Tax exempt investments are calculated assuming a 21% federal tax rate
	(2)  Reflects the tax equivalent yield of a 5% state tax credit assuming a 26% federal and state tax rate
	(3)  Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities
	(4)  Tax-equivalent net interest rate spread represents the difference between the tax equivalent yield on average
	interest-earning assets and the cost of average interest-bearing liabilities.
	(5)  Tax equivalent net interest margin represents tax equivalent net interest income divided by average total
	interest-earning assets

 

Appendix C - Reconciliation of Prior Period Non-GAAP Financial Measures
		Three Months Ended
		(Dollars in thousands, except per share data)
		March 31, 2025	December 31, 2024	September 30, 2024
Adjusted Net Income
Net income (GAAP)	$	2,179	2,092	2,992
Realized loss on sale of investment securities available for sale		139	-	-
Realized and unrealized (gain) loss on equity securities		4	58	(57)
Gain on sale of fixed assets		(5)	-	-
Provision for (recovery of) credit losses		64	480	(1,282)
Net (charge-offs) recoveries of credit losses		(155)	(11)	15
Software conversion expense		-	-	271
Tax effect of adjustments		(12)	(138)	275
Adjusted net income (Non-GAAP)	$	2,214	2,481	2,214
Adjusted Diluted Earnings Per Share
Diluted earnings per share (GAAP)	$	0.35	0.33	0.48
Realized loss on sale of investment securities available for sale		0.02	-	-
Realized and unrealized (gain) loss on equity securities		0.00	0.01	(0.01)
Gain on sale of fixed assets		(0.00)	-	-
Provision for (recovery of) credit losses		0.01	0.08	(0.20)
Net (charge-offs) recoveries of credit losses		(0.02)	(0.00)	0.00
Software conversion expense		-	-	0.04
Tax effect of adjustments		(0.00)	(0.02)	0.04
Adjusted diluted earnings per share (Non-GAAP)	$	0.35	0.39	0.35
Adjusted Return on Average Assets
Return on average assets (GAAP)		0.50 %	0.47 %	0.67 %
Realized loss on sale of investment securities available for sale		0.03 %	-	-
Realized and unrealized (gain) loss on equity securities		0.00 %	0.01 %	-0.01 %
Gain on sale of fixed assets		0.00 %	-	-
Provision for (recovery of) credit losses		0.01 %	0.11 %	-0.29 %
Net (charge-offs) recoveries of credit losses		-0.04 %	0.00 %	0.00 %
Software conversion expense		-	-	0.06 %
Tax effect of adjustments		0.00 %	-0.03 %	0.06 %
Adjusted return on average assets (Non-GAAP)		0.50 %	0.56 %	0.49 %
Adjusted Return on Average Equity
Return on average equity (GAAP)		6.43 %	6.32 %	9.17 %
Realized loss on sale of investment securities available for sale		0.41 %	-	-
Realized and unrealized (gain) loss on equity securities		0.01 %	0.18 %	-0.17 %
Gain on sale of fixed assets		-0.01 %	-	-
Provision for (recovery of) credit losses		0.19 %	1.45 %	-3.93 %
Net (charge-offs) recoveries of credit losses		-0.46 %	-0.03 %	0.05 %
Software conversion expense		-	-	0.83 %
Tax effect of adjustments		-0.04 %	-0.42 %	0.86 %
Adjusted return on average equity (Non-GAAP)		6.53 %	7.49 %	6.81 %

 

Appendix C - Reconciliation of Prior Period Non-GAAP Financial Measures, Continued
		Three Months Ended
		(Dollars in thousands, except per share data)
		March 31, 2025	December 31, 2024	September 30, 2024
Adjusted Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP)		1.50 %	1.40 %	1.46 %
Software conversion expense		0.00 %	0.00 %	-0.02 %
Adjusted noninterest expense to average assets (Non-GAAP)		1.50 %	1.40 %	1.45 %
Pre-tax Pre-Provision Earnings
Net income (GAAP)	$	2,179	2,092	2,992
Income taxes		580	869	740
Provision for (recovery of) credit losses		64	480	(1,282)
Pre-tax Pre-provision earnings (non-GAAP)	$	2,823	3,441	2,450
Pre-tax Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP)	$	0.50 %	0.47 %	0.67 %
Income taxes		0.13 %	0.20 %	0.17 %
Provision for (recovery of) credit losses		0.01 %	0.11 %	-0.29 %
Pre-tax Pre-provision return on average assets (non-GAAP)	$	0.64 %	0.78 %	0.55 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP)	$	21.26	20.70	20.83
Impact of AOCI per share		2.09	2.37	2.02
Book and tangible book value per share, excluding AOCI (non-GAAP)	$	23.35	23.07	22.85

 

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SOURCE Mountain Commerce Bancorp, Inc.

FAQ

What were Mountain Commerce Bancorp's (MCBI) Q2 2025 earnings per share?

MCBI reported $0.45 diluted earnings per share for Q2 2025, compared to $0.37 in Q2 2024.

What is the new dividend amount for MCBI stock?

MCBI declared a quarterly cash dividend of $0.07 per common share, payable on September 2, 2025 to shareholders of record as of August 4, 2025.

What are the terms of MCBI's new revolving line of credit?

The new $25 million line of credit matures on July 15, 2027, with interest at Prime Rate minus 0.50%, subject to a 5.00% floor. It's secured by 100% of the Bank's stock.

How did MCBI's net interest margin perform in Q2 2025?

MCBI's net interest margin improved to 2.40% in Q2 2025, up from 2.31% in Q1 2025 and 2.00% in Q2 2024.

What is MCBI's current asset quality status?

As of Q2 2025, MCBI reported non-performing assets of $10.4 million (0.58% of total assets) and an allowance for credit losses to total loans of 0.79%.