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

Rhea-AI Summary

Mountain Commerce Bancorp (OTCQX: MCBI) reported third-quarter 2025 results and declared a quarterly cash dividend of $0.07 per share, payable Dec 1, 2025 to holders of record Nov 3, 2025. For Q3 2025 the company reported net income $3.898M, diluted EPS $0.62, adjusted ROAA 0.86%, adjusted ROAE 10.92%, and tax-equivalent net interest margin of 2.50%. Nine-month net income was $8.883M with diluted EPS $1.41. Tangible common equity to tangible assets rose to 7.94% and the bank leverage ratio was 9.22%. Non-performing assets increased to $10.449M (0.58% of assets).

Positive

• Dividend declared: $0.07 per share, payable Dec 1, 2025
• Net interest income +23.3% YoY for Q3 2025
• Tax-equivalent NIM expanded to 2.50% (Q3 2024: 2.08%)
• Tangible common equity ratio increased to 7.94%
• Senior/subordinated debt reduced by $4M and $2M YTD

Negative

• Non-performing assets rose to $10.449M, 0.58% of assets
• Non-performing loans increased to $7.661M (0.52% of loans)
• Realized investment loss of $160k during the nine months ended Sep 30, 2025

KNOXVILLE, Tenn., Oct. 20, 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 nine months ended September 30, 2025.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.07 per common share, its twentieth consecutive quarterly dividend.  The dividend is payable on December 1, 2025 to shareholders of record as of the close of business on November 3, 2025.

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 increase with adjusted return on average assets and equity rising to 0.86% and 10.92%, respectively, for the third quarter of 2025, compared to 0.68% and 8.84%, respectively, in the second quarter of 2025.  We continued to see further improvements in our net interest margin, which improved from 2.40% in the second quarter of 2025 to 2.50% in the third quarter of 2025, and increased significantly from 2.08% one year ago in the quarter ended September 30, 2024.    

While we have experienced an increase in non-performing assets year-to-date, 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 1.46% during the third quarter of 2025, which continues to be nearly 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 7.94% at September 30, 2025 from 7.58% at December 31, 2024, with the Bank's leverage ratio finishing the third quarter of 2025 at 9.22%.  We also remain committed to paying down debt, with our senior debt declining by $4 million and our subordinated debt declining by $2 million for the nine months ended September 30, 2025.

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, given the current 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 nine months ended September 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 September 30
		(Dollars in thousands, except per share data)
		2025					2024
		GAAP		Adjusted (1)			GAAP		Adjusted (1)
Net income	$	3,898		3,858		$	2,992		2,214
Diluted earnings per share	$	0.62		0.62		$	0.48		0.35
Return on average assets (ROAA)		0.87 %		0.86 %			0.67 %		0.50 %
Return on average equity		11.03 %		10.92 %			9.17 %		6.79 %
Noninterest expense to average assets		1.46 %		1.46 %			1.46 %		1.45 %
Net interest margin (tax equivalent)		2.50 %		2.50 %			2.08 %		2.08 %
Pre-tax, pre-provision earnings (1)	$			4,781		$			2,450
Pre-tax, pre-provision ROAA (1)				1.07 %					0.55 %
(1) Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.

 

		For the Nine Months Ended September 30
		(Dollars in thousands, except per share data)
		2025					2024
		GAAP		Adjusted (1)			GAAP		Adjusted (1)
Net income	$	8,883		9,110		$	6,830		5,463
Diluted earnings per share	$	1.41		1.45		$	1.09		0.87
Return on average assets (ROAA)		0.67 %		0.68 %			0.51 %		0.41 %
Return on average equity		8.58 %		8.80 %			7.22 %		5.78 %
Noninterest expense to average assets		1.50 %		1.48 %			1.37 %		1.36 %
Net interest margin (tax equivalent)		2.37 %		2.37 %			1.88 %		1.88 %
Pre-tax, pre-provision earnings (1)	$			11,215		$			6,315
Pre-tax, pre-provision ROAA (1)				0.84 %					0.47 %
(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
		September 30	June 30	March 31		December 31		September 30
		GAAP	GAAP	GAAP		GAAP		GAAP
Net income	$	3,898	2,806	2,179		2,092		2,992
Diluted earnings per share	$	0.62	0.45	0.35		0.33		0.48
Return on average assets (ROAA)		0.87 %	0.63 %	0.50 %		0.47 %		0.67 %
Return on average equity		11.03 %	8.17 %	6.43 %		6.32 %		9.17 %
Noninterest expense to average assets		1.46 %	1.55 %	1.50 %		1.40 %		1.46 %
Net interest margin (tax equivalent)		2.50 %	2.40 %	2.31 %		2.29 %		2.08 %
Yield on interest-earning assets		5.61 %	5.65 %	5.58 %		5.69 %		5.70 %
Cost of funds		3.19 %	3.32 %	3.30 %		3.48 %		3.70 %
		2025				2024
		September 30	June 30	March 31		December 31		September 30
		Adjusted (1)	Adjusted (1)	Adjusted (2)		Adjusted (2)		Adjusted (2)
Net income	$	3,858	3,037	2,214		2,481		2,203
Diluted earnings per share	$	0.62	0.48	0.35		0.39		0.35
Return on average assets (ROAA)		0.86 %	0.68 %	0.50 %		0.56 %		0.49 %
Return on average equity		10.92 %	8.84 %	6.53 %		7.49 %		6.75 %
Noninterest expense to average assets		1.46 %	1.49 %	1.50 %		1.40 %		1.46 %
Pre-tax, pre-provision earnings	$	4,781	3,612	2,823		3,441		2,450
Pre-tax, pre-provision ROAA		1.07 %	0.81 %	0.64 %		0.78 %		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
			September 30,			June 30,			December 31,
			2025			2025			2024
			(Dollars in thousands, except share data)
Asset Quality
	Non-performing loans	$	7,661		$	7,638		$	1,383
	Real estate owned	$	2,788		$	2,788		$	2,572
	Non-performing assets	$	10,449		$	10,426		$	3,955
	Non-performing loans to total loans		0.52 %			0.52 %			0.09 %
	Non-performing assets to total assets		0.58 %			0.58 %			0.23 %
	Year-to-date net charge-offs (recoveries)	$	167		$	162		$	(247)
	Allowance for credit losses to non-performing loans		148.40 %			152.41 %			835.14 %
	Allowance for credit losses to total loans		0.77 %			0.79 %			0.79 %
Other Data
	Cash dividends declared and paid	$	0.070		$	0.070		$	0.230
	Shares outstanding		6,357,359			6,365,711			6,393,081
	Book and tangible book value per share (2)	$	22.50		$	21.72		$	20.70
	Accumulated other comprehensive loss (AOCI) per share		(1.85)			(2.04)			(2.37)
	Book and tangible book value per share, excluding AOCI (1) (2)		24.35		$	23.76		$	23.07
	Closing market price per common share	$	20.45		$	19.90		$	21.52
	Closing price to book value ratio		90.88 %			91.62 %			103.95 %
	Tangible common equity to tangible assets ratio		7.94 %			7.66 %			7.58 %
	Bank regulatory leverage ratio		9.22 %			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 $1.9 million, or 23.3%, from $8.3 million for the three months ended September 30, 2024 to $10.2 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 $11.5 million, or 0.7%, from $1.673 billion to $1.684 billion, driven primarily by increases in taxable loans and interest earning deposits.
• Average net interest-earning assets increased $2.8 million, or 1.0%, from $298.9 million to $301.8 million, due primarily to $10.9 million increase in shareholders' equity.
• Cost of funds declined 51 bp from 3.70% to 3.19% resulting in tax-equivalent net interest rate spread expanding by 54 bp to 1.83% from 1.29% and tax-equivalent net interest margin expanding 42 bp to 2.50% from 2.08%.  As noted above, cost of funds and the yield earned on interest-earning assets over the comparable period last year have been impacted by 125 bp of decreases in short-term interest rates by the Federal Reserve since September 2024.

Net interest income increased $6.2 million, or 27.5%, from $22.5 million for the nine months ended September 30, 2024 to $28.7 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 $1.7 million, or 0.1%, from $1.672 billion to $1.670 billion, driven primarily by decreases in taxable investments and interest earning deposits.
• Average net interest-earning assets increased $5.8 million, or 2.0%, from $282.8 million to $288.6 million, due primarily to a $11.9 million increase in shareholders' equity.
• Cost of funds declined 48 bp from 3.77% to 3.29%, while the average yield earned on interest-earning assets remained at 5.58%, resulting in tax-equivalent net interest rate spread expanding by 57 bp from 1.13% to 1.70% and tax-equivalent net interest margin expanding 49 bp from 1.88% to 2.37%. 

Rate Sensitivity

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

(In thousands)		September 30, 2025
Interest-earning deposits	$	90,070
Investments available for sale		15,277
Loans receivable		437,290
Interest rate swaps (notional)		260,000
	$	802,637
Deposits	$	105,846
Senior debt		10,000
Subordinated debt		7,995
	$	123,841

Interest owed on the Company's subordinated debt adjusted to a floating rate from its original fixed rate during the third quarter of 2025.

Interest Rate Swaps

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

				Estimated
			Fair	Annual			Receive	Pay
Hedged Item		Notional	Value	Earnings	Term	Maturity	Rate	Rate
(dollars in thousands)
Fixed rate loans	$	150,000	(1,712)	(585)	3 Yrs	10/1/2026	4.30 %	4.69 %
Fixed rate loans		75,000	(33)	444	2 Yrs	9/1/2026	4.30 %	3.71 %
Floating rate deposit		35,000	(13)	232	1.5 Yrs	10/22/2026	4.31 %	3.65 %
	$	260,000	(1,758)	91

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
		September 30,		June 30,		March 31,		December 31,		September 30,
(In thousands)		2025		2025		2025		2024		2024
Provision for (recovery of) credit losses	$	(33)		138		64		480		(1,282)
Net charge-offs (recoveries)		5		7		155		11		-15

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 September 30
(In thousands)		2025	2024	Change
Service charges and fees	$	404	389	15
Bank owned life insurance		56	56	-
Realized gain (loss) on sale of investment securities available for sale		(13)	-	(13)
Realized and unrealized loss on equity securities		29	57	(28)
Gain (loss) on sale of loans		4	12	(8)
Wealth management		239	193	46
Swap fees		75	-	75
Limited partnership income		352	-	352
Other		8	3	5
Total noninterest income	$	1,154	710	444

Noninterest income increased to $1.2 million in the third 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:

• 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 $0.1 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.

		Nine Months Ended September 30
(In thousands)		2025	2024	Change
Service charges and fees	$	1,140	1,142	(2)
Bank owned life insurance		167	166	1
Realized gain (loss) on sale of investment securities available for sale		(160)	69	(229)
Realized and unrealized loss on equity securities		18	30	(12)
Gain on sale of loans		6	39	(33)
Gain (loss) on sale of fixed assets		5	30	(25)
Wealth management		681	611	70
Swap fees		385	51	334
Limited partnership income		352	-	352
Other		25	26	(1)
Total noninterest income	$	2,619	2,164	455

Noninterest income increased to $2.6 million during the nine months ended September 30, 2025 from $2.2 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 nine 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 September 30
	(In thousands)		2025	2024	Change
	Compensation and employee benefits	$	3,384	2,904	480
	Occupancy		767	780	(13)
	Furniture and equipment		302	320	(18)
	Data processing		671	955	(284)
	FDIC insurance		363	371	(8)
	Office		200	214	(14)
	Advertising		89	121	(32)
	Professional fees		385	441	(56)
	Real Estate Owned		53	-	53
	Other noninterest expense		331	406	(75)
	Total noninterest expense	$	6,545	6,512	33

Noninterest expense was $6.5 million for both the three months ended September 30, 2025 and 2024. The following factors had an impact on noninterest expense during these periods:

• Compensation and employee benefits expense increased $0.5 million, or 16.5%, due primarily to an increase in incentive accruals and bonuses tied to forecasted 2025 performance as well as merit increases.  A decrease in FTE employees from 112 to 107 between the periods partially offset the increase.
• Data processing decreased $0.3 million, or 29.7%, due primarily to a $0.3 million one-time payment to a vendor in connection with the termination of a software relationship in the prior year's comparable period.

		Nine Months Ended September 30
(In thousands)		2025	2024	Change
Compensation and employee benefits	$	10,462	8,902	1,560
Occupancy		2,283	2,011	272
Furniture and equipment		928	834	94
Data processing		2,006	2,009	(3)
FDIC insurance		1,069	1,119	(50)
Office		557	560	(3)
Advertising		296	323	(27)
Professional fees		1,469	1,591	(122)
Real Estate Owned		17	-	17
Other noninterest expense		985	982	3
Total noninterest expense	$	20,072	18,331	1,741

Noninterest expense increased $1.7 million, or 9.5%, from $18.3 million for the nine months ended September 30, 2024 to $20.0 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 $1.6 million, or 17.5%, due primarily to an increase in incentive accruals and bonuses tied to forecasted 2025 performance as well as merit increases.  A decrease in FTE employees from 108 to 107 between the comparable periods partially offset the increase.
• Occupancy and furniture and equipment expenses increased by a combined $0.4 million, or 12.9%, 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.

Income Taxes

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

Three Months Ended September 30
2025	2024
19.03 %	19.83 %
Nine Months Ended September 30
2025	2024
19.58 %	20.26 %

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 3.3%, from $1.746 billion at December 31, 2024 to $1.803 billion at September 30, 2025.  The change was primarily driven by the following factors:

• Cash and cash equivalents increased $37.1 million, or 49.1%, due to deposit growth outpacing asset growth, in part because, as described below, the Company is intentionally managing its loan growth.
• Available for sale investment security balances increased $0.7 million, or 0.6%, primarily due to a $1.3 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:

		September 30, 2025			December 31, 2024
		Estimated	Net		Estimated	Net
		Fair	Unrealized		Fair	Unrealized
		Value	Gain (Loss)		Value	Gain (Loss)
(in thousands)
Agency MBS / CMO	$	11,318	(1,408)		11,560	(1,960)
Agency multifamily (non-guaranteed)		5,814	(449)		7,081	(750)
Agency floating rate		11,631	34		6,647	18
Business Development Companies		3,644	(108)		3,522	(236)
Corporate		20,270	(1,026)		22,832	(1,860)
Municipal		26,896	(5,613)		25,987	(7,169)
Non-agency MBS / CMO		34,721	(7,334)		35,331	(8,566)
	$	114,295	(15,904)		112,960	(20,523)

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

• The Company did not have any securities classified as held-to-maturity as of September 30, 2025 and December 31, 2024.
• Loans receivable increased $21.0 million, or 1.4%, from $1.463 billion at December 31, 2024 to $1.484 billion at September 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 336% of total risk-based capital as of September 30, 2025 as compared to 325% at December 31, 2024, while our AD&C concentration remains low at 32% of total risk-based capital as of September 30, 2025 as compared to 43% at December 31, 2024.  The following summarizes changes in loan balances over the last five quarters:

		September 30,		June 30,		March 31,		December 31,		September 30,
		2025		2025		2025		2024		2024
(in thousands)
Residential construction	$	23,446		18,811		19,636		14,831		18,957
Other construction		33,642		51,846		51,047		60,474		48,991
Farmland		10,531		8,192		7,577		4,513		9,462
Home equity		64,272		60,625		56,588		57,972		53,407
Residential		430,970		445,966		444,620		449,056		466,107
Multi-family		131,836		125,803		121,511		114,634		115,069
Owner-occupied commercial		266,357		251,842		252,764		252,615		260,981
Non-owner occupied commercial		403,709		395,038		389,666		382,136		367,918
Commercial & industrial		107,338		108,151		114,899		115,234		122,096
PPP Program		37		50		66		83		101
Consumer		11,924		12,068		11,112		11,559		9,409
	$	1,484,062		1,478,392		1,469,486		1,463,107		1,472,498

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

		Loan		% of Total
		Balance		Loans
Hotels	$	93,866		6.3 %
Retail		84,107		5.7 %
Office		86,183		5.8 %
Marina		23,096		1.6 %
Campground		23,584		1.6 %
Warehouse		21,670		1.5 %
Mini-storage		21,717		1.5 %
Vacation Rentals		24,888		1.7 %
Car Wash		5,394		0.4 %
Entertainment		8,216		0.6 %
Restaurant		3,900		0.3 %
Other		7,087		0.5 %
	$	403,709		27.2 %

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

		September 30,		December 31,
		2025		2024
Tri-Cities	$	189,113		189,287
Knoxville		1,004,532		1,019,266
Nashville		290,417		254,554
	$	1,484,062		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 September 30, 2025.  The following summarizes the detail of Other real estate owned as of the periods indicated:

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

• Total deposits increased $55.9 million, or 3.7%, from $1.527 billion at December 31, 2024 to $1.583 billion at September 30, 2025.

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

		September 30,		June 30,		March 31,		December 31,		September 30,
		2025		2025		2025		2024		2024
(in thousands)
Non-interest bearing transaction	$	257,199		264,725		248,711		248,298		268,563
NOW and money market		514,932		503,216		462,367		431,629		437,579
Savings		177,863		185,815		189,814		189,246		207,466
Retail time deposits		373,209		364,027		372,741		370,989		382,386
		1,323,203		1,317,783		1,273,633		1,240,162		1,295,994
Wholesale time deposits		259,438		267,072		296,578		286,552		255,739
Total deposits	$	1,582,641		1,584,855		1,570,211		1,526,714		1,551,733

The following summarizes core deposits, treasury deposits, and wholesale deposits and average interest rate as of the period indicated:

	September 30, 2025
(In thousands)	Balance	Rate
Core
Non-interest DDA	$       257,199	0.00 %
Interest DDA	39,571	0.75 %
Money Market	379,079	3.26 %
Savings	131,391	1.89 %
Retail CDs	373,209	4.08 %
Total Core	$  1,180,449	2.55 %
Treasury
Inspira	$         50,183	4.45 %
PMA/ICS/CDARS	92,571	3.81 %
Total Treasury	$      142,754	3.92 %
Wholesale
Brokered CDs	188,607	4.50 %
QwickRate CDs	70,831	4.78 %
Total Wholesale	$      259,438	4.58 %
Total Deposits	$  1,582,641	3.01 %

The following summarizes the composition of certificates of deposit by maturity and average interest rate as of September 30, 2025:

Maturity		Brokered CD				Qwickrate CD				Retail CD				Total
Date		Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
Q4 2025		25,555		4.16 %		11,526		4.89 %		74,918		4.03 %		111,999		4.15 %
Q1 2026		70,300		4.56 %		5,904		4.49 %		159,205		4.13 %		235,409		4.27 %
Q2 2026		-		-		14,439		5.52 %		51,867		4.03 %		66,306		4.35 %
Q3 2026		-		-		18,500		4.56 %		29,835		4.11 %		48,335		4.28 %
Q4 2026		48,551		4.50 %		14,983		4.39 %		22,771		4.04 %		86,305		4.36 %
Q1 2027		-		-		4,187		4.93 %		30,960		4.00 %		35,147		4.11 %
Q2 2027		44,201		4.60 %		1,044		4.10 %		1,796		4.17 %		47,041		4.57 %
Q3 2027		-		-		248		3.75 %		1,729		4.21 %		1,977		4.15 %
Thereafter		-		-		-				128		2.79 %		128		2.79 %
		188,607		4.50 %		70,831		4.78 %		373,209		4.08 %		632,647		4.28 %

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

		September 30,		December 31,
		2025		2024
Tri-Cities	$	349,521		329,912
Knoxville		711,949		688,049
Nashville		112,518		100,928
	$	1,173,988		1,118,889

• FHLB borrowings were $45.0 million at September 30, 2025 and December 31, 2024 and consisted of the following at September 30, 2025:

Amounts	Original	Current	Maturity
(000's)	Term	Rate	Date
15,000	1 Week	4.22 %	10/07/25
20,000	3 Month	4.26 %	12/16/25
10,000	2 Years	4.38 %	11/05/26
45,000		4.27 %

• Total equity increased $10.7 million, or 8.1%, from $132.4 million at December 31, 2024 to $143.1 million at September 30, 2025.  The following summarizes the components of the change in total shareholders' equity and tangible book value per share for the nine months ended September 30, 2025:

		Total	Tangible
		Shareholders'	Book Value
		Equity	Per Share
(In thousands)
December 31, 2024	$	132,353	20.70
Net income		8,883	1.41
Dividends paid		(1,214)	(0.19)
Stock compensation		706	0.11
Share repurchases from stock compensation		(54)	(0.01)
Share repurchases		(1,003)	(0.16)
Change in fair value of investments available for sale		3,387	0.53
September 30, 2025	$	143,058	22.50
* Sum of the individual components may not equal the total

The Company's tangible equity to tangible assets ratio increased to 7.94% at September 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 September 30, 2025, with the Bank maintaining a regulatory leverage ratio of 9.22% at September 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 nine months ended September 30, 2025.

Asset Quality

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

No. of	Collateral		Loan	Collateral
Properties	Type		Amount	Value
1	Multifamily residential	$	506	1,058
1	Owner occupied CRE		308	315
8	1-4 Family residential		6,782	11,225
10		$	7,596	12,598

Other real estate owned of $2.8 million at September 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 nine months ended September 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 declined to 0.77% at September 30, 2025 from 0.79% at both September 30, 2025 and December 31, 2024.  Coverage of non-performing loans by the allowance for credit losses was nearly 1.5 to 1 at September 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 September 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) risks associated with a prolonged 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; (viii) 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;  (ix) significant downturns in the business of one or more large customers; (x) effectiveness of our asset management activities in improving, resolving or liquidating lower quality assets; (xi) our inability to maintain the historical, long-term growth rate of our loan portfolio; (xii) risks of expansion into new geographic or product markets; (xiii) the possibility of increased compliance and operational costs as a result of increased regulatory oversight; (xiv) our inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xv) the ineffectiveness of our hedging strategies, or the unexpected counterparty failure or failure of the underlying hedges; (xvi) 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; (xvii) changes in capital levels and loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xviii) inadequate allowance for credit losses; (xix) results of regulatory examinations; (xx) 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; (xxi) loss of key personnel; and (xxii) adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, examinations or other legal and/or regulatory actions.  These risks and uncertainties may cause our actual results or performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Our future operating results depend on a number of factors which were derived utilizing numerous assumptions that could cause actual results to differ materially from those projected in forward-looking statements.

About Mountain Commerce Bancorp, Inc. and Mountain Commerce Bank

Mountain Commerce Bancorp, Inc. is the holding company for Mountain Commerce Bank.  The Company's shares of common stock trade on the OTCQX under the symbol "MCBI".

Mountain Commerce Bank is a state-chartered financial institution headquartered in Knoxville, TN. The Bank traces its history back over a century and serves Middle and East Tennessee through 7 branches located in Brentwood, Erwin, Johnson City (2), Bearden (Knoxville), West Knoxville and Unicoi.  The Bank focuses on responsive relationship banking of small and medium-sized businesses, professionals, affluent individuals, and those who value the personal service and attention that only a community bank can offer.  For further information, please visit us at www.mcb.com.

Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in thousands, except share data)
			Three Months Ended					Nine Months Ended
			September 30,	June 30,	September 30,			September 30,	September 30,
			2025	2025	2024			2025	2024
Interest income
	Loans	$	21,349	21,102	21,131		$	62,847	61,518
	Investment securities - taxable		1,024	1,061	1,100			3,113	3,534
	Investment securities - tax exempt		29	30	29			88	88
	Dividends and other		940	992	1,224			2,689	3,684
			23,342	23,185	23,484			68,737	68,824
Interest expense
	Savings		1,155	1,178	1,550			3,530	5,488
	Interest bearing transaction accounts		4,138	3,850	4,178			11,501	12,001
	Time certificates of deposit of $250,000 or more		3,828	4,141	4,319			12,207	13,480
	Other time deposits		3,043	3,514	3,710			10,035	10,931
	Total deposits		12,164	12,683	13,757			37,273	41,900
	Senior debt		181	183	347			592	1,157
	Subordinated debt		191	165	164			520	493
	FHLB advances		634	565	964			1,684	2,792
			13,170	13,596	15,232			40,069	46,342
Net interest income			10,172	9,589	8,252			28,668	22,482
Provision for (recovery of) credit losses			(33)	138	(1,282)			169	(2,250)
Net interest income after provision for (recovery of) credit losses			10,205	9,451	9,534			28,499	24,732
Noninterest income
	Service charges and fees		404	353	389			1,140	1,142
	Bank owned life insurance		56	55	56			167	166
	Realized gain (loss) on sale of investment securities available for sale		(13)	(8)	-			(160)	69
	Realized and unrealized gain (loss) on equity securities		29	(6)	57			18	30
	Gain on sale of loans		4	-	12			6	39
	Gain on sale of fixed assets		-	-	-			5	30
	Wealth management		239	223	193			681	611
	Swap fees		75	310	-			385	51
	Limited partnership income		352	-	-			352	-
	Other		8	11	3			25	26
			1,154	938	710			2,619	2,164
Noninterest expense
	Compensation and employee benefits		3,384	3,549	2,904			10,462	8,902
	Occupancy		767	766	780			2,283	2,011
	Furniture and equipment		302	293	320			928	834
	Data processing		671	670	955			2,006	2,009
	FDIC insurance		363	327	371			1,069	1,119
	Office		200	189	214			557	560
	Advertising		89	111	121			296	323
	Professional fees		385	659	441			1,469	1,591
	Real estate owned expense (recovery)		53	(59)	-			17	-
	Other noninterest expense		331	410	406			985	982
			6,545	6,915	6,512			20,072	18,331
Income before income taxes			4,814	3,474	3,732			11,046	8,565
Income taxes			916	668	740			2,163	1,735
Net income		$	3,898	2,806	2,992		$	8,883	6,830
Earnings  per common share:
	Basic	$	0.62	0.45	0.48		$	1.42	1.09
	Diluted	$	0.62	0.45	0.48		$	1.41	1.09
Weighted average common shares outstanding:
	Basic		6,251,027	6,273,181	6,271,047			6,271,670	6,262,499
	Diluted		6,270,773	6,283,413	6,279,212			6,290,357	6,271,068

 

Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
			September 30,			June 30,			December 31,
			2025			2025			2024
Assets
Cash and due from banks		$	22,528		$	23,463		$	15,819
Interest-earning deposits in other banks			90,070			94,247			59,717
	Cash and cash equivalents		112,598			117,710			75,536
Investments available for sale			113,617			116,616			112,960
Equity securities			2,763			2,716			2,695
Premises and equipment held for sale			3,762			3,762			3,762
Loans receivable			1,484,062			1,478,392			1,463,107
Allowance for credit losses			(11,369)			(11,641)			(11,550)
	Net loans receivable		1,472,693			1,466,751			1,451,557
Premises and equipment, net			59,552			60,006			61,215
Accrued interest receivable			5,567			5,487			5,587
Other real estate owned			2,788			2,788			2,572
Bank owned life insurance			10,358			10,301			10,190
Restricted stock			3,710			4,546			4,317
Deferred tax assets, net			6,946			7,204			7,762
Other assets			8,286			7,784			7,516
Total assets		$	1,802,640		$	1,805,671		$	1,745,669
Liabilities and Shareholders' Equity
Noninterest-bearing deposits		$	257,199		$	264,725		$	248,298
Interest-bearing deposits			1,066,004			1,053,058			991,864
Wholesale deposits			259,438			267,072			286,552
	Total deposits		1,582,641			1,584,855			1,526,714
FHLB borrowings			45,000			50,000			50,000
Senior debt, net			10,000			10,000			14,000
Subordinated debt, net			7,995			10,000			9,971
Accrued interest payable			2,921			2,821			4,435
Post-employment liabilities			3,357			3,339			3,285
Other liabilities			7,668			6,399			4,911
Total liabilities			1,659,582			1,667,414			1,613,316
Total shareholders' equity			143,058			138,257			132,353
Total liabilities and shareholders' equity		$	1,802,640		$	1,805,671		$	1,745,669

 

Appendix A - Reconciliation of Non-GAAP Financial Measures
		Three Months Ended			Nine Months Ended
		September 30			September 30
		(Dollars in thousands, except per share data)			(Dollars in thousands, except per share data)
		2025	2024		2025	2024
Adjusted Net Income
Net income (GAAP)	$	3,898	2,992	$	8,883	6,830
Realized (gain) loss on sale of investment securities available for sale		13	-		160	(69)
Realized and unrealized (gain) loss on equity securities		(29)	(57)		(18)	(30)
Gain on sale of fixed assets		-	-		(5)	(30)
Gain on sale of real estate owned		-	-		(75)	-
Corporate and strategic initiatives		-	-		243	-
Provision for (recovery of) credit losses		(33)	(1,282)		169	(2,250)
Net (charge-offs) recoveries of credit losses		(5)	15		(167)	258
Software conversion expense		-	271		-	271
Tax effect of adjustments		14	275		(80)	483
Adjusted net income (Non-GAAP)	$	3,858	2,214	$	9,110	5,463
Adjusted Diluted Earnings Per Share
Diluted earnings per share (GAAP)	$	0.62	0.48	$	1.41	1.09
Realized (gain) loss on sale of investment securities available for sale		0.00	-		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	-
Provision for (recovery of) credit losses		(0.01)	(0.20)		0.03	(0.36)
Net (charge-offs) recoveries of credit losses		(0.00)	0.00		(0.03)	0.04
Software conversion expense		-	0.04		-	0.04
Tax effect of adjustments		0.00	0.04		(0.01)	0.08
Adjusted diluted earnings per share (Non-GAAP)	$	0.62	0.35	$	1.45	0.87
Adjusted Return on Average Assets
Return on average assets (GAAP)		0.87 %	0.67 %		0.67 %	0.51 %
Realized (gain) loss on sale of investment securities available for sale		0.00 %	0.00 %		0.01 %	-0.01 %
Realized and unrealized (gain) loss on equity securities		-0.01 %	-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 %		-0.01 %	0.00 %
Corporate and strategic initiatives		0.00 %	0.00 %		0.02 %	0.00 %
Provision for (recovery of) credit losses		-0.01 %	-0.29 %		0.01 %	-0.17 %
Net (charge-offs) recoveries of credit losses		0.00 %	0.00 %		-0.01 %	0.02 %
Software conversion expense		0.00 %	0.06 %		0.00 %	0.02 %
Tax effect of adjustments		0.00 %	0.06 %		-0.01 %	0.04 %
Adjusted return on average assets (Non-GAAP)		0.86 %	0.50 %		0.68 %	0.41 %
Adjusted Return on Average Equity
Return on average equity (GAAP)		11.03 %	9.17 %		8.58 %	7.22 %
Realized (gain) loss on sale of investment securities available for sale		0.04 %	0.00 %		0.15 %	-0.07 %
Realized and unrealized (gain) loss on equity securities		-0.08 %	-0.17 %		-0.02 %	-0.03 %
Gain on sale of fixed assets		0.00 %	0.00 %		0.00 %	-0.03 %
Gain on sale of real estate owned		0.00 %	0.00 %		-0.07 %	0.00 %
Corporate and strategic initiatives		0.00 %	0.00 %		0.23 %	0.00 %
Provision for (recovery of) credit losses		-0.09 %	-3.93 %		0.16 %	-2.38 %
Net (charge-offs) recoveries of credit losses		-0.01 %	0.05 %		-0.16 %	0.27 %
Software conversion expense		0.00 %	0.83 %		0.00 %	0.29 %
Tax effect of adjustments		0.04 %	0.84 %		-0.08 %	0.51 %
Adjusted return on average equity (Non-GAAP)		10.92 %	6.79 %		8.80 %	5.78 %

 

Appendix A - Reconciliation of Non-GAAP Financial Measures, Continued
		Three Months Ended			Nine Months Ended
		September 30			September 30
		(Dollars in thousands, except per share data)			(Dollars in thousands, except per share data)
		2025	2024		2025	2024
Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP)	$	1.46 %	1.46 %	$	1.50 %	1.37 %
Software conversion expense		0.00 %	-0.02 %		0.00 %	-0.02 %
Corporate and strategic initiatives		0.00 %	0.00 %		-0.02 %	0.00 %
Noninterest expense to average assets (Non-GAAP)	$	1.46 %	1.45 %	$	1.48 %	1.36 %
Pre-tax, Pre-Provision Earnings
Net income (GAAP)	$	3,898	2,992	$	8,883	6,830
Income taxes		916	740		2,163	1,735
Provision for (recovery of) credit losses		(33)	(1,282)		169	(2,250)
Pre-tax, pre-provision earnings (non-GAAP)	$	4,781	2,450	$	11,215	6,315
Pre-tax, Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP)		0.87 %	0.67 %	$	0.67 %	0.51 %
Income taxes		0.20 %	0.17 %		0.16 %	0.13 %
Provision for (recovery of) credit losses		-0.01 %	-0.29 %		0.01 %	-0.17 %
Pre-tax, pre-provision return on average assets (non-GAAP)		1.07 %	0.55 %	$	0.84 %	0.47 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP)	$	22.50	20.83
Impact of AOCI per share		1.85	2.02
Book and tangible book value per share, excluding AOCI (non-GAAP)	$	24.35	22.85

 

Appendix B - Tax Equivalent Net Interest Margin Analysis
			For the Three Months Ended September 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	$	1,442,327	21,349	5.87 %		$	1,427,693	21,131	5.89 %
	Loans - imputed tax credits (2)		26,859	457	6.75 %			28,814	489	6.75 %
	Investments - taxable		112,344	1,024	3.62 %			115,964	1,100	3.77 %
	Investments - tax exempt (1)		4,161	37	3.50 %			4,244	37	3.44 %
	Interest earning deposits		92,667	823	3.52 %			90,779	1,093	4.79 %
	Other investments, at cost		6,015	107	7.06 %			5,429	131	9.60 %
	Total interest-earning assets		1,684,373	23,797	5.61 %			1,672,923	23,981	5.70 %
	Noninterest-earning assets		108,074					107,583
	Total assets	$	1,792,447				$	1,780,506
Interest-bearing liabilities:
	Interest-bearing transaction accounts	$	131,362	1,054	3.18 %		$	137,038	1,370	3.98 %
	Savings accounts		178,807	1,154	2.56 %			218,956	1,550	2.82 %
	Money market accounts		379,865	3,085	3.22 %			291,614	2,808	3.83 %
	Retail time deposits		364,675	3,287	3.58 %			382,547	4,348	4.52 %
	Wholesale time deposits		260,340	3,584	5.46 %			252,313	3,681	5.80 %
	Total interest bearing deposits		1,315,049	12,164	3.67 %			1,282,468	13,757	4.27 %
	Senior debt		10,000	181	7.18 %			17,000	347	8.12 %
	Subordinated debt		8,304	191	9.13 %			9,953	164	6.56 %
	Federal Home Loan Bank advances		49,239	634	5.11 %			64,565	964	5.94 %
	Total interest-bearing liabilities		1,382,592	13,170	3.78 %			1,373,986	15,232	4.41 %
	Noninterest-bearing deposits		256,206					264,015
	Other noninterest-bearing liabilities		12,332					12,039
	Total liabilities		1,651,130					1,650,040
	Total shareholders' equity		141,317					130,466
	Total liabilities and shareholders' equity	$	1,792,447				$	1,780,506
	Tax-equivalent net interest income			10,627					8,749
	Net interest-earning assets (3)	$	301,781				$	298,937
	Average interest-earning assets to interest-
	bearing liabilities		122 %					122 %
	Tax-equivalent net interest rate spread (4)		1.83 %					1.29 %
	Tax equivalent net interest margin (5)		2.50 %					2.08 %
	(1)  Tax exempt investments are calculated assuming a 21% federal tax rate
	(2)  Reflects the tax equivalent yield of a 5% state tax credit assuming a 26% federal and state tax rate
	(3)  Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities
	(4)  Tax-equivalent net interest rate spread represents the difference between the tax equivalent yield on average
	interest-earning assets and the cost of average interest-bearing liabilities.
	(5)  Tax equivalent net interest margin represents tax equivalent net interest income divided by average total
	interest-earning assets

 

Appendix B - Tax Equivalent Net Interest Margin Analysis
			For the Nine Months Ended September 30,
			2025					2024
			Average					Average
			Outstanding		Yield /			Outstanding		Yield /
			Balance	Interest	Rate			Balance	Interest	Rate
			(Dollars in thousands)
Interest-earning Assets:
	Loans, including loans held for sale	$	1,437,638	62,847	5.84 %		$	1,423,285	61,518	5.77 %
	Loans - imputed tax credits (2)		27,568	979	4.75 %			29,104	1,035	4.75 %
	Investments - taxable		112,984	3,113	3.68 %			119,110	3,534	3.96 %
	Investments - tax exempt (1)		4,169	111	3.57 %			4,222	111	3.52 %
	Interest earning deposits		82,300	2,338	3.80 %			90,268	3,184	4.71 %
	Other investments, at cost		5,770	320	7.41 %			6,118	499	10.89 %
	Total interest-earning assets		1,670,429	69,708	5.58 %			1,672,107	69,881	5.58 %
	Noninterest-earning assets		110,444					105,609
	Total assets	$	1,780,873				$	1,777,716
Interest-bearing liabilities:
	Interest-bearing transaction accounts	$	130,734	3,296	3.37 %		$	130,577	3,815	3.90 %
	Savings accounts		186,731	3,530	2.53 %			239,298	5,487	3.06 %
	Money market accounts		346,102	8,205	3.17 %			269,662	8,186	4.05 %
	Retail time deposits		369,086	10,768	3.90 %			385,760	12,868	4.46 %
	Wholesale time deposits		278,667	11,474	5.51 %			264,603	11,544	5.83 %
	Total interest bearing deposits		1,311,320	37,273	3.80 %			1,289,900	41,900	4.34 %
	Senior debt		11,143	592	7.10 %			18,667	1,157	8.28 %
	Subordinated debt		9,429	520	7.37 %			9,941	493	6.62 %
	Federal Home Loan Bank advances		49,963	1,684	4.51 %			70,803	2,792	5.27 %
	Total interest-bearing liabilities		1,381,855	40,069	3.88 %			1,389,311	46,342	4.46 %
	Noninterest-bearing deposits		248,194					250,811
	Other noninterest-bearing liabilities		12,844					11,527
	Total liabilities		1,642,893					1,651,649
	Total shareholders' equity		137,980					126,067
	Total liabilities and shareholders' equity	$	1,780,873				$	1,777,716
	Tax-equivalent net interest income			29,639					23,539
	Net interest-earning assets (3)	$	288,574				$	282,796
	Average interest-earning assets to interest-
	bearing liabilities		121 %					120 %
	Tax-equivalent net interest rate spread (4)		1.70 %					1.13 %
	Tax equivalent net interest margin (5)		2.37 %					1.88 %
	(1)  Tax exempt investments are calculated assuming a 21% federal tax rate
	(2)  Reflects the tax equivalent yield of a 5% state tax credit assuming a 26% federal and state tax rate
	(3)  Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities
	(4)  Tax-equivalent net interest rate spread represents the difference between the tax equivalent yield on average
	interest-earning assets and the cost of average interest-bearing liabilities.
	(5)  Tax equivalent net interest margin represents tax equivalent net interest income divided by average total
	interest-earning assets

 

Appendix C - Reconciliation of Prior Period Non-GAAP Financial Measures
		Three Months Ended
		(Dollars in thousands, except per share data)
		June 30, 2025	March 31, 2025	December 31, 2024
Adjusted Net Income
Net income (GAAP)	$	2,806	2,179	2,092
Realized loss on sale of investment securities available for sale		8	139	-
Realized and unrealized (gain) loss on equity securities		6	4	58
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		138	64	480
Net (charge-offs) recoveries of credit losses		(7)	(155)	(11)
Tax effect of adjustments		(82)	(12)	(138)
Adjusted net income (Non-GAAP)	$	3,037	2,214	2,481
Adjusted Diluted Earnings Per Share
Diluted earnings per share (GAAP)	$	0.45	0.35	0.33
Realized loss on sale of investment securities available for sale		0.00	0.02	-
Realized and unrealized (gain) loss on equity securities		0.00	0.00	0.01
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		0.02	0.01	0.08
Net (charge-offs) recoveries of credit losses		(0.00)	(0.02)	(0.00)
Tax effect of adjustments		(0.01)	(0.00)	(0.02)
Adjusted diluted earnings per share (Non-GAAP)	$	0.48	0.35	0.39
Adjusted Return on Average Assets
Return on average assets (GAAP)		0.63 %	0.50 %	0.47 %
Realized loss on sale of investment securities available for sale		0.00 %	0.00	-
Realized and unrealized (gain) loss on equity securities		0.00 %	0.00 %	0.01 %
Gain on sale of fixed assets		0.00 %	(0.00)	-
Gain on sale of real estate owned		-0.02 %	-	-
Corporate and strategic initiatives		0.05 %	-	-
Provision for (recovery of) credit losses		0.03 %	0.01 %	0.11 %
Net (charge-offs) recoveries of credit losses		0.00 %	-0.04 %	0.00 %
Tax effect of adjustments		-0.02 %	0.00 %	-0.03 %
Adjusted return on average assets (Non-GAAP)		0.68 %	0.50 %	0.56 %
Adjusted Return on Average Equity
Return on average equity (GAAP)		8.17 %	6.43 %	6.32 %
Realized loss on sale of investment securities available for sale		0.02 %	0.00	-
Realized and unrealized (gain) loss on equity securities		0.02 %	0.01 %	0.18 %
Gain on sale of fixed assets		0.00 %	(0.00)	-
Gain on sale of real estate owned		-0.22 %	-	-
Corporate and strategic initiatives		0.71 %	-	-
Provision for (recovery of) credit losses		0.40 %	0.19 %	1.45 %
Net (charge-offs) recoveries of credit losses		-0.02 %	-0.46 %	-0.03 %
Tax effect of adjustments		-0.24 %	-0.04 %	-0.42 %
Adjusted return on average equity (Non-GAAP)		8.84 %	6.53 %	7.49 %

 

Appendix C - Reconciliation of Prior Period Non-GAAP Financial Measures, Continued
		Three Months Ended
		(Dollars in thousands, except per share data)
		June 30, 2025	March 31, 2025	December 31, 2024
Adjusted Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP)		1.55 %	1.50 %	1.40 %
Corporate and strategic initiatives		-0.05 %	0.00 %	0.00 %
Adjusted noninterest expense to average assets (Non-GAAP)		1.49 %	1.50 %	1.40 %
Pre-tax Pre-Provision Earnings
Net income (GAAP)	$	2,806	2,179	2,092
Income taxes		668	580	869
Provision for (recovery of) credit losses		138	64	480
Pre-tax Pre-provision earnings (non-GAAP)	$	3,612	2,823	3,441
Pre-tax Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP)	$	0.63 %	0.50 %	0.47 %
Income taxes		0.15 %	0.13 %	0.20 %
Provision for (recovery of) credit losses		0.03 %	0.01 %	0.11 %
Pre-tax Pre-provision return on average assets (non-GAAP)	$	0.81 %	0.64 %	0.78 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP)	$	21.72	21.26	20.70
Impact of AOCI per share		2.04	2.09	2.37
Book and tangible book value per share, excluding AOCI (non-GAAP)	$	23.76	23.35	23.07

 

                                               

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SOURCE Mountain Commerce Bancorp, Inc.

FAQ

What did MCBI report for net income and EPS in Q3 2025?

MCBI reported net income $3.898M and diluted EPS $0.62 for Q3 2025.

When is the MCBI quarterly dividend paid and what is the record date for Dec 2025?

The quarterly cash dividend is $0.07 per share, payable Dec 1, 2025, with record date Nov 3, 2025.

How did MCBI's net interest margin change in Q3 2025 versus Q3 2024?

Tax-equivalent net interest margin expanded to 2.50% in Q3 2025 from 2.08% in Q3 2024.

What asset quality metrics did MCBI report as of September 30, 2025?

As of Sep 30, 2025 MCBI reported non-performing assets $10.449M (0.58% of assets) and non-performing loans $7.661M (0.52% of loans).

How much debt did MCBI repay during the nine months ended Sep 30, 2025?

MCBI reduced senior debt by $4M and subordinated debt by $2M for the nine months ended Sep 30, 2025.