#Knoxville #United States #financial results #quarterly dividend #Mountain Commerce

Mountain Commerce Bancorp, Inc. Announces Strong Second Quarter Results

Mountain Commerce Bancorp, Inc. (OTCQX: MCBI), the holding entity for the long-standing Mountain Commerce Bank, reported robust financial results for the second quarter and the first half of 2025. As of June 30, 2025, the Company achieved net income of $2.806 million, a significant rise compared to $2.324 million from the previous year. This uptick led to diluted earnings per share of $0.45, reflecting a 21.6% increase over the same period last year.

Quarterly Cash Dividend Declared

In addition to positive earnings, the Board of Directors declared a quarterly cash dividend of $0.07 per common share. This marks the nineteenth consecutive quarter of dividends for the Company, reinforcing its commitment to returning value to shareholders. The dividend is set to be paid on September 2, 2025, to shareholders recorded by the end of business on August 4, 2025.

Senior Revolving Line of Credit

On July 15, 2025, Mountain Commerce Bancorp established a senior revolving line of credit amounting to $25 million with a trusted financial institution, superseding the previous credit line that carried a balance of $10 million which was nearing maturity. The new line of credit is designed to support the sustained operations and growth of the Bank. It comes with favorable terms, including a maturity date of July 15, 2027, and will have an interest rate equal to the Prime Rate minus 50 basis points, with a minimum floor rate set at 5.00%.

Management's Outlook

William E. 'Bill' Edwards, III, President and Chief Executive Officer, expressed confidence in the Company's forward momentum. He highlighted a marked increase in adjusted return on average assets and equity, which climbed to 0.68% and 8.84% respectively in the second quarter, compared to the first quarter figures of 0.50% and 6.53%. He also noted improvements in the net interest margin, which rose from 2.31% in Q1 2025 to 2.40% in Q2 2025.

Despite a rise in non-performing assets, management reassured stakeholders that they are well-collateralized and that sufficient measures are in place to mitigate potential risks. The Company is committed to maintaining disciplined growth and risk management strategies while continuing to improve its net interest margin and overall earnings throughout 2025.

Key Financial Highlights

• - Net Income (Q2 2025): $2.806 million
• - Diluted Earnings per Share: $0.45
• - Quarterly Dividend Declared: $0.07
• - Total Assets: $1.806 billion as of June 30, 2025
• - Increasing Net Interest Margin: Improved to 2.40% in the second quarter

Asset Quality Observations

Mountain Commerce Bancorp's total assets increased by $60 million, or 3.4%, from the end of the previous year, driven primarily by cash and cash equivalents. Notably, non-performing loans to total loans surged to 0.52% from 0.09%, indicating growing caution in asset quality, but the management underscored the adequacy of collateral.

Conclusion

As Mountain Commerce Bancorp moves forward, it aims to synergize growth strategies with prudent risk management, promoting sustainable value for its stakeholders. With anticipated improvements in the broader economic landscape, the Company positions itself for ongoing progress and increased profitability, reaffirming its dedication to the communities it serves through competent banking operations.

For further details, please visit Mountain Commerce Bank's website.