Mountain Commerce Bancorp, Inc. Announces Record Earnings for 2018
Commerce Bancorp, Inc. Announces Record Earnings for 2018
KNOXVILLE, TN — January 25, 2019 - Mountain Commerce Bancorp, Inc. (OTCQX: MCBI), the Knoxville, Tennessee-based bank holding company and parent of Mountain Commerce Bank (MCB), reported consolidated net income of $2.8 million for the fourth quarter of 2018, up from $0.9 million in the comparative quarter. Diluted earnings per share for the quarter ended December 31, 2018 totaled $0.45 versus $0.15 for the fourth quarter of 2017. For the twelve months ended December 31, 2018, the Company reported net income of $10.2 million, an 86% increase over the twelve-months ended December 31, 2017. Earnings per fully diluted share for the twelve months ended December 31, 2018 totaled $1.63 versus $0.89 for the comparative period in 2017. Included in the 2017 fourth quarter and full year 2017 results was a nonrecurring deferred tax charge of $916,000 ($0.15 per diluted share) relating to the Tax Cuts and Jobs Act of 2017.
In the fourth quarter of 2018, net interest income increased 9%, primarily reflecting growth in average earning assets, while noninterest income grew 35% to $571,000 in 2018’s fourth quarter from $423,000 in the comparative quarter. While some of the noninterest income growth came from higher service charges that resulted from new customers, there was also a non-recurring $64,500 charge to OREO Provision in 2017. Noninterest expense in 2018’s fourth quarter increased 6%, well below the 11% growth rate of total revenues (i.e., net interest income plus noninterest income). Earnings also benefitted from a drop in the provision for loan losses due to the continuation of strong credit metrics. The efficiency ratio in the fourth quarter of 2018 was 50.3%, while annualized ROAE was 14.95% and annualized ROAA was 1.32%.
For the full year ended December 31, 2018, net
interest income increased 16%, while noninterest income grew 9% and noninterest
expense was up 8%. As was the case with
the quarterly results, most of the increase in net interest income was due to
earning asset growth. Earnings also
benefitted from a lower provision for loan losses. The efficiency ratio for the full year 2018
was 49.6%, while ROAE was 14.35% and ROAA was 1.26%, with each of these figures
improving from the comparative 2017 numbers.
Nonperforming assets, which includes non-accruing loans and other real
estate owned, was $7.6 million, or 0.9% of assets, at December 31, 2018, versus
$9.0 million, or 1.2% of assets, at December 31, 2017. Nonperforming loans were $447,000, or 0.06%
of loans, at December 31, 2018, versus $1.6 million, or 0.25% of loans, at
December 31, 2017.
Total assets as of December 31, 2018 were $849.1 million, an increase of 14% from December 31, 2017. Gross loans increased 13% to $708.3 million and deposits grew 12% to $715.1 million from the December 31, 2017 balances. Shareholders’ equity totaled $76.5 million, or 9.0% of assets, at December 31, 2018, versus $66.2 million, or 8.9% of assets, at December 31, 2017. The Bank is considered well-capitalized for all of the required regulatory capital metrics as of December 31, 2018.
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About Mountain Commerce
Bancorp and its subsidiary Mountain Commerce Bank:
Mountain Commerce Bancorp, Inc. is a
bank holding company and the parent of Mountain Commerce Bank (MCB).
MCB is a state-chartered, FDIC-insured, century-old,
financial services institution headquartered in Knoxville, Tennessee and
serving East Tennessee. Through Hometown Service and Smart Technology, MCB
offers big bank products and services, with the personal attention and
exceptional service of a hometown community bank.
At the end of December 2018, MCB had $849.1 million
in total assets and $718.7 million in total deposits.
MCB received a 5-Star rating (the highest) from
BauerFinancial, financial rating agency. MCB currently employs more than 80 individuals at five branches and one
operations office. For more information, visit us at www.mcb.com or check your
account any time at 1-866-MCB-1910. MCB is an equal opportunity employer.