{"id":481695,"date":"2021-04-26T09:05:21","date_gmt":"2021-04-26T13:05:21","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/mountain-commerce-bancorp-inc-announces-first-quarter-2021-results-and-4-increase-in-quarterly-cash-dividend\/"},"modified":"2021-04-26T09:05:21","modified_gmt":"2021-04-26T13:05:21","slug":"mountain-commerce-bancorp-inc-announces-first-quarter-2021-results-and-4-increase-in-quarterly-cash-dividend","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/mountain-commerce-bancorp-inc-announces-first-quarter-2021-results-and-4-increase-in-quarterly-cash-dividend\/","title":{"rendered":"Mountain Commerce Bancorp, Inc. Announces First Quarter 2021 Results And 4% Increase in Quarterly Cash Dividend"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n KNOXVILLE, Tenn.<\/span>, April 26, 2021<\/span> \/PRNewswire\/ — Mountain Commerce Bancorp, Inc. (the “Company”) (OTCQX: MCBI), the holding company for Mountain Commerce Bank (the “Bank”), today announced earnings and related data as of and for the three months ended March 31, 2021<\/span>.<\/p>\n

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.13<\/span> per common share, representing a 4% increase from the $0.125<\/span> cash dividend declared in the prior quarter.\u00a0 The dividend is payable on June 1, 2021<\/span> to shareholders of record as of the close of business on May 12, 2021<\/span>.<\/p>\n

\n Highlights<\/b>\n <\/p>\n

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 months ended March 31<\/span>, 2021.\u00a0 As further detailed in Appendix A to this press release, adjusted results (which are non-GAAP financial measures) reflect adjustments for realized investment gains and losses, the impact of PPP fee accretion (net of the amortization of PPP deferred loan costs and one-time PPP bonuses), gains and losses from the sale of REO, the provision for loan losses, and the provision for unfunded loan commitments.\u00a0 See Appendix B to this press release for more information on our tax equivalent net interest margin.\u00a0 All financial information in this press release is unaudited.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n For the Three Months Ended March 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n (Dollars in thousands, except per share data)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n GAAP<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Adjusted (1)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n GAAP<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Adjusted (1)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net income<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 4,860<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 4,313<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 2,286<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 3,390<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Diluted earnings per share<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.77<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.69<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.36<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.54<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Return on average assets (ROAA)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.73%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.53%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 0.98%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.45%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Return on average equity<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 18.36%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 16.30%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 9.84%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 14.60%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Efficiency ratio<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 39.87%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 42.85%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 45.98%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 45.98%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net interest margin (tax equivalent)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 3.82%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 3.48%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 3.46%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 3.46%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Pre-tax, pre-provision earnings (1)<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 6,397<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 4,585<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Pre-tax, pre-provision ROAA (1)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2.27%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n 1.97%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n\n\n\n
\n \n <\/td>\n<\/tr>\n
\n

\n (1) Represents a non-GAAP financial measure.\u00a0 See Appendix A to this press release for more information.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n As of or<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n As of or<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Period Ended<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Period Ended<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n March 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n December 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n (Dollars in thousands, except share data)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Asset Quality<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n

\n Non-performing loans<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,699<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,801<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Real estate owned<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,378<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n –<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Non-performing assets<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 3,077<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,801<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Non-performing loans to total loans<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.18%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 0.19%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Non-performing assets to total assets<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.27%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 0.16%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Loans with COVID-19 related modifications (1)<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 6,797<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n –<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Net charge-offs<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 155<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 20<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Allowance for loan losses to non-performing loans<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 774.46%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 739.20%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Allowance for loan losses to total loans\u00a0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.38%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 1.42%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Allowance for loan losses to non-PPP loans (2)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.53%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 1.56%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n Other Data<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n

\n Core deposits<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 681,402<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 620,576<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Cash dividends declared<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.125<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n –<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Shares outstanding<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 6,291,003<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 6,286,003<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Book and tangible book value per share (3)<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 17.06<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.52<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Closing market price per common share<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 23.80<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 20.50<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Closing price to book value ratio<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 139.51%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 124.10%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Equity to assets ratio<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 9.36%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 9.36%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Bank regulatory leverage ratio<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 10.43%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 10.11%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n

\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n

\n (1)<\/span>\n <\/p>\n<\/td>\n

\n

\n Including both principal deferrals and interest only terms<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n (2)<\/span>\n <\/p>\n<\/td>\n

\n

\n As further detailed in Appendix A to this press release, allowance for loan losses to non-PPP loans is a non-GAAP financial measure<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n (3)<\/span>\n <\/p>\n<\/td>\n

\n

\n The Company does not have any intangible assets<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

\n Management Commentary<\/b>\n <\/p>\n

William E. “Bill” Edwards, III, President and Chief Executive Officer of the Company, commented, “We are pleased to start out 2021 with another successful quarter which saw adjusted net income (non-GAAP) increase 27% from $3.4 million<\/span> in the first quarter of 2020 to $4.3 million<\/span> in the same quarter of 2021, while adjusted earnings per diluted share (non-GAAP) increased 28% from $0.54<\/span> to $0.69<\/span> over the same period.\u00a0 I am proud to say that we have continued to support our clients and communities by actively participating in the second round of PPP, where we have loaned nearly $37 million<\/span> and earned $1.7 million<\/span> in fees as of March 31, 2021<\/span>. Our allowance to non-PPP loans (non-GAAP) currently stands at 1.53%, and I am happy to report that our COVID-related modifications consist of only one $6.8 million<\/span> hotel relationship as of March 31<\/span>, 2021.\u00a0 Based on this and continued strong asset quality and positive signs in the economies in our markets, we did not provide any additional allowance for loan losses in the first quarter of 2021.\u00a0 We continue to remain highly focused on delivering strong returns to our shareholders, which we believe is reflected in our adjusted return on average equity (non-GAAP) increasing from 14.60% in the first quarter of 2020 to 16.30% in the same period of 2021, a year-over-year increase of 11.6%.\u00a0 From an asset quality perspective, our non-performing assets to total assets remain low at 0.27% at March 31, 2021<\/span>, up slightly from 0.16% at December 31<\/span>, 2020.\u00a0 Finally, in order to provide an additional source of liquidity and increased returns for our shareholders, we announced a $5 million<\/span> share repurchase authorization on April 12, 2021<\/span>, and increased our quarterly dividend by 4% to $0.13<\/span> per quarter.”<\/p>\n

\n Net Interest Income<\/b>\n <\/p>\n

Net interest income increased $2.3 million<\/span>, or 30.2%, from $7.7 million<\/span> for the three months ended March 31, 2020<\/span> to $10.0 million<\/span> for the same period in 2021.\u00a0 The increase between the periods was primarily the result of the following factors:<\/p>\n