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2020 Annual Report Released

Dear Shareholders, Clients & Friends of MCB:

When I wrote to you at this time last year, we were in the early stages of the COVID-19 pandemic. Business activity, travel, dining and many other areas of life had been curtailed and we were assessing the impact of those changes on our business.

Throughout 2020, we took many steps in response to the pandemic, including:

  • Remote work for many of our employees
  • Adjusting how we handled business in our lobbies
  • Significant participation in the Paycheck Protection Program (PPP), through which we originated $107.5 million in loans and received fees of $3.5 million
  • Materially increasing our allowance for loan losses from $5.8 million to $13.3 million
  • Raising $10 million of subordinated debt to provide additional capital protection against an economic downturn

While 2020 financial results were quite “noisy” as a result of the increased allowance for loan losses, PPP fees earned and a number of other matters, several accomplishments clearly stood out:

  • Core1 earnings grew 26.8% from $12 million in 2019 to $15.3 million in 2020
  • Core1 return on average assets improved from 1.38% in 2019 to 1.40% in 2020
  • Core1 return on average equity improved from 14.35% in 2019 to 15.70% in 2020
  • Core1 efficiency ratio declined to 43.95% in 2020 from 48.67% in 2019, which is among the best in the industry
  • Core1 earnings per share increased 27.1% from $1.92 in 2019 to $2.44 in 2020
  • Pre-tax, pre-provision earnings increased to $20.6 million in 2020 from $16.1 million in 2019
  • Loan balances grew 15.9% to $935.5 million
  • Nonperforming assets declined 72.9% from $6.7 million in 2019 to $1.8 million in 2020
  • COVID-related modifications decreased from a high of over $200 million during 2020 to $0 by December 31, 2020.
  • Tangible book value grew from $14.57 at December 31, 2019 to $16.52 by the same time in 2020
  • Ranked #43 on American Banker Magazine’s top 200 publicly traded community banks list – up from #96 in the prior year
  • Added key members to our management team, including chief financial officer David A. Bright

Without question, 2020 was a record year for the Bank by any standard and we enter 2021 with the strongest earnings, asset quality and capital profile we have ever had. While uncertainties remain, we are optimistic that 2021 will be another record year for the Company as we continue to deliver top-tier shareholder returns.

Thank you for your continued trust and support as we work to deliver the performance and results you have come to expect.

Sincerely,




William E. Edwards III
Founder, Vice-Chairman, President and Chief Executive Officerr
1 Core results exclude realized gains and losses on investments, accretion of PPP fees, net, losses from the sale of REO, impairment of premises, and the provision for credit losses. See our Q4 2020 Press Release for more information.