Knoxville, Tennessee, October 24, 2022 – 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 and nine months ended September 30, 2022.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.16 per common share, representing a 3.2% increase from the $0.155 cash dividend per common share declared in the prior quarter and our seventh consecutive quarterly dividend increase. The dividend is payable on December 1, 2022 to shareholders of record as of the close of business on November 7, 2022.

Management Commentary

William E. “Bill” Edwards, III, President and Chief Executive Officer of the Company, commented as follows:

“We are pleased to report another strong earnings quarter for the Company, which saw adjusted net income (non-GAAP) increase 19% from $5.0 million in the third quarter of 2021 to $6.0 million in the same quarter of 2022, while adjusted earnings per diluted share (non-GAAP) increased 19% from $0.81 to $0.96 over the same periods. Our strong earnings, combined with prudent management of our capital, have helped increase our annualized adjusted return on average equity (non-GAAP) to 20.68% for the quarter ended September 30, 2022, compared to 17.17% for the same period in the prior year. Our annualized adjusted return on average assets (non-GAAP) remained strong at 1.58% in the third quarter of 2022, down slightly from 1.60% in the third quarter of 2021. We continue to experience very low levels of loan charge-offs and our allowance coverage of nonperforming loans exceeds 9 to 1 for the second consecutive quarter. From an asset quality perspective, our non-performing assets to total assets remained at

historical lows at 0.08%, with no properties in real estate owned. During the third quarter of 2022, we received an insurance recovery of $250,000 related to the fraudulent wire loss incurred during the prior quarter, and we continue to pursue other options for further recovery. As a result of our continued strong performance, we are pleased to announce that we have increased our quarterly dividend by 3.2% to $0.16 per quarter, our seventh consecutive quarterly increase.

Additionally, we continue to work very hard on several projects located across our markets, including the following:

  • The construction of a new 25,000 sf operations center to replace our existing 10,000 sf leased space in Johnson City, TN. Construction on this facility continues and the facility is expected to be operational by the first quarter of 2023.
  • The construction of a new 23,000 sf Johnson City combined financial/corporate center with significant I-26 visibility. This building will be a major upgrade from our existing 3,000 sq. ft. branch, and we believe will allow us to substantially grow our Johnson City and TriCities market share. We expect construction on this building to start in the fourth quarter of 2022 and estimate the project will cost approximately $19.5 million.
  • We are pleased to announce that we completed the purchase of a 37,500 sf former bank building at 9950 Kingston Pike in Knoxville, TN during the third quarter of 2022. In addition to providing a much needed additional financial center, we also expect to consolidate approximately 9,000 sf of space that is currently leased into this building. As a result of purchasing this building, the Company no longer intends to build a financial center in Knoxville, resulting in a considerable savings of time and money. This building is expected to be operational during the second quarter of 2023.
  • We were happy to conduct the grand opening of our first Nashville area office in Brentwood on September 19, 2022. This event was well attended by the community and provided a great opportunity to showcase our brand.Finally, we are proud to once again have been named a Top 200 Publicly Traded Community Bank (#26) by American Banker Magazine and a Top 100 Bank Under $3 Billion in Assets (#51) by S&P Global for 2022.”