KNOXVILLE, TN — April 23, 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 $2.89 million for the first quarter of 2019, up from $2.33 million for the first quarter of 2018—an increase of 24 percent. Earnings per fully diluted share for the quarter ended March 31, 2019 totaled $0.46 versus $0.38 for the first quarter of 2018.
For the three months ended March 31, 2019, noninterest income declined 8 percent to $381,000 from $416,000 during the same period in 2018. The majority of the decline resulted from a $297,000 loss on sale of investment securities in order to position the balance sheet. Partially offsetting this loss was $228,000 earned in swap fee income.
Earnings also benefitted from a reduction in the provision for loan losses due to the continuation of strong credit metrics. The efficiency ratio in the first quarter of 2019 was 49.6 percent, while annualized return on average equity (ROAE) was 14.82 percent and annualized return on average assets (ROAA) was 1.36 percent. Nonperforming assets, which include non-accruing loans and other real estate owned, were $7.9 million, or 0.91 percent of assets on March 31, 2019 versus $9.9 million, or 1.26 percent of assets, on March 31, 2018.
Total assets as of March 31, 2019 were $865.9 million, an increase of $83.1 million or 11 percent from March 31, 2018. Over the same period, gross loans increased 13 percent to $736.7 million, while deposits grew 9 percent to $757.2 million. Shareholders’ equity totaled $80.6 million, or 9.3 percent of assets, on March 31, 2019 versus $68.2 million, or 8.7 percent of assets, on March 31, 2018. The tangible book value was $13.02 at the end of the first quarter of 2019 versus $11.22 at the end of the first quarter of 2018, an increase of $1.80, or 16 percent.
About Mountain Commerce Bancorp, Inc. 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 March 2019, MCB had $865.8 million in total assets and $760.8 million in total deposits.
MCB currently employs 85 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.