KNOXVILLE, TN — January 31, 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, noninterest income grew 35% to $571,000 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 nonrecurring $64,500 charge to OREO Provision in 2017. 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 45.9%, while annualized ROAE was 14.95% and annualized ROAA was 1.32%.
For the full year ended December 31, 2018, net interest income increased 13%, while noninterest income grew 9% and noninterest expense was up 3%. 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 48.5%, 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.
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.