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Mountain Commerce Bancorp, Inc. Announces First Quarter 2021 Results And 4% Increase in Quarterly Cash Dividend

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KNOXVILLE, Tenn., April 26, 2021 /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.

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

Highlights

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, 2021.  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.  See Appendix B to this press release for more information on our tax equivalent net interest margin.  All financial information in this press release is unaudited.



For the Three Months Ended March 31,



(Dollars in thousands, except per share data)













2021



2020













GAAP


Adjusted (1)



GAAP


Adjusted (1)

Net income

$

4,860


4,313


$

2,286


3,390

Diluted earnings per share

$

0.77


0.69


$

0.36


0.54

Return on average assets (ROAA)


1.73%


1.53%



0.98%


1.45%

Return on average equity


18.36%


16.30%



9.84%


14.60%

Efficiency ratio


39.87%


42.85%



45.98%


45.98%

Net interest margin (tax equivalent)


3.82%


3.48%



3.46%


3.46%











Pre-tax, pre-provision earnings (1)

$

6,397




$

4,585



Pre-tax, pre-provision ROAA (1)


2.27%





1.97%




(1) Represents a non-GAAP financial measure.  See Appendix A to this press release for more information.







As of or



As of or




Period Ended



Period Ended




March 31,



December 31,




2021



2020











(Dollars in thousands, except share data)

Asset Quality







Non-performing loans

$

1,699


$

1,801


Real estate owned

$

1,378


$

-


Non-performing assets

$

3,077


$

1,801


Non-performing loans to total loans


0.18%



0.19%


Non-performing assets to total assets


0.27%



0.16%


Loans with COVID-19 related modifications (1)

$

6,797


$

-


Net charge-offs

$

155


$

20


Allowance for loan losses to non-performing loans


774.46%



739.20%


Allowance for loan losses to total loans 


1.38%



1.42%


Allowance for loan losses to non-PPP loans (2)


1.53%



1.56%








Other Data







Core deposits

$

681,402


$

620,576


Cash dividends declared

$

0.125


$

-


Shares outstanding


6,291,003



6,286,003


Book and tangible book value per share (3)

$

17.06


$

16.52


Closing market price per common share

$

23.80


$

20.50


Closing price to book value ratio


139.51%



124.10%


Equity to assets ratio


9.36%



9.36%


Bank regulatory leverage ratio


10.43%



10.11%





(1)

Including both principal deferrals and interest only terms


(2)

As further detailed in Appendix A to this press release, allowance for loan losses to non-PPP loans is a non-GAAP financial measure


(3)

The Company does not have any intangible assets




Management Commentary

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 in the first quarter of 2020 to $4.3 million in the same quarter of 2021, while adjusted earnings per diluted share (non-GAAP) increased 28% from $0.54 to $0.69 over the same period.  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 and earned $1.7 million in fees as of March 31, 2021. 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 hotel relationship as of March 31, 2021.  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.  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%.  From an asset quality perspective, our non-performing assets to total assets remain low at 0.27% at March 31, 2021, up slightly from 0.16% at December 31, 2020.  Finally, in order to provide an additional source of liquidity and increased returns for our shareholders, we announced a $5 million share repurchase authorization on April 12, 2021, and increased our quarterly dividend by 4% to $0.13 per quarter."

Net Interest Income

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

  • Average interest-earning assets grew $190.8 million, or 21.3%, from $896.1 million to $1.087 billion, due in part to PPP loans.
  • Average net interest-earning assets grew $106.1 million, or 54.9%, from $193.2 million to $299.3 million, funded by increases in noninterest bearing deposits and an increase in shareholders' equity.
  • The average rate paid on interest-bearing liabilities dropped 61.2% from 1.65% to 0.64%, driving an increase in tax-equivalent net interest margin from 3.46% to 3.82%.

The Company recognized approximately $0.7 million and $0 of PPP loan origination fees, net of the amortization of deferred PPP loan costs, through net interest income during the three months ended March 31, 2021 and 2020, respectively.

Provision For Loan Losses

No provision for loan losses was recorded during the three months ended March 31, 2021 as the result of a minimal level of COVID-related loan modifications, continued strong asset quality, and continued strengthening of the economy in our primary markets.  A provision for loan losses of $1.5 million was recorded for the three months ended March 31, 2020 as a result of the Company increasing the qualitative factors in its allowance for loan loss model and increasing reserve factors on certain loans to borrowers we viewed then as more likely to be impacted by the COVID-19 pandemic. 

Noninterest Income

Noninterest income decreased $0.2 million, or 22.2%, from $0.8 million in the first quarter of 2020 to $0.6 million in the same quarter of 2021, due primarily to a $0.2 million decline in swap brokerage fees, which was partially offset by an increase in gain on sale of loans and wealth management fees.

Noninterest Expense

Noninterest expense increased $0.3 million, or 8.7%, from $3.9 million in the first quarter of 2020 to $4.2 million in the same period of 2021.  The increase was primarily the result of a $0.1 million increase in FDIC insurance due to the expiration of certain credits, and a $0.1 million increase in Other noninterest expense due to an increase in the reserve for unfunded loan commitments.

Income Taxes

The effective tax rate of the Company was 24.0% and 26.0% for the three months ended March 31, 2021 and 2020, respectively.  The Company's marginal tax rate of 26.14% is favorably impacted by certain sources of non-taxable income including bank-owned life insurance (BOLI), tax-free loans and investments in tax-free municipal securities.  The Company's effective tax rate declined during the three months ended March 31, 2021 compared to the same period in 2020 due primarily to increased investments in tax-free municipal securities and investments in certain loans eligible for a 5% state tax credit.

Balance Sheet

Total assets increased $36.2 million, or 3.3%, from $1.110 billion at December 31, 2020 to $1.146 billion at March 31, 2021.  The increase was primarily driven by the following factors:

  • Investments available for sale increased $13.9 million, or 18.0%, from $77.3 million at December 31, 2020 to $91.2 million at March 31, 2021 as the Company took advantage of a steepening yield curve to invest excess liquidity.
  • Loans receivable increased $21.2 million, or 2.3%, from $935.5 million at December 31, 2020 to $956.7 million at March 31, 2021.  Substantially all of this increase resulted from $36.8 million of additional PPP loans originated during the first quarter of 2021 as well as a $16.3 million increase in residential loans.

The following summarizes changes in loan balances over the last five quarters:



March 31,


December 31,


September 30,


June 30,


March 31,



2021


2020


2020


2020


2020

(in thousands)






















Residential construction

$

13,037


14,805


17,772


17,238


20,950

Other construction


33,720


35,361


39,858


40,996


40,944

Farmland


6,322


7,943


8,430


8,592


8,391

Home equity


32,281


32,543


35,833


35,882


41,674

Residential 


240,606


224,288


218,872


211,234


203,030

Multi-family


45,703


42,666


27,758


26,606


26,980

Owner-occupied commercial 


168,442


170,683


150,402


149,646


137,289

Non-owner occupied commercial


233,142


234,751


257,907


253,280


256,197

Commercial & industrial


76,421


80,380


73,234


74,107


78,031

PPP Program


96,147


81,465


107,723


107,384


-

Consumer


10,891


10,597


10,359


11,375


11,098













$

956,712


935,482


948,148


936,340


824,584












Total deposits increased $33.5 million, or 3.6%, from $921.9 million at December 31, 2020 to $955.4 million at March 31, 2021.  The primary driver of this increase was a $41.8 million, or 20.1%, increase in noninterest-bearing deposit balances from $208.3 million to $250.1 million.  

The following summarizes changes in deposit balances over the last five quarters:



March 31,


December 31,


September 30,


June 30,


March 31,



2021


2020


2020


2020


2020

(in thousands)






















Non-interest bearing transaction

$

250,069


208,250


221,300


215,202


134,498

NOW and money market


105,641


96,243


86,931


84,930


83,658

Savings


325,692


316,083


306,119


286,995


283,032

Retail time deposits


138,989


173,305


196,188


186,386


175,857

Wholesale time deposits


134,994


128,015


88,831


126,486


152,670













$

955,385


921,896


899,369


899,999


829,715












FHLB borrowings of $50.0 million at March 31, 2021 represent a 3-month floating rate advance swapped to a fixed rate through March 2025. 

Total equity increased $3.5 million, or 3.4%, from $103.8 million at December 31, 2020 to $107.3 million at March 31, 2021.  This increase was primarily comprised of net income of $4.9 million and an improvement in the value of the interest rate swap of $0.6 million, offset by a decline in the net unrealized gains on investments available for sale of $1.3 million and dividends paid of $0.8 million.  Tangible book value per share improved from $16.52 at December 31, 2020 to $17.06 at March 31, 2021, an annualized increase of 13.1%.  Equity to assets was 9.36% at both March 31, 2021 and December 31, 2020.  The Company and Bank both remain well capitalized.

Asset Quality

Non-performing loans to total loans decreased slightly from 0.19% at December 31, 2020 to 0.18% at March 31, 2021.  Non-performing assets to total assets increased from 0.16% at December 31, 2020 to 0.27% at March 31, 2021, due to the foreclosure of a single agricultural property during the first quarter of 2021 in the amount of $1.4 million.  This property has a 90% government guarantee and no material loss is expected.  Net charge-offs of $155 thousand were recognized during the first quarter of 2021 compared to $20 thousand during the full year ended December 31, 2020.  The allowance for loan losses to total loans decreased slightly from 1.42% (1.56% excluding PPP loans) at December 31, 2020 to 1.38% (1.53% excluding PPP loans) at March 31, 2021, and coverage of non-performing loans by the allowance remained strong at 774.5% at March 31, 2021. 

During the first quarter of 2021, the Company granted a modification on a $6.8 million loan in the hotel industry that experienced COVID-related construction delays.  As of March 31, 2021, this is the only COVID-related loan modification outstanding. Pursuant to interagency guidance, the Company has elected to not consider loans modified under the CARES Act as troubled debt restructurings.

The following summarizes the outstanding loans as of the applicable period with COVID-related modifications by customer industry:



March 31,


December 31,


September 30,


June 30,



2021


2020


2020


2020

(in thousands)


















Office building

$

-


-


10,345


19,800

Warehouse


-


-


9,691


13,400

Residential 1-4


-


-


3,985


13,800

Retail


-


-


3,138


7,900

Vacant real estate


-


-


2,513


2,767

Medical


-


-


1,719


2,856

Campground


-


-


1,564


1,564

Equipment


-


-


1,100


1,982

Vacation cabins


-


-


1,069


9,100

Restaurants


-


-


1,029


1,964

Hotel


6,797


-


917


67,000

Mini-storage


-


-


-


21,800

Marina


-


-


-


9,300

Multi-family


-


-


-


5,900

Other industries


-


-


2,988


12,367











$

6,797


-


40,058


191,500

Non-GAAP Financial Measures

Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables in Appendix A, which provide a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.  This press release and the accompanying tables discuss financial measures such as adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average equity, adjusted net interest margin (tax equivalent), and adjusted efficiency ratio, which are all non-GAAP financial measures. We also present in this press release and the accompanying tables pre-tax, pre-provision earnings, pre-tax, pre-provision return on average assets, and the allowance for loan losses to loans excluding PPP loans which are also non-GAAP financial measures. We believe that such non-GAAP financial measures are useful because they enhance the ability of investors and management to evaluate and compare the Company's operating results from period to period in a meaningful manner.  Non-GAAP financial measures should not be considered as an alternative to any measure of performance calculated pursuant to GAAP, nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies.  Investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.  Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.

Forward-Looking Statements

This press release contains forward-looking statements. The words "expect," "intend," "should," "may," "could," "believe," "suspect," "anticipate," "seek," "plan," "estimate" and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical fact may also be considered forward-looking. Such forward-looking statements involve known and unknown risks and uncertainties that include, without limitation, (i) further deterioration in the financial condition of our borrowers resulting in significant increases in loan losses and provisions for those losses, (ii) the further effects of the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on general economic and financial market conditions and on our and our customers' business, results of operations, asset quality and financial condition; (iii) deterioration in the real estate market conditions in our market areas, (iv) the impact of increased competition with other financial institutions, including pricing pressures, and the resulting impact on our results, including as a result of compression to our net interest margin, (v) the deterioration of the economy in our market areas, (vi) fluctuations or differences in interest rates on loans or deposits from those that we are modeling or anticipating, including as a result of our inability to better match deposit rates with the changes in the short-term rate environment, or that affect the yield curve, (vii) the ability to grow and retain low-cost core deposits, (viii) significant downturns in the business of one or more large customers, (ix) effectiveness of our asset management activities in improving, resolving or liquidating lower quality assets, (x) our inability to maintain the historical, long-term growth rate of our loan portfolio, (xi) risks of expansion into new geographic or product markets, (xii) the possibility of increased compliance and operational costs as a result of increased regulatory oversight, (xiii) our inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels, (xiv) changes in state or Federal regulations, policies, or legislation applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, (xv) changes in capital levels and loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments, (xvi) inadequate allowance for loan losses, (xvii) results of regulatory examinations, (xviii) the vulnerability of our network and online banking portals, and the systems of parties with whom we contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches, (xix) the possibility of increased corporate or personal tax rates and the resulting reduction in our and our customers' businesses as a result of any such increases, (xx) approval of the declaration of any dividend by our Board of Directors, (xxi) loss of key personnel, (xxii) adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future obligatory litigation, examinations or other legal and/or regulatory actions, and (xxiii) the negative impact of possible future inflationary pressures.  These risks and uncertainties may cause our actual results or performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Our future operating results depend on a number of factors which were derived utilizing numerous assumptions that could cause actual results to differ materially from those projected in forward-looking statements.

About Mountain Commerce Bancorp, Inc. and Mountain Commerce Bank

Mountain Commerce Bancorp, Inc. is the holding company for Mountain Commerce Bank.  The Company's shares of common stock trade on the OTCQX under the symbol "MCBI".

Mountain Commerce Bank is a state-chartered financial institution headquartered in Knoxville, TN. The Bank traces its history back over a century and serves East Tennessee through 5 branches located in Erwin, Johnson City, Knoxville and Unicoi.  The Bank focuses on relationship banking of small and medium-sized businesses and high net worth individuals who value the personal service and attention that only a community bank can offer.  For further information, please visit us at www.mcb.com

Mountain Commerce Bancorp, Inc. and Subsidiary

Condensed Consolidated Statements of Income

(Amounts in thousands, except share data)









Three Months Ended




March 31,




2021

2020

Interest income





Loans

$

10,664

10,198


Investment securities - taxable


470

265


Investment securities - tax exempt


96

3


Dividends and other


52

117




11,282

10,583

Interest expense




  Deposits





Savings


251

1,014


Interest bearing transaction accounts


69

227


Time certificates of deposit of $250,000 or more


293

629


Other time deposits


241

732


     Total deposits


854

2,602


Senior debt


113

153


Subordinated debt


163

-


FHLB & FRB advances


122

122




1,252

2,877






Net interest income


10,030

7,706






Provision for loan losses


-

1,495






Net interest income after provision for loan losses


10,030

6,211






Noninterest income





Service charges and fee income


294

297


Bank owned life insurance


31

35


Realized gain on sale of investment securities available for sale


1

-


Unrealized gains on equity securities


1

-


Gain on sale of loans


102

64


Wealth management


164

116


Swap fees


-

245


Other noninterest income


15

25




608

782

Noninterest expense





Compensation and employee benefits


2,320

2,379


Occupancy


359

338


Furniture and equipment


148

89


Data processing


395

337


FDIC insurance


115

42


Office


163

128


Advertising


42

46


Professional fees


218

256


Real estate owned


30

(16)


Other noninterest expense


451

304




4,241

3,903






Income before income taxes


6,397

3,090






Income taxes


1,537

804






Net income

$

4,860

2,286






Undistributed earnings allocated to unvested shares


15

6






Net income available to common shareholders

$

4,845

2,280






Earnings per common share:





Basic

$

0.77

0.36


Diluted

$

0.77

0.36






Weighted average common shares outstanding:





Basic


6,268,706

6,271,810


Diluted


6,271,531

6,294,540




Mountain Commerce Bancorp, Inc. and Subsidiary

Condensed Consolidated Balance Sheets

(Amounts in thousands)











March 31,



December 31,




2021



2020

Assets













Cash and due from banks

$

11,768


$

14,287

Interest-earning deposits in other banks


57,750



58,081


Cash and cash equivalents


69,518



72,368








Investments available for sale


91,165



77,290

Equity securities


3,630



3,630

Loans held for sale


1,107



418








Loans receivable


956,712



935,482

Allowance for loans losses


(13,158)



(13,313)


Net loans receivable


943,554



922,169








Premises and equipment, net


11,382



11,438

Accrued interest receivable


3,654



4,247

Real estate owned


1,378



-

Bank owned life insurance


9,465



7,435

Restricted stock


3,701



2,951

Deferred tax assets, net 


3,478



3,611

Other assets


4,167



4,413








Total assets

$

1,146,199


$

1,109,970








Liabilities and Shareholders' Equity













Noninterest-bearing

$

250,069


$

208,250

Interest-bearing


570,322



585,631

Wholesale


134,994



128,015


Total deposits


955,385



921,896








FHLB / FRB borrowings


50,000



50,000

Senior debt, net


13,495



13,994

Subordinated debt, net


9,790



9,778

Accrued interest payable


292



495

Post-employment liabilities


3,065



2,992

Other liabilities


6,850



6,974








Total liabilities


1,038,877



1,006,129








Total shareholders' equity


107,322



103,841








Total liabilities and shareholders' equity

$

1,146,199


$

1,109,970




Appendix A - Reconciliation of Non-GAAP Financial Measures 







Three Months Ended



March 31



(Dollars in thousands, except per share data)







2021

2020

Adjusted Net Income




Net income (GAAP)

$

4,860

2,286

Realized gain on sale of investment securities


(1)

-

Unrealized gains on equity securities


(1)

-

Accretion of PPP fees, net


(874)

-

(Gain) loss from sale of REO


-

-

Provision for loan losses


-

1,495

Provision for unfunded loan commitments


135

-

Tax effect of adjustments


193

(391)

Adjusted net income (Non-GAAP)

$

4,313

3,390





Adjusted Diluted Earnings Per Share




Diluted earnings per share (GAAP)

$

0.77

0.36

Realized gain on sale of investment securities


(0.00)

-

Unrealized gains on equity securities


(0.00)

-

Accretion of PPP fees, net


(0.14)

-

(Gain) loss from sale of REO


-

-

Provision for loan losses


-

0.24

Provision for unfunded loan commitments


0.02

-

Tax effect of adjustments


0.03

(0.06)

Adjusted net income (Non-GAAP)


0.69

0.54





Adjusted Return on Average Assets




Return on average assets (GAAP)


1.73%

0.98%

Realized gain on sale of investment securities


0.00%

0.00%

Unrealized gains on equity securities


0.00%

0.00%

Accretion of PPP fees, net


-0.31%

0.00%

(Gain) loss from sale of REO


0.00%

0.00%

Provision for loan losses


0.00%

0.53%

Provision for unfunded loan commitments


0.05%

0.00%

Tax effect of adjustments


0.07%

-0.14%

Adjusted return on average assets (Non-GAAP)


1.53%

1.45%





Adjusted Return on Average Equity




Return on average equity (GAAP)


18.36%

9.84%

Realized gain on sale of investment securities


0.00%

0.00%

Unrealized gains on equity securities


0.00%

0.00%

Accretion of PPP fees, net


-3.30%

0.00%

(Gain) loss from sale of REO


0.00%

0.00%

Provision for loan losses


0.00%

5.65%

Provision for unfunded loan commitments


0.51%

0.00%

Tax effect of adjustments


0.73%

-1.48%

Adjusted return on average equity (Non-GAAP)


16.30%

14.60%





Adjusted Efficiency Ratio




Efficiency ratio (GAAP)


39.87%

45.98%

Realized gain on sale of investment securities


N/M

N/M

Unrealized gains on equity securities


N/M

N/M

Accretion of PPP fees, net


N/M

N/M

(Gain) loss from sale of REO


N/M

N/M

Provision for loan losses


N/M

N/M

Provision for unfunded loan commitments


N/M

N/M

Adjusted efficiency ratio (Non-GAAP)


42.85%

45.98%

N/M - Not Meaningful
















Appendix A - Reconciliation of Non-GAAP Financial Measures, Continued







Three Months Ended



March 31,



(Dollars in thousands, except per share data)







2021

2020

Adjusted Net Interest Margin (tax-equivalent) (1)




Net interest margin (tax-equivalent) (GAAP)


3.82%

3.46%

Accretion of PPP fees, net


-0.34%

0.00%

Adjusted net interest margin (tax-equivalent) (Non-GAAP)


3.48%

3.46%





Allowance to Non-PPP loans




Allowance to loans (GAAP)


1.38%

0.89%

Impact of PPP loans


0.15%

0.00%

Allowance to non-PPP loans (non-GAAP)


1.53%

0.89%





Pre-tax Pre-Provision Earnings




Net income (GAAP)


4,860

2,286

Income taxes


1,537

804

Provision for (recovery of) loan losses


-

1,495

Pre-tax Pre-provision earnings (non-GAAP)


6,397

4,585





Pre-tax Pre-Provision Return on Average Assets 




Return on average assets (GAAP)


1.73%

0.98%

Impact of excluding income taxes


0.55%

0.34%

Impact of excluding provision for loan losses


-

0.64%

Pre-tax Pre-Provision Return on Average Assets (non-GAAP)


2.27%

1.97%



(1)

See Appendix B to this press release for more information on tax equivalent net interest margin




Appendix B - Tax Equivalent Net Interest Margin Analysis 


























For the Three Months Ended March 31,




2021



2020




Average





Average






Outstanding 


Yield / 



Outstanding 


Yield / 




Balance

Interest

Rate



Balance

Interest

Rate




(Dollars in thousands)

Interest-earning Assets:











Loans - taxable, including loans held for sale

$

915,474

10,664

4.72%


$

810,039

10,198

5.06%


Loans - tax exempt (2)


11,569

192

6.75%



-

-

0.00%


Investments - taxable


69,119

470

2.76%



46,173

265

2.31%


Investments - tax exempt (1)


12,036

122

4.09%



364

4

4.20%


Interest earning deposits


72,037

15

0.08%



30,063

51

0.68%


Other investments, at cost


6,598

36

2.21%



9,439

66

2.81%


Total interest-earning assets


1,086,833

11,499

4.29%



896,078

10,584

4.75%


Noninterest earning assets


38,207





36,165




Total assets

$

1,125,040




$

932,243














Interest-bearing liabilities:











Interest-bearing transaction accounts

$

31,210

8

0.10%


$

20,837

26

0.50%


Savings accounts


323,890

252

0.32%



287,862

1,014

1.42%


Money market accounts


69,795

60

0.35%



60,622

201

1.33%


Retail time deposits


154,569

406

1.07%



167,514

877

2.11%


Wholesale time deposits


134,676

128

0.39%



113,949

484

1.71%


     Total interest bearing deposits


714,140

854

0.48%



650,784

2,602

1.61%













Federal Home Loan Bank & FRB advances


50,000

122

0.99%



36,353

122

1.35%


Senior debt


13,625

113

3.36%



15,712

153

3.92%


Subordinated debt


9,779

163

6.76%



-

-

0.00%


Total interest-bearing liabilities


787,544

1,252

0.64%



702,849

2,877

1.65%













Noninterest-bearing deposits


222,036





128,640




Other noninterest-bearing liabilities


9,605





7,853




Total liabilities


1,019,185





839,342















Total shareholders' equity


105,855





92,901




Total liabilities and shareholders' equity

$

1,125,040




$

932,243















Tax-equivalent net interest income



10,247





7,707














Net interest-earning assets (3)

$

299,289




$

193,229















Average interest-earning assets to interest-











     bearing liabilities


138%





127%















Tax-equivalent net interest rate spread (4)


3.65%





3.10%















Tax equivalent net interest margin (5)


3.82%





3.46%





(1)

Tax exempt investments are calculated giving effect to a 21% federal tax rate

(2)

Tax exempt loans reflect the tax equivalent yield of a 5% state tax credit

(3)

Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities

(4)

Tax-equivalent net interest rate spread represents the difference between the tax equivalent yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(5)

Tax equivalent net interest margin represents tax equivalent net interest income divided by average total interest-earning assets

 

Cision View original content:http://www.prnewswire.com/news-releases/mountain-commerce-bancorp-inc-announces-first-quarter-2021-results-and-4-increase-in-quarterly-cash-dividend-301275957.html

SOURCE Mountain Commerce Bancorp, Inc.

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