Mountain Commerce Bancorp sees net income surge in Q3 2024, announces dividend

Mountain Commerce Bancorp, Inc., the parent company of Mountain Commerce Bank, released its Q3 2024 financial report, showcasing significant growth in net income and earnings per share (EPS). The company’s net income for the quarter was $3.0 million, marking a notable increase compared to $2.5 million in the same quarter of 2023. Diluted earnings per share rose to $0.48, up from $0.40 a year earlier, demonstrating solid performance amidst a challenging economic environment.

The company also declared its sixteenth consecutive quarterly cash dividend of $0.05 per share. This dividend will be paid on December 2, 2024, to shareholders recorded as of November 4, 2024. Mountain Commerce Bancorp’s continued dividend payouts highlight its focus on returning value to its shareholders and maintaining financial stability.

Strong Net Interest Margin Drives Revenue Growth

Mountain Commerce Bancorp reported that its net interest margin (NIM) rose to 2.08% in Q3 2024, an improvement from 2.00% in Q2 2024. The increase was attributed to enhanced loan yields and stable funding costs. CEO William E. Edwards III indicated that the company’s proactive approach in managing its loan portfolio and cost of funds has significantly contributed to this growth.

Revenue from net interest income reached $8.3 million for the quarter, slightly up from $8.0 million in Q3 2023. Edwards highlighted that the average yield on taxable loans climbed to 5.89%, reflecting the company’s successful loan repricing strategies and efforts to maximize profitability.

Asset Quality and Liquidity Remain Strong

Mountain Commerce Bancorp’s asset quality continues to outperform, with non-performing assets to total assets at a low 0.08%. The bank reported no real estate-owned properties as of September 30, 2024, underscoring its disciplined risk management. Additionally, the company’s liquidity position remains solid, with available funding exceeding uninsured deposits by over $100 million.

The company’s tangible common equity ratio rose to 7.50% in Q3 2024, from 7.06% in Q2 2024, indicating strengthened capital reserves. Mountain Commerce Bancorp’s leverage ratio remained steady at 9.29%, demonstrating its commitment to maintaining a robust capital structure amidst market fluctuations.

Expert Insight: Future Prospects

Analysts expect Mountain Commerce Bancorp to continue leveraging its strategic growth in key markets like Brentwood, West Knoxville, and Johnson City. Edwards stated that these branches have shown promising growth, contributing positively to overall revenue and profitability. The bank’s disciplined approach to expanding in high-growth areas is anticipated to sustain its upward trajectory through 2025.

Market Cap and Stock Performance

Mountain Commerce Bancorp’s market capitalization stands at approximately $133.68 million as of October 2024, with its stock price maintaining a level of $20.98 per share. Despite broader market volatility, the company’s consistent dividend policy and revenue growth have supported its stock price, fostering a stable investor base.