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Mountain Commerce Bancorp, Inc. reports strong Q2 2019 earnings

Contributed To The Press • Jul 23, 2019 at 2:59 PM

KNOXVILLE — Mountain Commerce Bancorp, Inc., a Knoxville, Tennessee-based bank holding company and parent of Mountain Commerce Bank, reported consolidated net income of $2.96 million for the second quarter of 2019, up from $2.45 million for the second quarter of 2018, an increase of 21 percent. Earnings per fully diluted share for the quarter ended June 30, 2019 totaled $0.47 versus $0.39 for the second quarter of 2018.

It was the eleventh consecutive quarter in which MCB achieved record operating earnings.

For the six months ending June 30, 2019, the company reported net income of $5.85 million, up from $4.78 million during the same period in 2018, an increase of 22 percent. Earnings per fully diluted share for the six months ended June 30, 2019 totaled $0.93 versus $0.77 for the same period in 2018.

For the six months ending June 30, 2019, non-interest income increased 2 percent to $875,000 from $862,000 during the same period in 2018. Included in these figures was a $266,000 net loss on sale of investment securities in order to position the balance sheet. Partially offsetting this loss was $228,000 earned in non-interest fee income from swap fees.

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 second quarter of 2019 was 49.9 percent, while annualized ROAE was 14.32 percent and annualized ROAA was 1.36 percent. Nonperforming assets, which includes non-accruing loans and other real estate owned, were $6.75 million — or 0.77 percent of assets — at June 30, 2019 versus $8.71 million — or 1.08 percent of assets — at June 30, 2018.

Total assets as of June 30, 2019 were $881.7 million, an increase of $74.3 million or 9 percent from June 30, 2018. Over the same period, gross loans increased 10 percent to $740.6 million, while deposits grew 10 percent to $774.4 million. Shareholders' equity totaled $84.2 million — or 9.6 percent of assets — at June 30, 2019 versus $70.4 million — or 8.7 percent of assets — at June 30, 2018. The tangible book value was $13.61 at the end of the second quarter of 2019 versus $11.51 at the end of the second quarter of 2018, an increase of $2.10, or 18 percent.

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