KNOXVILLE, Tenn. - Mountain Commerce Bancorp, Inc. (OTCQX: MCBI), the holding company for Mountain Commerce Bank, today disclosed financial outcomes for the second quarter and first half of 2024, along with a consistent quarterly cash dividend of $0.05 per common share.
The dividend, marking the fifteenth consecutive quarterly payout, is scheduled for September 2, 2024, to shareholders on record as of August 5, 2024.
President and CEO William E. "Bill" Edwards, III highlighted a significant rise in net interest margin from 1.66% in the first quarter of 2024 to 2.00% in the second quarter, reaching 2.08% in June. Net interest income makes up about 90% of the company's revenue, a vital earnings driver.
Edwards noted positive trends, including a reversal in deposit cost trends and an anticipated continued margin improvement throughout 2024 and into early 2025. The average yield on taxable loans increased to 5.77%, while the cost of funds declined to 3.70%.
Asset quality remained robust with non-performing assets to total assets at 0.08%, no real estate owned, and a nearly 9x coverage ratio of allowance to non-performing loans. Liquidity stayed strong, with over $50 million available beyond uninsured and uncollateralized deposits.
Noninterest expenses decreased to 1.36% of average assets from 1.47% in the second quarter of 2023, which Edwards believes positions the company among the lowest in its peer group. The dividend remains unchanged as the company manages tangible book value and capital for future growth.
The newly constructed Johnson City financial center opened on July 1, 2024, expected to enhance the bank's deposit market share in the region.
Net income for the second quarter of 2024 was reported at $2.32 million, with diluted earnings per share at $0.37. The return on average assets (ROAA) stood at 0.53%, and the return on average equity was 7.46%.
For the first half of 2024, net income reached $3.83 million, and diluted earnings per share were $0.61. The ROAA for the six-month period was 0.86%, with a return on average equity of 12.40%.
The bank's effective tax rate for the first half of 2024 reflected a more normalized rate compared to the same period in 2023. Total assets increased by 3.0% to $1.79 billion as of June 30, 2024.
This financial report is based on a press release statement from Mountain Commerce Bancorp, Inc.
InvestingPro Insights
Mountain Commerce Bancorp, Inc. (OTCQX: MCBI) maintains a solid financial position as it announces its second quarter and first half results for 2024, with a continued focus on delivering shareholder value through consistent dividends.
The bank's market capitalization stands at a robust $113.46 million, reflecting investor confidence in its business model and growth prospects. The price-to-earnings (P/E) ratio is currently at 18.5, which can offer insights into the market's valuation of the company relative to its earnings power.
While the company has experienced a decline in revenue growth, with a -29.45% change over the last twelve months as of Q1 2024, it is important to note that the gross profit for the same period remained stable at $31.72 million. This indicates that despite challenges, the bank has been able to maintain its profitability margins. Moreover, the bank has reported a dividend yield of 1.12%, with the ex-date of the last dividend being May 3, 2024, demonstrating its commitment to returning value to shareholders.
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