KNOXVILLE, Tenn., Jan. 20, 2026 /PRNewswire/ -- Mountain Commerce Bancorp, Inc. (the "Company") (OTCQX: MCBI), the holding company for century-old Mountain Commerce Bank (the "Bank"), today announced financial results and related data as of and for the three and twelve months ended December 31, 2025.
The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.07 per common share, its twenty-first consecutive quarterly dividend. The dividend is payable on March 2, 2026 to shareholders of record as of the close of business on February 2, 2026.
Management Commentary
William E. "Bill" Edwards, III, Chief Executive Officer of the Company, commented as follows:
"We are pleased to see our earnings continue to improve with adjusted return on average assets and equity rising to 0.67% and 8.60%, respectively, for the twelve months ended 2025, compared to 0.45% and 6.22%, respectively, for the twelve months ended 2024. We continued to see further improvements in our net interest margin, which improved from 2.01% for the twelve months ended 2024 to 2.44% for the twelve months ended 2025.
While we have experienced an increase in non-performing assets in 2025, we believe these assets are well collateralized and do not represent a risk of material loss to the Company. Our adjusted noninterest expense to average assets was 1.52% for the twelve months ended 2025, which continues to be nearly half that of similarly-sized peer banks based on recent call report data. We saw an increase in non-interest expense in the fourth quarter of 2025 primarily attributable to merger-related expenses associated with our proposed merger with Home Bancshares, as well as certain non-recurring repairs and maintenance performed on buildings and properties owned by the Company. Additionally, the Company recognized a provision for credit losses of $0.6 million in the fourth quarter of 2025. Careful management of our dividend and asset growth has allowed our tangible common equity to tangible assets ratio to rise to 8.22% at December 31, 2025 from 7.58% at December 31, 2024, with the Bank's leverage ratio finishing the fourth quarter of 2025 at 9.17%. Additionally, tangible book value per share rose to $22.80 as of December 31, 2025 from $20.70 as of December 31, 2024, marking a 10.15% increase.
In summary, we will seek to continue to carefully control our risk and growth while targeting net interest margin expansion and earnings growth in 2026. Our modeling and forecasting suggest continued year-over-year improvement in earnings, assuming the current macro-economic conditions do not deteriorate."
Proposed Merger Update
On December 8, 2025, the Company and Home Bancshares announced that they had entered into a definitive agreement providing for the acquisition of the Company by Home Bancshares in an all-stock merger transaction with Home Bancshares as the surviving entity. Under the terms of the merger agreement, the Company's shareholders will receive 0.85 shares of Home Bancshares' common stock for each share of the Company's common stock owned by the shareholder at the effective time of the merger.
Home Bancshares and its subsidiary bank, Centennial Bank, have filed all required bank regulatory applications related to the proposed merger and Home Bancshares has filed a registration statement with the Securities and Exchange Commission related to the proposed transaction, which has not yet been declared effective by the SEC.
The Company's proposed merger with Home Bancshares is expected to close early in the first half of 2026, subject to the satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the Company's shareholders.
Regarding the proposed merger, Mr. Edwards commented, "I remain excited for our proposed combination with Home Bancshares and am pleased with the progress we and Home have made in filing the required regulatory applications and our respective initial efforts to develop integration plans that I believe will result in a smooth transaction for our customers and communities. I've also enjoyed talking to our customers about the potential benefits that they will enjoy as a result of our combination with Home and believe our team is thrilled with the idea of combining with a bank of Centennial's caliber and operating philosophy. I also continue to believe that our combination with Home will reward our shareholders, many of whom have been owners of our company since its founding, with, among other benefits, an increased dividend and additional liquidity for their shares."
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 and twelve months ended December 31, 2025. As further detailed in Appendix A and Appendix C to this press release, adjusted results (which are non-GAAP financial measures), reflect adjustments for realized and unrealized investment gains and losses, gains and losses from the sale of fixed assets and other real estate owned, corporate and strategic planning expenses, including merger-related expenses, the provision for or recovery of credit losses, and net loan charge-offs or recoveries. See Appendix B to this press release for more information on the Company's tax equivalent net interest margin. All financial information in this press release is unaudited.
For the Three Months Ended December 31
(Dollars in thousands, except per share data)
2025 2024
GAAP Adjusted GAAP Adjusted
(1) (1)
Net income $
2,304 2,915 $
2,092 2,481
Diluted earnings per share $
0.37 0.46 $
0.33 0.39
Return on average assets (ROAA) 0.52 % 0.65 % 0.47 % 0.56 %
Return on average equity 6.34 % 8.02 % 6.32 % 7.49 %
Noninterest expense to average assets 1.67 % 1.61 % 1.40 % 1.40 %
Net interest margin (tax equivalent) 2.54 % 2.54 % 2.29 % 2.29 %
Pre-tax, pre-provision earnings (1)
$ 3,556
$ 3,441
Pre-tax, pre-provision ROAA (1) 0.80 % 0.78 %
(1) Represents a non-GAAP financial measure. See Appendix A to this press release for more information.
For the Twelve Months Ended December 31
(Dollars in thousands, except per share data)
2025 2024
GAAP Adjusted GAAP Adjusted
(1) (1)
Net income $
11,187 12,025 $
8,923 7,946
Diluted earnings per share $
1.78 1.91 $
1.42 1.27
Return on average assets (ROAA) 0.63 % 0.67 % 0.50 % 0.45 %
Return on average equity 8.00 % 8.60 % 6.99 % 6.22 %
Noninterest expense to average assets 1.54 % 1.52 % 1.38 % 1.37 %
Net interest margin (tax equivalent) 2.44 % 2.44 % 2.01 % 2.01 %
Pre-tax, pre-provision earnings (1)
$ 14,771
$ 9,756
Pre-tax, pre-provision ROAA (1) 0.83 % 0.55 %
(1) Represents a non-GAAP financial measure. See Appendix A to this press release for more information.
Five Quarter Trends
For the Three Months Ended
(Dollars in thousands, except per share data)
2025 2024
December 31 September 30 June 30 March 31 December 31
GAAP GAAP GAAP GAAP GAAP
Net income $
2,304 3,898 2,806 2,179 2,092
Diluted earnings per share $
0.37 0.62 0.45 0.35 0.33
Return on average assets (ROAA) 0.52 % 0.87 % 0.63 % 0.50 % 0.47 %
Return on average equity 6.34 % 11.03 % 8.17 % 6.43 % 6.32 %
Noninterest expense to average assets 1.67 % 1.46 % 1.55 % 1.50 % 1.40 %
Net interest margin (tax equivalent) 2.54 % 2.50 % 2.40 % 2.31 % 2.29 %
Yield on interest-earning assets 5.57 % 5.61 % 5.65 % 5.58 % 5.69 %
Cost of funds 3.12 % 3.19 % 3.32 % 3.30 % 3.48 %
2025 2024
December 31 September 30 June 30 March 31 December 31
Adjusted (1) Adjusted (2) Adjusted Adjusted
(2) (2) Adjusted (1)
Net income $
2,915 3,858 3,037 2,214 2,481
Diluted earnings per share $
0.46 0.62 0.48 0.35 0.39
Return on average assets (ROAA) 0.65 % 0.86 % 0.68 % 0.50 % 0.56 %
Return on average equity 8.02 % 10.92 % 8.84 % 6.53 % 7.49 %
Noninterest expense to average assets 1.61 % 1.46 % 1.49 % 1.50 % 1.40 %
Pre-tax, pre-provision earnings $
3,556 4,781 3,612 2,823 3,441
Pre-tax, pre-provision ROAA 0.80 % 1.07 % 0.81 % 0.64 % 0.78 %
Asset Quality and Other Data
As of and for As of and for As of and for
the the the
3 Months Ended 3 Months Ended 12 Months Ended
December 31, September 30, December 31,
2025 2025 2024
(Dollars in thousands, except share data)
Asset Quality
Non-performing loans $
6,058 $
7,661 $
1,383
Real estate owned $
3,103 $
2,788 $
2,572
Non-performing assets $
9,161 $
10,449 $
3,955
Non-performing loans to total loans 0.41 % 0.52 % 0.09 %
Non-performing assets to total assets 0.52 % 0.58 % 0.23 %
Year-to-date net charge-offs (recoveries) $
158 $
167 $
(247)
Allowance for credit losses to non-performing
loans 191.91 % 148.40 % 835.14 %
Allowance for credit losses to total loans 0.78 % 0.77 % 0.79 %
Other Data
Cash dividends declared and paid $
0.070 $
0.070 $
0.230
Shares outstanding 6,385,286 6,357,359 6,393,081
Book and tangible book value per share (2) $
22.80 $
22.50 $
20.70
Accumulated other comprehensive loss (AOCI) per
share (1.75) (1.85) (2.37)
Book and tangible book value per share, excluding
AOCI (1) (2) 24.56 $
24.35 $
23.07
Closing market price per common share $
22.85 $
20.45 $
21.52
Closing price to book value ratio 100.20 % 90.88 % 103.95 %
Tangible common equity to tangible assets ratio 8.22 % 7.94 % 7.58 %
Bank regulatory leverage ratio 9.17 % 9.22 % 9.31 %
(1) As further detailed in Appendix A and Appendix C to this press release, this is a non-
GAAP financial measure.
(2) The Company does not have any intangible
assets.
Net Interest Income
Net interest income increased $1.2 million, or 13.1%, from $9.1 million for the three months ended December 31, 2024 to $10.3 million for the same period in 2025. The change between the periods was primarily the net result of the following factors:
- Average interest-earning assets increased $15.5 million, or 0.9%, from $1.662 billion to $1.677 billion, driven primarily by increases in taxable loans and interest earning deposits.
- Average net interest-earning assets increased $3.8 million, or 1.3%, from $294.7 million to $298.5 million, due primarily to $12.8 million increase in shareholders' equity.
- Cost of funds declined 36 bp from 3.48% to 3.12% resulting in tax-equivalent net interest rate spread expanding by 33 bp to 1.88% from 1.56% and tax-equivalent net interest margin expanding 25 bp to 2.54% from 2.29%. The cost of funds and the yield earned on interest-earning assets over the comparable period last year have been impacted by 100 bp of decreases in short-term interest rates by the Federal Reserve since December 2024.
Net interest income increased $7.4 million, or 23.5%, from $31.5 million for the twelve months ended December 31, 2024 to $38.9 million for the same period in 2025. The change between the periods was primarily the net result of the following factors:
- Average interest-earning assets increased $2.6 million, or 0.2%, from $1.669 billion to $1.672 billion, driven primarily by increases in taxable loans.
- Average net interest-earning assets increased $6.1 million, or 2.1%, from $285.6 million to $291.6 million, due primarily to a $12.1 million increase in shareholders' equity.
- Cost of funds declined 45 bp from 3.70% to 3.25% resulting in tax-equivalent net interest rate spread expanding by 51 bp from 1.26% to 1.77% and tax-equivalent net interest margin expanding 43 bp from 2.01 % to 2.44%.
Rate Sensitivity
The Company has the following assets, derivatives and liabilities subject to contractual repricing of interest rates:
(In thousands) December 31, 2025
Interest-earning deposits $
65,202
Investments available for sale 14,300
Loans receivable 460,411
Interest rate swaps (notional) 260,000
$
799,913
Deposits $
105,428
Senior debt 17,996
$
123,424
Interest Rate Swaps
The Company has the following interest rate swaps designated as hedges as of December 31, 2025:
Estimated
Fair Annual Receive Pay
Hedged Item Notional Value Earnings Term Maturity Rate Rate
(dollars in thousands)
Fixed rate loans $
150,000 (1,496) (1,356) 3 Yrs 10/1/2026 3.79 % 4.69 %
Fixed rate loans 75,000 (103) 58 2 Yrs 9/1/2026 3.79 % 3.71 %
Floating rate deposit 35,000 (52) 60 1.5
Yrs 10/22/2026 3.82 % 3.65 %
$
260,000 (1,651) (1,239)
Provision For (Recovery Of) Credit Losses
The following summarizes the Company's provision for (recovery of) credit losses and net charge-offs (recoveries) for each of the last five quarters:
Three Months Ended
December 31, September 30, June 30, March 31, December 31,
(In thousands) 2025 2025 2025 2025 2024
Provision for (recovery of) credit losses $
575 (33) 138 64 480
Net charge-offs (recoveries) (9) 5 7 155 11
The Company continues to experience historically lower levels of specific reserves and net charge-offs which, when combined with minimal changes in economic factors, has resulted in minimal provisions for credit losses during the last five quarters. Given our limited loss history, the Company utilizes peer data in its estimation of expected loan losses.
Noninterest Income
The following summarizes changes in the Company's noninterest income for the periods indicated:
Three Months Ended December 31
(In thousands) 2025 2024 Change
Service charges and fees $
401 386 15
Bank owned life insurance 57 57
Realized and unrealized gain (loss) on equity securities 12 (58) 70
Gain (loss) on sale of loans 9 9
Wealth management 219 199 20
Other 26 (2) 28
Total noninterest income $
724 582 142
Noninterest income increased to $0.7 million in the fourth quarter of 2025 from $0.6 million in the same quarter of 2024. The following factors had an impact on noninterest income during these periods:
- Realized and unrealized gain (loss) on equity securities improved by $0.1 million from the fourth quarter of 2024 primarily due to improved equity market conditions.
Twelve Months Ended December 31
(In thousands) 2025 2024 Change
Service charges and fees $
1,542 1,528 14
Bank owned life insurance 224 223 1
Realized gain (loss) on sale of investment securities available for sale (160) 69 (229)
Realized and unrealized gain (loss) on equity securities 30 (28) 58
Gain on sale of loans 15 38 (23)
Gain (loss) on sale of fixed assets 5 30 (25)
Wealth management 901 810 91
Swap fees 385 51 334
Limited partnership income 352 352
Other 48 24 24
Total noninterest income $
3,342 2,745 597
Noninterest income increased to $3.3 million during the twelve months ended December 31, 2025 from $2.7 million during the same period of 2024. The following factors had an impact on noninterest income during these periods:
- Realized gain (loss) on sale of investment securities available for sale declined by $0.2 million from the first twelve months of 2024 due to management's decision during January 2025 to sell a municipal bond at a loss as a risk mitigation measure given that it was issued by a municipality that was in close proximity to the California wildfires.
- Wealth management fees improved by $0.1 million as a result of an improvement in equity market conditions and assets under management.
- Swap fees increased $0.3 million due to an increased demand from customers wanting to lock in a fixed interest rate on loans. The Bank receives a fee for delivering the swap to a third party with our borrower as counterparty to the swap, but does not maintain a contractual obligation for the swap other than in the event of a default.
- Limited partnership income increased $0.4 million from distributions from certain of the Company's investments in limited partnerships, which tend to have distributions towards the end of their life.
Noninterest Expense
The following summarizes changes in the Company's noninterest expense for the periods indicated:
Three Months Ended December 31
(In thousands) 2025 2024 Change
Compensation and employee benefits $
3,546 3,010 536
Occupancy 879 742 137
Furniture and equipment 367 348 19
Data processing 731 634 97
FDIC insurance 334 332 2
Office 188 173 15
Advertising 137 120 17
Professional fees 521 450 71
Real Estate Owned 9 9
Merger-related expenses 255 255
Other noninterest expense 484 396 88
Total noninterest expense $
7,451 6,205 1,246
Noninterest expense increased $1.3 million from $6.2 million for the three months ended December 31, 2024 to $7.5 million in the same period of 2025. The following factors had an impact on noninterest expense during these periods:
- Compensation and employee benefits expense increased $0.5 million, or 17.8%, due primarily to an increase in incentive accruals and bonuses tied to forecasted 2025 performance, as well as merit increases and an increase in FTE employees from 108 to 110.
- Merger-related expenses increased $0.3 million due to certain merger-related services received in the fourth quarter of 2025 associated with the proposed merger with Home Bancshares.
Twelve Months Ended December 31
(In thousands) 2025 2024 Change
Compensation and employee benefits $
14,007 11,912 2,095
Occupancy 3,162 2,753 409
Furniture and equipment 1,295 1,182 113
Data processing 2,738 2,643 95
FDIC insurance 1,402 1,450 (48)
Office 744 733 11
Advertising 433 443 (10)
Professional fees 1,990 2,041 (51)
Real Estate Owned 25 25
Merger-related expenses 255 255
Other noninterest expense 1,472 1,378 94
Total noninterest expense $
27,523 24,535 2,988
Noninterest expense increased $3.0 million, or 12.2%, from $24.5 million for the twelve months ended December 31, 2024 to $27.5 million in the same period of 2025. The following factors had an impact on changes in noninterest expense during these periods:
- Compensation and employee benefits expense increased $2.1 million, or 17.6%, due primarily to an increase in incentive accruals and bonuses tied to forecasted 2025 performance, as well as merit increases.
- Occupancy and furniture and equipment expenses increased by a combined $0.5 million, or 13.3%, due to the opening of the Johnson City financial center on July 1, 2024, offset, in part, by the elimination of expenses for the formerly leased facilities. Additionally, certain non-recurring maintenance and repair services were performed for buildings and properties owned by the Company in the fourth quarter of 2025.
- Merger-related expenses increased $0.3 million due to certain merger-related services received in the fourth quarter of 2025 associated with the proposed merger with Home Bancshares.
Income Taxes
The effective tax rates of the Company were as follows for the periods indicated:
Three Months Ended December 31
2025 2024
22.71 % 29.35 %
Twelve Months Ended December 31
2025 2024
20.25 % 22.58 %
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) and investments in tax-free municipal securities, and state tax credits on certain loans. The Company's effective tax rate declined in the 2025 periods compared to comparable periods in 2024 due to higher utilization of state tax credits.
Balance Sheet
Total assets increased $25.3 million, or 1.45%, from $1.746 billion at December 31, 2024 to $1.771 billion at December 31, 2025. The change was primarily driven by the following factors:
- Available for sale investment security balances decreased $3.8 million, or 3.41%, primarily due to changes in fair value and contractual maturities.
The following summarizes the composition of the Company's available for sale investment securities portfolio (at fair value) as of the periods indicated:
December 31, 2025 December 31, 2024
Estimated Net Estimated Net
Fair Unrealized Fair Unrealized
Value Gain (Loss) Value Gain (Loss)
(in thousands)
Agency MBS / CMO $
11,221 (1,302) 11,560 (1,960)
Agency multifamily (non-guaranteed) 5,867 (374) 7,081 (750)
Agency floating rate 10,992 25 6,647 18
Business Development Companies 3,665 (86) 3,522 (236)
Corporate 17,659 (633) 22,832 (1,860)
Municipal 27,066 (5,428) 25,987 (7,169)
Non-agency MBS / CMO 33,436 (7,293) 35,331 (8,566)
$
109,905 (15,091) 112,960 (20,523)
Non-agency MBS/CMO have an average credit-enhancement of approximately 35% as of December 31, 2025. Municipal securities are generally rated AA or higher.
- The Company did not have any securities classified as held-to-maturity as of December 31, 2025 and 2024.
- Loans receivable increased $27.3 million, or 1.86%, from $1.463 billion at December 31, 2024 to $1.490 billion at December 31, 2025. The Company is intentionally managing its loan growth as it seeks to improve its risk profile by paying down debt, increasing capital, and reducing the amount of its wholesale borrowings. The Company is managing its exposure to commercial real estate and has a regulatory commercial real estate concentration of 335% of total risk-based capital as of December 31, 2025 as compared to 325% at December 31, 2024, while our AD&C concentration remains low at 36% of total risk-based capital as of December 31, 2025 as compared to 43% at December 31, 2024. The following summarizes changes in loan balances over the last five quarters:
December 31, September 30, June 30, March 31, December 31,
2025 2025 2025 2025 2024
(in thousands)
Residential construction $
28,622 23,446 18,811 19,636 14,831
Other construction 35,486 33,642 51,846 51,047 60,474
Farmland 11,904 10,531 8,192 7,577 4,513
Home equity 66,863 64,272 60,625 56,588 57,972
Residential 431,519 430,970 445,966 444,620 449,056
Multi-family 122,875 131,836 125,803 121,511 114,634
Owner-occupied commercial 263,722 266,357 251,842 252,764 252,615
Non-owner occupied commercial 405,089 403,709 395,038 389,666 382,136
Commercial & industrial 111,469 107,338 108,151 114,899 115,234
PPP Program 24 37 50 66 83
Consumer 12,786 11,924 12,068 11,112 11,559
$
1,490,359 1,484,062 1,478,392 1,469,486 1,463,107
The following summarizes the industry components of the Company's non-owner occupied commercial real estate loans as of December 31, 2025. Office loans are primarily comprised of low-rise office space.
Loan % of
Total
($ in thousands) Balance Loans
Hotels $
103,457 6.9 %
Retail 83,612 5.6 %
Office 85,939 5.8 %
Marina 22,943 1.5 %
Campground 21,650 1.5 %
Warehouse 21,460 1.4 %
Mini-storage 16,746 1.1 %
Vacation Rentals 25,119 1.7 %
Car Wash 5,159 0.3 %
Entertainment 8,160 0.5 %
Restaurant 3,853 0.3 %
Other 6,991 0.5 %
$
405,089 27.2 %
The following summarizes the Company's loan portfolio by market where the loan was originated:
December 31, December 31,
(in thousands) 2025 2024
Tri-Cities $
193,148 189,287
Knoxville 1,003,695 1,019,266
Nashville 293,516 254,554
$
1,490,359 1,463,107
- Other real estate owned increased $0.5 million, or 20.7%, from $2.6 million at December 31, 2024 to $3.1 million at December 31, 2025. The following summarizes the detail of Other real estate owned as of the periods indicated:
December 31, December 31,
(in thousands) 2025 2024
Residential $
2,572 2,572
Commercial Real Estate 315
Land 216
$
3,103 2,572
- Total deposits increased $18.3 million, or 1.2%, from $1.527 billion at December 31, 2024 to $1.545 billion at December 31, 2025.
The following summarizes changes in deposit balances over the last five quarters:
December 31, September 30, June 30, March 31, December 31,
2025 2025 2025 2025 2024
(in thousands)
Non-interest bearing transaction $
231,568 257,199 264,725 248,711 248,298
NOW and money market 500,393 514,932 503,216 462,367 431,629
Savings 177,001 177,863 185,815 189,814 189,246
Retail time deposits 375,952 373,209 364,027 372,741 370,989
1,284,914 1,323,203 1,317,783 1,273,633 1,240,162
Wholesale time deposits 260,064 259,438 267,072 296,578 286,552
Total deposits $
1,544,978 1,582,641 1,584,855 1,570,211 1,526,714
The following summarizes core deposits, treasury deposits, and wholesale deposits and average interest rate as of December 31, 2025:
December 31, 2025
($ in thousands) Balance Rate
Core
Non-interest DDA $231,568 0.00 %
Interest DDA 41,454 0.63 %
Money Market 357,160 3.10 %
Savings 128,471 1.83 %
Retail CDs 375,952 4.02 %
Total Core $1,134,605 2.52 %
Treasury
Inspira $55,208 4.45 %
PMA/ICS/CDARS 95,101 3.20 %
Total Treasury $150,309 3.66 %
Wholesale
Brokered CDs 183,113 4.46 %
QwickRate CDs 76,951 4.56 %
Total Wholesale $260,064 4.49 %
Total Deposits $1,544,978 2.96 %
The following summarizes the composition of certificates of deposit by maturity and average interest rate as of December 31, 2025:
Maturity Brokered CD Qwickrate CD Retail CD Total
Date Amount Rate Amount Rate Amount Rate Amount Rate
Q1 2026 70,300 4.56 % 7,341 4.38 % 156,254 4.14 % 233,895 4.27 %
Q2 2026 20,061 3.70 % 17,672 5.24 % 69,260 3.98 % 106,993 4.14 %
Q3 2026 19,465 4.53 % 33,088 4.06 % 52,553 4.23 %
Q4 2026 48,551 4.50 % 24,789 4.20 % 70,640 3.85 % 143,980 4.13 %
Q1 2027 4,435 4.88 % 39,987 3.91 % 44,422 4.01 %
Q2 2027 44,201 4.60 % 2,751 3.88 % 3,172 3.96 % 50,124 4.52 %
Q3 2027 498 3.75 % 1,546 4.21 % 2,044 4.10 %
Q4 2027 492 3.71 % 492 3.71 %
Thereafter 1,513 3.78 % 1,513 3.78 %
183,113 4.46 % 76,951 4.56 % 375,952 4.02 % 636,016 4.21 %
The following summarizes deposits by market where the deposit was originated:
December 31, December 31,
2025 2024
Tri-Cities $
350,140 329,912
Knoxville 668,958 688,049
Nashville 108,620 100,928
$
1,127,718 1,118,889
- FHLB borrowings were $50.0 million at December 31, 2025 and 2024, and consisted of the following at December 31, 2025:
Amounts Original Current Maturity
(000's) Term Rate Date
$
20,000 1 Week 3.69 % 01/07/26
20,000 3 Month 3.89 % 03/16/26
10,000 2 Years 4.38 % 11/05/26
$
50,000 3.91 %
- Total equity increased $13.3 million, or 10.0%, from $132.4 million at December 31, 2024 to $145.6 million at December 31, 2025. The following summarizes the components of the change in total shareholders' equity and tangible book value per share for the twelve months ended December 31, 2025:
Total Tangible
Shareholders' Book Value
Equity Per Share
(In thousands)
December 31, 2024 $
132,353 20.70
Net income 11,187 1.78
Dividends paid (1,659) (0.26)
Stock compensation 943 0.15
Share repurchases from stock compensation (152) (0.02)
Share repurchases (1,003) (0.16)
Change in fair value of investments available for sale 3,947 0.62
December 31, 2025 $
145,616 22.80 *
* Sum of the individual components may not equal the total
The Company's tangible equity to tangible assets ratio increased to 8.22% at December 31, 2025 from 7.58% at December 31, 2024, as the Company continues to manage its growth and dividend levels in light of current income levels. The Company and Bank both remain well capitalized at December 31, 2025, with the Bank maintaining a regulatory leverage ratio of 9.17% at December, 2025.
Share Repurchases
The Company has an active authorization to repurchase up to $5 million of shares through March 31, 2026. 50,000 shares at an average price of $20.00 per share were repurchased pursuant to such plan during the twelve months ended December 31, 2025.
Asset Quality
Non-performing loans to total loans increased to 0.41% at December 31, 2025 from 0.09% at December 31, 2024. Non-performing assets to total assets increased to 0.52% at December 31, 2025 from 0.23% at December 31, 2024. The following summarizes the composition of non-performing loans and related collateral values as of December 31, 2025:
No. of
Collateral Loan Collateral
Properties
Type Amount Value
1 Multifamily
residential $
506 1,058
1 Non-owner occupied
CRE 2,263 2,218
3 1-4 Family
residential 3,223 4,092
5 $
5,992 7,368
Other real estate owned of $3.1 million at December 31, 2025 is comprised of four properties for which no remaining loss on sale is anticipated. Net charge-offs of $0.2 million were recognized during the twelve months ended December 31, 2025 in conjunction with the transfer of multiple properties to other real estate owned, compared to net recoveries of $0.2 million during the year ended December 31, 2024.
The allowance for credit losses to total loans declined to 0.78% at December 31, 2025 from 0.79% at December 31, 2024. Coverage of non-performing loans by the allowance for credit losses was nearly 2 to 1 at December 31, 2025, down from more than 8 to 1 at December 31, 2024 due to the increase in non-performing loans. Loans represented in the increase in non-performing loans during the quarter ended December 31, 2025 have been individually evaluated for collateral adequacy and did require a specific reserve of less than $0.1 million.
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 and Appendix C, 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, and adjusted noninterest expense to average assets, 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 book and tangible book value per share excluding AOCI, 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," "target," "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) deterioration in the financial condition of our borrowers, including as a result of continued elevated interest rates, persistent inflationary pressures and challenging economic conditions, resulting in significant increases in credit losses and provisions for those losses; (ii) the impact of U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting from there, and geopolitical instability, (iii) 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; (iv) deterioration in the real estate market conditions in our market areas; (v) our ability to grow and retain low cost core deposits and retain large, uninsured deposits including during times when we are seeking to limit the rates we pay 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; (vi) the deterioration of the economy in our market areas, including the negative impact of inflationary pressures and other challenging economic conditions on our customers and their businesses; (vii) the possibility that our proposed merger with Home Bancshares does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; (viii) the possibility that our proposed merger with Home Bancshares may be more expensive to complete than anticipated, including as a result of unexpected factors or events? (ix) the risk that the benefits from our proposed merger with Home Bancshares may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, interest rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which we and Home Bancshares operate; (x) the ability to promptly and effectively integrate our and Home Bancshares' businesses; (xi) the reaction to our proposed merger with Home Bancshares from our or Home Bancshares' customers, employees and counterparties; (xii) the diversion of our management's time and attention to merger-related matters; (xiii) risks associated with the shutdown of the United States federal government, including adverse effects on the national or local economies and adverse effects resulting from a shutdown of the U.S. Small Business Administration's SBA loan program; (xiv) our ability to meet our liquidity needs without having to liquidate investment securities that we own while those securities are in an unrealized loss position as a result of the elevated rate environment, or increase the rates we pay on deposits or increase our levels of non-core deposits to levels that cause our net interest margin to decline; (xv) significant downturns in the business of one or more large customers; (xvi) effectiveness of our asset management activities in improving, resolving or liquidating lower quality assets; (xvii) our inability to maintain the historical, long-term growth rate of our loan portfolio; (xviii) risks of expansion into new geographic or product markets; (xix) the possibility of increased compliance and operational costs as a result of increased regulatory oversight; (xx) our inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (xxi) the ineffectiveness of our hedging strategies, or the unexpected counterparty failure or failure of the underlying hedges; (xxii) changes in or interpretations of 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; (xxiii) changes in capital levels and loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xxiv) inadequate allowance for credit losses; (xxv) results of regulatory examinations; (xxvi) the vulnerability of our network and online banking portals, and the systems of parties with whom we contract or do business with, to unauthorized access, computer viruses, phishing schemes, spam attacks, ransomware attacks, human error, natural disasters, power loss and other security breaches; (xxvii) loss of key personnel; and (xxviii) adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, examinations or other legal and/or regulatory actions. 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 Middle and East Tennessee through 7 branches located in Brentwood, Erwin, Johnson City (2), Bearden (Knoxville), West Knoxville and Unicoi, with another branch in the Johnson City area scheduled to open by the end of the first quarter 2026. The Bank focuses on responsive relationship banking of small and medium-sized businesses, professionals, affluent individuals, and those who value the personal service and attention that only a community bank can offer. For further information, please visit us at www.mcb.com.
Additional Important Information and Where to Find It
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed business combination transaction involving Home Bancshares and Mountain Commerce Bancorp. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful. In connection with the proposed acquisition, Home Bancshares has filed with the Securities and Exchange Commission (the "SEC") a Registration Statement on Form S-4 (the "Registration Statement") to register the shares of Home Bancshares common stock to be issued to shareholders of Mountain Commerce Bancorp in connection with the transaction. The Registration Statement will include a Proxy Statement of Mountain Commerce Bancorp and a Prospectus of Home Bancshares, as well as other relevant materials regarding the proposed merger transaction involving Home Bancshares and Mountain Commerce Bancorp. INVESTORS AND SECURITY HOLDERS OF MOUNTAIN COMMERCE BANCORP ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER TRANSACTION. Investors and security holders may obtain free copies of these documents and other documents filed with the SEC on the SEC's website at http://www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by Home Bancshares at its website at http://www.homebancshares.com, Investor Relations, or by contacting Donna Townsell, by telephone at (501) 328-4625.
Participants in Solicitation
Home Bancshares and Mountain Commerce Bancorp and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Mountain Commerce Bancorp in connection with the merger transaction. Information about the directors and executive officers of Home Bancshares and their ownership of Home Bancshares common stock is set forth in the proxy statement for HOMB's 2025 Annual Meeting of Shareholders, as filed with the SEC on Schedule 14A on March 7, 2025. Information about the directors and executive officers of Mountain Commerce Bancorp and their ownership of Mountain Commerce Bancorp common stock will be set forth in the Proxy Statement/Prospectus to be included in the Registration Statement. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the merger transaction. Free copies of this document may be obtained as described in the preceding paragraph when it becomes available.
Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in thousands, except share data)
Three Months Ended Twelve Months Ended
December 31, September 30, December 31, December 31, December 31,
2025 2025 2024 2025 2024
Interest income
Loans $
21,158 21,349 21,055 $
84,005 82,573
Investment securities - taxable 990 1,024 1,076 4,103 4,611
Investment securities - tax exempt 29 29 29 117 117
Dividends and other 926 940 1,101 3,616 4,784
23,103 23,342 23,261 91,841 92,085
Interest expense
Savings 1,043 1,155 1,227 4,573 6,715
Interest bearing transaction accounts 4,113 4,138 3,762 15,614 15,763
Time certificates of deposit of $250,000 or
more 3,851 3,828 4,397 16,058 17,877
Other time deposits 3,012 3,043 3,638 13,047 14,570
Total deposits 12,019 12,164 13,024 49,292 54,925
Senior debt 279 181 269 871 1,425
Subordinated debt 49 191 167 569 660
FHLB advances 473 634 737 2,157 3,529
12,820 13,170 14,197 52,889 60,539
Net interest income 10,283 10,172 9,064 38,952 31,546
Provision for (recovery of) credit losses 575 (33) 480 744 (1,770)
Net interest income after provision for (recovery of) credit losses 9,708 10,205 8,584 38,208 33,316
Noninterest income
Service charges and fees 401 404 386 1,542 1,528
Bank owned life insurance 57 56 57 224 223
Realized gain (loss) on sale of investment
securities available for sale (13) (160) 69
Realized and unrealized gain (loss) on equity
securities 12 29 (58) 30 (28)
Gain on sale of loans 9 4 15 38
Gain on sale of fixed assets 5 30
Wealth management 219 239 199 901 810
Swap fees 75 385 51
Limited partnership income 352 352
Other 26 8 (2) 48 24
724 1,154 582 3,342 2,745
Noninterest expense
Compensation and employee benefits 3,546 3,384 3,010 14,007 11,912
Occupancy 879 767 742 3,162 2,753
Furniture and equipment 367 302 348 1,295 1,182
Data processing 731 671 634 2,738 2,643
FDIC insurance 334 363 332 1,402 1,450
Office 188 200 173 744 733
Advertising 137 89 120 433 443
Professional fees 521 385 450 1,990 2,041
Real estate owned expense 9 53 25
Merger-related expenses 255 255
Other noninterest expense 484 331 396 1,472 1,378
7,451 6,545 6,205 27,523 24,535
Income before income taxes 2,981 4,814 2,961 14,027 11,526
Income taxes 677 916 869 2,840 2,603
Net income $
2,304 3,898 2,092 $
11,187 8,923
Earnings per common share:
Basic $
0.37 0.62 0.33 $
1.78 1.42
Diluted $
0.37 0.62 0.33 $
1.78 1.42
Weighted average common shares outstanding:
Basic 6,264,967 6,251,027 6,284,585 6,269,993 6,268,048
Diluted 6,284,809 6,270,773 6,297,259 6,288,971 6,277,887
Mountain Commerce Bancorp, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
December 31, September 30, December 31,
2025 2025 2024
Assets
Cash and due from banks $
14,725 $
22,528 $
15,819
Interest-earning deposits in other banks 65,202 90,070 59,717
Cash and cash equivalents 79,927 112,598 75,536
Investments available for sale 109,113 113,617 112,960
Equity securities 2,795 2,763 2,695
Premises and equipment held for sale 3,762 3,762 3,762
Loans receivable 1,490,359 1,484,062 1,463,107
Allowance for credit losses (11,626) (11,369) (11,550)
Net loans receivable 1,478,733 1,472,693 1,451,557
Premises and equipment, net 59,251 59,552 61,215
Accrued interest receivable 5,383 5,567 5,587
Other real estate owned 3,103 2,788 2,572
Bank owned life insurance 10,414 10,358 10,190
Restricted stock 3,646 3,710 4,317
Deferred tax assets, net 6,896 6,946 7,762
Other assets 7,971 8,286 7,516
Total assets $
1,770,994 $
1,802,640 $
1,745,669
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $
231,568 $
257,199 $
248,298
Interest-bearing deposits 1,053,346 1,066,004 991,864
Wholesale deposits 260,064 259,438 286,552
Total deposits 1,544,978 1,582,641 1,526,714
FHLB borrowings 50,000 45,000 50,000
Senior debt, net 17,996 10,000 14,000
Subordinated debt, net 7,995 9,971
Accrued interest payable 2,395 2,921 4,435
Post-employment liabilities 3,368 3,357 3,285
Other liabilities 6,641 7,668 4,911
Total liabilities 1,625,378 1,659,582 1,613,316
Total shareholders' equity 145,616 143,058 132,353
Total liabilities and shareholders' equity $
1,770,994 $
1,802,640 $
1,745,669
Appendix A - Reconciliation of Non-GAAP Financial Measures
Three Months Ended Twelve Months Ended
December 31
December 31
(Dollars in thousands, except per share (Dollars in thousands, except per share
data) data)
2025 2024 2025 2024
Adjusted Net Income
Net income (GAAP) $
2,304 2,092 $
11,187 8,923
Realized (gain) loss on sale of investment securities available for sale 160 (69)
Realized and unrealized (gain) loss on equity securities (12) 58 (30) 28
Gain on sale of fixed assets (5) (30)
Gain on sale of real estate owned (75)
Corporate and strategic initiatives 243
Merger-related expenses 255 255
Provision for (recovery of) credit losses 575 480 744 (1,770)
Net (charge-offs) recoveries of credit losses 9 (11) (158) 247
Software conversion expense 271
Tax effect of adjustments (216) (138) (296) 346
Adjusted net income (Non-GAAP) $
2,915 2,481 $
12,025 7,946
Adjusted Diluted Earnings Per Share
Diluted earnings per share (GAAP) $
0.37 0.33 $
1.78 1.42
Realized (gain) loss on sale of investment securities available for sale 0.03 (0.01)
Realized and unrealized (gain) loss on equity securities (0.00) 0.01 (0.00) 0.00
Gain on sale of fixed assets (0.00) (0.00)
Gain on sale of real estate owned (0.01)
Corporate and strategic initiatives 0.04
Merger-related expenses 0.04 0.04
Provision for (recovery of) credit losses 0.09 0.08 0.12 (0.28)
Net (charge-offs) recoveries of credit losses 0.00 (0.00) (0.03) 0.04
Software conversion expense 0.04
Tax effect of adjustments (0.03) (0.02) (0.05) 0.06
Adjusted diluted earnings per share (Non-GAAP) $
0.46 0.39 $
1.91 1.27
Adjusted Return on Average Assets
Return on average assets (GAAP) 0.52 % 0.47 % 0.63 % 0.50 %
Realized (gain) loss on sale of investment securities available for sale 0.00 % 0.00 % 0.01 % 0.00 %
Realized and unrealized (gain) loss on equity securities 0.00 % 0.01 % 0.00 % 0.00 %
Gain on sale of fixed assets 0.00 % 0.00 % 0.00 % 0.00 %
Gain on sale of real estate owned 0.00 % 0.00 % 0.00 % 0.00 %
Corporate and strategic initiatives 0.00 % 0.00 % 0.01 % 0.00 %
Merger-related expenses 0.06 % 0.00 % 0.01 % 0.00 %
Provision for (recovery of) credit losses 0.13 % 0.11 % 0.04 % -0.10 %
Net (charge-offs) recoveries of credit losses 0.00 % 0.00 % -0.01 % 0.01 %
Software conversion expense 0.00 % 0.00 % 0.00 % 0.02 %
Tax effect of adjustments -0.05 % -0.03 % -0.02 % 0.02 %
Adjusted return on average assets (Non-GAAP) 0.65 % 0.56 % 0.67 % 0.45 %
Adjusted Return on Average Equity
Return on average equity (GAAP) 6.34 % 6.32 % 8.00 % 6.99 %
Realized (gain) loss on sale of investment securities available for sale 0.00 % 0.00 % 0.11 % -0.05 %
Realized and unrealized (gain) loss on equity securities -0.03 % 0.18 % -0.02 % 0.02 %
Gain on sale of fixed assets 0.00 % 0.00 % 0.00 % -0.02 %
Gain on sale of real estate owned 0.00 % 0.00 % -0.05 % 0.00 %
Corporate and strategic initiatives 0.00 % 0.00 % 0.17 % 0.00 %
Merger-related expenses 0.70 % 0.00 % 0.18 % 0.00 %
Provision for (recovery of) credit losses 1.58 % 1.45 % 0.53 % -1.39 %
Net (charge-offs) recoveries of credit losses 0.02 % -0.03 % -0.11 % 0.19 %
Software conversion expense 0.00 % 0.00 % 0.00 % 0.21 %
Tax effect of adjustments -0.60 % -0.42 % -0.21 % 0.27 %
Adjusted return on average equity (Non-GAAP) 8.02 % 7.49 % 8.60 % 6.22 %
Appendix A - Reconciliation of Non-GAAP Financial Measures, Continued
Three Months Ended Twelve Months Ended
December 31
December 31
(Dollars in thousands, except per share (Dollars in thousands, except per share
data) data)
2025 2024 2025 2024
Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP)
$ 1.67 % 1.40 %
$ 1.54 % 1.38 %
Software conversion expense 0.00 % 0.00 % 0.00 % -0.02 %
Corporate and strategic initiatives 0.00 % 0.00 % -0.01 % 0.00 %
Merger-related expenses -0.06 % 0.00 % -0.01 % 0.00 %
Noninterest expense to average assets (Non-GAAP)
$ 1.61 % 1.40 %
$ 1.52 % 1.37 %
Pre-tax, Pre-Provision Earnings
Net income (GAAP) $
2,304 2,092 $
11,187 8,923
Income taxes 677 869 2,840 2,603
Provision for (recovery of) credit losses 575 480 744 (1,770)
Pre-tax, pre-provision earnings (non-GAAP) $
3,556 3,441 $
14,771 9,756
Pre-tax, Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP) 0.52 % 0.47 %
$ 0.63 % 0.50 %
Income taxes 0.15 % 0.20 % 0.16 % 0.15 %
Provision for (recovery of) credit losses 0.13 % 0.11 % 0.04 % -0.10 %
Pre-tax, pre-provision return on average assets (non-GAAP) 0.80 % 0.78 %
$ 0.83 % 0.55 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP) $
22.80 20.70
Impact of AOCI per share 1.75 2.37
Book and tangible book value per share, excluding AOCI (non-GAAP) $
24.56 23.07
Appendix B - Tax Equivalent Net Interest Margin Analysis
For the Three Months Ended December 31,
2025 2024
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 $
1,446,853 21,158 5.80 % $
1,425,857 21,055 5.87 %
Loans -imputed tax credits (2) 26,695 455 6.75 % 28,583 485 6.75 %
Investments - taxable 110,555 990 3.55 % 114,214 1,076 3.75 %
Investments -tax exempt (1) 4,404 37 3.31 % 4,280 37 3.41 %
Interest earning deposits 83,058 817 3.90 % 82,796 970 4.66 %
Other investments, at cost 5,774 99 6.80 % 6,114 131 8.52 %
Total interest-earning assets 1,677,339 23,555 5.57 % 1,661,844 23,754 5.69 %
Noninterest-earning assets 107,014 107,862
Total assets $
1,784,353 $
1,769,706
Interest-bearing liabilities:
Interest-bearing transaction
accounts $
133,088 1,109 3.31 % $
127,447 1,120 3.50 %
Savings accounts 171,901 1,044 2.41 % 197,239 1,227 2.47 %
Money market accounts 382,073 3,003 3.12 % 305,828 2,642 3.44 %
Retail time deposits 374,943 3,295 3.49 % 373,191 4,080 4.35 %
Wholesale time deposits 256,293 3,568 5.52 % 278,213 3,955 5.66 %
Total interest bearing deposits 1,318,298 12,019 3.62 % 1,281,918 13,024 4.04 %
Senior debt 17,996 279 6.15 % 14,935 269 7.17 %
Subordinated debt 1,217 49 15.97 % 9,966 167 6.67 %
Federal Home Loan Bank advances 41,348 473 4.54 % 60,326 737 4.86 %
Total interest-bearing liabilities 1,378,859 12,820 3.69 % 1,367,145 14,197 4.13 %
Noninterest-bearing deposits 250,372 256,142
Other noninterest-bearing
liabilities 9,825 13,926
Total liabilities 1,639,056 1,637,213
Total shareholders' equity 145,297 132,493
Total liabilities and shareholders'
equity $
1,784,353 $
1,769,706
Tax-equivalent net interest income 10,735 9,557
Net interest-earning assets (3) $
298,480 $
294,699
Average interest-earning assets to
interest-
bearing liabilities 122 % 122 %
Tax-equivalent net interest rate
spread (4) 1.88 % 1.56 %
Tax equivalent net interest margin
(5) 2.54 % 2.29 %
(1) Tax exempt investments are calculated assuming a 21%
federal tax rate
(2) Reflects the tax equivalent yield of a 5% state tax credit assuming a 26% federal
and state tax rate
(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
Appendix B - Tax Equivalent Net Interest Margin Analysis
For the Twelve Months Ended December 31,
2025 2024
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 $
1,439,960 84,005 5.83 % $
1,423,931 82,573 5.80 %
Loans -imputed tax credits (2) 27,349 1,845 6.75 % 28,974 1,955 6.75 %
Investments - taxable 112,372 4,103 3.65 % 117,879 4,611 3.91 %
Investments -tax exempt (1) 4,228 148 3.50 % 4,237 148 3.50 %
Interest earning deposits 82,491 3,155 3.82 % 88,390 4,155 4.70 %
Other investments, at cost 5,771 420 7.28 % 6,117 630 10.30 %
Total interest-earning assets 1,672,171 93,676 5.60 % 1,669,528 94,072 5.63 %
Noninterest-earning assets 109,586 106,174
Total assets $
1,781,757 $
1,775,702
Interest-bearing liabilities:
Interest-bearing transaction
accounts $
131,327 4,407 3.36 % $
129,790 4,935 3.80 %
Savings accounts 182,993 4,573 2.50 % 228,726 6,715 2.94 %
Money market accounts 355,169 11,208 3.16 % 278,753 10,828 3.88 %
Retail time deposits 370,562 14,062 3.79 % 382,599 16,948 4.43 %
Wholesale time deposits 273,028 15,042 5.51 % 268,025 15,499 5.78 %
Total interest bearing deposits 1,313,079 49,292 3.75 % 1,287,893 54,925 4.26 %
Senior debt 12,666 871 6.88 % 17,964 1,425 7.93 %
Subordinated debt 6,993 569 8.14 % 9,947 660 6.64 %
Federal Home Loan Bank advances 47,792 2,157 4.51 % 68,169 3,529 5.18 %
Total interest-bearing liabilities 1,380,530 52,889 3.83 % 1,383,973 60,539 4.37 %
Noninterest-bearing deposits 248,743 252,151
Other noninterest-bearing
liabilities 12,675 11,904
Total liabilities 1,641,948 1,648,028
Total shareholders' equity 139,809 127,674
Total liabilities and shareholders'
equity $
1,781,757 $
1,775,702
Tax-equivalent net interest income 40,787 33,533
Net interest-earning assets (3) $
291,641 $
285,555
Average interest-earning assets to
interest-
bearing liabilities 121 % 121 %
Tax-equivalent net interest rate
spread (4) 1.77 % 1.26 %
Tax equivalent net interest margin
(5) 2.44 % 2.01 %
(1) Tax exempt investments are calculated assuming a 21%
federal tax rate
(2) Reflects the tax equivalent yield of a 5% state tax credit assuming a 26% federal
and state tax rate
(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
Appendix C - Reconciliation of Prior Period Non-GAAP Financial Measures
Three Months Ended
(Dollars in thousands, except per share
data)
2025
September 30 June 30 March 31
Adjusted Net Income
Net income (GAAP) $
3,898 2,806 2,179
Realized loss on sale of investment securities available for sale 13 8 139
Realized and unrealized (gain) loss on equity securities (29) 6 4
Gain on sale of fixed assets (5)
Gain on sale of real estate owned (75)
Corporate and strategic initiatives 243
Provision for (recovery of) credit losses (33) 138 64
Net (charge-offs) recoveries of credit losses (5) (7) (155)
Tax effect of adjustments 14 (82) (12)
Adjusted net income (Non-GAAP) $
3,858 3,037 2,214
Adjusted Diluted Earnings Per Share
Diluted earnings per share (GAAP) $
0.62 0.45 0.35
Realized loss on sale of investment securities available for sale 0.00 0.00 0.02
Realized and unrealized (gain) loss on equity securities (0.00) 0.00 0.00
Gain on sale of fixed assets (0.00)
Gain on sale of real estate owned (0.01)
Corporate and strategic initiatives 0.04
Provision for (recovery of) credit losses (0.01) 0.02 0.01
Net (charge-offs) recoveries of credit losses (0.00) (0.00) (0.02)
Tax effect of adjustments 0.00 (0.01) (0.00)
Adjusted diluted earnings per share (Non-GAAP) $
0.62 0.48 0.35
Adjusted Return on Average Assets
Return on average assets (GAAP) 0.87 % 0.63 % 0.50 %
Realized loss on sale of investment securities available for sale 0.00 % 0.00 % 0.03 %
Realized and unrealized (gain) loss on equity securities -0.01 % 0.00 % 0.00 %
Gain on sale of fixed assets 0.00 % 0.00 % 0.00 %
Gain on sale of real estate owned 0.00 % -0.02 % 0.00 %
Corporate and strategic initiatives 0.00 % 0.05 % 0.00 %
Provision for (recovery of) credit losses -0.01 % 0.03 % 0.01 %
Net (charge-offs) recoveries of credit losses 0.00 % 0.00 % -0.04 %
Tax effect of adjustments 0.00 % -0.02 % 0.00 %
Adjusted return on average assets (Non-GAAP) 0.86 % 0.68 % 0.50 %
Adjusted Return on Average Equity
Return on average equity (GAAP) 11.03 % 8.17 % 6.43 %
Realized loss on sale of investment securities available for sale 0.04 % 0.02 % 0.41 %
Realized and unrealized (gain) loss on equity securities -0.08 % 0.02 % 0.01 %
Gain on sale of fixed assets 0.00 % 0.00 % -0.01 %
Gain on sale of real estate owned 0.00 % -0.22 % 0.00 %
Corporate and strategic initiatives 0.00 % 0.71 % 0.00 %
Provision for (recovery of) credit losses -0.09 % 0.40 % 0.19 %
Net (charge-offs) recoveries of credit losses -0.01 % -0.02 % -0.46 %
Tax effect of adjustments 0.04 % -0.24 % -0.04 %
Adjusted return on average equity (Non-GAAP) 10.92 % 8.84 % 6.53 %
Appendix C - Reconciliation of Prior Period Non-GAAP Financial Measures, Continued
Three Months Ended
(Dollars in thousands, except per share
data)
2025
September 30 June 30 March 31
Adjusted Noninterest Expense to Average Assets
Noninterest expense to average assets (GAAP) 1.46 % 1.55 % 1.50 %
Corporate and strategic initiatives 0.00 % -0.05 % 0.00 %
Adjusted noninterest expense to average assets (Non-GAAP) 1.46 % 1.49 % 1.50 %
Pre-tax Pre-Provision Earnings
Net income (GAAP) $
3,898 2,806 2,179
Income taxes 916 668 580
Provision for (recovery of) credit losses (33) 138 64
Pre-tax Pre-provision earnings (non-GAAP) $
4,781 3,612 2,823
Pre-tax Pre-Provision Return on Average Assets (ROAA)
Return on average assets (GAAP) 0.87 % 0.63 % 0.50 %
Income taxes 0.20 % 0.15 % 0.13 %
Provision for (recovery of) credit losses -0.01 % 0.03 % 0.01 %
Pre-tax Pre-provision return on average assets (non-GAAP) 1.07 % 0.81 % 0.64 %
Book and Tangible Book Value Per Share, excluding AOCI
Book and tangible book value per share (GAAP) $
22.50 21.72 21.26
Impact of AOCI per share 1.85 2.04 2.09
Book and tangible book value per share, excluding AOCI (non-GAAP) $
24.35 23.76 23.35
SOURCE Mountain Commerce Bancorp, Inc.