Mountain Commerce Bancorp, Inc. Announces Second Quarter 2025 Results, Quarterly Cash Dividend, And Senior Revolving Line of Credit

Core Viewpoint - Mountain Commerce Bancorp, Inc. reported financial results for the second quarter and first half of 2025, highlighting increased earnings, improved net interest margins, and a commitment to managing risk and growth effectively [1][5][7]. Financial Performance - Net income for the three months ended June 30, 2025, was $2.806 million, up from $2.324 million in the same period of 2024, representing a 20.6% increase [9]. - Diluted earnings per share increased to $0.45 from $0.37 year-over-year [9]. - Adjusted return on average assets (ROAA) rose to 0.68% from 0.45%, and return on average equity (ROAE) increased to 8.84% from 6.34% [9][13]. Net Interest Income - Net interest income for the second quarter of 2025 increased by $1.8 million, or 23.0%, to $9.6 million compared to $7.8 million in the same quarter of 2024 [16]. - The net interest margin improved to 2.40% from 2.00% year-over-year, driven by rising loan portfolio yields and improved funding costs [5][9]. Asset Quality - Non-performing loans increased to $7.638 million, representing 0.52% of total loans, up from 0.09% at the end of 2024 [14][38]. - The allowance for credit losses to total loans remained stable at 0.79%, with coverage of non-performing loans exceeding 1.5 to 1 [40]. Dividends and Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.07 per common share, marking the nineteenth consecutive quarterly dividend [2]. - Total equity increased by $5.9 million, or 4.5%, to $138.3 million as of June 30, 2025 [36]. Debt and Credit Facilities - A new senior revolving line of credit was established with a maximum amount of $25 million, replacing a previous line with a balance of $10 million [3][4]. - The Company intends to use the line of credit to support Bank operations and general corporate purposes [4]. Noninterest Income and Expenses - Noninterest income rose to $0.938 million in the second quarter of 2025, up from $0.672 million in the same quarter of 2024, primarily due to increased swap fees [21]. - Noninterest expenses increased by $0.898 million, or 14.9%, to $6.915 million, driven by higher compensation and employee benefits [24]. Balance Sheet Highlights - Total assets increased by $60 million, or 3.4%, to $1.806 billion as of June 30, 2025 [26]. - Total deposits rose by $58.1 million, or 3.8%, to $1.585 billion [34]. Market Position and Strategy - The Company is managing its loan growth intentionally to improve its risk profile while maintaining a regulatory commercial real estate concentration of 335% of total risk-based capital [31]. - The Company remains committed to paying down senior debt, which declined by $2 million in the second quarter of 2025 [6].