Mountain Commerce Bancorp, Inc. Announces Fourth Quarter 2025 Results and Quarterly Cash Dividend

Core Insights - Mountain Commerce Bancorp, Inc. reported improved earnings with adjusted return on average assets and equity rising to 0.67% and 8.60% respectively for the twelve months ended December 31, 2025, compared to 0.45% and 6.22% for the same period in 2024 [3][4] - The company declared a quarterly cash dividend of $0.07 per common share, marking its twenty-first consecutive quarterly dividend [2] Financial Performance - Net income for the twelve months ended December 31, 2025, was $11.2 million, an increase from $8.9 million in 2024, while diluted earnings per share rose to $1.78 from $1.42 [11] - The net interest margin improved from 2.01% in 2024 to 2.44% in 2025, contributing to a net interest income increase of $7.4 million, or 23.5%, year-over-year [16][11] - Noninterest income increased to $3.3 million for the twelve months ended December 31, 2025, from $2.7 million in 2024, driven by improved equity market conditions and increased wealth management fees [23] Asset Quality - Non-performing assets increased to $9.2 million as of December 31, 2025, from $4.0 million in 2024, but are considered well collateralized [4][20] - The allowance for credit losses to non-performing loans ratio was 191.91% as of December 31, 2025, indicating strong coverage [20] Merger Activity - The company announced a definitive agreement for an all-stock merger with Home Bancshares, where shareholders will receive 0.85 shares of Home Bancshares' common stock for each share of Mountain Commerce Bancorp [5][7] - The merger is expected to close in early 2026, pending regulatory approvals and shareholder consent [7][6] Balance Sheet Highlights - Total assets increased by $25.3 million, or 1.45%, to $1.771 billion as of December 31, 2025 [30] - Loans receivable rose by $27.3 million, or 1.86%, to $1.490 billion, reflecting the company's cautious approach to loan growth [35] - Total deposits increased by $18.3 million, or 1.2%, to $1.545 billion as of December 31, 2025 [35] Noninterest Expense - Noninterest expense for the twelve months ended December 31, 2025, increased by $3.0 million, or 12.2%, primarily due to higher compensation and employee benefits, as well as merger-related expenses [28][27] - The adjusted noninterest expense to average assets ratio was 1.52% for the twelve months ended December 31, 2025, remaining competitive compared to peer banks [4]