Mountain Commerce Bancorp (MCBI) Q2 2024 earnings summary

Executive summary

• Net interest margin improved to 2.00% in Q2 2024 from 1.66% in Q1 2024, with June 2024 at 2.08%, signaling a positive inflection point.

• Net income for Q2 2024 was $2.3 million ($0.37 per share), up from $1.5 million in Q1 2024 but down from $2.5 million in Q2 2023.

• Board declared a $0.05 per share quarterly dividend, the fifteenth consecutive payout.

• Asset quality remains strong with non-performing assets at 0.08% of total assets and no real estate owned.

• Johnson City financial center construction completed and opened July 1, 2024, expected to boost deposit market share.

Financial highlights

• Q2 2024 net income: $2.3M (GAAP), $2.0M (Adjusted); EPS: $0.37 (GAAP), $0.31 (Adjusted).

• Six months ended June 30, 2024 net income: $3.8M (GAAP), $3.1M (Adjusted); EPS: $0.61 (GAAP), $0.49 (Adjusted).

• Net interest income for Q2 2024: $7.8M, down 0.6% year-over-year; for six months: $14.2M, down 17.5% year-over-year.

• Noninterest income rose to $0.7M in Q2 2024 from $0.6M in Q2 2023, and to $1.5M for six months from $0.8M.

• Noninterest expense declined 2.0% year-over-year in Q2 2024 and 2.9% for the six months, mainly due to lower compensation costs.

Outlook and guidance

• Management anticipates continued improvement in net interest margin through 2024 and into 2025, driven by deposit pricing initiatives and stabilizing funding costs.

• Dividend remains unchanged as capital is managed for future growth.