Mountain Commerce Bancorp (MCBI) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $3.0 million, up from $2.5 million in Q3 2023; diluted EPS was $0.48, up from $0.40 year-over-year.

• Board declared a $0.05 per share quarterly dividend, marking the sixteenth consecutive quarterly dividend.

• Net interest margin improved to 2.08% in Q3 2024 from 2.00% in Q2 2024, with further improvement expected.

• Asset quality remains strong with non-performing assets at 0.08% of total assets and allowance to non-performing loans coverage over 8x.

• Tangible common equity to tangible assets ratio rose to 7.50% at September 30, 2024, from 7.06% at June 30, 2024.

Financial highlights

• Net income for the nine months ended September 30, 2024 was $6.8 million, down from $7.3 million in the same period of 2023.

• Net interest income for Q3 2024 was $8.3 million, up 3.1% year-over-year; for the nine months, it was $22.5 million, down 11.0% year-over-year.

• Noninterest income increased to $0.7 million in Q3 2024 from $0.4 million in Q3 2023, and to $2.2 million for the nine months from $1.2 million year-over-year.

• Noninterest expense rose 13.7% year-over-year in Q3 2024 to $6.5 million, and 2.4% for the nine months to $18.3 million.

• Total assets increased 1.9% since year-end to $1.77 billion; total deposits rose 5.4% to $1.55 billion.

Outlook and guidance

• Management anticipates continued improvement in net interest margin for the remainder of 2024 and into 2025, driven by improved loan yields and funding costs.

• The company believes it is well positioned for future interest rate changes and expects profitable growth from new branches.