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

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 (1)

GAAP

Adjusted (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 %

Net interest margin (tax equivalent)

2.54 %

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 (1)

GAAP

Adjusted (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 %

2.01 %

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

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 (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 the

3 Months Ended

12 Months Ended

December 31,

September 30,

December 31,

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

0.230

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:

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:

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

(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)

2 Yrs

9/1/2026

3.79 %

3.71 %

Floating rate deposit

35,000

(52)

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

2024

Provision for (recovery of) credit losses

575

(33)

138

480

Net charge-offs (recoveries)

(9)

155

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

Bank owned life insurance

Realized and unrealized gain (loss) on equity securities

(58)

Gain (loss) on sale of loans

Wealth management

219

199

Other

(2)

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:

Twelve Months Ended December 31

(In thousands)

2025

2024

Change

Service charges and fees

1,542

1,528

Bank owned life insurance

224

223

Realized gain (loss) on sale of investment securities available for sale

(160)

(229)

Realized and unrealized gain (loss) on equity securities

(28)

Gain on sale of loans

(23)

Gain (loss) on sale of fixed assets

(25)

Wealth management

901

810

Swap fees

385

334

Limited partnership income

352

Other

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:

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

Data processing

731

634

FDIC insurance

334

332

Office

188

173

Advertising

137

120

Professional fees

521

450

Real Estate Owned

Merger-related expenses

255

Other noninterest expense

484

396

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:

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

FDIC insurance

1,402

1,450

(48)

Office

744

733

Advertising

433

443

(10)

Professional fees

1,990

2,041

(51)

Real Estate Owned

Merger-related expenses

255

Other noninterest expense

1,472

1,378

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:

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:

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

6,647

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.

December 31,

September 30,

June 30,

March 31,

December 31,

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

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,

(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

December 31,

(in thousands)

2025

2024

Residential

2,572

Commercial Real Estate

315

Land

216

3,103

2,572

The following summarizes changes in deposit balances over the last five quarters:

December 31,

September 30,

June 30,

March 31,

December 31,

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,

2025

2024

Tri-Cities

350,140

329,912

Knoxville

668,958

688,049

Nashville

108,620

100,928

1,127,718

1,118,889

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

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

Multifamily residential

506

1,058

Non-owner occupied CRE

2,263

2,218

1-4 Family residential

3,223

4,092

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,

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

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

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

224

223

Realized gain (loss) on sale of investment securities available for sale

(13)

(160)

Realized and unrealized gain (loss) on equity securities

(58)

(28)

Gain on sale of loans

Gain on sale of fixed assets

Wealth management

219

239

199

901

810

Swap fees

385

Limited partnership income

352

Other

(2)

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

120

433

443

Professional fees

521

385

450

1,990

2,041

Real estate owned expense

Merger-related expenses

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

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

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

(Dollars in thousands, except per share 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)

(30)

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

Provision for (recovery of) credit losses

575

480

744

(1,770)

Net (charge-offs) recoveries of credit losses

(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)

Gain on sale of real estate owned

(0.01)

Corporate and strategic initiatives

0.04

Merger-related expenses

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 %

0.01 %

0.00 %

Realized and unrealized (gain) loss on equity securities

0.00 %

0.01 %

0.00 %

Gain on sale of fixed assets

0.00 %

Gain on sale of real estate owned

0.00 %

Corporate and strategic initiatives

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 %

-0.01 %

0.01 %

Software conversion expense

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 %

0.11 %

-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 %

-0.02 %

Gain on sale of real estate owned

0.00 %

-0.05 %

0.00 %

Corporate and strategic initiatives

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 %

0.21 %

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

(Dollars in thousands, except per share 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 %

-0.02 %

Corporate and strategic initiatives

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

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

3.31 %

4,280

3.41 %

Interest earning deposits

83,058

817

3.90 %

82,796

970

4.66 %

Other investments, at cost

5,774

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

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 %

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

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 %

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

139

Realized and unrealized (gain) loss on equity securities

(29)

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

Net (charge-offs) recoveries of credit losses

(5)

(7)

(155)

Tax effect of adjustments

(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

0.02

Realized and unrealized (gain) loss on equity securities

(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)

(0.02)

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 %

0.03 %

Realized and unrealized (gain) loss on equity securities

-0.01 %

0.00 %

Gain on sale of fixed assets

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 %

-0.04 %

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 %

-0.01 %

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

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.