Mountain Commerce Bancorp, the holding company for Mountain Commerce Bank, yesterday announced earnings and related data as of and for the three months and year ended December 31, 2020.
The Company also announced yesterday that its Board of Directors declared the Company's first ever quarterly cash dividend of $0.125 per common share. The dividend is payable on March 1, 2021 to shareholders of record as of the close of business on February 5, 2021.
Net interest income increased $2.4 million, or 30.7%, from $7.7 million for the three months ended December 31, 2019 to $10.0 million for the same period in 2020.
Net interest income increased approximately $6.8 million, or 23.6%, from $28.7 million for the year ended December 31, 2019 to $35.4 million for the same period in 2020.
The Company recognized approximately $1.0 million and $1.7 million of PPP loan origination fees, net of the amortization of deferred PPP loan costs, through net interest income during the three and twelve months ended December 31, 2020, respectively.
A provision for loan losses of $7.5 million was recorded for the year ended December 31, 2020 as a result of the Company increasing the qualitative factors in its allowance for loan loss model and increasing reserve factors on certain loans to borrowers more likely to be impacted by the COVID-19 pandemic. The Company did not record any additional provision for loan losses during the fourth quarter of 2020. A provision for (recovery of) loan losses of $0.2 million and ($0.5) million was recorded for the three and twelve months ended December 31, 2019, respectively.
Noninterest income decreased $0.7 million, or 89.0%, from $0.8 million in the fourth quarter of 2019 to $0.1 million in the same quarter of 2020, due primarily to a $0.2 million decline in swap brokerage fees and a $0.5 million one-time write-down recorded on the Company's previous headquarters building which it expects to sell at a loss.
Noninterest income decreased $0.9 million, or 31.3%, from $2.7 million during the year ended December 31, 2019 to $1.9 million during the same period of 2020. The decrease was primarily due to a $0.5 million decline in swap brokerage fees and a $0.5 million write-down on the Company's previous headquarters building discussed above, partially offset by a $0.2 million increase in the gain on sale of investments.
Noninterest expense increased $0.6 million, or 15.8%, from $3.8 million in the fourth quarter of 2019 to $4.4 million in the same period of 2020. The increase was primarily the result of a $0.5 million increase in compensation and benefits and a $0.2 million loss on the sale of the Company's final REO property, partially offset by a $0.1 million reduction in occupancy expense.
Noninterest expense increased $1.4 million, or 9.0%, from $15.4 million for the year ended December 31, 2019 to $16.7 million for the same period of 2020. This increase was primarily the result of a $0.7 million increase in compensation and benefits, of which $0.4 million related to one-time PPP bonuses, a $0.3 million increase in the loss on sale of REO as the Company liquidated its remaining REO properties, and a $0.4 million increase in the reserve for unfunded loan commitments.
The effective tax rate of the Company was 21.4% and 25.5% for the three months ended December 31, 2020 and 2019, respectively. The effective tax rate of the Company was 22.3% and 25.5% for the years ended December 31, 2020 and 2019, respectively. The Company's marginal tax rate of 26.14% is favorably impacted by certain sources of non-taxable income including BOLI, tax-free loans and investments in municipal securities. The Company's effective tax rate declined during the three and twelve months ended December 31, 2020 due primarily to investments in certain loans eligible for a 5% state tax credit.
Total assets increased $203.3 million, or 22.4%, from $906.7 million at December 31, 2019 to $1.110 billion at December 31, 2020. ■