Press Release

MVB Financial Corp. Reports Second Quarter 2017 Earnings

Company Release - 7/31/2017 10:47 PM ET

FAIRMONT, W.Va., July 31, 2017 /PRNewswire/ -- MVB Financial Corp. (OTC Markets Group OTCQB: MVBF) and its subsidiaries - MVB Bank and MVB Mortgage (collectively "MVB") - reported total net income of $2.3 million or $0.21 per share basic and $0.20 per share diluted for the three months ended June 30, 2017, compared to $2.5 million or $0.27 per share basic and $0.25 per share diluted for the three months ended June 30, 2016, excluding discontinued operations.

 (PRNewsfoto/MVB Financial Corp.)

Approximately 1.9 million shares of the Company's common stock was issued from a capital raise completed in December 2016 and 434,783 shares of the Company's common stock was issued from a rights offering completed in April 2017. The $0.06 decrease in basic earnings per share for the three months ended June 30, 2017, compared to the same time period in 2016, resulted from the additional issued shares as year-over-year net income available to common shareholders, excluding discontinued operations, remained flat.

"This sale created outstanding shares and is reflected in a short-term, negative impact on earnings per share; however, this strategic sale will help drive value for the long-term and will add liquidity to MVB stock," said Larry F. Mazza, CEO & President of MVB Financial Corp.

"MVB Mortgage is feeling the effects of two critical happenings at the end of 2016. After the election, mortgage rates spiked; but, those rates have since fallen to lower levels to encourage mortgage volume. The mortgage volume declined in the fourth quarter of 2016, but has since picked up very strong momentum and looks promising for the rest of 2017."

SECOND QUARTER 2017 HIGHLIGHTS

  • Net interest income of $10.9 million increased $588 thousand, or 5.7% from March 31, 2017, and $152 thousand, or 1.4% from the second quarter ended June 30, 2016.
  • Total assets continue to steadily grow and reached $1.5 billion as of June 30, 2017.
  • Loans of $1.1 billion as of June 30, 2017 increased $25.6 million, or 2.4% from March 31, 2017, and $14.9 million, or 1.4% from June 30, 2016, despite a decrease in commercial real estate concentration levels, from 382% at June 30, 2016, to 307% at March 31, 2017, and 306% at June 30, 2017.
  • Strong credit quality continued with non-performing loans to total loans of 0.46% and annualized net loan charge-offs to total loans of 0.05% at June 30, 2017.

As previously announced, MVB Bank opened its third Morgantown, West Virginia, branch banking location and its first branch banking location in Leesburg, Virginia. The new Morgantown branch, located at 51 Donahue Drive, Suite 115, and the new Leesburg branch, located at 106 Harrison Street SE, Suite 100, both feature automated interactive teller systems ("AIT"). Five MVB Bank locations currently utilize the state-of-the-art AIT technology, which increases client accessibility and allows for extended hours of operation and enhanced security while keeping the human touch.  The Bank is moving into its third year of utilizing this new banking technology.

"Not burdened with outdated legacy branches in declining markets and counter to bank branching trends, MVB Bank is positioned to strategically pinpoint well-performing markets for new branch locations. Our two newest branches, in Morgantown, West Virginia and Leesburg, Virginia, have expanded our footprint in two of the best growth markets in the Tri-State region," Mazza said.

In 2016, management focused on diversifying its lending to reduce commercial real estate concentration levels. This coupled with higher than usual loan payoffs, reflected a smaller total loan growth than anticipated for the quarter. Loans as of June 30, 2017 totaled $1.102 billion, an increase of $25.6 million, or 2.4% when compared to loan balances at March 31, 2017. In comparison to the June 30, 2016 loan balance of $1.088 billion, loans increased $14.9 million, or 1.4%. Commercial loans increased $29.0 million from March 31, 2017, while still maintaining an appropriate level of commercial real estate concentration.

Deposits as of June 30, 2017 totaled $1.100 billion, a decrease of $36.9 million, or 3.2% when compared to deposit balances at March 31, 2017. In comparison to the June 30, 2016 deposit balance of $1.067 billion, deposits increased $32.4 million, or 3.0%. Noninterest bearing deposit balances have steadily improved and reached $121.4 million as of June 30, 2017, an increase of $2.1 million since March 31, 2017 and $25.0 million since June 30, 2016. The linked quarter decrease in deposit balances at June 30, 2017 is primarily attributable to a $26.6 million seasonal decrease in public fund deposits and the maturity of $19.4 million in non-brokered internet certificates of deposit that management deliberately let mature due to the growth in other deposits.

Net interest income for the second quarter of 2017 was $10.9 million, an increase of $588 thousand, or 5.7% from March 31, 2017 and $152 thousand, or 1.4% from the second quarter ended June 30, 2016. Net interest margin for the second quarter of 2017 was 3.31%, an increase of 12 basis points from March 31, 2017 and 17 basis points from the second quarter ended June 30, 2016.

Provision for loan losses for the second quarter of 2017 was $523 thousand, an increase of $5 thousand, or 1.0% from  March 31, 2017 and a decrease of $752 thousand, or 59% from the second quarter ended June 30, 2016. The decrease in provision for loan loss is most attributable to a significantly lower level of charge-offs, with the overall decrease also being impacted by increased loan volume and variations in historical loss rates.

Through continued effective collection and successful workout efforts, the Company's nonperforming loans to total loans was 0.46% as of June 30, 2017, a decrease of 13 basis points from March 31, 2017 and 29 basis points from June 30, 2016. In addition, the Company's annualized net loan charge-offs to total loans was 0.05% as of June 30, 2017, a decrease of 4 basis points from March 31, 2017 and 18 basis points from June 30, 2016.

Noninterest income for the second quarter of 2017 was $11.6 million, an increase of $2.7 million, or 31.1% from March 31, 2017 and a decrease of $434 thousand, or 3.6% from the second quarter ended June 30, 2016. The linked quarter increase was primarily the result of a $3.0 million increase in gain on derivatives. The year over year decrease was primarily the result of a $445 thousand decrease in mortgage fee income. MVB Mortgage noninterest income for the second quarter of 2017 was $10.1 million, an increase of $2.3 million, or 29.1% from March 31, 2017 and a decrease of $833 thousand, or 7.6% from the second quarter ended June 30, 2016.

Noninterest expense for the second quarter of 2017 was $18.5 million, an increase of $2.2 million, or 13.4% from March 31, 2017 and $747 thousand, or 4.2% from the second quarter ended June 30, 2016. The linked quarter increase was primarily driven by an increase in salaries and employee benefits related to closed mortgage volume, which increased 31.2%. The year over year increase was primarily the result of higher data processing, travel and meals and entertainment expenses related to the Bank's core processing system conversion that was completed during the second quarter of 2017.

As previously announced, on May 17, 2017, MVB Financial Corp. declared a quarterly cash dividend of $0.025 per share to shareholders of record at the close of business on June 1, 2017, payable June 15, 2017. This was the second quarterly dividend for 2017 and was equal to the March 2017 payout of $0.025 per share. The cash dividend of $0.05 through the six months ended June 30, 2017, increased $0.01, or 25% compared to the six months ended June 30, 2016.

About MVB Financial Corp.

MVB is a financial holding company headquartered in Fairmont, W.Va. Through its subsidiary, MVB Bank, Inc., and the bank's subsidiary, MVB Mortgage, the company provides financial services to individuals and corporate clients in the Mid-Atlantic region.

The OTCQB is a market tier operated by the OTC Market Group Inc., for over-the-counter traded companies that are current in their reporting with a U.S. regulator.

For more information, please visit ir.mvbbanking.com.

Forward-looking Statements

MVB Financial Corp. has made forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in this Press Release. These forward-looking statements are based on current expectations about the future and subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations of the Company and its subsidiaries. When words such as "believes," "expects," "anticipates," "may," or similar expressions occur in this Earnings Release, the Company is making forward-looking statements. Note that many factors could affect the future financial results of the Company and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in the forward-looking statements contained in this Earnings Release. Those factors include, but are not limited to: credit risk, changes in market interest rates, inability to achieve merger-related synergies, competition, economic downturn or recession, and government regulation and supervision. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, as well as its other filings with the SEC, which are available on the SEC website at www.sec.gov. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements.

Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company's financial statements when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information in this announcement is subject to change.

 

 

MVB Financial Corp.

Financial Highlights


Condensed Consolidated Statements of Income

(Unaudited) (Dollars in thousands, except per share data)




Six Months Ended
June 30,


Three
Months
Ended
June 30,


Three
Months
Ended
March 31,


Three
Months
Ended
June 30,



2017


2016


2017


2017


2016

Interest income


$

26,882



$

26,962



$

13,814



$

13,068



$

13,580


Interest expense


5,682



5,525



2,920



2,762



2,838


     Net interest income


21,200



21,437



10,894



10,306



10,742


Provision for loan losses


1,041



1,900



523



518



1,275


Noninterest income


20,391



20,613



11,567



8,824



12,001


Noninterest expense


34,820



33,656



18,503



16,317



17,756


     Income from continuing operations, before income taxes


5,730



6,494



3,435



2,295



3,712


Income tax expense - continuing operations


1,896



2,134



1,175



721



1,254


     Net income from continuing operations


3,834



4,360



2,260



1,574



2,458


Loss from discontinued operations, before income taxes




6,346







6,516


Income tax benefit - discontinued operations




2,411







2,475


     Net loss from discontinued operations




3,935







4,041


     Net income


$

3,834



$

8,295



$

2,260



$

1,574



$

6,499


Preferred dividends


251



500



122



129



314


     Net income available to common shareholders


$

3,583



$

7,795



$

2,138



$

1,445



$

6,185













Earnings per share from continuing operations - basic


$

0.35



$

0.48



$

0.21



$

0.14



$

0.27


Earnings per share from discontinued operations - basic


$



$

0.49



$



$



$

0.50


Earnings per common shareholder - basic


$

0.35



$

0.97



$

0.21



$

0.14



$

0.77













Earnings per share from continuing operations - diluted


$

0.35



$

0.45



$

0.20



$

0.14



$

0.25


Earnings per share from discontinued operations - diluted


$



$

0.40



$



$



$

0.38


Earnings per common shareholder - diluted


$

0.35



$

0.85



$

0.20



$

0.14



$

0.63


 

 

Condensed Consolidated Balance Sheets

(Unaudited) (Dollars in thousands)




June 30, 2017


March 31, 2017


December 31, 2016


June 30, 2016

Cash and cash equivalents


$

17,805



$

18,278



$

17,340



$

28,762


Certificates of deposit with other banks


14,527



14,527



14,527



13,150


Investment securities


175,110



172,754



162,368



138,844


Loans held for sale


107,825



71,921



90,174



131,671


Loans


1,102,378



1,076,782



1,052,865



1,087,506


Allowance for loan losses


(9,748)



(9,372)



(9,101)



(9,091)


Net loans


1,092,630



1,067,410



1,043,764



1,078,415


Premises and equipment


27,462



26,079



25,081



25,846


Goodwill


18,480



18,480



18,480



18,480


Other assets


53,214



44,502



47,070



49,794


     Total assets


$

1,507,053



$

1,433,951



$

1,418,804



$

1,484,962











Deposits


$

1,099,608



$

1,136,466



$

1,107,017



$

1,067,242


Borrowed funds


189,384



90,611



90,921



213,008


Other liabilities


71,227



68,149



75,241



80,693


Shareholders' equity


146,834



138,725



145,625



124,019


     Total liabilities and shareholders' equity


$

1,507,053



$

1,433,951



$

1,418,804



$

1,484,962


 

 

Reportable Segments

(Unaudited)


Three Months Ended June 30, 2017


Commercial
& Retail
Banking


Mortgage
Banking


Financial
Holding
Company


Intercompany
Eliminations


Consolidated

(Dollars in thousands)






Revenues:











Interest income


$

12,907



$

1,073



$

1



$

(167)



$

13,814


Mortgage fee income


188



8,937





(173)



8,952


Insurance and investment services income


124









124


Other income


1,405



1,137



1,307



(1,358)



2,491


     Total operating income


14,624



11,147



1,308



(1,698)



25,381


Expenses:











Interest expense


2,168



534



558



(340)



2,920


Salaries and employee benefits


3,267



7,147



1,384





11,798


Provision for loan losses


467



56







523


Other expense


5,065



2,044



954



(1,358)



6,705


     Total operating expenses


10,967



9,781



2,896



(1,698)



21,946


Income (loss) from continuing operations, before income taxes


3,657



1,366



(1,588)





3,435


Income tax expense (benefit) - continuing operations


1,165



540



(530)





1,175


Net income (loss) from continuing operations


2,492



826



(1,058)





2,260


Net income (loss)


$

2,492



$

826



$

(1,058)



$



$

2,260


Preferred stock dividends






122





122


Net income (loss) available to common shareholders


$

2,492



$

826



$

(1,180)



$



$

2,138


 

 

Reportable Segments

(Unaudited)


Three Months Ended March 31, 2017


Commercial
& Retail
Banking


Mortgage
Banking


Financial
Holding
Company


Intercompany
Eliminations


Consolidated

(Dollars in thousands)






Revenues:











Interest income


$

12,312



$

781



$

1



$

(26)



$

13,068


Mortgage fee income


185



9,637





(188)



9,634


Insurance and investment services income


124









124


Other income


953



(1,831)



1,210



(1,266)



(934)


     Total operating income


13,574



8,587



1,211



(1,480)



21,892


Expenses:











Interest expense


2,119



304



551



(212)



2,762


Salaries and employee benefits


2,657



5,955



1,350





9,962


Provision for loan losses


500



18







518


Other expense


4,650



2,098



875



(1,268)



6,355


     Total operating expenses


9,926



8,375



2,776



(1,480)



19,597


Income (loss) from continuing operations, before income taxes


3,648



212



(1,565)





2,295


Income tax expense (benefit) - continuing operations


1,161



96



(536)





721


Net income (loss) from continuing operations


2,487



116



(1,029)





1,574


Net income (loss)


$

2,487



$

116



$

(1,029)



$



$

1,574


Preferred stock dividends






129





129


Net income (loss) available to common shareholders


$

2,487



$

116



$

(1,158)



$



$

1,445


 

 

Reportable Segments

(Unaudited)


Three Months Ended June 30, 2016


Commercial
& Retail
Banking


Mortgage
Banking


Financial
Holding
Company


Insurance


Intercompany
Eliminations


Consolidated

(Dollars in thousands)







Revenues:













Interest income


$

12,591



$

1,154



$

1



$



$

(166)



$

13,580


Mortgage fee income


(73)



9,750







(280)



9,397


Insurance and investment services income


122











122


Other income


1,404



1,157



1,252





(1,332)



2,481


     Total operating income


14,044



12,061



1,253





(1,778)



25,580


Expenses:













Interest expense


2,159



572



553





(446)



2,838


Salaries and employee benefits


2,899



7,430



1,406







11,735


Provision for loan losses


1,275











1,275


Other expense


4,431



1,982



939





(1,332)



6,020


     Total operating expenses


10,764



9,984



2,898





(1,778)



21,868


Income (loss) from continuing operations, before income taxes


3,280



2,077



(1,645)







3,712


Income tax expense (benefit) - continuing operations


1,012



800



(558)







1,254


Net income (loss) from continuing operations


2,268



1,277



(1,087)







2,458


Income (loss) from discontinued operations






6,926



(410)





6,516


Income tax expense (benefit) - discontinued operations


$



$



$

2,629



$

(154)



$



$

2,475


Net income (loss) from discontinued operations


$



$



$

4,297



$

(256)



$



$

4,041


Net income (loss)


$

2,268



$

1,277



$

3,210



$

(256)



$



$

6,499


Preferred stock dividends






314







314


Net income (loss) available to common shareholders


$

2,268



$

1,277



$

2,896



$

(256)



$



$

6,185


 

 

Reportable Segments

(Unaudited)


Six Months Ended June 30, 2017


Commercial &
Retail Banking


Mortgage
Banking


Financial
Holding
Company


Intercompany
Eliminations


Consolidated

(Dollars in thousands)






Revenues:











Interest income


$

25,218



$

1,854



$

2



$

(192)



$

26,882


Mortgage fee income


373



18,574





(361)



18,586


Insurance and investment services income


248









248


Other income


2,361



(694)



2,518



(2,628)



1,557


     Total operating income


28,200



19,734



2,520



(3,181)



47,273


Expenses:











Interest expense


4,288



838



1,109



(553)



5,682


Salaries and employee benefits


5,924



13,101



2,735





21,760


Provision for loan losses


967



74







1,041


Other expense


9,716



4,143



1,829



(2,628)



13,060


     Total operating expenses


20,895



18,156



5,673



(3,181)



41,543


Income (loss) from continuing operations, before income taxes


7,305



1,578



(3,153)





5,730


Income tax expense (benefit) - continuing operations


2,326



636



(1,066)





1,896


Net income (loss) from continuing operations


4,979



942



(2,087)





3,834


Income (loss) from discontinued operations











Income tax expense (benefit) - discontinued operations


$



$



$



$



$


Net income (loss) from discontinued operations


$



$



$



$



$


Net income (loss)


$

4,979



$

942



$

(2,087)



$



$

3,834


Preferred stock dividends






251





251


Net income (loss) available to common shareholders


$

4,979



$

942



$

(2,338)



$



$

3,583


 

 

Reportable Segments

(Unaudited)


Six Months Ended June 30, 2016


Commercial
& Retail
Banking


Mortgage
Banking


Financial
Holding
Company


Insurance


Intercompany
Eliminations


Consolidated

(Dollars in thousands)







Revenues:













Interest income


$

25,055



$

2,095



$

1



$



$

(189)



$

26,962


Mortgage fee income


(95)



16,859







(582)



16,182


Insurance and investment services income


175











175


Other income


2,474



1,835



2,866





(2,921)



4,254


     Total operating income


27,609



20,789



2,867





(3,692)



47,573


Expenses:













Interest expense


4,199



991



1,105





(770)



5,525


Salaries and employee benefits


5,730



13,142



3,172







22,044


Provision for loan losses


1,900











1,900


Other expense


8,904



3,925



1,703





(2,922)



11,610


     Total operating expenses


20,733



18,058



5,980





(3,692)



41,079


Income (loss) from continuing operations, before income taxes


6,876



2,731



(3,113)







6,494


Income tax expense (benefit) - continuing operations


2,150



1,058



(1,074)







2,134


Net income (loss) from continuing operations


4,726



1,673



(2,039)







4,360


Income (loss) from discontinued operations






6,926



(580)





6,346


Income tax expense (benefit) - discontinued operations


$



$



$

2,629



$

(218)



$



$

2,411


Net income (loss) from discontinued operations


$



$



$

4,297



$

(362)



$



$

3,935


Net income (loss)


$

4,726



$

1,673



$

2,258



$

(362)



$



$

8,295


Preferred stock dividends






500







500


Net income (loss) available to common shareholders


$

4,726



$

1,673



$

1,758



$

(362)



$



$

7,795


 

 

Average Balances and Interest Rates

(Unaudited) (Dollars in thousands)




Three Months Ended
June 30, 2017


Three Months Ended

March 31, 2017


Three Months Ended
June 30, 2016



Average
Balance


Interest
Income/
Expense


Yield/
Cost


Average
Balance


Interest
Income/
Expense


Yield/
Cost


Average
Balance


Interest
Income/
Expense


Yield/
Cost

Assets



















Interest-bearing deposits in banks


$

3,277



$

12



1.47

%


$

2,734



$

10



1.48

%


$

16,369



$

20



0.49

%

CDs with other banks


14,456



70



1.94

%


14,527



69



1.93

%


13,150



62



1.89

%

Investment securities:



















     Taxable


119,553



645



2.16

%


108,862



546



2.03

%


74,999



332



1.77

%

     Tax-exempt


53,733



418



3.12

%


56,280



430



3.1

%


60,718



437



2.88

%

Loans and loans held for sale: 1



















     Commercial


725,707



8,170



4.52

%


746,364



7,943



4.32

%


755,350



8,089



4.28

%

     Tax exempt


15,263



131



3.44

%


15,329



131



3.47

%


16,495



142



3.44

%

     Real estate


373,353



4,201



4.51

%


352,144



3,764



4.33

%


415,126



4,285



4.13

%

     Consumer


13,817



167



4.85

%


14,370



175



4.94

%


18,027



213



4.73

%

Total loans


1,128,140



12,669



4.50

%


1,128,207



12,013



4.32

%


1,204,998



12,729



4.23

%

Total earning assets


1,319,159



13,814



4.20

%


1,310,610



13,068



4.04

%


1,370,234



13,580



3.96

%

Less: Allowance for loan losses


(9,734)







(9,427)







(8,688)






Cash and due from banks


15,407







15,246







10,974






Other assets


100,205







86,215







88,287






     Total assets


$

1,425,037







$

1,402,644







$

1,460,807

























Liabilities



















Deposits:



















     NOW


$

432,729



$

603



0.56

%


$

415,627



$

525



0.51

%


$

468,074



$

648



0.55

%

     Money market checking


237,173



432



0.73

%


236,845



458



0.78

%


149,475



280



0.75

%

     Savings


48,590



20



0.17

%


48,092



19



0.16

%


43,947



24



0.22

%

     IRAs


16,282



53



1.31

%


16,573



50



1.22

%


16,375



53



1.29

%

     CDs


256,887



855



1.33

%


264,626



854



1.31

%


320,906



944



1.18

%

Repurchase agreements and federal funds sold


21,268



19



0.36

%


23,113



17



0.30

%


26,816



17



0.25

%

FHLB and other borrowings


112,385



380



1.36

%


103,990



288



1.12

%


175,834



319



0.73

%

Subordinated debt


33,524



558



6.68

%


33,524



551



6.67%


33,524



553



6.60

%

     Total interest-bearing liabilities


1,158,838



2,920



1.01

%


1,142,390



2,762



0.98

%


1,234,951



2,838



0.92

%

Noninterest bearing demand deposits


114,974







113,021







97,826






Other liabilities


7,698







9,226







10,173






     Total liabilities


1,281,510







1,264,637







1,342,950

























Stockholders' equity



















Preferred stock


7,834







8,212







16,334






Common stock


10,375







10,048







8,129






Paid-in capital


96,986







93,476







74,349






Treasury stock


(1,084)







(1,084)







(1,084)






Retained earnings


32,764







31,651







22,001






Accumulated other comprehensive income


(3,348)







(4,296)







(1,872)






     Total stockholders' equity


143,527







138,007







117,857






     Total liabilities and stockholders' equity


$

1,425,037







1,402,644







$

1,460,807

























Net interest spread






3.19

%






3.06

%






3.04

%

Net interest income-margin




$

10,894



3.31

%




10,306



3.19

%




$

10,742



3.14

%

1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.

 

 

Average Balances and Interest Rates

(Unaudited) (Dollars in thousands)




Six Months Ended
June 30, 2017


Six Months Ended
June 30, 2016

(Dollars in thousands)


Average
Balance


Interest
Income/
Expense


Yield/
Cost


Average
Balance


Interest
Income/
Expense


Yield/
Cost

Assets













Interest-bearing deposits in banks


$

3,007



$

21



1.41

%


$

17,501



$

45



0.51

%

CDs with other banks


14,491



140



1.95



13,150



125



1.90


Investment securities:













     Taxable


114,237



1,191



2.10



71,482



642



1.80


     Tax-exempt


54,999



848



3.11



58,978



844



2.86


Loans and loans held for sale: 1













     Commercial


735,979



16,113



4.41



733,806



16,478



4.49


     Tax exempt


15,296



262



3.45



16,653



288



3.46


     Real estate


362,807



7,965



4.43



392,723



8,119



4.13


     Consumer


14,092



342



4.89



18,168



421



4.63


Total loans


1,128,174



24,682



4.41



1,161,350



25,306



4.36


Total earning assets


1,314,908



26,882



4.12



1,322,461



26,962



4.08


Less: Allowance for loan losses


(9,581)







(8,466)






Cash and due from banks


15,327







13,313






Other assets


93,248







87,221






     Total assets


$

1,413,902







$

1,414,529



















Liabilities













Deposits:













     NOW


$

424,225



$

1,126



0.54



$

474,045



$

1,335



0.56

%

     Money market checking


237,010



891



0.76



130,235



474



0.73


     Savings


48,342



40



0.17



44,405



50



0.23


     IRAs


16,426



103



1.26



16,026



103



1.29


     CDs


260,735



1,709



1.32



325,555



1,875



1.15


Repurchase agreements and federal funds sold


22,186



36



0.33



27,640



38



0.27


FHLB and other borrowings


108,210



668



1.24



144,962



545



0.75


Subordinated debt


33,524



1,109



6.67



33,524



1,105



6.59


     Total interest-bearing liabilities


1,150,658



5,682



1.00



1,196,392



5,525



0.92


Noninterest bearing demand deposits


114,003







92,025






Other liabilities


8,459







9,511






     Total liabilities


1,273,120







1,297,928



















Stockholders' equity













Preferred stock


8,022







16,334






Common stock


10,212







8,120






Paid-in capital


95,240







74,312






Treasury stock


(1,084)







(1,084)






Retained earnings


32,211







21,213






Accumulated other comprehensive income


(3,819)







(2,294)






     Total stockholders' equity


140,782







116,601






     Total liabilities and stockholders' equity


$

1,413,902







$

1,414,529



















Net interest spread






3.13







3.15


Net interest income-margin




$

21,200



3.25

%




$

21,437



3.24

%

1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.

 

 

Selected Financial Data

(Unaudited) (Dollars in thousands, except per share data)

 

 



Quarterly


Year-to-Date



2017


2017


2016


2016


2016


2017


2016



Second
Quarter


First
Quarter


Fourth
Quarter


Third
Quarter


Second
Quarter



Earnings and Per Share Data:















     Net income from continuing operations


$

2,260



$

1,574



$

2,307



$

2,310



$

2,458



$

3,834



$

4,360


     Net income from discontinued operations










4,041





3,935


     Net income


2,260



1,574



2,307



2,310



6,499



3,834



8,295


     Net income available to common shareholders


2,138



1,445



1,993



1,996



6,185



3,583



7,795


     Earnings per share from continuing operations - basic


0.21



0.14



0.23



0.25



0.27



0.35



0.48


     Earnings per share from discontinued operations - basic










0.50





0.49


     Earnings per common shareholder - basic


0.21



0.14



0.23



0.25



0.77



0.35



0.97


     Earnings per share from continuing operations - diluted


0.20



0.14



0.22



0.24



0.25



0.35



0.45


     Earnings per share from discontinued operations - diluted










0.38





0.40


     Earnings per common shareholder - diluted


0.20



0.14



0.22



0.24



0.63



0.35



0.85


     Cash dividends paid per common share


0.025



0.025



0.02



0.02



0.02



0.05



0.04


     Book value per common share


13.31



13.09



12.93



13.49



13.33



13.31



13.33


     Weighted average shares outstanding - basic


10,343,933



9,996,544



8,212,021



8,080,690



8,078,000



10,171,198



8,070,082


     Weighted average shares outstanding - diluted


12,181,433



10,009,341



10,068,733



10,434,344



10,433,120



10,172,254



9,925,573

















Performance Ratios:















     Return on average assets - continuing operations 1


0.63

%


0.45

%


0.64

%


0.64

%


0.67

%


0.54

%


0.62

%

     Return on average assets - discontinued operations 1


%


%


%


%


1.11

%


%


0.56

%

     Return on average equity - continuing operations 1


6.30

%


4.56

%


7.02

%


7.32

%


8.34

%


5.45

%


7.48

%

     Return on average equity - discontinued operations 1


%


%


%


%


13.71

%


%


6.75

%

     Net interest margin 2


3.31

%


3.19

%


3.23

%


3.17

%


3.14

%


3.25

%


3.24

%

     Efficiency ratio 3


82.38

%


85.30

%


80.48

%


80.58

%


78.07

%


83.72

%


80.04

%

     Overhead ratio 1 4


5.19

%


4.65

%


4.69

%


5.18

%


4.86

%


4.93

%


4.76

%
















Asset Quality Data and Ratios:















     Charge-offs


$

163



$

290



$

713



$

1,018



$

635



$

453



$

826


     Recoveries


16



43



8



2



4



59



11


     Net loan charge-offs to total loans 1 5


0.05

%


0.09

%


0.27

%


0.38

%


0.23

%


0.07

%


0.15

%

     Allowance for loan losses


9,748



9,372



9,101



9,150



9,091



9,748



9,101


     Allowance for loan losses to total loans 6


0.88

%


0.87

%


0.86

%


0.85

%


0.84

%


0.88

%


0.84

%

     Nonperforming loans


5,103



6,575



6,229



10,201



8,201



5,103



8,201


     Nonperforming loans to total loans


0.46

%


0.61

%


0.59

%


0.95

%


0.75

%


0.46

%


0.75

%
















Capital Ratios:















     Equity to assets


9.74

%


9.67

%


10.26

%


8.54

%


8.35

%


9.74

%


8.35

%

     Leverage ratio


9.59

%


9.24

%


9.54

%


7.88

%


7.67

%


9.59

%


7.67

%

     Common equity Tier 1 capital ratio


10.32

%


10.15

%


10.11

%


7.78

%


7.69

%


10.32

%


7.69

%

     Tier 1 risk-based capital ratio


11.33

%


11.19

%


11.92

%


9.51

%


9.44

%


11.33

%


9.44

%

     Total risk-based capital ratio


14.66

%


14.63

%


15.36

%


12.76

%


12.73

%


14.66

%


12.73

%

1 annualized for the quarterly periods presented
2 net interest income as a percentage of average interest earning assets
3 noninterest expense as a percentage of net interest income and noninterest income
4 noninterest expense as a percentage of average assets
5 charge-offs less recoveries
6 excludes loans held for sale

 

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SOURCE MVB Financial Corp.

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