Press Release

MVB Financial Corp. Reports Fourth Quarter 2017 Earnings

Company Release - 2/27/2018 5:38 PM ET

FAIRMONT, W. Va.--(BUSINESS WIRE)-- For the 12 months ended December 31, 2017, MVB Financial Corp. (the "Company") (NASDAQ: MVBF) reported net income of $7.6 million, or $0.69 and $0.68 basic and diluted earnings per share compared to $12.9 million, or $1.44 and $1.31 basic and diluted earnings per share respectively, for the same period in 2016.

"Three significant factors contributed to MVB's 2017 performance results compared to 2016. These were the $3.9 million after-tax gain on the asset sale of a wholly-owned subsidiary, MVB Insurance, in 2016; the $1.5 million decrease in net income within MVB Mortgage created by the continued market pressure within the mortgage industry; and a $646 thousand charge associated with the new tax law changes passed in late 2017; however, the tax law will generate a positive net income effect for us in 2018," said Larry F. Mazza, CEO and President, MVB Financial.

“To this end, we strategically added positions to reinforce our sales Team efforts and to take advantage of disruptions in our markets due to recent M&A activity, especially in Northern Virginia. We are successfully recruiting some of the best talent in our markets because people are attracted to our entrepreneurial spirit, team culture and community focus. When the pain to stay the same is equal to the pain to make a job change, people are willing to make a move. With our listing on The Nasdaq, buzz is building around Team MVB.”

Approximately 1.9 million shares of the Company’s common stock were issued from a capital raise completed in December 2016, and 434,783 shares of the Company’s common stock were issued from a rights offering completed in April 2017. These additional issued shares resulted in a $0.19 and $0.18 decrease in basic and diluted earnings per share, respectively for the 12 months ended December 31, 2017, compared to the same time period in 2016, while a $4.7 million decrease in 2017 net income available to common shareholders versus 2016, resulted in the remaining $0.56 and $0.45 decrease in basic and dilutive earnings per share, respectively.

FOURTH QUARTER 2017 HIGHLIGHTS

  • MVB received approval in December 2017 to list its common stock for trading on The Nasdaq Capital Market®. The listing marked a major milestone in MVB’s growth journey.
  • Net interest income of $11.7 million increased $269 thousand, or 2.4% from September 30, 2017, and $858 thousand, or 7.9% from the fourth quarter ended December 31, 2016.
  • Total assets saw steady growth and reached $1.5 billion as of December 31, 2017, an 8.1% increase from December 31, 2016.
  • Loans of $1.1 billion as of December 31, 2017, increased $53.1 million, or 5.0% from December 31, 2016, and $11.5 million, or 1.0% from September 30, 2017.
  • Deposits of $1.2 billion as of December 31, 2017, increased $52.6 million, or 4.7% from December 31, 2016. Noninterest bearing deposit balances have grown to $126.0 million as of December 31, 2017, an increase of $10.3 million since December 31, 2016.

With the passage of tax reform in December 2017, MVB expects to see benefits and to share tax savings with Team MVB and the communities in its footprint. During fourth quarter 2017, MVB approved the hiring of 31 new Team members for 2018 and the opening of additional branches in Northern Virginia.

Demonstrating its commitment to community development, MVB made a $2 million initial investment in the creation of a Community Development Corporation ("CDC"), which started full operations in the fourth quarter, including establishing its initial Board of Directors.

“Led by its President Herman DeProspero, the CDC will play an integral role in our commitment to the economic welfare of our communities,” Mazza said.

FINANCIAL DETAILS

Loans totaled $1.106 billion as of December 31, 2017, an increase of $53.1 million, or 5.0% from December 31, 2016, and $11.5 million, or 1.0% from September 30, 2017. The total loan growth was less than originally anticipated for the year caused primarily by management taking direct action to diversify lending to reduce commercial real estate concentration levels coupled with a 63% increase in commercial loan payoffs.

In comparison to the December 31, 2016, deposit balance of $1.107 billion, deposits increased $52.6 million, or 4.7%. Noninterest bearing deposit balances rose to $126.0 million, or 10.9% of the total deposit base as of December 31, 2017, an increase of $10.3 million, or 8.9% since December 31, 2016, and $4.4 million since September 30, 2017.

Net interest income for the fourth quarter of 2017 was $11.7 million, an increase of $269 thousand, or 2.4% from September 30, 2017, and $858 thousand, or 7.9% from the fourth quarter ended December 31, 2016. Net interest margin for the fourth quarter of 2017 was 3.29%, a decrease of 8 basis points from September 30, 2017, and an increase of 6 basis points versus the quarter ended December 31, 2016. For the 12 months ended December 31, 2017, net interest margin increased 5 basis points to 3.27%. The full year increase in net interest margin was the result of a 12 basis point increase in earning assets due to higher yields.

Interest expense increased 5.8% during the fourth quarter of 2017 and 10.5% for the 12 months ended December 31, 2017, compared to the same time period in 2016, due to an 11 basis point increase in the cost of interest-bearing liabilities. Increased interest rates and an emphasis on loan yields helped to increase net interest income, despite increases in interest expense. Additionally, the flattened yield curve placed pressure on net interest margin earned from our mortgage operations as the cost of short-term borrowings to fund the mortgage business increased, while the yield from loans held for sale remained flat, consistent with the 30-year Treasury bond rates.

Provision for loan loss was $2.2 million for the full year ended December 31, 2017, a $1.5 million decrease from the same time period in 2016, despite a 5.0% increase in loans. The substantial decline of average historical loss rates and a $1.1 million decline in charge-offs contributed to the decrease in provision for 2017. Specific loan loss allocations increased by $645 thousand in 2017 compared to a $470 thousand decrease in 2016. Nonperforming loans increased $3.5 million, to 0.88% of total loans as of December 31, 2017. In addition, charge-offs for 2017 decreased $1.1 million compared to 2016, resulting in an annualized net loan charge-offs to total loans ratio of 0.13% as of December 31, 2017.

Noninterest income for the fourth quarter of 2017 was $10.2 million, flat from September 30, 2017, and an increase of $91 thousand from the fourth quarter ended December 31, 2016. For the full year of 2017, noninterest income was $40.7 million, a decrease of $2.5 million from the same period in 2016. The year over year decrease was primarily the result of a $4.2 million decrease in gain on derivatives, primarily the result of a 39.0% decrease in the locked mortgage pipeline for the full year 2017 compared to a 31.6% increase in the locked mortgage pipeline for the full year 2016. In addition, mortgage production volume decreased $102.2 million or 6.2% for the full year 2017 versus the same time period in 2016. Excluding the decrease in gain on derivatives, noninterest income for the full year of 2017 increased $1.7 million, mostly due to increases in mortgage fee income, commercial swap fee income and other operating income. Gain on sale of securities and gain on sale of portfolio loans decreased $351 thousand and $504 thousand respectively, for the full year of 2017 in comparison to 2016.

Noninterest expense for the fourth quarter of 2017 was $17.7 million, a decrease of $252 thousand, or 1.4% from September 30, 2017, and an increase of $900 thousand, or 5.4% from the fourth quarter ended December 31, 2016. For the full year of 2017, noninterest expense was $70.5 million, an increase of $1.3 million, or 1.9% from the same period in 2016.

A $951 thousand increase in occupancy and equipment costs for the full year of 2017 relates to the two new, high technology MVB branches opened during the third quarter of 2017 and a continued focus and investment in client-friendly technology. To control expenses, two branches in Martinsburg, W.Va., were consolidated in December 2017 due to their proximity.

The Company continues to tightly manage expenses and maximize resources to expand revenues and invest in the future. Data processing and communications for the full year of 2017 increased only $152 thousand compared to the same period in 2016, despite $520 thousand in additional expense related to a core system conversion in the second quarter of 2017. Additionally, salary and employee benefits decreased $1.1 million, or 2.5% for the full year of 2017 in comparison to 2016, primarily due to a decrease in mortgage production volume of 6.2% over the same period.

As previously announced, on November 22, 2017, the Company declared a quarterly cash dividend of $0.025 per share to shareholders of record at the close of business on December 2, 2017, payable December 15, 2017. This was the fourth quarterly dividend for 2017 and was equal to the March, June and September 2017 payouts of $0.025 per share. The cash dividend of $0.10 for the full year 2017, increased $0.025, or 25% compared to the same time period in 2016.

About MVB Financial Corp.

MVB Financial Corp. (“MVB Financial” or “MVB”), the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® under the ticker “MVBF.”

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.

Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services.

For more information about MVB, 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 Earnings 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.

Questions or comments concerning this Earnings Release should be directed to:

MVB Financial Corp.

Donald T. Robinson, Executive Vice President and CFO
(304) 598-3500
drobinson@mvbbanking.com

   

MVB Financial Corp.

Financial Highlights

 
Condensed Consolidated Statements of Income

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

   

Quarterly

    Year-to-Date
2017 2017     2017     2017     2016     2017     2016
 

Fourth
Quarter

Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
Interest income $ 15,086 $ 14,630 $ 13,814 $ 13,068 $ 13,638 $ 56,598 $ 54,123
Interest expense 3,403   3,216   2,920   2,762   2,813   12,301   11,132
Net interest income 11,683 11,414 10,894 10,306 10,825 44,297 42,991
Provision for loan losses 1,036 96 523 518 657 2,173 3,632
Noninterest income 10,157 10,158 11,567 8,824 10,066 40,706 43,205
Noninterest expense 17,714   17,966   18,503   16,317   16,814   70,500   69,209
Income from continuing operations, before income taxes 3,090 3,510 3,435 2,295 3,420 12,330 13,355
Income tax expense - continuing operations 1,667   1,192   1,175   721   1,113   4,755   4,378
Net income from continuing operations 1,423 2,318 2,260 1,574 2,307 7,575 8,977
Income from discontinued operations, before income taxes 6,346
Income tax benefit - discontinued operations             2,411
Net income from discontinued operations 3,935
Net income $ 1,423   $ 2,318   $ 2,260   $ 1,574   $ 2,307   $ 7,575   $ 12,912
Preferred dividends 124 123 122 129 314 498 1,128
Net income available to common shareholders $ 1,299   $ 2,195   $ 2,138   $ 1,445   $ 1,993   $ 7,077   $ 11,784
 
Earnings per share from continuing operations - basic $ 0.12 $ 0.21 $ 0.21 $ 0.14 $ 0.23 $ 0.69 $ 0.96
Earnings per share from discontinued operations - basic $   $   $   $   $   $   $ 0.48
Earnings per common shareholder - basic $ 0.12 $ 0.21 $ 0.21 $ 0.14 $ 0.23 $ 0.69 $ 1.44
 
Earnings per share from continuing operations - diluted $ 0.12 $ 0.21 $ 0.20 $ 0.14 $ 0.22 $ 0.68 $ 0.92
Earnings per share from discontinued operations - diluted $   $   $   $   $   $   $ 0.39
Earnings per common shareholder - diluted $ 0.12 $ 0.21 $ 0.20 $ 0.14 $ 0.22 $ 0.68 $ 1.31
 
 
Condensed Consolidated Balance Sheets

(Unaudited) (Dollars in thousands)

      December 31, 2017     September 30, 2017     December 31, 2016
Cash and cash equivalents $ 20,305 $ 20,272 $ 17,340
Certificates of deposit with other banks 14,778 14,778 14,527
Investment securities 231,507 187,348 162,368
Loans held for sale 66,794 69,057 90,174
Loans 1,105,941 1,094,467 1,052,865
Allowance for loan losses (9,878 ) (9,396 ) (9,101 )
Net loans 1,096,063 1,085,071 1,043,764
Premises and equipment 26,686 27,189 25,081
Goodwill 18,480 18,480 18,480
Other assets 59,689   49,395   47,070  
Total assets $ 1,534,302   $ 1,471,590   $ 1,418,804  
 
Deposits $ 1,159,580 $ 1,165,199 $ 1,107,017
Borrowed funds 152,169 84,403 90,921
Other liabilities 72,361 73,011 75,241
Shareholders' equity 150,192   148,977   145,625  
Total liabilities and shareholders' equity $ 1,534,302   $ 1,471,590   $ 1,418,804  
 
 
Reportable Segments

(Unaudited)

Twelve Months Ended December 31, 2017    

Commercial & Retail Banking

    Mortgage Banking     Financial Holding Company     Intercompany Eliminations     Consolidated
(Dollars in thousands)
Revenues:
Interest income $ 52,423 $ 4,698 $ 4 $ (527 ) $ 56,598
Mortgage fee income 736 37,262 (849 ) 37,149
Insurance and investment services income 563 563
Other income 5,303   (2,372 ) 5,466   (5,403 ) 2,994
Total operating income 59,025   39,588   5,470   (6,779 ) 97,304
Expenses:
Interest expense 9,118 2,317 2,241 (1,375 ) 12,301
Salaries and employee benefits 12,266 26,196 5,646 44,108
Provision for loan losses 1,967 206 2,173
Other expense 19,523   8,188   4,085   (5,404 ) 26,392
Total operating expenses 42,874   36,907   11,972   (6,779 ) 84,974
Income (loss) from continuing operations, before income taxes 16,151 2,681 (6,502 ) 12,330
Income tax expense (benefit) - continuing operations 5,820   1,082   (2,147 )   4,755
Net income (loss) from continuing operations 10,331   1,599   (4,355 )   7,575
Net income (loss) $ 10,331   $ 1,599   $ (4,355 ) $   $ 7,575
Preferred stock dividends 498 498
Net income (loss) available to common shareholders $ 10,331   $ 1,599   $ (4,853 ) $   $ 7,077
 
 
Reportable Segments

(Unaudited)

Twelve Months Ended December 31, 2016     Commercial & Retail Banking     Mortgage Banking     Financial Holding Company     Insurance     Intercompany Eliminations     Consolidated
(Dollars in thousands)
Revenues:
Interest income $ 50,413 $ 4,285 $ 3 $ $ (578 ) $ 54,123
Mortgage fee income (252 ) 36,960 (1,035 ) 35,673
Insurance and investment services income 420 420
Other income 5,485   1,674   5,247     (5,294 ) 7,112
Total operating income 56,066   42,919   5,250     (6,907 ) 97,328
Expenses:
Interest expense 8,437 2,082 2,226 (1,613 ) 11,132
Salaries and employee benefits 11,592 27,696 5,937 45,225
Provision for loan losses 3,632 3,632
Other expense 18,009   8,125   3,144     (5,294 ) 23,984
Total operating expenses 41,670   37,903   11,307     (6,907 ) 83,973
Income (loss) from continuing operations, before income taxes 14,396 5,016 (6,057 ) 13,355
Income tax expense (benefit) - continuing operations 4,496   1,954   (2,072 )     4,378
Net income (loss) from continuing operations 9,900   3,062   (3,985 )     8,977
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) $ 9,900   $ 3,062   $ 312   $ (362 ) $   $ 12,912
Preferred stock dividends 1,128 1,128
Net income (loss) available to common shareholders $ 9,900   $ 3,062   $ (816 ) $ (362 ) $   $ 11,784
 
 
Average Balances and Interest Rates

(Unaudited) (Dollars in thousands)

 
    Three Months Ended

December 31, 2017

    Three Months Ended
September 30, 2017
    Three Months Ended

December 31, 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 $ 4,636 $ 15 1.28 % $ 4,484 $ 15 1.33 % $ 11,843 $ 21 0.71 %
CDs with other banks 14,778 75 2.01 14,711 74 2.00 9,614 50 2.08
Investment securities:
Taxable 147,459 774 2.08 126,880 693 2.17 84,082 382 1.82
Tax-exempt 68,759 572 3.30 56,264 443 3.12 71,333 532 2.98
Loans and loans held for sale: 1
Commercial 770,664 9,042 4.65 762,650 8,742 4.55 734,548 8,225 4.48
Tax exempt 14,679 128 3.46 14,991 130 3.44 15,836 137 3.46
Real estate 374,047 4,300 4.56 349,459 4,346 4.93 400,411 4,106 4.10
Consumer 13,006   180   5.49   13,462   187   5.51   14,740   185   5.02  
Total loans 1,172,396   13,650   4.62   1,140,562   13,405   4.66   1,165,535   12,653   4.34  
Total earning assets 1,408,028   15,086   4.25   1,342,901   14,630   4.32   1,342,407   13,638   4.06  
Less: Allowance for loan losses (9,579 ) (9,760 ) (9,479 )
Cash and due from banks 16,969 17,501 15,428
Other assets 96,103   123,898   86,949  
Total assets $ 1,511,521   $ 1,474,540   $ 1,435,305  
 
Liabilities
Deposits:
NOW $ 467,095 $ 807 0.69 $ 436,493 $ 675 0.61 $ 443,524 $ 548 0.49
Money market checking 238,262 432 0.72 246,160 458 0.74 214,746 449 0.84
Savings 44,685 19 0.17 46,807 20 0.17 43,870 19 0.17
IRAs 17,200 59 1.36 16,649 56 1.33 16,516 52 1.26
CDs 278,446 1,025 1.46 249,698 874 1.39 302,037 941 1.25
Repurchase agreements and federal funds sold 24,727 19 0.30 25,093 20 0.32 26,758 17 0.25
FHLB and other borrowings 122,388 474 1.54 149,313 548 1.46 98,187 225 0.92
Subordinated debt 33,524   568   6.72   33,524   565   6.69   33,524   562   6.71  
Total interest-bearing liabilities 1,226,327   3,403   1.10   1,203,737   3,216   1.06   1,179,162   2,813   0.95  
Noninterest bearing demand deposits 127,417 115,343 109,769
Other liabilities 7,419   7,703   14,836  
Total liabilities 1,361,163   1,326,783   1,303,767  
 
Stockholders’ equity
Preferred stock 7,834 7,834 16,334
Common stock 10,496 10,495 8,675
Paid-in capital 99,123 98,289 80,101
Treasury stock (1,084 ) (1,084 ) (1,084 )
Retained earnings 36,982 35,152 30,551
Accumulated other comprehensive income (2,993 ) (2,929 ) (3,039 )
Total stockholders’ equity 150,358   147,757   131,538  
Total liabilities and stockholders’ equity $ 1,511,521   $ 1,474,540   $ 1,435,305  
 
Net interest spread 3.15 3.26 3.11
Net interest income-margin $ 11,683   3.29 % $ 11,414   3.37 % $ 10,825   3.23 %
 

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)

           
Twelve Months Ended

December 31, 2017

Twelve Months Ended

December 31, 2016

Twelve Months Ended

December 31, 2015

(Dollars in thousands)

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 $ 3,790 $ 52 1.37 % $ 16,347 $ 94 0.58 % $ 16,040 $ 43 0.27 %
CDs with other banks 14,619 288 1.97 11,694 228 1.95 12,267 231 1.88
Investment securities:
Taxable 125,797 2,658 2.11 76,525 1,366 1.79 66,110 958 1.45
Tax-exempt 58,786 1,863 3.17 64,108 1,853 2.89 53,376 1,537 2.88
Loans and loans held for sale: 1
Commercial 751,444 33,896 4.51 734,829 32,620 4.44 616,057 26,264 4.26
Tax exempt 15,064 520 3.45 16,326 564 3.45 19,678 689 3.50
Real estate 373,360 16,612 4.45 398,766 16,594 4.16 334,538 13,586 4.06
Consumer 13,660   709 5.19   16,762   804 4.80   17,383   792 4.56  
Total loans 1,153,528   51,737 4.49   1,166,683   50,582 4.34   987,656   41,331 4.18  
Total earning assets 1,356,520   56,598 4.17   1,335,357   54,123 4.05   1,135,449   44,100 3.88  
Less: Allowance for loan losses (9,626 ) (8,939 ) (7,016 )
Cash and due from banks 16,287 13,765 14,465
Other assets 90,585   87,815   83,520  
Total assets $ 1,453,766   $ 1,427,998   $ 1,226,418  
 
Liabilities
Deposits:
NOW $ 438,123 $ 2,608 0.60 $ 454,320 $ 2,413 0.53 % $ 446,704 $ 2,713 0.61 %
Money market checking 239,632 1,781 0.74 163,630 1,282 0.78 65,306 396 0.61
Savings 47,034 78 0.17 43,870 88 0.20 39,766 111 0.28
IRAs 16,678 217 1.30 16,319 208 1.27 12,038 146 1.21
CDs 262,417 3,610 1.38 314,542 3,757 1.19 278,499 2,880 1.03
Repurchase agreements and federal funds sold 23,559 75 0.32 27,066 72 0.27 26,884 83 0.31
FHLB and other borrowings 122,144 1,690 1.38 139,736 1,086 0.78 124,475 692 0.56
Subordinated debt 33,524   2,242 6.69   33,524   2,226 6.64   33,524   2,204 6.57  
Total interest-bearing liabilities 1,183,111   12,301 1.04   1,193,007   11,132 0.93   1,027,196   9,225 0.90  
Noninterest bearing demand deposits 117,696 99,826 79,611
Other liabilities 8,006   12,220   7,486  
Total liabilities 1,308,813   1,305,053   1,114,293  
 
Stockholders’ equity
Preferred stock 7,927 16,334 16,334
Common stock 10,355 8,263 8,065
Paid-in capital 96,987 75,799 74,331
Treasury stock (1,084 ) (1,084 ) (1,084 )
Retained earnings 34,155 25,943 16,941
Accumulated other comprehensive income (3,387 ) (2,310 ) (2,462 )
Total stockholders’ equity 144,953   122,945   112,125  
Total liabilities and stockholders’ equity $ 1,453,766   $ 1,427,998   $ 1,226,418  
 
Net interest spread 3.13 3.12 2.98
Net interest income-margin $ 44,297 3.27 % $ 42,991 3.22 % $ 34,875 3.07 %
 

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     2017     2017     2016 2017     2016
 

Fourth
Quarter

Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
Earnings and Per Share Data:
Net income from continuing operations $ 1,423 $ 2,318 $ 2,260 $ 1,574 $ 2,307 $ 7,575 $ 8,977
Net income from discontinued operations 3,935
Net income 1,423 2,318 2,260 1,574 2,307 7,575 12,912
Net income available to common shareholders 1,299 2,195 2,138 1,445 1,993 7,077 11,784
Earnings per share from continuing operations - basic 0.12 0.21 0.21 0.14 0.23 0.69 0.96
Earnings per share from discontinued operations - basic 0.48
Earnings per common shareholder - basic 0.12 0.21 0.21 0.14 0.23 0.69 1.44
Earnings per share from continuing operations - diluted 0.12 0.21 0.20 0.14 0.22 0.68 0.92
Earnings per share from discontinued operations - diluted 0.39
Earnings per common shareholder - diluted 0.12 0.21 0.20 0.14 0.22 0.68 1.31
Cash dividends paid per common share 0.025 0.025 0.025 0.025 0.02 0.10 0.08
Book value per common share 13.63 13.51 13.31 13.09 12.93 13.63 12.93
Weighted average shares outstanding - basic 10,444,627 10,443,443 10,343,933 9,996,544 8,624,143 10,308,738 8,212,021
Weighted average shares outstanding - diluted 10,823,994 12,410,070 12,181,433 10,009,341 10,514,727 10,440,228 10,068,733
 
Performance Ratios:
Return on average assets - continuing operations 1 0.38 % 0.63 % 0.63 % 0.45 % 0.64 % 0.52 % 0.63 %
Return on average assets - discontinued operations 1 % % % % % % 0.28 %
Return on average equity - continuing operations 1 3.79 % 6.28 % 6.30 % 4.56 % 7.02 % 5.23 % 7.30 %
Return on average equity - discontinued operations 1 % % % % % % 3.20 %
Net interest margin 2 3.29 % 3.37 % 3.31 % 3.19 % 3.23 % 3.27 % 3.22 %
Efficiency ratio 3 81.11 % 83.28 % 82.38 % 85.30 % 80.48 % 82.94 % 80.29 %
Overhead ratio 1 4 4.69 % 4.87 % 5.19 % 4.65 % 4.69 % 4.85 % 4.85 %
 
Asset Quality Data and Ratios:
Charge-offs $ 572 $ 472 $ 163 $ 290 $ 713 $ 1,497 $ 2,557
Recoveries 18 24 16 43 8 101 20
Net loan charge-offs to total loans 1 5 0.20 % 0.16 % 0.05 % 0.09 % 0.27 % 0.13 % 0.24 %
Allowance for loan losses 9,878 9,396 9,748 9,372 9,101 9,878 9,101
Allowance for loan losses to total loans 6 0.89 % 0.86 % 0.88 % 0.87 % 0.86 % 0.89 % 0.86 %
Nonperforming loans 9,699 6,559 5,103 6,575 6,229 9,699 6,229
Nonperforming loans to total loans 0.88 % 0.60 % 0.46 % 0.61 % 0.59 % 0.88 % 0.59 %
 
Capital Ratios:
Equity to assets 9.79 % 10.12 % 9.74 % 9.67 % 10.26 % 9.79 % 10.26 %
Leverage ratio 9.27 % 9.41 % 9.59 % 9.24 % 9.54 % 9.27 % 9.54 %
Common equity Tier 1 capital ratio 10.55 % 10.76 % 10.32 % 10.15 % 10.11 % 10.55 % 10.11 %
Tier 1 risk-based capital ratio 11.54 % 11.79 % 11.33 % 11.19 % 11.92 % 11.54 % 11.92 %
Total risk-based capital ratio 14.87 % 15.18 % 14.66 % 14.63 % 15.36 % 14.87 % 15.36 %
 
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
 

MVB Financial Corp.
Amy Baker, 844-682-2265
VP, Corporate Communications
abaker@mvbbanking.com

Source: MVB Financial Corp.

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