(MENAFNEditorial) iCrowdNewswire - Aug 4, 2017
FAIRMONT, W.Va — 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 millionor$0.21per share basic and$0.20per share diluted for the three months ended June30, 2017, compared to$2.5 millionor$0.27per share basic and$0.25per share diluted for the three months ended June30, 2016, excluding discontinued operations.
Approximately 1.9 million shares of the Company's common stock was issued from a capital raise completed inDecember 2016and 434,783 shares of the Company's common stock was issued from a rights offering completed inApril 2017. The$0.06decrease in basic earnings per share for the three months ended June30, 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," saidLarry 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 millionincreased$588 thousand, or 5.7% from March31, 2017, and$152 thousand, or 1.4% from the second quarter ended June30, 2016.Total assets continue to steadily grow and reached$1.5 billionas of June30, 2017.Loans of$1.1 billionas of June30, 2017 increased$25.6 million, or 2.4% from March31, 2017, and$14.9 million, or 1.4% from June30, 2016, despite a decrease in commercial real estate concentration levels, from 382% atJune 30, 2016, to 307% atMarch 31, 2017, and 306% atJune 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 June30, 2017.
As previously announced, MVB Bank opened its thirdMorgantown, West Virginia, branch banking location and its first branch banking location inLeesburg, Virginia. The newMorgantownbranch, located at 51 Donahue Drive, Suite 115, and the newLeesburgbranch, 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, inMorgantown, West VirginiaandLeesburg, 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 June30, 2017 totaled$1.102 billion, an increase of$25.6 million, or 2.4% when compared to loan balances at March31, 2017. In comparison to the June30, 2016 loan balance of$1.088 billion, loans increased$14.9 million, or 1.4%. Commercial loans increased$29.0 millionfrom March31, 2017, while still maintaining an appropriate level of commercial real estate concentration.
Deposits as of June30, 2017 totaled$1.100 billion, a decrease of$36.9 million, or 3.2% when compared to deposit balances at March31, 2017. In comparison to the June30, 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 millionas of June30, 2017, an increase of$2.1 millionsince March31, 2017 and$25.0 millionsince June30, 2016. The linked quarter decrease in deposit balances at June30, 2017 is primarily attributable to a$26.6 millionseasonal decrease in public fund deposits and the maturity of$19.4 millionin 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 March31, 2017 and$152 thousand, or 1.4% from the second quarter ended June30, 2016. Net interest margin for the second quarter of 2017 was 3.31%, an increase of 12 basis points from March31, 2017 and 17 basis points from the second quarter ended June30, 2016.
Provision for loan losses for the second quarter of 2017 was$523 thousand, an increase of$5 thousand, or 1.0% from March31, 2017 and a decrease of$752 thousand, or 59% from the second quarter ended June30, 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 June30, 2017, a decrease of 13 basis points from March31, 2017 and 29 basis points from June30, 2016. In addition, the Company's annualized net loan charge-offs to total loans was 0.05% as of June30, 2017, a decrease of 4 basis points from March31, 2017 and 18 basis points from June30, 2016.
Noninterest income for the second quarter of 2017 was$11.6 million, an increase of$2.7 million, or 31.1% from March31, 2017 and a decrease of$434 thousand, or 3.6% from the second quarter ended June30, 2016. The linked quarter increase was primarily the result of a$3.0 millionincrease in gain on derivatives. The year over year decrease was primarily the result of a$445 thousanddecrease 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 March31, 2017 and a decrease of$833 thousand, or 7.6% from the second quarter ended June30, 2016.
Noninterest expense for the second quarter of 2017 was$18.5 million, an increase of$2.2 million, or 13.4% from March31, 2017 and$747 thousand, or 4.2% from the second quarter ended June30, 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, onMay 17, 2017, MVB Financial Corp. declared a quarterly cash dividend of$0.025per share to shareholders of record at the close of business onJune 1, 2017, payableJune 15, 2017. This was the second quarterly dividend for 2017 and was equal to theMarch 2017payout of$0.025per share. The cash dividend of$0.05through the six months endedJune 30, 2017, increased$0.01, or 25% compared to the six months endedJune 30, 2016.
About MVB Financial Corp.
MVB is a financial holding company headquartered inFairmont, 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 December31, 2016, as well as its other filings with the SEC, which are available on the SEC website at. 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 inthousands)
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 inthousands)
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 inthousands)
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 inthousands)
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 inthousands)
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
%
1Non-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
(Dollarsinthousands)
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
%
1Non-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 operations1
0.63
%
0.45
%
0.64
%
0.64
%
0.67
%
0.54
%
0.62
%
Return on average assets - discontinued operations1
—
%
—
%
—
%
—
%
1.11
%
—
%
0.56
%
Return on average equity - continuing operations1
6.30
%
4.56
%
7.02
%
7.32
%
8.34
%
5.45
%
7.48
%
Return on average equity - discontinued operations1
—
%
—
%
—
%
—
%
13.71
%
—
%
6.75
%
Net interest margin2
3.31
%
3.19
%
3.23
%
3.17
%
3.14
%
3.25
%
3.24
%
Efficiency ratio3
82.38
%
85.30
%
80.48
%
80.58
%
78.07
%
83.72
%
80.04
%
Overhead ratio1 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 loans15
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 loans6
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
%
1annualized for the quarterly periods presented
2net interest income as a percentage of average interest earning assets
3noninterest expense as a percentage of net interest income and noninterest income
4noninterest expense as a percentage of average assets
5charge-offs less recoveries
6excludes loans held for sale
SOURCE MVB Financial Corp.
MENAFN0408201700703403ID1095693986