MVB Bank's Third Quarter Earnings Rise by 56% On Sustained Strong
Commercial Lending, Record Mortgage Lending
FAIRMONT, W.Va., Nov. 5, 2012 /PRNewswire/ -- MVB Financial
Corp., (OTC Markets Group OTCQB: MVBF), and its bank holding
company MVB Bank, Inc., today announced its quarterly results for
the period ending September 30,
2012. Third quarter 2012 net income of $1.0 million increased by 56% compared to third
quarter of 2011 net income of $673,000. For the nine-month period of
2012, net income reached $2.7
million, a 38% increase compared to the same period in
2011.
MVB's net interest income was $4.4
million for the third quarter of 2012, an increase of
$700,000 or 19% from the same time
period in 2011 and was driven mainly by the continued growth of
MVB's balance sheet, with $92.5
million in average loan growth and a significant demand in
refinancing created by historic low mortgage rates.
Deposits totaled $471.2 million
for the first nine months of 2012, an increase of $80.7 million since December 31, 2011. Interest expense of
$1.2 million in the third quarter of
2012 was comparable to the third quarter of 2011. Total interest
income in the third quarter 2012 was $5.6
million, an increase of $697,000, or 14.2% compared to the third quarter
of 2011 due primarily to continued growth in loan volume.
"Despite the challenges of margin compression, greater
regulatory demands and a persistent slow economic recovery, our
positive third quarter results reflect sustained strong growth in
both commercial and retail lending, including a record amount of
mortgage lending," said Larry F.
Mazza, CEO of MVB Financial Corp.
"We are pleased to be able to provide broad and diverse
assistance through our lending program to many families throughout
West Virginia desiring home
ownership. Our attractive interest rates and attention to client
service continue to be a hallmark of MVB's unique community bank
tradition. We remain focused on attracting core deposits to fund
growth in the new markets through continued delivery of the most
outstanding service to our clients with the highest quality
products and technology," said Mazza.
Operating Performance Supported by Continued Strong
Lending
MVB's high quality loan portfolio continues to drive the bank's
asset growth with an 18% increase, or $93.5
million addition in both commercial and mortgage lending
during the third quarter of 2012, compared to 2011. Total
assets at September 30, 2012 were
$613.6 million or an increase of
$80.2 million since December 31, 2011. Total capital increased by
$3.1 million, or 6.5%, since
December 31, 2011 driven mainly by
MVB's earnings of $2.7 million for
the nine-month period of 2012.
During the third quarter, MVB's Wealth Management Solutions
continued to show positive trends in growing a strong asset base
and revenue stream. Also during the quarter, MVB commenced
expansion of its Bridgeport
operations center investing in its growing loan operations area, as
well as being home to the bank's infrastructure areas including the
addition of people, enhancement of facilities and technology and
quality lending processes.
MVB's nonperforming loan ratio is among the lowest in the
country compared to peers, indicating that the West Virginia economic climate has not
suffered as much as the rest of the nation. This factor also
contributes to MVB consistently being ranked among top-tier banks
in the country by earning the 5-Star Superior Bank rating from
Bauer Financial, Inc. for the bank's safety, soundness and
financial strength.
Recently, MVB Bank opened the first new bank branch in
Downtown Clarksburg's historic
district in more than 15 years. Additional branches are currently
either in development or being planned in Morgantown's busy Sabraton area, to the east with an additional
branch in the Martinsburg market,
and in the Charleston
market.
Looking Ahead
Commenting on the outlook for MVB, Larry
Mazza said, "The Federal Reserve's lowering of interest
rates is driving a massive refinance boom that could last for
another year or two. Our commercial and retail loan growth, along
with our organic growth and M&A efforts requires MVB to further
raise our capital base. In order to fuel this growth, we are
preparing for a capital raise in the $20
-$25 million range."
"We are committed to growth with quality and to never lose sight
of what it means to be a true community bank by adhering to a high
service level while leveraging the technology expectations ahead.
We are committed to organic growth and expanding our
footprint in West Virginia while
seeking strategic acquisitions that bring true value to our
shareholders," noted Mazza.
About MVB Financial Corp.
MVB Bank, Inc. is a wholly-owned subsidiary of MVB Financial
Corp (OTCQB: MVBF), with locations in Marion, Monongalia and Harrison counties in North Central West
Virginia, and Berkeley and
Jefferson Counties in the Eastern
Panhandle of West Virginia. 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 additional information visit MVB's investor
relations webpage at ir.mvbbanking.com.
SOURCE MVB Financial Corp.