MVB Bank to Purchase Potomac Mortgage Group, a 'Top 100' Mortgage
Company in the Country
FAIRMONT, W.Va., Dec. 3, 2012 /PRNewswire/ -- MVB Financial
Corp., (OTC Markets Group OTCQB: MVBF), today announced it has
reached an agreement to purchase the northern Virginia residential mortgage company Potomac
Mortgage Group, LLC (PMG), with offices in Fairfax, McLean and Reston. MVB will be purchasing PMG for
approximately $19 million in cash and
MVB common shares.
The addition of PMG is expected to be accretive to
MVB's earnings beginning in the first quarter of 2013. PMG will
retain its identity and will become a wholly-owned subsidiary of
MVB Bank, Inc.
With the addition of PMG's annual production of mortgages, MVB
Bank and PMG are expected to become a $1
billion mortgage production unit at a time when MVB Bank is
experiencing record mortgage lending. PMG was rated in the
Top 100 Mortgage Companies, based on mortgage loan production, in
the country in 2011.
MVB has received the highest Superior 5-Star Rating from Bauer
Financial, Inc. during the past several years for the overall
safety, soundness and quality of the bank, which ranks among the
best in the industry.
The transaction is scheduled to close before the end of the
current calendar year pending regulatory approvals and other
customary closing conditions. PMG's CEO Ed
Dean and management team will continue to operate the
mortgage subsidiary. In addition, Dean will oversee MVB's total
mortgage operations. Significant to the deal is PMG's experienced
68 person workforce, including a strong team of professional
mortgage lenders. An additional 30 employees are employed through
PMG's 50%-owned operations center, which will also support
MVB's overall mortgage area.
Commenting on this transaction, MVB Financial Corp. CEO
Larry Mazza said, "We believe MVB's
success in the retail mortgage lending arena will be strengthened
by the addition of PMG's mortgage business with its talent,
technology platform and high quality operations. In my opinion
northern Virginia is one of the
best markets for mortgage banking in the country and we are
ecstatic to be in this growing and vibrant area. MVB is very
familiar with Ed Dean as we have
known and worked together with him for more than 20 years in
various banking relationships and with PMG. We believe he and
his team are some of the best in the mortgage banking business. Ed
is a proven leader who can make this strategic partnership with PMG
into a positive game changer for both organizations. I am happy we
are on the same team."
A native of Clarksburg, West
Virginia, PMG's Ed Dean said,
"Joining forces with an organization the caliber of MVB Bank is a
unique opportunity to allow PMG to lend beyond its current
geographic scope and our combined operations and systems will
support significant mortgage lending growth potential. We're
very pleased to become part of MVB."
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.
Forward-Looking Statement
All statements other than statements of historical fact included
in this press release are, or may be deemed to be, forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of
1934. Such information involves risks and uncertainties that
could result in the Company's actual results differing from those
projected in the forward-looking statements. Important
factors that could cause actual results to differ materially from
those discussed in such forward-looking statements include, but are
not limited to: (i) the Company may incur loan losses due to
negative credit quality trends in the future that may lead to
deterioration of asset quality; (ii) the Company may incur
increased charge-offs in the future; (iii) the Company could have
adverse legal actions of a material nature; (iv) the Company may
face competitive loss of customers; (v) the Company may be unable
to manage its expense levels; (vi) the Company may have difficult
retaining key employees; (vii) changes in the interest rate
environment may have results on the Company's operations materially
different from those anticipated by the Company's market risk
management functions; (viii) changes in general economic conditions
and increased competition could adversely affect the Company's
operating results; (ix) changes in other regulations and government
policies affecting bank holding companies and their subsidiaries,
including changes in monetary policies, may negatively impact the
Company's operating results; (x) the effects of the
Dodd-Frank Wall Street Reform and Consumer Protection Act may
adversely affect the Company; (xi) the possibility that the
acquisition of PMG does not close when expected or at all because
conditions to closing are not satisfied on a timely basis or at
all; (xii) the risk that the benefits from the acquisition may not
be fully realized or may take longer to realize than expected,
including as a result of changes in general economic and market
conditions, interest and exchange rates, monetary policy, laws and
regulations and their enforcement, and the degree of competition in
the geographic and business areas in which MVB and PMG operate;
(xiii) the reaction of the companies' customers, employees and
counterparties to the acquisition; (xiv) the integration of the
operations of MVB and PMG may be more difficult, costly or
time-consuming than expected; (xv) diversion of management time on
acquisition -related issues; and (xivi) other factors which could
cause actual results to differ materially from future results
expressed or implied by such forward-looking statements.
SOURCE MVB Financial Corp.