FAIRMONT, W.V., March 12, 2013 /PRNewswire/ -- MVB Financial
Corp., (OTC Markets Group OTCQB: MVBF), and its subsidiary bank,
MVB Bank, Inc., today announced quarterly results for the period
ending December 31, 2012. Fourth
quarter 2012 net income of $1.44
million increased by 98% compared to fourth quarter of 2011
net income of $727,000. Results for
the fourth quarter 2012 include the addition of Potomac Mortgage
Group, Inc. (PMG) during the quarter, the acquisition which was
immediately accretive to MVB's fourth quarter earnings.
MVB's net interest income was $3.9
million for the fourth 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.
Interest expense of $1.2 million
in the fourth quarter of 2012 was comparable to the fourth quarter
of 2011. Total interest income in the fourth quarter 2012 was
$4.6 million, an increase of
$631,000, or 16% compared to the
fourth quarter of 2011 due primarily to continued growth in loan
volume. Expenses increased by 40% primarily as a result of funding
and implementation of growth initiatives as well as costs related
to the acquisition of PMG.
For the full year 2012, net income reached $4.2 million, a 54% increase compared to the same
period in 2011. Loan growth in 2012 increased by 19% compared to
2011. MVB's total assets grew by 36% to $727
million in 2012. Deposits totaled $486.5 million for the twelve months of 2012, an
increase of $80.7 million since
December 31, 2011.
"We continue to surpass expectations with exceptional growth and
performance trends through 2012. MVB's fourth quarter performance
was exceptionally productive as our investment in quality growth
initiatives contributed to a stronger balance sheet despite a
sustained uncertain economic environment," said Larry F. Mazza, CEO of MVB Financial Corp.
"Effectively managing risk along with the implementation of key
growth initiatives - including the opening of an important new
branch in downtown Clarksburg, and
the opportunity to acquire PMG and enter the northern Virginia market – are key building blocks in
MVB's growth strategy," added Mazza.
Operating Performance Supported by Record, Quality
Lending
MVB's high quality loan portfolio continued to drive the bank's
asset growth in 2012 with a 19% increase, or $ 73 million addition in both commercial and
mortgage lending compared to 2011. Total capital increased by
$ 19.8 million, or 41.5%, since
December 31, 2011 driven mainly by a
private placement of shares of $13.7
million, MVB's earnings of $4.2
million for the twelve month period of 2012, and the
addition of $2 million in capital
from the PMG transaction.
MVB's nonperforming loan ratio is among the lowest in the
country compared to its 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 earning the 5-Star Superior Bank rating from
Bauer Financial, Inc. for the bank's safety, soundness and
financial strength.
During the fourth quarter, a semi-annual dividend was paid to
shareholders, with the full-year dividend payout representing a 40%
increase over the previous year.
Looking Ahead
Commenting on the outlook for MVB, CEO Larry Mazza said, "We anticipate that branch
development and geographic expansion will continue through 2013. We
are pleased with the results from our new Clarksburg branch since its opening last
November. Other branch openings set for this year include:
Sabraton to the north;
Martinsburg in the eastern part of
the state; and to the south, we anticipate opening a new market in
Charleston. Opening the new branch
in Charleston is subject to
regulatory approvals. This year we are re-introducing our 'high
return' cornerstone retail products – 'Most Valuable Checking' and
'Most Valuable Savings' – and adding new offerings and advanced
ways to serve clients who appreciate the value of a community bank
that listens."
"We believe that MVB continues to be well-positioned to seek
growth opportunities in our existing markets and to establish the
MVB brand in new areas. Supporting our internal growth effort is a
talented team of employees, including new additions to the
management group and staff. They are a core ingredient for
maintaining the highest level of client satisfaction and for our
overall growth plan," added 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, Berkeley and
Jefferson Counties in the Eastern
Panhandle of West Virginia, and
northern Virginia via the Potomac
Mortgage Group, a wholly-owned subsidiary of MVB Bank, Inc. 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 Statements
All statements other than statements of historical fact included
herein are, or may be deemed to be, forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21 E of the Securities Exchange Act of 1934. Such
information involves risks and uncertainties that could result in
MVB Financial Corp's (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 difficulty
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 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;
(xii) the reaction of the companies' customers, employees and
counterparties to the acquisition; (xiii) the integration of the
operations of MVB and PMG may be more difficult, costly or
time-consuming than expected; (xiv) diversion of management time on
acquisition-related issues; and, (xv) other factors which could
cause actual results to differ materially from future results
expressed or implied by such forward-looking statements.
Contacts
Lisa Wanstreet, Investor
Relations
304.367.8697
Aly Goodwin Gregg,
Media
304.285.0002
SOURCE MVB Financial Corp.