FAIRMONT, W.Va., Nov. 12, 2013 /PRNewswire/ -- MVB Financial
Corp., (OTC Markets Group OTCQB: MVBF), and its subsidiary bank,
MVB Bank, Inc., (MVB), today announced quarterly results for the
period ending September 30, 2013. Net
income for the nine month period in 2013 was $3.43 million, an increase of 26 percent compared
to the same period of 2012.
The continued strong performance in the 2013 third quarter is
due primarily to overall growth in deposits, loans and total assets
compared to the 2012 third quarter and the second quarter of 2013.
During the third quarter, MVB continued to pursue and act upon
strategic investment opportunities aimed at long term growth in the
retail and commercial markets.
Total deposits of $620 million
during the first three quarters of 2013 reflect a 35.5 percent
increase compared to the same period of 2012.
During the third quarter, MVB reduced the ownership percentage,
from 50 percent to 25 percent, of a mortgage loan processing
entity, Lender Service Provider, LLC ("LSP"), that was acquired
with subsidiary, Potomac Mortgage Group, which now does business as
MVB Mortgage, with the addition of two new members to LSP. This
transaction will reduce MVB's on-going mortgage processing costs by
adding additional volume to the LSP mortgage processing entity and
also witnessed MVB recognizing revenue on the sale of the
membership interest.
MVB's net interest income for the third quarter of 2013 was
$4.7 million, or an increase of 7.3
percent over the same period in 2012. Total loans for the nine
month period in 2013 grew by $76
million, or an increase of 17 percent, compared to the end
of September 2012. Expenses increased
commensurately in the third quarter this year compared to a year
ago due to organic and acquired growth, as well as for expenses
related to strategic acquisition activity and the previously
referenced equity sale related to the loan processing entity.
MVB's nonperforming loan ratio remains among the lowest in the
country. In fact, MVB Bank has consistently 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.
Organic growth plans for MVB Bank are on track, including a new
branch location in the Fairmont, West
Virginia market and an expanded presence in Charleston, West Virginia. MVB Mortgage
continues to generate positive results despite the sharp increase
in mortgage rates. MVB Insurance is rapidly building a
presence in its markets and will be an important source for
generating non-interest revenues.
"While our third quarter results are strong, we remain focused
on sustainable growth opportunities and profitability with regard
to strategic investments as well as expense control opportunities,"
said Larry F. Mazza, CEO, MVB
Financial Corp. "We continue to manage our growth and look forward
to integrating a new market into MVB and to continue to analyze
every aspect of our operations and test out strategic assumptions
to ensure our 'growth with quality' strategy," added Mazza.
Notably, building on this strategy, in the fourth quarter MVB
recently announced an asset purchase of CFG Community Bank that
will strengthen MVB Bank's presence in the Washington/Baltimore metropolitan region, by
adding three new bank locations in metro-Baltimore, Md., thus leveraging MVB's
footprint in Northern Virginia and
the Eastern Panhandle of West Virginia. This transaction,
which is subject to regulatory approval prior to closing, is
expected to be immediately accretive to MVB earnings.
About MVB Financial Corp.
MVB Financial Corp. ("MVB" or "MVB Financial"; OTCQB: MVBF) was
formed on January 1, 2004 as a bank
holding company and, effective December 19,
2012, elected to become a financial holding company. MVB
Financial features multiple subsidiaries and affiliated businesses,
including MVB Bank, Inc. ( "MVB Bank"), Potomac Mortgage Group,
Inc. ("PMG" or "MVB Mortgage"), and MVB Insurance, LLC ("MVB
Insurance"). The Company's principal executive offices are located
at 301 Virginia Avenue, Fairmont,
W.Va., 26554-2777, and its telephone number is (304)
363-4800. For additional information regarding MVBF visit
ir.mvbbanking.com.
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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
the actual results of MVB Financial Corp. ("MVB Financial" or the
"Company") 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 of certain assets and assumption
of certain liabilities of CFG Community Bank 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 Bank, Inc. ("MVB Bank")
and CFG Community Bank operate; (xii) the reaction of the MVB Bank
and CFG Community Bank customers, employees and counterparties to
the acquisition and integration; (xiii) the integration of the
operations of MVB Bank and CFG Community Bank may be more
difficult, costly or time-consuming than expected; (xiv) the risk
that the new investments to support the growth of MVB Insurance,
LLC ("MVB Insurance") may not be fully realized or may take longer
than expected due to general economic and market conditions; (xv)
diversion of management time on acquisition or diversified growth
issues; and, (xvi) 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.