MVB Announces $13.5 Million Gain from Fintech Investment Portfolio
29 Aprile 2019 - 10:05PM
Business Wire
Portion of Gain to Be Utilized for the
Continued Build Out of MVB’s Fintech Vertical
MVB Financial Corp. (“MVB” or the “Company”) (Nasdaq: MVBF), the
holding company for MVB Bank, Inc., and the Bank’s subsidiaries,
continues to implement its MVB 3.0 strategy of seeking “blue ocean”
opportunities, including partnership with fintech companies.
MVB continues to carve a niche in the fintech industry by making
strategic investments in fintech companies. To date, MVB has
invested a total of $3.1 million in various fintech companies.
After a recent valuation of MVB’s fintech investment portfolio, MVB
intends to recognize a pre-tax gain on its equity investment of
$13.5 million that will be recognized in the Second Quarter of
2019. MVB’s fintech investment portfolio is now valued at
approximately $17.3 million. Over the past three years, MVB has had
a 458% gain in value.
To leverage this growth, MVB plans to utilize a portion of the
gain into additional investments, new hires, technology and related
costs to further build out its fintech vertical. MVB also plans to
utilize the gain to retire the remaining subordinated debt that is
outstanding as of July 1, 2019.
“MVB’s fintech vertical hit a tipping point during 2018 and is
positively impacting our balance sheet and income statement. At
MVB, we are leveraging technology, creativity and innovation to
modernize as we move from the old model of banking to the new. We
welcome disruptors and actually embrace them and invest in them,”
said Larry F. Mazza, President and CEO, MVB Financial Corp.
“MVB strives to be a trusted partner and thus a preferred bank
of the fintech industry, a strategy that has brought significant
shareholder value. This is an example of our model going beyond
traditional banking and leveraging the disruption occurring in the
financial services industry to the benefit of MVB
shareholders.”
About MVB Financial Corp.
MVB Financial Corp. (“MVB Financial” or “MVB”), the holding
company of MVB Bank, is publicly traded on The Nasdaq Capital
Market® under the ticker “MVBF.” Nasdaq is a leading global
provider of trading, clearing, exchange technology, listing,
information and public company services. Through its subsidiary,
MVB Bank, Inc., and the bank’s subsidiaries, MVB Mortgage and MVB
Community Development Corporation, the company provides financial
services to individuals and corporate clients in the Mid-Atlantic
region. For more information about MVB, 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,
without limitation, information concerning possible or assumed
future results of operations of the Company and its subsidiaries,
as well as statements regarding MVB’s intent to recognize a holding
gain on its equity investment in fintech companies and the
anticipated use of the proceeds from such gains, as well as MVB’s
future plans with regard to its fintech line of business. When
words such as “plans,” “believes,” “expects,” “anticipates,”
“continues,” “may” or similar expressions occur in this Press
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 Press
Release. Those factors include, but are not limited to: credit
risk; changes in market interest rates; revaluation of equity
investments, including MVB’s investments in fintech companies;
inability to further scale up the fintech line of business;
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 December 31, 2018, as
well as its other filings with the SEC, which are available on the
SEC website at www.sec.gov. Except as required by law, the Company
undertakes no obligation to update or revise any forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20190429005703/en/
Amy BakerVP, Corporate Communications and MarketingMVB
Bankabaker@mvbbanking.com844-682-2265
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