MVB Financial Corp. (the "Company") (NASDAQ: MVBF) today
reported net income of $26.6 million, or $2.22 and $2.16 basic and
diluted earnings per share, respectively, excluding discontinued
operations, for the year ended December 31, 2019. This represents a
125% increase over the prior year. For the quarter ended December
31, 2019, the Company reported net income of $4.1 million, or $0.34
and $0.32 basic and diluted earnings per share, respectively.
Quarterly
Year-to-Date
2019
2019
2018
2019
2018
Fourth Quarter
Third Quarter
Fourth Quarter
Net income from continuing operations
$
4,095
$
4,346
$
2,999
$
26,564
$
12,003
Net income (loss) from discontinued
operations
—
(19)
—
427
—
Net income
$
4,095
$
4,327
$
2,999
$
26,991
$
12,003
Earnings per share from continuing
operations - basic
$
0.34
$
0.36
$
0.25
$
2.22
$
1.04
Earnings per share from discontinued
operations - basic
—
—
—
0.04
—
Earnings per share - basic
$
0.34
$
0.36
$
0.25
$
2.26
$
1.04
Earnings per share from continuing
operations - diluted
$
0.32
$
0.35
$
0.24
$
2.16
$
1.00
Earnings per share from discontinued
operations - diluted
—
—
—
0.04
—
Earnings per share - diluted
$
0.32
$
0.35
$
0.24
$
2.20
$
1.00
MANAGEMENT OVERVIEW
“In 2019, MVB continued to effectively execute on our MVB 3.0
Strategy of seeking ‘blue ocean’ opportunities, an approach which
has been validated by our annual performance results. In 2019, we
set records for MVB in net income, noninterest-bearing deposit
growth and loan quality,” said Larry F. Mazza, President and CEO,
MVB Financial Corp. “The successful integration of Chartwell
Compliance, which MVB acquired in September 2019, has exceeded our
expectations as far as cooperation between our Team Members. We
will continue to leverage this competitive advantage that helps
reduce risk for our expanding Fintech vertical.”
As previously reported, on November 21, 2019, the Company
entered into a Purchase and Assumption Agreement with Summit
Community Bank, Inc., a subsidiary of Summit Financial Group, Inc.,
pursuant to which Summit will purchase certain assets and assume
certain liabilities of three MVB Bank branches in Berkeley County,
W.Va. and one MVB Bank branch in Jefferson County, W.Va. Summit has
agreed to assume certain deposit liabilities and to acquire certain
loans, as well as cash, real property, personal property, and other
fixed assets associated with the branches. Of the branches held for
sale, assets totaled $46.6 million and deposits totaled $188.3
million as of December 31, 2019.
As of December 31,
2019
(Dollars in thousands)
Balance to be retained by
MVB
Balance to be assumed by
Summit
Total
Commercial and non-residential real estate
loans
$
1,063,828
$
16,132
$
1,079,960
Residential real estate and home equity
loans
306,710
22,701
329,411
Consumer and other loans
3,697
4,083
7,780
Deferred loan origination fees and costs,
net
306
—
306
Total loans
1,374,541
42,916
1,417,457
Premises and equipment, net
21,974
3,638
25,612
Noninterest-bearing deposits
$
278,547
$
19,251
$
297,798
Interest-bearing deposits
986,495
169,019
1,155,514
Total deposits
1,265,042
188,270
1,453,312
Total noninterest-bearing deposits increased $22.8 million, or
8.3%, from September 30, 2019, and increased $84.2 million, or
39.4%, from December 31, 2018, to a balance of $297.8 million as of
December 31, 2019. The growth in total noninterest-bearing deposits
was primarily driven by MVB's continued strategic initiatives in
Fintech and specialty deposits. As of December 31, 2019, total
noninterest-bearing deposits were 20.5% of total deposits, compared
to 18.9% as of September 30, 2019, and 16.3% as of December 31,
2018.
MVB Mortgage had a record year and played a crucial role in
overall earnings growth with net income of $5.8 million for the
year ended December 31, 2019. From the year ended December 31,
2018, mortgage closed loan production volume increased $368.7
million, or 25.5%, and the volume of mortgage loans sold increased
$342.9 million, or 27.0%. As a result of the increases in
production and sold loan volume, mortgage fee income increased $8.7
million, or 26.9%. Even with the increase in volume, mortgage
processing expense decreased $510 thousand, or 14.4%, from the year
ended December 31, 2018. The decrease in mortgage processing
expense was due to increased efficiencies resulting from reduced
operating costs and overhead expenses.
FOURTH QUARTER 2019 HIGHLIGHTS
- Net interest margin continues to grow and was 3.52% for the
quarter ended December 31, 2019, an increase of 10 basis points
versus the quarter ended September 30, 2019. Net interest margin of
3.47% for the year ended December 31, 2019, increased 6 basis
points versus the year ended December 31, 2018.
- Loans, including loans at branches held for sale, of $1.4
billion as of December 31, 2019, increased $35.1 million, or 2.5%,
from September 30, 2019, and increased $113.1 million, or 8.7%,
from December 31, 2018.
- Nonperforming loans decreased $2.0 million during 2019, to
0.37% of total loans as of December 31, 2019, compared to 0.41% of
total loans as of September 30, 2019, and compared to 0.54% as of
December 31, 2018.
- Net interest income of $15.9 million for the quarter ended
December 31, 2019, increased $831 thousand, or 5.5%, from the
quarter ended September 30, 2019.
- Service charges on deposit accounts of $424 thousand for the
quarter ended December 31, 2019, increased $87 thousand, or 25.8%,
from the quarter ended September 30, 2019. Service charges on
deposit accounts of $1.4 million for the year ended December 31,
2019, increased $376 thousand, or 36.4%, from the year ended
December 31, 2018. These increases are a result of the Company's
execution on enhancing this revenue stream and Fintech
relationships.
LOANS
Loans, including loans at branches held for sale, totaled $1.4
billion as of December 31, 2019, an increase of $35.1 million, or
2.5%, from September 30, 2019, and an increase of $113.1 million,
or 8.7% from December 31, 2018. Total commercial loans have
increased $56.1 million, or 5.5%, from September 30, 2019, and
increased $138.9 million, or 14.8%, from December 31, 2018. The
year-over-year growth in loans is driven by strong growth in MVB’s
Northern Virginia market and consistent performance by the
commercial lending team. Residential portfolio mortgage and
construction loan sales totaled $24.4 million during the fourth
quarter of 2019 and $84.3 million for the full year 2019. The yield
on loans was 5.17% for the year ended December 31, 2019, an
increase of 23 basis points from the year ended December 31, 2018.
The yield on loans was 5.10% for the quarter ended December 31,
2019, a decrease of 6 basis points, from the quarter ended
September 30, 2019, and a decrease of 8 basis points, from the
quarter ended December 31, 2018.
Loans held for sale totaled $109.8 million as of December 31,
2019, a decrease of $50.2 million, or 31.4%, from September 30,
2019, and an increase of $34.0 million, or 44.8%, from December 31,
2018. Loans held for sale are down from a robust third quarter, but
up from 2018, and MVB Mortgage continues to see strong
performance.
DEPOSITS
Deposits, including deposits at branches held for sale, totaled
$1.5 billion as of December 31, 2019, a decrease of $3.1 million,
or 0.2%, from September 30, 2019, and an increase of $144.2
million, or 11.0%, from December 31, 2018. Noninterest-bearing
deposits, including noninterest-bearing deposits of branches held
for sale, totaled $297.8 million as of December 31, 2019, or 20.5%,
of the total deposit base, an increase of $22.8 million, or 8.3%,
from September 30, 2019, and an increase of $84.2 million, or
39.4%, from December 31, 2018. The fourth quarter decline in total
deposits was due, in part, to the seasonality in public funds,
which decreased $24.2 million.
NET INTEREST INCOME
Net interest income for the fourth quarter of 2019 was $15.9
million, an increase of $831 thousand, or 5.5%, from September 30,
2019. Net interest income of $59.4 million for the full year 2019
increased $7.3 million, or 14.1%, from the year ended December 31,
2018. Net interest margin of 3.52% for the quarter ended December
31, 2019, increased 10 basis points versus the quarter ended
September 30, 2019. Net interest margin of 3.47% for the year ended
December 31, 2019, increased 6 basis points from the year ended
December 31, 2018.
Interest income increased 0.9% during the fourth quarter of
2019, even with an 8-basis point decrease in the yield on earning
assets, compared to the quarter ended September 30, 2019. The
decrease in yield on earning assets compared to the quarter ended
September 30, 2019, was the result of a 5-basis point decrease in
the yield on commercial loans. Interest income increased 18.1%
during 2019, compared to the year ended December 31, 2018. The
increase in interest income was the result of a 23-basis point
increase in the yield on earning assets, which was the result of a
32-basis point increase in the yield on commercial loans.
Interest expense decreased 10.6% during the fourth quarter of
2019, compared to the quarter ended September 30, 2019, mainly the
result of a decrease of 20 basis points in the cost of
interest-bearing liabilities. The decrease in the cost of
interest-bearing liabilities compared to the quarter ended
September 30, 2019, was the result of a 19-basis point decrease in
the cost of CDs. Interest expense increased 29.7% for the year
ended December 31, 2019, compared to the same time period in 2018,
based on a 31-basis point increase in the cost of interest-bearing
liabilities. The increase in the cost of interest-bearing
liabilities compared to the year ended December 31, 2018, was the
result of a 55-basis point increase in the cost of money market
accounts, a 40-basis point increase in the cost of CDs, and a
33-basis point increase in the cost of FHLB and other
borrowings.
For the quarter ended December 31, 2019, compared to the quarter
ended September 20, 2019, the yield on earning assets decreased 8
basis points and the cost of interest-bearing liabilities decreased
20 basis points. The decrease in cost outpaced the decrease in
yield, which led to a 10-basis point increase in net interest
margin.
An increase in the Company’s average noninterest-bearing
balances of $25.4 million from the quarter ended September 30,
2019, helped to sustain a 35-basis point favorable spread on net
interest margin for the quarter ended December 31, 2019, compared
to a 37-basis point favorable spread for the quarter ended
September 30, 2019.
An increase in the Company's average noninterest-bearing
balances of $86.9 million from the year ended December 31, 2018,
helped to grow a 34-basis point favorable spread on net interest
margin for the year ended December 31, 2019, compared to a 20-basis
point favorable spread for the year ended December 31, 2018.
ASSET QUALITY
Asset quality remained strong in 2019. Nonperforming loans
decreased $2.0 million during 2019, to 0.37% of total loans as of
December 31, 2019, compared to 0.41% as of September 30, 2019, and
0.54% as of December 31, 2018. In addition, net charge-offs for
2019 decreased $427 thousand compared to 2018, resulting in a net
loan charge-offs to total loans ratio of 0.07% as of December 31,
2019, and 0.11% as of December 31, 2018.
Provision for loan losses was $232 thousand for the quarter
ended December 31, 2019, a decrease of $425 thousand, or 64.7%,
from the quarter ended September 30, 2019, and a decrease of $60
thousand, or 20.5%, from the quarter ended December 31, 2018.
Provision was $1.8 million for the full year ended December 31,
2019, a $651 thousand decrease from the same time period in
2018.
NONINTEREST INCOME
Noninterest income for the fourth quarter of 2019 was $14.8
million, an increase of $60 thousand, or 0.4%, from the quarter
ended September 30, 2019. Noninterest income of $64.6 million for
the full year 2019 increased $26.0 million, or 67.2%, from the year
ended December 31, 2018.
The increase from the quarter ended September 30, 2019, was the
result of an increase of $1.5 million in mortgage fee income, an
increase of $871 thousand in compliance consulting income, and an
increase of $242 thousand in the gain on sale of portfolio loans.
These increases were offset by a decrease of $2.5 million in the
gain on derivative. The increase in mortgage fee income was largely
the result of an increase of $34.0 million, or 7.3%, in the volume
of mortgage loans sold which was driven by a decrease in the
balance of mortgage loans held for sale of $50.2 million, or 31.4%.
The increase in compliance consulting income is a direct result of
the acquisition of Chartwell Compliance in the third quarter of
2019.
The year-over-year increase was primarily the result of an
increase of $13.2 million in the holding gain on equity securities
from a Fintech investment, an increase of $8.7 million in mortgage
fee income, an increase of $1.5 million on the gain on derivative,
and an increase of $1.2 million in commercial swap fee income. As
previously reported, the Company recognized a $13.6 million holding
gain on an equity investment in its Fintech portfolio during the
second quarter of 2019. The increase in mortgage fee income was
largely the result of an increase of $342.9 million, or 27.0%, in
the volume of mortgage loans sold which was driven by an increase
of $368.7 million, or 25.5%, in mortgage closed loan production
volume. The increase in the gain on derivatives was largely the
result of an increase of 23.39% in the locked mortgage pipeline
related to the derivative during the year ended December 31, 2019,
compared to a decrease of 3.15% in the locked mortgage pipeline
related to the derivative during the year ended December 31, 2018.
The increase in commercial swap fee income was largely the result
of an increase in swap volume from $38.5 million in 2018 to $58.3
million in 2019.
NONINTEREST EXPENSE
Noninterest expense for the fourth quarter of 2019 was $25.0
million, an increase of $1.6 million, or 6.9%, from the quarter
ended September 30, 2019. Noninterest expense for the full year
2019 was $87.2 million, an increase of $14.3 million, or 19.7%,
from the year ended December 31, 2018. Even with the year-over-year
increase in noninterest expense, the Company's efficiency ratio
decreased from 80.36%, at December 31, 2018, to 70.32%, at December
31, 2019.
The increase from the quarter ended September 30, 2019 was
mainly due to an increase of $658 thousand in professional fees, an
increase of $320 thousand in other operating expenses, an increase
of $307 thousand in travel expense, and an increase of $285
thousand in salaries and employee benefits. The increase in
professional fees is related to Fintech product and technology
development. The increase in salaries and employee benefits was
largely driven by an increase of $558 thousand related to
additional team members acquired as a result of the Chartwell
acquisition during the third quarter of 2019 and an increase of
$260 thousand related to the build-out of the Fintech team.
The year-over-year increase was primarily the result of an
increase of $10.0 million in salaries and employee benefits, an
increase of $1.4 million in professional fees, and an increase of
$1.3 million in travel expense. The increase in salaries and
employee benefits was largely driven by a $4.5 million increase
related to increased mortgage production, an increase of $2.0
million related to the build-out of other Company administration,
an increase of $1.4 million related to the build-out of the Fintech
team, an increase of $1.3 million related to increased incentive
and stock-based compensation, and an increase of $623 thousand
related to additional team members acquired as a result of the
Chartwell acquisition during the third quarter of 2019. The
increase in professional fees is related to special projects and
Fintech product and technology development. The increase in travel,
entertainment, dues, and subscriptions is primarily related to the
Fintech team.
DIVIDEND
As previously announced, on November 20, 2019, MVB issued its
fourth quarterly dividend for 2019 including a 40% increase
compared to the previous quarter dividend payout. The Company
declared a quarterly cash dividend of $0.07 per share payable on
December 15, 2019, to shareholders of record at the close of
business on December 1, 2019.
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.
MVB is a financial holding company headquartered in Fairmont,
W.Va. Through its subsidiary, MVB Bank, Inc., and the bank’s
subsidiaries, MVB Mortgage, MVB Community Development Corporation
and Chartwell Compliance, the company provides financial services
to individuals and corporate clients in the Mid-Atlantic region and
beyond. Chartwell Compliance is a specialty compliance firm
providing regulatory compliance and market entry facilitation for
firms entering into or expanding in North America within the
Fintech industry.
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 Earnings Release. These forward-looking statements
are based on current expectations about the future and subject to
risks and uncertainties. Forward-looking statements include
information concerning possible or assumed future results of
operations of the Company and its subsidiaries. When words such as
“believes,” “expects,” “anticipates,” “may,” or similar expressions
occur in this Earnings 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 Earnings Release. Those factors
include, but are not limited to credit risk, changes in market
interest rates, inability to achieve merger-related synergies,
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.
Accounting standards require the consideration of subsequent
events occurring after the balance sheet date for matters that
require adjustment to, or disclosure in, the consolidated financial
statements. The review period for subsequent events extends up to
and including the filing date of a public company’s financial
statements when filed with the Securities and Exchange Commission.
Accordingly, the consolidated financial information in this
announcement is subject to change.
Questions or comments concerning this Earnings Release should be
directed to:
MVB Financial Corp. Donald T. Robinson, Executive Vice
President and CFO (304) 598-3500 drobinson@mvbbanking.com
MVB Financial Corp.
Financial Highlights
Condensed Consolidated
Statements of Income
(Unaudited) (Dollars in
thousands, except per share data)
Quarterly
Year-to-Date
2019
2019
2018
2019
2018
Fourth Quarter
Third Quarter
Fourth Quarter
Interest income
$
21,230
$
21,038
$
19,586
$
82,361
$
69,760
Interest expense
5,365
6,004
5,176
22,961
17,706
Net interest income
15,865
15,034
14,410
59,400
52,054
Provision for loan losses
232
657
292
1,789
2,440
Net interest income after provision for
loan losses
15,633
14,377
14,118
57,611
49,614
Noninterest income:
Mortgage fee income
13,015
11,496
7,703
41,045
32,337
Other income
1,741
3,200
592
23,559
6,303
Total noninterest income
14,756
14,696
8,295
64,604
38,640
Noninterest expense:
Salaries and employee benefits
15,723
15,438
11,737
56,175
46,224
Other expense
9,260
7,942
6,736
31,026
26,654
Total noninterest expenses
24,983
23,380
18,473
87,201
72,878
Income from continuing operations, before
income taxes
5,406
5,693
3,940
35,014
15,376
Income tax expense - continuing
operations
1,311
1,347
941
8,450
3,373
Net income from continuing operations
4,095
4,346
2,999
26,564
12,003
Income (loss) from discontinued
operations, before income taxes
—
(25
)
—
575
—
Income tax expense (benefit) -
discontinued operations
—
(6
)
—
148
—
Net income (loss) from discontinued
operations
—
(19
)
—
427
—
Net income
$
4,095
$
4,327
$
2,999
$
26,991
$
12,003
Preferred dividends
115
121
123
479
489
Net income available to common
shareholders
$
3,980
$
4,206
$
2,876
$
26,512
$
11,514
Earnings per share from continuing
operations - basic
$
0.34
$
0.36
$
0.25
$
2.22
$
1.04
Earnings per share from discontinued
operations - basic
—
—
—
0.04
—
Earnings per share - basic
$
0.34
$
0.36
$
0.25
$
2.26
$
1.04
Earnings per share from continuing
operations - diluted
$
0.32
$
0.35
$
0.24
$
2.16
$
1.00
Earnings per share from discontinued
operations - diluted
—
—
—
0.04
—
Earnings per share - diluted
$
0.32
$
0.35
$
0.24
$
2.20
$
1.00
Condensed Consolidated Balance
Sheets
(Unaudited) (Dollars in
thousands)
December 31, 2019
September 30, 2019
December 31, 2018
Cash and cash equivalents
28,002
36,568
22,221
Certificates of deposit with other
banks
12,549
13,541
14,778
Securities available-for-sale, at fair
value
235,821
226,064
221,614
Equity securities
18,514
18,414
9,599
Loans held for sale
109,788
159,961
75,807
Loans
1,374,541
1,382,375
1,304,366
Less: Allowance for loan losses
(11,775
)
(11,874
)
(10,939
)
Net loans
1,362,766
1,370,501
1,293,427
Premises and equipment, net
21,974
25,446
26,545
Assets of branches held for sale
46,554
—
—
Goodwill
19,630
19,630
18,480
Other assets
88,516
91,827
68,498
Total assets
1,944,114
1,961,952
1,750,969
Noninterest-bearing deposits
$
278,547
$
274,970
$
213,597
Interest-bearing deposits
986,495
1,181,434
1,095,557
Deposits of branches held for sale
188,270
—
—
Borrowed funds
222,885
241,641
214,887
Other liabilities
55,981
57,667
50,155
Stockholders' equity
211,936
206,240
176,773
Total liabilities and stockholders'
equity
$
1,944,114
$
1,961,952
$
1,750,969
Reportable Segments
(Unaudited)
Twelve Months Ended December 31,
2019
Commercial & Retail
Banking
Mortgage Banking
Financial Holding
Company
Intercompany
Eliminations
Consolidated
(Dollars in thousands)
Interest income
$
75,874
$
8,342
$
13
$
(1,868
)
$
82,361
Interest expense
18,698
6,014
769
(2,520
)
22,961
Net interest income
57,176
2,328
(756
)
652
59,400
Provision for loan losses
1,622
167
—
—
1,789
Net interest income after provision for
loan losses
55,554
2,161
(756
)
652
57,611
Noninterest Income:
Mortgage fee income
657
41,040
—
(652
)
41,045
Other income
23,033
1,289
6,268
(7,031
)
23,559
Total noninterest income
23,690
42,329
6,268
(7,683
)
64,604
Noninterest Expenses:
Salaries and employee benefits
19,067
28,432
8,676
—
56,175
Other expense
25,070
8,136
4,851
(7,031
)
31,026
Total noninterest expenses
44,137
36,568
13,527
(7,031
)
87,201
Income (loss) from continuing operations,
before income taxes
35,107
7,922
(8,015
)
—
35,014
Income tax expense (benefit) - continuing
operations
8,175
2,155
(1,880
)
—
8,450
Net income (loss) from continuing
operations
26,932
5,767
(6,135
)
—
26,564
Income from discontinued operations
—
—
575
—
575
Income tax expense - discontinued
operations
—
—
148
—
148
Net income from discontinued
operations
—
—
427
—
427
Net income (loss)
$
26,932
$
5,767
$
(5,708
)
$
—
$
26,991
Preferred stock dividends
—
—
479
—
479
Net income (loss) available to common
shareholders
$
26,932
$
5,767
$
(6,187
)
$
—
$
26,512
Reportable Segments
(Unaudited)
Twelve Months Ended December 31,
2018
Commercial & Retail
Banking
Mortgage Banking
Financial Holding
Company
Intercompany
Eliminations
Consolidated
(Dollars in thousands)
Interest income
$
63,762
$
6,667
$
5
$
(674
)
$
69,760
Interest expense
13,667
4,085
1,756
(1,802
)
17,706
Net interest income
50,095
2,582
(1,751
)
1,128
52,054
Provision for loan losses
2,386
54
—
—
2,440
Net interest income after provision for
loan losses
47,709
2,528
(1,751
)
1,128
49,614
Noninterest Income:
Mortgage fee income
585
32,880
—
(1,128
)
32,337
Other income
6,479
(243
)
6,411
(6,344
)
6,303
Total noninterest income
7,064
32,637
6,411
(7,472
)
38,640
Noninterest Expenses:
Salaries and employee benefits
14,924
23,927
7,373
—
46,224
Other expense
20,081
8,608
4,309
(6,344
)
26,654
Total noninterest expenses
35,005
32,535
11,682
(6,344
)
72,878
Income (loss) before income taxes
19,768
2,630
(7,022
)
—
15,376
Income tax expense (benefit)
4,265
677
(1,569
)
—
3,373
Net income (loss)
$
15,503
$
1,953
$
(5,453
)
$
—
$
12,003
Preferred stock dividends
—
—
489
—
489
Net income (loss) available to common
shareholders
$
15,503
$
1,953
$
(5,942
)
$
—
$
11,514
Average Balances and Interest
Rates
(Unaudited) (Dollars in
thousands)
Three Months Ended
December 31, 2019
Three Months Ended
September 30, 2019
Three Months Ended
December 31, 2018
Average Balance
Interest Income/
Expense
Yield/ Cost
Average Balance
Interest Income/
Expense
Yield/ Cost
Average Balance
Interest Income/
Expense
Yield/ Cost
Assets
Interest-bearing deposits in banks
$
10,332
$
46
1.77
%
$
9,562
$
61
2.53
%
$
8,123
$
45
2.17
%
CDs with other banks
12,908
64
1.97
14,143
71
1.99
14,778
74
1.99
Investment securities:
Taxable
134,990
719
2.11
122,648
689
2.23
146,488
924
2.50
Tax-exempt
111,262
910
3.24
109,324
879
3.19
79,906
723
3.59
Loans and loans held for sale: 1
Commercial
1,029,592
13,830
5.33
1,002,595
13,599
5.38
924,547
12,518
5.37
Tax exempt
11,709
106
3.59
11,229
100
3.53
14,454
128
3.51
Real estate
467,633
5,425
4.60
464,769
5,490
4.69
415,502
5,039
4.81
Consumer
8,148
130
6.33
8,612
149
6.86
10,215
135
5.24
Total loans
1,517,082
19,491
5.10
1,487,205
19,338
5.16
1,364,718
17,820
5.18
Total earning assets
1,786,574
21,230
4.71
1,742,882
21,038
4.79
1,614,013
19,586
4.81
Less: Allowance for loan losses
(11,747
)
(11,232
)
(11,268
)
Cash and due from banks
20,014
18,366
16,515
Other assets
136,650
134,871
109,146
Total assets
$
1,931,491
$
1,884,887
$
1,728,406
Liabilities
Deposits:
NOW
$
417,838
$
1,076
1.02
$
384,977
$
942
0.97
$
414,997
$
865
0.83
Money market checking
366,402
1,424
1.54
333,849
1,391
1.65
261,928
852
1.29
Savings
36,120
1
0.01
37,335
1
0.01
40,494
1
0.01
IRAs
16,786
81
1.91
17,342
84
1.92
17,937
78
1.73
CDs
341,270
1,733
2.01
366,749
2,035
2.20
384,540
1,902
1.96
Repurchase agreements and federal funds
sold
9,733
11
0.45
9,493
12
0.50
15,573
6
0.15
FHLB and other borrowings
193,487
997
2.04
212,102
1,383
2.59
173,110
1,150
2.64
Subordinated debt
4,124
42
4.04
9,535
156
6.49
17,861
322
7.15
Total interest-bearing liabilities
1,385,760
5,365
1.54
1,371,382
6,004
1.74
1,326,440
5,176
1.55
Noninterest bearing demand deposits
296,651
271,294
217,527
Other liabilities
41,244
38,618
11,903
Total liabilities
1,723,655
1,681,294
1,555,870
Stockholders’ equity
Preferred stock
7,334
7,644
7,834
Common stock
11,920
11,773
11,633
Paid-in capital
121,549
119,166
116,254
Treasury stock
(1,084
)
(1,084
)
(1,084
)
Retained earnings
70,570
67,312
46,852
Accumulated other comprehensive income
(2,453
)
(1,218
)
(8,953
)
Total stockholders’ equity
207,836
203,593
172,536
Total liabilities and stockholders’
equity
$
1,931,491
$
1,884,887
$
1,728,406
Net interest spread
3.17
3.05
3.26
Net interest income-margin
$
15,865
3.52
%
$
15,034
3.42
%
$
14,410
3.54
%
1 Non-accrual loans are included in total
loan balances, lowering the effective yield for the portfolio in
the aggregate.
Average Balances and Interest
Rates
(Unaudited) (Dollars in
thousands)
Twelve Months Ended
December 31, 2019
Twelve Months Ended
December 31, 2018
Twelve Months Ended
December 31, 2017
(Dollars in thousands)
Average Balance
Interest Income/
Expense
Yield/ Cost
Average Balance
Interest Income/
Expense
Yield/ Cost
Average Balance
Interest Income/
Expense
Yield/ Cost
Assets
Interest-bearing deposits in banks
$
9,264
$
209
2.26
%
$
5,176
$
108
2.09
%
$
3,790
$
52
1.37
%
CDs with other banks
14,097
280
1.99
14,778
295
2.00
14,619
288
1.97
Investment securities:
Taxable
129,486
3,055
2.36
150,134
3,580
2.38
125,797
2,658
2.11
Tax-exempt
103,235
3,520
3.41
79,161
2,810
3.55
58,786
1,863
3.17
Loans and loans held for sale: 1
Commercial
987,674
53,087
5.37
854,108
43,099
5.05
751,444
33,896
4.51
Tax exempt
12,549
443
3.53
14,352
499
3.48
15,064
520
3.45
Real estate
447,891
21,220
4.74
395,302
18,794
4.75
373,360
16,612
4.45
Consumer
8,948
547
6.11
11,349
575
5.07
13,660
709
5.19
Total loans
1,457,062
75,297
5.17
1,275,111
62,967
4.94
1,153,528
51,737
4.49
Total earning assets
1,713,144
82,361
4.81
1,524,360
69,760
4.58
1,356,520
56,598
4.17
Less: Allowance for loan losses
(11,318
)
(10,530
)
(9,626
)
Cash and due from banks
17,625
16,828
16,287
Other assets
131,370
106,600
90,585
Total assets
$
1,850,821
$
1,637,258
$
1,453,766
Liabilities
Deposits:
NOW
$
381,092
$
3,586
0.94
%
$
432,789
$
3,246
0.75
%
$
438,123
$
2,608
0.60
%
Money market checking
331,636
5,144
1.55
245,008
2,455
1.00
239,632
1,781
0.74
Savings
38,324
4
0.01
44,049
29
0.07
47,034
78
0.17
IRAs
17,415
329
1.89
17,894
285
1.59
16,678
217
1.30
CDs
387,660
8,376
2.16
319,720
5,620
1.76
262,417
3,610
1.38
Repurchase agreements and federal funds
sold
11,252
48
0.43
18,536
56
0.30
23,559
75
0.32
FHLB and other borrowings
183,812
4,704
2.56
190,686
4,259
2.23
122,144
1,690
1.38
Subordinated debt
12,124
770
6.35
25,774
1,756
6.81
33,524
2,242
6.69
Total interest-bearing liabilities
1,363,315
22,961
1.68
1,294,456
17,706
1.37
1,183,111
12,301
1.04
Noninterest bearing demand deposits
258,546
171,631
117,696
Other liabilities
33,810
10,304
8,006
Total liabilities
1,655,671
1,476,391
1,308,813
Stockholders’ equity
Preferred stock
7,660
7,834
7,927
Common stock
11,762
11,082
10,355
Paid-in capital
118,837
107,669
96,987
Treasury stock
(1,084
)
(1,084
)
(1,084
)
Retained earnings
61,712
42,509
34,155
Accumulated other comprehensive income
(3,737
)
(7,143
)
(3,387
)
Total stockholders’ equity
195,150
160,867
144,953
Total liabilities and stockholders’
equity
$
1,850,821
$
1,637,258
$
1,453,766
Net interest spread
3.13
3.21
3.13
Net interest income-margin
$
59,400
3.47
%
$
52,054
3.41
%
$
44,297
3.27
%
1 Non-accrual loans are included in total
loan balances, lowering the effective yield for the portfolio in
the aggregate.
Selected Financial
Data
(Unaudited) (Dollars in
thousands, except per share data)
Quarterly
Year-to-Date
2019
2019
2018
2019
2018
Fourth Quarter
Third Quarter
Fourth Quarter
Earnings and Per Share Data:
Net income from continuing operations
$
4,095
$
4,346
$
2,999
$
26,564
$
12,003
Net income from discontinued
operations
—
(19
)
—
427
—
Net income
4,095
4,327
2,999
26,991
12,003
Net income available to common
shareholders
3,980
4,206
2,876
26,512
11,514
Earnings per share from continuing
operations - basic
0.34
0.36
0.25
2.22
1.04
Earnings per share from discontinued
operations - basic
—
—
—
0.04
—
Earnings per share - basic
0.34
0.36
0.25
2.26
1.04
Earnings per share from continuing
operations - basic
0.32
0.35
0.24
2.16
1.00
Earnings per share from discontinued
operations - diluted
—
—
—
0.04
—
Earnings per share - diluted
0.32
0.35
0.24
2.20
1.00
Cash dividends paid per common share
0.070
0.050
0.030
0.195
0.110
Book value per common share
17.13
16.84
14.55
17.13
14.55
Tangible book value per common share
15.20
14.87
12.92
15.20
12.92
Weighted average shares outstanding -
basic
11,869,091
11,731,774
11,582,378
11,713,885
11,030,984
Weighted average shares outstanding -
diluted
12,334,423
12,098,335
12,772,222
12,044,667
12,722,003
Performance Ratios:
Return on average assets - continuing
operations 1
0.85
%
0.92
%
0.69
%
1.44
%
0.73
%
Return on average assets - discontinued
operations 1
—
%
—
%
—
%
0.02
%
—
%
Return on average assets 1
0.85
%
0.92
%
0.69
%
1.46
%
0.73
%
Return on average equity - continuing
operations 1
7.88
%
8.54
%
6.95
%
13.61
%
7.46
%
Return on average equity - discontinued
operations 1
—
%
(0.04
)
%
—
%
0.22
%
—
%
Return on average equity 1
7.88
%
8.50
%
6.95
%
13.83
%
7.46
%
Net interest margin 2
3.52
%
3.42
%
3.54
%
3.47
%
3.41
%
Efficiency ratio 3
81.59
%
78.64
%
81.36
%
70.32
%
80.36
%
Overhead ratio 1 4
5.17
%
4.96
%
4.28
%
4.71
%
4.45
%
Equity to assets
10.90
%
10.51
%
10.10
%
10.90
%
10.10
%
Asset Quality Data and Ratios:
Charge-offs
$
332
$
—
$
801
$
1,008
$
1,480
Recoveries
1
49
9
55
101
Net loan charge-offs to total loans 1
5
0.10
%
(0.01
)
%
0.24
%
0.07
%
0.11
%
Allowance for loan losses
11,775
11,874
10,939
11,775
10,939
Allowance for loan losses to total loans
6
0.86
%
0.86
%
0.84
%
0.86
%
0.84
%
Nonperforming loans
5,123
5,627
7,103
5,123
7,103
Nonperforming loans to total loans
0.37
%
0.41
%
0.54
%
0.37
%
0.54
%
Mortgage Data:
Locked pipeline
$
150,960
$
247,339
$
125,545
$
150,960
$
125,545
Sold loan volume
$
499,577
$
465,581
$
318,018
$
1,614,318
$
1,271,417
Sold loan refinance volume
$
297,391
$
192,868
$
76,868
$
678,211
$
345,908
1 annualized for the quarterly periods
presented 2 net interest income as a percentage of average interest
earning assets 3 noninterest expense as a percentage of net
interest income and noninterest income 4 noninterest expense as a
percentage of average assets 5 charge-offs less recoveries 6
excludes loans held for sale
Non-GAAP Reconciliation:
Tangible Book Value per Common Share
Quarterly
Year-to-Date
2019
2019
2018
2019
2018
(Dollars in thousands)
Fourth Quarter
Third Quarter
Fourth Quarter
Goodwill
$
19,630
$
19,630
$
18,480
$
19,630
$
18,480
Intangibles
3,473
3,649
550
3,473
550
Total intangibles
23,103
23,279
19,030
23,103
19,030
Total Equity
211,936
206,240
176,773
211,936
176,773
Less: Preferred equity
(7,334
)
(7,334
)
(7,834
)
(7,334
)
(7,834
)
Less: Total intangibles
(23,103
)
(23,279
)
(19,030
)
(23,103
)
(19,030
)
Tangible common equity
181,499
175,627
149,909
181,499
149,909
Tangible common equity
181,499
175,627
149,909
181,499
149,909
Common shares outstanding (000s)
11,944
11,814
11,607
11,944
11,607
Tangible book value per common share
($)
$
15.20
$
14.87
$
12.92
$
15.20
$
12.92
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200220005250/en/
Amy Baker VP, Corporate Communications & Marketing
abaker@mvbbanking.com 844-682-2265
Grafico Azioni MVB Financial (NASDAQ:MVBF)
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Grafico Azioni MVB Financial (NASDAQ:MVBF)
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