MVB Financial Corp. Reports First Quarter 2019 Earnings, Continues Strong Organic Growth in Loans and Deposits

FAIRMONT, W.Va.--()--MVB Financial Corp. (the “Company”) (NASDAQ: MVBF) reported net income of $3.2 million, or $0.26 basic and diluted earnings per share for the three months ended March 31, 2019, an increase of 6.4% compared to $3.0 million, or $0.25 basic and $0.24 diluted earnings per share for the three months ended December 31, 2018, and an increase of 23.1% compared to $2.6 million, or $0.24 basic and $0.23 diluted earnings per share, for the three months ended March 31, 2018.

Noninterest-bearing deposits increased $22.5 million, or 10.5%, from December 31, 2018, and increased $93.3 million, or 65.3%, from March 31, 2018, to a balance of $236.1 million as of March 31, 2019. The growth in noninterest-bearing deposits was primarily driven by MVB’s strategy to focus on Fintech and specialty deposits. As of March 31, 2019, noninterest-bearing deposits were 16.5% of total deposits, compared to 16.3% as of December 31, 2018, and 12.4% as of March 31, 2018.

For the three months ended March 31, 2019, loans increased $36.9 million, or 2.8%, to $1.3 billion, from December 31, 2018, which represents an annualized increase of 11.3%. The increase in loans has been driven by strong growth in MVB’s West Virginia markets and expansion in Northern Virginia. In addition to the increase in loan volume during the quarter, loan yields increased 2 basis points.

MANAGEMENT OVERVIEW

“We are very pleased with First Quarter 2019 performance results, which continued strong organic growth in loans and deposits, especially noninterest-bearing deposits. MVB has focused on our true financial north star, which is earnings per share (EPS) driven by three major factors: net interest margin (NIM), noninterest income (NII) and noninterest expense (NIE),” said Larry F. Mazza, CEO and President, MVB Financial. “Although it is said that ‘culture eats strategy for breakfast,’ we believe that both are necessary ingredients for success. MVB’s corporate culture and our MVB 3.0 strategy provide a strong foundation for the future and enable us to help our trusted partners, including our shareholders, customers, team members and communities, succeed.”

FIRST QUARTER 2019 HIGHLIGHTS

  • Loans of $1.3 billion as of March 31, 2019, increased $36.9 million, or 2.8%, from December 31, 2018, and increased $184.0 million, or 15.9%, from March 31, 2018.
  • Assets of $1.8 billion as of March 31, 2019, increased $38.9 million, or 2.2%, from December 31, 2018, and increased $208.4 million, or 13.2%, from March 31, 2018.
  • Deposits of $1.4 billion as of March 31, 2019, increased $121.5 million, or 9.3%, from December 31, 2018, and increased $276.8 million, or 24.0% from March 31, 2018. Noninterest-bearing deposits of $236.1 million as of March 31, 2019, increased $22.5 million, or 10.5%, from December 31, 2018, and increased $93.3 million, or 65.3%, from March 31, 2018.
  • Net interest income of $14.0 million for the quarter ended March 31, 2019, decreased $438 thousand, or 3.0%, from the quarter ended December 31, 2018, and increased $2.5 million, or 21.9% from the quarter ended March 31, 2018. Net interest margin of 3.45% for the quarter ended March 31, 2019, decreased 9 basis points versus the quarter ended December 31, 2018, and increased 16 basis points versus the quarter ended March 31, 2018.
  • Noninterest income of $8.8 million for the quarter ended March 31, 2019, increased $470 thousand, or 5.7%, from the quarter ended December 31, 2018, and decreased $274 thousand, or 3.0%, from the quarter ended March 31, 2018.
  • Noninterest expense of $18.4 million for the quarter ended March 31, 2019, decreased $25 thousand, or 0.1%, from the quarter ended December 31, 2018, and increased $1.7 million, or 10.2%, from the quarter ended March 31, 2018.

LOANS

Loans totaled $1.3 billion as of March 31, 2019, an increase of $36.9 million, or 2.8%, from December 31, 2018, and an increase of $184.0 million, or 15.9%, from March 31, 2018. The growth in loans is attributable to organic growth and the addition of commercial lenders within the Company’s primary lending areas. The yield on loans was 5.20% as of the quarter ended March 31, 2019, an increase of 2 basis points from the quarter ended December 31, 2018, and an increase of 52 basis points from the quarter ended March 31, 2018. The increase in yields is driven both by Fed rate increases and a focus on commercial loans to increase loan yields.

DEPOSITS

Deposits totaled $1.4 billion as of March 31, 2019, and increased $121.5 million, or 9.3%, from December 31, 2018, while increasing $276.8 million, or 24.0%, from March 31, 2018. Noninterest-bearing deposits totaled $236.1 million as of March 31, 2019, or 16.5%, of the total deposit base, an increase of $22.5 million, or 10.5%, from December 31, 2018, and an increase of $93.3 million, or 65.3%, from March 31, 2018. Noninterest-bearing deposits remain a core funding source for the Company. Of the $236.1 million in noninterest-bearing deposits, balances of $62.9 million are related to Fintech opportunities and balances of $33.4 million are related to Title business opportunities. Total Fintech deposits are $75.7 million and total Title business deposits are $49.6 million as of March 31, 2019.

NET INTEREST INCOME

Net interest income for the quarter ended March 31, 2019, was $14.0 million, a decrease of $438 thousand, or 3.0%, from the quarter ended December 31, 2018, and an increase of $2.5 million, or 21.9%, from the quarter ended March 31, 2018. Net interest margin for the quarter ended March 31, 2019 was 3.45%, a decrease of 9 basis points versus the quarter ended December 31, 2018, and an increase of 16 basis points versus the quarter ended March 31, 2018. A decrease of $279 thousand in loan fees for the quarter ended March 31, 2019 versus the quarter ended December 31, 2018 caused an approximate 8 basis point decrease in loan yield and 7 basis point decrease in net interest margin. The remaining difference is due to the higher cost of deposits driven by the timing of acquiring and onboarding Fintech deposits.

Interest income increased 0.2% during the quarter ended March 31, 2019, compared to the quarter ended December 31, 2018, due to an increase of 4 basis points in the yield on earning assets, and increased 30.4% compared to the quarter ended March 31, 2018, due to an increase of 53 basis points in the yield on earning assets. The increase in the yield on earning assets compared to the quarter ended December 31, 2018, was the result of a 6-basis point increase in real estate loans and a 5-basis point increase in taxable investment securities. The increase in the yield on earning assets compared to the quarter ended March 31, 2018, was the result of a 69-basis point increase in commercial loans.

Interest expense increased 9.2% during the quarter ended March 31, 2019, compared to the quarter ended December 31, 2018, due to an increase of 15 basis points in the cost of interest-bearing liabilities, and increased 57.5% compared to the quarter ended March 31, 2018, due to an increase of 52 basis points in the cost of interest-bearing liabilities. The increase in the cost of interest-bearing liabilities compared to the quarter ended December 31, 2018, was the result of a 13-basis point increase in money market checking, a 19-basis point increase in CDs and a 20-basis point increase in FHLB and other borrowings. The increase in the cost of interest-bearing liabilities compared to the quarter ended March 31, 2018, was the result of a 68-basis point increase in money market checking, a 63-basis point increase in CDs and a 103-basis point increase in FHLB and other borrowings.

ASSET QUALITY

Provision for loan losses was $300 thousand for the quarter ended March 31, 2019. This was an $8 thousand, or 2.7%, increase from the quarter ended December 31, 2018, due to a 2.8% increase in loans. Provision decreased $174 thousand from the quarter ended March 31, 2018, with a 15.9% increase in loans. The decrease in loan loss provision is attributable to a $14.9 million decrease in loan volume during the quarter ended March 31, 2019 compared to during the quarter ended March 31, 2018, as well as decreased net charge-offs for the quarter ended March 31, 2019, compared to the quarter ended March 31, 2018. Nonperforming loans decreased $2.0 million, to 0.53%, of total loans as of March 31, 2019, compared to 0.54% of total loans as of December 31, 2018, and compared to 0.79% of total loans as of March 31, 2018. In addition, net charge-offs for the quarter ended March 31, 2019, decreased $795 thousand compared to the quarter ended December 31, 2018, and decreased $288 thousand compared to the quarter ended March 31, 2018. These decreases resulted in an annualized net loan charge-offs to total loans ratio of 0.00% as of March 31, 2019, compared to 0.24% as of December 31, 2018, and compared to 0.10% as of March 31, 2018.

NONINTEREST INCOME

Noninterest income totaled $8.8 million for the quarter ended March 31, 2019, an increase of $470 thousand, or 5.7%, from the quarter ended December 31, 2018, and a decrease of $274 thousand, or 3.0%, from the quarter ended March 31, 2018.

The $470 thousand increase in noninterest income from the quarter ended December 31, 2018, was due to an increase in the gain on derivatives of $1.2 million, an increase in income on bank-owned life insurance of $301 thousand and an increase in the holding gain on equity securities of $173 thousand. These increases were partially offset by a decrease in mortgage fee income of $1.0 million and a decrease in the gain on sale of securities of $118 thousand. The increase in gain on derivatives of $1.2 million was largely the result of an increase of 42.7% in the locked mortgage pipeline during the three months ended March 31, 2019, compared to a 27.8% decrease in the locked mortgage pipeline during the three months ended December 31, 2018. The decrease in mortgage fee income of $1.0 million was the result of a decrease of $66.5 million, or 20.9%, in the volume of mortgage loans sold.

The $274 thousand decrease in noninterest income from the quarter ended March 31, 2018, was primarily due to a decrease in the gain on sale of securities of $444 thousand, a decrease in commercial swap fee income of $333 thousand, a decrease in gain on the sale of portfolio loans of $157 thousand and a decrease in gain on derivatives of $134 thousand. These decreases were partially offset by an increase of $307 thousand in income on bank-owned life insurance and an increase of $210 thousand in the holding gain on equity securities. The decrease in gain on derivatives of $134 thousand was largely the result of an increase of 42.7% in the locked mortgage pipeline during the three months ended March 31, 2019, compared to an increase of 67.6% in the locked mortgage pipeline during the three months ended March 31, 2018.

NONINTEREST EXPENSE

Noninterest expense totaled $18.4 million for the quarter ended March 31, 2019, a decrease of $25 thousand, or 0.1%, from the quarter ended December 31, 2018, and an increase of $1.7 million, or 10.2%, from the quarter ended March 31, 2018.

The $1.7 million increase in noninterest expense from the quarter ended March 31, 2018, was primarily due to an increase in salaries and employee benefits expense of $1.3 million, an increase in data processing and communication expense of $153 thousand, an increase in occupancy and equipment expense of $206 thousand and an increase in insurance, tax and assessment expense of $115 thousand. These increases were partially offset by a decrease in marketing, contributions and sponsorships expense of $133 thousand.

SUBSEQUENT EVENT

As previously announced on April 29, 2019, the Company 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.

DIVIDEND

As previously announced on February 19, 2019, the Company declared a quarterly cash dividend of $0.035 per share to shareholders of record at the close of business on March 1, 2019, payable March 15, 2019. This was the first quarterly dividend for 2019 and includes a one-half cent, or 16.7% increase per share, compared to the previous quarter dividend of $0.03 per share.

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.”

MVB is a financial holding company headquartered in Fairmont, W.Va. 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.

Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services.

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
2019   2018   2018   2018   2018
  First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Interest income $ 19,623 $ 19,586 $ 18,176 $ 16,944 $ 15,054
Interest expense 5,651 5,176 4,652 4,289 3,589
Net interest income 13,972 14,410 13,524 12,655 11,465
Provision for loan losses 300 292 1,069 605 474
Noninterest income 8,765 8,295 10,511 10,795 9,039
Noninterest expense 18,448 18,473 18,417 19,249 16,739
Income before income taxes 3,989 3,940 4,549 3,596 3,291
Income tax expense 797 941 970 765 697
Net income $ 3,192 $ 2,999 $ 3,579 $ 2,831 $ 2,594
Preferred dividends 121 123 123 122 121
Net income available to common shareholders $ 3,071 $ 2,876 $ 3,456 $ 2,709 $ 2,473
 
Earnings per share - basic $ 0.26 $ 0.25 $ 0.30 $ 0.25 $ 0.24
Earnings per share - diluted $ 0.26 $ 0.24 $ 0.29 $ 0.25 $ 0.23
 
     

Condensed Consolidated Balance Sheets

(Unaudited) (Dollars in thousands)

 
    March 31, 2019 December 31, 2018 March 31, 2018
Cash and cash equivalents $ 17,958 $ 22,221 $ 23,630
Certificates of deposit with other banks 14,778 14,778 14,778
Investment securities 234,582 231,213 233,483
Loans held for sale 65,955 75,807 51,280
Loans 1,341,218 1,304,366 1,157,173
Allowance for loan losses (11,242) (10,939) (10,067)
Net loans 1,329,976 1,293,427 1,147,106
Premises and equipment 25,922 26,545 26,477
Goodwill 18,480 18,480 18,480
Other assets 82,257 68,498 66,284
Total assets $ 1,789,908 $ 1,750,969 $ 1,581,518
 
Deposits $ 1,430,659 $ 1,309,154 $ 1,153,907
Borrowed funds 114,884 214,887 207,370
Other liabilities 63,493 50,155 69,820
Shareholders' equity 180,872 176,773 150,421
Total liabilities and shareholders' equity $ 1,789,908 $ 1,750,969 $ 1,581,518
 
         

Reportable Segments
(Unaudited)

 
Three Months Ended March 31, 2019

Commercial &
Retail Banking

Mortgage
Banking

Financial
Holding
Company

Intercompany
Eliminations

Consolidated
(Dollars in thousands)
Interest income $ 18,327 $ 1,538 $ 1 $ (243 ) $ 19,623
Interest expense 4,754 993 285   (381 ) 5,651
Net interest income 13,573 545 (284 ) 138 13,972
Provision for loan losses 247 53     300
Net interest income after provision for loan losses 13,326 492 (284 ) 138 13,672
 
Noninterest Income:
Mortgage fee income 109 6,697 (136 ) 6,670
Other income 1,566 476 1,779   (1,726 ) 2,095
Total noninterest income 1,675 7,173 1,779 (1,862 ) 8,765
 
Noninterest Expenses:
Salaries and employee benefits 4,395 5,159 2,180 11,734
Other expense 5,352 2,025 1,061   (1,724 ) 6,714
Total noninterest expenses 9,747 7,184 3,241 (1,724 ) 18,448
 
Income (loss) before income taxes 5,254 481 (1,746 ) 3,989
Income tax expense (benefit) 1,054 146 (403 )   797
Net income (loss) $ 4,200 $ 335 $ (1,343 ) $   $ 3,192
Preferred stock dividends 121     121
Net income (loss) available to common shareholders $ 4,200 $ 335 $ (1,464 ) $   $ 3,071
 
         
Three Months Ended December 31, 2018

Commercial &
Retail
Banking

Mortgage
Banking

Financial
Holding
Company

Intercompany
Eliminations

Consolidated
(Dollars in thousands)
Interest income $ 17,990 $ 1,797 $ 2 $ (203 ) $ 19,586
Interest expense 4,164 1,140   323   (451 ) 5,176
Net interest income 13,826 657 (321 ) 248 14,410
Provision for loan losses 319 (27 )     292
Net interest income after provision for loan losses 13,507 684 (321 ) 248 14,118
 
Noninterest income:
Mortgage fee income 141 7,809 (247 ) 7,703
Other income 1,427 (728 ) 1,663   (1,770 ) 592
Total noninterest income 1,568 7,081 1,663 (2,017 ) 8,295
 
Noninterest Expense:
Salaries and employee benefits 3,978 5,638 2,121 11,737
Other expense 5,278 2,042   1,185   (1,769 ) 6,736
Total noninterest expenses 9,256 7,680 3,306 (1,769 ) 18,473
 
Income (loss) before income taxes 5,819 85 (1,964 ) 3,940
Income tax expense (benefit) 1,333 23   (415 )   941
Net income (loss) $ 4,486 $ 62   $ (1,549 ) $   $ 2,999
Preferred stock dividends   123     123
Net income (loss) available to common shareholders $ 4,486 $ 62   $ (1,672 ) $   $ 2,876
 
         
Three Months Ended March 31, 2018

Commercial &
Retail
Banking

Mortgage
Banking

Financial
Holding
Company

Intercompany
Eliminations

Consolidated
(Dollars in thousands)
Interest income $ 13,838 $ 1,335 $ 1 $ (120 ) $ 15,054
Interest expense 2,674 727 558   (370 ) 3,589
Net interest income 11,164 608 (557 ) 250 11,465
Provision for loan losses 417 57     474
Net interest income after provision for loan losses 10,747 551 (557 ) 250 10,991
 
Noninterest income:
Mortgage fee income 140 6,673 (250 ) 6,563
Other income 1,780 517 1,553   (1,374 ) 2,476
Total noninterest income 1,920 7,190 1,553 (1,624 ) 9,039
 
Noninterest Expense:
Salaries and employee benefits 3,569 5,416 1,488 10,473
Other expense 4,559 2,122 959   (1,374 ) 6,266
Total noninterest expenses 8,128 7,538 2,447 (1,374 ) 16,739
 
Income (loss) before income taxes 4,539 203 (1,451 ) 3,291
Income tax expense (benefit) 978 53 (334 )   697
Net income (loss) $ 3,561 $ 150 $ (1,117 ) $   $ 2,594
Preferred stock dividends 121     121
Net income (loss) available to common shareholders $ 3,561 $ 150 $ (1,238 ) $   $ 2,473
 
     

Average Balances and Interest Rates
(Unaudited) (Dollars in thousands)

 
Three Months Ended
March 31, 2019
Three Months Ended
December 31, 2018
Three Months Ended
March 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 $ 7,546 $ 49 2.63 % $ 8,123 $ 45 2.17 % $ 3,883 $ 18 1.83 %
CDs with other banks 14,778 73 2.00 14,778 74 1.99 14,778 72 1.97
Investment securities:
Taxable 139,692 879 2.55 146,488 924 2.50 154,430 895 2.35
Tax-exempt 92,417 837 3.67 79,906 723 3.59 75,556 655 3.51
Loans and loans held for sale: 1
Commercial 951,836 12,594 5.37 924,547 12,518 5.37 775,764 8,943 4.68
Tax exempt 14,251 123 3.50 14,454 128 3.51 14,464 123 3.46
Real estate 411,639 4,941 4.87 415,502 5,039 4.81 360,744 4,190 4.71
Consumer 9,654   127 5.34   10,215   135 5.24   12,517   158 5.11  
Total loans 1,387,380   17,785 5.20   1,364,718   17,820 5.18   1,163,489   13,414 4.68  
Total earning assets 1,641,813   19,623 4.85   1,614,013   19,586 4.81   1,412,136   15,054 4.32  
Less: Allowance for loan losses (11,071 ) (11,268 ) (9,987 )
Cash and due from banks 16,088 16,515 15,966
Other assets 112,301   109,146   102,645  
Total assets $ 1,759,131   $ 1,728,406   $ 1,520,760  
 
Liabilities
Deposits:
NOW $ 357,005 $ 729 0.83 $ 414,997 $ 865 0.83 $ 443,784 $ 762 0.70
Money market checking 297,607 1044 1.42 261,928 852 1.29 241,472 443 0.74
Savings 40,235 1 0.01 40,494 1 0.01 46,544 20 0.17
IRAs 17,826 79 1.80 17,937 78 1.73 17,691 62 1.43
CDs 428,610 2,270 2.15 384,540 1,902 1.96 269,286 1,011 1.52
Repurchase agreements and federal funds sold 14,206 14 0.40 15,573 6 0.15 20,605 19 0.37
FHLB and other borrowings 175,222 1,229 2.84 173,110 1,150 2.64 160,205 714 1.81
Subordinated debt 17,524   285 6.60   17,861   322 7.15   33,524   558 6.75  
Total interest-bearing liabilities 1,348,235   5,651 1.70   1,326,440   5,176 1.55   1,233,111   3,589 1.18  
Noninterest bearing demand deposits 214,541 217,527 129,385
Other liabilities 18,450   11,903   8,673  
Total liabilities 1,581,226   1,555,870   1,371,169  
 
Stockholders’ equity
Preferred stock 7,834 7,834 7,834
Common stock 11,659 11,633 10,525
Paid-in capital 116,925 116,254 99,110
Treasury stock (1,084 ) (1,084 ) (1,084 )
Retained earnings 49,161 46,852 38,004
Accumulated other comprehensive income (6,590 ) (8,953 ) (4,798 )
Total stockholders’ equity 177,905   172,536   149,591  
Total liabilities and stockholders’ equity $ 1,759,131   $ 1,728,406   $ 1,520,760  
 
Net interest spread 3.15 3.26 3.14
Net interest income-margin $ 13,972 3.45   $ 14,410 3.54   $ 11,465 3.29  
 

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
  2019   2018   2018   2018   2018
  First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Earnings and Per Share Data:
Net income $ 3,192 $ 2,999 $ 3,579 $ 2,831 $ 2,594
Net income available to common shareholders 3,071 2,876 3,456 2,709 2,473
Earnings per share - basic 0.26 0.25 0.30 0.25 0.24
Earnings per share - diluted 0.26 0.24 0.29 0.25 0.23
Cash dividends paid per common share 0.035 0.030 0.030 0.025 0.025
Book value per common share 14.90 14.55 14.13 13.93 13.53
Tangible book value per common share 13.26 12.92 12.48 12.25 11.72
Weighted average shares outstanding - basic 11,607,543 11,582,378 11,416,202 10,634,805 10,474,138
Weighted average shares outstanding - diluted 13,177,281 12,772,222 13,113,259 11,502,148 12,714,353
 
Performance Ratios:
Return on average assets 1 0.73 % 0.69 % 0.85 % 0.70 % 0.68 %
Return on average equity 1 7.18 % 6.95 % 8.53 % 7.40 % 6.94 %
Net interest margin 2 3.45 % 3.54 % 3.43 % 3.38 % 3.29 %
Efficiency ratio 3 81.14 % 81.36 % 76.63 % 82.09 % 81.64 %
Overhead ratio 1 4 4.19 % 4.28 % 4.38 % 4.76 % 4.40 %
Equity to assets 10.11 % 10.10 % 9.92 % 9.84 % 9.51 %
 
Asset Quality Data and Ratios:
Charge-offs $ $ 801 $ 294 $ 29 $ 356
Recoveries 3 9 13 8 71
Net loan charge-offs to total loans 1 5 % 0.24 % 0.09 % 0.01 % 0.10 %
Allowance for loan losses 11,242 10,939 11,439 10,651 10,067
Allowance for loan losses to total loans 6 0.84 % 0.84 % 0.88 % 0.88 % 0.87 %
Nonperforming loans 7,075 7,103 12,846 9,419 9,102
Nonperforming loans to total loans 0.53 % 0.54 % 0.99 % 0.78 % 0.79 %
 

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

(Unaudited) (Dollars in thousands)

 
Quarterly
  2019   2018   2018   2018   2018
  First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Goodwill $ 18,480 $ 18,480 $ 18,480 $ 18,480 $ 18,480
Core deposit intangibles 527   550   574   598   622  
Total intangibles 19,007 19,030 19,054 19,078 19,102
 
Total equity 180,872 176,773 170,876 165,795 150,421
Less: Preferred equity (7,834 ) (7,834 ) (7,834 ) (7,834 ) (7,834 )
Less: Total intangibles (19,007 ) (19,030 ) (19,054 ) (19,078 ) (19,102 )
Tangible common equity 154,031 149,909 143,988 138,883 123,485
 
Tangible common equity 154,031 149,909 143,988 138,883 123,485
Common shares outstanding (000s) 11,615   11,607   11,537   11,338   10,539  
Tangible book value per common share $ 13.26   $ 12.92   $ 12.48   $ 12.25   $ 11.72  

Contacts

Amy Baker
VP, Corporate Communications
abaker@mvbbanking.com
844-682-2265

Contacts

Amy Baker
VP, Corporate Communications
abaker@mvbbanking.com
844-682-2265