MVB Financial Corp. Reports 125% Increase in Annual Earnings and a 39% Increase in Noninterest-Bearing Deposits in 2019

FAIRMONT, W.Va.--()--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

 

 

 

Contacts

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

Contacts

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