MVB Financial Corp. Reports Strong Fourth Quarter 2020 Results and Finishes 2020 with Record Earnings

FAIRMONT, W.Va.--()--MVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial,” “MVB,” or the “Company”) today reported net income of $11.8 million, or $1.00 basic and $0.97 diluted earnings per share, for the three months ended December 31, 2020. For the year ended December 31, 2020, the Company reported net income of $37.4 million, or $3.13 basic and $3.06 diluted earnings per share.

 

 

Quarterly

 

Full Year

 

 

2020

 

2020

 

2019

 

2020

 

2019

 

 

Fourth Quarter

 

Third Quarter

 

Fourth Quarter

 

 

Net income

 

$

11,838

 

 

$

6,491

 

 

$

4,095

 

 

$

37,411

 

 

$

26,991

 

Earnings per share - basic

 

$

1.00

 

 

$

0.53

 

 

$

0.34

 

 

$

3.13

 

 

$

2.26

 

Earnings per share - diluted

 

$

0.97

 

 

$

0.53

 

 

$

0.32

 

 

$

3.06

 

 

$

2.20

 

FOURTH QUARTER 2020 HIGHLIGHTS

  • Deposits: Noninterest-bearing (“NIB”) deposits were $715.8 million as of December 31, 2020, an increase of $73.0 million, or 11.3%, from September 30, 2020, and an increase of $437.2 million, or 157.0%, from December 31, 2019. As of December 31, 2020, NIB deposits were 36.1% of total deposits, compared to 33.9% at September 30, 2020, and 22.0% as of December 31, 2019.
  • Asset Quality: Allowance for loan losses to total loans was 1.8% as of December 31, 2020, a decrease of four basis points from September 30, 2020, and an increase of 92 basis points from December 31, 2019. Excluding Paycheck Protection Program (“PPP”) loans of $82.0 million which are generally fully guaranteed by the U.S. government, allowance for loan losses to total loans was 1.9% as of December 31, 2020, a decrease of five basis points from September 30, 2020, and an increase of 102 basis points from December 31, 2019.
  • Growth in Tangible Book Value (“TBV”) per Share: TBV per share, a non-GAAP measure, was $19.73 as of December 31, 2020, an increase of $1.07, or 5.7%, from September 30, 2020, and an increase of $4.53, or 29.8%, from December 31, 2019. A reconciliation of TBV is included as the last page of this release.
  • Capital: MVB Bank, Inc. (“MVB Bank” or the “Bank”) finished the fourth quarter with consistently strong capital ratios. As of December 31, 2020, the Bank’s leverage ratio was 11.0%, the Tier 1 risk-based capital ratio was 14.6%, and the total risk-based capital ratio was 15.8%. The Company’s tangible common equity to tangible assets was 9.8% as of December 31, 2020. Also, during the fourth quarter of 2020, the Company repurchased 668,390 shares totaling $13.1 million through a share repurchase plan and a tender offer.

FINTECH HIGHLIGHTS

  • Financial technology related companies (“Fintech”) deposits totaled $533.0 million as of December 31, 2020, an increase of $168.2 million, or 46.1%, from September 30, 2020, and an increase of $382.8 million, or 254.8%, from December 31, 2019.
  • Gaming deposits, included in total Fintech deposits, were $357.9 million as of December 31, 2020, an increase of $151.3 million, or 73.3%, from September 30, 2020, and an increase of $237.6 million, or 197.5%, from December 31, 2019.

MANAGEMENT OVERVIEW

The Company completed a very successful year and continued to further strengthen capital and maintained a significant allowance for loan losses, all while generating competitive earnings of $11.8 million in the fourth quarter to position the Company for continued success in the future.

The Bank paid off all Federal Home Loan Bank (“FHLB”) and other borrowings during the fourth quarter and further reduced its reliance on brokered certificates of deposit (“CDs”) and higher-cost deposits by replacing these deposits with noninterest-bearing deposits. The growth in noninterest-bearing deposits was primarily driven by MVB’s continual execution of strategic initiatives in Fintech and specialty deposits.

“Despite the challenges of the COVID-19 pandemic, 2020 ended as one of the most successful years in MVB history. MVB completed multiple strategic transactions, created growth in tangible book value and shareholder value during unprecedented times, and onboarded a number of highly talented and experienced Team Members. I could not be more grateful to Team MVB and what we have accomplished,” said Larry F. Mazza, President and CEO, MVB Financial Corp. “MVB is well positioned into 2021 with an extremely strong balance sheet, strong capital and liquidity positions. Our continued execution in our Fintech and gaming verticals gives us the ability to expand our product base on the financial frontier.”

LOANS

Loans, excluding PPP loans of $82.0 million, totaled $1.37 billion as of December 31, 2020, an increase of $31.1 million, or 2.3%, from September 30, 2020, and a decrease of $2.8 million, or 0.2%, from December 31, 2019. The tax-equivalent yield on loans, including PPP loans, was 4.7% for the quarter ended December 31, 2020, an increase of 20 basis points from the quarter ended September 30, 2020, and a decrease of 39 basis points from the quarter ended December 31, 2019. The increase was primarily due to an increase of $0.9 million in loan fees, an increase of $0.4 million in accretion related to the loans acquired from The First State Bank (“First State”), and the mortgage combination announced during the third quarter of 2020 that caused a significant decrease in lower-yielding loans held-for-sale.

Loans held-for-sale totaled $1.1 million as of December 31, 2020, a decrease of $1.2 million, or 53.2%, from September 30, 2020, and a decrease of $108.7 million, or 99.0%, from December 31, 2019, as a result of the MVB Mortgage combination to form Intercoastal Mortgage, LLC as previously announced on July 1, 2020.

DEPOSITS

Deposits totaled $1.98 billion as of December 31, 2020, an increase of $83.4 million, or 4.4%, from September 30, 2020, and an increase of $717.3 million, or 56.7%, from December 31, 2019. Noninterest-bearing deposits were $715.8 million as of December 31, 2020, an increase of $73.0 million, or 11.3%, from September 30, 2020, and an increase of $437.2 million, or 157.0%, from December 31, 2019. As of December 31, 2020, NIB deposits were 36.1% of total deposits, compared to 33.9% at September 30, 2020, and 22.0% as of December 31, 2019.

Throughout 2020, the Company used the influx of noninterest-bearing deposits to pay off FHLB and other borrowings and decrease reliance on higher-cost funding sources. Also as a result of the increase in deposits, the Company’s loan to deposit ratio was 73.3% as of December 31, 2020.

NET INTEREST INCOME

Net interest income for the quarter ended December 31, 2020, was $17.7 million, an increase of $1.2 million, or 7.1%, compared to the quarter ended September 30, 2020, and an increase of $1.8 million, or 11.5%, compared to the quarter ended December 31, 2019. Net interest margin, on a fully tax-equivalent basis, for the quarter ended December 31, 2020, was 3.4%, a decrease of 1 basis point compared to the quarter ended September 30, 2020, and a decrease of 14 basis points compared to the quarter ended December 31, 2019. Net interest margin was primarily impacted by excess liquidity and PPP loans originated during the second quarter of 2020. For the quarter ended December 31, 2020, excess liquidity accounted for 29 basis points of the decrease and the PPP loans originated during the second quarter accounted for 10 basis points of the decrease. The tax-equivalent adjustments are added to net interest income and are $0.4 million for the quarter ended December 31, 2020, $0.3 million for the quarter ended September 30, 2020, and $0.3 million for the quarter ended December 31, 2019. Excluding the impact of the FDIC-assisted acquisition of First State, the fully-tax equivalent net interest margin for the quarter ended December 31, 2020 would have decreased 12 basis points.

Interest income for the quarter ended December 31, 2020 was $19.4 million, an increase of $0.7 million, or 3.9%, compared to the quarter ended September 30, 2020, and a decrease of $1.9 million, or 8.8%, compared to the quarter ended December 31, 2019. The 90-basis point increase in the yield on real estate loans compared to the quarter ended September 30, 2020, was partially offset by a 7-basis point decrease in the tax-equivalent yield on investment securities. The increase in the yield on real estate loans was due to the mortgage combination announced during the third quarter of 2020 that caused a significant decrease in lower-yielding loans held-for-sale. The decrease in the tax-equivalent yield on earning assets of 101-basis points compared to the quarter ended December 31, 2019 was the result of a 51-basis point decrease in the yield on commercial loans and a 25-basis point decrease in the tax-equivalent yield on investment securities.

A significant factor in the decrease in the tax-equivalent yield on earning assets has been the continuing increase in the Company’s liquidity. For the quarter ended December 31, 2020, interest-bearing deposits with banks, CDs with banks, and investment securities were 31% of average earning assets, compared to 22% for the quarter ended September 30, 2020, and compared to 15% for the quarter ended December 31, 2019.

Interest expense for the quarter ended December 31, 2020 was $1.7 million, a decrease of $0.5 million, or 21.3%, compared to the quarter ended September 30, 2020, and a decrease of $3.7 million, or 68.9%, compared to the quarter ended December 31, 2019. The decrease compared to the quarter ended September 30, 2020 was a result of a 14-basis point decrease in the cost of interest-bearing liabilities, primarily the result of a 180-basis point decrease in the cost of FHLB and other borrowings that was partially offset by a 216-basis point increase in the cost of subordinated debt. The decrease compared to the quarter ended December 31, 2019 was the result of a 104-basis point decrease in the cost of interest-bearing liabilities, primarily the result of a 153-basis point decrease in the cost of FHLB and other borrowings and a 131-basis point decrease in the cost of money market accounts.

An increase in the Company's average noninterest-bearing balances of $144.1 million from the quarter ended September 30, 2020 helped to maintain a 18-basis point favorable spread on the tax-equivalent net interest margin for the quarter ended December 31, 2020, compared to a 21-basis point favorable spread for the quarter ended September 30, 2020.

An increase in the Company’s average noninterest-bearing balances of $389.9 million from the quarter ended December 31, 2019 helped to maintain a 18-basis point favorable spread on the tax-equivalent net interest margin for the quarter ended December 31, 2020 compared to a 35-basis point favorable spread for the quarter ended December 31, 2019.

ASSET QUALITY

Provision for loan losses for the quarter ended December 31, 2020 was $0.2 million, a decrease of $8.4 million, or 97.5%, from the quarter ended September 30, 2020, and remained consistent with the comparable period of 2019. As a result of the changes in provision, allowance for loan losses to total loans, excluding the fair value mark totaling $16.9 million on the loans acquired from First State was 1.8% as of December 31, 2020, a decrease of four basis points from September 30, 2020, and an increase of 92 basis points from December 31, 2019. Excluding PPP loans of $82.0 million, allowance for loan losses to total loans was 1.9% as of December 31, 2020, a decrease of five basis points from September 30, 2020, and an increase of 102 basis points from December 31, 2019. The Company continues to evaluate the effects of COVID-19 as it relates to the asset quality of the loan portfolio and will continue to evaluate and assess the need for additional loan loss provision in 2021.

Nonperforming loans decreased $1.2 million to $13.7 million, or 0.9%, of total loans as of December 31, 2020, compared to September 30, 2020. In addition, net charge-offs were $0.3 million, or 0.1% of total loans for the quarter ended December 31, 2020. Commercial loan modifications continue to decrease and totaled $34.7 million as of December 31, 2020, down from $41.1 million as of September 30, 2020. Mortgage loan modifications also continue to decrease and totaled $13.5 million as of December 31, 2020, down from $15.5 million as of September 30, 2020. These modifications include interest-only payments and payment deferrals. Of the current commercial loan modifications, $32.5 million were related to the hotel portfolio and all related payments are current. These modifications were not considered to be troubled debt restructurings.

NONINTEREST INCOME

Noninterest income for the quarter ended December 31, 2020 was $16.6 million, a decrease of $2.3 million, or 12.3%, compared to the quarter ended September 30, 2020, and an increase of $1.8 million, or 12.3%, compared to the quarter ended December 31, 2019.

The $2.3 million decrease in noninterest income from the quarter ended September 30, 2020, was due to decreases of $3.3 million in gain on mortgage combination transaction recognized during the third quarter of 2020, and $3.1 million in equity method investment income from the MVB Mortgage combination to form Intercoastal Mortgage that occurred during the third quarter of 2020. These decreases were partially offset by a $3.4 million gain the Company recognized from a sale of a portion of one of its Fintech investments.

The $1.8 million increase in noninterest income from the quarter ended December 31, 2019, was due to increases of $10.6 million in equity method investment income from Intercoastal Mortgage and a $3.4 million gain on the sale of equity securities from the sale of a portion of one of the Company’s Fintech investments, and $1.4 million in gain on derivatives. These increases were partially offset by a decrease of $13.0 million in mortgage fee income.

NONINTEREST EXPENSE

Noninterest expense for the quarter ended December 31, 2020 was $20.9 million, an increase of $2.6 million, or 14.4%, compared to the quarter ended September 30, 2020, and a decrease of $4.1 million, or 16.4%, compared to the quarter ended December 31, 2019.

The $2.6 million increase in noninterest expense from the quarter ended September 30, 2020, was due to an increase of $1.8 million in salaries and employee benefits and an increase of $0.9 million in professional fees. The increase in salaries and employee benefits was primarily the result of a $1.0 million increase in incentive compensation and a $0.6 million increase in salaries.

The $4.1 million decrease in noninterest expense from the quarter ended December 31, 2019, was due to a decrease of $3.5 million in salaries and employee benefits and a decrease of $0.7 million in travel, entertainment, dues, and subscriptions expense. Of the decrease in salaries and employee benefits, $7.9 million was related to the MVB Mortgage combination to form Intercoastal Mortgage and was partially offset by a $2.2 million increase in salaries primarily at the Bank and a $1.1 million increase in incentive compensation.

TENDER OFFER AND STOCK REPURCHASE PROGRAM

As previously announced on December 23, 2020, the Company announced the final results of its modified Dutch Auction tender offer to purchase, for cash, up to $45.0 million of its common stock at a price per share not less than $18 and not greater than $20.25. A total of 536,490 shares of the Company’s common stock were repurchased for an aggregate cost of approximately $10.9 million, excluding fees and expenses related to the tender offer.

In connection with the announcement of the final results of the tender offer, the Company also announced that on or before December 31, 2021, the Company may repurchase up to $31.9 million of additional shares of its common stock, including shares that were not otherwise purchased in the aforementioned tender offer, under the Company’s previously announced stock repurchase program. Such repurchases may occur from time to time, on the open market or otherwise, at such prices and upon such terms as the Company may determine and otherwise in accordance with applicable law.

During the fourth quarter of 2020, the Company repurchased 668,390 shares totaling $13.1 million and a total of 796,414 shares totaling $15.0 million were repurchased in 2020. These figures include common stock repurchased through the tender offer.

SUBORDINATED DEBT

As previously announced on November 30, 2020, MVB completed a private placement of $40 million of 4.25% fixed-to-floating rate subordinated notes to certain qualified institutional buyers. The notes are unsecured and have a ten-year term maturing on December 1, 2030.

DIVIDEND

As previously announced on November 18, 2020, MVB issued its fourth quarterly dividend for 2020, totaling a $0.36 per share payout year-to-date. The Company declared a quarterly cash dividend of $0.09 per share payable on December 15, 2020, to shareholders of record at the close of business on December 1, 2020.

SUBSEQUENT EVENT

As previously announced on December 28, 2020, the Company issued a notice of redemption to redeem all of its outstanding shares of Convertible Noncumulative Perpetual Preferred Stock, Series B and Series C. On January 28, 2021, preferred stock in the amount of $7.3 million was redeemed.

About MVB Financial Corp.

MVB Financial Corp., the holding company of MVB Bank, Inc., is publicly traded on The Nasdaq Capital Market® under the ticker “MVBF.” Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its subsidiary, MVB Bank, Inc., and the Bank’s subsidiaries, MVB Community Development Corporation, Chartwell Compliance, Paladin Fraud and MVB Technology, the Company provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond. For more information about MVB, please visit http://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 that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations about the future and subject to risks and uncertainties. Forward-looking statements include, without limitation, information concerning possible or assumed future results of operations of the Company and its subsidiaries. Forward-looking statements can be identified by the use of words such as “may,” “could,” “should,”, “would,” “will,” “plans,” “believes,” “estimates,” “expects,” “anticipates,” “intends,” “continues,” or the negative of those terms or similar expressions. 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 forward-looking statements. Therefore, undue reliance should not be placed upon any forward-looking statements. Those factors include but are not limited to: market, economic, operational, liquidity, and credit risk; changes in market interest rates; inability to achieve anticipated synergies and successfully integrate recent mergers and acquisitions; inability to successfully execute business plans, including strategies related to investments in financial technology companies; competition; length and severity of the COVID-19 pandemic and its impact on the Company’s business and financial condition; changes in economic, business, and political conditions; changes in demand for loan products and deposit flow; operational risks and risk management failures; and government regulation and supervision. Additional factors that may cause actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as well as its other filings with the SEC, which are available on the SEC’s website at www.sec.gov. Except as required by law, the Company disclaims any obligation to update, revise, or correct 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.

Financial Highlights

Condensed Consolidated Statements of Income

(Unaudited) (Dollars in thousands, except per share data)

 

 

 

Quarterly

 

Full Year

 

 

2020

 

2020

 

2019

 

2020

 

2019

 

 

Fourth Quarter

 

Third Quarter

 

Fourth Quarter

 

 

Interest income

 

$

19,353

 

 

$

18,627

 

 

$

21,230

 

 

$

80,453

 

 

$

82,361

 

Interest expense

 

1,666

 

 

2,117

 

 

5,365

 

 

11,627

 

 

22,961

 

Net interest income

 

17,687

 

 

16,510

 

 

15,865

 

 

68,826

 

 

59,400

 

Provision for loan losses

 

214

 

 

8,631

 

 

232

 

 

16,579

 

 

1,789

 

Net interest income after provision for loan losses

 

17,473

 

 

7,879

 

 

15,633

 

 

52,247

 

 

57,611

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Mortgage fee income

 

 

 

7,264

 

 

13,015

 

 

33,427

 

 

41,045

 

Other income

 

16,576

 

 

11,634

 

 

1,741

 

 

58,410

 

 

23,559

 

Total noninterest income

 

16,576

 

 

18,898

 

 

14,756

 

 

91,837

 

 

64,604

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

12,269

 

 

10,519

 

 

15,723

 

 

61,629

 

 

56,175

 

Other expense

 

8,618

 

 

7,746

 

 

9,260

 

 

35,512

 

 

31,026

 

Total noninterest expenses

 

20,887

 

 

18,265

 

 

24,983

 

 

97,141

 

 

87,201

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, before income taxes

 

13,162

 

 

8,512

 

 

5,406

 

 

46,943

 

 

35,014

 

Income tax expense - continuing operations

 

1,324

 

 

2,021

 

 

1,311

 

 

9,532

 

 

8,450

 

Net income from continuing operations

 

11,838

 

 

6,491

 

 

4,095

 

 

37,411

 

 

26,564

 

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations, before income taxes

 

 

 

 

 

 

 

 

 

575

 

Income tax expense - discontinued operations

 

 

 

 

 

 

 

 

 

148

 

Net income from discontinued operations

 

 

 

 

 

 

 

 

 

427

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

11,838

 

 

$

6,491

 

 

$

4,095

 

 

$

37,411

 

 

$

26,991

 

Preferred dividends

 

116

 

 

116

 

 

115

 

 

461

 

 

479

 

Net income available to common stockholders

 

$

11,722

 

 

$

6,375

 

 

$

3,980

 

 

$

36,950

 

 

$

26,512

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations - basic

 

$

1.00

 

 

$

0.53

 

 

$

0.34

 

 

$

3.13

 

 

$

2.22

 

Earnings per share from discontinued operations - basic

 

 

 

 

 

 

 

 

 

0.04

 

Earnings per share - basic

 

$

1.00

 

 

$

0.53

 

 

$

0.34

 

 

$

3.13

 

 

$

2.26

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations - diluted

 

$

0.97

 

 

$

0.53

 

 

$

0.32

 

 

$

3.06

 

 

$

2.16

 

Earnings per share from discontinued operations - diluted

 

 

 

 

 

 

 

 

 

0.04

 

Earnings per share - diluted

 

$

0.97

 

 

$

0.53

 

 

$

0.32

 

 

$

3.06

 

 

$

2.20

 

 

Condensed Consolidated Balance Sheets

(Unaudited) (Dollars in thousands)

 

 

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

Cash and cash equivalents

 

$

263,893

 

 

$

295,823

 

 

$

28,002

 

Certificates of deposit with banks

 

11,803

 

 

12,301

 

 

12,549

 

Investment securities available-for-sale

 

410,624

 

 

297,964

 

 

235,821

 

Equity securities

 

27,585

 

 

24,164

 

 

18,514

 

Loans held-for-sale

 

1,062

 

 

2,271

 

 

109,788

 

Loans receivable

 

1,453,744

 

 

1,428,593

 

 

1,374,541

 

Allowance for loan losses

 

(25,844)

 

 

(25,913)

 

 

(11,775)

 

Loans receivable, net

 

1,427,900

 

 

1,402,680

 

 

1,362,766

 

Premises and equipment, net

 

26,203

 

 

26,176

 

 

21,974

 

Assets of branches held-for-sale

 

 

 

 

 

46,554

 

Goodwill

 

2,350

 

 

2,350

 

 

19,630

 

Other assets

 

160,056

 

 

150,730

 

 

88,516

 

Total assets

 

$

2,331,476

 

 

$

2,214,459

 

 

$

1,944,114

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

715,791

 

 

$

642,835

 

 

$

278,547

 

Interest-bearing deposits

 

1,266,598

 

 

1,256,122

 

 

986,495

 

Deposits of branches held-for-sale

 

 

 

 

 

188,270

 

FHLB and other borrowings

 

 

 

25,800

 

 

222,885

 

Subordinated debt

 

43,407

 

 

4,124

 

 

4,124

 

Other liabilities

 

66,197

 

 

51,462

 

 

51,857

 

Stockholders' equity

 

239,483

 

 

234,116

 

 

211,936

 

Total liabilities and stockholders' equity

 

$

2,331,476

 

 

$

2,214,459

 

 

$

1,944,114

 

 

Reportable Segments

(Unaudited)

 

Twelve Months Ended December 31, 2020

 

Commercial &

Retail Banking

 

Mortgage

Banking

 

Financial

Holding

Company

 

Intercompany

Eliminations

 

Consolidated

(Dollars in thousands)

 

 

 

 

 

Interest income

 

$

75,812

 

 

$

6,269

 

 

$

3

 

 

$

(1,631)

 

 

$

80,453

 

Interest expense

 

10,400

 

 

3,139

 

 

261

 

 

(2,173)

 

 

11,627

 

Net interest income (loss)

 

65,412

 

 

3,130

 

 

(258)

 

 

542

 

 

68,826

 

Provision for (recovery of) loan losses

 

16,649

 

 

(70)

 

 

 

 

 

 

16,579

 

Net interest income (loss) after provision for loan losses

 

48,763

 

 

3,200

 

 

(258)

 

 

542

 

 

52,247

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

 

 

 

 

Mortgage fee income

 

247

 

 

33,722

 

 

 

 

(542)

 

 

33,427

 

Other income

 

30,082

 

 

29,768

 

 

6,685

 

 

(8,125)

 

 

58,410

 

Total noninterest income

 

30,329

 

 

63,490

 

 

6,685

 

 

(8,667)

 

 

91,837

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expenses:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

28,801

 

 

21,550

 

 

11,278

 

 

 

 

61,629

 

Other expenses

 

33,298

 

 

5,074

 

 

5,265

 

 

(8,125)

 

 

35,512

 

Total noninterest expenses

 

62,099

 

 

26,624

 

 

16,543

 

 

(8,125)

 

 

97,141

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

16,993

 

 

40,066

 

 

(10,116)

 

 

 

 

46,943

 

Income tax expense (benefit)

 

1,752

 

 

9,862

 

 

(2,082)

 

 

 

 

9,532

 

Net income (loss)

 

$

15,241

 

 

$

30,204

 

 

$

(8,034)

 

 

$

 

 

$

37,411

 

Preferred stock dividends

 

 

 

 

 

461

 

 

 

 

461

 

Net income (loss) available to common shareholders

 

$

15,241

 

 

$

30,204

 

 

$

(8,495)

 

 

$

 

 

$

36,950

 

 

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 (loss)

 

57,176

 

 

2,328

 

 

(756)

 

 

652

 

 

59,400

 

Provision for loan losses

 

1,622

 

 

167

 

 

 

 

 

 

1,789

 

Net interest income (loss) 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 expenses

 

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, before income taxes

 

$

 

 

$

 

 

$

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

 

 

Average Balances and Interest Rates

(Unaudited) (Dollars in thousands)

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

 

 

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

 

$

266,999

 

 

$

82

 

 

0.12

%

 

$

174,203

 

 

$

45

 

 

0.10

%

 

$

10,332

 

 

$

46

 

 

1.77

%

CDs with banks

 

11,938

 

 

58

 

 

1.93

 

 

12,641

 

 

61

 

 

1.91

 

 

12,908

 

 

64

 

 

1.97

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

167,968

 

 

894

 

 

2.12

 

 

103,497

 

 

411

 

 

1.58

 

 

134,990

 

 

719

 

 

2.11

 

Tax-exempt 2

 

200,666

 

 

1,659

 

 

3.29

 

 

142,301

 

 

1,344

 

 

3.75

 

 

111,262

 

 

1,152

 

 

4.11

 

Loans and loans held-for-sale: 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial 3

 

1,136,899

 

 

13,763

 

 

4.82

 

 

1,160,214

 

 

14,108

 

 

4.82

 

 

1,029,592

 

 

13,830

 

 

5.33

 

Tax-exempt 2

 

7,501

 

 

92

 

 

4.87

 

 

7,752

 

 

91

 

 

4.66

 

 

11,709

 

 

134

 

 

4.54

 

Real estate

 

287,547

 

 

3,073

 

 

4.25

 

 

325,992

 

 

2,749

 

 

3.35

 

 

467,633

 

 

5,425

 

 

4.60

 

Consumer

 

6,053

 

 

99

 

 

6.51

 

 

6,613

 

 

119

 

 

7.14

 

 

8,148

 

 

130

 

 

6.33

 

Total loans

 

1,438,000

 

 

17,027

 

 

4.71

 

 

1,500,571

 

 

17,067

 

 

4.51

 

 

1,517,082

 

 

19,519

 

 

5.10

 

Total earning assets

 

2,085,571

 

 

19,720

 

 

3.76

 

 

1,933,213

 

 

18,928

 

 

3.88

 

 

1,786,574

 

 

21,500

 

 

4.77

 

Allowance for loan losses

 

(26,568)

 

 

 

 

 

 

(18,906)

 

 

 

 

 

 

(11,747)

 

 

 

 

 

Cash and due from banks

 

22,642

 

 

 

 

 

 

28,299

 

 

 

 

 

 

20,014

 

 

 

 

 

Other assets

 

215,716

 

 

 

 

 

 

205,038

 

 

 

 

 

 

136,650

 

 

 

 

 

Total assets

 

$

2,297,361

 

 

 

 

 

 

$

2,147,644

 

 

 

 

 

 

$

1,931,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

475,707

 

 

$

446

 

 

0.37

%

 

$

381,375

 

 

$

496

 

 

0.52

%

 

$

417,838

 

 

$

1,076

 

 

1.02

%

Money market checking

 

492,519

 

 

282

 

 

0.23

 

 

479,418

 

 

380

 

 

0.31

 

 

366,402

 

 

1,424

 

 

1.54

 

Savings

 

50,821

 

 

(2)

 

 

(0.02)

 

 

49,698

 

 

7

 

 

0.06

 

 

36,120

 

 

1

 

 

0.01

 

IRAs

 

13,410

 

 

49

 

 

1.45

 

 

12,389

 

 

44

 

 

1.41

 

 

16,786

 

 

81

 

 

1.91

 

CDs

 

235,412

 

 

679

 

 

1.15

 

 

334,828

 

 

967

 

 

1.15

 

 

341,270

 

 

1,733

 

 

2.01

 

Repurchase agreements and federal funds sold

 

10,070

 

 

4

 

 

0.16

 

 

10,145

 

 

4

 

 

0.16

 

 

9,733

 

 

11

 

 

0.45

 

FHLB and other borrowings

 

19,589

 

 

25

 

 

0.51

 

 

34,138

 

 

199

 

 

2.31

 

 

193,487

 

 

997

 

 

2.04

 

Subordinated debt

 

17,835

 

 

183

 

 

4.08

 

 

4,124

 

 

20

 

 

1.92

 

 

4,124

 

 

42

 

 

4.04

 

Total interest-bearing liabilities

 

1,315,363

 

 

1,666

 

 

0.50

 

 

1,306,115

 

 

2,117

 

 

0.64

 

 

1,385,760

 

 

5,365

 

 

1.54

 

Noninterest-bearing demand deposits

 

686,537

 

 

 

 

 

 

542,467

 

 

 

 

 

 

296,651

 

 

 

 

 

Other liabilities

 

59,841

 

 

 

 

 

 

68,223

 

 

 

 

 

 

41,244

 

 

 

 

 

Total liabilities

 

2,061,741

 

 

 

 

 

 

1,916,805

 

 

 

 

 

 

1,723,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

7,334

 

 

 

 

 

 

7,334

 

 

 

 

 

 

7,334

 

 

 

 

 

Common stock

 

12,095

 

 

 

 

 

 

12,066

 

 

 

 

 

 

11,920

 

 

 

 

 

Additional paid-in capital

 

124,970

 

 

 

 

 

 

124,003

 

 

 

 

 

 

121,549

 

 

 

 

 

Treasury stock

 

(5,922)

 

 

 

 

 

 

(2,022)

 

 

 

 

 

 

(1,084)

 

 

 

 

 

Retained earnings

 

98,046

 

 

 

 

 

 

90,113

 

 

 

 

 

 

70,570

 

 

 

 

 

Accumulated other comprehensive loss

 

(903)

 

 

 

 

 

 

(655)

 

 

 

 

 

 

(2,453)

 

 

 

 

 

Total stockholders’ equity

 

235,620

 

 

 

 

 

 

230,839

 

 

 

 

 

 

207,836

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

2,297,361

 

 

 

 

 

 

$

2,147,644

 

 

 

 

 

 

$

1,931,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread (tax-equivalent)

 

 

 

 

 

3.26

 

 

 

 

 

 

3.24

 

 

 

 

 

 

3.23

 

Net interest income and margin (tax-equivalent) 2

 

$

18,054

 

 

3.44

%

 

 

 

$

16,811

 

 

3.45

%

 

 

 

$

16,135

 

 

3.58

%

Less: Tax-equivalent adjustments

 

 

 

$

(367)

 

 

 

 

 

 

$

(301)

 

 

 

 

 

 

$

(270)

 

 

 

Net interest spread

 

 

 

 

 

3.19

 

 

 

 

 

 

3.18

 

 

 

 

 

 

3.17

 

Net interest income and margin

 

 

 

$

17,687

 

 

3.37

%

 

 

 

$

16,510

 

 

3.39

%

 

 

 

$

15,865

 

 

3.52

%

 

1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.

2 In order to make pre-tax income and resultant yields on tax-exempt loans and investment securities comparable to those on taxable loans and investment securities, a tax-equivalent adjustment has been computed using a Federal tax rate of 21% for the periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure following this table.

3 The Company’s PPP loans, totaling $82.0 million at December 31, 2020, are included in this amount for the three months ended December 31, 2020.

Average Balances and Interest Rates

(Unaudited) (Dollars in thousands)

 

 

 

Twelve Months Ended

 

Twelve Months Ended

 

Twelve Months Ended

 

 

December 31, 2020

 

December 31, 2019

 

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

 

$

125,259

 

 

$

191

 

 

0.15

%

 

$

9,264

 

 

$

209

 

 

2.26

%

 

$

5,176

 

 

$

108

 

 

2.09

%

CDs with banks

 

12,484

 

 

246

 

 

1.97

 

 

14,097

 

 

280

 

 

1.99

 

 

14,778

 

 

295

 

 

2.00

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

121,607

 

 

2,448

 

 

2.01

 

 

129,486

 

 

3,055

 

 

2.36

 

 

150,134

 

 

3,580

 

 

2.38

 

Tax-exempt 2

 

144,389

 

 

5,361

 

 

3.71

 

 

103,235

 

 

4,456

 

 

4.32

 

 

79,161

 

 

3,557

 

 

4.49

 

Loans and loans held-for-sale: 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial 3

 

1,136,858

 

 

54,434

 

 

4.79

 

 

987,674

 

 

53,087

 

 

5.37

 

 

854,108

 

 

43,099

 

 

5.05

 

Tax-exempt 2

 

8,966

 

 

422

 

 

4.70

 

 

12,549

 

 

561

 

 

4.47

 

 

14,352

 

 

632

 

 

4.40

 

Real estate

 

403,166

 

 

18,100

 

 

4.49

 

 

447,891

 

 

21,220

 

 

4.74

 

 

395,302

 

 

18,794

 

 

4.75

 

Consumer

 

6,973

 

 

465

 

 

6.67

 

 

8,948

 

 

547

 

 

6.11

 

 

11,349

 

 

575

 

 

5.07

 

Total loans

 

1,555,963

 

 

73,421

 

 

4.72

 

 

1,457,062

 

 

75,415

 

 

5.18

 

 

1,275,111

 

 

63,100

 

 

4.95

 

Total earning assets

 

1,959,702

 

 

81,667

 

 

4.17

 

 

1,713,144

 

 

83,414

 

 

4.87

 

 

1,524,360

 

 

70,640

 

 

4.63

 

Allowance for loan losses

 

(18,079)

 

 

 

 

 

 

(11,318)

 

 

 

 

 

 

(10,530)

 

 

 

 

 

Cash and due from banks

 

26,460

 

 

 

 

 

 

17,625

 

 

 

 

 

 

16,828

 

 

 

 

 

Other assets

 

181,439

 

 

 

 

 

 

131,370

 

 

 

 

 

 

106,600

 

 

 

 

 

Total assets

 

$

2,149,522

 

 

 

 

 

 

$

1,850,821

 

 

 

 

 

 

$

1,637,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

408,110

 

 

$

2,521

 

 

0.62

%

 

$

381,092

 

 

$

3,586

 

 

0.94

%

 

$

432,789

 

 

$

3,246

 

 

0.75

%

Money market checking

 

458,606

 

 

2,680

 

 

0.58

 

 

331,636

 

 

5,144

 

 

1.55

 

 

245,008

 

 

2,455

 

 

1.00

 

Savings

 

45,420

 

 

6

 

 

0.01

 

 

38,324

 

 

4

 

 

0.01

 

 

44,049

 

 

29

 

 

0.07

 

IRAs

 

13,691

 

 

218

 

 

1.59

 

 

17,415

 

 

329

 

 

1.89

 

 

17,894

 

 

285

 

 

1.59

 

CDs

 

349,787

 

 

4,869

 

 

1.39

 

 

387,660

 

 

8,376

 

 

2.16

 

 

319,720

 

 

5,620

 

 

1.76

 

Repurchase agreements and federal funds sold

 

9,856

 

 

23

 

 

0.23

 

 

11,252

 

 

48

 

 

0.43

 

 

18,536

 

 

56

 

 

0.30

 

FHLB and other borrowings

 

68,407

 

 

1,049

 

 

1.53

 

 

183,812

 

 

4,704

 

 

2.56

 

 

190,686

 

 

4,259

 

 

2.23

 

Subordinated debt

 

7,568

 

 

261

 

 

3.45

 

 

12,124

 

 

770

 

 

6.35

 

 

25,774

 

 

1,756

 

 

6.81

 

Total interest-bearing liabilities

 

1,361,445

 

 

11,627

 

 

0.85

 

 

1,363,315

 

 

22,961

 

 

1.68

 

 

1,294,456

 

 

17,706

 

 

1.37

 

Noninterest-bearing demand deposits

 

502,457

 

 

 

 

 

 

258,546

 

 

 

 

 

 

171,631

 

 

 

 

 

Other liabilities

 

61,169

 

 

 

 

 

 

33,810

 

 

 

 

 

 

10,304

 

 

 

 

 

Total liabilities

 

1,925,071

 

 

 

 

 

 

1,655,671

 

 

 

 

 

 

1,476,391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

7,334

 

 

 

 

 

 

7,660

 

 

 

 

 

 

7,834

 

 

 

 

 

Common stock

 

12,047

 

 

 

 

 

 

11,762

 

 

 

 

 

 

11,082

 

 

 

 

 

Additional paid-in capital

 

130,312

 

 

 

 

 

 

118,837

 

 

 

 

 

 

107,669

 

 

 

 

 

Treasury stock

 

(2,637)

 

 

 

 

 

 

(1,084)

 

 

 

 

 

 

(1,084)

 

 

 

 

 

Retained earnings

 

77,044

 

 

 

 

 

 

61,712

 

 

 

 

 

 

42,509

 

 

 

 

 

Accumulated other comprehensive income (loss)

 

351

 

 

 

 

 

 

(3,737)

 

 

 

 

 

 

(7,143)

 

 

 

 

 

Total stockholders’ equity

 

224,451

 

 

 

 

 

 

195,150

 

 

 

 

 

 

160,867

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

2,149,522

 

 

 

 

 

 

$

1,850,821

 

 

 

 

 

 

$

1,637,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread (tax-equivalent)

 

 

 

 

 

3.32

 

 

 

 

 

 

3.19

 

 

 

 

 

 

3.26

 

Net interest income and margin (tax-equivalent) 2

 

$

70,040

 

 

3.57

%

 

 

 

$

60,453

 

 

3.53

%

 

 

 

$

52,934

 

 

3.47

%

Less: Tax-equivalent adjustments

 

 

 

$

(1,214)

 

 

 

 

 

 

$

(1,053)

 

 

 

 

 

 

$

(880)

 

 

 

Net interest spread

 

 

 

 

 

3.25

 

 

 

 

 

 

3.13

 

 

 

 

 

 

3.21

 

Net interest income and margin

 

 

 

$

68,826

 

 

3.51

%

 

 

 

$

59,400

 

 

3.47

%

 

 

 

$

52,054

 

 

3.41

%

 

1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.

2 In order to make pre-tax income and resultant yields on tax-exempt loans and investment securities comparable to those on taxable loans and investment securities, a tax-equivalent adjustment has been computed using a Federal tax rate of 21% for the periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure following this table.

3 The Company’s PPP loans, totaling $82.0 million at December 31, 2020, are included in this amount for the twelve months ended December 31, 2020.

The following table reconciles, as of the dates set forth below, net interest margin on a fully tax-equivalent basis:

 

 

Three Months Ended

 

Twelve Months Ended

(Dollars in thousands)

 

December 31,

2020

 

September 30,

2020

 

December 31,

2019

 

December 31,

2020

 

December 31,

2019

 

December 31,

2018

Net interest margin - U.S. GAAP basis

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

17,687

 

 

$

16,510

 

 

$

15,865

 

 

$

68,826

 

 

$

59,400

 

 

$

52,054

 

Average interest-earning assets

 

2,085,571

 

 

1,933,213

 

 

1,786,574

 

 

1,959,702

 

 

1,713,144

 

 

1,524,360

 

Net interest margin

 

3.37

%

 

3.39

%

 

3.52

%

 

3.51

%

 

3.47

%

 

3.41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin - non-U.S. GAAP basis

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

17,687

 

 

$

16,510

 

 

$

15,865

 

 

$

68,826

 

 

$

59,400

 

 

$

52,054

 

Plus: Impact of fully tax-equivalent adjustment

 

367

 

 

301

 

 

270

 

 

1,214

 

 

1,053

 

 

880

 

Net interest income on a fully tax-

equivalent basis

 

18,054

 

 

16,811

 

 

16,135

 

 

70,040

 

 

60,453

 

 

52,934

 

Average interest-earning assets

 

2,085,571

 

 

1,933,213

 

 

1,786,574

 

 

1,959,702

 

 

1,713,144

 

 

1,524,360

 

Net interest margin on a fully tax-

equivalent basis

 

3.44

%

 

3.45

%

 

3.58

%

 

3.57

%

 

3.53

%

 

3.47

%

 

Selected Financial Data

(Unaudited) (Dollars in thousands, except per share data)

 

 

 

Quarterly

 

Full Year

 

 

2020

 

2020

 

2019

 

2020

 

2019

 

 

Fourth Quarter

 

Third Quarter

 

Fourth Quarter

 

 

Earnings and Per Share Data:

 

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

11,838

 

 

$

6,491

 

 

$

4,095

 

 

$

37,411

 

 

$

26,564

 

Net income from discontinued operations

 

$

 

 

$

 

 

$

 

 

$

 

 

$

427

 

Net income

 

$

11,838

 

 

$

6,491

 

 

$

4,095

 

 

37,411

 

 

26,991

 

Net income available to common shareholders

 

$

11,722

 

 

$

6,375

 

 

$

3,980

 

 

36,950

 

 

26,512

 

Earnings per share from continuing operations - basic

 

$

1.00

 

 

$

0.53

 

 

$

0.34

 

 

$

3.13

 

 

$

2.22

 

Earnings per share from discontinued operations - basic

 

$

 

 

$

 

 

$

 

 

$

 

 

$

0.04

 

Earnings per share - basic

 

$

1.00

 

 

$

0.53

 

 

$

0.34

 

 

$

3.13

 

 

$

2.26

 

Earnings per share from continuing operations - diluted

 

$

0.97

 

 

$

0.53

 

 

$

0.32

 

 

$

3.06

 

 

$

2.16

 

Earnings per share from discontinued operations - diluted

 

$

 

 

$

 

 

$

 

 

$

 

 

$

0.04

 

Earnings per share - diluted

 

$

0.97

 

 

$

0.53

 

 

$

0.32

 

 

$

3.06

 

 

$

2.20

 

Cash dividends paid per common share

 

$

0.09

 

 

$

0.09

 

 

$

0.07

 

 

$

0.36

 

 

$

0.195

 

Book value per common share

 

$

20.14

 

 

$

19.07

 

 

$

17.13

 

 

$

20.14

 

 

$

17.13

 

Tangible book value per common share 8

 

$

19.73

 

 

$

18.66

 

 

$

15.20

 

 

$

19.73

 

 

$

15.20

 

Weighted-average shares outstanding - basic

 

11,752,841

 

 

11,948,989

 

 

11,869,091

 

 

11,821,574

 

 

11,713,885

 

Weighted-average shares outstanding - diluted

 

12,144,471

 

 

12,116,418

 

 

12,334,423

 

 

12,088,106

 

 

12,044,667

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

Return on average assets - continuing operations 1

 

2.1

%

 

1.2

%

 

0.8

%

 

1.7

%

 

1.4

%

Return on average assets - discontinued operations 1

 

%

 

%

 

%

 

%

 

%

Return on average assets 1

 

2.1

%

 

1.2

%

 

0.8

%

 

1.7

%

 

1.5

%

Return on average equity - continuing operations 1

 

20.1

%

 

11.3

%

 

7.9

%

 

16.7

%

 

13.6

%

Return on average equity - discontinued operations 1

 

%

 

%

 

%

 

%

 

0.2

%

Return on average equity 1

 

20.1

%

 

11.3

%

 

7.9

%

 

16.7

%

 

13.8

%

Net interest margin 2 3

 

3.44

%

 

3.45

%

 

3.58

%

 

3.57

%

 

3.53

%

Efficiency 4

 

61.0

%

 

51.6

%

 

81.6

%

 

60.5

%

 

70.3

%

Overhead 1 5

 

3.6

%

 

3.4

%

 

5.2

%

 

4.5

%

 

4.7

%

Equity to assets

 

10.3

%

 

10.6

%

 

10.9

%

 

10.3

%

 

10.9

%

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data and Ratios:

 

 

 

 

 

 

 

 

 

 

Charge-offs

 

$

300

 

 

$

111

 

 

$

332

 

 

$

2,190

 

 

$

1,009

 

Recoveries

 

$

16

 

 

$

5

 

 

$

1

 

 

$

33

 

 

$

55

 

Net loan charge-offs to total loans 1 6

 

0.1

%

 

%

 

0.1

%

 

0.1

%

 

0.1

%

Allowance for loan losses

 

$

25,844

 

 

$

25,913

 

 

$

11,775

 

 

$

25,844

 

 

$

11,775

 

Allowance for loan losses to total loans 7

 

1.8

%

 

1.8

%

 

0.9

%

 

1.8

%

 

0.9

%

Nonperforming loans

 

$

13,713

 

 

$

14,893

 

 

$

5,123

 

 

$

13,713

 

 

$

5,123

 

Nonperforming loans to total loans

 

0.9

%

 

1.0

%

 

0.4

%

 

0.9

%

 

0.4

%

1 annualized for the quarterly periods presented
2 net interest income as a percentage of average interest earning assets
3 presented on a fully tax-equivalent basis
4 noninterest expense as a percentage of net interest income and noninterest income
5 noninterest expense as a percentage of average assets
6 charge-offs less recoveries
7 excludes loans held-for-sale
8 This is a non-U.S. GAAP measure that the Company believes is helpful to interpreting financial results. For a reconciliation to the most directly comparable U.S. GAAP financial measure, please see “Non-U.S. GAAP Reconciliation” on the next page.

Non-GAAP Reconciliation: Tangible Book Value per Common Share

(Unaudited) (Dollars in thousands)

 

 

 

Quarterly

 

Full Year

 

 

2020

 

2020

 

2019

 

2020

 

2019

 

 

Fourth Quarter

 

Third Quarter

 

Fourth Quarter

 

 

Goodwill

 

$

2,350

 

 

$

2,350

 

 

$

19,630

 

 

$

2,350

 

 

$

19,630

 

Other intangibles

 

2,400

 

 

2,554

 

 

3,473

 

 

2,400

 

 

3,473

 

Total intangibles

 

4,750

 

 

4,904

 

 

23,103

 

 

4,750

 

 

23,103

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

239,483

 

 

234,116

 

 

211,936

 

 

239,483

 

 

211,936

 

Less: Preferred equity

 

(7,334)

 

 

(7,334)

 

 

(7,334)

 

 

(7,334)

 

 

(7,334)

 

Less: Total intangibles

 

(4,750)

 

 

(4,904)

 

 

(23,103)

 

 

(4,750)

 

 

(23,103)

 

Tangible common equity

 

227,399

 

 

221,878

 

 

181,499

 

 

227,399

 

 

181,499

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

227,399

 

 

221,878

 

 

181,499

 

 

227,399

 

 

181,499

 

Common shares outstanding (000s)

 

11,526

 

11,889

 

11,944

 

11,526

 

11,944

Tangible book value per common share

 

$

19.73

 

 

$

18.66

 

 

$

15.20

 

 

$

19.73

 

 

$

15.20

 

 

Contacts

Amy Baker
VP, Corporate Communications and Marketing
MVB Bank
abaker@mvbbanking.com
(844) 682-2265

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

Contacts

Amy Baker
VP, Corporate Communications and Marketing
MVB Bank
abaker@mvbbanking.com
(844) 682-2265

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