Middletown Valley Bank, Inc. Reports Results For The First Quarter 2018

MIDDLETOWN, Md., April 20, 2018 /PRNewswire/ -- Middletown Valley Bank, Inc. (OTCPink: MNVB) reported increased quarterly earnings and record total assets for the first quarter of 2018. Net income for the quarter ended March 31, 2018 was $501 thousand and earnings per share of $0.22 (share count is 948 thousand higher in 1Q18 vs. 1Q17,) as compared to net income of $495 thousand and earnings per share of $0.39 recorded for the first quarter 2017. Total assets crested $373 million in the first quarter 2018 to $373.4 million, an increase of $68.8 million (23%) versus the first quarter ended 2017.

The increase in first quarter 2018 earnings versus first quarter 2017 was primarily due to a net interest income increase of $668 thousand and reduction in income taxes of $95 thousand more than offsetting the $593 thousand increase in non-interest expense and $181 thousand increase in provision for loan losses. The Net interest income year over year increase was driven by a four basis point increase in net interest margin and a $64.6 million year over year increase in net loans. Income taxes were positively impacted by the lowered corporate tax rate under the Tax Cuts and Jobs Act of 2017. Non-interest expense growth was primarily caused by an increase in personnel and occupancy costs to support the larger institution and to build for future growth.

Net charge offs were zero in the first quarter of 2018 and 2017. Nonperforming assets increased 856 thousand in the first quarter 2018 versus 2017 which was primarily related to one loan on which a full recovery is expected. Nonperforming assets to total loans decreased to 1.46% in the quarter ended March 31, 2018 versus 1.50% for the quarter ended March 31, 2017. The ratio of Allowance for loan losses to total loans stood at 1.10% and 1.13% for the quarters ended March 31, 2018 and 2017, respectively.

The balance sheet growth mentioned previously for the first quarter ended March 31, 2018 was driven by net loan growth of $64 million (28%) to $239 million and $5.7 million increase in cash to $24.8 million which were funded by a $51 million (18%) increase in deposits and a $18 million increase in equity due to the fourth quarter 2017 common equity capital raise and retained earnings. The fourth quarter 2017 capital raise increased the share count in the first quarter 2018 by 948 thousand shares. The dividend declared in the first quarter March 31, 2018 was increased to $0.03 share from the previous quarter of $0.02 share.

This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward- looking terminology such as "believes," "expects," "intends," "may," "will," "should," "anticipates" or similar terminology. Such statements, specifically regarding the Company's intentions regarding transparency, growth and market expansion, are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, changes in interest rates, stock market liquidity, deposit flows, loan demand and real estate values, as well as changes in economic, competitive, governmental, regulatory, technological and other factors which may affect the Company specifically, its existing and target market areas or the banking industry in general. The realization or occurrence of these risks or uncertainties could cause actual results to differ materially from those addressed in the forward-looking statements.

Middletown Valley Bank
Brian M. Ropp
Executive Vice President, Chief Financial Officer
(301) 371-3029

SOURCE Middletown Valley Bank

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