MVB Bank's Earnings Jump 20% in 2011 on Strength of Community Banking Net Income Rises by 7% in Fourth Quarter; Loan Volume, Deposits Grow
FAIRMONT, W.Va., Feb. 21, 2012 /PRNewswire/ -- MVB Financial Corp. (OTC: MVBF), and its bank holding company MVB Bank, Inc., (MVB), announced the following results for its fourth quarter and full year ending December 31, 2011. Fourth quarter 2011 net income of $727,000, increased by nearly 7% compared to the same period from 2010.
Net income for fiscal year 2011 was $ 2.7 million, a 20% increase compared to total 2010 net income of $ 2.2 million.
MVB's net interest income was $3.9 million for the fourth quarter of 2011, an increase of $926,000 or 30.5% from the same time period in 2010, resulting from increased loan volume and decreased interest rates on deposits and other interest bearing liabilities.
Deposits by the end of the fourth quarter 2011 grew by $90.1 million, while interest expense decreased by $81,000 based on lower interest rates. Total interest income was $5.2 million for the fourth quarter, an increase of $845,000 or 19.5% over the fourth quarter of 2010 due primarily to greater loan volume.
"As reflected in our fourth quarter results, MVB Bank has capped another excellent year of growth, both within our existing markets and in our newest service area in Morgantown," said Larry F. Mazza, CEO of MVB Financial Corp.
"Our financial results demonstrate strong earnings and continued growth in loans, assets and deposits compared to our peers even as we invest in expansion of markets, talent and facilities. Community banks like MVB are emerging as the banks of choice in an environment where consumers and businesses seek lower fees and a personal connection to help them manage their financial capacity and resources," added Mazza.
Operating Performance Supports Growth Initiative
MVB's high quality loan portfolio continues to drive the bank's asset growth with a 27% increase, or $79.8 million addition in loans during 2011, compared to 2010. Loan demand remained strong in both commercial and mortgage lending.
"We are very pleased that an increasing number of businesses have come to trust our commercial lending team's local expertise to help them with some of their most important assets, their businesses and homes," noted Mazza.
MVB's total deposits grew to $390.7 million as of December 31, 2011, an increase of $90 million or 30% from 2010. Total assets at the end of 2011 were $533.5 million, an increase of $119.2 million or 28.8% compared to the end of 2010.
Total capital increased by $17 million, or 55.1%, over the same quarter last year driven by higher earnings for 2011, the addition of $8.5 million in Small Business Lending Fund (SBLF) capital and $6.6 million from the capital stock sale begun in 2010. During the fourth quarter, MVB's Board of Directors authorized a $ 0.10 dividend, a 10% increase from 2010, based on the stock dividend paid in early 2011.
Looking Ahead: Organic and Acquired Growth
Commenting on MVB's outlook for the current year, Mazza stated, "While we are pleased with our 2011 fiscal results, our attention is clearly on the road ahead. Our blueprint for community banking is the centerpiece of the strategic direction adopted by our Board of Directors and management team that includes an emphasis on organic and acquired growth with a focus on return on shareholder investment.
MVB is well-positioned to take advantage of growth opportunities that emerge along the way, including acquisitions of other community banks that align with MVB's vision and strategic direction. A major emphasis on meeting or exceeding our revenue targets and reducing risk by diversifying and growing our earnings stream is a top priority. Driving strong organic growth coupled with increased operational efficiency is our equation to increase value to our shareholders."
About MVB Financial Corp.
MVB Bank, Inc. is a wholly-owned subsidiary of MVB Financial Corp, with locations in Marion, Monongalia and Harrison counties in North Central West Virginia, and Berkeley and Jefferson Counties in the Eastern Panhandle of West Virginia. For additional information visit MVB's investor relations webpage at ir.mvbbanking.com
SOURCE MVB Financial Corp.