MVB Bank's First Quarter 2013 Earnings Jump 38 Percent Delivering on 'Growth with Quality' Strategy
FAIRMONT, W.Va., May 15, 2013 /PRNewswire/ -- MVB Financial Corp., (OTC Markets Group OTCQB: MVBF), and its subsidiary bank, MVB Bank, Inc., (collectively MVB), today announced quarterly results for the period ending March 31, 2013. First quarter 2013 net income of $1.2 million increased by 38% compared to the first quarter of 2012. Results for the first quarter 2013 include the addition of Potomac Mortgage Group, Inc. (PMG) for its first full quarter as a part of MVB.
MVB's net interest income was $3.5 million for the first quarter of 2013, an increase of $375,000 or 9% from the same time period in 2012. This gain was driven mainly by the continued growth in loan volume, with 14% loan growth and a sustained demand for refinancing motivated by historic low mortgage rates.
Interest expense of $1.2 million in the first quarter of 2013 was comparable to the first quarter of 2012. Total interest income in the first quarter 2013 was $5.7 million, an increase of $335,000 or 6% compared to the first quarter of 2012, a gain also due to continued growth in loan volume. Expenses nearly tripled in the quarter, largely resulting from funding and implementation of organic growth initiatives as well as costs related to the acquisition of PMG.
"The opening quarter of 2013 is evidence of our progress and growth – from new loans to increased deposits to a significant jump in net income," said Larry F. Mazza, CEO of MVB Financial Corp. "Our strategy is demonstrating success across all areas of the bank and in new non-interest income areas. We opened a new branch in the Morgantown market during the first quarter. In addition, we derived the first full quarter of accretive earnings from PMG, including expansion opportunities in northern Virginia and referrals of new clients to MVB for mortgages, and other products and services. This is a very dynamic time in the banking business and at MVB. We are continuing to execute and deliver on our 'growth with quality' strategy," added Mazza.
Operating Performance Paced by Growth Initiatives and Sustained, Quality Lending
MVB's high quality loan portfolio continued to drive asset growth in the first quarter of 2013 with a 14% increase, or $56.2 million addition in both commercial and mortgage lending compared to the same period in 2012.
Total assets increased by $184.4 million, or 32.2%, this quarter compared to the first quarter a year ago, primarily based on the PMG acquisition.
MVB's nonperforming loan ratio continues to be among the lowest in the country compared to its peers. MVB Bank is consistently recognized as a '5-Star Superior Bank' and among the financially strongest banks in the nation designated by Bauer Financial, the nation's leading bank rating and research firm. The economy of West Virginia and Virginia, where MVB operates, is expected to experience continued growth amid a slightly improving national economic outlook.
In addition to expanding its market presence in the first quarter, MVB's "Most Valuable Checking" and "Most Valuable Savings" products were re-introduced, along with new mobile banking apps and an improved online banking functionality. MVB's newest branch opened during the first quarter in Morgantown's Sabraton community. A newly-renovated branch is set to open in June in the Martinsburg market and plans are being finalized for the groundbreaking of a new office and facility expected to open in 2014 in Charleston. Additionally, MVB now offers, through wholly-owned subsidiary MVB Insurance, a complete line of property and casualty insurance for both retail/personal and commercial purposes.
Commenting on the outlook for MVB, CEO Larry Mazza said, "We are very pleased at the completion of the successful $27 million private stock offering that further strengthens our capital position going forward. We are headed in the right direction as we follow our strategic plan which enables our client base to continue growing."
"I am very encouraged by PMG's growth prospects, and the addition of new MVB branches in key growth markets of Clarksburg, Morgantown, Martinsburg and Charleston (subject to regulatory approval). MVB continues to be well-positioned in existing markets and is evaluating opportunities to expand in new areas. Our success, to date, is made possible through support and loyalty of our clients and through the efforts of a team of talented people who are among the best in the community banking business," added Mazza.
About MVB Financial Corp.
MVB Financial Corp. ("MVB Financial"; OTCQB: MVBF) was formed on January 1, 2004 as a bank holding company and, effective December 19, 2012, elected to become a financial holding company. MVB Financial features multiple subsidiaries and affiliated businesses, including MVB Bank, Inc. ("MVB Bank"), Potomac Mortgage Group, Inc. ("PMG"), and MVB Insurance, LLC ("MVB Insurance").
The Company's principal executive offices are located at 301 Virginia Avenue, Fairmont, W.Va., 26554-2777, and its telephone number is (304) 363-4800. For additional information regarding MVBF visit ir.mvbbanking.com.
The OTCQB is a market tier operated by the OTC Market Group Inc., for over-the-counter traded companies that are current in their reporting with a U.S. regulator.
All statements other than statements of historical fact included herein are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934. Such information involves risks and uncertainties that could result in MVB Financial Corp.'s (the "Company's") actual results differing from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include, but are not limited to: (i) the Company may incur loan losses due to negative credit quality trends in the future that may lead to deterioration of asset quality; (ii) the Company may incur increased charge-offs in the future; (iii) the Company could have adverse legal actions of a material nature; (iv) the Company may face competitive loss of customers; (v) the Company may be unable to manage its expense levels; (vi) the Company may have difficulty retaining key employees; (vii) changes in the interest rate environment may have results on the Company's operations materially different from those anticipated by the Company's market risk management functions; (viii) changes in general economic conditions and increased competition could adversely affect the Company's operating results; (ix) changes in other regulations and government policies affecting bank holding companies and their subsidiaries including changes in monetary policies may negatively impact the Company's operating results; (x) the effects of the Dodd-Frank Wall Street Reform and Consumer Protection Act may adversely affect the Company; (xi) the risk that the benefits from the acquisition of Potomac Mortgage Group, LLC, now Potomac Mortgage Group, Inc. ("PMG") may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement and the degree of competition in the geographic and business areas in which MVB Bank, Inc. ("MVB Bank") and PMG operate; (xii) the reaction of the companies' customers, employees and counterparties to the acquisition; (xiii) the integration of the operations of MVB Bank and PMG may be more difficult, costly or time-consuming than expected; (xiv) diversion of management time on acquisition-related issues; and, (xv) other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.
SOURCE MVB Financial Corp.