FAIRMONT, W.Va., Aug. 14, 2012 /PRNewswire/ -- MVB Financial Corp., and its bank holding company MVB Bank, Inc. (OTC: MVBF), today announced its quarterly results for the period ending June 30, 2012. Second quarter 2012 net income of $817,000 increased by 28.4% compared to the second quarter of 2011.
MVB's net interest income was $4.2 million for the second quarter of 2012, an increase of $857,000 or 25.7% from the same time period in 2011 resulting, in part, from continued firm commercial loan demand, as well as in mortgage lending, including a spike in refinancing created by historic low 30-year mortgage rates.
Deposits increased by $108.8 million, or 31.2%, to $458 million for the first six-months of 2012 compared to the first half of 2011. Despite the continued gain in deposits, interest expense decreased by $16,000 to $1.2 million in the second quarter of 2012. Total interest income in the second quarter 2012 was $5.4 million, an increase of $841,000, or 18.4% compared to the second quarter of 2011 due primarily to continued growth in loan volume.
"Our second quarter results reflect continued growth in both commercial and retail mortgage lending in addition to the refinancing trend that is keeping MVB on record pace to handle more mortgages than ever before in our history," said Larry F. Mazza, CEO of MVB Financial Corp.
"On the flip side, we are contending with a slower economic recovery due to the impact of global issues and financial industry changes that will likely lead to new regulations for all banks, including MVB. As a growing community bank we plan for regulatory and market changes while we continue to serve our clients with the most competitive products and services available. Our close relationships with clients are a distinguishing factor that enables us to continue producing notable results," said Mazza.
During the first half of 2012, MVB continued to make meaningful increases in loans made within the Small Business Lending Fund qualifications. Additionally, MVB launched its new Wealth Management Solutions, a financial investment and planning service for high net worth individuals and small business owners. This new service is making good progress in generating non-interest revenue with more than $12 million in assets now under management.
Last week, MVB announced plans to open the first of four new branches during the next year. This Fall, MVB Bank will open the first new branch in Downtown Clarksburg's historic district, the first new bank branch to open in Harrison County's financial hub in 15 years. MVB is investing approximately $500,000 for renovations and is also creating new jobs in Clarksburg. Other new branches are planned for Morgantown, Fairmont and Martinsburg.
Operating Performance Supported by Continued Strong Lending
MVB's high quality loan portfolio continues to drive the bank's asset growth with a 28.7% increase, or $94.6 million addition in both commercial and mortgage lending during the second quarter of 2012, compared to 2011. Total capital increased by $10.8 million, or 27.8%, over the same quarter last year driven by higher earnings for 2011 and the addition of $8.5 million in Small Business Lending Fund (SBLF) capital.
During the second quarter, MVB Bank was once again recognized among top-tier banks in the country by earning the 5-Star Superior rating from Bauer Financial, Inc. for its safety, soundness & financial strength.
Commenting on the outlook for the economy, the banking industry and MVB, Larry Mazza said, "Despite the economic challenges, MVB has delivered excellent performance across all of our product lines and in all of our benchmarks for growth and quality. We continue to build upon our retail client relationships through our Kasasa Cash® and Kasasa Saver® accounts which have no monthly service fees while offering clients the best interest rates and rewards available in our markets.
"We remain focused on sustaining our track record of growth while managing in a slowing economic and more competitive environment. We are committed to organic growth in the markets we already serve with more competitive products and services and new branch locations. Our future expansion plans include an active search for acquisition opportunities that build upon our market base and create shareholder value," noted Mazza.
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.