FAIRMONT, W.Va., March 28, 2014 /PRNewswire/ -- MVB Financial Corp., (OTC Markets Group OTCQB: MVBF) and its subsidiaries, including MVB Bank, Inc., MVB Mortgage and MVB Insurance, LLC, (collectively "MVB") today announced year end results for 2013.
In 2013, MVB successfully expanded its geographic footprint into the Washington/Baltimore metropolitan region and significantly grew its loan portfolio. However, like many banking and financial services businesses, MVB was effected by the sharper than expected interest rate rise in the mortgage sector during the year.
MVB continued to make significant investments to support company growth in 2014 and beyond, including acquisition costs related to the previously announced pending asset purchase of CFG Community Bank and costs related to the current common stock offering. Other investments focused on development of MVB subsidiaries, including the MVB Bank internal infrastructure, integration of MVB Mortgage, and expansion of MVB Insurance. The strategic efforts and mortgage sector environment heavily influenced the year end net income for 2013 of $4.0 million, comparable to 2012 levels.
"The 2013 results evidence our priority to build a successful financial services company, which is well-positioned in healthy markets and with a diversity of business lines to propel continued profitable growth," said Larry F. Mazza, President and Chief Executive Officer of MVB Financial.
Notably, by year end 2013, MVB's capital base increased by $26.5 million, or 39%, since December 31, 2012. Primary contributors included organic earnings generated during the year and MVB's successful capital raises in 2013.
For the fourth quarter of 2013, MVB's net interest income was $7.2 million, an increase of $2.6 million or 57% from the same time period in 2012. The increase was driven by the continued growth of MVB's balance sheet, with $176 million in total loan growth, an increase of 39%. Loan growth was led by increases in commercial loan balances as the Company continues to grow market share in its markets.
Overall full year earnings were most impacted during fourth quarter 2013 in which positive earnings were $591,000, down from $1.44 million from the same period in 2012. Loan balances in 2013 grew 39% compared to year-end 2012. MVB's total assets grew by 36% to $987 million in 2013. Deposits totaled $696 million at year-end 2013, an increase of $209 million, or 43%, over the prior year ending December 31, 2012.
During the fourth quarter 2013, a semi-annual dividend of $0.08 per share was paid to shareholders, which represents a 7% increase in payout. This dividend was paid prior to the recently approved two-for-one stock split of the company's common stock. The distribution of new shares to shareholders will be made on or about April 1, 2014.
"Our 2013 results reflect continued commitment to our 'growth with quality' goal, including strong increases in loans and deposits," said Mazza. "We are effectively executing on our intended strategic direction with planned investments in our non-interest income lines of business and the continued organic growth of our banking enterprise."
Even with significant loan growth, the credit profile of MVB's subsidiary, MVB Bank, continues to be among the lowest in the country compared to its peers. MVB Bank's nonperforming loans to total loans ratio of 0.13% represents a continuation of the company's high credit standards which are a key building block to the platform for growth. In 2013, MVB Bank once again ranked among top-tier banks in the country by earning the 5-Star Superior Bank rating from Bauer Financial, Inc., for the bank's safety, soundness and financial strength. Additionally, MVB Bank earned an A+ health rating from DepositAccounts.com during 2013 indicating its superior standing in security for depositors.
"Overall, MVB's total performance for 2013 was in line given our strategy to pursue geographic expansion and revenue diversification," said Mazza. "MVB is benefitting from our strong track record in commercial loan development, a solid balance sheet, and productive business relationships in the communities we serve. We are well-positioned for continued profitable growth."
About MVB Financial Corp.
MVB Financial Corp. ("MVB" or "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. which does business as MVB Mortgage (MVB Mortgage), 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 the actual results of MVB Financial Corp. ("MVB Financial" or the "Company") 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 certain assets and assumption of certain liabilities of CFG Community Bank 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 CFG Community Bank operate; (xii) the reaction of the MVB Bank and CFG Community Bank customers, employees and counterparties to the acquisition and integration; (xiii) the integration of the operations of MVB Bank and CFG Community Bank may be more difficult, costly or time-consuming than expected; (xiv) the risk that the new investments to support the growth of MVB Insurance, LLC ("MVB Insurance") may not be fully realized or may take longer than expected due to general economic and market conditions; (xv) diversion of management time on acquisition or diversified growth issues; and, (xvi) 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.