FAIRMONT, W.Va., May 15, 2012 /PRNewswire/ -- MVB Financial Corp., and its bank holding company MVB Bank, Inc. (OTC: MVBF), today announced its quarterly results for the period ending March 31, 2012. First quarter 2012 net income of $861,000 increased by 29.3% compared to the first quarter of 2011.
MVB's net interest income was $4.2 million for the first quarter of 2012, an increase of $1 million or 32.8% from the same time period in 2011 resulting, in part, from strong commercial and mortgage loan demand.
Deposits grew by $89.1 million, or 25.4%, to $440 million by the end of the first quarter 2012 compared to the first quarter of 2011. Given the significant gain in deposits, interest expense only increased by $13,000 to $1.217 million in the first quarter of 2012. Total interest income in the first quarter 2012 was $5.379 million, an increase of $1.04 million, or 24% compared to the first quarter of 2011 due primarily to continued growth in loan volume.
"Our first quarter results reflect continued positive growth for both commercial and mortgage lending in each of our geographic markets," said Larry F. Mazza, CEO of MVB Financial Corp. "Despite the prolonged economic recovery, MVB Bank outperformed its own results from a year ago with significant increases in loan, asset and deposit growth, along with solid earnings, setting us apart from most community banks in the country," said Mazza.
"MVB's positive results continue even as we invest in market expansion, diversify our product portfolio, develop new facilities and create more jobs in West Virginia. While most banks are still in recovery mode, they're getting back 'in the market' pursuing significant increases in high quality loan volumes. To our credit, MVB never got 'out of the market' and stayed in it during the financial downturn by providing high quality loans to clients we know and trust, and who know and trust us," added Mazza.
Operating Performance Spurred by Strong Lending
MVB's high quality loan portfolio continues to drive the bank's asset growth with a 31% increase, or $4.8 million addition in both commercial and mortgage lending during the first quarter of 2012, compared to 2011.
"All of our financial indicators for growth are heading in the right direction. We are adding many new clients who value the expertise of the commercial and mortgage lending team's local expertise to help them with some of their most important assets -- their businesses and homes," noted Mazza.
Total capital increased by $10.7 million, or 28.2%, 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.
"I'm pleased to report that MVB Bank was recently named among the top-tier banks in the country and the number one bank in West Virginia offering small business loans through the government's Small Business Lending Fund. As a community-focused bank, we continue to reach out to veterans as well as women or minority-owned small businesses in West Virginia to assist those who qualify within our lending standards," added Mazza.
MVB's Board of Directors declared a $ 0.07 per share semi-annual cash dividend, a 40% increase, for shareholders of record as of May 31, 2012, payable June 15, 2012. The move to a twice a year dividend payment is aligned with the goal for shareholders to continue investing in MVB's future growth. Further, it is a strong indicator of the Board's confidence in MVB's growth prospects.
Looking Ahead: Managing Growth in a More Competitive Environment
Commenting on MVB's outlook for the current quarter, Mazza stated, "We remain focused on sustaining our track record of growth while managing in what we anticipate to be a more competitive environment in this economic recovery. We are committed to organic expansion in the markets we already serve with competitive products and services as well as new branch locations. Our plans include an active search for acquisitions in our geographic footprint that create shareholder value.
"MVB Bank has long been a leader in reward checking and savings accounts. Launched in March, our Kasasa Cash® and Kasasa Saver® accounts are poised to take full advantage of a national initiative to show the value of consumer-friendly products and relationships with community banks. Early results show that we are gaining new clients from other financial institutions because Kasasa accounts have no monthly service fees while offering consumers high interest and rewards.
"Our entire team is focused on meeting or exceeding revenue targets and reducing risk by diversifying and growing our earnings stream. As we grow, we are constantly seeking opportunities for operational efficiencies in an effort 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.