INN Blog

More Posts
 

MVB Financial Corp. Announces Results for Second Quarter 2014

PR Newswire Association LLC

FAIRMONT, W.Va., Aug. 11, 2014 /PRNewswire/ -- MVB Financial Corp., (OTC Markets Group OTCQB: MVBF) today announced quarterly results for the period ending June 30, 2014.  MVB Financial and its subsidiaries – MVB Bank, MVB Mortgage, and MVB Insurance (collectively "MVB") – reported total net income of $969,000.  Results for the second quarter of 2014 include the impact of interest expense on funds escrowed during the capital raise for subordinated debt and preferred stock, which was announced at the end of June.  The escrow interest expense was $552,000 on a pre-tax basis.  Income before taxes was lower by 15.2 percent, or $212,000, compared to the first quarter of 2014. However, by excluding the impact of the escrow interest expense, income before taxes would have reflected an increase of 24 percent, or $340,000, also compared to first quarter of this year.  

Second Quarter 2014 Highlights

  • Net interest income grew 2.1 percent or $143,000 for the second quarter, due to growth of earning assets.  Net interest income was negatively impacted by $552,000 interest expense paid on amounts held in escrow related to subordinated debt.
  • Non-interest income increased by 23 percent, reflecting a slight recovery in the mortgage market and MVB's continued focus on topline revenue through fee income producing businesses.
  • Total loans increased by 8.6 percent, leading to an increase in total assets of 6.5 percent.

Results Compared to the Second Quarter of 2013 

  • Net interest income grew by 37.8 percent, or $1.9 million, to $6.9 million; Net interest income was negatively impacted by $552,000 interest expense paid on amounts held in escrow related to subordinated debt.
  • Non-interest income was lower by 14.5 percent, which reflects lingering challenges in mortgage activity compared to its strength in the same quarter for the prior year.
  • Net loans increased by 54.9 percent reaching $728 million, leading to an increase in total assets of 35.9 percent to $1.1 billion.
  • Total deposits grew by $216 million to $747 million, or a 40.6 percent increase.  

"We are seeing an acceleration of results on the execution of our strategic growth plan," said Larry F. Mazza, CEO of MVB Financial Corp. "These results confirm the success of the investments we have made during the past year in our infrastructure and team as we plan for the future. Our balance sheet growth, combined with a focus on fee-producing businesses, is translating to topline revenue growth, both margin and noninterest income, even though we are still subject to the volatility of the mortgage market."

Other notable events which occurred during the second quarter of 2014 include:

  • The company completed a capital raise resulting in gross proceeds of $52.8 million.  Through a series of private placements, MVB sold $15.6 million of common stock (of which $2.2 million was issued during the second quarter), $7.8 million of preferred stock, and $29.4 million of subordinated debt.  As previously noted, MVB plans to use these proceeds to fund future organic and strategic growth and for other general corporate purposes.
  • MVB Financial Corp., declared and paid a cash dividend of $0.04 per share to shareholders of record as of May 30, 2014.
  • MVB Bank is a designated 5-Star Superior Bank by Bauer Financial, the nation's leading bank rating and research firm.

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, and MVB Insurance, LLC. 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.

Free Report: How to Earn $2k a Week

Forward-Looking Statements
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, government policies, and application of regulations affecting bank holding companies and their subsidiaries, including changes in monetary policies, may negatively impact the Company's operating results and that could negatively impact or preclude current and future acquisition activities, including the proposed acquisition of certain assets and liabilities of CFG Community Bank; (x) the effects of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III may adversely affect the Company; (xi) the risk that the benefits from the proposed 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 proposed acquisition and integration; (xiii) the anticipated 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.  Any forward-looking statement speaks only as of the date on which it is made and we do not undertake any obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. 

Free Report: How to Earn $2k a Week

SOURCE MVB Financial Corp.

Wordcount:1190



USER COMMENTS:


  More Newswires

More Newswires >>
  Most Popular Newswires

More Popular Newswires >>
Hot Off the Wires  Hot off the Wires

More Hot News >>

insider icon Denotes premium content. Learn more about becoming an Insider here.
Free Report: How to Earn $2k a Week