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MVB Financial Corp. Reports Third Quarter 2017 Earnings

FAIRMONT, W.Va., Nov. 2, 2017 /PRNewswire/ -- MVB Financial Corp. (OTC Markets Group OTCQB: MVBF) and its subsidiaries – MVB Bank and MVB Mortgage (collectively "MVB") – reported net income of $2.3 million or $0.21 per share basic and $0.21 per share diluted for the three months ended September 30, 2017, compared to $2.3 million or $0.25 per share basic and $0.24 per share diluted for the three months ended September 30, 2016.

Third quarter produced solid growth, a significant rise in stock price and an historic moment for MVB Financial Corp. - application for The Nasdaq® Capital Market. If the application is approved, MVB would be the first West Virginia company in 10 years, and the first West Virginia bank in 18 years, to be listed on The Nasdaq.

"Truly positive was the significant rise in MVB's stock price, which reached a new 52-week high during the third quarter. Without doubt, MVB is gaining notice from investors," said Larry F. Mazza, CEO and President, MVB Financial Corp. "MVB experienced an increase of more than 3 percent in deposit growth or nearly $40 million and net income available to common shareholders grew at a 10 percent pace in the third quarter when compared to the same quarter last year. For the remainder of 2017, we are solidly focused on maximizing our performance, especially in asset growth and expense control, and in developing our priorities for 2018. The best for MVB is yet to come."

Approximately 1.9 million shares of the Company's common stock was issued from a capital raise completed in December 2016 and 434,783 shares of the Company's common stock was issued from a rights offering completed in April 2017. These additional issued shares resulted in a $0.06 decrease in basic earnings per share for the three months ended September 30, 2017, compared to the same time period in 2016, while a $199 thousand increase in third quarter 2017 net income available to common shareholders versus third quarter 2016, resulted in a $0.02 increase in basic earnings per share.

THIRD QUARTER 2017 HIGHLIGHTS

  • Net interest income of $11.4 million increased $520 thousand, or 4.8% from June 30, 2017, and $685 thousand, or 6.4% from the third quarter ended September 30, 2016.
  • Total assets continue to steadily grow and reached $1.5 billion as of September 30, 2017.
  • Deposits of $1.2 billion as of September 30, 2017 increased $65.6 million, or 6.0% from June 30, 2017, and increased $38.4 million, or 3.4% from September 30, 2016. Noninterest bearing deposit balances have steadily improved and reached $121.5 million as of September 30, 2017, an increase of $15.7 million since September 30, 2016.
  • Strong credit quality continued with non-performing loans to total loans of 0.60% and annualized net loan charge-offs to total loans of 0.16% at September 30, 2017.

Third quarter 2017 saw two new, high technology MVB branches open in strong markets: Morgantown, West Virginia, and Leesburg, Virginia.

"MVB remains committed to high technology, high touch branch banking that does not follow the traditional legacy type branches, but instead moves toward the use of client-friendly technology and strong, positive relationships," Mazza said.

In 2016, management focused on diversifying its lending to reduce commercial real estate concentration levels. This coupled with higher than usual loan payoffs, reflected a smaller total loan growth than anticipated for the quarter. Loans as of September 30, 2017 totaled $1.094 billion, a decrease of $7.9 million, or 0.7% when compared to loan balances at June 30, 2017. In comparison to the September 30, 2016 balance, loans increased $18.4 million, or 1.7%.

"The commercial pipeline is stronger today. A very positive factor, especially for leveraging future growth, has been MVB's strong attention to establishing lending processes including robust monitoring of economic and other risk factors across the different types of lending done by MVB. We believe this exceeds regulatory expectations and gives us a competitive advantage," Mazza said.

Deposits as of September 30, 2017 totaled $1.165 billion, an increase of $65.6 million, or 6.0% when compared to deposit balances at June 30, 2017. In comparison to the September 30, 2016 deposit balance of $1.127 billion, deposits increased $38.4 million, or 3.4%. Noninterest bearing deposit balances have steadily improved and reached $121.5 million as of September 30, 2017, an increase of $15.7 million since September 30, 2016.

Net interest income for the third quarter of 2017 was $11.4 million, an increase of $520 thousand, or 4.8% from June 30, 2017 and $685 thousand, or 6.4% from the third quarter ended September 30, 2016. Net interest margin for the third quarter of 2017 was 3.37%, an increase of 6 basis points from June 30, 2017 and 20 basis points from the quarter ended September 30, 2016. Increased interest rates and an emphasis on loan yields helped to increase net interest income, despite higher than anticipated loan payoffs in 2017 and an ongoing focus on maintaining an appropriate level of commercial real estate concentration.

Provision for loan losses for the third quarter of 2017 was $96 thousand, a decrease of $427 thousand, or 81.6% from June 30, 2017 and a decrease of $979 thousand, or 91.1% from the third quarter ended September 30, 2016. The decrease in provision for loan loss is most attributable to historical loss rates that have declined substantially, which is the result of a significantly lower level of charge-offs in the current year versus the prior year, as well as the use of updated peer historical loan loss rates within the allowance for loan loss methodology. Meanwhile, the overall decrease was also impacted by decreased loan volume.

Through continued effective collection and successful workout efforts, the Company's nonperforming loans to total loans continues to be low and was 0.60% as of September 30, 2017, an increase of 14 basis points from June 30, 2017 and a decrease of 33 basis points from September 30, 2016. In addition, the Company's annualized net loan charge-offs to total loans was 0.16% as of September 30, 2017, an increase of 11 basis points from June 30, 2017 and a decrease of 21 basis points from September 30, 2016.

Noninterest income for the third quarter of 2017 was $10.2 million, a decrease of $1.4 million, or 12.2% from June 30, 2017 and a decrease of $2.4 million, or 18.9% from the third quarter ended September 30, 2016. The linked quarter decrease was primarily the result of a $2.3 million decrease in gain on derivatives. The year over year decrease was primarily the result of a $1.3 million decrease in gain on derivatives, a $374 thousand decrease in gain on sale of securities, and a $650 thousand decrease in mortgage fee income. Both decreases in the gain on derivatives was primarily attributable to a decrease in closed loan volume. MVB Mortgage noninterest income for the third quarter of 2017 was $8.8 million, a decrease of $1.3 million, or 13.0% from June 30, 2017 and a decrease of $2.2 million, or 20.1% from the third quarter ended September 30, 2016.

Noninterest expense for the third quarter of 2017 was $18.0 million, a decrease of $537 thousand, or 2.9% from June 30, 2017 and $773 thousand, or 4.1% from the third quarter ended September 30, 2016. The linked quarter and year over year decrease was primarily the result of a decrease in salaries and employee benefits related to closed mortgage loan volume, which decreased by 8.8% and 11.2%, respectively. Both the linked quarter and year over year decreases were also the result of decreased data processing fees related to the core system conversion that the bank implemented in the second quarter of 2017.

As previously announced, on August 16, 2017, MVB Financial Corp. declared a quarterly cash dividend of $0.025 per share to shareholders of record at the close of business on September 1, 2017, payable September 15, 2017. This was the third quarterly dividend for 2017 and was equal to the March and June 2017 payouts of $0.025 per share. The cash dividend of $0.075 through the nine months ended September 30, 2017, increased $0.015, or 25% compared to the nine months ended September 30, 2016.

About MVB Financial Corp.

MVB is a financial holding company headquartered in Fairmont, West Virginia. Through its subsidiary, MVB Bank, Inc., and the bank's subsidiary, MVB Mortgage, the company provides financial services to individuals and corporate clients in the Mid-Atlantic region.

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.

For more information, please visit ir.mvbbanking.com.

Forward-looking Statements

MVB Financial Corp. has made forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in this Earnings Release. These forward-looking statements are based on current expectations about the future and subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations of the Company and its subsidiaries. When words such as "believes," "expects," "anticipates," "may," or similar expressions occur in this Earnings Release, the Company is making forward-looking statements. Note that many factors could affect the future financial results of the Company and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in the forward-looking statements contained in this Earnings Release. Those factors include, but are not limited to: credit risk, changes in market interest rates, inability to achieve merger-related synergies, competition, economic downturn or recession, and government regulation and supervision. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, as well as its other filings with the SEC, which are available on the SEC website at www.sec.gov. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements.

Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company's financial statements when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information in this announcement is subject to change.

Questions or comments concerning this Earnings Release should be directed to:

MVB Financial Corp.

Financial Highlights


Condensed Consolidated Statements of Income

(Unaudited) (Dollars in thousands, except per share data)




Nine Months Ended
September 30,


Three Months
Ended
September 30,


Three Months
Ended June 30,


Three Months
Ended
September 30,



2017


2016


2017


2017


2016

Interest income


$

41,512



$

40,485



$

14,630



$

13,814



$

13,523


Interest expense


8,898



8,319



3,216



2,920



2,794


Net interest income


32,614



32,166



11,414



10,894



10,729


Provision for loan losses


1,137



2,975



96



523



1,075


Noninterest income


30,549



33,139



10,158



11,567



12,526


Noninterest expense


52,786



52,395



17,966



18,503



18,739


Income from continuing operations, before income taxes


9,240



9,935



3,510



3,435



3,441


Income tax expense - continuing operations


3,088



3,265



1,192



1,175



1,131


Net income from continuing operations


6,152



6,670



2,318



2,260



2,310


Income from discontinued operations, before income taxes




6,346








Income tax benefit - discontinued operations




2,411








Net income from discontinued operations




3,935








Net income


$

6,152



$

10,605



$

2,318



$

2,260



$

2,310


Preferred dividends


374



814



123



122



314


Net income available to common shareholders


$

5,778



$

9,791



$

2,195



$

2,138



$

1,996













Earnings per share from continuing operations - basic


$

0.56



$

0.73



$

0.21



$

0.21



$

0.25


Earnings per share from discontinued operations - basic


$



$

0.49



$



$



$


Earnings per common shareholder - basic


$

0.56



$

1.22



$

0.21



$

0.21



$

0.25













Earnings per share from continuing operations - diluted


$

0.56



$

0.68



$

0.21



$

0.20



$

0.24


Earnings per share from discontinued operations - diluted


$



$

0.40



$



$



$


Earnings per common shareholder - diluted


$

0.56



$

1.08



$

0.21



$

0.20



$

0.24


Condensed Consolidated Balance Sheets

(Unaudited) (Dollars in thousands)




September 30, 2017


June 30, 2017


December 31, 2016


September 30, 2016

Cash and cash equivalents


$

20,272



$

17,805



$

17,340



$

28,804


Certificates of deposit with other banks


14,778



14,527



14,527



7,174


Investment securities


187,348



175,110



162,368



152,171


Loans held for sale


69,057



107,825



90,174



123,109


Loans


1,094,467



1,102,378



1,052,865



1,076,073


Allowance for loan losses


(9,396)



(9,748)



(9,101)



(9,150)


Net loans


1,092,630



1,092,630



1,043,764



1,066,923


Premises and equipment


27,189



27,462



25,081



25,440


Goodwill


18,480



18,480



18,480



18,480


Other assets


41,836



53,214



47,070



46,494


Total assets


$

1,471,590



$

1,507,053



$

1,418,804



$

1,468,595











Deposits


$

1,165,199



$

1,099,608



$

1,107,017



$

1,126,790


Borrowed funds


84,403



189,384



90,921



136,112


Other liabilities


73,011



71,227



75,241



80,316


Shareholders' equity


148,977



146,834



145,625



125,377


Total liabilities and shareholders' equity


$

1,471,590



$

1,507,053



$

1,418,804



$

1,468,595


Reportable Segments

(Unaudited)


Three Months Ended September 30, 2017


Commercial &
Retail Banking


Mortgage
Banking


Financial
Holding
Company


Intercompany
Eliminations


Consolidated

(Dollars in thousands)






Revenues:











Interest income


$

13,432



$

1,352



$

1



$

(155)



$

14,630


Mortgage fee income


200



10,042





(224)



10,018


Insurance and investment services income


147









147


Other income


1,319



(1,279)



1,250



(1,297)



(7)


Total operating income


15,098



10,115



1,251



(1,676)



24,788


Expenses:











Interest expense


2,347



684



565



(380)



3,216


Salaries and employee benefits


3,107



6,768



1,374





11,249


Provision for loan losses




96







96


Other expense


4,822



2,100



1,091



(1,296)



6,717


Total operating expenses


10,276



9,648



3,030



(1,676)



21,278


Income (loss) from continuing operations, before
income taxes


4,822



467



(1,779)





3,510


Income tax expense (benefit) - continuing operations


1,605



191



(604)





1,192


Net income (loss) from continuing operations


3,217



276



(1,175)





2,318


Net income (loss)


$

3,217



$

276



$

(1,175)



$



$

2,318


Preferred stock dividends






123





123


Net income (loss) available to common shareholders


$

3,217



$

276



$

(1,298)



$



$

2,195


Reportable Segments

(Unaudited)


Three Months Ended June 30, 2017


Commercial &
Retail Banking


Mortgage
Banking


Financial
Holding
Company


Intercompany
Eliminations


Consolidated

(Dollars in thousands)






Revenues:











Interest income


$

12,907



$

1,073



$

1



$

(167)



$

13,814


Mortgage fee income


188



8,937





(173)



8,952


Insurance and investment services income


124









124


Other income


1,405



1,137



1,307



(1,358)



2,491


Total operating income


14,624



11,147



1,308



(1,698)



25,381


Expenses:











Interest expense


2,168



534



558



(340)



2,920


Salaries and employee benefits


3,267



7,147



1,384





11,798


Provision for loan losses


467



56







523


Other expense


5,065



2,044



954



(1,358)



6,705


Total operating expenses


10,967



9,781



2,896



(1,698)



21,946


Income (loss) from continuing operations, before
income taxes


3,657



1,366



(1,588)





3,435


Income tax expense (benefit) - continuing operations


1,165



540



(530)





1,175


Net income (loss) from continuing operations


2,492



826



(1,058)





2,260


Net income (loss)


$

2,492



$

826



$

(1,058)



$



$

2,260


Preferred stock dividends






122





122


Net income (loss) available to common shareholders


$

2,492



$

826



$

(1,180)



$



$

2,138


Reportable Segments

(Unaudited)


Three Months Ended September 30, 2016


Commercial &
Retail Banking


Mortgage
Banking


Financial
Holding
Company


Insurance


Intercompany
Eliminations


Consolidated

(Dollars in thousands)







Revenues:













Interest income


$

12,528



$

1,183



$

1



$



$

(189)



$

13,523


Mortgage fee income


(95)



11,003







(240)



10,668


Insurance and investment services income


128











128


Other income


1,687



(31)



1,444





(1,370)



1,730


Total operating income


14,248



12,155



1,445





(1,799)



26,049


Expenses:













Interest expense


2,113



552



560





(431)



2,794


Salaries and employee benefits


2,924



7,724



1,735







12,383


Provision for loan losses


1,075











1,075


Other expense


4,782



2,054



888





(1,368)



6,356


Total operating expenses


10,894



10,330



3,183





(1,799)



22,608


Income (loss) from continuing operations,
before income taxes


3,354



1,825



(1,738)







3,441


Income tax expense (benefit) - continuing
operations


1,027



704



(600)







1,131


Net income (loss) from continuing
operations


2,327



1,121



(1,138)







2,310


Income (loss) from discontinued operations













Income tax expense (benefit) -
discontinued operations


$



$



$



$



$



$


Net income (loss) from discontinued
operations


$



$



$



$



$



$


Net income (loss)


$

2,327



$

1,121



$

(1,138)



$



$



$

2,310


Preferred stock dividends






314







314


Net income (loss) available to common
shareholders


$

2,327



$

1,121



$

(1,452)



$



$



$

1,996


Reportable Segments

(Unaudited)


Nine Months Ended September 30, 2017


Commercial &
Retail Banking


Mortgage
Banking


Financial
Holding
Company


Intercompany
Eliminations


Consolidated

(Dollars in thousands)






Revenues:











Interest income


$

38,651



$

3,206



$

3



$

(348)



$

41,512


Mortgage fee income


573



28,616





(585)



28,604


Insurance and investment services income


395









395


Other income


3,679



(1,973)



3,768



(3,924)



1,550


Total operating income


43,298



29,849



3,771



(4,857)



72,061


Expenses:











Interest expense


6,635



1,521



1,674



(932)



8,898


Salaries and employee benefits


9,030



19,870



4,109





33,009


Provision for loan losses


966



171







1,137


Other expense


14,539



6,244



2,919



(3,925)



19,777


Total operating expenses


31,170



27,806



8,702



(4,857)



62,821


Income (loss) from continuing operations, before
income taxes


12,128



2,043



(4,931)





9,240


Income tax expense (benefit) - continuing operations


3,931



827



(1,670)





3,088


Net income (loss) from continuing operations


8,197



1,216



(3,261)





6,152


Income (loss) from discontinued operations











Income tax expense (benefit) - discontinued operations


$



$



$



$



$


Net income (loss) from discontinued operations


$



$



$



$



$


Net income (loss)


$

8,197



$

1,216



$

(3,261)



$



$

6,152


Preferred stock dividends






374





374


Net income (loss) available to common shareholders


$

8,197



$

1,216



$

(3,635)



$



$

5,778


Reportable Segments

(Unaudited)


Nine Months Ended September 30, 2016


Commercial &
Retail Banking


Mortgage
Banking


Financial
Holding
Company


Insurance


Intercompany
Eliminations


Consolidated

(Dollars in thousands)







Revenues:













Interest income


$

37,583



$

3,278



$

2



$



$

(378)



$

40,485


Mortgage fee income


(190)



27,862







(822)



26,850


Insurance and investment services income


303











303


Other income


4,161



1,804



4,310





(4,289)



5,986


Total operating income


41,857



32,944



4,312





(5,489)



73,624


Expenses:













Interest expense


6,312



1,543



1,665





(1,201)



8,319


Salaries and employee benefits


8,654



20,866



4,907







34,427


Provision for loan losses


2,975











2,975


Other expense


13,686



5,979



2,591





(4,288)



17,968


Total operating expenses


31,627



28,388



9,163





(5,489)



63,689


Income (loss) from continuing operations,
before income taxes


10,230



4,556



(4,851)







9,935


Income tax expense (benefit) - continuing
operations


3,177



1,762



(1,674)







3,265


Net income (loss) from continuing
operations


7,053



2,794



(3,177)







6,670


Income (loss) from discontinued operations






6,926



(580)





6,346


Income tax expense (benefit) - discontinued
operations


$



$



$

2,629



$

(218)



$



$

2,411


Net income (loss) from discontinued
operations


$



$



$

4,297



$

(362)



$



$

3,935


Net income (loss)


$

7,053



$

2,794



$

1,120



$

(362)



$



$

10,605


Preferred stock dividends






814







814


Net income (loss) available to common
shareholders


$

7,053



$

2,794



$

306



$

(362)



$



$

9,791


Average Balances and Interest Rates

(Unaudited) (Dollars in thousands)




Three Months Ended
September 30, 2017


Three Months Ended

June 30, 2017


Three Months Ended
September 30, 2016



Average
Balance


Interest
Income/
Expense


Yield/
Cost


Average
Balance


Interest
Income/
Expense


Yield/
Cost


Average
Balance


Interest
Income/
Expense


Yield/
Cost

Assets



















Interest-bearing deposits in banks


$

4,484



$

15



1.33

%


$

3,277



$

12



1.47

%


$

18,567



$

28



0.60

%

CDs with other banks


14,711



74



2.00

%


14,456



70



1.94

%


10,893



53



1.95

%

Investment securities:



















Taxable


126,880



693



2.17

%


119,553



645



2.16

%


78,943



342



1.73

%

Tax-exempt


56,264



443



3.12

%


53,733



418



3.12

%


67,033



476



2.84

%

Loans and loans held for sale: 1



















Commercial


762,650



8,742



4.55

%


725,707



8,170



4.52

%


737,134



7,916



4.30

%

Tax exempt


14,991



130



3.44

%


15,263



131



3.44

%


16,170



140



3.46

%

Real estate


349,459



4,346



4.93

%


373,353



4,201



4.51

%


409,074



4,370



4.27

%

Consumer


13,462



187



5.51

%


13,817



167



4.85

%


16,003



198



4.95

%

Total loans


1,140,562



13,405



4.66

%


1,128,140



12,669



4.50

%


1,178,381



12,624



4.29

%

Total earning assets


1,342,901



14,630



4.32

%


1,319,159



13,814



4.20

%


1,353,817



13,523



4.00

%

Less: Allowance for loan losses


(9,760)







(9,734)







(9,337)






Cash and due from banks


17,501







15,407







12,995






Other assets


123,898







100,205







89,586






Total assets


$

1,474,540







$

1,425,037







$

1,447,061

























Liabilities



















Deposits:



















NOW


$

436,493



$

675



0.61

%


$

432,729



$

603



0.56

%


$

426,096



$

530



0.50

%

Money market checking


246,160



458



0.74

%


237,173



432



0.73

%


178,579



359



0.80

%

Savings


46,807



20



0.17

%


48,590



20



0.17

%


42,811



19



0.18

%

IRAs


16,649



56



1.33

%


16,282



53



1.31

%


16,701



53



1.27

%

CDs


249,698



874



1.39

%


256,887



855



1.33

%


305,259



941



1.23

%

Repurchase agreements and federal funds
sold


25,093



20



0.32

%


21,268



19



0.36

%


26,238



17



0.26

%

FHLB and other borrowings


149,313



548



1.46

%


112,385



380



1.36

%


170,946



316



0.74

%

Subordinated debt


33,524



565



6.69

%


33,524



558



6.68

%


33,524



559



6.67

%

Total interest-bearing liabilities


1,203,737



3,216



1.06

%


1,158,838



2,920



1.01

%


1,200,154



2,794



0.93

%

Noninterest bearing demand deposits


115,343







114,974







106,097






Other liabilities


7,703







7,698







14,530






Total liabilities


1,326,783







1,281,510







1,320,781

























Stockholders' equity



















Preferred stock


7,834







7,834







16,334






Common stock


10,495







10,375







8,132






Paid-in capital


98,289







96,986







74,439






Treasury stock


(1,084)







(1,084)







(1,084)






Retained earnings


35,152







32,764







30,070






Accumulated other comprehensive income


(2,929)







(3,348)







(1,611)






Total stockholders' equity


147,757







143,527







126,280






Total liabilities and stockholders' equity


$

1,474,540







1,425,037







$

1,447,061

























Net interest spread






3.26

%






3.19

%






3.07

%

Net interest income-margin




$

11,414



3.37

%




10,894



3.31

%




$

10,729



3.17

%





1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.




Average Balances and Interest Rates

(Unaudited) (Dollars in thousands)




Nine Months Ended
September 30, 2017


Nine Months Ended
September 30, 2016

(Dollars in thousands)


Average
Balance


Interest
Income/Expense


Yield/Cost


Average
Balance


Interest
Income/Expense


Yield/Cost

Assets













Interest-bearing deposits in banks


$

3,504



$

37



1.41

%


$

17,859



$

73



0.55

%

CDs with other banks


14,566



213



1.96



12,392



178



1.92


Investment securities:













Taxable


118,497



1,884



2.13



73,987



984



1.77


Tax-exempt


55,426



1,291



3.11



61,682



1,320



2.85


Loans and loans held for sale: 1













Commercial


744,967



24,854



4.46



734,924



24,394



4.43


Tax exempt


15,193



392



3.45



16,491



428



3.46


Real estate


358,309



12,312



4.59



398,213



12,489



4.18


Consumer


13,880



529



5.10



17,441



619



4.73


Total loans


1,132,349



38,087



4.50



1,167,069



37,930



4.33


Total earning assets


1,324,342



41,512



4.19



1,332,989



40,485



4.05


Less: Allowance for loan losses


(9,641)







(8,758)






Cash and due from banks


16,060







13,206






Other assets


103,576







88,061






Total assets


$

1,434,337







$

1,425,498



















Liabilities













Deposits:













NOW


$

428,359



$

1,802



0.56



$

457,945



$

1,865



0.54

%

Money market checking


240,094



1,349



0.75



146,467



833



0.76


Savings


47,825



59



0.16



43,870



70



0.21


IRAs


16,501



159



1.29



16,252



155



1.27


CDs


257,015



2,583



1.34



318,740



2,816



1.18


Repurchase agreements and federal funds sold


23,165



56



0.32



27,169



55



0.27


FHLB and other borrowings


122,062



1,216



1.33



153,687



861



0.75


Subordinated debt


33,524



1,674



6.68



33,524



1,664



6.62


Total interest-bearing liabilities


1,168,545



8,898



1.02



1,197,654



8,319



0.93


Noninterest bearing demand deposits


114,455







96,615






Other liabilities


8,204







11,271






Total liabilities


1,291,204







1,305,540



















Stockholders' equity













Preferred stock


7,959







16,334






Common stock


10,307







8,124






Paid-in capital


96,268







74,355






Treasury stock


(1,084)







(1,084)






Retained earnings


33,202







24,294






Accumulated other comprehensive income


(3,519)







(2,065)






Total stockholders' equity


143,133







119,958






Total liabilities and stockholders' equity


$

1,434,337







$

1,425,498



















Net interest spread






3.17







3.12


Net interest income-margin




$

32,614



3.29

%




$

32,166



3.22

%

1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.

Selected Financial Data

(Unaudited) (Dollars in thousands, except per share data)




Quarterly


Year-to-Date



2017


2017


2017


2016


2016


2017


2016



Third
Quarter


Second
Quarter


First
Quarter


Fourth
Quarter


Third
Quarter



Earnings and Per Share Data:















Net income from continuing operations


$

2,318



$

2,260



$

1,574



$

2,307



$

2,310



$

6,152



$

6,670


Net income from discontinued operations














3,935


Net income


2,318



2,260



1,574



2,307



6,499



6,152



10,605


Net income available to common shareholders


2,195



2,138



1,445



1,993



1,996



5,778



9,791


Earnings per share from continuing operations - basic


0.21



0.21



0.14



0.23



0.25



0.56



0.73


Earnings per share from discontinued operations - basic














0.49


Earnings per common shareholder - basic


0.21



0.21



0.14



0.23



0.77



0.56



1.22


Earnings per share from continuing operations - diluted


0.21



0.20



0.14



0.22



0.24



0.56



0.68


Earnings per share from discontinued operations - diluted














0.40


Earnings per common shareholder - diluted


0.21



0.20



0.14



0.22



0.63



0.56



1.08


Cash dividends paid per common share


0.025



0.025



0.025



0.02



0.02



0.08



0.06


Book value per common share


13.51



13.31



13.09



12.93



13.49



13.51



13.49


Weighted average shares outstanding - basic


10,443,443



10,343,933



9,996,544



8,212,021



8,080,690



10,262,944



8,073,644


Weighted average shares outstanding - diluted


12,410,070



12,181,433



10,009,341



10,068,733



10,434,344



10,288,534



9,935,209

















Performance Ratios:















Return on average assets - continuing operations 1


0.63

%


0.63

%


0.45

%


0.64

%


0.64

%


0.57

%


0.62

%

Return on average assets - discontinued operations 1


%


%


%


%


%


%


0.37

%

Return on average equity - continuing operations 1


6.28

%


6.30

%


4.56

%


7.02

%


7.32

%


5.73

%


7.41

%

Return on average equity - discontinued operations 1


%


%


%


%


%


%


4.37

%

Net interest margin 2


3.37

%


3.31

%


3.19

%


3.23

%


3.17

%


3.29

%


3.22

%

Efficiency ratio 3


83.28

%


82.38

%


85.30

%


80.48

%


80.58

%


83.57

%


80.23

%

Overhead ratio 1 4


4.87

%


5.19

%


4.65

%


4.69

%


5.18

%


4.91

%


4.90

%
















Asset Quality Data and Ratios:















Charge-offs


$

472



$

163



$

290



$

713



$

1,018



$

925



$

1,844


Recoveries


24



16



43



8



2



83



13


Net loan charge-offs to total loans 1 5


0.16

%


0.05

%


0.09

%


0.27

%


0.38

%


0.10

%


0.23

%

Allowance for loan losses


9,396



9,748



9,372



9,101



9,150



9,396



9,150


Allowance for loan losses to total loans 6


0.86

%


0.88

%


0.87

%


0.86

%


0.85

%


0.86

%


0.85

%

Nonperforming loans


6,559



5,103



6,575



6,229



10,201



6,559



10,201


Nonperforming loans to total loans


0.60

%


0.46

%


0.61

%


0.59

%


0.95

%


0.60

%


0.95

%
















Capital Ratios:















Equity to assets


10.12

%


9.74

%


9.67

%


10.26

%


8.54

%


10.12

%


8.54

%

Leverage ratio


9.41

%


9.59

%


9.24

%


9.54

%


7.88

%


9.41

%


7.88

%

Common equity Tier 1 capital ratio


10.76

%


10.32

%


10.15

%


10.11

%


7.78

%


10.76

%


7.78

%

Tier 1 risk-based capital ratio


11.79

%


11.33

%


11.19

%


11.92

%


9.51

%


11.79

%


9.51

%

Total risk-based capital ratio


15.18

%


14.66

%


14.63

%


15.36

%


12.76

%


15.18

%


12.76

%

1 annualized for the quarterly periods presented











2 net interest income as a percentage of average interest earning assets











3 noninterest expense as a percentage of net interest income and noninterest income











4 noninterest expense as a percentage of average assets











5 charge-offs less recoveries











6 excludes loans held for sale











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SOURCE MVB Financial Corp.