MVB Financial Corp. Reports Second Quarter 2017 Earnings

2017-08-04 04:46:28

(MENAFNEditorial) iCrowdNewswire - Aug 4, 2017

FAIRMONT, W.Va — MVB Financial Corp. (OTC Markets Group OTCQB: MVBF) and its subsidiaries - MVB Bank and MVB Mortgage (collectively "MVB") - reported total net income of$2.3 millionor$0.21per share basic and$0.20per share diluted for the three months ended June30, 2017, compared to$2.5 millionor$0.27per share basic and$0.25per share diluted for the three months ended June30, 2016, excluding discontinued operations.

Approximately 1.9 million shares of the Company's common stock was issued from a capital raise completed inDecember 2016and 434,783 shares of the Company's common stock was issued from a rights offering completed inApril 2017. The$0.06decrease in basic earnings per share for the three months ended June30, 2017, compared to the same time period in 2016, resulted from the additional issued shares as year-over-year net income available to common shareholders, excluding discontinued operations, remained flat.

"This sale created outstanding shares and is reflected in a short-term, negative impact on earnings per share; however, this strategic sale will help drive value for the long-term and will add liquidity to MVB stock," saidLarry F. Mazza, CEO & President of MVB Financial Corp.

"MVB Mortgage is feeling the effects of two critical happenings at the end of 2016. After the election, mortgage rates spiked; but, those rates have since fallen to lower levels to encourage mortgage volume. The mortgage volume declined in the fourth quarter of 2016, but has since picked up very strong momentum and looks promising for the rest of 2017."

SECOND QUARTER 2017 HIGHLIGHTS

Net interest income of$10.9 millionincreased$588 thousand, or 5.7% from March31, 2017, and$152 thousand, or 1.4% from the second quarter ended June30, 2016.Total assets continue to steadily grow and reached$1.5 billionas of June30, 2017.Loans of$1.1 billionas of June30, 2017 increased$25.6 million, or 2.4% from March31, 2017, and$14.9 million, or 1.4% from June30, 2016, despite a decrease in commercial real estate concentration levels, from 382% atJune 30, 2016, to 307% atMarch 31, 2017, and 306% atJune 30, 2017.Strong credit quality continued with non-performing loans to total loans of 0.46% and annualized net loan charge-offs to total loans of 0.05% at June30, 2017.

As previously announced, MVB Bank opened its thirdMorgantown, West Virginia, branch banking location and its first branch banking location inLeesburg, Virginia. The newMorgantownbranch, located at 51 Donahue Drive, Suite 115, and the newLeesburgbranch, located at 106 Harrison Street SE, Suite 100, both feature automated interactive teller systems ("AIT"). Five MVB Bank locations currently utilize the state-of-the-art AIT technology, which increases client accessibility and allows for extended hours of operation and enhanced security while keeping the human touch. The Bank is moving into its third year of utilizing this new banking technology.

"Not burdened with outdated legacy branches in declining markets and counter to bank branching trends, MVB Bank is positioned to strategically pinpoint well-performing markets for new branch locations. Our two newest branches, inMorgantown, West VirginiaandLeesburg, Virginia, have expanded our footprint in two of the best growth markets in the Tri-State region," 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 June30, 2017 totaled$1.102 billion, an increase of$25.6 million, or 2.4% when compared to loan balances at March31, 2017. In comparison to the June30, 2016 loan balance of$1.088 billion, loans increased$14.9 million, or 1.4%. Commercial loans increased$29.0 millionfrom March31, 2017, while still maintaining an appropriate level of commercial real estate concentration.

Deposits as of June30, 2017 totaled$1.100 billion, a decrease of$36.9 million, or 3.2% when compared to deposit balances at March31, 2017. In comparison to the June30, 2016 deposit balance of$1.067 billion, deposits increased$32.4 million, or 3.0%. Noninterest bearing deposit balances have steadily improved and reached$121.4 millionas of June30, 2017, an increase of$2.1 millionsince March31, 2017 and$25.0 millionsince June30, 2016. The linked quarter decrease in deposit balances at June30, 2017 is primarily attributable to a$26.6 millionseasonal decrease in public fund deposits and the maturity of$19.4 millionin non-brokered internet certificates of deposit that management deliberately let mature due to the growth in other deposits.

Net interest income for the second quarter of 2017 was$10.9 million, an increase of$588 thousand, or 5.7% from March31, 2017 and$152 thousand, or 1.4% from the second quarter ended June30, 2016. Net interest margin for the second quarter of 2017 was 3.31%, an increase of 12 basis points from March31, 2017 and 17 basis points from the second quarter ended June30, 2016.

Provision for loan losses for the second quarter of 2017 was$523 thousand, an increase of$5 thousand, or 1.0% from March31, 2017 and a decrease of$752 thousand, or 59% from the second quarter ended June30, 2016. The decrease in provision for loan loss is most attributable to a significantly lower level of charge-offs, with the overall decrease also being impacted by increased loan volume and variations in historical loss rates.

Through continued effective collection and successful workout efforts, the Company's nonperforming loans to total loans was 0.46% as of June30, 2017, a decrease of 13 basis points from March31, 2017 and 29 basis points from June30, 2016. In addition, the Company's annualized net loan charge-offs to total loans was 0.05% as of June30, 2017, a decrease of 4 basis points from March31, 2017 and 18 basis points from June30, 2016.

Noninterest income for the second quarter of 2017 was$11.6 million, an increase of$2.7 million, or 31.1% from March31, 2017 and a decrease of$434 thousand, or 3.6% from the second quarter ended June30, 2016. The linked quarter increase was primarily the result of a$3.0 millionincrease in gain on derivatives. The year over year decrease was primarily the result of a$445 thousanddecrease in mortgage fee income. MVB Mortgage noninterest income for the second quarter of 2017 was$10.1 million, an increase of$2.3 million, or 29.1% from March31, 2017 and a decrease of$833 thousand, or 7.6% from the second quarter ended June30, 2016.

Noninterest expense for the second quarter of 2017 was$18.5 million, an increase of$2.2 million, or 13.4% from March31, 2017 and$747 thousand, or 4.2% from the second quarter ended June30, 2016. The linked quarter increase was primarily driven by an increase in salaries and employee benefits related to closed mortgage volume, which increased 31.2%. The year over year increase was primarily the result of higher data processing, travel and meals and entertainment expenses related to the Bank's core processing system conversion that was completed during the second quarter of 2017.

As previously announced, onMay 17, 2017, MVB Financial Corp. declared a quarterly cash dividend of$0.025per share to shareholders of record at the close of business onJune 1, 2017, payableJune 15, 2017. This was the second quarterly dividend for 2017 and was equal to theMarch 2017payout of$0.025per share. The cash dividend of$0.05through the six months endedJune 30, 2017, increased$0.01, or 25% compared to the six months endedJune 30, 2016.

About MVB Financial Corp.

MVB is a financial holding company headquartered inFairmont, W.Va.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 Press 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 December31, 2016, as well as its other filings with the SEC, which are available on the SEC website at. 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.

MVB Financial Corp.

Financial Highlights

Condensed Consolidated Statements of Income

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

Six Months Ended
June 30,

Three
Months
Ended
June 30,

Three
Months
Ended
March 31,

Three
Months
Ended
June 30,

2017

2016

2017

2016

Interest income

26,882

26,962

13,814

13,068

13,580

Interest expense

5,682

5,525

2,920

2,762

2,838

Net interest income

21,200

21,437

10,894

10,306

10,742

Provision for loan losses

1,041

1,900

523

518

1,275

Noninterest income

20,391

20,613

11,567

8,824

12,001

Noninterest expense

34,820

33,656

18,503

16,317

17,756

Income from continuing operations, before income taxes

5,730

6,494

3,435

2,295

3,712

Income tax expense - continuing operations

1,896

2,134

1,175

721

1,254

Net income from continuing operations

3,834

4,360

2,260

1,574

2,458

Loss from discontinued operations, before income taxes

—

6,346

—

6,516

Income tax benefit - discontinued operations

—

2,411

—

2,475

Net loss from discontinued operations

—

3,935

—

4,041

Net income

3,834

8,295

2,260

1,574

6,499

Preferred dividends

251

500

122

129

314

Net income available to common shareholders

3,583

7,795

2,138

1,445

6,185

Earnings per share from continuing operations - basic

0.35

0.48

0.21

0.14

0.27

Earnings per share from discontinued operations - basic

—

0.49

—

0.50

Earnings per common shareholder - basic

0.35

0.97

0.21

0.14

0.77

Earnings per share from continuing operations - diluted

0.35

0.45

0.20

0.14

0.25

Earnings per share from discontinued operations - diluted

—

0.40

—

0.38

Earnings per common shareholder - diluted

0.35

0.85

0.20

0.14

0.63

Condensed Consolidated Balance Sheets

(Unaudited) (Dollars in thousands)

June 30, 2017

March 31, 2017

December 31, 2016

June 30, 2016

Cash and cash equivalents

17,805

18,278

17,340

28,762

Certificates of deposit with other banks

14,527

13,150

Investment securities

175,110

172,754

162,368

138,844

Loans held for sale

107,825

71,921

90,174

131,671

Loans

1,102,378

1,076,782

1,052,865

1,087,506

Allowance for loan losses

(9,748)

(9,372)

(9,101)

(9,091)

Net loans

1,092,630

1,067,410

1,043,764

1,078,415

Premises and equipment

27,462

26,079

25,081

25,846

Goodwill

18,480

Other assets

53,214

44,502

47,070

49,794

Total assets

1,507,053

1,433,951

1,418,804

1,484,962

Deposits

1,099,608

1,136,466

1,107,017

1,067,242

Borrowed funds

189,384

90,611

90,921

213,008

Other liabilities

71,227

68,149

75,241

80,693

Shareholders' equity

146,834

138,725

145,625

124,019

Total liabilities and shareholders' equity

1,507,053

1,433,951

1,418,804

1,484,962

Reportable Segments

(Unaudited)

Three Months Ended June 30, 2017

Commercial
& Retail
Banking

Mortgage
Banking

Financial
Holding
Company

Intercompany
Eliminations

Consolidated

(Dollars inthousands)

Revenues:

Interest income

12,907

1,073

(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

—

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 March 31, 2017

Commercial
& Retail
Banking

Mortgage
Banking

Financial
Holding
Company

Intercompany
Eliminations

Consolidated

(Dollars inthousands)

Revenues:

Interest income

12,312

781

(26)

13,068

Mortgage fee income

185

9,637

—

(188)

9,634

Insurance and investment services income

124

—

124

Other income

953

(1,831)

1,210

(1,266)

(934)

Total operating income

13,574

8,587

1,211

(1,480)

21,892

Expenses:

Interest expense

2,119

304

551

(212)

2,762

Salaries and employee benefits

2,657

5,955

1,350

—

9,962

Provision for loan losses

500

—

518

Other expense

4,650

2,098

875

(1,268)

6,355

Total operating expenses

9,926

8,375

2,776

(1,480)

19,597

Income (loss) from continuing operations, before income taxes

3,648

212

(1,565)

—

2,295

Income tax expense (benefit) - continuing operations

1,161

(536)

—

721

Net income (loss) from continuing operations

2,487

116

(1,029)

—

1,574

Net income (loss)

2,487

116

(1,029)

—

1,574

Preferred stock dividends

—

129

—

129

Net income (loss) available to common shareholders

2,487

116

(1,158)

—

1,445

Reportable Segments

(Unaudited)

Three Months Ended June 30, 2016

Commercial
& Retail
Banking

Mortgage
Banking

Financial
Holding
Company

Insurance

Intercompany
Eliminations

Consolidated

(Dollars inthousands)

Revenues:

Interest income

12,591

1,154

—

(166)

13,580

Mortgage fee income

(73)

9,750

—

(280)

9,397

Insurance and investment services income

122

—

122

Other income

1,404

1,157

1,252

—

(1,332)

2,481

Total operating income

14,044

12,061

1,253

—

(1,778)

25,580

Expenses:

Interest expense

2,159

572

553

—

(446)

2,838

Salaries and employee benefits

2,899

7,430

1,406

—

11,735

Provision for loan losses

1,275

—

1,275

Other expense

4,431

1,982

939

—

(1,332)

6,020

Total operating expenses

10,764

9,984

2,898

—

(1,778)

21,868

Income (loss) from continuing operations, before income taxes

3,280

2,077

(1,645)

—

3,712

Income tax expense (benefit) - continuing operations

1,012

800

(558)

—

1,254

Net income (loss) from continuing operations

2,268

1,277

(1,087)

—

2,458

Income (loss) from discontinued operations

—

6,926

(410)

—

6,516

Income tax expense (benefit) - discontinued operations

—

2,629

(154)

—

2,475

Net income (loss) from discontinued operations

—

4,297

(256)

—

4,041

Net income (loss)

2,268

1,277

3,210

(256)

—

6,499

Preferred stock dividends

—

314

—

314

Net income (loss) available to common shareholders

2,268

1,277

2,896

(256)

—

6,185

Reportable Segments

(Unaudited)

Six Months Ended June 30, 2017

Commercial &
Retail Banking

Mortgage
Banking

Financial
Holding
Company

Intercompany
Eliminations

Consolidated

(Dollars inthousands)

Revenues:

Interest income

25,218

1,854

(192)

26,882

Mortgage fee income

373

18,574

—

(361)

18,586

Insurance and investment services income

248

—

248

Other income

2,361

(694)

2,518

(2,628)

1,557

Total operating income

28,200

19,734

2,520

(3,181)

47,273

Expenses:

Interest expense

4,288

838

1,109

(553)

5,682

Salaries and employee benefits

5,924

13,101

2,735

—

21,760

Provision for loan losses

967

—

1,041

Other expense

9,716

4,143

1,829

(2,628)

13,060

Total operating expenses

20,895

18,156

5,673

(3,181)

41,543

Income (loss) from continuing operations, before income taxes

7,305

1,578

(3,153)

—

5,730

Income tax expense (benefit) - continuing operations

2,326

636

(1,066)

—

1,896

Net income (loss) from continuing operations

4,979

942

(2,087)

—

3,834

Income (loss) from discontinued operations

—

Income tax expense (benefit) - discontinued operations

—

Net income (loss) from discontinued operations

—

Net income (loss)

4,979

942

(2,087)

—

3,834

Preferred stock dividends

—

251

—

251

Net income (loss) available to common shareholders

4,979

942

(2,338)

—

3,583

Reportable Segments

(Unaudited)

Six Months Ended June 30, 2016

Commercial
& Retail
Banking

Mortgage
Banking

Financial
Holding
Company

Insurance

Intercompany
Eliminations

Consolidated

(Dollars inthousands)

Revenues:

Interest income

25,055

2,095

—

(189)

26,962

Mortgage fee income

(95)

16,859

—

(582)

16,182

Insurance and investment services income

175

—

175

Other income

2,474

1,835

2,866

—

(2,921)

4,254

Total operating income

27,609

20,789

2,867

—

(3,692)

47,573

Expenses:

Interest expense

4,199

991

1,105

—

(770)

5,525

Salaries and employee benefits

5,730

13,142

3,172

—

22,044

Provision for loan losses

1,900

—

1,900

Other expense

8,904

3,925

1,703

—

(2,922)

11,610

Total operating expenses

20,733

18,058

5,980

—

(3,692)

41,079

Income (loss) from continuing operations, before income taxes

6,876

2,731

(3,113)

—

6,494

Income tax expense (benefit) - continuing operations

2,150

1,058

(1,074)

—

2,134

Net income (loss) from continuing operations

4,726

1,673

(2,039)

—

4,360

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)

4,726

1,673

2,258

(362)

—

8,295

Preferred stock dividends

500

Net income (loss) available to common shareholders

4,726

1,673

1,758

(362)

—

7,795

Average Balances and Interest Rates

(Unaudited) (Dollars in thousands)

Three Months Ended
June 30, 2017

Three Months Ended

March 31, 2017

Three Months Ended
June 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

3,277

1.47

2,734

1.48

16,369

0.49

CDs with other banks

14,456

1.94

14,527

1.93

13,150

1.89

Investment securities:

Taxable

119,553

645

2.16

108,862

546

2.03

74,999

332

1.77

Tax-exempt

53,733

418

3.12

56,280

430

3.1

60,718

437

2.88

Loans and loans held for sale:1

Commercial

725,707

8,170

4.52

746,364

7,943

4.32

755,350

8,089

4.28

Tax exempt

15,263

131

3.44

15,329

131

3.47

16,495

142

3.44

Real estate

373,353

4,201

4.51

352,144

3,764

4.33

415,126

4,285

4.13

Consumer

13,817

167

4.85

14,370

175

4.94

18,027

213

4.73

Total loans

1,128,140

12,669

4.50

1,128,207

12,013

4.32

1,204,998

12,729

4.23

Total earning assets

1,319,159

13,814

4.20

1,310,610

13,068

4.04

1,370,234

13,580

3.96

Less: Allowance for loan losses

(9,734)

(9,427)

(8,688)

Cash and due from banks

15,407

15,246

10,974

Other assets

100,205

86,215

88,287

Total assets

1,425,037

1,402,644

1,460,807

Liabilities

Deposits:

NOW

432,729

603

0.56

415,627

525

0.51

468,074

648

0.55

Money market checking

237,173

432

0.73

236,845

458

0.78

149,475

280

0.75

Savings

48,590

0.17

48,092

0.16

43,947

0.22

IRAs

16,282

1.31

16,573

1.22

16,375

1.29

CDs

256,887

855

1.33

264,626

854

1.31

320,906

944

1.18

Repurchase agreements and federal funds sold

21,268

0.36

23,113

0.30

26,816

0.25

FHLB and other borrowings

112,385

380

1.36

103,990

288

1.12

175,834

319

0.73

Subordinated debt

33,524

558

6.68

33,524

551

6.67%

33,524

553

6.60

Total interest-bearing liabilities

1,158,838

2,920

1.01

1,142,390

2,762

0.98

1,234,951

2,838

0.92

Noninterest bearing demand deposits

114,974

113,021

97,826

Other liabilities

7,698

9,226

10,173

Total liabilities

1,281,510

1,264,637

1,342,950

Stockholders' equity

Preferred stock

7,834

8,212

16,334

Common stock

10,375

10,048

8,129

Paid-in capital

96,986

93,476

74,349

Treasury stock

(1,084)

Retained earnings

32,764

31,651

22,001

Accumulated other comprehensive income

(3,348)

(4,296)

(1,872)

Total stockholders' equity

143,527

138,007

117,857

Total liabilities and stockholders' equity

1,425,037

1,402,644

1,460,807

Net interest spread

3.19

3.06

3.04

Net interest income-margin

10,894

3.31

10,306

3.19

10,742

3.14

1Non-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)

Six Months Ended
June 30, 2017

Six Months Ended
June 30, 2016

(Dollarsinthousands)

Average
Balance

Interest
Income/
Expense

Yield/
Cost

Average
Balance

Interest
Income/
Expense

Yield/
Cost

Assets

Interest-bearing deposits in banks

3,007

1.41

17,501

0.51

CDs with other banks

14,491

140

1.95

13,150

125

1.90

Investment securities:

Taxable

114,237

1,191

2.10

71,482

642

1.80

Tax-exempt

54,999

848

3.11

58,978

844

2.86

Loans and loans held for sale:1

Commercial

735,979

16,113

4.41

733,806

16,478

4.49

Tax exempt

15,296

262

3.45

16,653

288

3.46

Real estate

362,807

7,965

4.43

392,723

8,119

4.13

Consumer

14,092

342

4.89

18,168

421

4.63

Total loans

1,128,174

24,682

4.41

1,161,350

25,306

4.36

Total earning assets

1,314,908

26,882

4.12

1,322,461

26,962

4.08

Less: Allowance for loan losses

(9,581)

(8,466)

Cash and due from banks

15,327

13,313

Other assets

93,248

87,221

Total assets

1,413,902

1,414,529

Liabilities

Deposits:

NOW

424,225

1,126

0.54

474,045

1,335

0.56

Money market checking

237,010

891

0.76

130,235

474

0.73

Savings

48,342

0.17

44,405

0.23

IRAs

16,426

103

1.26

16,026

103

1.29

CDs

260,735

1,709

1.32

325,555

1,875

1.15

Repurchase agreements and federal funds sold

22,186

0.33

27,640

0.27

FHLB and other borrowings

108,210

668

1.24

144,962

545

0.75

Subordinated debt

33,524

1,109

6.67

33,524

1,105

6.59

Total interest-bearing liabilities

1,150,658

5,682

1.00

1,196,392

5,525

0.92

Noninterest bearing demand deposits

114,003

92,025

Other liabilities

8,459

9,511

Total liabilities

1,273,120

1,297,928

Stockholders' equity

Preferred stock

8,022

16,334

Common stock

10,212

8,120

Paid-in capital

95,240

74,312

Treasury stock

(1,084)

Retained earnings

32,211

21,213

Accumulated other comprehensive income

(3,819)

(2,294)

Total stockholders' equity

140,782

116,601

Total liabilities and stockholders' equity

1,413,902

1,414,529

Net interest spread

3.13

3.15

Net interest income-margin

21,200

3.25

21,437

3.24

1Non-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

2016

2017

2016

Second
Quarter

First
Quarter

Fourth
Quarter

Third
Quarter

Second
Quarter

Earnings and Per Share Data:

Net income from continuing operations

2,260

1,574

2,307

2,310

2,458

3,834

4,360

Net income from discontinued operations

—

4,041

—

3,935

Net income

2,260

1,574

2,307

2,310

6,499

3,834

8,295

Net income available to common shareholders

2,138

1,445

1,993

1,996

6,185

3,583

7,795

Earnings per share from continuing operations - basic

0.21

0.14

0.23

0.25

0.27

0.35

0.48

Earnings per share from discontinued operations - basic

—

0.50

—

0.49

Earnings per common shareholder - basic

0.21

0.14

0.23

0.25

0.77

0.35

0.97

Earnings per share from continuing operations - diluted

0.20

0.14

0.22

0.24

0.25

0.35

0.45

Earnings per share from discontinued operations - diluted

—

0.38

—

0.40

Earnings per common shareholder - diluted

0.20

0.14

0.22

0.24

0.63

0.35

0.85

Cash dividends paid per common share

0.025

0.02

0.05

0.04

Book value per common share

13.31

13.09

12.93

13.49

13.33

13.31

13.33

Weighted average shares outstanding - basic

10,343,933

9,996,544

8,212,021

8,080,690

8,078,000

10,171,198

8,070,082

Weighted average shares outstanding - diluted

12,181,433

10,009,341

10,068,733

10,434,344

10,433,120

10,172,254

9,925,573

Performance Ratios:

Return on average assets - continuing operations1

0.63

0.45

0.64

0.67

0.54

0.62

Return on average assets - discontinued operations1

—

1.11

—

0.56

Return on average equity - continuing operations1

6.30

4.56

7.02

7.32

8.34

5.45

7.48

Return on average equity - discontinued operations1

—

13.71

—

6.75

Net interest margin2

3.31

3.19

3.23

3.17

3.14

3.25

3.24

Efficiency ratio3

82.38

85.30

80.48

80.58

78.07

83.72

80.04

Overhead ratio1 4

5.19

4.65

4.69

5.18

4.86

4.93

4.76

Asset Quality Data and Ratios:

Charge-offs

163

290

713

1,018

635

453

826

Recoveries

Net loan charge-offs to total loans15

0.05

0.09

0.27

0.38

0.23

0.07

0.15

Allowance for loan losses

9,748

9,372

9,101

9,150

9,091

9,748

9,101

Allowance for loan losses to total loans6

0.88

0.87

0.86

0.85

0.84

0.88

0.84

Nonperforming loans

5,103

6,575

6,229

10,201

8,201

5,103

8,201

Nonperforming loans to total loans

0.46

0.61

0.59

0.95

0.75

0.46

0.75

Capital Ratios:

Equity to assets

9.74

9.67

10.26

8.54

8.35

9.74

8.35

Leverage ratio

9.59

9.24

9.54

7.88

7.67

9.59

7.67

Common equity Tier 1 capital ratio

10.32

10.15

10.11

7.78

7.69

10.32

7.69

Tier 1 risk-based capital ratio

11.33

11.19

11.92

9.51

9.44

11.33

9.44

Total risk-based capital ratio

14.66

14.63

15.36

12.76

12.73

14.66

12.73

1annualized for the quarterly periods presented
2net interest income as a percentage of average interest earning assets
3noninterest expense as a percentage of net interest income and noninterest income
4noninterest expense as a percentage of average assets
5charge-offs less recoveries
6excludes loans held for sale

SOURCE MVB Financial Corp.

MENAFN0408201700703403ID1095693986

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