MVB Financial Corp. Announces Third Quarter 2022 Results

MVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial,” “MVB” or the “Company”), the holding company for MVB Bank, Inc. ("MVB Bank"), today announced financial results for the third quarter of 2022, with reported net income of $2.7 million, or $0.22 basic and $0.21 diluted earnings per share.

 

 

Quarterly

 

Year-to-Date

 

 

2022

 

2022

 

2021

 

2022

 

2021

 

 

Third Quarter

 

Second Quarter

 

Third Quarter

 

 

Net income

 

$

2,718

 

$

2,956

 

$

11,828

 

$

8,538

 

$

29,160

Earnings per share - basic

 

$

0.22

 

$

0.24

 

$

1.00

 

$

0.70

 

$

2.49

Earnings per share - diluted

 

$

0.21

 

$

0.23

 

$

0.92

 

$

0.66

 

$

2.32

“During the third quarter, we continued to drive strong loan production, counter-cyclical growth in low-cost deposits and net interest margin expansion, resulting in robust growth in net interest income, while maintaining strong asset quality,” said Larry F. Mazza, Chief Executive Officer, MVB Financial. “In addition, MVB’s year-to-date results evidenced significant progress in our efforts to drive growth in Fintech fee income, further diversifying our revenue base.”

Mazza added, “Amidst these favorable underlying trends, challenges also emerged. Higher interest rates and a slowing economy impacted our mortgage business and fee income and, coupled with elevated provisioning for loan losses related to our strong loan growth, impacted our earnings for the quarter.”

“As demonstrated throughout MVB’s history, and through our corporate values, we are ‘Adaptive’ as market conditions change. While we continue to successfully execute on our MVB-F1: Success Loves Speed Strategy, we are adjusting to wet track conditions by sharpening our focus. Specifically, we are implementing initiatives that are expected to drive a 12% reduction from MVB’s annualized third quarter 2022 noninterest expense base, with 75% of the projected cost savings to be achieved by the end of the first quarter 2023, and the remainder expected to be fully captured by the end of the third quarter of 2023.”

THIRD QUARTER 2022 HIGHLIGHTS

  • Strong growth in low-cost deposits amidst cyclical industry headwinds
    • Total deposits were $2.70 billion as of September 30, 2022, an increase of $82.0 million, or 3.1%, from June 30, 2022 and $298.0 million, or 12.4%, from September 30, 2021.
    • Noninterest-bearing (“NIB”) deposits were $1.41 billion as of September 30, 2022, an increase of $68.9 million, or 5.1%, from June 30, 2022 and $412.4 million, or 41.3%, from September 30, 2021. NIB deposits represented 52% of total deposits as of September 30, 2022, as compared to 51% and 42% as of June 30, 2022 and September 30, 2021, respectively.
    • The cost of funds was 59 basis points for the quarter ended September 30, 2022 up 37 basis points compared to the quarter ended June 30, 2022 and 35 basis points compared to the quarter ended September 30, 2021. The increase from the prior quarter primarily reflected a change in deposit mix based on average balances, led by growth in average interest-bearing deposits as compared to relatively consistent average NIB deposits, as well as higher interest rates and increased Federal Home Loan Banks borrowings during the quarter. The increase in cost of funds compared to the prior year period mostly reflected higher interest rates, partially offset by the relatively higher contribution of NIB deposits relative to the prior year.
  • Loan growth and margin expansion drive our strong growth in net interest income
    • Net interest income on a tax-equivalent basis totaled $30.1 million for the quarter ended September 30, 2022, up $3.2 million, or 11.8%, and $10.7 million, or 55.1%, from the quarters ended June 30, 2022 and September 30, 2021, respectively.
    • Total loan balances of $2.47 billion as of September 30, 2022 increased by $256.3 million, or 11.6%, compared to June 30, 2022 and $707.2 million, or 40.1%, compared to September 30, 2021.
    • Loans held-for-sale were $20.0 million as of September 30, 2022, compared to $11.9 million as of June 30, 2022 and none as of September 30, 2021, led by MVB Bank’s Small Business Administration (“SBA”) lending growth vehicle.
    • On a tax-equivalent basis, net interest margin for the quarter ended September 30, 2022 was 4.25%, an increase of 15 basis points versus the quarter ended June 30, 2022 and an increase of 100 basis points versus the quarter ended September 30, 2021. The quarter over quarter increase in net interest margin was due primarily to strong loan growth, higher loan yields, and significantly lower cash balances, partially offset by an increase in funding costs.
  • Asset quality indicators remained stable
    • Nonperforming loans totaled $22.4 million, or 0.9% of total loans, as of September 30, 2022, as compared to $19.3 million, or 0.9% of total loans, as of June 30, 2022, and $17.5 million, or 1.0% of total loans, as of September 30, 2021. Criticized loans as a percentage of total loans were 3.4%, as compared to 4.0% as of June 30, 2022, and 6.5% as of September 30, 2021.
    • Net charge-offs were $1.3 million, or 0.22% of total loans on an annualized basis, for the quarter ended September 30, 2022, compared to $1.2 million, or 0.21% of total loans on an annualized basis, for the quarter ended June 30, 2022. Net charge-offs on an annualized basis, for the quarter ended September 30, 2021, were not significant.
    • The provision for loan losses totaled $5.1 million for the quarter ended September 30, 2022, compared to $5.1 million for the quarter ended June 30, 2022, and $0.4 million for the quarter ended September 30, 2021. Allowance for loan losses was 1.07% of total loans as of September 30, 2022, an increase of four basis points from June 30, 2022 and a decline of 36 basis points from September 30, 2021. Approximately 84% of the increase in the allowance for loan losses for the quarter ended September 30, 2022 is attributable to strong growth in our loan balances during the quarter.
  • Quarter over quarter expense growth largely held in check
    • Noninterest expense totaled $30.0 million for the quarter ended September 30, 2022, an increase of $0.1 million, or 0.5%, from the quarter ended June 30, 2022 and an increase of $4.1 million, or 16.0%, from the quarter ended September 30, 2021. The increase from the quarter ended June 30, 2022 primarily reflects an increase in other operating expenses of $0.5 million, or 24.1%, and an increase in equipment depreciation and maintenance of $0.3 million, or 19.9%, mostly offset by a decrease in salaries and employee benefits of $0.7 million, or 3.5%. The increase relative to the prior year period primarily reflects higher salaries and employee benefits costs of $1.8 million, or 10.8%, and higher other operating expenses of $1.3 million, or 116.1%.

INCOME STATEMENT

Net interest income on a tax-equivalent basis totaled $30.1 million for the quarter ended September 30, 2022, up $3.2 million, or 11.8%, from the quarter ended June 30, 2022 and $10.7 million, or 55.1%, from the quarter ended September 30, 2021. The increase in net interest income compared to both periods generally reflects strong loan growth, primarily driven by the Company’s strategic lending partnerships growth vehicle and broad-based growth throughout CoRe Banking business.

Interest income increased $5.8 million, or 20.7%, to $33.9 million from the quarter ended June 30, 2022 and $13.4 million, or 65.5%, from the quarter ended September 30, 2021. The tax-equivalent yield on loans was 5.26% for the quarter ended September 30, 2022, compared to 5.06% for the quarter ended June 30, 2022 and 4.25% for the quarter ended September 30, 2021. Higher loan yields generally reflect new loan production at favorable interest rates and the impact of the Fed rate increases on our commercial loan portfolio.

Interest expense increased $2.6 million, or 183.7%, from the quarter ended June 30, 2022 and increased $2.7 million, or 192.3%, from the quarter ended September 30, 2021. The cost of funds was 59 basis points for the quarter ended September 30, 2022, up 37 basis point compared to the quarter ended June 30, 2022 and 35 basis points compared to the quarter ended September 30, 2021. The increase from the prior quarter primarily reflected a change in deposit mix based on average balances, led by growth in average interest-bearing deposits as compared to relatively consistent average NIB deposits, as well as higher interest rates and increased FHLB borrowings during the quarter. The increase in cost of funds compared to the prior year period mostly reflected higher interest rates, partially offset by the relatively higher contribution of NIB deposits relative to the prior year.

On a tax-equivalent basis, net interest margin for the quarter ended September 30, 2022 was 4.25%, an increase of 15 basis points versus the quarter ended June 30, 2022 and 100 basis points versus the quarter ended September 30, 2021. Please see the table below for a reconciliation between net interest margin and net interest margin on a fully tax-equivalent basis, a non-GAAP measure. The increase in net interest margin from the quarter ended June 30, 2022 reflected the impact of strong loan growth, partially offset by an increase in deposit costs. The increase in net interest margin from the quarter ended September 30, 2021 also reflected strong loan growth and an increase in deposit costs, to a greater extent. The average loan-to-deposit ratio during the quarter ended September 30, 2022 was 92.5%, compared to 82.9% for the quarter ended June 30, 2022, and 78.9% for the quarter ended September 30, 2021.

Noninterest income totaled $8.2 million for the quarter ended September 30, 2022, a decrease of $3.7 million, or 31.2% from the quarter ended June 30, 2022 and a decrease of $13.8 million, or 62.7%, from the quarter ended September 30, 2021.

The decrease in noninterest income compared to the prior quarter is driven by decreases in equity method investment income of $1.6 million, or 286.0%, in other operating income of $0.9 million, or 51.5%, and in payment card and service charge income of $0.7 million, or 17.5%. The sale of mortgaging servicing rights in June 2022 resulted in $1.2 million of the decrease in other operating income. The decrease in payment card and service charge income is driven by decreased interchange income. The decline in equity method investment income was primarily due to lower mortgage banking revenue reflecting the continued sharp increase in market interest rates during the third quarter of 2022. Further disaggregation of the Company’s noninterest income is available below.

The decrease in noninterest income compared to the comparable quarter in the prior year is driven by a one-time gain on acquisition and divestiture activity in the quarter ended September 30, 2021 totaling $10.8 million.

Noninterest expense totaled $30.0 million for the quarter ended September 30, 2022, an increase of $0.1 million, or 0.5%, from the quarter ended June 30, 2022 and an increase of $4.1 million, or 16.0%, from the quarter ended September 30, 2021. The increase from the quarter ended June 30, 2022 in expenses primarily reflects a decrease in salaries and employee benefits of $0.7 million, or 3.5%, partially offset by an increase in other operating expenses of $0.5 million, or 24.1%. The increase relative to the prior year period primarily reflects higher salaries and employee benefits costs of $1.8 million, or 10.8% and higher other operating expenses of $1.3 million, or 116.1%. The increases in salaries and employee benefits were due to continued hiring during 2022 that resulted in a 30% increase in average full time equivalent employees for the nine months’ ended September 30, 2022 as compared to the nine months’ ended September 30, 2021. This hiring was strategic to front-line revenue producers and enhanced risk management infrastructure.

The Company continues to make Fintech investments to transform its business model and adapt to changing market conditions and opportunities. For the quarter ended September 30, 2022, earnings were impacted by approximately $1.6 million of net loss from its MVB Edge Ventures segment, as compared to net losses of $1.3 million and $1.6 million for the quarters ended June 30, 2022 and September 30, 2021, respectively.

BALANCE SHEET

Loans totaled $2.47 billion at September 30, 2022, an increase of $256.3 million, or 11.6%, and $707.2 million, or 40.1%, as compared to June 30, 2022 and September 30, 2021, respectively. Adjusted for the removal of PPP loans from all periods, loan balances increased by 11.8% from the quarter ended June 30, 2022 and by 51.6% from the quarter ended September 30, 2021. Loan growth for both periods was driven primarily by the Company’s strategic lending partnerships growth vehicle. Loans held-for-sale were $20.0 million as of September 30, 2022, compared to $11.9 million at June 30, 2022 and none at September 30, 2021, led by MVB Bank’s SBA lending growth vehicle.

Deposits totaled $2.70 billion as of September 30, 2022, an increase of $82.0 million, or 3.1%, from June 30, 2022 and $298.0 million, or 12.4%, from September 30, 2021. NIB deposits totaled $1.41 billion as of September 30, 2022, an increase $68.9 million, or 5.1%, from June 30, 2022 and $412.4 million, or 41.3%, from September 30, 2021. Growth in NIB deposit balances primarily reflects Fintech business, while the increase in total deposits also reflects an increase in brokered deposits and other certificates of deposit. At 52% of total deposits, NIB deposits continue to exceed all other deposits combined.

CAPITAL

The Community Bank Leverage Ratio was 11.1% as of September 30, 2022, compared to 11.6% as of June 30, 2022 and 12.0% as of September 30, 2021. MVB’s Tier 1 Risk-Based Capital Ratio was 13.1% as of September 30, 2022, compared to 13.7% as of June 30, 2022 and 15.7% as of September 30, 2021. The Bank’s Total Risk-Based Capital Ratio was 14.1% as of September 30, 2022, compared to 14.7% as of June 30, 2022 and 17.0% as of September 30, 2021.

The Company issued a quarterly cash dividend of $0.17 per share for the quarter ended September 30, 2022, consistent with the quarter ended June 30, 2022 and up $0.03, or 21%, from the quarter ended September 30, 2021.

ASSET QUALITY

Nonperforming loans totaled $22.4 million, or 0.9% of total loans, as of September 30, 2022, as compared to $19.3 million, or 0.9% of total loans, as of June 30, 2022, and $17.5 million, or 1.0% of total loans, as of September 30, 2021. Criticized loans as a percentage of total loans were 3.4%, as compared to 4.0% as of June 30, 2022, and 6.5% as of September 30, 2021.

Net charge-offs were $1.3 million, or 0.22% of total loans on an annualized basis, for the quarter ended September 30, 2022, compared to $1.2 million, or 0.21% of total loans on an annualized basis, for the quarter ended June 30, 2022. Net charge-offs on an annualized basis, for the quarter ended September 30, 2021, were not significant.

Changes to the outstanding balances of the loan portfolios, the level of recognized charge-offs and the resulting historical loss rates and adjustments to the risk grading of loans within the portfolio are all contributing factors in the provision for loan losses. The provision for loan losses totaled $5.1 million for the quarter ended September 30, 2022, compared to $5.1 million for the quarter ended June 30, 2022, and $0.4 million for the quarter ended September 30, 2021. Allowance for loan losses to total loans was 1.07% as September 30, 2022, as compared to 1.03% as of June 30, 2022 and 1.43% as of September 30, 2021.

About MVB Financial Corp.

MVB Financial, the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® (“Nasdaq”) under the ticker “MVBF.”

MVB Financial is a financial holding company headquartered in Fairmont, WV. Through its wholly-owned subsidiary, MVB Bank, and MVB Bank’s subsidiaries, MVB Financial provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond.

Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services.

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

Forward-looking Statements

MVB Financial 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 that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations about the future and are subject to risks and uncertainties. Forward-looking statements include, without limitation, information concerning possible or assumed future results of operations of the Company and its subsidiaries. Forward-looking statements can be identified by the use of words such as “may,” “could,” “should,” “would,” “will,” “plans,” “believes,” “estimates,” “expects,” “anticipates,” “intends,” “continues” or the negative of those terms or similar expressions. 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 forward-looking statements. Therefore, undue reliance should not be placed upon any forward-looking statements. Those factors include but are not limited to: market, economic, operational, liquidity and credit risk; changes in market interest rates; inability to achieve anticipated synergies and successfully integrate recent mergers and acquisitions; inability to successfully execute business plans, including strategies related to investments in Fintech companies; competition; length and severity of the COVID-19 pandemic and its impact on the Company’s business and financial condition; changes in economic, business and political conditions; changes in demand for loan products and deposit flow; operational risks and risk management failures; and government regulation and supervision. Additional factors that may cause actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as well as its other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. Except as required by law, the Company disclaims any obligation to update, revise or correct 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 SEC. Accordingly, the consolidated financial information in this announcement is subject to change.

 

MVB Financial Corp.

Financial Highlights

Consolidated Statements of Income

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

 

 

 

Quarterly

 

Year-to-Date

 

 

2022

 

2022

 

2021

 

2022

 

2021

 

 

Third Quarter

 

Second Quarter

 

Third Quarter

 

 

Interest income

 

$

33,903

 

$

28,090

 

$

20,484

 

$

85,255

 

$

60,380

 

Interest expense

 

 

4,057

 

 

1,430

 

 

1,388

 

 

6,901

 

 

4,724

 

Net interest income

 

 

29,846

 

 

26,660

 

 

19,096

 

 

78,354

 

 

55,656

 

Provision (release of allowance) for loan losses

 

 

5,120

 

 

5,100

 

 

380

 

 

11,500

 

 

(542

)

Net interest income after provision (release of allowance) for loan losses

 

 

24,726

 

 

21,560

 

 

18,716

 

 

66,854

 

 

56,198

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

 

 

8,191

 

 

11,909

 

 

21,951

 

 

31,970

 

 

48,053

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

18,316

 

 

18,983

 

 

16,528

 

 

55,260

 

 

42,100

 

Other expense

 

 

11,649

 

 

10,836

 

 

9,301

 

 

33,386

 

 

26,250

 

Total noninterest expenses

 

 

29,965

 

 

29,819

 

 

25,829

 

 

88,646

 

 

68,350

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

2,952

 

 

3,650

 

 

14,838

 

 

10,178

 

 

35,901

 

Income tax expense

 

 

397

 

 

859

 

 

3,164

 

 

2,161

 

 

7,006

 

Net income before noncontrolling interest

 

 

2,555

 

 

2,791

 

 

11,674

 

 

8,017

 

 

28,895

 

Net loss attributable to noncontrolling interest

 

 

163

 

 

165

 

 

154

 

 

521

 

 

265

 

Net income attributable to parent

 

 

2,718

 

 

2,956

 

 

11,828

 

 

8,538

 

 

29,160

 

Preferred dividends

 

 

 

 

 

 

 

 

 

 

35

 

Net income available to common shareholders

 

$

2,718

 

$

2,956

 

$

11,828

 

$

8,538

 

$

29,125

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

 

$

0.22

 

$

0.24

 

$

1.00

 

$

0.70

 

$

2.49

 

Earnings per share - diluted

 

$

0.21

 

$

0.23

 

$

0.92

 

$

0.66

 

$

2.32

 

 

Noninterest Income

(Unaudited) (Dollars in thousands)

 

 

 

Quarterly

 

Year-to-Date

 

 

2022

 

2022

 

2021

 

2022

 

2021

 

 

Third Quarter

 

Second Quarter

 

Third Quarter

 

 

Card acquiring income

 

$

560

 

 

$

750

 

 

$

692

 

$

2,293

 

 

$

2,104

Service charges on deposits

 

 

889

 

 

 

973

 

 

 

138

 

 

2,734

 

 

 

499

Interchange income

 

 

1,864

 

 

 

2,292

 

 

 

855

 

 

4,943

 

 

 

2,501

Total payment card and service charge income

 

 

3,313

 

 

 

4,015

 

 

 

1,685

 

 

9,970

 

 

 

5,104

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from ICM equity method investment 1

 

 

(831

)

 

 

732

 

 

 

3,573

 

 

1,151

 

 

 

14,570

Loss from other equity method investments

 

 

(190

)

 

 

(183

)

 

 

 

 

(485

)

 

 

Total equity method investment income (loss)

 

 

(1,021

)

 

 

549

 

 

 

3,573

 

 

666

 

 

 

14,570

 

 

 

 

 

 

 

 

 

 

 

Compliance and consulting income

 

 

3,736

 

 

 

3,750

 

 

 

3,013

 

 

11,355

 

 

 

6,162

Gain on sale of loans

 

 

1,298

 

 

 

1,405

 

 

 

908

 

 

3,786

 

 

 

3,125

Investment portfolio gains (losses)

 

 

(217

)

 

 

145

 

 

 

1,065

 

 

2,322

 

 

 

5,135

Gains on acquisition and divestiture activity

 

 

 

 

 

 

 

 

10,783

 

 

 

 

 

10,783

Other noninterest income

 

 

1,082

 

 

 

2,045

 

 

 

924

 

 

3,871

 

 

 

3,174

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

 

$

8,191

 

 

$

11,909

 

 

$

21,951

 

$

31,970

 

 

$

48,053

 

 

 

 

 

 

 

 

 

 

 

1 Intercoastal Mortgage Company, LLC (“ICM”)

 

Condensed Consolidated Balance Sheets

(Unaudited) (Dollars in thousands)

 

 

 

September 30, 2022

 

June 30, 2022

 

September 30, 2021

Cash and cash equivalents

 

$

79,946

 

 

$

161,761

 

 

$

390,081

 

Certificates of deposit with banks

 

 

 

 

 

496

 

 

 

9,582

 

Securities available-for-sale, at fair value

 

 

366,742

 

 

 

376,737

 

 

 

439,023

 

Equity securities

 

 

34,101

 

 

 

34,250

 

 

 

29,809

 

Loans held-for-sale

 

 

19,977

 

 

 

11,856

 

 

 

 

Loans receivable

 

 

2,471,395

 

 

 

2,215,114

 

 

 

1,764,186

 

Less: Allowance for loan losses

 

 

(26,515

)

 

 

(22,734

)

 

 

(25,187

)

Loans receivable, net

 

 

2,444,880

 

 

 

2,192,380

 

 

 

1,738,999

 

Premises and equipment, net

 

 

24,668

 

 

 

25,272

 

 

 

25,043

 

Goodwill

 

 

3,988

 

 

 

3,988

 

 

 

3,988

 

Other assets

 

 

165,620

 

 

 

177,688

 

 

 

152,299

 

Total assets

 

$

3,139,922

 

 

$

2,984,428

 

 

$

2,788,824

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

1,411,772

 

 

$

1,342,916

 

 

$

999,328

 

Interest-bearing deposits

 

 

1,285,186

 

 

 

1,272,054

 

 

 

1,399,612

 

FHLB and other borrowings

 

 

73,328

 

 

 

 

 

 

 

Subordinated debt

 

 

73,222

 

 

 

73,158

 

 

 

72,966

 

Other liabilities

 

 

52,054

 

 

 

43,390

 

 

 

50,218

 

Stockholders' equity, including noncontrolling interest

 

 

244,360

 

 

 

252,910

 

 

 

266,700

 

Total liabilities and stockholders' equity

 

$

3,139,922

 

 

$

2,984,428

 

 

$

2,788,824

 

 

Reportable Segments

(Unaudited)

 

Three Months Ended September 30, 2022

 

CoRe

Banking

 

Mortgage

Banking

 

Professional

Services

 

Edge

Ventures

 

Financial

Holding

Company

 

Intercompany

Eliminations

 

Consolidated

(Dollars in thousands)

 

 

 

 

 

 

 

Interest income

 

$

33,777

 

$

103

 

 

$

 

 

$

 

 

$

33

 

 

$

(10

)

 

$

33,903

Interest expense

 

 

3,286

 

 

 

 

 

10

 

 

 

 

 

 

771

 

 

 

(10

)

 

 

4,057

Net interest income (expense)

 

 

30,491

 

 

103

 

 

 

(10

)

 

 

 

 

 

(738

)

 

 

 

 

 

29,846

Provision for loan losses

 

 

5,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,120

Net interest income (expense) after provision for loan losses

 

 

25,371

 

 

103

 

 

 

(10

)

 

 

 

 

 

(738

)

 

 

 

 

 

24,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

5,356

 

 

(817

)

 

 

5,666

 

 

 

115

 

 

 

2,366

 

 

 

(4,495

)

 

 

8,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,354

 

 

8

 

 

 

3,755

 

 

 

925

 

 

 

4,274

 

 

 

 

 

 

18,316

Other expenses

 

 

11,523

 

 

25

 

 

 

1,394

 

 

 

1,392

 

 

 

1,810

 

 

 

(4,495

)

 

 

11,649

Total noninterest expenses

 

 

20,877

 

 

33

 

 

 

5,149

 

 

 

2,317

 

 

 

6,084

 

 

 

(4,495

)

 

 

29,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

9,850

 

 

(747

)

 

 

507

 

 

 

(2,202

)

 

 

(4,456

)

 

 

 

 

 

2,952

Income taxes

 

 

1,817

 

 

(192

)

 

 

116

 

 

 

(504

)

 

 

(840

)

 

 

 

 

 

397

Net income (loss)

 

 

8,033

 

 

(555

)

 

 

391

 

 

 

(1,698

)

 

 

(3,616

)

 

 

 

 

 

2,555

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

36

 

 

 

127

 

 

 

 

 

 

 

 

 

163

Net income (loss) available to common shareholders

 

$

8,033

 

$

(555

)

 

$

427

 

 

$

(1,571

)

 

$

(3,616

)

 

$

 

 

$

2,718

Three Months Ended June 30, 2022

 

CoRe

Banking

 

Mortgage

Banking

 

Professional

Services

 

Edge

Ventures

 

Financial

Holding

Company

 

Intercompany

Eliminations

 

Consolidated

(Dollars in thousands)

 

 

 

 

 

 

 

Interest income

 

$

27,910

 

$

103

 

$

 

 

$

 

 

$

87

 

 

$

(10

)

 

$

28,090

Interest expense

 

 

672

 

 

 

 

8

 

 

 

 

 

 

760

 

 

 

(10

)

 

 

1,430

Net interest income (expense)

 

 

27,238

 

 

103

 

 

(8

)

 

 

 

 

 

(673

)

 

 

 

 

 

26,660

Provision for loan losses

 

 

5,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,100

Net interest income (expense) after provision for loan losses

 

 

22,138

 

 

103

 

 

(8

)

 

 

 

 

 

(673

)

 

 

 

 

 

21,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

7,093

 

 

787

 

 

5,686

 

 

 

110

 

 

 

3,228

 

 

 

(4,995

)

 

 

11,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,948

 

 

 

 

3,872

 

 

 

724

 

 

 

4,439

 

 

 

 

 

 

18,983

Other expenses

 

 

10,913

 

 

94

 

 

1,407

 

 

 

1,170

 

 

 

2,247

 

 

 

(4,995

)

 

 

10,836

Total noninterest expenses

 

 

20,861

 

 

94

 

 

5,279

 

 

 

1,894

 

 

 

6,686

 

 

 

(4,995

)

 

 

29,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

8,370

 

 

796

 

 

399

 

 

 

(1,784

)

 

 

(4,131

)

 

 

 

 

 

3,650

Income taxes

 

 

1,771

 

 

207

 

 

95

 

 

 

(399

)

 

 

(815

)

 

 

 

 

 

859

Net income (loss)

 

 

6,599

 

 

589

 

 

304

 

 

 

(1,385

)

 

 

(3,316

)

 

 

 

 

 

2,791

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

63

 

 

 

102

 

 

 

 

 

 

 

 

 

165

Net income (loss) available to common shareholders

 

$

6,599

 

$

589

 

$

367

 

 

$

(1,283

)

 

$

(3,316

)

 

$

 

 

$

2,956

Three Months Ended September 30, 2021

 

CoRe Banking

 

Mortgage Banking

 

Professional

Services

 

Edge

Ventures

 

Financial

Holding

Company

 

Intercompany

Eliminations

 

Consolidated

(Dollars in thousands)

 

 

 

 

 

 

 

Interest income

 

$

20,383

 

$

105

 

 

$

 

 

$

 

 

$

1

 

 

$

(5

)

 

$

20,484

Interest expense

 

 

902

 

 

 

 

 

10

 

 

 

 

 

 

481

 

 

 

(5

)

 

 

1,388

Net interest income (expense)

 

 

19,481

 

 

105

 

 

 

(10

)

 

 

 

 

 

(480

)

 

 

 

 

 

19,096

Release of allowance for loan losses

 

 

379

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

380

Net interest income (expense) after release of allowance for loan losses

 

 

19,102

 

 

104

 

 

 

(10

)

 

 

 

 

 

(480

)

 

 

 

 

 

18,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

15,387

 

 

3,546

 

 

 

4,806

 

 

 

18

 

 

 

2,002

 

 

 

(3,808

)

 

 

21,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,296

 

 

47

 

 

 

3,993

 

 

 

808

 

 

 

3,384

 

 

 

 

 

 

16,528

Other expenses

 

 

8,973

 

 

(198

)

 

 

1,213

 

 

 

1,468

 

 

 

1,653

 

 

 

(3,808

)

 

 

9,301

Total noninterest expenses

 

 

17,269

 

 

(151

)

 

 

5,206

 

 

 

2,276

 

 

 

5,037

 

 

 

(3,808

)

 

 

25,829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

17,220

 

 

3,801

 

 

 

(410

)

 

 

(2,258

)

 

 

(3,515

)

 

 

 

 

 

14,838

Income taxes

 

 

3,657

 

 

922

 

 

 

(103

)

 

 

(581

)

 

 

(731

)

 

 

 

 

 

3,164

Net income (loss)

 

 

13,563

 

 

2,879

 

 

 

(307

)

 

 

(1,677

)

 

 

(2,784

)

 

 

 

 

 

11,674

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

90

 

 

 

64

 

 

 

 

 

 

 

 

 

154

Net income (loss) available to common shareholders

 

$

13,563

 

$

2,879

 

 

$

(217

)

 

$

(1,613

)

 

$

(2,784

)

 

$

 

 

$

11,828

Nine Months Ended September 30, 2022

 

CoRe

Banking

 

Mortgage

Banking

 

Professional

Services

 

Edge

Ventures

 

Financial

Holding

Company

 

Intercompany

Eliminations

 

Consolidated

(Dollars in thousands)

 

 

 

 

 

 

 

Interest income

 

$

84,858

 

$

309

 

$

 

 

$

 

 

$

113

 

 

$

(25

)

 

$

85,255

Interest expense

 

 

4,617

 

 

 

 

25

 

 

 

 

 

 

2,284

 

 

 

(25

)

 

 

6,901

Net interest income (expense)

 

 

80,241

 

 

309

 

 

(25

)

 

 

 

 

 

(2,171

)

 

 

 

 

 

78,354

Provision for loan losses

 

 

11,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,500

Net interest income (expense) after provision for loan losses

 

 

68,741

 

 

309

 

 

(25

)

 

 

 

 

 

(2,171

)

 

 

 

 

 

66,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

19,347

 

 

1,193

 

 

16,909

 

 

 

300

 

 

 

8,265

 

 

 

(14,044

)

 

 

31,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

28,810

 

 

8

 

 

11,425

 

 

 

2,248

 

 

 

12,769

 

 

 

 

 

 

55,260

Other expenses

 

 

33,484

 

 

119

 

 

3,956

 

 

 

3,609

 

 

 

6,262

 

 

 

(14,044

)

 

 

33,386

Total noninterest expenses

 

 

62,294

 

 

127

 

 

15,381

 

 

 

5,857

 

 

 

19,031

 

 

 

(14,044

)

 

 

88,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

25,794

 

 

1,375

 

 

1,503

 

 

 

(5,557

)

 

 

(12,937

)

 

 

 

 

 

10,178

Income taxes

 

 

5,219

 

 

356

 

 

375

 

 

 

(1,265

)

 

 

(2,524

)

 

 

 

 

 

2,161

Net income (loss)

 

 

20,575

 

 

1,019

 

 

1,128

 

 

 

(4,292

)

 

 

(10,413

)

 

 

 

 

 

8,017

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

194

 

 

 

327

 

 

 

 

 

 

 

 

 

521

Net income (loss) available to common shareholders

 

$

20,575

 

$

1,019

 

$

1,322

 

 

$

(3,965

)

 

$

(10,413

)

 

$

 

 

$

8,538

Nine Months Ended September 30, 2021

 

CoRe

Banking

 

Mortgage

Banking

 

Professional

Services

 

Edge

Ventures

 

Financial

Holding

Company

 

Intercompany

Eliminations

 

Consolidated

(Dollars in thousands)

 

 

 

 

 

 

 

Interest income

 

$

60,078

 

 

$

307

 

 

$

 

 

$

 

 

$

2

 

 

$

(7

)

 

$

60,380

 

Interest expense

 

 

3,281

 

 

 

 

 

 

13

 

 

 

 

 

 

1,437

 

 

 

(7

)

 

 

4,724

 

Net interest income (expense)

 

 

56,797

 

 

 

307

 

 

 

(13

)

 

 

 

 

 

(1,435

)

 

 

 

 

 

55,656

 

Release of allowance for loan losses

 

 

(541

)

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(542

)

Net interest income (expense) after release of allowance for loan losses

 

 

57,338

 

 

 

308

 

 

 

(13

)

 

 

 

 

 

(1,435

)

 

 

 

 

 

56,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

26,832

 

 

 

14,499

 

 

 

9,784

 

 

 

18

 

 

 

5,892

 

 

 

(8,972

)

 

 

48,053

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

24,170

 

 

 

47

 

 

 

7,099

 

 

 

1,054

 

 

 

9,730

 

 

 

 

 

 

42,100

 

Other expenses

 

 

26,702

 

 

 

(112

)

 

 

2,898

 

 

 

1,661

 

 

 

4,073

 

 

 

(8,972

)

 

 

26,250

 

Total noninterest expenses

 

 

50,872

 

 

 

(65

)

 

 

9,997

 

 

 

2,715

 

 

 

13,803

 

 

 

(8,972

)

 

 

68,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

33,298

 

 

 

14,872

 

 

 

(226

)

 

 

(2,697

)

 

 

(9,346

)

 

 

 

 

 

35,901

 

Income taxes

 

 

6,060

 

 

 

3,606

 

 

 

(76

)

 

 

(694

)

 

 

(1,890

)

 

 

 

 

 

7,006

 

Net income (loss)

 

 

27,238

 

 

 

11,266

 

 

 

(150

)

 

 

(2,003

)

 

 

(7,456

)

 

 

 

 

 

28,895

 

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

136

 

 

 

129

 

 

 

 

 

 

 

 

 

265

 

Net income (loss) attributable to parent

 

 

27,238

 

 

 

11,266

 

 

 

(14

)

 

 

(1,874

)

 

 

(7,456

)

 

 

 

 

 

29,160

 

Preferred stock dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35

 

 

 

 

 

 

35

 

Net income (loss) available to common shareholders

 

$

27,238

 

 

$

11,266

 

 

$

(14

)

 

$

(1,874

)

 

$

(7,491

)

 

$

 

 

$

29,125

 

 

Average Balances and Interest Rates

(Unaudited) (Dollars in thousands)

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

September 30, 2022

 

June 30, 2022

 

September 30, 2021

 

 

Average

Balance

 

Interest

Income/

Expense

 

Yield/

Cost

 

Average

Balance

 

Interest

Income/

Expense

 

Yield/

Cost

 

Average

Balance

 

Interest

Income/

Expense

 

Yield/

Cost

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing balances with banks

 

$

32,552

 

 

$

111

 

 

1.35

%

 

$

197,613

 

 

$

304

 

 

0.62

%

 

$

184,131

 

 

$

60

 

 

0.13

%

CDs with banks

 

 

232

 

 

 

2

 

 

3.42

 

 

 

1,582

 

 

 

9

 

 

2.28

 

 

 

11,065

 

 

 

52

 

 

1.86

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

231,953

 

 

 

897

 

 

1.53

 

 

 

237,745

 

 

 

838

 

 

1.41

 

 

 

238,807

 

 

 

575

 

 

0.96

 

Tax-exempt 2

 

 

144,719

 

 

 

1,346

 

 

3.69

 

 

 

147,646

 

 

 

1,342

 

 

3.65

 

 

 

202,380

 

 

 

1,528

 

 

3.00

 

Loans and loans held-for-sale: 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial 3

 

 

1,687,383

 

 

 

22,898

 

 

5.38

 

 

 

1,564,266

 

 

 

20,021

 

 

5.13

 

 

 

1,416,236

 

 

 

15,646

 

 

4.38

 

Tax-exempt 2

 

 

4,498

 

 

 

51

 

 

4.50

 

 

 

4,930

 

 

 

52

 

 

4.23

 

 

 

6,678

 

 

 

77

 

 

4.57

 

Real estate

 

 

579,685

 

 

 

4,707

 

 

3.22

 

 

 

393,983

 

 

 

2,674

 

 

2.72

 

 

 

297,450

 

 

 

2,282

 

 

3.04

 

Consumer

 

 

129,464

 

 

 

4,183

 

 

12.82

 

 

 

88,366

 

 

 

3,142

 

 

14.26

 

 

 

16,133

 

 

 

602

 

 

14.80

 

Total loans

 

 

2,401,030

 

 

 

31,839

 

 

5.26

 

 

 

2,051,545

 

 

 

25,889

 

 

5.06

 

 

 

1,736,497

 

 

 

18,607

 

 

4.25

 

Total earning assets

 

 

2,810,486

 

 

 

34,195

 

 

4.83

 

 

 

2,636,131

 

 

 

28,382

 

 

4.32

 

 

 

2,372,880

 

 

 

20,822

 

 

3.48

 

Less: Allowance for loan losses

 

 

(23,083

)

 

 

 

 

 

 

(19,927

)

 

 

 

 

 

 

(24,978

)

 

 

 

 

Cash and due from banks

 

 

5,399

 

 

 

 

 

 

 

5,579

 

 

 

 

 

 

 

5,922

 

 

 

 

 

Other assets

 

 

227,337

 

 

 

 

 

 

 

237,016

 

 

 

 

 

 

 

200,536

 

 

 

 

 

Total assets

 

$

3,020,139

 

 

 

 

 

 

$

2,858,799

 

 

 

 

 

 

$

2,554,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

734,271

 

 

$

1,393

 

 

0.75

%

 

$

654,781

 

 

$

256

 

 

0.16

%

 

$

743,632

 

 

$

333

 

 

0.18

%

Money market checking

 

 

258,527

 

 

 

422

 

 

0.65

 

 

 

380,295

 

 

 

184

 

 

0.19

 

 

 

433,216

 

 

 

211

 

 

0.19

 

Savings

 

 

71,370

 

 

 

153

 

 

0.85

 

 

 

27,496

 

 

 

1

 

 

0.01

 

 

 

42,126

 

 

 

 

 

 

IRAs

 

 

6,132

 

 

 

17

 

 

1.10

 

 

 

6,314

 

 

 

17

 

 

1.08

 

 

 

7,302

 

 

 

21

 

 

1.14

 

CDs

 

 

202,299

 

 

 

988

 

 

1.94

 

 

 

75,487

 

 

 

203

 

 

1.08

 

 

 

121,482

 

 

 

333

 

 

1.09

 

Repurchase agreements and federal funds sold

 

 

10,627

 

 

 

1

 

 

0.04

 

 

 

11,566

 

 

 

1

 

 

0.03

 

 

 

10,941

 

 

 

3

 

 

0.11

 

FHLB and other borrowings

 

 

48,058

 

 

 

311

 

 

2.57

 

 

 

2,312

 

 

 

8

 

 

1.39

 

 

 

494

 

 

 

6

 

 

4.82

 

Subordinated debt

 

 

73,190

 

 

 

772

 

 

4.18

 

 

 

73,126

 

 

 

760

 

 

4.17

 

 

 

44,460

 

 

 

481

 

 

4.29

 

Total interest-bearing liabilities

 

 

1,404,474

 

 

 

4,057

 

 

1.15

 

 

 

1,231,377

 

 

 

1,430

 

 

0.47

 

 

 

1,403,653

 

 

 

1,388

 

 

0.39

 

Noninterest-bearing demand deposits

 

 

1,321,982

 

 

 

 

 

 

 

1,331,357

 

 

 

 

 

 

 

852,872

 

 

 

 

 

Other liabilities

 

 

37,019

 

 

 

 

 

 

 

40,900

 

 

 

 

 

 

 

36,097

 

 

 

 

 

Total liabilities

 

 

2,763,475

 

 

 

 

 

 

 

2,603,634

 

 

 

 

 

 

 

2,292,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

13,086

 

 

 

 

 

 

 

13,289

 

 

 

 

 

 

 

12,704

 

 

 

 

 

Paid-in capital

 

 

145,877

 

 

 

 

 

 

 

145,014

 

 

 

 

 

 

 

141,246

 

 

 

 

 

Treasury stock

 

 

(16,741

)

 

 

 

 

 

 

(16,741

)

 

 

 

 

 

 

(16,741

)

 

 

 

 

Retained earnings

 

 

144,816

 

 

 

 

 

 

 

137,989

 

 

 

 

 

 

 

122,361

 

 

 

 

 

Accumulated other comprehensive income (loss)

 

 

(30,915

)

 

 

 

 

 

 

(25,097

)

 

 

 

 

 

 

1,207

 

 

 

 

 

Total stockholders’ equity attributable to parent

 

 

256,123

 

 

 

 

 

 

 

254,454

 

 

 

 

 

 

 

260,777

 

 

 

 

 

Noncontrolling interest

 

 

541

 

 

 

 

 

 

 

711

 

 

 

 

 

 

 

961

 

 

 

 

 

Total stockholders’ equity

 

 

256,664

 

 

 

 

 

 

 

255,165

 

 

 

 

 

 

 

261,738

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

3,020,139

 

 

 

 

 

 

$

2,858,799

 

 

 

 

 

 

$

2,554,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread (tax-equivalent)

 

 

 

 

 

3.68

%

 

 

 

 

 

3.85

%

 

 

 

 

 

3.09

%

Net interest income and margin (tax-equivalent)2

 

 

 

$

30,138

 

 

4.25

%

 

 

 

$

26,952

 

 

4.10

%

 

 

 

$

19,434

 

 

3.25

%

Less: Tax-equivalent adjustments

 

 

 

$

(292

)

 

 

 

 

 

$

(292

)

 

 

 

 

 

$

(338

)

 

 

Net interest spread

 

 

 

 

 

3.64

%

 

 

 

 

 

3.80

%

 

 

 

 

 

3.03

%

Net interest income and margin

 

 

 

$

29,846

 

 

4.21

%

 

 

 

$

26,660

 

 

4.06

%

 

 

 

$

19,096

 

 

3.19

%

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

2 In order to make pre-tax income and resultant yields on tax-exempt loans and investment securities comparable to those on taxable loans and investment securities, a tax-equivalent adjustment has been computed using a Federal tax rate of 21% for the periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure following this table.

3 MVB Bank’s PPP loans totaling $20.1 million, $22.3 million and $147.3 million are included in this amount as of September 30, 2022, June 30, 2022 and September 30, 2021, respectively.

 

 

Nine Months Ended

 

Nine Months Ended

 

 

September 30, 2022

 

September 30, 2021

 

 

Average

Balance

 

Interest

Income/

Expense

 

Yield/

Cost

 

Average

Balance

 

Interest

Income/

Expense

 

Yield/

Cost

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing balances with banks

 

$

273,184

 

 

$

630

 

 

0.31

%

 

$

207,195

 

 

$

164

 

 

0.11

%

CDs with banks

 

 

1,381

 

 

 

24

 

 

2.32

 

 

 

11,554

 

 

 

168

 

 

1.94

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

237,188

 

 

 

2,383

 

 

1.34

 

 

 

222,323

 

 

 

1,831

 

 

1.10

 

Tax-exempt 2

 

 

140,377

 

 

 

3,824

 

 

3.64

 

 

 

207,529

 

 

 

4,881

 

 

3.14

 

Loans and loans held-for-sale: 1

 

 

 

 

 

 

 

 

 

 

 

 

Commercial 3

 

 

1,569,161

 

 

 

59,899

 

 

5.10

 

 

 

1,365,680

 

 

 

45,905

 

 

4.49

 

Tax-exempt 2

 

 

4,829

 

 

 

156

 

 

4.32

 

 

 

6,928

 

 

 

237

 

 

4.57

 

Real estate

 

 

438,380

 

 

 

9,722

 

 

2.97

 

 

 

303,701

 

 

 

7,509

 

 

3.31

 

Consumer

 

 

91,092

 

 

 

9,454

 

 

13.88

 

 

 

10,157

 

 

 

762

 

 

10.03

 

Total loans

 

 

2,103,462

 

 

 

79,231

 

 

5.04

 

 

 

1,686,466

 

 

 

54,413

 

 

4.31

 

Total earning assets

 

 

2,755,592

 

 

 

86,092

 

 

4.18

 

 

 

2,335,067

 

 

 

61,457

 

 

3.52

 

Less: Allowance for loan losses

 

 

(20,468

)

 

 

 

 

 

 

(25,920

)

 

 

 

 

Cash and due from banks

 

 

5,680

 

 

 

 

 

 

 

16,274

 

 

 

 

 

Other assets

 

 

237,637

 

 

 

 

 

 

 

201,198

 

 

 

 

 

Total assets

 

$

2,978,441

 

 

 

 

 

 

$

2,526,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

678,991

 

 

$

1,844

 

 

0.36

%

 

$

660,655

 

 

$

1,323

 

 

0.27

%

Money market checking

 

 

367,608

 

 

 

807

 

 

0.29

 

 

 

461,998

 

 

 

662

 

 

0.19

 

Savings

 

 

49,714

 

 

 

155

 

 

0.42

 

 

 

44,938

 

 

 

4

 

 

0.01

 

IRAs

 

 

6,271

 

 

 

52

 

 

1.11

 

 

 

10,764

 

 

 

102

 

 

1.27

 

CDs

 

 

122,095

 

 

 

1,433

 

 

1.57

 

 

 

148,807

 

 

 

1,091

 

 

0.98

 

Repurchase agreements and federal funds sold

 

 

11,334

 

 

 

4

 

 

0.05

 

 

 

10,677

 

 

 

10

 

 

0.13

 

FHLB and other borrowings

 

 

16,966

 

 

 

322

 

 

2.54

 

 

 

33,914

 

 

 

95

 

 

0.37

 

Subordinated debt

 

 

73,126

 

 

 

2,284

 

 

4.18

 

 

 

43,786

 

 

 

1,437

 

 

4.39

 

Total interest-bearing liabilities

 

 

1,326,105

 

 

 

6,901

 

 

0.70

 

 

 

1,415,539

 

 

 

4,724

 

 

0.45

 

Noninterest-bearing demand deposits

 

 

1,350,533

 

 

 

 

 

 

 

828,469

 

 

 

 

 

Other liabilities

 

 

41,379

 

 

 

 

 

 

 

36,665

 

 

 

 

 

Total liabilities

 

 

2,718,017

 

 

 

 

 

 

 

2,280,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

774

 

 

 

 

 

Common stock

 

 

13,276

 

 

 

 

 

 

 

12,524

 

 

 

 

 

Paid-in capital

 

 

144,903

 

 

 

 

 

 

 

139,980

 

 

 

 

 

Treasury stock

 

 

(16,741

)

 

 

 

 

 

 

(16,741

)

 

 

 

 

Retained earnings

 

 

140,174

 

 

 

 

 

 

 

107,094

 

 

 

 

 

Accumulated other comprehensive income (loss)

 

 

(21,905

)

 

 

 

 

 

 

1,788

 

 

 

 

 

Total stockholders’ equity attributable to parent

 

 

259,707

 

 

 

 

 

 

 

245,419

 

 

 

 

 

Noncontrolling interest

 

 

717

 

 

 

 

 

 

 

527

 

 

 

 

 

Total stockholders’ equity

 

 

260,424

 

 

 

 

 

 

 

245,946

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

2,978,441

 

 

 

 

 

 

$

2,526,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread (tax-equivalent)

 

 

 

 

 

3.48

%

 

 

 

 

 

3.07

%

Net interest income and margin (tax-equivalent)2

 

 

 

$

79,191

 

 

3.84

%

 

 

 

$

56,733

 

 

3.25

%

Less: Tax-equivalent adjustments

 

 

 

$

(837

)

 

 

 

 

 

$

(1,077

)

 

 

Net interest spread

 

 

 

 

 

3.44

%

 

 

 

 

 

3.01

%

Net interest income and margin

 

 

 

$

78,354

 

 

3.80

%

 

 

 

$

55,656

 

 

3.19

%

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

2 In order to make pre-tax income and resultant yields on tax-exempt loans and investment securities comparable to those on taxable loans and investment securities, a tax-equivalent adjustment has been computed using a Federal tax rate of 21% for the periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure following this table.

3 MVB Bank’s PPP loans totaling $20.1 million and $147.3 million are included in this amount as of September 30, 2022 and September 30, 2021, respectively.

 

The following table reconciles, for the periods shown below, net interest margin on a fully tax-equivalent basis:

 

 

 

Three Months Ended

 

Nine Months Ended

(Dollars in thousands)

 

September 30, 2022

 

June 30, 2022

 

September 30, 2021

 

September 30, 2022

 

September 30, 2021

Net interest margin - U.S. GAAP basis

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

29,846

 

 

$

26,660

 

 

$

19,096

 

 

$

78,354

 

 

$

55,656

 

Average interest-earning assets

 

$

2,810,486

 

 

$

2,636,131

 

 

$

2,372,880

 

 

 

2,755,592

 

 

 

2,335,067

 

Net interest margin

 

 

4.21

%

 

 

4.06

%

 

 

3.19

%

 

 

3.80

%

 

 

3.19

%

 

 

 

 

 

 

 

 

 

 

 

Net interest margin - non-U.S. GAAP basis

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

29,846

 

 

$

26,660

 

 

$

19,096

 

 

$

78,354

 

 

$

55,656

 

Impact of fully tax-equivalent adjustment

 

 

292

 

 

 

292

 

 

 

338

 

 

 

837

 

 

 

1,077

 

Net interest income on a fully tax-equivalent basis

 

$

30,138

 

 

$

26,952

 

 

$

19,434

 

 

 

79,191

 

 

 

56,733

 

Average interest-earning assets

 

$

2,810,486

 

 

$

2,636,131

 

 

$

2,372,880

 

 

$

2,755,592

 

 

$

2,335,067

 

Net interest margin on a fully tax-equivalent basis

 

 

4.25

%

 

 

4.10

%

 

 

3.25

%

 

 

3.84

%

 

 

3.25

%

 

Selected Financial Data

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

 

 

 

Quarterly

 

Year-to-Date

 

 

2022

 

2022

 

2021

 

 

2022

 

 

 

2021

 

 

 

Third Quarter

 

Second Quarter

 

Third Quarter

 

 

Earnings and Per Share Data:

 

 

 

 

 

 

 

 

 

 

Net income

 

$

2,718

 

 

$

2,956

 

 

$

11,828

 

 

$

8,538

 

 

$

29,160

 

Net income available to common shareholders

 

$

2,718

 

 

$

2,956

 

 

$

11,828

 

 

$

8,538

 

 

$

29,125

 

Earnings per share - basic

 

$

0.22

 

 

$

0.24

 

 

$

1.00

 

 

$

0.70

 

 

$

2.49

 

Earnings per share - diluted

 

$

0.21

 

 

$

0.23

 

 

$

0.92

 

 

$

0.66

 

 

$

2.32

 

Cash dividends paid per common share

 

$

0.17

 

 

$

0.17

 

 

$

0.14

 

 

$

0.51

 

 

$

0.36

 

Book value per common share

 

$

19.85

 

 

$

20.63

 

 

$

22.18

 

 

$

19.85

 

 

$

22.18

 

Tangible book value per common share 1

 

$

19.38

 

 

$

20.14

 

 

$

21.64

 

 

$

19.38

 

 

$

21.64

 

Weighted-average shares outstanding - basic

 

 

12,238,505

 

 

 

12,176,805

 

 

 

11,880,348

 

 

 

12,170,028

 

 

 

11,684,570

 

Weighted-average shares outstanding - diluted

 

 

12,854,951

 

 

 

12,895,581

 

 

 

12,824,309

 

 

 

12,852,574

 

 

 

12,565,809

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

Return on average assets 2

 

 

0.4

%

 

 

0.4

%

 

 

1.9

%

 

 

0.4

%

 

 

1.5

%

Return on average equity 2

 

 

4.2

%

 

 

4.6

%

 

 

18.1

%

 

 

4.4

%

 

 

15.8

%

Net interest margin 3 4

 

 

4.25

%

 

 

4.10

%

 

 

3.25

%

 

 

3.84

%

 

 

3.25

%

Efficiency ratio 5

 

 

78.8

%

 

 

77.3

%

 

 

62.9

%

 

 

80.4

%

 

 

65.9

%

Overhead ratio 2 6

 

 

4.0

%

 

 

4.2

%

 

 

4.0

%

 

 

4.0

%

 

 

3.6

%

Equity to assets

 

 

7.8

%

 

 

8.5

%

 

 

9.5

%

 

 

7.8

%

 

 

9.5

%

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data and Ratios:

 

 

 

 

 

 

 

 

 

 

Charge-offs

 

$

3,653

 

 

$

2,529

 

 

$

98

 

 

$

7,305

 

 

$

363

 

Recoveries

 

$

2,313

 

 

$

1,355

 

 

$

23

 

 

$

4,054

 

 

$

248

 

Net loan charge-offs to total loans 2 7

 

 

0.2

%

 

 

0.2

%

 

 

%

 

 

0.2

%

 

 

%

Allowance for loan losses

 

$

26,515

 

 

$

22,734

 

 

$

25,187

 

 

$

26,515

 

 

$

25,187

 

Allowance for loan losses to total loans 8

 

 

1.07

%

 

 

1.03

%

 

 

1.43

%

 

 

1.07

%

 

 

1.43

%

Nonperforming loans

 

$

22,350

 

 

$

19,295

 

 

$

17,453

 

 

$

22,350

 

 

$

17,453

 

Nonperforming loans to total loans

 

 

0.9

%

 

 

0.9

%

 

 

1.0

%

 

 

0.9

%

 

 

1.0

%

 

 

 

 

 

 

 

 

 

 

 

Intercoastal Mortgage Company, LLC Production Data9:

 

 

 

 

 

 

 

 

 

 

Mortgage pipeline

 

$

792,388

 

 

$

1,114,061

 

 

$

1,150,116

 

 

$

792,388

 

 

$

1,150,116

 

Loans originated

 

$

606,805

 

 

$

976,004

 

 

$

1,456,588

 

 

$

2,713,508

 

 

$

5,222,394

 

Loans closed

 

$

615,585

 

 

$

843,305

 

 

$

1,233,605

 

 

$

2,239,732

 

 

$

4,630,597

 

Loans sold

 

$

619,059

 

 

$

692,553

 

 

$

1,098,475

 

 

$

1,999,706

 

 

$

4,368,875

 

1 common equity less total goodwill and intangibles per common share, a non-U.S. GAAP measure

2 annualized for the quarterly periods presented

3 net interest income as a percentage of average interest-earning assets

4 presented on a fully tax-equivalent basis

5 noninterest expense as a percentage of net interest income and noninterest income, a non-U.S. GAAP measure

6 noninterest expense as a percentage of average assets, a non-U.S. GAAP measure

7 charge-offs less recoveries

8 excludes loans held-for-sale

9 information is related to ICM, an entity in which we have a 40% ownership interest that we account for as an equity method investment

 

Non-GAAP Reconciliation: Tangible Book Value per Common Share

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

 

 

 

September 30, 2022

 

June 30, 2022

 

September 30, 2021

Goodwill

 

$

3,988

 

 

$

3,988

 

 

$

3,988

 

Intangibles

 

 

1,806

 

 

 

1,981

 

 

 

2,518

 

Total intangibles

 

 

5,794

 

 

 

5,969

 

 

 

6,506

 

 

 

 

 

 

 

 

Total equity attributable to parent

 

 

243,913

 

 

 

252,300

 

 

 

265,565

 

Less: Total intangibles

 

 

(5,794

)

 

 

(5,969

)

 

 

(6,506

)

Tangible common equity

 

$

238,119

 

 

$

246,331

 

 

$

259,059

 

 

 

 

 

 

 

 

Tangible common equity

 

$

238,119

 

 

$

246,331

 

 

$

259,059

 

Common shares outstanding (000s)

 

 

12,287

 

 

 

12,229

 

 

 

11,972

 

Tangible book value per common share

 

$

19.38

 

 

$

20.14

 

 

$

21.64

 

 

Contacts

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



MVB Financial Corp.

Donald T. Robinson, President and Chief Financial Officer

(304) 598-3500

drobinson@mvbbanking.com



Amy Baker, VP, Corporate Communications and Marketing

(844) 682-2265

abaker@mvbbanking.com

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