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 fourth quarter
and year ended December 31, 2022, with reported net income of $6.5
million, or $0.52 basic and $0.50 diluted earnings per share for
the three months ended December 31, 2022.
Quarterly
Year-to-Date
2022
2022
2021
2022
2021
Fourth Quarter
Third Quarter
Fourth Quarter
Net income
$
6,509
$
2,718
$
9,959
$
15,047
$
39,121
Earnings per share - basic
$
0.52
$
0.22
$
0.83
$
1.23
$
3.32
Earnings per share - diluted
$
0.50
$
0.21
$
0.77
$
1.17
$
3.10
“Our company made significant forward progress in 2022 on our
MVB-F1: Success Loves Speed Strategic Plan, while adapting to
challenging wet track conditions along the way,” said Larry F.
Mazza, Chief Executive Officer, MVB Financial. “During the year, we
welcomed new partners, delivered on the promise of our fast-track
vehicles, and quickly adapted to setbacks brought on by market
conditions.”
“Fourth quarter results reflected both notable progress and
ongoing challenges. Our core earnings power improved, driven by net
interest margin expansion and net interest income growth, while our
actions to right-size the cost base drove expenses lower, resulting
in positive operating leverage. Underlying it all, our solid
foundation remained intact, as evidenced by capital strength, sound
asset quality and growth in tangible book value per share.”
Mazza added, “Looking to 2023, higher interest rates, slowing
economic growth and lingering market uncertainty continue to weigh
on our mortgage business, fee income and certain of our Fintech
initiatives. Despite these challenges, we are keenly focused on our
North Star of earnings per share.”
FOURTH QUARTER 2022 HIGHLIGHTS
- Net interest margin expansion drives strong growth in net
interest income
- On a tax-equivalent basis, net interest margin for the quarter
ended December 31, 2022 was 4.57%, up 32 basis points versus the
quarter ended September 30, 2022 and 129 basis points versus the
quarter ended December 31, 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. Relative to
both prior periods, net interest margin expansion primarily
reflected higher loan yields, anchored by the large base of
noninterest bearing Fintech, title and specialty deposits,
partially offset by higher funding costs due to Fed rate
increases.
- Net interest income on a tax-equivalent basis totaled $33.7
million for the quarter ended December 31, 2022, up $3.6 million,
or 12.0% from the quarter ended September 30, 2022 and $11.9
million, or 54.6%, from the quarter ended December 31, 2021.
- Expenses decline as cost-savings initiatives take effect,
helping to drive positive operating leverage
- Noninterest expense totaled $28.7 million for the quarter ended
December 31, 2022, a decline of $1.2 million, or 4.1%, from the
quarter ended September 30, 2022 and a decrease of $0.4 million, or
1.2%, from the quarter ended December 31, 2021. The decline
relative to both prior periods was primarily attributable to lower
salaries and employee benefits costs.
- The company had previously announced that certain cost-savings
initiatives were 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 of 2023, and the remainder expected to be fully captured by
the end of the third quarter of 2023.
- As compared to the prior quarter, total revenues (net interest
income, plus noninterest income) grew 4.6% and total noninterest
expense declined 4.1%, resulting in strong positive operating
leverage.
- Measures of foundational strength remained intact
- Nonperforming loans totaled $11.2 million, or 0.5% of total
loans, as of December 31, 2022, compared to 0.9% of total loans as
of both September 30, 2022 and December 31, 2021. Criticized loans
as a percentage of total loans were 3.0%, down from 3.4% as of
September 30, 2022 and 5.4% as of December 31, 2021.
- Net charge-offs were $5.4 million, or 0.91% of total loans on
an annualized basis, for the quarter ended December 31, 2022,
compared to $1.3 million, or 0.22% of total loans on an annualized
basis, for the quarter ended September 30, 2022 and $1.2 million,
or 0.25% of total loans on an annualized basis, for the quarter
ended December 31, 2021. The increase in net charge-offs compared
to both periods was driven by a charge-off of one commercial
relationship, which was previously reserved, and increased
charge-offs in our consumer loan portfolio.
- The ratio of tangible common equity to tangible assets was
8.38% as of December 31, 2022, compared to 7.60% as of September
30, 2022 and 9.62% as of December 31, 2021.
- Tangible book value (“TBV”) per share, a non-U.S. GAAP measure,
was $20.25 as of December 31, 2022, an increase of 4.5% from
September 30, 2022 and a decline of 8.7% from December 31, 2021. A
reconciliation of TBV to its most comparable U.S. GAAP measure is
included below.
- Balance sheet management drives sequential period decline in
deposit balances
- Deposits totaled $2.57 billion as of December 31, 2022, a
decrease of $126.5 million, or 4.7%, from September 30, 2022 and an
increase of $192.9 million, or 8.1%, from December 31, 2021.
- Noninterest-bearing (“NIB”) deposits totaled $1.23 billion as
of December 31, 2022, down $180.2 million, or 12.8%, from September
30, 2022 and up $111.1 million, or 9.9%, from December 31,
2021.
- The decline in total deposits and NIB deposits as compared to
September 30, 2022, reflects the use of off-balance sheet deposit
networks to generate fee income, enhance capital and manage
liquidity and concentration risk. Further, impacting the decease
was a decline in title deposits due to the seasonality and overall
slowdown of the mortgage industry. Total off-balance sheet
deposits, including gaming and banking as a service relationships,
total $724.0 million, an increase of $156.0 million, or 27.5%,
compared to September 30, 2022 and $241.8 million, or 50.1%, from
December 31, 2021. Growth in NIB balances as compared to December
31, 2021, primarily reflects an increase in Fintech deposits.
- Noninterest income declines on continued cyclical headwinds,
loss on loan sales
- Noninterest income totaled $6.3 million for the quarter ended
December 31, 2022, a decrease of $1.9 million, or 22.8%, from the
quarter ended September 30, 2022 and a decrease of $8.2 million, or
56.5%, from the quarter ended December 31, 2021.
- Ongoing cyclical headwinds reflected weakness in mortgage
banking and Fintech-related fee income. Specifically, equity method
investment loss related to our investment in Intercoastal Mortgage
Company, LLC (“ICM”) was $1.2 million for the quarter ended
December 31, 2022, as compared to $0.8 million for the quarter
ended September 30, 2022 and income of $1.8 million for the quarter
ended December 31, 2021. Total payment card and service charge
income was $1.7 million for the quarter ended December 31, 2022, as
compared to $3.3 million for the quarter ended September 30, 2022
and $2.4 million for the quarter ended December 31, 2021.
- During fourth quarter 2022, the Company elected to exit its
bitcoin mining portfolio including selling the remaining loans. As
a result, the Company reported a loss of $3.8 million on the sale
of $10.7 million of bitcoin mining loans, which represented MVB’s
entire crypto-related lending exposure.
- M&A Update: Receipt of shareholder approval for
acquisition of Integrated Financial Holdings, Inc.
- In January 2023, MVB and Integrated Financial Holdings, Inc.
jointly announced that each had received shareholder approval of a
previously-announced merger, with MVB as the surviving company. The
merger is currently expected to close in the [first] quarter of
2023, subject to satisfaction of customary closing conditions and
receipt of necessary regulatory approvals.
INCOME STATEMENT
Net interest income on a tax-equivalent basis totaled $33.7
million for the quarter ended December 31, 2022, up $3.6 million,
or 12.0%, from the quarter ended September 30, 2022 and $11.9
million, or 54.6%, from the quarter ended December 31, 2021. The
increase in net interest income compared to the quarter ended
September 30, 2022 primarily reflects higher loan yields from the
Company’s commercial loan portfolio. The increase compared to the
quarter ended December 31, 2021 generally reflects strong loan
growth at favorable interest rates during 2022, primarily driven by
the Company’s strategic lending partnerships growth vehicle and
broad-based growth throughout CoRe Banking business.
Interest income increased $6.8 million, or 20.1%, compared to
the quarter ended September 30, 2022 and increased $17.7 million,
or 76.6%, compared to the quarter ended December 31, 2021. The
tax-equivalent yield on loans was 6.1% for the quarter ended
December 31, 2022, compared to 5.3% for the quarter ended September
30, 2022 and 4.6% for the quarter ended December 31, 2021. Higher
loan yields generally reflect the impact of the Fed rate increases
on our commercial loan portfolio. The higher loan yields compared
to the quarter ended December 31, 2021 also reflect new loan
production at favorable interest rates.
Interest expense increased $3.2 million, or 78.8%, compared to
the quarter ended September 30, 2022 and decreased $5.7 million, or
369.1%, compared to the quarter ended December 31, 2021. The cost
of funds was 1.00% for the quarter ended December 31, 2022, up 41
basis points compared to the quarter ended September 30, 2022 and
76 basis points compared to the quarter ended December 31, 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 during the
quarter. The increase in cost of funds compared to the prior year
period mostly reflected higher interest rates and increased FHLB
borrowings and subordinated debt during the quarter, partially
offset by the relatively higher contribution of NIB deposits
relative to the prior year.
On a fully tax-equivalent basis, net interest margin for the
quarter ended December 31, 2022 was 4.57%, an increase of 32 basis
points versus the quarter ended September 30, 2022 and 129 basis
points versus the quarter ended December 31, 2021. The increase in
net interest margin for both quarters reflected the impact of
higher loan yields due to interest rate increases, partially offset
by an increase in deposit costs. The average loan-to-deposit ratio
during the quarter ended December 31, 2022 was 87.7%, compared to
92.5% for the quarter ended September 30, 2022 and 74.5% for the
quarter ended December 31, 2021.
Noninterest income totaled $6.3 million for the quarter ended
December 31, 2022, a decrease of $1.9 million, or 22.8%, from the
quarter ended September 30, 2022 and a decrease of $8.2 million, or
56.5%, from the quarter ended December 31, 2021. The $1.9 million
decrease in noninterest income from the quarter ended September 30,
2022 was primarily due to decreases in gain on sale of loans of
$3.4 million, or 264.2%, compared to the quarter ended September
30, 2022. The $8.2 million decrease in noninterest income from the
quarter ended December 31, 2021 was primarily due to decreases in
equity method investment income of $4.2 million, or 148.3%, gain on
sale of loans of $3.2 million, or 302.4%, and holding gain on
equity securities of $3.4 million, or 169.0%. The decrease in gain
on sale of loans was driven by the loss of $3.8 million on the sale
of $10.7 million of bitcoin mining loans, which represented MVB’s
entire crypto-related lending exposure. Included in noninterest
income was a $2.0 million gain recognized as a result of the
partial sale of the Company’s Interchecks investment, which also
caused the investment to be reclassified from an equity method
investment to an equity security in fourth quarter 2022.
Noninterest expense totaled $28.7 million for the quarter ended
December 31, 2022, a decrease of $1.2 million, or 4.1%, from the
quarter ended September 30, 2022 and $0.4 million, or 1.2%, from
the quarter ended December 31, 2021. The $1.2 million decrease in
noninterest expense from the quarter ended September 30, 2022 was
due to a decrease in salaries and employee benefits of $1.4
million, as the Company began to implement the expense reduction
initiatives announced in the prior quarter, partially offset by an
increase in other operating expense of $0.2 million, primarily
driven by increased servicing expense. The decrease compared to the
quarter ended December 31, 2021 was driven by decreases of $1.2
million, or 6.7%, in salaries and employee benefits and $1.1
million, or 27.5% in professional fees, partially offset by
increases of $1.0 million, or 55.5%, in other operating expense,
primarily driven by increased servicing expense and $0.4 million,
or 34.9%, in equipment depreciation and maintenance.
BALANCE SHEET
Loans totaled $2.36 billion at December 31, 2022, a decrease of
$112.0 million, or 4.5%, and an increase of $489.6 million, or
26.2%, as compared to September 30, 2022 and December 31, 2021,
respectively. Adjusted for the removal of Paycheck Protection
Program (“PPP”) loans from all periods, loan balances decreased by
4.3% from the quarter ended September 30, 2022 and increased by
35.0% from the quarter ended December 31, 2021. The decrease in
loan balances compared to September 30, 2022 primarily reflect the
Company’s balance sheet management as it contemplates future market
uncertainty. Loan growth compared to December 31, 2021 was driven
primarily by the Company’s strategic lending partnerships growth
vehicle. Loans held-for-sale were $23.1 million as of December 31,
2022, compared to $20.0 million at September 30, 2022 and none
December 31, 2021, led by MVB Bank’s government guaranteed lending
growth vehicle.
Deposits totaled $2.57 billion as of December 31, 2022, a
decrease of $126.5 million, or 4.7%, from September 30, 2022 and an
increase of $192.9 million, or 8.1%, from December 31, 2021. NIB
deposits totaled $1.23 billion as of December 31, 2022, a decrease
of $180.2 million, or 12.8%, from September 30, 2022 and an
increase of $111.1 million, or 9.9%, from December 31, 2021. The
decrease in both total deposits and NIB deposits in the current
quarter is primarily due to the Company’s utilization of
off-balance sheet deposit networks to generate fee income, enhance
capital and manage liquidity and concentration risk. Growth in NIB
deposit balances compared to December 31, 2021 primarily reflects
higher Fintech deposits, while the increase in total deposits also
reflects an increase in brokered deposits and other certificates of
deposit.
CAPITAL
The Community Bank Leverage Ratio was 9.83% as of
December 31, 2022, compared to 11.1% as of September 30,
2022 and 11.6% as of December 31, 2021. MVB’s Tier 1
Risk-Based Capital Ratio was 12.4% as of December 31, 2022,
compared to 13.1% as of September 30, 2022 and 15.8% as
of December 31, 2021. The Bank’s Total Risk-Based Capital
Ratio was 13.4% as of December 31, 2022, compared to 14.1%
as of September 30, 2022 and 16.7% as of December 31,
2021.
The Company issued a quarterly cash dividend of $0.17 per
share for the quarter ended December 31, 2022, consistent
with the quarter ended September 30, 2022 and up $0.02, or
13.3%, from the quarter ended December 31, 2021.
ASSET QUALITY
Nonperforming loans totaled $11.2 million, or 0.5% of total
loans, as of December 31, 2022, compared to 0.9% of total loans as
of both September 30, 2022 and December 31, 2021. Criticized loans
as a percentage of total loans were 3.0%, as compared to 3.4% as of
September 30, 2022 and 5.4% as of December 31, 2021.
Net charge-offs were $5.4 million, or 0.9% of total loans on an
annualized basis, for the quarter ended December 31, 2022, compared
to $1.3 million, or 0.2% of total loans on an annualized basis, for
the quarter ended September 30, 2022 and $1.2 million, or 0.3% of
total loans on an annualized basis, for the quarter ended December
31, 2021. Charge-offs during the quarter include $2.9 million
related to one commercial relationship, previously reserved, and
$2.5 million related to the consumer loan portfolio.
Changes to the outstanding balances of the loan portfolios and
the level of recognized charge-offs are all contributing factors in
the provision for loan losses. The provision for loan losses
totaled $2.7 million for the quarter ended December 31, 2022,
compared to $5.1 million for the quarter ended September 30, 2022
and release of allowance of $5.7 million for the quarter ended
December 31, 2021. Allowance for loan losses to total loans was
1.01% as of December 31, 2022, as compared to 1.07% as of September
30, 2022 and 0.98% as of December 31, 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 is a financial holding company headquartered in Fairmont,
West Virginia. Through its 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
Fourth Quarter
Third Quarter
Fourth Quarter
Interest income
$
40,702
$
33,903
$
23,049
$
125,957
$
83,429
Interest expense
7,253
4,057
1,546
14,154
6,270
Net interest income
33,449
29,846
21,503
111,803
77,159
Provision (release of allowance) for loan
losses
2,694
5,120
(5,733
)
14,194
(6,275
)
Net interest income after provision
(release of allowance) for loan losses
30,755
24,726
27,236
97,609
83,434
Noninterest income
6,324
8,191
14,542
38,294
62,596
Noninterest expense:
Salaries and employee benefits
16,902
18,316
18,110
72,162
60,210
Other expense
11,840
11,649
10,993
45,226
37,242
Total noninterest expenses
28,742
29,965
29,103
117,388
97,452
Income before income taxes
8,337
2,952
12,675
18,515
48,578
Income tax expense
1,967
397
2,876
4,128
9,882
Net income before noncontrolling
interest
6,370
2,555
9,799
14,387
38,696
Net loss attributable to noncontrolling
interest
139
163
160
660
425
Net income attributable to parent
6,509
2,718
9,959
15,047
39,121
Preferred dividends
—
—
—
—
35
Net income available to common
shareholders
$
6,509
$
2,718
$
9,959
$
15,047
$
39,086
Earnings per share - basic
$
0.52
$
0.22
$
0.83
$
1.23
$
3.32
Earnings per share - diluted
$
0.50
$
0.21
$
0.77
$
1.17
$
3.10
Noninterest Income
(Unaudited) (Dollars in
thousands)
Quarterly
Year-to-Date
2022
2022
2021
2022
2021
Fourth Quarter
Third Quarter
Fourth Quarter
Card acquiring income
$
497
$
560
$
1,713
$
2,790
$
3,817
Service charges on deposits
684
889
135
3,418
634
Interchange income
497
1,864
572
5,440
3,073
Total payment card and service charge
income
1,678
3,313
2,420
11,648
7,524
Income (loss) from ICM equity method
investment
(1,174
)
(831
)
1,813
(23
)
16,383
Income (loss) from other equity method
investments
(205
)
(190
)
1,045
(690
)
1,045
Total equity method investment income
(loss)
(1,379
)
(1,021
)
2,858
(713
)
17,428
Compliance and consulting income
4,149
3,736
3,463
15,504
9,625
Gain (loss) on sale of loans
(2,131
)
1,298
1,053
1,655
4,178
Investment portfolio gains (losses)
(1,397
)
(217
)
2,521
925
7,656
Gains on acquisition and divestiture
activity
—
—
—
—
10,783
Other noninterest income
5,404
1,082
2,227
9,275
5,402
Total noninterest income
$
6,324
$
8,191
$
14,542
$
38,294
$
62,596
Condensed Consolidated Balance
Sheets
(Unaudited) (Dollars in
thousands)
December 31, 2022
September 30, 2022
December 31, 2021
Cash and cash equivalents
$
40,280
$
79,946
$
307,437
Certificates of deposit with banks
—
—
2,719
Securities available-for-sale, at fair
value
379,814
366,742
421,466
Equity securities
38,744
34,101
32,402
Loans held-for-sale
23,126
19,977
—
Loans receivable
2,359,416
2,471,395
1,869,838
Less: Allowance for loan losses
(23,837
)
(26,515
)
(18,266
)
Loans receivable, net
2,335,579
2,444,880
1,851,572
Premises and equipment, net
23,653
24,668
25,052
Goodwill
3,988
3,988
3,988
Other assets
210,437
165,620
147,813
Total assets
$
3,055,621
$
3,139,922
$
2,792,449
Noninterest-bearing deposits
$
1,231,544
$
1,411,772
$
1,120,433
Interest-bearing deposits
1,338,938
1,285,186
1,257,172
FHLB and other borrowings
102,333
73,328
—
Secured borrowings
9,765
—
—
Subordinated debt
73,286
73,222
73,030
Other liabilities
48,129
52,054
66,511
Stockholders' equity, including
noncontrolling interest
261,391
244,360
275,303
Total liabilities and stockholders'
equity
$
3,055,621
$
3,139,922
$
2,792,449
Reportable Segments
(Unaudited)
Twelve Months Ended December 31,
2022
CoRe Banking
Mortgage Banking
Professional Services
Edge Ventures
Financial Holding
Company
Intercompany
Eliminations
Consolidated
(Dollars in thousands)
Interest income
$
125,426
$
429
$
—
$
—
$
146
$
(44
)
$
125,957
Interest expense
10,919
—
39
5
3,234
(44
)
14,153
Net interest income
114,507
429
(39
)
(5
)
(3,088
)
—
111,804
Provision for loan losses
14,194
—
—
—
—
—
14,194
Net interest income after provision for
loan losses
100,313
429
(39
)
(5
)
(3,088
)
—
97,610
Noninterest income
22,673
37
22,812
459
10,576
(18,263
)
38,294
Noninterest Expenses:
Salaries and employee benefits
36,960
8
15,276
3,336
16,582
—
72,162
Other expense
44,873
142
5,233
5,192
8,049
(18,263
)
45,226
Total noninterest expenses
81,833
150
20,509
8,528
24,631
(18,263
)
117,388
Income (loss) before income taxes
41,153
316
2,264
(8,074
)
(17,143
)
—
18,516
Income tax expense (benefit)
8,882
77
567
(1,926
)
(3,472
)
—
4,128
Net income (loss)
32,271
239
1,697
(6,148
)
(13,671
)
—
14,388
Net loss attributable to noncontrolling
interest
—
—
207
453
—
—
660
Net income (loss) available to common
shareholders
$
32,271
$
239
$
1,904
$
(5,695
)
$
(13,671
)
$
—
$
15,048
Twelve Months Ended December 31,
2021
CoRe Banking
Mortgage Banking
Professional Services
Edge Ventures
Financial Holding
Company
Intercompany
Eliminations
Consolidated
(Dollars in thousands)
Interest income
$
83,023
$
411
$
(8
)
$
—
$
15
$
(12
)
$
83,429
Interest expense
4,078
—
16
—
2,188
(12
)
6,270
Net interest income
78,945
411
(24
)
—
(2,173
)
—
77,159
Release of allowance for loan losses
(6,274
)
(1
)
—
—
—
—
(6,275
)
Net interest income after release of
allowance for loan losses
85,219
412
(24
)
—
(2,173
)
—
83,434
Noninterest income
33,179
16,342
14,931
71
11,103
(13,030
)
62,596
Noninterest Expenses:
Salaries and employee benefits
33,595
—
10,949
1,962
13,704
—
60,210
Other expense
37,033
16
4,095
2,555
6,573
(13,030
)
37,242
Total noninterest expenses
70,628
16
15,044
4,517
20,277
(13,030
)
97,452
Income (loss) before income taxes
47,770
16,738
(137
)
(4,446
)
(11,347
)
—
48,578
Income tax expense (benefit)
9,154
4,068
(105
)
(1,144
)
(2,091
)
—
9,882
Net income (loss)
38,616
12,670
(32
)
(3,302
)
(9,256
)
—
38,696
Net loss attributable to noncontrolling
interest
—
—
210
215
—
—
425
Net income (loss) attributable to
parent
38,616
12,670
178
(3,087
)
(9,256
)
—
39,121
Preferred stock dividends
—
—
—
—
35
—
35
Net income (loss) available to common
shareholders
$
38,616
$
12,670
$
178
$
(3,087
)
$
(9,291
)
$
—
$
39,086
Average Balances and Interest
Rates
(Unaudited) (Dollars in
thousands)
Three Months Ended
Three Months Ended
Three Months Ended
December 31, 2022
September 30, 2022
December 31, 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
$
113,500
$
982
3.43
%
$
32,552
$
111
1.35
%
$
376,667
$
141
0.15
%
CDs with banks
—
—
—
232
2
3.42
6,998
33
1.87
Investment securities:
Taxable
233,839
1,114
1.89
231,953
897
1.53
258,534
573
0.88
Tax-exempt 2
136,313
1,343
3.91
144,719
1,346
3.69
183,736
1,447
3.12
Loans and loans held-for-sale: 1
Commercial 3
1,667,981
27,947
6.65
1,687,383
22,898
5.38
1,451,347
17,653
4.83
Tax-exempt 2
4,161
47
4.48
4,498
51
4.50
5,811
65
4.41
Real estate
631,450
6,000
3.77
579,685
4,707
3.22
320,078
2,153
2.67
Consumer
139,705
3,563
10.12
129,464
4,183
12.82
32,903
1,306
15.75
Total loans
2,443,297
37,557
6.10
2,401,030
31,839
5.26
1,810,139
21,177
4.64
Total earning assets
2,926,949
40,996
5.56
2,810,486
34,195
4.83
2,636,074
23,370
3.52
Less: Allowance for loan losses
(27,530
)
(23,083
)
(24,977
)
Cash and due from banks
5,643
5,399
6,751
Other assets
266,292
227,337
204,001
Total assets
$
3,171,354
$
3,020,139
$
2,821,849
Liabilities
Deposits:
NOW
$
791,227
$
2,880
1.44
%
$
734,271
$
1,393
0.75
%
$
711,805
$
289
0.16
%
Money market checking
219,334
643
1.16
258,527
422
0.65
489,818
221
0.18
Savings
77,416
263
1.35
71,370
153
0.85
36,455
1
0.01
IRAs
6,053
20
1.31
6,132
17
1.10
6,439
18
1.11
CDs
314,723
2,380
3.00
202,299
988
1.94
91,059
263
1.15
Repurchase agreements and federal funds
sold
9,958
1
0.04
10,627
1
0.04
11,249
3
0.11
FHLB and other borrowings
11,128
115
4.10
48,058
311
2.57
79
—
—
Secured borrowings
9,235
163
7.00
—
—
—
—
—
—
Subordinated debt
73,254
787
4.26
73,190
771
4.18
72,995
751
4.08
Total interest-bearing liabilities
1,512,328
7,252
1.90
1,404,474
4,056
1.15
1,419,899
1,546
0.43
Noninterest-bearing demand deposits
1,377,880
1,321,982
1,092,520
Other liabilities
40,264
37,019
42,318
Total liabilities
2,930,472
2,763,475
2,554,737
Stockholders’ equity
Preferred stock
—
—
597
Common stock
13,452
13,086
12,878
Paid-in capital
156,111
145,877
142,479
Treasury stock
(16,741
)
(16,741
)
(16,741
)
Retained earnings
129,853
144,816
129,896
Accumulated other comprehensive loss
(41,793
)
(30,915
)
(3,188
)
Total stockholders’ equity attributable to
parent
240,882
256,123
265,921
Noncontrolling interest
399
541
1,147
Total stockholders’ equity
240,483
256,664
267,068
Total liabilities and stockholders’
equity
$
3,171,354
$
3,020,139
$
2,821,805
Net interest spread (tax-equivalent)
3.66
3.68
3.09
Net interest income and margin
(tax-equivalent) 2
$
33,744
4.57
%
$
30,139
4.25
%
$
21,824
3.28
%
Less: Tax-equivalent adjustments
$
(295
)
$
(293
)
$
(320
)
Net interest spread
3.62
3.64
3.04
Net interest income and margin
$
33,449
4.53
%
$
29,846
4.21
%
$
21,503
3.24
%
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 $13.6
million, $20.1 million and $131.7 million are included in this
amount for the three months ended December 31, 2022, September 30,
2022 and December 31, 2021, respectively.
Twelve Months Ended
Twelve Months Ended
December 31, 2022
December 31, 2021
Average
Balance
Interest
Income/
Expense
Yield/
Cost
Average
Balance
Interest
Income/
Expense
Yield/
Cost
Assets
Interest-bearing balances with banks
$
232,935
$
1,613
0.69
%
$
249,801
$
305
0.12
%
CDs with banks
1,033
24
2.32
10,406
201
1.93
Investment securities:
Taxable
236,344
3,496
1.48
231,450
2,405
1.04
Tax-exempt 2
139,353
5,166
3.71
201,532
6,328
3.14
Loans and loans held-for-sale: 1
Commercial 3
1,594,069
87,845
5.51
1,387,273
63,551
4.58
Tax-exempt 2
4,661
203
4.36
6,646
300
4.51
Real estate
487,044
15,721
3.23
307,829
9,662
3.14
Consumer
103,345
13,017
12.60
15,890
2,069
13.02
Total loans
2,189,119
116,786
5.33
1,717,638
75,582
4.40
Total earning assets
2,798,784
127,085
4.54
2,410,827
84,821
3.52
Less: Allowance for loan losses
(22,248
)
(25,682
)
Cash and due from banks
5,670
13,874
Other assets
244,861
201,904
Total assets
$
3,027,067
$
2,600,923
Liabilities
Deposits:
NOW
$
707,282
$
4,724
0.67
%
$
673,547
$
1,612
0.24
%
Money market checking
330,208
1,449
0.44
469,010
883
0.19
Savings
56,697
418
0.74
42,800
5
0.01
IRAs
6,216
71
1.14
9,674
121
1.25
CDs
170,648
3,814
2.24
134,250
1,355
1.01
Repurchase agreements and federal funds
sold
10,987
6
0.05
10,821
13
0.12
FHLB and other borrowings
15,494
437
2.82
25,275
93
0.37
Secured borrowings
2,328
163
7.00
—
—
—
Subordinated debt
73,159
3,072
4.20
51,149
2,188
4.28
Total interest-bearing liabilities
1,373,019
14,154
1.03
1,416,526
6,270
0.44
Noninterest-bearing demand deposits
1,357,426
895,024
Other liabilities
41,098
38,100
Total liabilities
2,771,543
2,349,650
Stockholders’ equity
Preferred stock
—
730
Common stock
13,320
12,614
Paid-in capital
147,728
140,610
Treasury stock
(16,741
)
(16,741
)
Retained earnings
138,135
112,842
Accumulated other comprehensive income
(loss)
(26,918
)
534
Total stockholders’ equity attributable to
parent
255,524
250,589
Noncontrolling interest
637
683
Total stockholders’ equity
256,161
251,272
Total liabilities and stockholders’
equity
$
3,027,067
$
2,600,912
Net interest spread (tax-equivalent)
3.51
3.08
Net interest income and margin
(tax-equivalent) 2
$
112,931
4.04
%
$
78,551
3.26
%
Less: Tax-equivalent adjustments
$
(1,128
)
$
(1,392
)
Net interest spread
3.47
3.02
Net interest income and margin
$
111,803
3.99
%
$
77,159
3.20
%
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 $13.6
million and $131.7 million are included in this amount for the
years ended December 31, 2022 and December 31, 2021,
respectively.
The following table reconciles, for the
periods shown below, net interest margin on a fully tax-equivalent
basis:
Three Months Ended
Twelve Months Ended
(Dollars in thousands)
December 31, 2022
September 30, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Net interest margin - U.S. GAAP
basis
Net interest income
$
33,449
$
29,846
$
21,503
$
111,803
$
77,159
Average interest-earning assets
2,926,949
2,810,486
2,636,074
2,798,784
2,410,827
Net interest margin
4.53
%
4.21
%
3.24
%
3.99
%
3.20
%
Net interest margin - non-U.S. GAAP
basis
Net interest income
$
33,449
$
29,846
$
21,503
$
111,803
$
77,159
Impact of fully tax-equivalent
adjustment
295
293
320
1,128
1,392
Net interest income on a fully
tax-equivalent basis
33,744
30,139
21,824
112,931
78,551
Average interest-earning assets
2,926,949
2,810,486
2,636,074
2,798,784
2,410,827
Net interest margin on a fully
tax-equivalent basis
4.57
%
4.25
%
3.28
%
4.04
%
3.26
%
Selected Financial
Data
(Unaudited) (Dollars in
thousands, except per share data)
Quarterly
Year-to-Date
2022
2022
2021
2022
2021
Fourth Quarter
Third Quarter
Fourth Quarter
Earnings and Per Share Data:
Net income
$
6,509
$
2,718
$
9,959
15,047
39,121
Net income available to common
shareholders
$
6,509
$
2,718
$
9,959
15,047
39,086
Earnings per share - basic
$
0.52
$
0.22
$
0.83
$
1.23
$
3.32
Earnings per share - diluted
$
0.50
$
0.21
$
0.77
$
1.17
$
3.10
Cash dividends paid per common share
$
0.17
$
0.17
$
0.15
$
0.68
$
0.51
Book value per common share
$
20.69
$
19.85
$
22.70
$
20.69
$
22.70
Tangible book value per common share 1
$
20.25
$
19.38
$
22.17
$
20.25
$
22.17
Weighted-average shares outstanding -
basic
12,279,462
12,238,505
12,057,451
12,279,462
11,778,557
Weighted-average shares outstanding -
diluted
12,870,734
12,854,951
12,944,919
12,870,734
12,613,620
Performance Ratios:
Return on average assets 2
0.8
%
0.4
%
1.4
%
0.5
%
1.5
%
Return on average equity 2
10.8
%
4.2
%
15.0
%
5.9
%
15.6
%
Net interest margin 3 4
4.57
%
4.25
%
3.28
%
4.04
%
3.26
%
Efficiency ratio 5
72.3
%
78.8
%
80.7
%
78.2
%
69.7
%
Overhead ratio 2 6
3.6
%
4.0
%
4.1
%
3.9
%
3.7
%
Equity to assets
8.5
%
7.8
%
9.8
%
8.5
%
9.8
%
Asset Quality Data and Ratios:
Charge-offs
$
7,878
$
3,653
$
1,619
$
15,183
$
1,619
Recoveries
$
2,507
$
2,313
$
316
$
6,560
$
316
Net loan charge-offs to total loans 2
7
0.9
%
0.2
%
0.1
%
0.4
%
0.1
%
Allowance for loan losses
$
23,837
$
26,515
$
18,266
$
23,837
$
18,266
Allowance for loan losses to total loans
8
1.01
%
1.07
%
0.98
%
1.01
%
0.98
%
Nonperforming loans
$
11,165
$
22,350
$
17,713
$
11,165
$
17,713
Nonperforming loans to total loans
0.5
%
0.9
%
0.9
%
0.5
%
0.9
%
Intercoastal Mortgage Company, LLC
Production Data9:
Mortgage pipeline
$
678,345
$
792,388
$
1,007,990
$
678,345
$
1,007,990
Loans originated
$
407,070
$
606,805
$
1,046,977
$
3,120,577
$
6,269,371
Loans closed
$
388,417
$
615,585
$
977,354
$
2,628,149
$
5,607,951
Loans sold
$
326,003
$
619,059
$
957,153
$
2,325,709
$
5,326,029
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 Intercoastal
Mortgage Company, LLC, 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)
December 31, 2022
September 30, 2022
December 31, 2021
Goodwill
$
3,988
$
3,988
$
3,988
Intangibles
1,631
1,806
2,316
Total intangibles
5,619
5,794
6,304
Total equity attributable to parent
261,084
243,913
274,328
Less: Total intangibles
(5,619
)
(5,794
)
(6,304
)
Tangible common equity
255,465
238,119
268,024
Tangible common equity
255,465
238,119
268,024
Common shares outstanding (000s)
12,618
12,287
12,087
Tangible book value per common share
$
20.25
$
19.38
$
22.17
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230217005089/en/
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
MVB Financial (NASDAQ:MVBF)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
MVB Financial (NASDAQ:MVBF)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024