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, 2024, with reported net income of $9.4
million, or $0.73 basic and $0.72 diluted earnings per share for
the three months ended December 31, 2024.
Fourth Quarter 2024
Highlights
Net income was $9.4 million, an increase of
$7.4 million from prior quarter.
Noninterest bearing deposits represent 34.9%
of total deposits.
Tangible book value per share of $23.37, up
0.7% from the prior quarter.
Capital strength further enhanced.
MVB names Jeffrey Weidley as Chief Deposit
Officer and Joe Rodriguez as Chief Risk Officer.
From Larry F. Mazza, Chief Executive Officer, MVB
Financial:
“While the fourth quarter presented financial challenges, MVB
continued to adapt and narrow our strategic focus, positioning the
company for long-term success. The fourth quarter marked the end of
a pivotal transition year, during which we simplified our growth
strategy and strengthened our team to make meaningful investments
in the future. Recent key leadership appointments have been made to
help support this shift. In mid-November, risk management industry
veteran Joe Rodriguez, formerly of Capital One, joined as Chief
Risk Officer, bringing a wealth of experience in transforming risk
management into a key business driver. After year-end, we appointed
Jeffrey Weidley as Chief Deposit Officer. A seasoned banker in the
DC metro area, Jeffrey will oversee strategies to grow MVB’s
deposit base.
“Looking ahead, I’m encouraged by the continued evolution of our
business model and our strong foundation, which includes a
best-in-class core funding profile, a strong liquidity position,
capital management strength and stable asset quality. Our laser
focus on payments continues to drive meaningful progress, as we
deliver innovative solutions to support our existing clients and
grow revenue. With loan pipelines building and a renewed sense of
optimism across the broader economy, MVB is well-positioned to
adapt to future opportunities and create long-term value for our
clients and stakeholders.”
FOURTH QUARTER 2024 HIGHLIGHTS
- Noninterest income higher on gain on sale of assets and
higher revenue from Victor subsidiary; expenses higher due
primarily to higher personnel costs.
- Total noninterest income increased $14.6 million, or 219.7%,
relative to the prior quarter, to $21.3 million. The increase is
primarily attributable to the $11.8 million gain on sale of assets
associated with the previously disclosed sale-leaseback
transaction, an increase of $1.2 million in other operating income,
driven by net deposit network fee income and revenue from our
subsidiary Victor Technologies, Inc. (“Victor”), and a $1.0 million
increase in gain on sale of loans.
- Noninterest expense increased $4.1 million, or 14.0%, relative
to the prior quarter, to $33.6 million. The increase is primarily
due to employee benefits costs and incentive compensation, as well
as higher professional fees driven by incremental internal audit
and legal fees. Additionally, other operating expenses increased
reflecting higher correspondent banking fees driven by transaction
volume.
- Measures of foundational strength were further enhanced.
- The Community Bank Leverage Ratio, Tier 1 Risk-Based Capital
Ratio and MVB Bank’s Total Risk-Based Capital Ratio were 11.2%,
15.1%, and 15.8%, respectively, compared to 10.9%, 14.9%, and
15.7%, respectively, at the prior quarter-end.
- The tangible common equity ratio, a non-U.S. GAAP financial
measure, was 9.7% as of December 31, 2024, up from 8.8% as of
September 30, 2024.
- Book value per share and tangible book value per share, a
non-U.S. GAAP measure, were $23.61 and $23.37, respectively, which
both represent increases of 0.7% relative to the prior
quarter-end.
- Nonperforming loans declined $3.9 million, or 13.8%, to $24.6
million, or 1.2% of total loans, from $28.6 million, or 1.3% of
total loans, at the prior quarter-end. Criticized loans totaled
$130.5 million, or 6.2% of total loans, as compared to $124.2
million, or 5.7% of total loans, at the prior quarter-end.
- Provision for credit losses totaled $0.3 million, down from
$1.0 million for the prior quarter as a result of lower loan
balances. Allowance for credit losses was 0.9% of total loans at
December 31, 2024, as compared to 1.0% at the prior
quarter-end.
INCOME STATEMENT
Net interest income on a tax-equivalent basis totaled $25.1
million for the fourth quarter of 2024, a decline of $1.7 million,
or 6.3%, from the third quarter of 2024 and $6.2 million, or 19.8%,
from the fourth quarter of 2023. The decline in the fourth quarter
of 2024 compared to the prior periods was driven by a decline in
the net interest margin and lower average earning asset
balances.
Interest income declined $3.6 million, or 7.7%, from the third
quarter of 2024 and $6.6 million, or 13.4%, from the fourth quarter
of 2023. The decline from the third quarter of 2024 reflects lower
loan balances and the impact of lower interest rates on interest
income from loans and cash balances. The decline from the fourth
quarter of 2023 reflects a decline in cash balances, largely driven
by the exit of digital asset program accounts, a decline in loan
balances and the impact of lower interest rates on interest income
from loans and cash balances.
Interest expense declined $1.9 million, or 9.4%, compared to the
third quarter of 2024 and $0.4 million, or 2.4%, compared to the
fourth quarter of 2023. The cost of funds was 2.56% for the fourth
quarter of 2024, down 21 basis points compared to the third quarter
of 2024 and up 12 basis points compared to the fourth quarter of
2023. The decline in the cost of funds compared to the prior
quarter reflects lower brokered deposits. Additionally, the current
quarter cost of funds reflected $0.2 million of termination costs
related to the Company’s decision to call a brokered certificate of
deposit (“CD”) during the fourth quarter of 2024, while the prior
quarter reflected termination costs of $0.3 million associated with
two brokered CDs that were called during the third quarter of 2024.
Relative to the year-ago period, the increase in the cost of funds
reflects the impact of higher interest rates on our deposits, a
shift in the mix of average deposits and the exit of the digital
asset program account relationships.
On a fully tax-equivalent basis, net interest margin for the
fourth quarter of 2024 was 3.46%, a decline of 15 basis points from
the third quarter of 2024 and 60 basis points from the fourth
quarter of 2023. 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. Contraction in the net
interest margin from the third quarter of 2024 primarily reflected
lower loan balances, partially offset by lower funding costs.
Contraction in the net interest margin from the fourth quarter of
2023 primarily reflected higher funding costs and an unfavorable
shift in the mix of deposit funding, partially offset by higher
earning asset yields.
Noninterest income totaled $21.3 million for the fourth quarter
of 2024, an increase of $14.6 million, or 219.7%, from the third
quarter of 2024 and $16.8 million, or 379.5%, from the fourth
quarter of 2023. The increase compared to the third quarter of 2024
was primarily driven by the $11.8 million gain on sale of assets
associated with the sale-leaseback transaction and increases of
$1.2 million in other operating income, driven by revenue from our
subsidiary Victor, and $1.0 million in gain on sale of loans. The
increase in noninterest income from the fourth quarter of 2023 was
primarily driven by the $11.8 million gain on sale of assets
associated with the sale-leaseback transaction and $1.3 million in
equity method investment income from our mortgage companies,
compared to a $2.4 million loss in equity method investment income
from our mortgage segment in the prior year period.
Noninterest expense totaled $33.6 million for the fourth quarter
of 2024, an increase of $4.1 million, or 14.0%, from the third
quarter of 2024 and $5.3 million, or 18.8%, from the fourth quarter
of 2023. The increase from the third quarter of 2024 was driven by
increases of $2.1 million in employee benefits and incentive
compensation, $1.1 million in professional fees, driven by
incremental internal audit and legal fees, and $0.9 million in
other operating expense, driven by higher correspondent banking
fees as transaction volume increased. The increase from the fourth
quarter of 2023 primarily reflected increases of $3.9 million in
employee benefits and incentive compensation, $0.8 million in other
operating expense and $0.5 million in travel, entertainment, dues
and subscriptions.
BALANCE SHEET
Loans totaled $2.10 billion at December 31, 2024, a decline of
$71.1 million, or 3.3%, as compared to September 30, 2024 and
$217.5 million, or 9.4%, as compared to December 31, 2023. The
decline in loan balances relative to the prior quarters primarily
reflects loan sales, slower loan growth based on overall market
conditions and the impact of loan amortization and payoffs.
Deposits totaled $2.69 billion as of December 31, 2024, a
decline of $308.0 million, or 10.3%, from September 30, 2024 and
$207.9 million, or 7.2%, from December 31, 2023. NIB deposits
totaled $941.0 million as of December 31, 2024, a decline of $48.2
million, or 4.9%, from September 30, 2024 and $256.3 million, or
21.4%, from December 31, 2023. The decline in deposit balances
relative to the prior quarters primarily reflects the utilization
of off-balance sheet deposit networks to generate fee income,
enhance capital efficiency and manage liquidity and concentration
risk. Relative to the prior year period, the decline in deposit
balances also reflects the exit of digital asset program
accounts.
In January 2025, the Bank sold its interest in Trabian
Technology, Inc (“Trabian”). As a result, the related assets and
liabilities of Trabian are shown as held-for-sale on the condensed
consolidated balance sheet.
CAPITAL
The Community Bank Leverage Ratio was 11.2% as of December 31,
2024, compared to 10.9% as of September 30, 2024 and 10.5% as of
December 31, 2023. MVB’s Tier 1 Risk-Based Capital Ratio was 15.1%
as of December 31, 2024, compared to 14.9% as of September 30, 2024
and 14.4% as of December 31, 2023. The Bank’s Total Risk-Based
Capital Ratio was 15.8% as of December 31, 2024, compared to 15.7%
as of September 30, 2024 and 15.1% as of December 31, 2023.
The Company issued a quarterly cash dividend of $0.17 per share
for the quarter ended December 31, 2024, consistent with the
quarters ended September 30, 2024 and December 31, 2023.
ASSET QUALITY
Nonperforming loans totaled $24.6 million, or 1.2% of total
loans, as of the fourth quarter of 2024, as compared to $28.6
million, or 1.3% of total loans as of the third quarter of 2024 and
$8.3 million, or 0.4% of total loans as of the fourth quarter of
2023. The increase in nonperforming loans reflects the addition of
a multifamily commercial construction loan with an outstanding
balance of $13.5 million during the year. Criticized loans were
$130.5 million, or 6.2% of total loans, as compared to $124.2
million, or 5.7% of total loans, as of the third quarter of 2024
and $122.4 million, or 5.3% of total loans, as of the fourth
quarter of 2023.
Net charge-offs were $1.5 million, or 0.3% of total loans, for
the fourth quarter of 2024, compared to $0.7 million, or 0.1% of
total loans, for the third quarter of 2024 and $0.5 million, or
0.1% of total loans for the fourth quarter of 2023.
The provision for credit losses totaled $0.3 million for the
quarter ended December 31, 2024, compared to $1.0 million for the
quarter ended September 30, 2024 and a release of allowance of $2.1
million for the quarter ended December 31, 2023. The lower
provision for credit losses for the quarter ended December 31, 2024
compared to September 30, 2024 reflected lower loan balances. The
allowance for credit losses was 0.9% of total loans at December 31,
2024, as compared to 1.0% as of September 30, 2024 and 1.0% as of
December 31, 2023.
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; impacts related to or resulting from recent turmoil
in the banking industry; inability to successfully execute business
plans, including strategies related to investments in Fintech
companies; competition; unforeseen events, such as pandemics or
natural disasters, and any governmental or societal responses
thereto; changes in economic, business and political conditions;
changes in demand for loan products and deposit flow; changes in
deposit classifications; 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, 2023, 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.
Non-U.S. GAAP Financial Measures
This document contains supplemental financial information
determined by methods other than in accordance with accounting
principles generally accepted in the United States of America
(“U.S. GAAP”). Management uses these non-U.S. GAAP measures in its
analysis of the Company’s performance. These measures should not be
considered a substitute for U.S. GAAP basis measures nor should
they be viewed as a substitute for operating results determined in
accordance with U.S. GAAP. Management believes the presentation of
non-U.S. GAAP financial measures that exclude the impact of
specified items provide useful supplemental information that is
essential to a proper understanding of the Company’s financial
condition and results. Non-U.S. GAAP measures are not formally
defined under U.S. GAAP, and other entities may use calculation
methods that differ from those used by us. As a complement to U.S.
GAAP financial measures, our management believes these non-U.S.
GAAP financial measures assist investors in comparing the financial
condition and results of operations of financial institutions due
to the industry prevalence of such non-U.S. GAAP measures. See the
tables below for a reconciliation of these non-U.S. GAAP measures
to the most directly comparable U.S. GAAP financial measures.
MVB Financial Corp.
Financial Highlights Consolidated
Statements of Income (Unaudited) (Dollars in thousands, except
per share data)
Quarterly
Year-to-Date
2024
2024
2023
2024
2023
Fourth Quarter
Third Quarter
Fourth Quarter
Interest income
$
43,058
$
46,627
$
49,699
$
185,842
$
189,818
Interest expense
18,154
20,042
18,592
76,644
66,535
Net interest income
24,904
26,585
31,107
109,198
123,283
Provision (release of allowance) for
credit losses
331
959
(2,103
)
3,541
(1,921
)
Net interest income after provision
(release of allowance) for credit losses
24,573
25,626
33,210
105,657
125,204
Total noninterest income
21,280
6,657
4,438
42,913
19,715
Noninterest expense:
Salaries and employee benefits
18,795
16,722
14,863
67,955
63,371
Other expense
14,825
12,763
13,438
54,271
54,254
Total noninterest expenses
33,620
29,485
28,301
122,226
117,625
Income before income taxes
12,233
2,798
9,347
26,344
27,294
Income taxes
2,795
642
1,431
6,099
5,070
Net income from continuing operations
before noncontrolling interest
9,438
2,156
7,916
20,245
22,224
Income from discontinued operations before
income taxes
—
—
—
—
11,831
Income taxes - discontinued operations
—
—
—
—
3,049
Net income from discontinued
operations
—
—
—
—
8,782
Net income, before noncontrolling
interest
9,438
2,156
7,916
20,245
31,006
Net (income) loss attributable to
noncontrolling interest
2
(76
)
(5
)
(154
)
226
Net income available to common
shareholders
$
9,440
$
2,080
$
7,911
$
20,091
$
31,232
Earnings per share from continuing
operations - basic
$
0.73
$
0.16
$
0.62
$
1.56
$
1.77
Earnings per share from discontinued
operations - basic
$
—
$
—
$
—
$
—
$
0.69
Earnings per share - basic
$
0.73
$
0.16
$
0.62
$
1.56
$
2.46
Earnings per share from continuing
operations - diluted
$
0.72
$
0.16
$
0.61
$
1.53
$
1.72
Earnings per share from discontinued
operations - diluted
$
—
$
—
$
—
$
—
$
0.68
Earnings per share - diluted
$
0.72
$
0.16
$
0.61
$
1.53
$
2.40
Noninterest Income
(Unaudited) (Dollars in thousands)
Quarterly
Year-to-Date
2024
2024
2023
2024
2023
Fourth Quarter
Third Quarter
Fourth Quarter
Card acquiring income
$
489
$
336
$
1,348
$
1,413
$
3,603
Service charges on deposits
859
1,088
174
4,573
2,850
Interchange income
2,470
2,428
2,289
10,314
7,323
Total payment card and service charge
income
3,818
3,852
3,811
16,300
13,776
Equity method investments income
(loss)
1,319
746
(2,429
)
1,421
(2,499
)
Compliance and consulting income
1,110
1,291
986
4,675
4,312
Gain (loss) on sale of loans
1,012
26
271
1,038
(744
)
Investment portfolio gains (losses)
721
498
75
1,945
(1,659
)
Loss on acquisition and divestiture
activity
—
—
—
—
(986
)
Gain (loss) on sale of assets
11,771
(2
)
—
11,703
—
Other noninterest income
1,529
246
1,724
5,831
7,515
Total noninterest income
$
21,280
$
6,657
$
4,438
$
42,913
$
19,715
Condensed Consolidated Balance
Sheets (Unaudited) (Dollars in thousands)
December 31, 2024
September 30, 2024
December 31, 2023
Cash and cash equivalents
$
317,913
$
610,911
$
398,229
Securities available-for-sale, at fair
value
411,640
374,828
345,275
Equity securities
42,583
41,760
41,086
Loans held-for-sale
—
—
629
Loans receivable
2,100,131
2,171,272
2,317,594
Less: Allowance for credit losses
(19,663
)
(21,499
)
(22,124
)
Loans receivable, net
2,080,468
2,149,773
2,295,470
Premises and equipment, net
12,475
18,838
20,928
Assets held-for-sale
2,278
—
—
Other assets
261,347
222,646
212,265
Total assets
$
3,128,704
$
3,418,756
$
3,313,882
Noninterest-bearing deposits
$
940,994
$
989,144
$
1,197,272
Interest-bearing deposits
1,752,621
2,012,504
1,704,204
Senior term loan
—
—
6,786
Subordinated debt
73,787
73,725
73,540
Liabilities held-for-sale
720
—
—
Other liabilities
54,791
40,183
42,738
Stockholders' equity
305,791
303,200
289,342
Total liabilities and stockholders'
equity
$
3,128,704
$
3,418,756
$
3,313,882
Average Balances and Interest
Rates (Unaudited) (Dollars in thousands)
Three Months Ended
Three Months Ended
Three Months Ended
December 31, 2024
September 30, 2024
December 31, 2023
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
$
358,699
$
4,191
4.65
%
$
400,330
$
5,218
5.19
%
$
442,521
$
5,944
5.33
%
Investment securities:
Taxable
290,468
2,199
3.01
258,151
1,846
2.84
222,303
1,444
2.58
Tax-exempt 1
105,190
851
3.22
104,769
867
3.29
98,464
876
3.53
Loans and loans held-for-sale: 2
Commercial 3
1,504,730
28,727
7.59
1,553,666
31,136
7.97
1,635,510
33,665
8.17
Tax-exempt 1
2,939
32
4.33
3,129
34
4.32
3,492
38
4.32
Real estate
560,790
6,025
4.27
558,691
6,446
4.59
576,580
6,421
4.42
Consumer
64,700
1,219
7.50
68,337
1,269
7.39
76,088
1,503
7.84
Total loans
2,133,159
36,003
6.71
2,183,823
38,885
7.08
2,291,670
41,627
7.21
Total earning assets
2,887,516
43,244
5.96
2,947,073
46,816
6.32
3,054,958
49,891
6.48
Less: Allowance for credit losses
(21,542
)
(22,043
)
(24,079
)
Cash and due from banks
6,407
4,638
5,771
Other assets
284,294
284,640
292,574
Total assets
$
3,156,675
$
3,214,308
$
3,329,224
Liabilities
Deposits:
NOW
$
529,505
$
4,092
3.07
%
$
534,494
$
4,422
3.29
%
$
637,144
$
5,386
3.35
%
Money market checking
344,546
2,296
2.65
434,174
3,378
3.10
650,925
3,691
2.25
Savings
68,875
288
1.66
116,861
883
3.01
70,146
442
2.50
IRAs
8,085
92
4.53
8,164
91
4.43
7,296
66
3.59
CDs
834,668
10,561
5.03
800,986
10,440
5.19
590,517
8,014
5.38
Repurchase agreements and federal funds
sold
3,904
21
2.14
3,589
19
2.11
4,736
—
—
FHLB and other borrowings
11
—
—
44
—
—
11
—
—
Senior term loan3
—
—
—
—
—
—
8,183
183
8.87
Subordinated debt
73,765
804
4.34
73,702
809
4.37
73,510
810
4.37
Total interest-bearing liabilities
1,863,359
18,154
3.88
1,972,014
20,042
4.04
2,042,468
18,592
3.61
Noninterest-bearing demand deposits
961,142
910,787
975,122
Other liabilities
35,055
37,591
39,410
Total liabilities
2,859,556
2,920,392
3,057,000
Stockholders’ equity
Common stock
13,785
13,776
13,588
Paid-in capital
163,986
163,189
160,106
Treasury stock
(16,741
)
(16,741
)
(16,741
)
Retained earnings
161,382
160,694
156,004
Accumulated other comprehensive loss
(25,416
)
(27,069
)
(40,688
)
Total stockholders’ equity attributable to
parent
296,996
293,849
272,269
Noncontrolling interest
123
67
(45
)
Total stockholders’ equity
297,119
293,916
272,224
Total liabilities and stockholders’
equity
$
3,156,675
$
3,214,308
$
3,329,224
Net interest spread (tax-equivalent)
2.08
%
2.28
%
2.87
%
Net interest income and margin
(tax-equivalent) 1
$
25,090
3.46
%
$
26,774
3.61
%
$
31,299
4.06
%
Less: Tax-equivalent adjustments
$
(186
)
$
(189
)
$
(193
)
Net interest spread
2.05
%
2.25
%
2.84
%
Net interest income and margin
$
24,904
3.43
%
$
26,585
3.59
%
$
31,107
4.04
%
1 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 included in the tables on page 13.
2 Non-accrual loans are included in total
loan balances, lowering the effective yield for the portfolio in
the aggregate.
3 The senior term loan was paid off in May
2024, and the unamortized debt issuance costs were recorded as
interest expense upon the repayment.
Twelve Months Ended
Twelve Months Ended
December 31, 2024
December 31, 2023
Average
Balance
Interest
Income/
Expense
Yield/
Cost
Average
Balance
Interest
Income/
Expense
Yield/
Cost
Assets
Interest-bearing balances with banks
$
422,165
$
21,814
5.17
%
$
414,466
$
21,043
5.08
%
Investment securities:
Taxable
261,986
7,693
2.94
221,395
5,576
2.52
Tax-exempt 1
104,765
3,287
3.14
116,680
4,347
3.73
Loans and loans held-for-sale: 2
Commercial
1,570,284
122,839
7.82
1,621,299
124,078
7.65
Tax-exempt 1
3,175
139
4.38
3,732
163
4.37
Real estate
564,633
25,474
4.51
591,157
24,764
4.19
Consumer
70,943
5,314
7.49
108,988
10,793
9.90
Total loans
2,209,035
153,766
6.96
2,325,176
159,798
6.87
Total earning assets
2,997,951
186,560
6.22
3,077,717
190,764
6.20
Less: Allowance for loan losses
(22,108
)
(29,746
)
Cash and due from banks
5,246
6,659
Other assets
302,304
302,036
Total assets
$
3,283,393
$
3,356,666
Liabilities
Deposits:
NOW
$
521,337
$
17,587
3.37
%
$
697,266
$
19,851
2.85
%
Money market checking
396,881
12,770
3.22
504,730
10,352
2.05
Savings
115,270
3,756
3.26
76,908
1,871
2.43
IRAs
7,990
338
4.23
6,662
194
2.91
CDs
760,714
38,654
5.08
576,726
29,392
5.10
Repurchase agreements and federal funds
sold
3,477
44
1.27
5,662
1
0.02
FHLB and other borrowings
25
2
6.46
17,542
889
5.07
Senior term loan3
2,355
264
11.21
9,007
766
8.50
Subordinated debt
73,667
3,229
4.38
73,415
3,219
4.38
Total interest-bearing liabilities
1,881,716
76,644
4.07
1,967,918
66,535
3.38
Noninterest-bearing demand deposits
1,071,900
1,074,292
Other liabilities
37,683
40,435
Total liabilities
2,991,299
3,082,645
Stockholders’ equity
Common stock
13,738
13,541
Paid-in capital
162,811
159,523
Treasury stock
(16,741
)
(16,741
)
Retained earnings
161,181
154,041
Accumulated other comprehensive loss
(28,821
)
(36,419
)
Total stockholders’ equity attributable to
parent
292,168
273,945
Noncontrolling interest
(74
)
76
Total stockholders’ equity
292,094
274,021
Total liabilities and stockholders’
equity
$
3,283,393
$
3,356,666
Net interest spread (tax-equivalent)
2.15
%
2.82
%
Net interest income and margin
(tax-equivalent) 1
$
109,916
3.67
%
$
124,229
4.04
%
Less: Tax-equivalent adjustments
$
(718
)
$
(946
)
Net interest spread
2.13
%
2.79
%
Net interest income and margin
$
109,198
3.64
%
$
123,283
4.01
%
1 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 included in the tables on page 13.
2 Non-accrual loans are included in total
loan balances, lowering the effective yield for the portfolio in
the aggregate.
3 The senior term loan was paid off in May
2024, and the unamortized debt issuance costs were recorded as
interest expense upon the repayment.
Selected Financial Data
(Unaudited) (Dollars in thousands, except per share data)
Quarterly
Year-to-Date
2024
2024
2023
2024
2023
Fourth Quarter
Third Quarter
Fourth Quarter
Earnings and Per Share Data:
Net income
$
9,440
$
2,080
$
7,911
20,091
31,232
Earnings per share from continuing
operations - basic
$
0.73
$
0.16
$
0.62
$
1.56
$
1.77
Earnings per share from discontinued
operations - basic
$
—
$
—
$
—
$
—
$
0.69
Earnings per share - basic
$
0.73
$
0.16
$
0.62
$
1.56
$
2.46
Earnings per share from continuing
operations - diluted
$
0.72
$
0.16
$
0.61
$
1.53
$
1.72
Earnings per share from discontinued
operations - diluted
$
—
$
—
$
—
$
—
$
0.68
Earnings per share - diluted
$
0.72
$
0.16
$
0.61
$
1.53
$
2.40
Cash dividends paid per common share
$
0.17
$
0.17
$
0.17
$
0.68
$
0.68
Book value per common share
$
23.61
$
23.44
$
22.68
$
23.61
$
22.68
Tangible book value per common share 1
$
23.37
$
23.20
$
22.43
$
23.37
$
22.43
Weighted-average shares outstanding -
basic
12,937,364
12,927,962
12,740,193
12,890,161
12,694,206
Weighted-average shares outstanding -
diluted
13,195,215
13,169,011
13,024,562
13,136,758
12,997,332
Performance Ratios:
Return on average assets 2
1.2
%
0.3
%
1.0
%
0.6
%
0.9
%
Return on average equity 2
12.7
%
2.8
%
11.6
%
6.9
%
11.4
%
Net interest margin 3 4
3.46
%
3.61
%
4.06
%
3.67
%
4.04
%
Efficiency ratio 5 6
72.8
%
88.7
%
79.6
%
80.4
%
82.3
%
Overhead ratio 2 7
4.3
%
3.7
%
3.4
%
3.7
%
3.5
%
Equity to assets
9.8
%
8.9
%
8.7
%
9.8
%
8.7
%
Asset Quality Data and Ratios:
Charge-offs
$
2,677
$
1,392
$
1,868
$
7,757
$
18,479
Recoveries
$
1,153
$
681
$
1,343
$
3,357
$
9,185
Net loan charge-offs to total loans 2
8
0.3
%
0.1
%
0.1
%
0.2
%
0.4
%
Allowance for credit losses
$
19,663
$
21,499
$
22,124
$
19,663
$
22,124
Allowance for credit losses to total loans
9
0.94
%
0.99
%
0.95
%
0.94
%
0.95
%
Nonperforming loans
$
24,607
$
28,556
$
8,267
$
24,607
$
8,267
Nonperforming loans to total loans
1.2
%
1.3
%
0.4
%
1.2
%
0.4
%
Mortgage Company Equity Method
Investees Production Data10:
Mortgage pipeline
$
1,025,742
$
1,048,865
$
706,873
$
1,025,742
$
706,873
Loans originated
$
1,325,698
$
1,469,223
$
1,020,128
$
5,228,415
$
4,319,382
Loans closed
$
947,004
$
937,333
$
724,453
$
3,366,493
$
3,007,221
Loans sold
$
777,821
$
655,668
$
639,788
$
2,988,639
$
2,466,807
1 Common equity less total goodwill and
intangibles per common share, a non-U.S. GAAP measure. See the
reconciliation of this non-GAAP financial measure to its most
directly comparable GAAP financial measure included in the tables
on page 13.
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, a non-GAAP financial measure.
5 Noninterest expense as a percentage of
net interest income and noninterest income, a non-U.S. GAAP
measure.
6 Includes net income from discontinued
operations.
7 Noninterest expense as a percentage of
average assets, a non-U.S. GAAP measure.
8 Charge-offs, less recoveries.
9 Excludes loans held for sale.
10 Information is related to Intercoastal
Mortgage Company, LLC and Warp Speed Holdings LLC, entities in
which MVB has an ownership interest that are accounted for as
equity method investments.
Non-GAAP Reconciliation: Net
Interest Margin on a Full Tax-Equivalent Basis 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, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Net interest margin - U.S. GAAP
basis
Net interest income
$
24,904
$
26,585
$
31,107
$
109,198
$
123,283
Average interest-earning assets
2,887,516
2,947,073
3,054,958
2,997,951
3,077,717
Net interest margin
3.43
%
3.59
%
4.04
%
3.64
%
4.01
%
Net interest margin - non-U.S. GAAP
basis
Net interest income
$
24,904
$
26,585
$
31,107
$
109,198
$
123,283
Impact of fully tax-equivalent
adjustment
186
189
193
718
946
Net interest income on a fully
tax-equivalent basis
$
25,090
$
26,774
$
31,299
$
109,916
$
124,229
Average interest-earning assets
2,887,516
2,947,073
3,054,958
2,997,951
3,077,717
Net interest margin on a fully
tax-equivalent basis
3.46
%
3.61
%
4.06
%
3.67
%
4.04
%
Non-U.S. GAAP Reconciliation:
Tangible Book Value per Common Share and Tangible Common Equity
Ratio (Unaudited) (Dollars in thousands, except per share
data)
December 31, 2024
September 30, 2024
December 31, 2023
Tangible Book Value per Common
Share
Goodwill
$
2,838
$
2,838
$
2,838
Intangibles
262
285
352
Total intangibles
$
3,100
$
3,123
$
3,190
Total equity attributable to parent
$
305,679
$
303,086
$
289,384
Less: Total intangibles
(3,100
)
(3,123
)
(3,190
)
Tangible common equity
$
302,579
$
299,963
$
286,194
Tangible common equity
$
302,579
$
299,963
$
286,194
Common shares outstanding (000s)
12,945
12,928
12,758
Tangible book value per common share
$
23.37
$
23.20
$
22.43
Tangible Common Equity Ratio
Total assets
$
3,128,704
$
3,418,756
$
3,313,882
Less: Total intangibles
(3,100
)
(3,123
)
(3,190
)
Tangible assets
$
3,125,604
$
3,415,633
$
3,310,692
Tangible assets
$
3,125,604
$
3,415,633
$
3,310,692
Tangible common equity
$
302,579
$
299,963
$
286,194
Tangible common equity ratio
9.7
%
8.8
%
8.6
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250213015377/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
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