MVB Financial Corp. Announces Fourth Quarter and Full Year 2022 Results

FAIRMONT, W. Va.--()--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

 

 

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

Release Summary

MVB Financial Corp. announced financial results for the fourth quarter and year ended Dec. 31, 2022, with reported net income of $6.5M.

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