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MVB Financial Corp. Announces Fourth Quarter and Full Year 2023 Results

MVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial,” “MVB” or the “Company”), the holding company for MVB Bank, Inc. ("MVB Bank"), today announced financial results for the fourth quarter and year ended December 31, 2023, with reported net income of $7.9 million, or $0.62 basic and $0.61 diluted earnings per share for the three months ended December 31, 2023.

Fourth Quarter 2023 Highlights As Compared to Third Quarter 2023

Net interest income increased 4.2%, or $1.2 million.

Net interest margin improved by 17 bps to 4.04%.

Earnings per share up 106.7% to $0.62.

Loan growth of 2.1%; Balance sheet loan to deposit ratio of 79.9% from 74.7%.

Noninterest expense declined by 7.9%, or $2.4 million.

Book value per share and tangible book value per share, a non-GAAP financial measure, increased 6.3% and 6.4% to $22.68 and $22.43, respectively.

Asset quality measures improved; Capital strength further enhanced.

From Larry F. Mazza, Chief Executive Officer, MVB Financial:

“MVB closed a challenging year for the banking industry with strong fourth quarter results. Loans and investment securities continued to reprice higher, excess liquidity was redeployed as the pace of loan growth picked up and funding costs stabilized, driving significant improvement in net interest margin and net interest income. At the same time, expenses were well-controlled, Fintech-related fee income growth accelerated and measures of safety, soundness, foundational strength and shareholder value were improved and further enhanced. Team MVB’s resilience and adaptability enabled us to navigate the disruptive industry events last year, and now leave us well-positioned to drive further improvement in earnings and profitability as market conditions begin to turn favorably.”

FOURTH QUARTER 2023 HIGHLIGHTS

  • Loan growth and net interest margin expansion powered net interest income growth.
    • Net interest income on a fully tax-equivalent basis, a non-GAAP financial measure, increased 4.0%, or $1.2 million, to $31.3 million relative to the prior quarter, primarily reflecting net interest margin expansion and higher average loan balances, partially offset by lower interest-bearing balances with banks.
    • Net interest margin on a fully tax-equivalent basis, a non-GAAP financial measure, was 4.06%, up 16 basis points from the prior quarter, primarily reflecting higher earning asset yields, a favorable shift in the mix of earning assets and deposit funding and relatively stable funding costs. Total cost of funds was 2.44%, compared to 2.43% for the prior quarter.
    • Average earning asset balances decreased 0.3% during the fourth quarter of 2023, primarily reflecting lower interest-bearing balances with banks, primarily offset by higher average loan and investment securities balances. Average total loan balances increased 1.1%, largely driven by higher commercial loans.
  • Deposit balances declined as funding mix optimization continued.
    • Total deposits declined 4.5%, or $137.4 million, to $2.9 billion, compared to the prior quarter-end, primarily reflecting lower certificate of deposit (“CD”) balances, which includes a 10.5%, or $45.8 million, decline in brokered deposits, as the Company looks to reduce higher-cost funding that had been added in response to 2023 industry events.
    • Total off-balance sheet deposits remained consistent at $1.09 billion as compared to $1.11 billion at the prior quarter-end. Off-balance sheet deposit networks are utilized to generate fee income, enhance capital efficiency and manage liquidity and concentration risk.
    • Noninterest bearing (“NIB”) deposit balances increased 9.4%, or $103.4 million, to $1.20 billion, as compared to the prior quarter-end, primarily reflecting gaming and seasonal considerations. NIB deposits represented 41.3% of total deposits, as compared to 36.0% of total deposits at the prior quarter-end.
    • Balance sheet loan to deposit ratio was 79.9% as of December 31, 2023, compared to 74.7% as of September 30, 2023.
  • Asset quality measures improved; Capital strength and shareholder value further enhanced.
    • Nonperforming loans declined $2.3 million, or 22.0%, to $8.3 million, or 0.4% of total loans, from $10.6 million, or 0.5% of total loans, at the prior quarter-end. Criticized loans as a percentage of total loans were 5.3%, as compared to 6.1% at the prior quarter-end. Net charge-offs were $0.5 million, or 0.1% of total loans on an annualized basis, for the fourth quarter of 2023, compared to $5.9 million, or 1.0%, for the prior quarter.
    • The release of allowance for credit losses totaled $2.1 million, primarily reflecting the general improvement in credit indicators and the continued changes in loan portfolio composition. The allowance for credit losses was 1.0% of total loans, as compared to 1.1% as of the prior quarter-end.
    • The Community Bank Leverage Ratio, Tier 1 Risk-Based Capital Ratio and MVB Bank’s Total Risk-Based Capital Ratio were 10.5%, 14.4%, and 15.1%, respectively, compared to 10.4%, 14.0%, and 14.8%, respectively, at the prior quarter-end.
    • The tangible common equity to tangible assets ratio was 8.6%, compared to 7.8% at the prior quarter-end. Tangible book value per share, a non-U.S. GAAP measure, increased 6.4% to $22.43, relative to the prior quarter-end.
  • Expenses declined on lower personnel costs; Fee income down on mortgage loss; Fintech-related fee income increased.
    • Noninterest expense declined 7.9% to $28.3 million relative to the prior quarter, primarily reflecting lower salaries and employee benefits costs and other operating expense. Professional fees remained elevated due to actions taken to enhance regulatory and compliance infrastructure.
    • Total noninterest income declined 23.4% to $4.4 million relative to the prior quarter, primarily reflecting increased equity method investment losses, partially offset by higher payment card and service charge income, which primarily relates to the Company’s Fintech-related fee income initiatives.

INCOME STATEMENT

Net interest income on a tax-equivalent basis totaled $31.3 million for the fourth quarter of 2023, an increase of $1.2 million, or 4.0%, from the third quarter of 2023 and a decline of $2.4 million, or 7.2%, from the fourth quarter of 2022. The increase in net interest income compared to the third quarter of 2023 reflected a higher net interest margin, partially offset by a slight decline in total average earning asset balances. The decline compared to the fourth quarter of 2022 reflected higher funding costs, partially offset by higher average earning asset balances.

Interest income increased $1.4 million, or 2.8%, from the third quarter of 2023 and increased $9.0 million, or 22.1%, compared to the fourth quarter of 2022. The tax-equivalent yield on loans was 7.2% for the fourth quarter of 2023, compared to 7.0% for the third quarter of 2023 and 6.1% for the fourth quarter of 2022. Higher loan yields generally reflected the cumulative impact of loans booked at higher yields than the prevailing portfolio yield in prior periods and the repricing of variable rate loans.

Interest expense increased $0.1 million, or 0.7%, compared to the third quarter of 2023 and $11.3 million, or 156.3%, compared to the fourth quarter of 2022. The cost of funds was 2.44% for the fourth quarter of 2023, consistent with the third quarter of 2023 and up 144 basis points compared to the fourth quarter of 2022. The increase in cost of funds compared to the prior year reflected higher funding costs across the board and a shift in the mix of deposit funding toward higher cost deposit products.

On a fully tax-equivalent basis, net interest margin for the fourth quarter of 2023 was 4.06%, an increase of 16 basis points from the third quarter of 2023 and a decrease of 51 basis points from the fourth quarter of 2022. See the table below for a reconciliation between net interest margin and net interest margin on a fully tax-equivalent basis, a non-GAAP measure. The increase in net interest margin from the third quarter of 2023 primarily reflected higher loan and investment portfolio yields, a favorable shift in the mix of earning assets and deposit funding and stable funding costs. Contraction in the net interest margin from the fourth quarter of 2022 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 $4.4 million for the fourth quarter of 2023, a decrease of $1.4 million, or 23.4%, from the third quarter of 2023 and an increase of $1.0 million, or 29.2%, from the fourth quarter of 2022. The decrease compared to the third quarter of 2023 was primarily driven by an increase of $1.7 million in equity method investment losses from our mortgage companies and a $0.7 million loss on derivatives during the fourth quarter of 2023 without a comparable loss in the prior quarter, partially offset by a $1.0 million increase in payment card and service charge income. The increase in noninterest income from the fourth quarter of 2022 was primarily driven by increases of $2.4 million in gain on sale of loans, $2.1 million in payment card and service charge income, $1.5 million in holding gains on equity securities and $0.7 million in other operating income. The increases were partially offset by a $3.6 million gain on sale of assets in the fourth quarter of 2022 without a comparable gain in the current quarter, an increase of $1.1 million in equity method investment losses from our mortgage companies and a $0.7 million loss on derivatives in the fourth quarter of 2023 without a comparable loss in the prior year.

Noninterest expense totaled $28.3 million for the fourth quarter of 2023, a decrease of $2.4 million, or 7.9%, from the third quarter of 2023 and an increase of $1.6 million, or 5.8%, from the fourth quarter of 2022. The decrease from the third quarter of 2023 was driven by declines of $1.2 million in salaries and employee benefits, $0.8 million in other operating expense and $0.4 million in insurance, tax and assessment expense. The increase from the fourth quarter of 2022 primarily reflected higher professional fees of $1.8 million and higher salaries and employee benefits of $0.5 million, partially offset by a decline in other operating expense of $0.7 million.

BALANCE SHEET

Loans totaled $2.32 billion at December 31, 2023, an increase of $47.2 million, or 2.1%, and a decrease of $55.1 million, or 2.3%, as compared to September 30, 2023 and December 31, 2022, respectively. Loan growth compared to September 30, 2023 was driven primarily by higher commercial loan balances. The decrease in loan balances compared to December 31, 2022 primarily reflected deliberate efforts to improve balance sheet liquidity, lower market demand and the sale of $44.4 million of subprime automobile loans during 2023. Loans held-for-sale, which represent MVB Bank’s government guaranteed lending, were $0.6 million as of December 31, 2023, compared to $7.6 million at September 30, 2023 and $23.1 million at December 31, 2022. The decline in loans held-for-sale from the prior periods was driven by loan sales and amortization of the portfolio, as government guaranteed lending is no longer a growth vehicle.

Deposits totaled $2.90 billion as of December 31, 2023, a decrease of $137.4 million, or 4.5%, from September 30, 2023 and an increase of $331.0 million, or 12.9%, from December 31, 2022. NIB deposits totaled $1.20 billion as of December 31, 2023, an increase of $103.4 million, or 9.4%, and a decrease of $34.3 million, or 2.8%, from September 30, 2023 and December 31, 2022, respectively. The decrease in total deposits compared to September 30, 2023 primarily reflected a decline in CDs and brokered deposits. The increase in total deposits relative to December 31, 2022 reflected higher CDs and brokered deposits, partially offset by a decrease in NIB deposits driven by the highly-competitive deposit environment, higher interest rates and the utilization of off-balance sheet deposit networks to generate fee income, enhance capital efficiency and manage liquidity and concentration risk.

CAPITAL

The Community Bank Leverage Ratio was 10.5% as of December 31, 2023, compared to 10.4% as of September 30, 2023 and 9.8% as of December 31, 2022. MVB’s Tier 1 Risk-Based Capital Ratio was 14.4% as of December 31, 2023, compared to 14.0% as of September 30, 2023 and 12.4% as of December 31, 2022. The Bank’s Total Risk-Based Capital Ratio was 15.1% as of December 31, 2023, compared to 14.8% as of September 30, 2023 and 13.4% as of December 31, 2022.

The Company issued a quarterly cash dividend of $0.17 per share for the quarter ended December 31, 2023, consistent with the quarters ended September 30, 2023 and December 31, 2022.

ASSET QUALITY

Nonperforming loans totaled $8.3 million, or 0.4% of total loans, for the fourth quarter of 2023, as compared to $10.6 million, or 0.5% of total loans for the third quarter of 2023 and $11.2 million, or 0.5% of total loans for the fourth quarter of 2022. Criticized loans were $122.4 million, or 5.3% of total loans, as compared to $137.5 million, or 6.1% of total loans, for the third quarter of 2023 and $71.2 million, or 3.0% of total loans, for the fourth quarter of 2022.

Net charge-offs on an annualized basis were $0.5 million, or 0.1% of total loans, for the fourth quarter of 2023, compared to $5.9 million, or 1.0% of total loans, for the third quarter of 2023 and $5.4 million, or 0.9% of total loans for the fourth quarter of 2022.

The release of allowance for credit losses totaled $2.1 million for the quarter ended December 31, 2023, compared to a release of $0.2 million for the quarter ended September 30, 2023 and a provision of $2.7 million for the quarter ended December 31, 2022. The release of allowance for credit losses for the quarter ended December 31, 2023 was attributed to an improvement in asset quality and the reduction in criticized loans. The allowance for credit losses was 1.0% of total loans at December 31, 2023, as compared to 1.1% as of September 30, 2023 and 1.0% as of December 31, 2022.

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; 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

 

 

2023

 

2023

 

2022

 

2023

 

2022

 

 

Fourth Quarter

 

Third Quarter

 

Fourth Quarter

 

 

Interest income

 

$

49,699

 

 

$

48,325

 

 

$

40,702

 

$

189,818

 

 

$

125,957

Interest expense

 

 

18,592

 

 

 

18,460

 

 

 

7,253

 

 

66,535

 

 

 

14,154

Net interest income

 

 

31,107

 

 

 

29,865

 

 

 

33,449

 

 

123,283

 

 

 

111,803

Provision (release of allowance) for credit losses

 

 

(2,103

)

 

 

(159

)

 

 

2,694

 

 

(1,921

)

 

 

14,194

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

 

 

33,210

 

 

 

30,024

 

 

 

30,755

 

 

125,204

 

 

 

97,609

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

 

 

4,438

 

 

 

5,791

 

 

 

3,435

 

 

19,715

 

 

 

27,565

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

14,863

 

 

 

16,016

 

 

 

14,317

 

 

63,371

 

 

 

62,534

Other expense

 

 

13,438

 

 

 

14,709

 

 

 

12,424

 

 

54,254

 

 

 

47,612

Total noninterest expenses

 

 

28,301

 

 

 

30,725

 

 

 

26,741

 

 

117,625

 

 

 

110,146

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

9,347

 

 

 

5,090

 

 

 

7,449

 

 

27,294

 

 

 

15,028

Income taxes

 

 

1,431

 

 

 

1,218

 

 

 

1,731

 

 

5,070

 

 

 

3,294

Net income from continuing operations before noncontrolling interest

 

 

7,916

 

 

 

3,872

 

 

 

5,718

 

 

22,224

 

 

 

11,734

Income from discontinued operations before income taxes

 

 

 

 

 

 

 

 

888

 

 

11,831

 

 

 

3,487

Income taxes - discontinued operations

 

 

 

 

 

 

 

 

236

 

 

3,049

 

 

 

834

Net income from discontinued operations

 

 

 

 

 

 

 

 

652

 

 

8,782

 

 

 

2,653

Net (income) loss attributable to noncontrolling interest

 

 

(5

)

 

 

(5

)

 

 

139

 

 

226

 

 

 

660

Net income available to common shareholders

 

$

7,911

 

 

$

3,867

 

 

$

6,509

 

$

31,232

 

 

$

15,047

 

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations - basic

 

$

0.62

 

 

$

0.30

 

 

$

0.47

 

$

1.77

 

 

$

1.01

Earnings per share from discontinued operations - basic

 

$

 

 

$

 

 

$

0.05

 

$

0.69

 

 

$

0.22

Earnings per share - basic

 

$

0.62

 

 

$

0.30

 

 

$

0.52

 

$

2.46

 

 

$

1.23

Earnings per share from continuing operations - diluted

 

$

0.61

 

 

$

0.29

 

 

$

0.45

 

$

1.72

 

 

$

0.96

Earnings per share from discontinued operations - diluted

 

$

 

 

$

 

 

$

0.05

 

$

0.68

 

 

$

0.21

Earnings per share - diluted

 

$

0.61

 

 

$

0.29

 

 

$

0.50

 

$

2.40

 

 

$

1.17

 
 
 
 

Noninterest Income

(Unaudited) (Dollars in thousands) 

 

 

 

Quarterly

 

Year-to-Date

 

 

2023

 

2023

 

2022

 

2023

 

2022

 

 

Fourth Quarter

 

Third Quarter

 

Fourth Quarter

 

 

Card acquiring income

 

$

1,348

 

 

$

845

 

 

$

497

 

 

$

3,603

 

 

$

2,790

 

Service charges on deposits

 

 

174

 

 

 

490

 

 

 

684

 

 

 

2,850

 

 

 

3,418

 

Interchange income

 

 

2,289

 

 

 

1,517

 

 

 

497

 

 

 

7,323

 

 

 

5,440

 

Total payment card and service charge income

 

 

3,811

 

 

 

2,852

 

 

 

1,678

 

 

 

13,776

 

 

 

11,648

 

 

 

 

 

 

 

 

 

 

 

 

Equity method investments loss

 

 

(2,429

)

 

 

(750

)

 

 

(1,379

)

 

 

(2,499

)

 

 

(713

)

Compliance and consulting income

 

 

986

 

 

 

1,314

 

 

 

1,217

 

 

 

4,312

 

 

 

4,598

 

Gain (loss) on sale of loans

 

 

271

 

 

 

330

 

 

 

(2,131

)

 

 

(744

)

 

 

1,655

 

Investment portfolio gains (losses)

 

 

75

 

 

 

244

 

 

 

(1,397

)

 

 

(1,659

)

 

 

925

 

Loss on acquisition and divestiture activity

 

 

 

 

 

 

 

 

 

 

 

(986

)

 

 

 

Other noninterest income

 

 

1,724

 

 

 

1,801

 

 

 

5,447

 

 

 

7,515

 

 

 

9,452

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

 

$

4,438

 

 

$

5,791

 

 

$

3,435

 

 

$

19,715

 

 

$

27,565

 

 
 
 
 

Condensed Consolidated Balance Sheets

(Unaudited) (Dollars in thousands) 

 

 

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

Cash and cash equivalents

 

$

398,229

 

 

$

587,100

 

 

$

40,280

 

Securities available-for-sale, at fair value

 

 

345,275

 

 

 

311,537

 

 

 

379,814

 

Equity securities

 

 

41,086

 

 

 

40,835

 

 

 

38,744

 

Loans held-for-sale

 

 

629

 

 

 

7,603

 

 

 

23,126

 

Loans receivable

 

 

2,317,594

 

 

 

2,270,433

 

 

 

2,372,645

 

Less: Allowance for credit losses

 

 

(22,124

)

 

 

(24,276

)

 

 

(23,837

)

Loans receivable, net

 

 

2,295,470

 

 

 

2,246,157

 

 

 

2,348,808

 

Premises and equipment, net

 

 

20,928

 

 

 

21,468

 

 

 

23,630

 

Assets from discontinued operations

 

 

 

 

 

 

 

 

4,315

 

Goodwill

 

 

2,838

 

 

 

2,838

 

 

 

2,838

 

Other assets

 

 

209,427

 

 

 

220,045

 

 

 

207,295

 

Total assets

 

$

3,313,882

 

 

$

3,437,583

 

 

$

3,068,850

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

1,197,272

 

 

$

1,093,903

 

 

$

1,231,544

 

Interest-bearing deposits

 

 

1,704,204

 

 

 

1,944,986

 

 

 

1,338,938

 

FHLB and other borrowings

 

 

 

 

 

 

 

 

102,333

 

Senior term loan

 

 

6,786

 

 

 

8,473

 

 

 

9,765

 

Subordinated debt

 

 

73,540

 

 

 

73,478

 

 

 

73,286

 

Liabilities from discontinued operations

 

 

 

 

 

 

 

 

5,444

 

Other liabilities

 

 

42,738

 

 

 

45,374

 

 

 

46,149

 

Stockholders' equity

 

 

289,342

 

 

 

271,369

 

 

 

261,391

 

Total liabilities and stockholders' equity

 

$

3,313,882

 

 

$

3,437,583

 

 

$

3,068,850

 

 
 
 
 

Reportable Segments

(Unaudited) 

 

Twelve Months Ended December 31, 2023

 

CoRe Banking

 

Mortgage

Banking

 

Financial

Holding

Company

 

Other

 

Intercompany

Eliminations

 

Consolidated

(Dollars in thousands)

 

 

 

 

 

 

Interest income

 

$

189,498

 

 

$

416

 

 

$

41

 

 

$

 

 

$

(137

)

 

$

189,818

 

Interest expense

 

 

62,507

 

 

 

 

 

 

3,985

 

 

 

180

 

 

 

(137

)

 

 

66,535

 

Net interest income (expense)

 

 

126,991

 

 

 

416

 

 

 

(3,944

)

 

 

(180

)

 

 

 

 

 

123,283

 

Release of allowance for credit losses

 

 

(1,921

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,921

)

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

 

 

128,912

 

 

 

416

 

 

 

(3,944

)

 

 

(180

)

 

 

 

 

 

125,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

17,286

 

 

 

(2,486

)

 

 

10,453

 

 

 

9,138

 

 

 

(14,676

)

 

 

19,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

37,265

 

 

 

7

 

 

 

17,041

 

 

 

9,058

 

 

 

 

 

 

63,371

 

Other expense

 

 

53,221

 

 

 

65

 

 

 

8,233

 

 

 

7,411

 

 

 

(14,676

)

 

 

54,254

 

Total noninterest expenses

 

 

90,486

 

 

 

72

 

 

 

25,274

 

 

 

16,469

 

 

 

(14,676

)

 

 

117,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

55,712

 

 

 

(2,142

)

 

 

(18,765

)

 

 

(7,511

)

 

 

 

 

 

27,294

 

Income taxes

 

 

12,342

 

 

 

(557

)

 

 

(4,923

)

 

 

(1,792

)

 

 

 

 

 

5,070

 

Net income (loss) from continuing operations

 

 

43,370

 

 

 

(1,585

)

 

 

(13,842

)

 

 

(5,719

)

 

 

 

 

 

22,224

 

Income from discontinued operations before income taxes

 

 

 

 

 

 

 

 

 

 

 

11,831

 

 

 

 

 

 

11,831

 

Income tax expense - discontinued operations

 

 

 

 

 

 

 

 

 

 

 

3,049

 

 

 

 

 

 

3,049

 

Net income from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

8,782

 

 

 

 

 

 

8,782

 

Net income (loss)

 

 

43,370

 

 

 

(1,585

)

 

 

(13,842

)

 

 

3,063

 

 

 

 

 

 

31,006

 

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

226

 

 

 

 

 

 

226

 

Net income (loss) available to common shareholders

 

$

43,370

 

 

$

(1,585

)

 

$

(13,842

)

 

$

3,289

 

 

$

 

 

$

31,232

 

 
 

Twelve Months Ended December 31, 2022

 

CoRe Banking

 

Mortgage

Banking

 

Financial

Holding

Company

 

Other

 

Intercompany

Eliminations

 

Consolidated

(Dollars in thousands)

 

 

 

 

 

 

Interest income

 

$

125,426

 

$

429

 

$

146

 

 

$

 

 

$

(44

)

 

$

125,957

Interest expense

 

 

10,920

 

 

 

 

3,234

 

 

 

44

 

 

 

(44

)

 

 

14,154

Net interest income (expense)

 

 

114,506

 

 

429

 

 

(3,088

)

 

 

(44

)

 

 

 

 

 

111,803

Provision for credit losses

 

 

14,194

 

 

 

 

 

 

 

 

 

 

 

 

 

14,194

Net interest income (expense) after provision for credit losses

 

 

100,312

 

 

429

 

 

(3,088

)

 

 

(44

)

 

 

 

 

 

97,609

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

22,673

 

 

37

 

 

10,576

 

 

 

6,120

 

 

 

(11,841

)

 

 

27,565

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

36,960

 

 

8

 

 

16,582

 

 

 

8,984

 

 

 

 

 

 

62,534

Other expenses

 

 

44,873

 

 

142

 

 

8,049

 

 

 

6,389

 

 

 

(11,841

)

 

 

47,612

Total noninterest expenses

 

 

81,833

 

 

150

 

 

24,631

 

 

 

15,373

 

 

 

(11,841

)

 

 

110,146

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

41,152

 

 

316

 

 

(17,143

)

 

 

(9,297

)

 

 

 

 

 

15,028

Income taxes

 

 

8,882

 

 

77

 

 

(3,472

)

 

 

(2,193

)

 

 

 

 

 

3,294

Net income (loss) from continuing operations

 

 

32,270

 

 

239

 

 

(13,671

)

 

 

(7,104

)

 

 

 

 

 

11,734

Income from discontinued operations before income taxes

 

 

 

 

 

 

 

 

 

3,487

 

 

 

 

 

 

3,487

Income tax expense - discontinued operations

 

 

 

 

 

 

 

 

 

834

 

 

 

 

 

 

834

Net income from discontinued operations

 

 

 

 

 

 

 

 

 

2,653

 

 

 

 

 

 

2,653

Net income (loss)

 

 

32,270

 

 

239

 

 

(13,671

)

 

 

(4,451

)

 

 

 

 

 

14,387

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

660

 

 

 

 

 

 

660

Net income (loss) available to common shareholders

 

$

32,270

 

$

239

 

$

(13,671

)

 

$

(3,791

)

 

$

 

 

$

15,047

 
 
 
 

Average Balances and Interest Rates

(Unaudited) (Dollars in thousands) 

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

 

 

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

 

$

442,521

 

 

$

5,944

 

 

5.33

%

 

$

483,158

 

 

$

6,404

 

 

5.26

%

 

$

113,500

 

 

$

982

 

 

3.43

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

222,303

 

 

 

1,444

 

 

2.58

 

 

 

206,340

 

 

 

1,056

 

 

2.03

 

 

 

233,839

 

 

 

1,114

 

 

1.89

 

Tax-exempt1

 

 

98,464

 

 

 

876

 

 

3.53

 

 

 

107,490

 

 

 

1,016

 

 

3.75

 

 

 

136,313

 

 

 

1,343

 

 

3.91

 

Loans and loans held-for-sale:2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial3

 

 

1,635,510

 

 

 

33,665

 

 

8.17

 

 

 

1,593,875

 

 

 

31,348

 

 

7.80

 

 

 

1,667,981

 

 

 

27,947

 

 

6.65

 

Tax-exempt1

 

 

3,492

 

 

 

38

 

 

4.32

 

 

 

3,678

 

 

 

40

 

 

4.31

 

 

 

4,161

 

 

 

47

 

 

4.48

 

Real estate

 

 

576,580

 

 

 

6,421

 

 

4.42

 

 

 

573,579

 

 

 

6,351

 

 

4.39

 

 

 

631,450

 

 

 

6,000

 

 

3.77

 

Consumer

 

 

76,088

 

 

 

1,503

 

 

7.84

 

 

 

95,032

 

 

 

2,331

 

 

9.73

 

 

 

139,705

 

 

 

3,563

 

 

10.12

 

Total loans

 

 

2,291,670

 

 

 

41,627

 

 

7.21

 

 

 

2,266,164

 

 

 

40,070

 

 

7.02

 

 

 

2,443,297

 

 

 

37,557

 

 

6.10

 

Total earning assets

 

 

3,054,958

 

 

 

49,891

 

 

6.48

 

 

 

3,063,152

 

 

 

48,546

 

 

6.29

 

 

 

2,926,949

 

 

 

40,996

 

 

5.56

 

Less: Allowance for credit losses

 

 

(24,079

)

 

 

 

 

 

 

(29,693

)

 

 

 

 

 

 

(27,530

)

 

 

 

 

Cash and due from banks

 

 

5,771

 

 

 

 

 

 

 

6,686

 

 

 

 

 

 

 

5,643

 

 

 

 

 

Other assets

 

 

292,574

 

 

 

 

 

 

 

281,504

 

 

 

 

 

 

 

266,292

 

 

 

 

 

Total assets

 

$

3,329,224

 

 

 

 

 

 

$

3,321,649

 

 

 

 

 

 

$

3,171,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

637,144

 

 

$

5,386

 

 

3.35

%

 

$

674,745

 

 

$

4,970

 

 

2.92

%

 

$

791,227

 

 

$

2,880

 

 

1.44

%

Money market checking

 

 

650,925

 

 

 

3,691

 

 

2.25

 

 

 

537,592

 

 

 

3,294

 

 

2.43

 

 

 

219,334

 

 

 

643

 

 

1.16

 

Savings

 

 

70,146

 

 

 

442

 

 

2.50

 

 

 

72,206

 

 

 

438

 

 

2.41

 

 

 

77,416

 

 

 

263

 

 

1.35

 

IRAs

 

 

7,296

 

 

 

66

 

 

3.59

 

 

 

6,788

 

 

 

56

 

 

3.27

 

 

 

6,053

 

 

 

20

 

 

1.31

 

CDs

 

 

590,517

 

 

 

8,014

 

 

5.38

 

 

 

664,281

 

 

 

8,702

 

 

5.20

 

 

 

314,723

 

 

 

2,380

 

 

3.00

 

Repurchase agreements and federal funds sold

 

 

4,736

 

 

 

 

 

 

 

 

4,911

 

 

 

 

 

 

 

 

9,958

 

 

 

1

 

 

0.04

 

FHLB and other borrowings

 

 

11

 

 

 

 

 

 

 

 

278

 

 

 

 

 

 

 

 

11,128

 

 

 

115

 

 

4.10

 

Senior term loan

 

 

8,183

 

 

 

183

 

 

8.87

 

 

 

8,751

 

 

 

191

 

 

8.66

 

 

 

9,235

 

 

 

163

 

 

7.00

 

Subordinated debt

 

 

73,510

 

 

 

810

 

 

4.37

 

 

 

73,446

 

 

 

809

 

 

4.37

 

 

 

73,254

 

 

 

787

 

 

4.26

 

Total interest-bearing liabilities

 

 

2,042,468

 

 

 

18,592

 

 

3.61

 

 

 

2,042,998

 

 

 

18,460

 

 

3.58

 

 

 

1,512,328

 

 

 

7,252

 

 

1.90

 

Noninterest-bearing demand deposits

 

 

975,122

 

 

 

 

 

 

 

975,164

 

 

 

 

 

 

 

1,377,880

 

 

 

 

 

Other liabilities

 

 

39,410

 

 

 

 

 

 

 

38,021

 

 

 

 

 

 

 

40,264

 

 

 

 

 

Total liabilities

 

 

3,057,000

 

 

 

 

 

 

 

3,056,183

 

 

 

 

 

 

 

2,930,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

13,588

 

 

 

 

 

 

 

13,570

 

 

 

 

 

 

 

13,452

 

 

 

 

 

Paid-in capital

 

 

160,106

 

 

 

 

 

 

 

159,050

 

 

 

 

 

 

 

156,111

 

 

 

 

 

Treasury stock

 

 

(16,741

)

 

 

 

 

 

 

(16,741

)

 

 

 

 

 

 

(16,741

)

 

 

 

 

Retained earnings

 

 

156,004

 

 

 

 

 

 

 

146,504

 

 

 

 

 

 

 

129,454

 

 

 

 

 

Accumulated other comprehensive loss

 

 

(40,688

)

 

 

 

 

 

 

(36,865

)

 

 

 

 

 

 

(41,793

)

 

 

 

 

Total stockholders’ equity attributable to parent

 

 

272,269

 

 

 

 

 

 

 

265,518

 

 

 

 

 

 

 

240,483

 

 

 

 

 

Noncontrolling interest

 

 

(45

)

 

 

 

 

 

 

(52

)

 

 

 

 

 

 

399

 

 

 

 

 

Total stockholders’ equity

 

 

272,224

 

 

 

 

 

 

 

265,466

 

 

 

 

 

 

 

240,882

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

3,329,224

 

 

 

 

 

 

$

3,321,649

 

 

 

 

 

 

$

3,171,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread (tax-equivalent)

 

 

 

 

 

2.87

%

 

 

 

 

 

2.71

%

 

 

 

 

 

3.66

%

Net interest income and margin (tax-equivalent)1

 

$

31,299

 

 

4.06

%

 

 

 

$

30,086

 

 

3.90

%

 

 

 

$

33,744

 

 

4.57

%

Less: Tax-equivalent adjustments

 

 

 

$

(193

)

 

 

 

 

 

$

(221

)

 

 

 

 

 

$

(295

)

 

 

Net interest spread

 

 

 

 

 

2.84

%

 

 

 

 

 

2.68

%

 

 

 

 

 

3.62

%

Net interest income and margin

 

 

 

$

31,107

 

 

4.04

%

 

 

 

$

29,865

 

 

3.87

%

 

 

 

$

33,449

 

 

4.53

%

 

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 16. 

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

3 MVB Bank’s PPP loans totaling $2.7 million, $3.0 million and $13.6 million are included in this amount for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022, respectively. 

 
 
 
 

 

 

Twelve Months Ended

 

Twelve Months Ended

 

 

December 31, 2023

 

December 31, 2022

 

 

Average

Balance

 

Interest

Income/

Expense

 

Yield/

Cost

 

Average

Balance

 

Interest

Income/

Expense

 

Yield/

Cost

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing balances with banks

 

$

414,466

 

 

$

21,043

 

 

5.08

%

 

$

232,935

 

 

$

1,613

 

 

0.69

%

CDs with banks

 

 

 

 

 

 

 

 

 

 

1,033

 

 

 

24

 

 

2.32

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

221,395

 

 

 

5,576

 

 

2.52

 

 

 

236,344

 

 

 

3,496

 

 

1.48

 

Tax-exempt1

 

 

116,680

 

 

 

4,347

 

 

3.73

 

 

 

139,353

 

 

 

5,166

 

 

3.71

 

Loans and loans held-for-sale:2

 

 

 

 

 

 

 

 

 

 

 

 

Commercial3

 

 

1,621,299

 

 

 

124,078

 

 

7.65

 

 

 

1,594,069

 

 

 

87,845

 

 

5.51

 

Tax-exempt1

 

 

3,732

 

 

 

163

 

 

4.37

 

 

 

4,661

 

 

 

203

 

 

4.36

 

Real estate

 

 

591,157

 

 

 

24,764

 

 

4.19

 

 

 

487,044

 

 

 

15,721

 

 

3.23

 

Consumer

 

 

108,988

 

 

 

10,793

 

 

9.90

 

 

 

103,345

 

 

 

13,017

 

 

12.60

 

Total loans

 

 

2,325,176

 

 

 

159,798

 

 

6.87

 

 

 

2,189,119

 

 

 

116,786

 

 

5.33

 

Total earning assets

 

 

3,077,717

 

 

 

190,764

 

 

6.20

 

 

 

2,798,784

 

 

 

127,085

 

 

4.54

 

Less: Allowance for loan losses

 

 

(29,746

)

 

 

 

 

 

 

(22,248

)

 

 

 

 

Cash and due from banks

 

 

6,659

 

 

 

 

 

 

 

5,670

 

 

 

 

 

Other assets

 

 

302,036

 

 

 

 

 

 

 

244,861

 

 

 

 

 

Total assets

 

$

3,356,666

 

 

 

 

 

 

$

3,027,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

697,266

 

 

$

19,851

 

 

2.85

%

 

$

707,282

 

 

$

4,724

 

 

0.67

%

Money market checking

 

 

504,730

 

 

 

10,352

 

 

2.05

 

 

 

330,208

 

 

 

1,449

 

 

0.44

 

Savings

 

 

76,908

 

 

 

1,871

 

 

2.43

 

 

 

56,697

 

 

 

418

 

 

0.74

 

IRAs

 

 

6,662

 

 

 

194

 

 

2.91

 

 

 

6,216

 

 

 

71

 

 

1.14

 

CDs

 

 

576,726

 

 

 

29,392

 

 

5.10

 

 

 

170,648

 

 

 

3,814

 

 

2.24

 

Repurchase agreements and federal funds sold

 

 

5,662

 

 

 

1

 

 

0.02

 

 

 

10,987

 

 

 

6

 

 

0.05

 

FHLB and other borrowings

 

 

17,542

 

 

 

890

 

 

5.07

 

 

 

15,494

 

 

 

437

 

 

2.82

 

Senior term loan

 

 

9,007

 

 

 

766

 

 

8.50

 

 

 

2,328

 

 

 

163

 

 

7.00

 

Subordinated debt

 

 

73,415

 

 

 

3,219

 

 

4.38

 

 

 

73,159

 

 

 

3,072

 

 

4.20

 

Total interest-bearing liabilities

 

 

1,967,918

 

 

 

66,536

 

 

3.38

 

 

 

1,373,019

 

 

 

14,154

 

 

1.03

 

Noninterest-bearing demand deposits

 

 

1,074,292

 

 

 

 

 

 

 

1,357,426

 

 

 

 

 

Other liabilities

 

 

40,435

 

 

 

 

 

 

 

41,098

 

 

 

 

 

Total liabilities

 

 

3,082,645

 

 

 

 

 

 

 

2,771,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

13,541

 

 

 

 

 

 

 

13,320

 

 

 

 

 

Paid-in capital

 

 

159,523

 

 

 

 

 

 

 

147,728

 

 

 

 

 

Treasury stock

 

 

(16,741

)

 

 

 

 

 

 

(16,741

)

 

 

 

 

Retained earnings

 

 

154,041

 

 

 

 

 

 

 

137,498

 

 

 

 

 

Accumulated other comprehensive loss

 

 

(36,419

)

 

 

 

 

 

 

(26,918

)

 

 

 

 

Total stockholders’ equity attributable to parent

 

 

273,945

 

 

 

 

 

 

 

254,887

 

 

 

 

 

Noncontrolling interest

 

 

76

 

 

 

 

 

 

 

637

 

 

 

 

 

Total stockholders’ equity

 

 

274,021

 

 

 

 

 

 

 

255,524

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

3,356,666

 

 

 

 

 

 

$

3,027,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread (tax-equivalent)

 

 

 

 

 

2.82

%

 

 

 

 

 

3.51

%

Net interest income and margin (tax-equivalent)1

 

$

124,228

 

 

4.04

%

 

 

 

$

112,931

 

 

4.04

%

Less: Tax-equivalent adjustments

 

 

 

$

(946

)

 

 

 

 

 

$

(1,128

)

 

 

Net interest spread

 

 

 

 

 

2.79

%

 

 

 

 

 

3.47

%

Net interest income and margin

 

 

 

$

123,283

 

 

4.01

%

 

 

 

$

111,803

 

 

3.99

%

 

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 16. 

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

3 MVB Bank’s PPP loans totaling $2.7 million and $13.6 million are included in this amount for the years ended December 31, 2023 and December 31, 2022, respectively. 

 
 
 
 

Selected Financial Data

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

 

 

 

Quarterly

 

Year-to-Date

 

 

2023

 

2023

 

2022

 

2023

 

2022

 

 

Fourth Quarter

 

Third Quarter

 

Fourth Quarter

 

 

Earnings and Per Share Data:

 

 

 

 

 

 

 

 

 

 

Net income

 

$

7,911

 

 

$

3,867

 

 

$

6,509

 

 

 

31,232

 

 

 

15,047

 

Earnings per share from continuing operations - basic

 

$

0.62

 

 

$

0.30

 

 

$

0.47

 

 

$

1.77

 

 

$

1.01

 

Earnings per share from discontinued operations - basic

 

$

 

 

$

 

 

$

0.05

 

 

$

0.69

 

 

$

0.22

 

Earnings per share - basic

 

$

0.62

 

 

$

0.30

 

 

$

0.52

 

 

$

2.46

 

 

$

1.23

 

Earnings per share from continuing operations - diluted

 

$

0.61

 

 

$

0.29

 

 

$

0.45

 

 

$

1.72

 

 

$

0.96

 

Earnings per share from discontinued operations - diluted

 

$

 

 

$

 

 

$

0.05

 

 

$

0.68

 

 

$

0.21

 

Earnings per share - diluted

 

$

0.61

 

 

$

0.29

 

 

$

0.50

 

 

$

2.40

 

 

$

1.17

 

Cash dividends paid per common share

 

$

0.17

 

 

$

0.17

 

 

$

0.17

 

 

$

0.68

 

 

$

0.68

 

Book value per common share

 

$

22.68

 

 

$

21.33

 

 

$

20.69

 

 

$

22.68

 

 

$

20.69

 

Tangible book value per common share 1

 

$

22.43

 

 

$

21.08

 

 

$

20.25

 

 

$

22.43

 

 

$

20.25

 

Weighted-average shares outstanding - basic

 

 

12,740,193

 

 

 

12,722,010

 

 

 

12,604,193

 

 

 

12,694,206

 

 

 

12,279,462

 

Weighted-average shares outstanding - diluted

 

 

13,024,562

 

 

 

13,116,629

 

 

 

13,012,460

 

 

 

12,997,332

 

 

 

12,870,734

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

Return on average assets 2

 

 

1.0

%

 

 

0.5

%

 

 

0.8

%

 

 

0.9

%

 

 

0.5

%

Return on average equity 2

 

 

11.6

%

 

 

5.8

%

 

 

10.8

%

 

 

11.4

%

 

 

5.9

%

Net interest margin 3 4

 

 

4.06

%

 

 

3.90

%

 

 

4.57

%

 

 

4.04

%

 

 

4.04

%

Efficiency ratio 5 10

 

 

79.6

%

 

 

86.2

%

 

 

72.3

%

 

 

82.3

%

 

 

78.2

%

Overhead ratio 2 6

 

 

3.4

%

 

 

3.7

%

 

 

3.6

%

 

 

3.5

%

 

 

3.9

%

Equity to assets

 

 

8.7

%

 

 

7.9

%

 

 

8.5

%

 

 

8.7

%

 

 

8.5

%

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data and Ratios:

 

 

 

 

 

 

 

 

 

 

Charge-offs

 

$

1,868

 

 

$

8,064

 

 

$

7,878

 

 

$

18,479

 

 

$

15,183

 

Recoveries

 

$

1,343

 

 

$

2,205

 

 

$

2,507

 

 

$

9,185

 

 

$

6,560

 

Net loan charge-offs to total loans 2 7

 

 

0.1

%

 

 

1.0

%

 

 

0.9

%

 

 

0.4

%

 

 

0.4

%

Allowance for credit losses

 

$

22,124

 

 

$

24,276

 

 

$

23,837

 

 

$

22,124

 

 

$

23,837

 

Allowance for credit losses to total loans 8

 

 

0.95

%

 

 

1.07

%

 

 

1.00

%

 

 

0.95

%

 

 

1.00

%

Nonperforming loans

 

$

8,267

 

 

$

10,593

 

 

$

11,165

 

 

$

8,267

 

 

$

11,165

 

Nonperforming loans to total loans

 

 

0.4

%

 

 

0.5

%

 

 

0.5

%

 

 

0.4

%

 

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

Mortgage Company Equity Method Investees Production Data9:

 

 

 

 

 

 

 

 

 

 

Mortgage pipeline

 

$

706,873

 

 

$

643,578

 

 

$

678,345

 

 

$

706,873

 

 

$

678,345

 

Loans originated

 

$

1,020,128

 

 

$

1,131,963

 

 

$

407,070

 

 

$

4,319,382

 

 

$

3,120,577

 

Loans closed

 

$

724,453

 

 

$

786,885

 

 

$

388,417

 

 

$

3,007,221

 

 

$

2,628,149

 

Loans sold

 

$

639,788

 

 

$

605,296

 

 

$

326,003

 

 

$

2,466,807

 

 

$

2,325,709

 

 

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 16. 

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 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 and Warp Speed Holdings LLC, entities in which MVB has an ownership interest that are accounted for as equity method investments. 

10 Includes net income from discontinued operations. 

 
 
 
 

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,

2023

 

September 30,

2023

 

December 31,

2022

 

December 31,

2023

 

December 31,

2022

Net interest margin - U.S. GAAP basis

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

31,107

 

 

$

29,865

 

 

$

33,449

 

 

$

123,283

 

 

$

111,803

 

Average interest-earning assets

 

 

3,054,958

 

 

 

3,063,152

 

 

 

2,926,949

 

 

 

3,077,717

 

 

 

2,798,784

 

Net interest margin

 

 

4.04

%

 

 

3.87

%

 

 

4.53

%

 

 

4.01

%

 

 

3.99

%

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

31,107

 

 

$

29,865

 

 

$

33,449

 

 

$

123,283

 

 

$

111,803

 

Impact of fully tax-equivalent adjustment

 

 

193

 

 

 

221

 

 

 

295

 

 

 

946

 

 

 

1,128

 

Net interest income on a fully tax-equivalent basis

 

 

31,299

 

 

 

30,086

 

 

 

33,744

 

 

 

124,228

 

 

 

112,931

 

Average interest-earning assets

 

 

3,054,958

 

 

 

3,063,152

 

 

 

2,926,949

 

 

 

3,077,717

 

 

 

2,798,784

 

Net interest margin on a fully tax-equivalent basis

 

 

4.06

%

 

 

3.90

%

 

 

4.57

%

 

 

4.04

%

 

 

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, 2023

 

September 30, 2023

 

December 31, 2022

Tangible Book Value per Common Share

 

 

 

 

 

 

Goodwill

 

$

2,838

 

 

$

2,838

 

 

$

3,988

 

Intangibles

 

 

352

 

 

 

375

 

 

 

1,631

 

Total intangibles

 

$

3,190

 

 

$

3,213

 

 

$

5,619

 

 

 

 

 

 

 

 

Total equity attributable to parent

 

$

289,384

 

 

$

271,416

 

 

$

261,084

 

Less: Total intangibles

 

 

(3,190

)

 

 

(3,213

)

 

 

(5,619

)

Tangible common equity

 

$

286,194

 

 

$

268,203

 

 

$

255,465

 

 

 

 

 

 

 

 

Tangible common equity

 

$

286,194

 

 

$

268,203

 

 

$

255,465

 

Common shares outstanding (000s)

 

 

12,758

 

 

 

12,726

 

 

 

12,618

 

Tangible book value per common share

 

$

22.43

 

 

$

21.08

 

 

$

20.25

 

 

 

 

 

 

 

 

Tangible Common Equity Ratio

 

 

 

 

 

 

Total assets

 

$

3,313,882

 

 

$

3,437,583

 

 

$

3,068,850

 

Less: Total intangibles

 

 

(3,190

)

 

 

(3,213

)

 

 

(5,619

)

Tangible assets

 

$

3,310,692

 

 

$

3,434,370

 

 

$

3,063,231

 

 

 

 

 

 

 

 

Tangible assets

 

$

3,310,692

 

 

$

3,434,370

 

 

$

3,063,231

 

Tangible common equity

 

$

286,194

 

 

$

268,203

 

 

$

255,465

 

Tangible common equity ratio

 

 

8.6

%

 

 

7.8

%

 

 

8.3

%

 
 

 

Contacts

Questions or comments concerning this earnings release should be directed to:

MVB Financial Corp.

Donald T. Robinson, President and Chief Financial Officer

(304) 598-3500

drobinson@mvbbanking.com

Amy Baker, VP, Corporate Communications and Marketing

(844) 682-2265

abaker@mvbbanking.com

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