MVB Bank's First Quarter Earnings Jump 38 Percent
By Connect-Bridgeport Staff on May 16, 2013
MVB Financial Corp., (OTC Markets Group OTCQB:MVBF), and its subsidiary bank, MVB Bank, Inc., (collectively MVB), today announced quarterly results for the period ending March 31, 2013. First quarter 2013 net income of $1.2 million increased by 38% compared to the first quarter of 2012. Results for the first quarter 2013 include the addition of Potomac Mortgage Group, Inc. (PMG) for its first full quarter as a part of MVB.
MVB has a branch office on Johnson Avenue in Bridgeport.
MVB’s net interest income was $3.5 million for the first quarter of 2013, an increase of $375,000 or 9% from the same time period in 2012. This gain was driven mainly by the continued growth in loan volume, with 14% loan growth and a sustained demand for refinancing motivated by historic low mortgage rates.
Interest expense of $1.2 million in the first quarter of 2013 was comparable to the first quarter of 2012. Total interest income in the first quarter 2013 was $5.7 million, an increase of $335,000 or 6% compared to the first quarter of 2012, a gain also due to continued growth in loan volume. Expenses nearly tripled in the quarter, largely resulting from funding and implementation of organic growth initiatives as well as costs related to the acquisition of PMG.
“The opening quarter of 2013 is evidence of our progress and growth – from new loans to increased deposits to a significant jump in net income,” said Larry F. Mazza, CEO of MVB Financial Corp. “Our strategy is demonstrating success across all areas of the bank and in newnon-interest income areas. We opened a new branch in the Morgantown market during the first quarter. In addition, we derived the first full quarter of accretive earnings from PMG, including expansion opportunities in northern Virginia and referrals of new clients to MVB for mortgages, and other products and services. This is a very dynamic time in the banking business and at MVB. We are continuing to execute and deliver on our ‘growth with quality’ strategy.”
Operating Performance Paced by Growth Initiatives and Sustained, Quality Lending MVB’s high quality loan portfolio continued to drive asset growth in in the first quarter of 2013 with a 14% increase, or $56.2 million addition in both commercial and mortgage lending compared to the same period in 2012.
Total assets increased by $184.4 million, or 32.2%, this quarter compared to the first quarter a year ago, primarily based on the PMG acquisition. MVB’s nonperforming loan ratio continues to be among the lowest in the country compared to its peers. MVB Bank is consistently recognized as a ‘5-Star Superior Bank’ and among the financially strongest banks in the nation designated by Bauer Financial, the nation’s leading bank rating and research firm. The economy of West Virginia and Virginia, where MVB operates, is expected to experience continued growth amid a slightly improving national economic outlook.
