MVB Financial Corp. Announces First Quarter 2024 Results
First Quarter 2024 Highlights As Compared to Fourth Quarter 2023
Total revenue increased 6.8%, or
Fintech fee income grew 26.3%, or
Noninterest bearing deposits increased 16.2%, or
Nonperforming loans declined 8.7%; Measures of asset quality and capital strength were stable.
Book value per share and tangible book value per share, a non-GAAP financial measure,
each increased by 0.2% to
From
“Turbulence in financial markets and the banking sector persisted during the first quarter of 2024. Amidst these volatile market conditions, MVB made progress on several key initiatives. Most notably, we further solidified foundational measures of safety and soundness. Our balance sheet liquidity position and the quality of our funding mix improved, asset quality indicators were stable, commercial real estate concentrations remained well within regulatory guidelines and measures of capital strength were maintained. We also remained proactive in investing at a higher-than-normal pace to contend with changing regulatory requirements following the industry events of early 2023. These higher costs, alongside other cyclical and seasonal challenges, weighed on our earnings for the first quarter.
“At the same time, initiatives to drive revenue growth are bearing fruit. Banking-as-a-service fee income increased from the prior quarter and the year-ago period, benefiting from seasonal considerations, notably the influence of tax season, and growth in the underlying business. Through these challenging times for the banking sector, I’m pleased and encouraged by the adaptability of the MVB Team and the resilience of our business model.”
FIRST QUARTER 2024 HIGHLIGHTS
-
Strong core deposit growth.
-
Total deposits increased 8.4%, or
$243.9 million , to$3.15 billion , compared to the prior quarter-end, primarily reflecting strong growth in noninterest bearing (“NIB”) deposits. Growth also reflected strength in Banking-as-a-Service (“BaaS”) deposits and increased balances due to seasonal tax volume and deposits tied to payment relationships. -
Total off-balance sheet deposits increased to
$1.53 billion as compared to$1.09 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. -
NIB deposits increased 16.2%, or
$193.8 million , and 22.6%, or$256.8 million , to$1.39 billion , as compared to the prior quarter-end and the year-ago period, respectively. NIB deposit growth relative to the prior quarter primarily reflected seasonal tax deposits and growth in customer business volume. NIB deposits represented 44.2% of total deposits, as compared to 41.3% of total deposits at the prior quarter-end, and 36.0% for the year-ago period. -
Certificate of deposit (“CD”) balances, which include brokered deposits, increased 18.7%, or
$109.5 million , to$696.3 million , from the prior quarter-end. -
The loan-to-deposit ratio was 72.1% as of
March 31, 2024 , compared to 79.9% as ofDecember 31, 2023 and 74.9% as ofMarch 31, 2023 . The decline in the loan-to-deposit ratio reflects the increase in deposits, primarily due to our BaaS business, combined with a decline in loan balances driven by market conditions.
-
Total deposits increased 8.4%, or
-
Fintech fee income growth drove quarter and year-over-year growth in noninterest income and total revenues.
- Payment card and service charge income, which includes BaaS fee income, increased by 26.3% and 33.3% as compared to the prior quarter and the year-ago period, respectively. Growth relative to the prior quarter primarily related to increased transactional volume due to seasonal tax deposits and expanded relationships with our Fintech partners. Growth relative to the prior year is primarily related to the increased transactional volume from seasonal tax deposits year over year.
-
Total noninterest income grew 76.5%, or
$3.4 million , relative to the prior quarter, to$7.8 million , primarily reflecting higher payment card and service charge income and a decline in the loss on equity method investments (mortgage banking). Relative to the prior year, total noninterest income grew 155.4%, or$4.8 million , reflecting higher payment card and service charge income and higher other operating income. -
Total revenues increased
$2.4 million , or 6.8%, and$2.2 million , or 6.1%, relative to the prior quarter and the year-ago period, respectively. Revenue growth relative to both prior periods reflected higher noninterest income partially offset by lower net interest income.
-
Net interest income declined on a slowdown in loan growth, net interest margin contraction and seasonal considerations.
-
Net interest income on a fully tax-equivalent basis, a non-GAAP financial measure, declined 3.1%, or
$1.0 million , to$30.3 million relative to the prior quarter, reflecting net interest margin contraction, partially offset by an increase in total average earning asset balances. - Net interest margin on a fully tax-equivalent basis, a non-GAAP financial measure, was 3.83%, down 23 basis points from the prior quarter, primarily reflecting higher interest rates on deposits and elevated deposit balances driven by seasonal considerations associated with a BaaS relationship, in addition to a decline in average loan balances due to market conditions.
- Total cost of funds was 2.52%, up eight basis points compared to the prior quarter, primarily reflecting an increase in balances due to seasonal tax deposits.
- Average earning asset balances increased 4.3% from the prior quarter, reflecting higher interest-bearing balances with banks and higher investment securities balances, partially offset by lower average loan balances. Average total loan balances declined 0.4% from the prior quarter, reflecting slower market demand and deliberate efforts to improve balance sheet liquidity.
-
Net interest income on a fully tax-equivalent basis, a non-GAAP financial measure, declined 3.1%, or
-
Measures of safety and soundness were generally stable.
- The Community Bank Leverage Ratio, Tier 1 Risk-Based Capital Ratio and MVB Bank’s Total Risk-Based Capital Ratio were 10.1%, 14.4%, and 15.2%, respectively, compared to 10.5%, 14.4%, and 15.1%, respectively, at the prior quarter end.
-
Tangible book value per share, a non-
U.S. GAAP measure discussed below, increased 0.2% to$22.48 , relative to the prior quarter-end, and increased 6.2% from the year-ago period. -
Nonperforming loans declined
$0.7 million , or 8.7%, to$7.5 million , or 0.3% of total loans, from$8.3 million , or 0.4% of total loans, at the prior quarter end. Criticized loans as a percentage of total loans were 5.8%, as compared to 5.3% at the prior quarter end. Net charge-offs were$1.3 million , or 0.2%, for the first quarter of 2024, compared to$0.5 million , or 0.1%, for the prior quarter. For the first quarter of 2024, net charge-offs included$0.6 million related to a SBA loan secured by business assets,$0.5 million related to the subprime consumer automotive segment and$0.4 million related to a commercial client in the energy industry. -
The provision for credit losses totaled
$2.0 million , compared to a release of allowance of$2.1 million for the prior quarter. The allowance for credit losses was 1.01% of total loans, as compared to 0.95% at the prior quarter end.
-
Expenses higher due to employee compensation and continued investment spend to enhance regulatory and compliance infrastructure.
-
Noninterest expense increased 6.7% to
$30.2 million relative to the prior quarter, primarily reflecting an increase in employee benefits and continued elevated professional fees and other operating costs to enhance risk management and compliance-related infrastructure in response to changing regulatory requirements following the industry events ofMarch 2023 .
-
Noninterest expense increased 6.7% to
INCOME STATEMENT
Net interest income on a tax-equivalent basis totaled
Interest income increased
Interest expense increased
On a tax-equivalent basis, net interest margin for the first quarter of 2024 was 3.83%, a decline of 23 basis points versus the fourth quarter of 2023 and 57 basis points versus the first quarter of 2023. See the table below for a reconciliation between net interest margin and net interest margin on a fully tax-equivalent basis, a non-GAAP measure. Contraction in net interest margin from the prior quarter primarily reflects an unfavorable shift in the mix of average earning assets, including lower loan balances, higher cash and investment securities balances with lower yields and higher funding costs driven by the volume of deposits and higher interest rates on deposits associated with a BaaS relationship. Relative to the year-ago period, the contraction in net interest margin reflects higher funding costs, which have significantly outpaced the increase in average earning asset yields.
Noninterest income totaled
Noninterest expense totaled
BALANCE SHEET
Loans totaled
Deposits totaled
NIB deposits totaled
CAPITAL
The Community Bank Leverage Ratio was 10.1% as of
The tangible common equity ratio, a non-GAAP financial measure, was 8.1% as of
The Company issued a quarterly cash dividend of
ASSET QUALITY
Nonperforming loans totaled
Net charge-offs were
The provision for credit losses totaled
About
MVB is a financial holding company headquartered in
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
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
Non-
This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in
Financial Highlights Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data) |
|||||||||||
|
|
Quarterly |
|||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
2023 |
|
|
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
|||||
Interest income |
|
$ |
50,030 |
|
|
$ |
49,699 |
|
|
$ |
44,763 |
Interest expense |
|
|
19,891 |
|
|
|
18,592 |
|
|
|
12,034 |
Net interest income |
|
|
30,139 |
|
|
|
31,107 |
|
|
|
32,729 |
Provision (release of allowance) for credit losses |
|
|
1,997 |
|
|
|
(2,103 |
) |
|
|
4,576 |
Net interest income after provision (release of allowance) for credit losses |
|
|
28,142 |
|
|
|
33,210 |
|
|
|
28,153 |
|
|
|
|
|
|
|
|||||
Total noninterest income |
|
|
7,834 |
|
|
|
4,438 |
|
|
|
3,067 |
|
|
|
|
|
|
|
|||||
Noninterest expense: |
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
|
16,489 |
|
|
|
14,863 |
|
|
|
16,746 |
Other expense |
|
|
13,702 |
|
|
|
13,438 |
|
|
|
11,571 |
Total noninterest expenses |
|
|
30,191 |
|
|
|
28,301 |
|
|
|
28,317 |
|
|
|
|
|
|
|
|||||
Income before income taxes |
|
|
5,785 |
|
|
|
9,347 |
|
|
|
2,903 |
Income taxes |
|
|
1,283 |
|
|
|
1,431 |
|
|
|
465 |
Net income from continuing operations, before noncontrolling interest |
|
|
4,502 |
|
|
|
7,916 |
|
|
|
2,438 |
Income from discontinued operations, before income taxes |
|
|
— |
|
|
|
— |
|
|
|
11,831 |
Income taxes - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
3,049 |
Net income from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
8,782 |
Net Income, before noncontrolling interest |
|
|
4,502 |
|
|
|
7,916 |
|
|
|
11,220 |
Net (income) loss attributable to noncontrolling interest |
|
|
(20 |
) |
|
|
(5 |
) |
|
|
122 |
Net income available to common shareholders |
|
$ |
4,482 |
|
|
$ |
7,911 |
|
|
$ |
11,342 |
|
|
|
|
|
|
|
|||||
Earnings per share from continuing operations - basic |
|
$ |
0.35 |
|
|
$ |
0.62 |
|
|
$ |
0.20 |
Earnings per share from discontinued operations - basic |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.70 |
Earnings per share - basic |
|
$ |
0.35 |
|
|
$ |
0.62 |
|
|
$ |
0.90 |
Earnings per share from continuing operations - diluted |
|
$ |
0.34 |
|
|
$ |
0.61 |
|
|
$ |
0.20 |
Earnings per share from discontinued operations - diluted |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.67 |
Earnings per share - diluted |
|
$ |
0.34 |
|
|
$ |
0.61 |
|
|
$ |
0.87 |
Noninterest Income (Unaudited) (Dollars in thousands) |
||||||||||||
|
|
Quarterly |
||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
||||||
Card acquiring income |
|
$ |
251 |
|
|
$ |
1,348 |
|
|
$ |
622 |
|
Service charges on deposits |
|
|
1,523 |
|
|
|
174 |
|
|
|
1,126 |
|
Interchange income |
|
|
3,039 |
|
|
|
2,289 |
|
|
|
1,862 |
|
Total payment card and service charge income |
|
|
4,813 |
|
|
|
3,811 |
|
|
|
3,610 |
|
|
|
|
|
|
|
|
||||||
Equity method investments loss |
|
|
(1,128 |
) |
|
|
(2,429 |
) |
|
|
(1,193 |
) |
Compliance and consulting income |
|
|
1,000 |
|
|
|
986 |
|
|
|
1,016 |
|
Gain (loss) on sale of loans |
|
|
— |
|
|
|
271 |
|
|
|
(356 |
) |
Investment portfolio gains (losses) |
|
|
609 |
|
|
|
75 |
|
|
|
(1,844 |
) |
Other noninterest income |
|
|
2,540 |
|
|
|
1,724 |
|
|
|
1,834 |
|
|
|
|
|
|
|
|
||||||
Total noninterest income |
|
$ |
7,834 |
|
|
$ |
4,438 |
|
|
$ |
3,067 |
|
Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) |
||||||||||||
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
640,426 |
|
|
$ |
398,229 |
|
|
$ |
575,265 |
|
Securities available-for-sale, at fair value |
|
|
349,678 |
|
|
|
345,275 |
|
|
|
339,578 |
|
Equity securities |
|
|
41,037 |
|
|
|
41,086 |
|
|
|
38,576 |
|
Loans held-for-sale |
|
|
— |
|
|
|
629 |
|
|
|
19,893 |
|
Loans receivable |
|
|
2,267,310 |
|
|
|
2,317,594 |
|
|
|
2,361,153 |
|
Less: Allowance for credit losses |
|
|
(22,804 |
) |
|
|
(22,124 |
) |
|
|
(35,513 |
) |
Loans receivable, net |
|
|
2,244,506 |
|
|
|
2,295,470 |
|
|
|
2,325,640 |
|
Premises and equipment, net |
|
|
19,968 |
|
|
|
20,928 |
|
|
|
22,869 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other assets |
|
|
251,775 |
|
|
|
212,265 |
|
|
|
230,055 |
|
Total assets |
|
$ |
3,547,390 |
|
|
$ |
3,313,882 |
|
|
$ |
3,551,876 |
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing deposits |
|
$ |
1,391,070 |
|
|
$ |
1,197,272 |
|
|
$ |
1,134,257 |
|
Interest-bearing deposits |
|
|
1,754,259 |
|
|
|
1,704,204 |
|
|
|
2,016,558 |
|
Senior term loan |
|
|
6,549 |
|
|
|
6,786 |
|
|
|
9,647 |
|
Subordinated debt |
|
|
73,602 |
|
|
|
73,540 |
|
|
|
73,350 |
|
Other liabilities |
|
|
30,082 |
|
|
|
42,738 |
|
|
|
46,748 |
|
Stockholders' equity |
|
|
291,828 |
|
|
|
289,342 |
|
|
|
271,316 |
|
Total liabilities and stockholders' equity |
|
$ |
3,547,390 |
|
|
$ |
3,313,882 |
|
|
$ |
3,551,876 |
|
Reportable Segments (Unaudited) |
|||||||||||||||||||||||
Three Months Ended |
|
CoRe
|
|
Mortgage
|
|
Financial
|
|
Other |
|
Intercompany
|
|
Consolidated |
|||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|||||||||||||||||
Interest income |
|
$ |
49,942 |
|
$ |
103 |
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
(17 |
) |
|
$ |
50,030 |
|
Interest expense |
|
|
18,927 |
|
|
— |
|
|
|
959 |
|
|
|
22 |
|
|
|
(17 |
) |
|
|
19,891 |
|
Net interest income (expense) |
|
|
31,015 |
|
|
103 |
|
|
|
(957 |
) |
|
|
(22 |
) |
|
|
— |
|
|
|
30,139 |
|
Provision for credit losses |
|
|
1,997 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,997 |
|
Net interest income (expense) after provision for credit losses |
|
|
29,018 |
|
|
103 |
|
|
|
(957 |
) |
|
|
(22 |
) |
|
|
— |
|
|
|
28,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest income |
|
|
7,521 |
|
|
(1,129 |
) |
|
|
2,265 |
|
|
|
3,264 |
|
|
|
(4,087 |
) |
|
|
7,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries and employee benefits |
|
|
9,823 |
|
|
— |
|
|
|
4,678 |
|
|
|
1,988 |
|
|
|
— |
|
|
|
16,489 |
|
Other expenses |
|
|
13,821 |
|
|
— |
|
|
|
1,841 |
|
|
|
2,127 |
|
|
|
(4,087 |
) |
|
|
13,702 |
|
Total noninterest expenses |
|
|
23,644 |
|
|
— |
|
|
|
6,519 |
|
|
|
4,115 |
|
|
|
(4,087 |
) |
|
|
30,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss), before income taxes |
|
|
12,895 |
|
|
(1,026 |
) |
|
|
(5,211 |
) |
|
|
(873 |
) |
|
|
— |
|
|
|
5,785 |
|
Income taxes |
|
|
2,878 |
|
|
(229 |
) |
|
|
(1,157 |
) |
|
|
(209 |
) |
|
|
— |
|
|
|
1,283 |
|
Net income (loss), before noncontrolling interest |
|
|
10,017 |
|
|
(797 |
) |
|
|
(4,054 |
) |
|
|
(664 |
) |
|
|
— |
|
|
|
4,502 |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(20 |
) |
|
|
— |
|
|
|
(20 |
) |
Net income (loss) available to common shareholders |
|
$ |
10,017 |
|
$ |
(797 |
) |
|
$ |
(4,054 |
) |
|
$ |
(684 |
) |
|
$ |
— |
|
|
$ |
4,482 |
|
Three Months Ended |
|
CoRe
|
|
Mortgage
|
|
Financial
|
|
Other |
|
Intercompany
|
|
Consolidated |
||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
||||||||||||||||||
Interest income |
|
$ |
49,639 |
|
|
$ |
103 |
|
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
(46 |
) |
|
$ |
49,699 |
|
Interest expense |
|
|
17,573 |
|
|
|
— |
|
|
|
993 |
|
|
|
72 |
|
|
|
(46 |
) |
|
|
18,592 |
|
Net interest income (expense) |
|
|
32,066 |
|
|
|
103 |
|
|
|
(990 |
) |
|
|
(72 |
) |
|
|
— |
|
|
|
31,107 |
|
Provision for credit losses |
|
|
(2,103 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,103 |
) |
Net interest income (expense) after provision for credit losses |
|
|
34,169 |
|
|
|
103 |
|
|
|
(990 |
) |
|
|
(72 |
) |
|
|
— |
|
|
|
33,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noninterest income |
|
|
5,175 |
|
|
|
(2,430 |
) |
|
|
2,351 |
|
|
|
3,204 |
|
|
|
(3,862 |
) |
|
|
4,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noninterest Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries and employee benefits |
|
|
9,374 |
|
|
|
— |
|
|
|
3,339 |
|
|
|
2,150 |
|
|
|
— |
|
|
|
14,863 |
|
Other expenses |
|
|
13,318 |
|
|
|
— |
|
|
|
2,161 |
|
|
|
1,821 |
|
|
|
(3,862 |
) |
|
|
13,438 |
|
Total noninterest expenses |
|
|
22,692 |
|
|
|
— |
|
|
|
5,500 |
|
|
|
3,971 |
|
|
|
(3,862 |
) |
|
|
28,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes |
|
|
16,652 |
|
|
|
(2,327 |
) |
|
|
(4,139 |
) |
|
|
(839 |
) |
|
|
— |
|
|
|
9,347 |
|
Income taxes |
|
|
3,962 |
|
|
|
(543 |
) |
|
|
(1,796 |
) |
|
|
(192 |
) |
|
|
— |
|
|
|
1,431 |
|
Net income (loss), before noncontrolling interest |
|
|
12,690 |
|
|
|
(1,784 |
) |
|
|
(2,343 |
) |
|
|
(647 |
) |
|
|
— |
|
|
|
7,916 |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
(5 |
) |
Net income (loss) available to common shareholders |
|
$ |
12,690 |
|
|
$ |
(1,784 |
) |
|
$ |
(2,343 |
) |
|
$ |
(652 |
) |
|
$ |
— |
|
|
$ |
7,911 |
|
Three Months Ended |
|
CoRe
|
|
Mortgage
|
|
Financial
|
|
Other |
|
Intercompany
|
|
Consolidated |
||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
||||||||||||||||
Interest income |
|
$ |
44,662 |
|
$ |
105 |
|
|
$ |
33 |
|
|
$ |
(6 |
) |
|
$ |
(31 |
) |
|
$ |
44,763 |
Interest expense |
|
|
11,041 |
|
|
— |
|
|
|
993 |
|
|
|
31 |
|
|
|
(31 |
) |
|
|
12,034 |
Net interest income (expense) |
|
|
33,621 |
|
|
105 |
|
|
|
(960 |
) |
|
|
(37 |
) |
|
|
— |
|
|
|
32,729 |
Provision for credit losses |
|
|
4,576 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,576 |
Net interest income (expense) after provision for credit losses |
|
|
29,045 |
|
|
105 |
|
|
|
(960 |
) |
|
|
(37 |
) |
|
|
— |
|
|
|
28,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest income |
|
|
3,018 |
|
|
(1,186 |
) |
|
|
2,410 |
|
|
|
1,784 |
|
|
|
(2,959 |
) |
|
|
3,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits |
|
|
9,051 |
|
|
— |
|
|
|
4,950 |
|
|
|
2,745 |
|
|
|
— |
|
|
|
16,746 |
Other expenses |
|
|
11,054 |
|
|
34 |
|
|
|
1,917 |
|
|
|
1,525 |
|
|
|
(2,959 |
) |
|
|
11,571 |
Total noninterest expenses |
|
|
20,105 |
|
|
34 |
|
|
|
6,867 |
|
|
|
4,270 |
|
|
|
(2,959 |
) |
|
|
28,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss), before income taxes |
|
|
11,958 |
|
|
(1,115 |
) |
|
|
(5,417 |
) |
|
|
(2,523 |
) |
|
|
— |
|
|
|
2,903 |
Income taxes |
|
|
2,515 |
|
|
(504 |
) |
|
|
(942 |
) |
|
|
(604 |
) |
|
|
— |
|
|
|
465 |
Net income (loss) from continuing operations |
|
|
9,443 |
|
|
(611 |
) |
|
|
(4,475 |
) |
|
|
(1,919 |
) |
|
|
— |
|
|
|
2,438 |
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), before noncontrolling interest |
|
|
9,443 |
|
|
(611 |
) |
|
|
(4,475 |
) |
|
|
6,863 |
|
|
|
— |
|
|
|
11,220 |
Net loss attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
122 |
|
|
|
— |
|
|
|
122 |
Net income (loss) available to common shareholders |
|
$ |
9,443 |
|
$ |
(611 |
) |
|
$ |
(4,475 |
) |
|
$ |
6,985 |
|
|
$ |
— |
|
|
$ |
11,342 |
Average Balances and Interest Rates (Unaudited) (Dollars in thousands) |
|||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
|||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing balances with banks |
|
$ |
549,894 |
|
|
$ |
7,341 |
|
|
5.37 |
% |
|
$ |
442,521 |
|
|
$ |
5,944 |
|
|
5.33 |
% |
|
$ |
285,102 |
|
|
$ |
3153 |
|
|
4.49 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable |
|
|
246,091 |
|
|
|
1,743 |
|
|
2.85 |
|
|
|
222,303 |
|
|
|
1,444 |
|
|
2.58 |
|
|
|
236,574 |
|
|
|
1,848 |
|
|
3.17 |
|
Tax-exempt 1 |
|
|
106,309 |
|
|
|
887 |
|
|
3.36 |
|
|
|
98,464 |
|
|
|
876 |
|
|
3.53 |
|
|
|
137,799 |
|
|
|
1,308 |
|
|
3.85 |
|
Loans and loans held-for-sale: 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial |
|
|
1,626,286 |
|
|
|
32,152 |
|
|
7.95 |
|
|
|
1,635,510 |
|
|
|
33,665 |
|
|
8.17 |
|
|
|
1,620,509 |
|
|
|
28,538 |
|
|
7.14 |
|
Tax-exempt 1 |
|
|
3,373 |
|
|
|
37 |
|
|
4.41 |
|
|
|
3,492 |
|
|
|
38 |
|
|
4.32 |
|
|
|
3,944 |
|
|
|
43 |
|
|
4.42 |
|
Real estate |
|
|
576,148 |
|
|
|
6,612 |
|
|
4.62 |
|
|
|
576,580 |
|
|
|
6,421 |
|
|
4.42 |
|
|
|
621,388 |
|
|
|
6,295 |
|
|
4.11 |
|
Consumer |
|
|
77,300 |
|
|
|
1,452 |
|
|
7.55 |
|
|
|
76,088 |
|
|
|
1,503 |
|
|
7.84 |
|
|
|
137,547 |
|
|
|
3,862 |
|
|
11.39 |
|
Total loans |
|
|
2,283,107 |
|
|
|
40,253 |
|
|
7.09 |
|
|
|
2,291,670 |
|
|
|
41,627 |
|
|
7.21 |
|
|
|
2,383,388 |
|
|
|
38,738 |
|
|
6.59 |
|
Total earning assets |
|
|
3,185,401 |
|
|
|
50,224 |
|
|
6.34 |
|
|
|
3,054,958 |
|
|
|
49,891 |
|
|
6.48 |
|
|
|
3,042,863 |
|
|
|
45,047 |
|
|
6.00 |
|
Less: Allowance for credit losses |
|
|
(22,258 |
) |
|
|
|
|
|
|
(24,079 |
) |
|
|
|
|
|
|
(30,135 |
) |
|
|
|
|
|||||||||
Cash and due from banks |
|
|
5,405 |
|
|
|
|
|
|
|
5,771 |
|
|
|
|
|
|
|
243 |
|
|
|
|
|
|||||||||
Other assets |
|
|
335,029 |
|
|
|
|
|
|
|
292,574 |
|
|
|
|
|
|
|
339,676 |
|
|
|
|
|
|||||||||
Total assets |
|
$ |
3,503,577 |
|
|
|
|
|
|
$ |
3,329,224 |
|
|
|
|
|
|
$ |
3,352,647 |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NOW |
|
$ |
555,530 |
|
|
$ |
4,929 |
|
|
3.57 |
% |
|
$ |
637,144 |
|
|
$ |
5,386 |
|
|
3.35 |
% |
|
$ |
796,901 |
|
|
$ |
4,661 |
|
|
2.37 |
% |
Money market checking |
|
|
408,764 |
|
|
|
3,759 |
|
|
3.70 |
|
|
|
650,925 |
|
|
|
3,691 |
|
|
2.25 |
|
|
|
209,227 |
|
|
|
928 |
|
|
1.80 |
|
Savings |
|
|
163,611 |
|
|
|
1,640 |
|
|
4.03 |
|
|
|
70,146 |
|
|
|
442 |
|
|
2.50 |
|
|
|
93,297 |
|
|
|
641 |
|
|
2.79 |
|
IRAs |
|
|
7,762 |
|
|
|
74 |
|
|
3.83 |
|
|
|
7,296 |
|
|
|
66 |
|
|
3.59 |
|
|
|
6,151 |
|
|
|
27 |
|
|
1.78 |
|
CDs |
|
|
674,611 |
|
|
|
8,529 |
|
|
5.08 |
|
|
|
590,517 |
|
|
|
8,014 |
|
|
5.38 |
|
|
|
386,144 |
|
|
|
3,896 |
|
|
4.09 |
|
Repurchase agreements and federal funds sold |
|
|
2,951 |
|
|
|
— |
|
|
— |
|
|
|
4,736 |
|
|
|
— |
|
|
— |
|
|
|
7,612 |
|
|
|
1 |
|
|
0.05 |
|
FHLB and other borrowings |
|
|
44 |
|
|
|
1 |
|
|
9.14 |
|
|
|
11 |
|
|
|
— |
|
|
— |
|
|
|
71,166 |
|
|
|
888 |
|
|
5.06 |
|
Senior term loan |
|
|
6,736 |
|
|
|
150 |
|
|
8.96 |
|
|
|
8,183 |
|
|
|
183 |
|
|
8.87 |
|
|
|
9,765 |
|
|
|
194 |
|
|
8.06 |
|
Subordinated debt |
|
|
73,571 |
|
|
|
809 |
|
|
4.42 |
|
|
|
73,510 |
|
|
|
810 |
|
|
4.37 |
|
|
|
73,318 |
|
|
|
798 |
|
|
4.41 |
|
Total interest-bearing liabilities |
|
|
1,893,580 |
|
|
|
19,891 |
|
|
4.22 |
|
|
|
2,042,468 |
|
|
|
18,592 |
|
|
3.61 |
|
|
|
1,653,581 |
|
|
|
12,034 |
|
|
2.95 |
|
Noninterest-bearing demand deposits |
|
|
1,279,194 |
|
|
|
|
|
|
|
975,122 |
|
|
|
|
|
|
|
1,380,516 |
|
|
|
|
|
|||||||||
Other liabilities |
|
|
42,017 |
|
|
|
|
|
|
|
39,410 |
|
|
|
|
|
|
|
37,087 |
|
|
|
|
|
|||||||||
Total liabilities |
|
|
3,214,791 |
|
|
|
|
|
|
|
3,057,000 |
|
|
|
|
|
|
|
3,071,184 |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common stock |
|
|
13,659 |
|
|
|
|
|
|
|
13,588 |
|
|
|
|
|
|
|
13,471 |
|
|
|
|
|
|||||||||
Paid-in capital |
|
|
161,532 |
|
|
|
|
|
|
|
160,106 |
|
|
|
|
|
|
|
153,389 |
|
|
|
|
|
|||||||||
|
|
|
(16,741 |
) |
|
|
|
|
|
|
(16,741 |
) |
|
|
|
|
|
|
(16,741 |
) |
|
|
|
|
|||||||||
Retained earnings |
|
|
160,933 |
|
|
|
|
|
|
|
156,004 |
|
|
|
|
|
|
|
166,426 |
|
|
|
|
|
|||||||||
Accumulated other comprehensive loss |
|
|
(30,559 |
) |
|
|
|
|
|
|
(40,688 |
) |
|
|
|
|
|
|
(35,345 |
) |
|
|
|
|
|||||||||
Total stockholders’ equity attributable to parent |
|
|
288,824 |
|
|
|
|
|
|
|
272,269 |
|
|
|
|
|
|
|
281,200 |
|
|
|
|
|
|||||||||
Noncontrolling interest |
|
|
(38 |
) |
|
|
|
|
|
|
(45 |
) |
|
|
|
|
|
|
263 |
|
|
|
|
|
|||||||||
Total stockholders’ equity |
|
|
288,786 |
|
|
|
|
|
|
|
272,224 |
|
|
|
|
|
|
|
281,463 |
|
|
|
|
|
|||||||||
Total liabilities and stockholders’ equity |
|
$ |
3,503,577 |
|
|
|
|
$ |
3,329,224 |
|
|
|
|
|
|
$ |
3,352,647 |
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest spread (tax-equivalent) |
|
|
|
|
|
2.12 |
% |
|
|
|
|
|
2.87 |
% |
|
|
|
|
|
3.05 |
% |
||||||||||||
Net interest income and margin (tax-equivalent)1 |
|
|
|
$ |
30,333 |
|
|
3.83 |
% |
|
|
|
$ |
31,299 |
|
|
4.06 |
% |
|
|
|
$ |
33,013 |
|
|
4.40 |
% |
||||||
Less: Tax-equivalent adjustments |
|
|
|
$ |
(194 |
) |
|
|
|
|
|
$ |
(193 |
) |
|
|
|
|
|
$ |
(284 |
) |
|
|
|||||||||
Net interest spread |
|
|
|
|
|
2.10 |
% |
|
|
|
|
|
2.84 |
% |
|
|
|
|
|
3.02 |
% |
||||||||||||
Net interest income and margin |
|
|
|
$ |
30,139 |
|
|
3.81 |
% |
|
|
|
$ |
31,107 |
|
|
4.04 |
% |
|
|
|
$ |
32,729 |
|
|
4.36 |
% |
||||||
1In 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 17. 2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate. |
Selected Financial Data (Unaudited) (Dollars in thousands, except per share data) |
||||||||||||
|
|
Quarterly |
||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
||||||
Earnings and Per Share Data: |
|
|
|
|
|
|
||||||
Net income |
|
$ |
4,482 |
|
|
$ |
7,911 |
|
|
$ |
11,342 |
|
Earnings per share from continuing operations - basic |
|
$ |
0.35 |
|
|
$ |
0.62 |
|
|
$ |
0.20 |
|
Earnings per share from discontinued operations - basic |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.70 |
|
Earnings per share - basic |
|
$ |
0.35 |
|
|
$ |
0.62 |
|
|
$ |
0.90 |
|
Earnings per share from continuing operations - diluted |
|
$ |
0.34 |
|
|
$ |
0.61 |
|
|
$ |
0.20 |
|
Earnings per share from discontinued operations - diluted |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.67 |
|
Earnings per share - diluted |
|
$ |
0.34 |
|
|
$ |
0.61 |
|
|
$ |
0.87 |
|
Cash dividends paid per common share |
|
$ |
0.17 |
|
|
$ |
0.17 |
|
|
$ |
0.17 |
|
Book value per common share |
|
$ |
22.73 |
|
|
$ |
22.68 |
|
|
$ |
21.43 |
|
Tangible book value per common share 1 |
|
$ |
22.48 |
|
|
$ |
22.43 |
|
|
$ |
21.17 |
|
Weighted-average shares outstanding - basic |
|
|
12,810,956 |
|
|
|
12,740,193 |
|
|
|
12,623,361 |
|
Weighted-average shares outstanding - diluted |
|
|
13,119,292 |
|
|
|
13,024,562 |
|
|
|
13,016,082 |
|
|
|
|
|
|
|
|
||||||
Performance Ratios: |
|
|
|
|
|
|
||||||
Return on average assets 2 |
|
|
0.5 |
% |
|
|
1.0 |
% |
|
|
1.4 |
% |
Return on average equity 2 |
|
|
6.2 |
% |
|
|
11.6 |
% |
|
|
16.1 |
% |
Net interest margin 3 4 |
|
|
3.83 |
% |
|
|
4.06 |
% |
|
|
4.40 |
% |
Efficiency ratio 5 |
|
|
79.5 |
% |
|
|
79.6 |
% |
|
|
61.4 |
% |
Overhead ratio 2 6 |
|
|
3.4 |
% |
|
|
3.4 |
% |
|
|
3.4 |
% |
Equity to assets |
|
|
8.2 |
% |
|
|
8.7 |
% |
|
|
7.6 |
% |
|
|
|
|
|
|
|
||||||
Asset Quality Data and Ratios: |
|
|
|
|
|
|
||||||
Charge-offs |
|
$ |
2,150 |
|
|
$ |
1,868 |
|
|
$ |
4,847 |
|
Recoveries |
|
$ |
835 |
|
|
$ |
1,343 |
|
|
$ |
3,169 |
|
Net loan charge-offs to total loans 2 7 |
|
|
0.2 |
% |
|
|
0.1 |
% |
|
|
0.3 |
% |
Allowance for credit losses |
|
$ |
22,804 |
|
|
$ |
22,124 |
|
|
$ |
35,513 |
|
Allowance for credit losses to total loans 8 |
|
|
1.01 |
% |
|
|
0.95 |
% |
|
|
1.50 |
% |
Nonperforming loans |
|
$ |
7,546 |
|
|
$ |
8,267 |
|
|
$ |
13,085 |
|
Nonperforming loans to total loans |
|
|
0.3 |
% |
|
|
0.4 |
% |
|
|
0.6 |
% |
|
|
|
|
|
|
|
||||||
Mortgage Company Equity Method Investees Production Data9: |
|
|
|
|
|
|
||||||
Mortgage pipeline |
|
$ |
790,771 |
|
|
$ |
706,873 |
|
|
$ |
714,258 |
|
Loans originated |
|
$ |
1,050,089 |
|
|
$ |
1,020,128 |
|
|
$ |
232,660 |
|
Loans closed |
|
$ |
653,306 |
|
|
$ |
724,453 |
|
|
$ |
385,011 |
|
Loans sold |
|
$ |
916,115 |
|
|
$ |
639,788 |
|
|
$ |
302,782 |
|
1 Common equity less total goodwill and intangibles per common share, a non- 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-
6 Noninterest expense as a percentage of average assets, a non- 7 Charge-offs, less recoveries. 8 Excludes loans held-for-sale.
9 Information is related to |
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 |
||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
||||||
Net interest margin - |
|
|
|
|
|
|
||||||
Net interest income |
|
$ |
30,139 |
|
|
$ |
31,107 |
|
|
$ |
32,729 |
|
Average interest-earning assets |
|
$ |
3,185,401 |
|
|
$ |
3,054,958 |
|
|
$ |
3,042,863 |
|
Net interest margin |
|
|
3.81 |
% |
|
|
4.04 |
% |
|
|
4.36 |
% |
|
|
|
|
|
|
|
||||||
Net interest margin - non- |
|
|
|
|
|
|
||||||
Net interest income |
|
$ |
30,139 |
|
|
$ |
31,107 |
|
|
$ |
32,729 |
|
Impact of fully tax-equivalent adjustment |
|
|
194 |
|
|
|
193 |
|
|
|
284 |
|
Net interest income on a fully tax-equivalent basis |
|
$ |
30,333 |
|
|
$ |
31,299 |
|
|
$ |
33,013 |
|
Average interest-earning assets |
|
$ |
3,185,401 |
|
|
$ |
3,054,958 |
|
|
$ |
3,042,863 |
|
Net interest margin on a fully tax-equivalent basis |
|
|
3.83 |
% |
|
|
4.06 |
% |
|
|
4.40 |
% |
Non- (Unaudited) (Dollars in thousands, except per share data) |
||||||||||||
|
|
|
|
|
|
|
||||||
Tangible Book Value per Common Share |
|
|
|
|
|
|
||||||
|
|
$ |
2,838 |
|
|
$ |
2,838 |
|
|
$ |
2,838 |
|
Intangibles |
|
|
330 |
|
|
|
352 |
|
|
|
420 |
|
Total intangibles |
|
$ |
3,168 |
|
|
|
3,190 |
|
|
|
3,258 |
|
|
|
|
|
|
|
|
||||||
Total equity attributable to parent |
|
$ |
291,850 |
|
|
|
289,384 |
|
|
|
271,131 |
|
Less: Total intangibles |
|
|
(3,168 |
) |
|
|
(3,190 |
) |
|
|
(3,258 |
) |
Tangible common equity |
|
$ |
288,682 |
|
|
$ |
286,194 |
|
|
$ |
267,873 |
|
|
|
|
|
|
|
|
||||||
Tangible common equity |
|
$ |
288,682 |
|
|
$ |
286,194 |
|
|
$ |
267,873 |
|
Common shares outstanding (000s) |
|
|
12,841 |
|
|
|
12,758 |
|
|
|
12,653 |
|
Tangible book value per common share |
|
$ |
22.48 |
|
|
$ |
22.43 |
|
|
$ |
21.17 |
|
|
|
|
|
|
|
|
||||||
Tangible Common Equity Ratio |
|
|
|
|
|
|
||||||
Total assets |
|
$ |
3,547,390 |
|
|
$ |
3,313,882 |
|
|
$ |
3,551,876 |
|
Less: Total intangibles |
|
|
(3,168 |
) |
|
|
(3,190 |
) |
|
|
(3,258 |
) |
Tangible assets |
|
$ |
3,544,222 |
|
|
$ |
3,310,692 |
|
|
$ |
3,548,618 |
|
|
|
|
|
|
|
|
||||||
Tangible assets |
|
$ |
3,544,222 |
|
|
$ |
3,310,692 |
|
|
$ |
3,548,618 |
|
Tangible common equity |
|
$ |
288,682 |
|
|
$ |
286,194 |
|
|
$ |
267,873 |
|
Tangible common equity ratio |
|
|
8.1 |
% |
|
|
8.6 |
% |
|
|
7.5 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240429858018/en/
Questions or comments concerning this earnings release should be directed to:
(304) 598-3500
drobinson@mvbbanking.com
(844) 682-2265
abaker@mvbbanking.com
Source: